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SUNNYVALE, Calif. - Synopsys Inc . (NASDAQ:SNPS), a $78.79 billion market cap technology leader with impressive gross profit margins of 81.44%, announced the launch of its advanced HAPS-200 prototyping and ZeBu-200 emulation systems, which promise to deliver the industry’s fastest performance for hardware-assisted verification (HAV). According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating, supported by robust liquidity metrics. These systems are designed to help manage the increasing complexity of system-on-chip (SoC) and multi-die designs, which are now reaching over 60 billion gates.
The HAPS-200 prototyping system boasts a runtime performance that leads the industry and offers a compilation speed that is faster than its predecessor, the HAPS-100, with a fourfold improvement in debug performance. It supports configurations ranging from a single FPGA to multi-rack setups with a capacity of up to 10.8 billion gates.
Similarly, the ZeBu-200 emulation system extends its design capacity to up to 15.4 billion gates and provides up to twice the runtime performance compared to the previous ZeBu EP2 model. This increase in performance is accompanied by a faster compile time and enhanced development productivity, including an eightfold increase in debug bandwidth.
These systems are built on the new Synopsys Emulation and Prototyping (EP-Ready) Hardware platform, which allows for flexible reconfiguration between emulation and prototyping use cases on a single platform, optimizing return on investment for customers. The EP-Ready Hardware platform is designed to support a wide range of interface protocols and connectivity options. With revenue growth of 15.22% in the last twelve months, Synopsys continues to demonstrate strong market momentum. InvestingPro subscribers can access a comprehensive analysis of Synopsys’s growth trajectory and 15+ additional ProTips in the exclusive Pro Research Report.
Industry leaders such as AMD (NASDAQ:AMD), NVIDIA (NASDAQ:NVDA), and Arm have expressed support for Synopsys’ expanded HAV portfolio. NVIDIA has already seen productivity gains in software development through the use of the HAPS-200 system, and AMD has praised the integration of its Versal Premium VP1902 adaptive SoC into Synopsys’ EP-Ready platforms. Arm also acknowledges the benefits of the new hardware platforms in integrating Arm Compute Subsystems into complex designs.
The Synopsys HAPS-200 prototyping system is currently available, while the ZeBu-200 emulation system is available for early access customers. These launches mark a significant step for Synopsys in addressing the verification challenges of increasingly complex semiconductor designs. Investors should note that Synopsys will report its next earnings on February 26, 2025, providing an opportunity to assess the impact of these new products on the company’s performance. For detailed financial analysis and valuation metrics, explore the complete Synopsys profile on InvestingPro.
This article is based on a press release statement.
In other recent news, Synopsys has made notable strides in its acquisition of Ansys (NASDAQ:ANSS), a deal valued at approximately $32 billion. The acquisition has secured phase 1 approvals from both the UK Competition and Markets Authority (CMA) and the European Commission (EC), as noted by Piper Sandler analyst Clarke Jeffries, who maintained an Overweight rating on Synopsys. The merger, expected to significantly expand Synopsys’s market presence and financial strength, could potentially lead to the combined entity reaching a market capitalization exceeding $120 billion, with over $10 billion in annualized revenue and more than $3 billion in annualized free cash flow.
The CMA has provisionally accepted Synopsys’ proposed remedies concerning the acquisition of Ansys, marking a significant step towards finalizing the deal. The merger is anticipated to drive innovation across various industries, responding to the growing demand for integrated system design solutions. However, the acquisition is still subject to further regulatory approvals and customary closing conditions.
Redburn-Atlantic has initiated coverage on Synopsys shares with a Buy rating, citing several factors identified as tailwinds for the Electronic Design Automation (EDA) market. The firm anticipates that Synopsys will benefit from the increasing complexity and rising costs associated with developing cutting-edge solutions. Furthermore, the expansion of the total addressable market and the potential for Artificial Intelligence solution monetization are highlighted as growth areas for the company.
Finally, Synopsys is expected to receive approval from EU antitrust regulators for its acquisition of Ansys, following its commitment to offload two assets to alleviate EU competition worries. These developments indicate Synopsys’s commitment to enhancing its position in the engineering software market.
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