Synopsys (SNPS)

Risks

• The COVID-19 pandemic could have a material adverse effect on our business, operations and financial condition.
• Uncertainty in the global economy, and its potential impact on the semiconductor and electronics industries in particular, may negatively affect our business, operating results and financial condition.
• The growth of our business depends primarily on the semiconductor and electronics industries.
• We operate in highly competitive industries, and if we do not continue to meet our customers’ demand for innovative technology at lower costs, our products may not be competitive or may become obsolete, and our business and financial condition may be harmed.
• Consolidation among our customers and within the industries in which we operate, as well as our dependence on a relatively small number of large customers, may negatively impact our operating results.
• The global nature of our operations exposes us to increased risks and compliance obligations that may adversely affect our business.
• Our operating results may fluctuate in the future, which may adversely affect our stock price.
• Cybersecurity threats or other security breaches could compromise sensitive information belonging to us or our customers and could harm our business and our reputation, particularly that of our security testing solutions.
• If we fail to protect our proprietary technology, our business will be harmed.
• We may not be able to realize the potential financial or strategic benefits of the acquisitions we complete, or find suitable target businesses and technology to acquire, which could hurt our ability to grow our business, develop new products or sell our products.
• We pursue new product and technology initiatives from time to time, and if we fail to successfully carry out these initiatives, our business, financial condition, or results of operations could be adversely impacted.
• We may have to invest more resources in research and development than anticipated, which could increase our operating expenses and negatively affect our operating results.
• Product errors or defects could expose us to liability and harm our reputation and we could lose market share.
• Our hardware products, which primarily consist of prototyping and emulation systems, subject us to distinct risks.
• If we fail to timely recruit and retain senior management and key employees globally, our business may be harmed.
• From time to time we are subject to claims that our products infringe on third-party intellectual property rights.
• We may not be able to continue to obtain licenses to third-party software and intellectual property on reasonable terms or at all, which may disrupt our business and harm our financial results.
• In preparing our financial statements we make certain assumptions, judgments and estimates that affect amounts reported in our consolidated financial statements, which, if not accurate, may significantly impact our financial results.
• Liquidity requirements in our U.S. operations may require us to raise cash in uncertain capital markets, which could negatively affect our financial condition.
• Our results could be adversely affected by a change in our effective tax rate as a result of tax law changes and related new or revised guidance and regulations, changes in our geographical earnings mix, unfavorable government reviews of our tax returns, material differences between our forecasted and actual annual effective tax rates, future changes to our tax structure, or by evolving enforcement practices.
• Changes in United States Generally Accepted Accounting Principles (U.S. GAAP) could adversely affect our financial results and may require significant changes to our internal accounting systems and processes.
• We may be subject to litigation proceedings that could harm our business.
• Our business is subject to evolving corporate governance and public disclosure regulations that have increased both our compliance costs and the risk of noncompliance, which could have an adverse effect on our stock price.
• There are inherent limitations on the effectiveness of our controls and compliance programs.
• Our investment portfolio may be impaired by any deterioration of capital markets.
• Catastrophic events may disrupt our business and harm our operating results.