About Magma Design Automation, Inc.

To sum up, Synopsys is a leading provider of electronic design automation (EDA) software and services. Its products are used by designers of integrated circuits (ICs) to develop, simulate, and test the physical design of ICs before production, and then to test finished products. The company also provides semiconductor intellectual property (SIP), pre-designed circuits used as part of larger chips. Customers come from a variety of markets, but particularly the semiconductor and electronics manufacturing industries. (Intel is its top customer.) Synopsys offers time-based software licenses, where customers make yearly payments for use and support. It generates about half its sales outside the US.


Synopsys makes money from four groups: Core EDA, which includes digital and custom IC design products, verification products, and field-programmable gate array (FPGA) design products; IP and Software Solutions, which includes the Designware IP portfolio, system-level design tools, and Coverity quality and security testing; manufacturing solutions; and professional services. CoreEDA is the core source of revenue, accounting for more than 60%. IP and Software Solutions brings in 25%, followed by Manufacturing Solutions at 9%, and professional services rounding it out at 3%.

Geographic Reach

The company has some 30 offices in the US. It has offices in another 25 countries, with major operations in China, France, Germany, India, and Taiwan.

The US represents Synopsys' largest market, accounting for 51% of sales. Japan and Europe contributed 13% and 10%, respectively. All regions except Japan reported year-over-year growth in 2015 (ended October).

Sales and Marketing

Synopsys markets its products primarily to semiconductor and electronics systems companies through direct sales efforts in the US and in select international markets.

Time-based licenses generate 80% of revenue, followed by upfront licenses at 9% of revenue. Maintenance and service accounts for the rest of the revenue.

Financial Performance

The company's revenue rose 9% in 2015 (ended October) from 2014, but net income dropped 13%.

Revenue hit $2.24 billion in 2015 from about $2 billion with higher sales in each segment and in all geographic markets except Japan. Acquisitions also contributed to the sales rise.

Net income fell to $226 million from $260 million on higher expenses for personnel and acquisition-related costs.

Cash flow from operations slowed to $495 million in 2015 from $551 million in 2014.


The company has had success growing through acquisitions and by expanding its operations outside the US. 

Mergers and Acquisitions

In 2016 Synopsys continued a string of acquisitions from 2015 that added capabilities to its portfolio.

With the 2016 the acquisition of Gold Standard Simulations Ltd., a provider of Technology CAD and EDA simulation products for design technology, Synopsys built on its TCAD strategy to reduce development time and cost.

In 2015 Synopsys bought Codenomicon, a software security company focused on software embedded in chips and devices. The acquisition of assets of Quotium, including the Seeker product and R&D team, added talent and technology to accelerate Synopsys' efforts in the software application security market.

In 2014 Synopsys continued its use of acquisitions to expand its product lines.

In picking up Coverity Inc. for about $334 million, Synopsys got a provider of software quality, testing, and security tools that position Synopsys to enter a growing market of enterprise IT and independent software providers in financial services, energy, entertainment, and retail.

Synopsy strengthened its application-specific instruction-set processors tools portfolio with the acquisition of Target Compiler Technologies.

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Magma Design Automation, Inc.

1650 Technology Dr Ste 100
San Jose, CA 95110
Phone: 1 (408) 565-7500


  • Employer Type: Public
  • Pres-magma Kk: Noriaki Kikuchi
  • Vice President of Sales and Marketing: Ankush Oberai
  • Managing Director China: Sarah Xu

Major Office Locations

  • San Jose, CA

Other Locations

  • Durham, NC