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Synopsys’ (SNPS) Refresh Version of CODE V to Drive Growth


Synopsys, Inc. SNPS recently unveiled the 11.2 version of its CODE V optical design software. This version includes new solutions aiming to enhance optical engineering productivity with cost-effective measures and accelerate time-to-market.

The 11.2 version features an array of new solutions including improved SpecBuilder feature, enclosed energy analyses, enhanced Asphere Writer utility and Enhanced optimization constraints among others.

Decoding the CODE V

CODE V optical design software is used to model, analyze, optimize and support the development of optical systems for sundry applications. This software features optical ray tracing and provides optical techniques plus calculations to create superior designs.

The CODE V is popular for its efficiency in saving time and money. This technology has been adopted by multiple key customers, helping the company rake in revenues.

The adoption of CODE V technology is gaining momentum because of surging demand in the market for software products.

Synopsys, Inc. Price and Consensus

Synopsys, Inc. Price and Consensus | Synopsys, Inc. Quote

Portfolio Strength Driving Synopsys

Synopsis’ revenues are consistently driven by the proliferation of digital intelligence, leading to increased investments by software developers, which in turn, is leading to increased adoption of the company’s solutions.

Rapid growth in software products is driving the company’s top line. The company’s EDA design solutions are helping design new artificial intelligence (AI) engines. Notably, its recently launched Fusion Technology received accolades from Samsung Electronics, STMicroelectronics, Toshiba and ANSYS.

In the last reported quarter, revenues from Core EDA, comprising 55% of the company’s total revenues, increased 5.2% year over year.

Notably, the company’s acquisitions are helping it to access new market segments and enrich its product portfolio. This January, Synopsys acquired Kilopass Technology, which is expected to aid the company to offer a wide portfolio of efficient IP solutions.

Moreover, Black Duck emerges as one of its most significant transactions besides Sidense and QuantumWise. The company expects the first to be accretive to its top line over the long run.

How Synopsys is Placed in a Competitive Design Market

However, what makes us cautious is the tough rivalry offered by EDA vendors such as, Cadence Design Systems Inc. CDNS and Mentor Graphics.

These companies offer products that are more focused on distinct phases of the IC design process, providing a range of services to companies throughout the world to help optimize the respective product development process. The product facilities could stiffen competition, inducing pricing pressure for Synopsys.

Zacks Rank & Stocks to Consider

Synopsys currently has a Zacks Rank #3 (Hold). Two better-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. FTNT and Vishay Intertechnology, Inc. VSH, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Fortinet and Vishay is projected to be 16.8% and 9.16%, respectively.

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