1 - Synopsys

Synopsys Investor Meeting
Lisa Ewbank
Vice President, Investor Relations
September 25, 2014
© 2014 Synopsys, Inc. All rights reserved. 1
Agenda
Aart de Geus, Chairman and co-CEO
2014 New Product Highlights
John Chilton, SVP and GM, Coverity
Synopsys’ New TAM
Coverity Strategy
© 2014 Synopsys, Inc. All rights reserved. 2
Forward-Looking Statements
This presentation contains forward-looking statements under the safe harbor
provisions of Section 21E of the Securities Exchange Act of 1934, including
statements regarding projected financial results and long-term growth rates. For a
discussion of important factors that could cause actual results to differ materially
from those in such statements, see the section entitled “Risk Factors” in Synopsys’
most recent Quarterly Report on Form 10-Q.
Regulation G
In addition to financial results prepared in accordance with Generally Accepted
Accounting Principles, or GAAP, this presentation will also contain certain nonGAAP financial measures. Except for certain forward-looking non-GAAP financial
measures for which a reconciliation is not possible without unreasonable efforts,
reconciliations of the non-GAAP financial measures contained in this presentation
or given orally to their most comparable GAAP measures are included in the
third quarter fiscal 2014 earnings release and financial supplement, dated
August 20, 2014, and available on Synopsys' website at
www.synopsys.com/Company/InvestorRelations/Pages/FinancialNews.aspx.
© 2014 Synopsys, Inc. All rights reserved. 3
2014 New Product Highlights
Aart de Geus
Chairman and co-CEO
September 25, 2014
© 2014 Synopsys, Inc. All rights reserved. 4
$2B
#1
Revenue
EPS
• Industry Leader
‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14
Software
• New TAM
IP
• #2 in market segment
• Broad, high-quality portfolio
EDA
• Market segment leader
• Technology leader
• New products
• Solid profitability and cash
generation
• Diversifying into
higher-growth adjacency
• Committed to building
long-term shareholder value
Software
Verification
Continuum
Advanced IP
IC Compiler II
Software
Verification
Continuum
Advanced IP
IC Compiler II
FinFET
100
22
16 14 10
80
60
Tracking >150
FinFET designs
and tape-outs
worldwide.
40
Source: Synopsys Global Technical Service
Q3'14
Q2'14
Q1'14
Q4'13
Q3'13
Q2'13
Q1'13
Q4'12
Q3'12
Q2'12
Q1'12
Q4'11
Q3'11
Q2'11
Q1'11
Q4'10
Q3'10
Q2'10
Q1'10
0
Q4'09
20
Synopsys is
integral to
>95% of them.
FinFET
22
16 14 10
Tracking >150
FinFET designs
and tape-outs
worldwide.
Synopsys is
integral to
>95% of them.
Source: Synopsys Global Technical Service
16 nm
Collaboration
FinFET
22
16 14 10
Tracking >150
FinFET designs
and tape-outs
worldwide.
Synopsys is
integral to
>95% of them.
10X New Place and Route Platform
Rebuild
Rethink
Reuse
New Infrastructure
New Engines
Best of IC Compiler I
Multi
Hier
Multi
Mode
Timer
Floor Plan
Linear Placer
Opt.
Clock Tree
Zroute
Multi
Voltage
Multi
Thread
Multi
View
IC Compiler II
Users Report Great Productivity!
A
B
Placement Opt.
10X Faster
25M Instances:
 < 4Hrs
Clock Opt.
 4X Faster
Design Planning
 10X Faster
V
10X
C
D
Placement Opt.
8X Faster
Placement Opt.
6X Faster
Clock Opt.
 2X Faster
Memory Needed:
 3X Less
IC Compiler II
in Action
FinFET
22
16 14 10
Advanced Nodes
Manufactured
Taped-out
45 40
28
Active Design
Established Nodes
180
130
90
65 55
20
Software
Verification
Continuum
Advanced IP
IC Compiler II
IP Accelerated Initiative
V
10X
Broad, Silicon-Proven
DesignWare IP Portfolio
Expect More!
CTL
PHY
SoC
Logic
Sensor
Subsystem
Customized
IP Subsystems
IP Virtual
Development Kits
IP Prototyping
Kits
• IP subsystems &
custom integration
• Support for 64-bit
Linux on ARM
• Proven out-of-the–
box reference design
• Ease IP integration
into your SoC
• Cut months from
software schedule
• Prototype IP in
ONE minute
Software
Verification
Continuum
Advanced IP
IC Compiler II
Bugs Found per Week
Faster Time-to-Market
Project Time
Bugs Found per Week
Faster Time-to-Market
Static & Formal
Debug
FPGA
Prototyping
Planning
Verification IP
Virtual
Prototyping
Faster
Simulation
Emulation
Project Time
Bugs Found per Week
Verification Continuum
V
3X
Static & Formal
Debug
FPGA
Prototyping
Planning
Verification IP
Virtual
Prototyping
Faster
Simulation
Emulation
Project Time
Verification
Continuum
Industry’s #1
Planning & Coverage
Debug #1
#1
Virtual
Prototype
#1
Static &
Formal
Simulation
#1
Emulation
VIP, Models & Databases
Industry’s Fastest
FPGA
Prototype
Fastest
Engines
Verification Compiler
Planning & Coverage
Debug
VC
Static
Virtual
Static
&
Virtualizer
Formal
Prototype &Formal
VCS
Simulation
VIP, Models & Databases
ZeBu
Emulation
FPGA
HAPS
Prototype
Fastest
Engines
Software
Verification Compiler
Planning & Coverage
Verdi
Virtualizer
VC Static
& Formal
Unified Debug
with Verdi
VCS
VIP, Models & Databases
ZeBu
HAPS
Fastest
Engines
Unified Compile
with VCS
V
3X
Software
Verification
Continuum
Advanced IP
IC Compiler II
Synopsys Expands TAM
• Acquired Coverity for
$375M ($334M net of
cash acquired);
• Leading provider of
Software Quality, Testing
and Security Tools
• Natural adjacency and
expansion of our TAM
• LT growth opportunity
beyond our existing EDA
customer base
Coverity
John Chilton
SVP and GM, Coverity
September 25, 2014
© 2014 Synopsys, Inc. All rights reserved. 25
Synopsys Customers Spending On SW
$150M for Software – For One Chip
Primary Design
$300
Cost ($M)
$250
Software
Hardware
$200
$150
$100
$50
$0
65nm
Source: IBS, Dec 2012, Feb 2013
© 2014 Synopsys, Inc. All rights reserved. 26
45/40nm
28nm
20nm
16/14nm
© 2014 Synopsys, Inc. All rights reserved. 27
“debugging”
© 2014 Synopsys, Inc. All rights reserved. 28
We Are Software Experts
Synopsys is the world’s 15th
largest software company
* Comverse Technology was replaced with Verint Systems.
Source: JP Morgan FactSet market data as of 11/23/2012 - updated with CY2013 estimated revenues (source: Company Reports, IPREO)
© 2014 Synopsys, Inc. All rights reserved. 29
Why Coverity? Synopsys 2004 View
What is Coverity?
© 2014 Synopsys, Inc. All rights reserved. 30
Quality Improvement - 4 year time period
Incoming defects per 1K Licenses
© 2014 Synopsys, Inc. All rights reserved. 31
© 2014 Synopsys, Inc. All rights reserved. 32
We Liked It So Much We Bought the
Company
Company Facts
• Founded in 2003
at Stanford Labs
• 300 employees
across 10 countries
• #1 in software
quality analysis IDC
© 2014 Synopsys, Inc. All rights reserved. 33
Financial Facts
• ~$75M FY13
revenue
• 20%+ revenue
CAGR
Customer Facts
• Over 1,100 world
class customers
• Over 75,000 happy
developers
• 5 billion lines of
code under
management
The Economics of Testing
Coding Cycle
Minutes ... Hours
Automated
QA Testing Cycle
Days ... Weeks
Manual
QA Testing Cycle
Weeks ... Months
Manual/
Semi-automated
Security Scan
3..12 Months
Custom Delivery
3..12 Months
Cost of a defect increases significantly when found later:
•
•
•
•
Context switch for developer and need to (re-) familiarize with code
More people are involved
Takes effort to produce reliable reproducer
High communication overhead (documentation, tracking, etc.)
Cost of a bug
Delay in Finding
© 2014 Synopsys, Inc. All rights reserved. 34
The Economics of Testing
Coding Cycle
Minutes ... Hours
Automated
QA Testing Cycle
Days ... Weeks
Manual
QA Testing Cycle
Weeks ... Months
Manual/
Semi-automated
Security Scan
3..12 Months
Custom Delivery
3..12 Months
Likelihood to find a bug decreases dramatically:
• Fewer path are executed by tests on larger modules
• Fewer corner cases understood on higher level
• Fewer corner cases reachable from higher levels
Likelihood to find a bug
Stage in Process
© 2014 Synopsys, Inc. All rights reserved. 35
The Economics of Testing
Coding Cycle
Minutes ... Hours
Automated
QA Testing Cycle
Days ... Weeks
Manual
QA Testing Cycle
Weeks ... Months
Manual/
Semi-automated
Security Scan
3..12 Months
Custom Delivery
3..12 Months
Impact of delayed testing:
•
•
•
•
•
•
Dramatically increased cost of finding and fixing bugs
Extends time to market
Reduces reliability and risk of product deliveries
Increases risk of security defect reaching customers
Decreases customer satisfaction
Increases the cost of follow-on products
Cost of a bug
Stage in Process
© 2014 Synopsys, Inc. All rights reserved. 36
Software Test Markets and Strategies
Enter Dynamic
Dynamic
Unique technology to test
only changed code
$1250M
Static
find quality defects early
without running code
$560M
find security defects early
without running code
$240M
$200M
Quality
Source : Synopsys CBD, IDC, VDC -2014
© 2014 Synopsys, Inc. All rights reserved. 37
2
Grow in Security
3
Enter Dynamic
a) Leverage Synopsys
in Embedded
b) Build on Success in
New Markets
c) Extend Differentiation
a) Extend Brand
b) Add more Checkers
and more Languages
Extend Technology
to Security
2
1
Core Market
Watch this Space
3
Coverity Original
Breakthrough
1
Security
a) Disruptive new
Techniques
Coverity® Development Testing Platform
Analyze | Remediate | Govern
Analysis Packs
SDLC
Integrations
Policy Manager
Third Party
Metrics
Dynamic
Analysis
IDE
Coverity Connect
Code
Coverage
Architecture
Analysis
FindBugs™
Analysis
Quality
Advisor
Security
Advisor
Test
Advisor
1
2
3
Test
Execution
Build/
Continuous
Integration
Defect
Tracking
SCM
Analysis
Integration
Toolkit
Coverity SAVE™
Static Analysis Verification Engine
Proprietary Code | Open Source Code
© 2014 Synopsys, Inc. All rights reserved. 38
HP ALM
Sales/Customer Engagement Benefit
We know how to sell
Software
We are Local Everywhere
Banks,
ISVs
Energy,
Gaming,
Etc.
Resources
and Trust to
Collaborate
with Leaders
Embedded/
Electronics
We are Trusted Partners to
Leading Companies
North America
© 2014 Synopsys, Inc. All rights reserved. 39
International
Synopsys’ Next Platform Business
2000
2010
Revenue
1990
'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97' '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14e
EDA
Point Tool
Logic Synthesis
Intellectual Property
Front End
Platform
Point Tool
DesignWare®
Complete
Solution
Digital
Platform
Analog
Platform
Market Segment
Leader
Market Segment
Leader
Point Tool
Quality Advisor
© 2014 Synopsys, Inc. All rights reserved. 40
Test
Platform
Summary – Large Market Opportunity with
Current Logos + Brand New Customer Base
Current Semis/Systems Customers
New Verticals, Customers
Different Users, Different Budgets
Banking, Financial Services, Energy,
Aerospace/Defense, Software, Internet,
Industrial, etc.
• Naturally adjacent
System Design
Verification
IP
Implementation
– Innovative algorithmbased verification
technology
– Customer-obsessed DNA
• New industries SNPS
doesn’t touch today
Manufacturing
© 2014 Synopsys, Inc. All rights reserved. 41
Thank You
© 2014 Synopsys, Inc. All rights reserved. 42