Synopsys, Inc. (NASDAQ:SNPS) Q4 2022 Earnings Call Transcript

And so these optimizations are already going hand-in-hand. SIG adds an additional angle to that is the angle of security and quality. And we have, by the way, sort of the equivalent of a SIG inside of the EDA side as well and the IP side, because in the IP, we have a variety of security capabilities being built in. I think it will take a little bit of time before you can see a strong connectivity between those, but it has not taken that much time to see at a number of customers that they start to recognize that our vision moves up into the domain of software and moves down into the hardware at the very moment that they are learning about this. And the earlier mentioned automotive, but it could also be industrial and a few other segments, are precisely now arriving at this junction or figuring out that they have to make it all work at the same time.

And so while many of the specific things that we’re working on, we’ll talk about as we release them, the general direction of your question, I think, is very much the way we think about systemic complexity now being the hallmark of the next decade.

Trac Pham: Jay, this is Trac. So to your question regarding SIG and international expansion, you’re right, that was a really intentional focus for us a couple of years ago in terms of improving the go-to-market function, both internationally and with channel partners. And I would say that when you look at the results over the last couple of years, I think we’ve made really good progress with regards to how we’re executing internationally and the additions and the execution with new channel partners. I’m optimistic not only because of the results has been good, but we’re in the early stages of actually seeing strong results from that. So I think there’s a lot of progress ahead of us and lot of opportunities ahead of us in both those areas.

Jay Vleeschhouwer: Thank you Aart. Thank you Trac.

Aart de Geus: You’re welcome.

Trac Pham: Thank you, Jay.

Operator: We will take our last question from Ruben Roy with Stifel Nicolaus.

Ruben Roy: Hi, thank you. And Trac, congrats from me as well. Thanks for all the support over the years. I guess Trac or Aart, one thing I wanted to just touch base on again is on the SIG business. Aart, you mentioned that you did see some impact from the macro during the quarter. The numbers look pretty good. I’ve got you down for 16% year-over-year growth, so maybe if you could just expand on that. Was that towards the latter end of the quarter and looking ahead or any other detail you can give us, please?

Aart de Geus: Sure. Well, first, I do think that the results were quite good. What we did see, and it probably started a little earlier than this quarter that some of the negotiations turned out to be a bit longer, maybe some more layers of approval. And actually, that is very, very common when you see economy looking at, well, is it going to be a recession or not, people little bit worried. Well, they just start putting some breaks on the decision making first and foremost. But at the same time, we were encouraged by the fact that growth continues to improve over the previous year. And there’s no doubt in our mind that this is a very good part of Synopsys and there’s a lot of opportunity, so we’ll keep pushing.

Ruben Roy: Okay, great. Thanks for that detail. And then a quick follow-up. On the DSO.ai, you mentioned Aart that that’s — you’re starting to gain attraction across a wide range of process nodes, which is interesting to me, can you maybe talk a little bit about the value prop across those nodes, proposition across those nodes, is it power reduction for some, reduction in turnaround time for others or how does that work?