Aart de Geus
Chairman and Chief Executive Officer at Synopsys
Good afternoon. We delivered another excellent quarter with enduring broad-based strength. Revenue for the quarter was $1.25 billion. GAAP earnings per share were $1.43, with non-GAAP earnings at $2.10. We generated $440 million of operating cash flow. Notwithstanding the normal ebb and flow of the semiconductor market, design activity remains robust. In addition, our business model sets us apart by adding a solid level of stability and resilience to the accelerated growth we're seeing.
Based on this strength and confidence in our business, we are raising guidance for the full year. We expect to grow fiscal '22 revenue approximately 21% and pass the $5 billion milestone. We continue to drive notable ops margin expansion and we intend to grow non-GAAP earnings per share by approximately 29%. In the process, we expect to generate $1.6 billion to $1.65 billion in operating cash flow. Trac will discuss the financials in more detail.
Over the last five or so decades, semiconductor chips and software have transformed every aspect of our world. From traditional computers to networks, to mobile devices, from entertainment systems to home security, to medical wonder machines. Every vertical market is affected and expecting more. As a result, not only does the world demand more chips, but more chips are being designed by an expanded group of semiconductor and systems companies. Those chips are much more complex. They need to be designed faster due to time-to-market pressure and with increasingly constrained engineering talent resources.
For the last 35 years, Synopsys has been privileged to grow as an essential catalyst of this transformation, delivering 10 million-x in productivity. Today, Synopsys uniquely sits at the intersection of the dual system forces of semiconductors and software, enabling both with the bold ambition to capitalize another 1,000x this decade. We partner and collaborate with the most advanced companies in the entire supply chain. And while the technical challenges are huge, so are the opportunities. On top of this, security, safety and reliability are now a must for markets such as robotics, automotive and aerospace.
Meanwhile, more and more systems companies from large hyperscalers to AI startups, to verticals like automotive have decided to own their destiny and design their own chips and systems to accelerate their differentiation. Today, Synopsys is successfully bridging technologies from silicon to software, to systems as we engage with all these companies. In the last few years, we have delivered a number of groundbreaking innovations that are making tremendous impact. For example, in chip design, we're automating not only individual design steps, but entire sub flows. Our preconfigured IP blocks not only speed up chip design, but also let architects rapidly explore new market-specific chip and system configurations.
Our emulation and prototyping solutions are now essential to verify and optimize the interplay between hardware and software in the system. And in addition, we continue to grow our solutions that enable high-quality and more secure software as well as provide security IP blocks. Leading the way is our award-winning DSO.ai artificial intelligence design solution, which is revolutionizing chip design. First to market over the three years ago with technology that is still unmatched today, it delivers outstanding productivity improvements that are already driving substantial increases in customer commitments.
The technical results are truly groundbreaking. Customers are seeing tremendous benefits from DSO.ai's ability to learn from prior designs. For example, two of the largest, most advanced semiconductor companies in the world achieved a 25% reduction in turnaround time and compute resources. DSO.ai is also driving very significant low-power improvements exemplified by a large automotive chip maker achieving a 30% power reduction. These compelling outcomes are driving a high pace of adoption for production tape-outs across verticals and a broad set of process nodes.
Examples this quarter include long-term business commitments at a marquee U.S. hyperscaler and top consumer chip company. Our entire market-leading digital design solution both empowers and benefits from DSO.ai. This highly differentiated combination led to a competitive displacement at a large automotive chip company in Q3. Our Fusion Compiler product continues to drive accelerated growth and competitive wins across market verticals and a broad swath of technology nodes. This quarter, we expect to pass the 1,000 tape-out milestone with successes in many different customer categories.
Fusion Compiler is generated notable run time and PPA, performance power area, improvements at top graphics processor companies, and we have gained majority positions at one of the largest mobile's SoC providers and at multiple leading hyperscalers. Excellent progress and strong demand also for our modern custom design solutions. This area of growth is fueled by the key segments that include hyperscalers, high-performance compute and AI machine learning.
In custom design, long dominated by older products, we've already surpassed last year's new logos with 36 additional year-to-date, including high-profile semiconductor and hyperscaler customers. Companies driving Smart Everything continue to innovate at breathtaking speed and are now embracing migration to multi-die system designs for next-generation systems. Our multi-die system solution that includes our 3DIC compiler platform and die-to-die IP portfolio is seeing strong demand. Not surprisingly, the key markets are high-performance compute, data center and mobile.
While we continue to expand deployment at a marquee US IDM, we also experienced increased traction at prominent high-performance compute and hyperscaler customers for complex 3D multi-die and chiplet design. In mobile, we achieved plan of record of leading semiconductor companies for their next-generation multi-die processors. In high-performance compute, multi-die systems incorporate a new interconnect IP standard, UCIe, which stands for Universal Chiplet Interconnect Express. As the term express captures, it is all about speed, and Synopsys is seeing great traction in this area with a healthy pipeline and multiple wins at 3-nanometer.
More broadly, IP blocks are a must have to meet intense time-to-market pressures. Our unique breadth of scale and scale of our high-quality IP portfolio with early availability as advanced processes continue to drive strong momentum. Demand is particularly high in markets such as high-performance compute, AI/machine learning, automotive and mobile where systems are fueled by smart everything, high-speed and secure connectivity and advanced process geometries. In this context, our ARC Vision Processor IP was named Best Automotive AI Solution by the Edge AI and Vision Alliance.
Meanwhile, our industry-leading ARC, MPX and VPX processor cores that accelerate neural networks continue to see strong adoption in augmented and virtual reality, automotive and consumer applications with multiple wins in the quarter. In automotive, we closed significant transactions with large traditional and new OEMs, Tier 1s and semiconductor vendors. Security remains front and center across all market segments. We're gaining strong adoption of our security solutions for interfaces such as PCI Express, CXL and DDR, with more than 30 design wins across all market segments.
Now moving to the crucial intersection of hardware and software. In other words, verifying that the chips and system will do what was intended. Our market-leading emulation and prototyping hardware products are a unique strength and clear differentiator for Synopsys. With the fastest engines, highest capacity and lowest cost of ownership, we're doing very well. Our products not only verify hardware/software correctness, but also help find ways to reduce power consumption, one of the most vital metrics of any system.
High demand continues for our ZeBu emulation and HAPS-100 prototyping systems, growing with many of the largest semiconductor and hyperscaler customers in the world. We are on pace for yet another record year of hardware revenue. With Smart Everything entering every vertical market, requirements for security and safety continue to expand. Our Software Integrity business is a key enabler of modern software security. Our leading portfolio of products and consulting is unique in its ability to provide high value for developers, the DevOps group, and the corporate security team.
This business is rapidly approaching the $0.5 billion TTM revenue mark. This quarter, we again saw many multi-year, multi-million-dollar commitments in both renewals and new business. Business touched a broad set of verticals, including financial institutions, semiconductors, government, medical, and enterprise software. Our channel partner program progressed well this quarter, with notable new logos and expansions into new customer divisions. We also continue to increase business in new countries that we have never sold to before, and repeat business with partners that opened new markets as recently as the past 12 months.
Finally, we further strengthened our broad product and consulting portfolio with the acquisition of WhiteHat Security and its leading solution in dynamic application security testing. We're excited to have the outstanding WhiteHat team part of Synopsys and while it's only been a few weeks, the integration is going well and customer response has been enthusiastic.
In summary, we delivered another excellent quarter, and we are raising our outlook for fiscal '22. Multiple, game-changing innovations are driving outstanding technical and business results -- reflected in our accelerated growth. Notwithstanding economic choppiness, customers continue to invest heavily in critical chips, system designs, and immense amounts of software. Against this backdrop, our technology vision and execution drive growth, while our resilient business model provides a level of stability that stands out in the software industry. As we prepare to imminently cross the $5 billion revenue mark, I want to thank our employees around the world for their ongoing efforts and commitment.
With that, I'll turn it over to Trac.