Welcome!

News Feed Item

Synaptics Reports Second Quarter Fiscal 2014 Results

Revenue up 44% and GAAP EPS up 45% Year-over-Year; Financial Results Reflect Partial Quarter Impact on Operations from new Fingerprint ID Business

SAN JOSE, Calif., Jan. 23, 2014 /PRNewswire/ -- Synaptics Inc. (NASDAQ: SYNA), a leading developer of human interface solutions, today reported financial results for its second quarter ended December 31, 2013. 

Net revenue for the second quarter of fiscal 2014 was $205.8 million, an increase of 44% compared with $143.0 million for the comparable quarter last year. Net income for the second quarter of fiscal 2014 was $17.3 million, compared with net income of $11.1 million for the comparable quarter last year. Diluted earnings per share for the second quarter of fiscal 2014 was  $0.48, an increase of 45% compared with $0.33 for the comparable quarter last year. 

Non-GAAP net income for the second quarter of fiscal 2014 was $31.1 million, compared with non-GAAP net income of $17.7 million for the comparable quarter last year.  Diluted earnings per share for the second quarter of fiscal 2014 was $0.86, an increase of 62% compared with $0.53 for the second quarter of fiscal 2013. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.) 

"Excluding the impact of the acquisition of Validity, which closed in early November, our financial performance for the December quarter was above the mid-point of our guidance as we experienced strong year-over-year revenue growth in touchscreen and touchpad products," stated Rick Bergman, President and CEO.  "As we enter the second half of fiscal 2014, we expect to benefit from continued strong organic growth, further augmented by growing contributions from our acquisitions and new product innovations.  In addition, we are very excited with the progress of our new Fingerprint ID business and expect the acquisition to be accretive by the end of the fiscal year, earlier than previously anticipated."

Second Quarter 2014 Business Metrics

  • Revenue mix from mobile and PC products was approximately 65% and 35%, respectively. Fingerprint ID products have been classified according to type of device.
  • Revenue from mobile products of $133.6 million was up 64% year-over-year. Mobile products revenue includes all touchscreen, video display, and applicable fingerprint ID products.
  • Revenue from PC products totaled $72.2 million, an increase of 17% year-over-year.
  • GAAP earnings per share reflects the impact of additional operating expenses, including acquisition related costs and shares issued in connection with the company's recent acquisition of Validity Sensors, Inc., which closed on November 7, 2013.

Cash at December 31, 2013 was $369.4 million. In the first half of fiscal 2014, cash flow from operations was $85.8 million, and the company used $70.3 million to repurchase of approximately 1.7 million shares of common stock.

Kathy Bayless, CFO, added, "Considering our backlog, customer forecasts, and the resulting expected product mix, we anticipate revenue to be in the range of $180 million to $200 million for the March quarter.  The March quarter outlook reflects seasonality, with incremental revenue from our new Fingerprint ID products."

Earnings Call Information
The Synaptics second quarter fiscal 2014 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, January 23, 2014, during which the company will provide forward-looking information. Analysts and investors should dial 1-877-941-1427 at least ten minutes prior to the call to participate.  Synaptics will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the company's website at www.synaptics.com.

About Synaptics Incorporated
As a leading developer of human interface solutions which enhance the user experience, Synaptics provides the broadest solutions portfolio in the industry. The ClearPad® family supports touchscreen solutions for devices ranging from entry-level mobile phones to flagship premium smartphones, tablets and notebook PCs. The TouchPad™ family, including ClickPad™ and ForcePad®, is integrated into the majority of today's notebook PCs. LiveFlex® fingerprint sensor technology enables authentication, mobile payments, and touch-based navigation for smartphones, tablets, and notebook computers. Synaptics' wide portfolio also includes ThinTouch® supporting thin and light keyboard solutions, as well as key technologies for next generation touch-enabled video and display applications. (NASDAQ: SYNA) www.synaptics.com.

Use of Non-GAAP Financial Information

In evaluating its business, Synaptics considers and uses net income excluding share-based compensation and certain non-cash or non-recurring items as a supplemental measure of operating performance.  Net income excluding share-based compensation and certain non-cash or non-recurring items is not a measurement of the company's financial performance under GAAP and should not be considered as an alternative to GAAP net income. The company presents net income excluding share-based compensation and certain non-cash or non-recurring items because it considers it an important supplemental measure of its performance. The company believes this measure facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges and certain non-cash or non-recurring items. Net income excluding share-based compensation and certain non-cash or non-recurring items has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company's GAAP net income.  The principal limitations of this measure are that it does not reflect the company's actual expenses and may thus have the effect of inflating its net income and net income per share. 

Forward-Looking Statements
This press release contains "forward-looking statements that involve risks and uncertainties. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify these statements by the fact that they do not relate strictly to historical or current facts and may include words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other words and terms of similar meaning. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements which reflect estimates and assumptions made by our management, all of which are difficult to predict and many of which are beyond our control, including statements related to our target business model, future performance, and revenue growth. Although we believe our estimates and assumptions to be reasonable, they are subject to a number of risks and uncertainties beyond our control and may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this press release are not guarantees of future performance, and actual results may differ materially from those anticipated or implied in the forward-looking statements due to various factors, including those factors identified from time to time in our Form 10-K for the fiscal year ended June 30, 2013, and our other current and periodic reports filed with the SEC.  All forward-looking statements speak only as of the date of this press release. We do not intend to publicly update or revise any forward-looking statements as a result of new information or future events or otherwise, except as required by law. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

For more information contact:

Jennifer Jarman
The Blueshirt Group
415-217-5866
[email protected] 

(Tables to Follow)

SYNAPTICS INCORPORATED

 CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)






December 31,


June 30,


2013


2013





Assets




Current assets:





Cash and cash equivalents                                                                 

$ 369,424


$ 355,303


Accounts receivables, net of allowances of $883

133,022


148,454


Inventories                                                                              

51,746


49,948


Prepaid expenses and other current assets                                                     

18,885


6,715

Total current assets                                                                    

573,077


560,420





Property and equipment at cost, net                                                               

64,666


58,035

Goodwill                                                                             

59,670


20,695

Purchased intangibles

87,391


13,110

Non-current auction rate securities

18,260


16,969

Other assets                                                                                 

19,632


22,037

Total assets

$ 822,696


$ 691,266





Liabilities and stockholders' equity




Current liabilities:





Accounts payable                                                                          

$  68,578


$  83,710


Accrued compensation                                                                      

22,833


23,728


Income taxes payable

9,057


10,751


Notes payable

2,305


-


Current portion of contingent consideration

13,099


-


Other accrued liabilities                                                                    

34,565


31,437

Total current liabilities                                                                  

150,437


149,626





Notes payable

-


2,305

Other liabilities                                                                            

47,260


17,480





Commitments and contingencies








Stockholders' equity:





Preferred stock; 






$.001 par value; 10,000,000 shares authorized; 







no shares issued and outstanding

-


-


Common stock;






$.001 par value; 120,000,000 shares authorized;  







54,019,279 and 50,673,758 shares issued, and 34,971,568 and 







33,289,826 shares outstanding, respectively

54


51


Additional paid in capital

659,482


539,170


Less:  19,047,711 and 17,383,932 treasury shares, respectively, at cost

(530,422)


(460,160)


Accumulated other comprehensive income

7,620


6,802


Retained earnings

488,265


435,992

Total stockholders' equity                                                                

624,999


521,855

Total liabilities and stockholders' equity

$ 822,696


$ 691,266

 

SYNAPTICS INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)
















Three Months Ended


Six Months Ended





December 31,


December 31,





2013


2012


2013


2012












Net revenue                                                 


$ 205,763


$ 143,040


$ 428,370


$ 270,081

Acquisition related costs


2,170


-


2,170


-

Cost of revenue                             


109,048


74,010


222,376


140,481

Gross margin                                                  


94,545


69,030


203,824


129,600

Operating expenses










Research and development               


45,931


34,257


86,373


67,059


Selling, general, and administrative


21,807


19,008


41,900


37,916


Acquisition related costs


4,729


837


6,280


1,364

Total operating expenses                                       

72,467


54,102


134,553


106,339












Operating income                                   


22,078


14,928


69,271


23,261

Interest income


222


225


433


443

Non-cash interest income


254


-


473


-

Interest expense                                                

(5)


(5)


(9)


(9)

Income before provision for income taxes                 


22,549


15,148


70,168


23,695

Provision for income taxes             


5,215


4,034


17,895


6,528

Net income                                         


$  17,334


$  11,114


$  52,273


$  17,167












Net income per share:










Basic                                                      

$    0.51


$    0.34


$    1.56


$    0.52


Diluted                                                     

$    0.48


$    0.33


$    1.47


$    0.51












Shares used in computing net income per share:










Basic                                                          

33,990


32,478


33,475


32,710


Diluted                                                      

36,059


33,313


35,586


33,739

 

SYNAPTICS INCORPORATED

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)
















Three Months Ended


Six Months Ended





December 31,


December 31,





2013


2012


2013


2012












GAAP gross margin


$94,545


$69,030


$203,824


$129,600


Acquisition related costs


2,170


-


2,170


-


Share-based compensation


262


198


516


441

Non-GAAP gross margin


$96,977


$69,228


$206,510


$130,041























GAAP gross margin - percentage of revenue


45.9%


48.3%


47.6%


48.0%


Share-based compensation - percentage of revenue


1.2%


0.1%


0.6%


0.1%

Non-GAAP gross margin - percentage of revenue


47.1%


48.4%


48.2%


48.1%























GAAP research and development expense


$45,931


$34,257


$ 86,373


$ 67,059


Share-based compensation


(4,241)


(3,879)


(8,168)


(7,790)

Non-GAAP research and development expense


$41,690


$30,378


$ 78,205


$ 59,269























GAAP selling, general, and administrative expense


$21,807


$19,008


$ 41,900


$ 37,916


Share-based compensation


(3,119)


(3,929)


(5,980)


(8,242)

Non-GAAP selling, general, and administrative expense


$18,688


$15,079


$ 35,920


$ 29,674























GAAP operating income


$22,078


$14,928


$ 69,271


$ 23,261


Acquisition related costs


6,899


837


8,450


1,364


Share-based compensation


7,622


8,006


14,664


16,473

Non-GAAP operating income


$36,599


$23,771


$ 92,385


$ 41,098























GAAP net income


$17,334


$11,114


$ 52,273


$ 17,167


Acquisition related costs


6,899


837


8,450


1,364


Share-based compensation


7,622


8,006


14,664


16,473


Non-cash interest income


(254)


-


(473)


-


Tax adjustments


(484)


(2,273)


2,117


(4,577)

Non-GAAP net income


$31,117


$17,684


$ 77,031


$ 30,427























GAAP net income per share - diluted


$  0.48


$  0.33


$   1.47


$   0.51


Acquisition related costs


0.19


0.03


0.23


0.04


Share-based compensation


0.21


0.24


0.41


0.49


Non-cash interest income


(0.01)


-


(0.01)


-


Tax adjustments


(0.01)


(0.07)


0.06


(0.14)

Non-GAAP net income per share - diluted


$  0.86


$  0.53


$   2.16


$   0.90

 

 

SOURCE Synaptics Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...