Welcome!

News Feed Item

Synaptics Reports Third Quarter Fiscal 2014 Results

- Record March quarter revenue, up 25% year-over-year

SAN JOSE, Calif., April 24, 2014 /PRNewswire/ -- Synaptics (NASDAQ: SYNA), a leading developer of human interface solutions, today reported financial results for its third quarter ended March 31, 2014. 

"Our strong performance in the third quarter reflects Synaptics' continued leadership across our entire product portfolio, from touchpads to touchscreens to our new fingerprint ID products, and we were pleased to see the fingerprint ID business become accretive to our non-GAAP earnings a quarter ahead of schedule," stated Rick Bergman, President and CEO.  "We expect to close the fiscal year with another exceptional quarter. While at the start of the year we had forecast annual revenue growth to be similar to the 21% achieved last year, with the strength of the fingerprint ID business augmenting the growth of our core touch solutions, we now expect to achieve top-line growth of 37% to 40% for fiscal 2014."

Net revenue for the third quarter of fiscal 2014 was $204.3 million, an increase of 25% compared with $163.3 million for the comparable quarter last year.  Third quarter revenue reflects the first full quarter of the fingerprint ID business. 

Further, the company substantially increased its outlook for the fingerprint ID business, resulting in an increase to contingent consideration on expected future earn-out payments.  Including the charge for change to contingent consideration of $53.0 million, GAAP net loss for the third quarter of fiscal 2014 was $(40.1) million, or $(1.12) per diluted share. Net income for the comparable quarter last year of $36.4 million, or $1.07 per diluted share, included the benefit of a non-recurring, non-cash tax item of $15.8 million

Non-GAAP net income for the third quarter of fiscal 2014 was $23.7 million, or $0.63 per diluted share, compared with non-GAAP net income of $27.0 million, or $0.79 per diluted share, for the third quarter of fiscal 2013.  (See attached table for a reconciliation of GAAP to non-GAAP financial measures.) 

Third Quarter 2014 Business Metrics

  • Revenue mix from mobile and PC products was approximately 74% and 26%, respectively. Fingerprint ID products have been classified according to type of device.
  • Revenue from mobile products of $150.7 million was up 44% year-over-year. Mobile products revenue includes all touchscreen, video display, and applicable fingerprint ID products.
  • Revenue from PC products totaled $53.5 million, a decrease of 9% year-over-year.
  • Cash at March 31, 2014 was $391.5 million.

Kathy Bayless, CFO, added, "Considering our backlog of $145 million, customer forecasts, and the resulting expected product mix, we anticipate revenue to be in the range of $275 million to $295 million for the June quarter, an increase of 20% to 28% over the prior year quarter's record revenue.  The June quarter outlook reflects strong sequential growth across our product portfolio."

Earnings Call Information

The Synaptics third quarter fiscal 2014 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, April 24, 2014, during which the company will provide forward-looking information. To participate on the live call, analysts and investors should dial 1-877-941-4774 at least ten minutes prior to the call.  Synaptics will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the company's Web site at www.synaptics.com.

About Synaptics Incorporated

The 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, change in contingent consideration, and certain non-cash or non-recurring items as a supplemental measure of operating performance.  Net income excluding share-based compensation, change in contingent consideration, 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, change in contingent consideration, 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, change in contingent consideration, and certain non-cash or non-recurring items. Net income excluding share-based compensation, change in contingent consideration, 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 about Synaptics, as that term is defined under the federal securities laws.  Synaptics intends such forward-looking statements to be subject to the safe harbor created by those laws. Such forward-looking statements include, but are not limited to, statements regarding future operating and financial performance, including revenue and gross margin for the Company's fourth fiscal quarter of 2014 and full 2014 fiscal year.  Synaptics cautions that these statements are not guarantees of future performance and are qualified by important factors that could cause actual results to differ materially from our current expectations.  Such factors include, but are not limited to, (a) demand for Synaptics' products, (b) market demand for OEMs' products using Synaptics' solutions, (c) changing market demand trends in the markets Synaptics serves, (d) the success of Synaptics' customers' products that utilize Synaptics' product solutions, (e) the development and launch cycles of Synaptics' customers' products, (f) market pressures on selling prices, (g) changes in product mix, (h) the market acceptance of Synaptics' product solutions compared with competitors' solutions, (i) general economic conditions, including consumer confidence and demand, and (j) other risks as identified from time to time in Synaptics' SEC reports, including Synaptics' Annual Report on Form 10-K for the fiscal year ended June 29, 2013, and subsequent quarterly and periodic reports, registration statements, amendments and other reports that we may file from time to time with the SEC and/or make available on our website. All forward-looking statements are based on information available to Synaptics on the date hereof, and Synaptics assumes no obligation to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

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)












March 31,


June 30,





2014


2013








Assets






Current assets:





Cash and cash equivalents                                                                 

$391,481


$355,303


Accounts receivables, net of allowances of $887 and $883 






at March 31, 2014 and June 30, 2013, respectively

149,687


148,454


Inventories                                                                              

70,188


49,948


Prepaid expenses and other current assets                                                     

23,012


6,715

Total current assets                                                                    

634,368


560,420








Property and equipment at cost, net                                                               

76,993


58,035

Goodwill                                                                             

61,030


20,695

Purchased intangibles

84,751


13,110

Non-current auction rate securities

18,566


16,969

Other assets                                                                                 

19,098


22,037

Total assets                                                                              

$894,806


$691,266





Liabilities and stockholders' equity




Current liabilities:





Accounts payable                                                                          

$ 76,692


$ 83,710


Accrued compensation                                                                      

22,819


23,728


Income taxes payable

4,978


10,751


Current portion of contingent consideration

41,620


-


Other accrued liabilities                                                                    

44,786


31,437

Total current liabilities                                                                  

190,895


149,626








Notes payable

-


2,305

Other liabilities                                                                            

75,314


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;  







55,033,057 and 50,673,758 shares issued, and 35,985,346 and 







33,289,826 shares outstanding, respectively

55


51


Additional paid in capital

703,107


539,170


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

(530,422)


(460,160)


Accumulated other comprehensive income

7,648


6,802


Retained earnings

448,209


435,992

Total stockholders' equity                                                                

628,597


521,855

Total liabilities and stockholders' equity                                              

$894,806


$691,266








 

 

SYNAPTICS INCORPORATED




CONDENSED CONSOLIDATED STATEMENTS OF INCOME




(In thousands, except per share data)




(Unaudited)



















Three Months Ended


Nine Months Ended





March 31,


March 31,





2014


2013


2014


2013












Net revenue                                                 


$   204,271


$   163,324


$   632,641


$   433,405

Acquisition related costs


2,378


-


4,548


-

Cost of revenue                             


109,463


82,241


331,839


222,722

Gross margin                                                  


92,430


81,083


296,254


210,683

Operating expenses










Research and development               


49,412


36,740


135,785


103,799


Selling, general, and administrative


25,803


20,183


69,703


58,099


Acquisition related costs


53,358


499


57,638


1,863

Total operating expenses                                       

128,573


57,422


263,126


163,761












Operating (loss)/income                                   


(36,143)


23,661


33,128


46,922

Interest income


238


197


671


640

Non-cash interest income


278


-


751


-

Interest expense                                                

-


(4)


(9)


(13)

Income before provision/(benefit) for income taxes                 

(35,627)


23,854


34,541


47,549

Provision/(benefit) for income taxes             


4,429


(12,592)


22,324


(6,064)

Net (loss)/income                                         


$   (40,056)


$    36,446


$    12,217


$    53,613












Net (loss)/income per share:










Basic                                                      

$     (1.12)


$      1.13


$      0.36


$      1.65


Diluted                                                     

$     (1.12)


$      1.07


$      0.33


$      1.58












Shares used in computing net (loss)/income per share:










Basic                                                          

35,685


32,234


34,212


32,552


Diluted                                                      

35,685


34,135


36,532


33,843












 

SYNAPTICS INCORPORATED

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)
















Three Months Ended


Nine Months Ended





March 31,


March 31,





2014


2013


2014


2013












GAAP gross margin


$  92,430


$  81,083


$ 296,254


$ 210,683


Acquisition related costs


2,378


-


4,548


-


Share-based compensation


328


249


844


690

Non-GAAP gross margin


$  95,136


$  81,332


$ 301,646


$ 211,373























GAAP gross margin - percentage of revenue


45.2%


49.6%


46.8%


48.6%


Share-based compensation - percentage of revenue


1.3%


0.2%


0.9%


0.2%

Non-GAAP gross margin - percentage of revenue


46.6%


49.8%


47.7%


48.8%























GAAP research and development expense


$  49,412


$  36,740


$ 135,785


$ 103,799


Share-based compensation


(4,951)


(3,993)


(13,119)


(11,783)

Non-GAAP research and development expense


$  44,461


$  32,747


$ 122,666


$  92,016























GAAP selling, general, and administrative expense


$  25,803


$  20,183


$  69,703


$  58,099


Share-based compensation


(3,496)


(3,991)


(9,476)


(12,233)


Transaction costs


-


-


(2,000)


-

Non-GAAP selling, general, and administrative expense


$  22,307


$  16,192


$  58,227


$  45,866























GAAP operating (loss)/income


$ (36,143)


$  23,661


$  33,128


$  46,922


Acquisition related costs


55,736


499


62,186


1,863


Share-based compensation


8,775


8,233


23,439


24,706


Transaction costs


-


-


2,000


-

Non-GAAP operating income


$  28,368


$  32,393


$ 120,753


$  73,491























GAAP net (loss)/income


$ (40,056)


$  36,446


$  12,217


$  53,613


Acquisition related costs


55,736


499


62,186


1,863


Share-based compensation


8,775


8,233


23,439


24,706


Non-cash interest income


(278)


-


(751)


-


Tax adjustments


(434)


(18,168)


3,683


(22,745)

Non-GAAP net income


$  23,743


$  27,010


$ 100,774


$  57,437























GAAP net (loss)/income per share - diluted


$   (1.12)


$    1.07


$    0.33


$    1.58


Acquisition related costs


1.56


0.01


1.76


0.06


Share-based compensation


0.25


0.24


0.64


0.73


Non-cash interest income


(0.01)


-


(0.02)


-


Tax adjustments


(0.01)


(0.53)


0.05


(0.67)


Non-GAAP share adjustment


(0.04)


-


-


-

Non-GAAP net income per share - diluted


$    0.63


0.79


2.76


$    1.70












 

SOURCE Synaptics

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
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...