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Synaptics Reports Results for Fourth Quarter and Fiscal 2015

SAN JOSE, Calif., July 30, 2015 /PRNewswire/ -- Synaptics (NASDAQ: SYNA), a leading developer of human interface solutions, today reported financial results for its fourth quarter and year ended June 30, 2015.

"Synaptics posted a strong fourth quarter and a phenomenal fiscal year as we crossed the $1 billion annual revenue threshold," stated Rick Bergman, President and CEO. "During fiscal 2015 we surpassed the 3 billion milestone for unit shipments of our solutions, more than doubled the revenue contribution from China based mobile customers and also doubled revenue from our fingerprint ID business. We successfully completed and integrated the acquisition of our display driver business, strengthening our competitive position and accelerating our roadmap for touch and display driver integration.

"Our focus remains on growth, and we continue to invest in order to fully capitalize on our key fingerprint ID and touch and display driver integration (TDDI) growth pillars as we march towards becoming a $2 billion annual revenue company. With our continued commitment to growth and innovation, we expect to generate a strong top-line increase in fiscal 2016 of 20 percent to 25 percent, with growth weighted towards the second half of the fiscal year based on our strong product pipeline," concluded Mr. Bergman.

Net revenue for fiscal 2015 reached a record $1.7 billion, an increase of 80 percent over fiscal 2014.  Net income for fiscal 2015 was $112.3 million, or $2.89 per diluted share.

Non-GAAP net income for fiscal 2015 increased 40 percent from the prior year to a record $221.4 million, or $5.69 per diluted share. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)

Net revenue for the fourth quarter of fiscal 2015 grew 52 percent over the comparable quarter last year to a record $478.9 million. Net income for the fourth quarter of fiscal 2015 was $33.3 million, or $0.85 per diluted share.

Non-GAAP net income for the fourth quarter of fiscal 2015 grew 8 percent over the prior year period to $61.2 million, or $1.57 per diluted share.  (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)

Fourth Quarter 2015 Business Metrics

  • Revenue mix from mobile and PC products was approximately 89 percent and 11 percent respectively. Fingerprint ID products have been classified according to type of device.
  • Revenue from mobile products of $426.6 million was up 76 percent year-over-year. Mobile products revenue includes all touchscreen, display driver, and applicable fingerprint ID products.
  • Revenue from PC products totaled $52.3 million, a decrease of 27 percent year-over-year, and includes applicable fingerprint ID products.
  • Cash at June 30, 2015 was $400 million.

Wajid Ali, CFO, added, "Considering our backlog of $159 million entering the typically back-end loaded September quarter, subsequent bookings, customer forecasts and product sell-in and sell-through timing patterns, and the resulting expected product mix, we anticipate revenue to be in the range of $450 to $490 million, an increase of 59 percent to 73 percent over the prior year period. On a sequential basis, this outlook reflects positive trends in our touch and fingerprint products despite typical downward seasonality, offset by product cycle trends in display driver products. We expect the revenue mix from mobile and PC products to be roughly similar to the preceding quarter."

During fiscal 2015, Synaptics repurchased approximately 5 percent of its outstanding shares, similar to levels repurchased during each of the past several years. The company also announced that in July, its board of directors increased and extended the authorization for stock repurchases by $120 million, for a total current authorization of $198 million available through July 2017.

Earnings Call Information
The Synaptics fourth quarter fiscal 2015 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, July 30, 2015, during which the company will provide forward-looking information. To participate on the live call, analysts and investors should dial 888-455-2260 (conference ID: 2011227) 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 Website at www.synaptics.com.

About Synaptics Incorporated
Synaptics is the pioneer and leader of the human interface revolution, bringing innovative and intuitive user experiences to intelligent devices. Synaptics' broad portfolio of touch, display, and biometrics products is built on the company's rich R&D and supply chain capabilities. With solutions designed for mobile, PC and automotive industries, Synaptics combines ease of use, functionality and aesthetics to enable products that help make our digital lives more productive, secure and enjoyable. (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 liability, 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 are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.  Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements may include words such as "expect," "anticipate," "intend," "believe," "estimate," "plan," "target," "strategy," "continue," "may," "will," "should," variations of such words, or other words and terms of similar meaning. All forward-looking statements reflect our best judgment and are based on several factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Such factors include, but are not limited to, the risks as identified in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" sections of our Annual Report on Form 10-K for the fiscal year ended June 28, 2014 and our Quarterly Report on Form 10-Q for the quarter ended September 27, 2014, and other risks as identified from time to time in our Securities and Exchange Commission reports. Forward-looking statements are based on information available to us on the date hereof, and we do not have, and expressly disclaim, any obligation to publicly release any updates or any changes in our expectations, or any change in events, conditions, or circumstances on which any forward-looking statement is based.  Our actual results and the timing of certain events could differ materially from the forward-looking statements. These forward-looking statements do not reflect the potential impact of any mergers, acquisitions, or other business combinations that had not been completed as of the date of this filing.

For more information contact:
Jennifer Jarman
The Blueshirt Group
415-217-5866
jennifer@blueshirtgroup.com

(Tables to Follow)

 

 

SYNAPTICS INCORPORATED

 CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)











June 30,

June 30,

2015

2014



Assets


Current assets:



Cash and cash equivalents                                                                 

$             399,905

$             447,205

Accounts receivables, net of allowances of $2,900 and $883, respectively 

324,634

195,057

Inventories                                                                              

140,170

82,311

Prepaid expenses and other current assets 

47,329

17,858

Total current assets

912,038

742,431



Property and equipment at cost, net

123,445

80,849

Goodwill

215,244

61,030

Purchased intangibles, net

235,386

82,111

Non-current other assets                                                                                 

37,974

53,912

Total assets                                                                              

$          1,524,087

$          1,020,333


Liabilities and stockholders' equity


Current liabilities:




Accounts payable                                                                          

$             188,459

$               97,109

Accrued compensation                                                                      

35,861

30,682

Income taxes payable

34,712

12,538

Acquisition-related liabilities

102,288

57,388

Other accrued liabilities                                                                    

74,130

56,691

Current portion of long-term debt

11,250

-

Total current liabilities                                                                  

446,700

254,408














Long-term debt

231,062

-

Acquisition-related liabilities

-

52,734

Deferred tax liability

33,240

-

Other liabilities                                                                            

15,458

12,034






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;  





58,249,107 and 55,911,513 shares issued, and 37,529,608 and 





36,863,802 shares outstanding, respectively

58

56

Additional paid in capital

846,403

740,282

Less: 20,719,499 and 19,047,711 treasury shares, respectively, at cost

(651,705)

(530,422)

Accumulated other comprehensive income

7,873

8,560

Retained earnings

594,998

482,681

Total stockholders' equity                                                                

797,627

701,157

Total liabilities and stockholders' equity                                              

$          1,524,087

$          1,020,333

 

SYNAPTICS INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)













Three Months Ended

Twelve Months Ended


June 30,

June 30,


2015

2014

2015

2014









Net revenue 

$         478,927

$         314,898

$         1,702,971

$        947,539

Acquisition and integration related costs (1)

14,314

2,378

73,788

6,926

Cost of revenue                             

297,346

172,694

1,050,551

504,533

Gross margin            

167,267

139,826

578,632

436,080

Operating expenses








Research and development               

79,690

56,896

293,157

192,681

Selling, general, and administrative

39,359

30,180

143,286

100,005

Acquisition related costs (2)

4,155

13,392

(4,579)

70,908

Foreign currency adjustment (3)

-

-

(15,395)

-

Total operating expenses

123,204

100,468

416,469

363,594









Operating income

44,063

39,358

162,163

72,486

Interest and other income, net

405

560

1,875

1,982

Interest expense

(1,303)

-

(3,832)

(9)

Income before provision for income taxes

43,165

39,918

160,206

74,459

Provision for income taxes 

9,889

5,446

47,889

27,770

Net income

$           33,276

$           34,472

$            112,317

$          46,689









Net income per share:








Basic                  

$               0.90

$               0.95

$                  3.04

$              1.34

Diluted 

$               0.85

$               0.89

$                  2.89

$              1.26









Shares used in computing net income per share:








Basic

37,156

36,411

36,918

34,761

Diluted

38,971

38,817

38,889

37,105





















(1)

These acquisition and integration related costs consist primarily of amortization associated with certain acquired intangible assets and integration costs associated with acquisitions.

(2)

These acquisition related costs consist primarily of changes in contingent consideration and amortization associated with certain acquired intangible assets.

(3)

These foreign currency adjustments include currency remeasurement adjustments related to our acquisition of RSP.

 

 

SYNAPTICS INCORPORATED

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

(In thousands, except per share data)

(Unaudited)













Three Months Ended

Twelve Months Ended


June 30,

June 30,


2015

2014

2015

2014









GAAP gross margin

$        167,267

$         139,826

$        578,632

$         436,080

Acquisition and integration related costs

14,314

2,378

74,056

6,926

Share-based compensation

367

298

1,374

1,142

Non-GAAP gross margin

$        181,948

$         142,502

$        654,062

$         444,148




















GAAP gross margin - percentage of revenue

34.9%

44.4%

34.0%

46.0%

Acquisition and integration related costs - percentage of revenue

3.0%

0.8%

4.3%

0.7%

Share-based compensation - percentage of revenue

0.1%

0.1%

0.1%

0.2%

Non-GAAP gross margin - percentage of revenue

38.0%

45.3%

38.4%

46.9%




















GAAP research and development expense

$          79,690

$           56,896

$        293,157

$         192,681

Acquisition and integration related costs

-

-

(1,731)

-

Share-based compensation

(6,712)

(5,336)

(24,518)

(18,455)

Non-GAAP research and development expense

$          72,978

$           51,560

$        266,908

$         174,226




















GAAP selling, general, and administrative expense

$          39,359

$           30,180

$        143,286

$         100,005

Acquisition and integration related costs

-

(3,639)

(7,508)

(5,761)

Share-based compensation

(5,153)

(3,788)

(18,177)

(13,264)

Non-GAAP selling, general, and administrative expense

$          34,206

$           22,753

$        117,601

$           80,980




















GAAP operating income

$          44,063

$           39,358

$        162,163

$           72,486

Acquisition and integration related costs

18,469

19,409

78,716

83,595

Share-based compensation

12,232

9,422

44,069

32,861

Foreign currency adjustment 

-

-

(15,395)

-

Non-GAAP operating income

$          74,764

$           68,189

$        269,553

$         188,942




















GAAP net income

$          33,276

$           34,472

$        112,317

$           46,689

Acquisition and integration related costs

18,469

19,409

78,716

83,595

Share-based compensation

12,232

9,422

44,069

32,861

Other non-cash items, net

(158)

(307)

(880)

(1,058)

Tax adjustments

(2,642)

(6,189)

2,547

(4,506)

Foreign currency adjustments

-

-

(15,395)

-

Non-GAAP net income

$          61,177

$           56,807

$        221,374

$         157,581




















GAAP net income per share - diluted

$              0.85

$               0.89

$              2.89

$               1.26

Acquisition and integration related costs

0.47

0.50

2.02

2.25

Share-based compensation

0.31

0.24

1.13

0.89

Other non-cash items, net

-

(0.01)

(0.02)

(0.03)

Tax adjustments

(0.06)

(0.16)

0.07

(0.12)

Foreign currency adjustments

-

-

(0.40)

-

Non-GAAP net income per share - diluted

$              1.57

$               1.46

$              5.69

$               4.25

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/synaptics-reports-results-for-fourth-quarter-and-fiscal-2015-300121462.html

SOURCE Synaptics

News Provided by Acquire Media

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This website contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements may include words such as "expect," "anticipate," "intend," "believe," "estimate," "plan," "target," "strategy," "continue," "may," "will," "should," variations of such words, or other words and terms of similar meaning. All forward-looking statements reflect our best judgment and are based on several factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Such factors include, but are not limited to, the risks as identified in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" sections of our Annual Report on Form 10-K for our most recent fiscal year, and other risks as identified from time to time in our Securities and Exchange Commission reports. Forward-looking statements are based on information available to us on the date hereof, and we do not have, and expressly disclaim, any obligation to publicly release any updates or any changes in our expectations, or any change in events, conditions, or circumstances on which any forward-looking statement is based. Our actual results and the timing of certain events could differ materially from the forward-looking statements. These forward-looking statements do not reflect the potential impact of any mergers, acquisitions, or other business combinations that had not been completed as of the date of this filing.

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