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Synaptics Reports Results for Fourth Quarter and Fiscal 2016
Net revenue for fiscal 2016 totaled
Net revenue for the fourth quarter of fiscal 2016 declined 32 percent from the comparable quarter last year to
"Fourth quarter results were generally as anticipated, culminating in fiscal 2016 revenue that was similar to last year, as growth from our TDDI and fingerprint authentication offerings was offset by a challenging market for high-end smartphones and weakness in the PC market," stated
Fourth Quarter 2016 Business Metrics
- Revenue mix from mobile and PC products was approximately 88 percent and 12 percent respectively. Fingerprint ID products have been classified according to type of device.
- Revenue from mobile products of
$285.4 million was down 33 percent year-over-year. Mobile products revenue includes all touchscreen, display driver, and applicable fingerprint ID products. - Revenue from PC products totaled
$38.5 million , a decrease of 27 percent year-over-year, and includes applicable fingerprint ID products.
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Use of Non-GAAP Financial Information
In evaluating its business,
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
For more information contact:
415-217-5866
jennifer@blueshirtgroup.com
(Tables to Follow)
SYNAPTICS INCORPORATED | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In millions except share data) | ||||||||||||
(Unaudited) | ||||||||||||
2016 | 2015 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 352.2 | $ | 399.9 | ||||||||
Accounts receivables, net of allowances of | 252.6 | 324.6 | ||||||||||
Inventories | 146.4 | 140.2 | ||||||||||
Prepaid expenses and other current assets | 28.9 | 51.3 | ||||||||||
Total current assets | 780.1 | 916.0 | ||||||||||
Property and equipment at cost, net | 112.7 | 123.4 | ||||||||||
Goodwill | 206.8 | 206.8 | ||||||||||
Purchased intangibles, net | 160.3 | 235.4 | ||||||||||
Non-current other assets | 40.3 | 37.8 | ||||||||||
Total assets | $ | 1,300.2 | $ | 1,519.4 | ||||||||
Liabilities and stockholders' equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 172.8 | $ | 188.5 | ||||||||
Accrued compensation | 39.9 | 35.9 | ||||||||||
Income taxes payable | 11.5 | 34.7 | ||||||||||
Acquisition-related liabilities | 25.5 | 102.2 | ||||||||||
Other accrued liabilities | 82.3 | 74.1 | ||||||||||
Current portion of long-term debt | 15.0 | 11.3 | ||||||||||
Total current liabilities | 347.0 | 446.7 | ||||||||||
Long-term debt | 220.5 | 231.1 | ||||||||||
Non-current portion of acquisition-related liabilities | 6.2 | - | ||||||||||
Deferred tax liabilities | 9.0 | 33.9 | ||||||||||
Other long-term liabilities | 12.5 | 14.6 | ||||||||||
Total liabilities | 595.2 | 726.3 | ||||||||||
Commitments and contingencies | ||||||||||||
Stockholders' equity: | ||||||||||||
Preferred stock; | ||||||||||||
no shares issued and outstanding | - | - | ||||||||||
Common stock; | ||||||||||||
59,532,148 and 58,249,107 shares issued, and 35,212,141 and | ||||||||||||
37,529,608 shares outstanding, respectively | 0.1 | 0.1 | ||||||||||
Additional paid in capital | 928.6 | 843.8 | ||||||||||
Less: 24,320,007 and 20,719,499 treasury shares, respectively, at cost | (892.3 | ) | (651.7 | ) | ||||||||
Accumulated other comprehensive income | 3.3 | 7.8 | ||||||||||
Retained earnings | 665.3 | 593.1 | ||||||||||
Total stockholders' equity | 705.0 | 793.1 | ||||||||||
Total liabilities and stockholders' equity | $ | 1,300.2 | $ | 1,519.4 | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Net revenue | $ | 323.9 | $ | 478.9 | $ | 1,666.9 | $ | 1,703.0 | |||||||||||||
Acquisition and integration related costs (1) | 12.8 | 14.3 | 54.4 | 73.8 | |||||||||||||||||
Cost of revenue | 203.0 | 297.3 | 1,031.0 | 1,050.5 | |||||||||||||||||
Gross margin | 108.1 | 167.3 | 581.5 | 578.7 | |||||||||||||||||
Operating expenses | |||||||||||||||||||||
Research and development | 78.2 | 79.7 | 311.2 | 293.2 | |||||||||||||||||
Selling, general, and administrative | 36.9 | 39.4 | 161.7 | 143.3 | |||||||||||||||||
Impairment of intangible assets | 6.7 | - | 6.7 | - | |||||||||||||||||
Acquisition related costs, net (2) | 4.6 | 4.2 | 18.1 | (4.6 | ) | ||||||||||||||||
Foreign currency adjustment (3) | - | - | - | (15.4 | ) | ||||||||||||||||
Restructuring costs (4) | 6.7 | - | 8.6 | - | |||||||||||||||||
Total operating expenses | 133.1 | 123.3 | 506.3 | 416.5 | |||||||||||||||||
Operating income | (25.0 | ) | 44.0 | 75.2 | 162.2 | ||||||||||||||||
Interest and other income/(expense), net | 1.2 | (0.9 | ) | 0.4 | (2.0 | ) | |||||||||||||||
Income before provision for income taxes | (23.8 | ) | 43.1 | 75.6 | 160.2 | ||||||||||||||||
Provision for income taxes | (16.7 | ) | 11.8 | 3.4 | 49.8 | ||||||||||||||||
Net income | $ | (7.1 | ) | $ | 31.3 | $ | 72.2 | $ | 110.4 | ||||||||||||
Net income per share: | |||||||||||||||||||||
Basic | $ | (0.19 | ) | $ | 0.84 | $ | 1.97 | $ | 2.99 | ||||||||||||
Diluted | $ | (0.19 | ) | $ | 0.80 | $ | 1.91 | $ | 2.84 | ||||||||||||
Shares used in computing net income per share: | |||||||||||||||||||||
Basic | 36.6 | 37.2 | 36.6 | 36.9 | |||||||||||||||||
Diluted | 36.6 | 39.0 | 37.9 | 38.9 | |||||||||||||||||
(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, net 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. | |||||||||||||||||||||
(4 | ) | Restructuring costs primarily include severance costs associated with an operational restructuring. | |||||||||||||||||||
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures | |||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
GAAP gross margin | $ | 108.1 | $ | 167.3 | $ | 581.5 | $ | 578.7 | |||||||||||
Acquisition and integration related costs | 12.8 | 14.3 | 54.4 | 74.1 | |||||||||||||||
Share-based compensation | 0.5 | 0.4 | 1.8 | 1.4 | |||||||||||||||
Non-GAAP gross margin | $ | 121.4 | $ | 182.0 | $ | 637.7 | $ | 654.2 | |||||||||||
GAAP gross margin - percentage of revenue | 33.4 | % | 34.9 | % | 34.9 | % | 34.0 | % | |||||||||||
Acquisition and integration related costs - percentage of revenue | 3.9 | % | 3.0 | % | 3.3 | % | 4.3 | % | |||||||||||
Share-based compensation - percentage of revenue | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||
Non-GAAP gross margin - percentage of revenue | 37.5 | % | 38.0 | % | 38.3 | % | 38.4 | % | |||||||||||
GAAP research and development expense | $ | 78.2 | $ | 79.7 | $ | 311.2 | $ | 293.2 | |||||||||||
Acquisition and integration related costs | - | - | - | (1.7 | ) | ||||||||||||||
Share-based compensation | (8.5 | ) | (6.7 | ) | (30.6 | ) | (24.5 | ) | |||||||||||
Non-GAAP research and development expense | $ | 69.7 | $ | 73.0 | $ | 280.6 | $ | 267.0 | |||||||||||
GAAP selling, general, and administrative expense | $ | 36.9 | $ | 39.4 | $ | 161.7 | $ | 143.3 | |||||||||||
Acquisition and integration related costs | - | - | - | (7.4 | ) | ||||||||||||||
Share-based compensation | (6.9 | ) | (5.2 | ) | (24.4 | ) | (18.2 | ) | |||||||||||
Non-GAAP selling, general, and administrative expense | $ | 30.0 | $ | 34.2 | $ | 137.3 | $ | 117.7 | |||||||||||
GAAP operating income | $ | (25.0 | ) | $ | 44.0 | $ | 75.2 | $ | 162.2 | ||||||||||
Impairment of intangible assets | 6.7 | - | 6.7 | - | |||||||||||||||
Acquisition and integration related costs | 17.4 | 18.5 | 72.5 | 78.6 | |||||||||||||||
Share-based compensation | 15.9 | 12.3 | 56.8 | 44.1 | |||||||||||||||
Foreign currency adjustments | - | - | - | (15.4 | ) | ||||||||||||||
Restructuring costs | 6.7 | - | 8.6 | - | |||||||||||||||
Non-GAAP operating income | $ | 21.7 | $ | 74.8 | $ | 219.8 | $ | 269.5 | |||||||||||
GAAP net income | $ | (7.1 | ) | $ | 31.3 | $ | 72.2 | $ | 110.4 | ||||||||||
Impairment of intangible assets | 6.7 | - | 6.7 | - | |||||||||||||||
Acquisition and integration related costs | 17.4 | 18.5 | 72.5 | 78.6 | |||||||||||||||
Share-based compensation | 15.9 | 12.3 | 56.8 | 44.1 | |||||||||||||||
Foreign currency adjustments | - | - | - | (15.4 | ) | ||||||||||||||
Restructuring costs | 6.7 | - | 8.6 | - | |||||||||||||||
Other non-cash items, net | (2.0 | ) | (0.2 | ) | (2.7 | ) | (0.9 | ) | |||||||||||
Tax adjustments | (20.3 | ) | (0.7 | ) | (33.6 | ) | 4.5 | ||||||||||||
Non-GAAP net income | $ | 17.3 | $ | 61.2 | $ | 180.5 | $ | 221.3 | |||||||||||
GAAP net income per share - diluted | $ | (0.19 | ) | $ | 0.80 | $ | 1.91 | $ | 2.84 | ||||||||||
Impairment of intangible assets | 0.18 | - | 0.18 | - | |||||||||||||||
Acquisition and integration related costs | 0.48 | 0.47 | 1.91 | 2.02 | |||||||||||||||
Share-based compensation | 0.43 | 0.31 | 1.50 | 1.13 | |||||||||||||||
Foreign currency adjustments | - | - | - | (0.40 | ) | ||||||||||||||
Restructuring costs | 0.18 | - | 0.23 | - | |||||||||||||||
Other non-cash items, net | (0.05 | ) | - | (0.07 | ) | (0.02 | ) | ||||||||||||
Tax adjustments | (0.55 | ) | (0.01 | ) | (0.90 | ) | 0.12 | ||||||||||||
Non-GAAP share adjustment | (0.02 | ) | - | - | - | ||||||||||||||
Non-GAAP net income per share - diluted | $ | 0.46 | $ | 1.57 | $ | 4.76 | $ | 5.69 | |||||||||||
CONDENSED CONSOLIDATED CASH FlOWS | |||||||||
(In millions) | |||||||||
(Unaudited) | |||||||||
Twelve Months Ended | |||||||||
2016 | 2015 | ||||||||
Net Income | $ | 72.2 | $ | 110.4 | |||||
Non-cash operating items | 149.7 | 104.6 | |||||||
Changes in working capital | 30.0 | (10.9 | ) | ||||||
Provided by operations | 251.9 | 204.1 | |||||||
Acquisition of businesses | - | (294.3 | ) | ||||||
Fixed asset & intangible asset purchases | (33.2 | ) | (51.9 | ) | |||||
Proceeds from sales and maturities of investments | 6.6 | 4.9 | |||||||
Used in investing | (26.6 | ) | (341.3 | ) | |||||
(240.6 | ) | (121.3 | ) | ||||||
Equity compensation, net | 28.3 | 45.9 | |||||||
Acquisition related | (56.2 | ) | (72.2 | ) | |||||
Debt related, net | (7.9 | ) | 241.2 | ||||||
Provide by/(used in) financing | (276.4 | ) | 93.6 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 3.4 | (3.7 | ) | ||||||
Net change in cash and cash equivalents | (47.7 | ) | (47.3 | ) | |||||
Cash and cash equivalents beginning of period | 399.9 | 447.2 | |||||||
Cash and cash equivalents end of period | $ | 352.2 | $ | 399.9 | |||||
Cash paid for interest | $ | 5.0 | $ | 3.1 | |||||
Cash paid for taxes, net of refunds | $ | 28.9 | $ | 82.7 | |||||
Source:
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