• Search

NASDAQ: SYNA

Investor Relations

View printer-friendly version

<<  Back

Synaptics Reports Results for Third Quarter Fiscal 2015

SAN JOSE, Calif., April 23, 2015 /PRNewswire/ -- Synaptics (NASDAQ: SYNA), the leading developer of human interface solutions, today reported financial results for its third quarter ended March 28, 2015. 

Net revenue for the third quarter of fiscal 2015 grew 134% over the comparable quarter last year to $477.6 million. Net income for the third quarter of fiscal 2015 was $31.5 million, or $0.82 per diluted share.  Non-GAAP net income for the third quarter of fiscal 2015 was $63.5 million, or $1.65 per diluted share.  Results for the period reflect consolidated results from the acquisition of Renesas SP Drivers, Inc. (RSP). See attached table for a reconciliation of GAAP to non-GAAP financial measures. 

"Synaptics delivered record financial performance in the third quarter as we continued to execute across our expanding growth opportunities," stated Rick Bergman, President and CEO. "We see strong demand for our broad product portfolio, particularly as the momentum for fingerprint ID as well as touch and display driver integrated (TDDI) solutions continues to build. In addition, we continue to benefit from strength in our display driver business and efforts to expand the customer base and solutions set. We continue to elevate our position as the leading human interface provider and are poised to achieve our robust revenue growth forecast of over 75% as we close out the fiscal year."

Third Quarter 2015 Business Metrics

  • Revenue mix from mobile and PC products was approximately 87% and 13%, respectively. Fingerprint ID products have been classified according to type of device.
  • Revenue from mobile products was up 177% year-over-year to $417.4 million. Mobile products revenue includes all touchscreen, display driver, and applicable fingerprint ID products.
  • Revenue from PC products totaled $60.2 million, an increase of 12% year-over-year, and includes applicable fingerprint ID products.

Cash at March 31, 2015 was $381 million, an increase of $53 million from the prior quarter. The cash balance reflects the payment of $48 million during the quarter for the settlement of the working capital holdback liability related to the RSP acquisition. In the third quarter of fiscal 2015, cash flow from operations was $128 million. Year-to-date, the company has used $111 million to repurchase approximately 1.5 million shares of its common stock, or 4.2% of the total shares outstanding.

Kathy Bayless, CFO, added, "Considering our backlog of $248 million entering the June quarter, customer forecasts and the resulting expected product mix, we anticipate revenue to be in the range of $460 to $500 million, an increase of 46% to 59% over the prior year period. This outlook reflects positive trends on a sequential basis in our touch and fingerprint products, partially offset by product cycle trends in display driver products."

Earnings Call Information
The Synaptics third quarter fiscal 2015 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, April 23, 2015, during which the company will provide forward-looking information. To participate on the live call, analysts and investors should dial 1-888-438-5524 (conference ID: 2556376) 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
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.

(Tables to Follow)

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

 










 CONSOLIDATED BALANCE SHEETS






(In thousands, except share data)






(Unaudited)















March 31,

June 30,



2015

2014






Assets





Current assets:




Cash and cash equivalents                                                                 

$    380,579

$    447,205

Accounts receivables, net of allowances of $1,800 and $883, respectively 

319,567

195,057

Inventories                                                                              

152,261

82,311

Prepaid expenses and other current assets 

27,634

17,858

Total current assets

880,041

742,431






Property and equipment at cost, net

117,692

80,849

Goodwill

215,244

61,030

Purchased intangibles, net

254,357

82,111

Non-current other assets                                                                                 

43,883

53,912

Total assets                                                                              

$  1,511,217

$  1,020,333


Liabilities and stockholders' equity


Current liabilities:



Accounts payable                                                                          

$    182,021

$     97,109

Accrued compensation                                                                      

32,217

30,682

Income taxes payable

34,136

12,538

Acquisition-related liabilities

42,976

57,388

Other accrued liabilities                                                                    

96,908

56,691

Current portion of long-term debt

9,375

-

Total current liabilities                                                                  

397,633

254,408














Long-term debt

234,581

-

Acquisition-related liabilities

72,734

52,734

Deferred tax liability

43,341

-

Other liabilities                                                                            

14,634

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; 57,392,290 and 55,911,513 shares issued, and 36,798,673 and

36,863,802 shares outstanding, respectively

57

56

Additional paid in capital

819,462

740,282

Less: 20,593,617 and 19,047,711 treasury shares, respectively, at cost

(641,022)

(530,422)

Accumulated other comprehensive income

8,075

8,560

Retained earnings

561,722

482,681

Total stockholders' equity                                                                

748,294

701,157

Total liabilities and stockholders' equity                                              

$  1,511,217

$  1,020,333














 

SYNAPTICS INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

March 31,

March 31,

2015

2014

2015 (4)

2014









Net revenue                                                 

$   477,598

$   204,271

$  1,224,044

$   632,641

Acquisition and integration related costs (1)

16,180

2,378

59,742

4,548

Cost of revenue                             

297,073

109,463

752,937

331,839

Gross margin                                                  

164,345

92,430

411,365

296,254

Operating expenses








Research and development               

78,719

49,412

213,467

135,785

Selling, general, and administrative

35,799

25,803

103,866

69,703

Acquisition related costs (2)

(2,026)

53,358

(8,673)

57,638

Foreign currency adjustment (3)

-

-

(15,395)

-

Total operating expenses                                       

112,492

128,573

293,265

263,126









Operating income                                   

51,853

(36,143)

118,100

33,128

Interest and other income, net

349

516

1,470

1,422

Interest expense                                                

(1,317)

-

(2,529)

(9)

Income/(loss) before provision for income taxes                 

50,885

(35,627)

117,041

34,541

Provision for income taxes             

19,407

4,429

38,000

22,324

Net income/(loss)                                       

$    31,478

$   (40,056)

$     79,041

$    12,217









Net income/(loss) per share:








Basic                                                      

$       0.86

$      (1.12)

$       2.15

$      0.36

Diluted                                                     

$       0.82

$      (1.12)

$       2.04

$      0.33









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








Basic                                                          

36,726

35,685

36,839

34,212

Diluted                                                      

38,535

35,685

38,797

36,532

(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.

(4)

Includes retrospective application of measurement period adjustments to amounts provisionally recorded in the quarter ended December 31, 2014 related to our acquisition of RSP in accordance with US GAAP.

 

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,


2015

2014

2015

2014









GAAP gross margin

$ 164,345

$ 92,430

$ 411,365

$ 296,254

Acquisition and integration related costs

16,180

2,378

59,742

4,548

Share-based compensation

369

328

1,007

844

Non-GAAP gross margin

$ 180,894

$ 95,136

$ 472,114

$ 301,646




















GAAP gross margin - percentage of revenue

34.4%

45.2%

33.6%

46.8%

Acquisition and integration related costs - percentage of revenue

3.4%

1.2%

4.9%

0.7%

Share-based compensation - percentage of revenue

0.1%

0.2%

0.1%

0.2%

Non-GAAP gross margin - percentage of revenue

37.9%

46.6%

38.6%

47.7%




















GAAP research and development expense

$ 78,719

$ 49,412

$ 213,467

$ 135,785

Acquisition and integration related costs

-

-

(1,731)

-

Share-based compensation

(6,455)

(4,951)

(17,806)

(13,119)

Non-GAAP research and development expense

$ 72,264

$ 44,461

$ 193,930

$ 122,666




















GAAP selling, general, and administrative expense

$ 35,799

$ 25,803

$ 103,866

$ 69,703

Acquisition and integration related costs

-

-

(7,447)

(2,000)

Share-based compensation

(4,790)

(3,496)

(13,024)

(9,476)

Non-GAAP selling, general, and administrative expense

$ 31,009

$ 22,307

$ 83,395

$ 58,227




















GAAP operating income

$ 51,853

$ (36,143)

$ 118,100

$ 33,128

Acquisition and integration related costs

14,154

55,736

60,247

64,186

Share-based compensation

11,614

8,775

31,837

23,439

Foreign currency adjustment


-

-

(15,395)

-

Non-GAAP operating income

$ 77,621

$ 28,368

$ 194,789

$ 120,753




















GAAP net income

$ 31,478

$ (40,056)

$ 79,041

$ 12,217

Acquisition and integration related costs

14,154

55,736

60,247

64,186

Share-based compensation

11,614

8,775

31,837

23,439

Foreign currency adjustments

-

-

(15,395)

-

Other non-cash items, net

(126)

(278)

(722)

(751)

Tax adjustments

6,398

(434)

5,189

1,683

Non-GAAP net income

$ 63,518

$ 23,743

$ 160,197

$ 100,774




















GAAP net income per share - diluted

$ 0.82

$ (1.12)

$ 2.04

$ 0.33

Acquisition and integration related costs

0.37

1.56

1.55

1.76

Share-based compensation

0.30

0.25

0.82

0.64

Foreign currency adjustments

-

-

(0.40)

-

Other non-cash items, net

-

(0.01)

(0.02)

(0.02)

Tax adjustments

0.16

(0.01)

0.14

0.05

Non-GAAP share adjustment

-

(0.04)

-

-

Non-GAAP net income per share - diluted

$ 1.65

$ 0.63

$ 4.13

$ 2.76

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/synaptics-reports-results-for-third-quarter-fiscal-2015-300071325.html

SOURCE Synaptics Inc.

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.

Shareholder Tools

Email Alerts RSS News Feeds Print Email Page