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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 21, 2004
SYNAPTICS INCORPORATED
DELAWARE
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000-49602 | 77-0118518 | ||
(State or Other
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(Commission File Number) | (IRS Employer | ||
Jurisdiction of Incorporation)
|
Identification No.) |
2381 BERING DRIVE
SAN JOSE, CALIFORNIA
95131
(408) 434-0110
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Item 2.02. Results of Operations and Financial Condition. | ||||||||
| Item 9.01. Financial Statements and Exhibits. | ||||||||
| SIGNATURES | ||||||||
| EXHIBIT INDEX | ||||||||
| Exhibit 99.1 | ||||||||
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Item 2.02. Results of Operations and Financial Condition.
The registrant is furnishing this Report on Form 8-K in connection with the disclosure of information, in the form of the textual information from a press release released on October 21, 2004.
The information in this Report on Form 8-K (including the exhibit) is furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.
The registrant does not have, and expressly disclaims, any obligation to release publicly any updates or any changes in the registrant’s expectations or any change in events, conditions, or circumstances on which any forward-looking statement is based.
The text included with this Report is available on the registrant’s website located at www.synaptics.com, although the registrant reserves the right to discontinue that availability at any time.
Item 9.01. Financial Statements and Exhibits.
(a)
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Financial Statements of Business Acquired. | |
| Not applicable. | ||
(b)
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Pro Forma Financial Information. | |
| Not applicable. | ||
(c)
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Exhibits. |
| Exhibit | ||
| Number |
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99.1
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Press release from Synaptics Incorporated, dated October 21, 2004, entitled “Synaptics Reports Record First Quarter Results” |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SYNAPTICS INCORPORATED |
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| Date: October 21, 2004 | By: | /s/ Russell J. Knittel | ||
| Russell J. Knittel | ||||
| Senior Vice President, Chief Financial Officer, Chief Administrative Officer, and Secretary |
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EXHIBIT INDEX
99.1
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Press release from Synaptics Incorporated, dated October 21, 2004, entitled “Synaptics Reports Record First Quarter Results” |
Exhibit 99.1
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For more information contact: Russ Knittel Synaptics Incorporated 408-434-0110x140 russk@synaptics.com |
Jennifer Jarman The Blueshirt Group 415-217-7722 jennifer@blueshirtgroup.com |
Synaptics Reports Record First Quarter Results
San Jose, CA — October 21, 2004 — Synaptics (Nasdaq: SYNA), a leader in interface solutions for mobile computing, communications, and entertainment devices, today reported financial results for the first fiscal quarter ended September 30, 2004.
Net revenue for the first quarter of fiscal 2005 was $38.1 million, an increase of approximately 29% over the $29.6 million for the first quarter of fiscal 2004. GAAP net income for the first quarter of fiscal 2005 was $4.4 million, or $0.16 per diluted share. This represents an increase of approximately 95% compared with GAAP net income of $2.3 million, or $0.09 per diluted share, for the first quarter of fiscal 2004.
“We achieved sequential revenue and net income growth in the first fiscal quarter of approximately 8% and 19%, respectively,” stated Francis Lee, President and Chief Executive Officer of Synaptics. “Our performance exceeded our expectations and was driven by improved gross margins and continued momentum in the portable digital entertainment market. Revenues from our new market initiatives grew strongly to 33% of total revenues, the highest quarterly revenue to date. Design activity remains robust across our key target markets, and we are excited about our new solutions for desktop PCs and portable consumer devices as we enter the holiday period.”
Russ Knittel, Synaptics’ Chief Financial Officer, added, “Our visibility entering the December quarter is greatly improved, evidenced by our record backlog of more than $39 million. We are projecting significant sequential revenue growth in the range of 35% to 45% in the second fiscal quarter primarily reflecting continued strong demand for portable digital music players. We expect revenues in the March quarter to be in excess of the September quarter levels but down sequentially based on seasonal patterns, the extent of which will depend largely on end device sell-through in the December quarter.”
Earnings Call Information
About Synaptics Incorporated
This press release contains “forward-looking” statements, 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 Synaptics’ revenue expectations and competitive position in both notebook computers and new market initiatives. Synaptics cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained herein. Such factors include, but are not limited to, (a) market demand for Synaptics’ products, (b) market demand for OEMs’ products using Synaptics’ products, (c) the failure of Synaptics’ products and OEMs’ products to deliver commercially acceptable performance, and (d) other risks as identified from time to time in Synaptics’ SEC reports, including Quarterly Reports on Form 10-Q, current reports on Form 8-K, and the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2004. All forward-looking statements are based on information available to Synaptics on the date hereof, and Synaptics assumes no obligation to update such statements.
(Tables to Follow)
SYNAPTICS INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| September 30, | June 30, | |||||||
| 2004 |
2004 |
|||||||
| (Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 59,837 | $ | 59,489 | ||||
Short term investments |
37,463 | 36,810 | ||||||
Accounts receivable, net of allowances of $164 and $130
at September 30, 2004, and June 30, 2004, respectively |
29,462 | 21,875 | ||||||
Inventories |
7,684 | 6,525 | ||||||
Prepaid expenses and other current assets |
3,323 | 3,083 | ||||||
Total current assets |
137,769 | 127,782 | ||||||
Property and equipment, net |
1,853 | 1,829 | ||||||
Goodwill |
1,927 | 1,927 | ||||||
Other assets |
1,040 | 1,115 | ||||||
Total assets |
$ | 142,589 | $ | 132,653 | ||||
Liabilities and Stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 11,325 | $ | 9,220 | ||||
Accrued compensation |
3,143 | 4,594 | ||||||
Accrued warranty |
596 | 704 | ||||||
Income taxes payable |
7,102 | 4,018 | ||||||
Other accrued liabilities |
3,296 | 2,594 | ||||||
Capital leases and equipment financing obligations |
— | 28 | ||||||
Total current liabilities |
25,462 | 21,158 | ||||||
Note payable to a related party |
1,500 | 1,500 | ||||||
Other liabilities |
854 | 855 | ||||||
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; 60,000,000 shares authorized; 25,165,274
and 24,987,398 shares issued and outstanding, respectively |
25 | 25 | ||||||
Additional paid in capital |
89,353 | 88,334 | ||||||
Deferred stock compensation |
(532 | ) | (634 | ) | ||||
Retained earnings |
26,006 | 21,575 | ||||||
Accumulated other comprehensive loss |
(79 | ) | (160 | ) | ||||
Total stockholders’ equity |
114,773 | 109,140 | ||||||
Total liabilities and stockholders’ equity |
$ | 142,589 | $ | 132,653 | ||||
SYNAPTICS INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share and share data)
(unaudited)
| Three Months Ended | Three Months Ended | |||||||
| September 30, | September 30, | |||||||
| 2004 |
2003 |
|||||||
Net revenue |
$ | 38,091 | $ | 29,571 | ||||
Cost of revenue |
20,899 | 17,426 | ||||||
Gross margin |
17,192 | 12,145 | ||||||
Operating
expenses |
||||||||
Research and development |
6,043 | 5,096 | ||||||
Selling, general, and administrative |
3,766 | 3,074 | ||||||
Amortization of deferred stock
compensation |
102 | 137 | ||||||
Restructuring |
— | 432 | ||||||
Total operating expenses |
9,911 | 8,739 | ||||||
Operating income |
7,281 | 3,406 | ||||||
Interest income |
268 | 226 | ||||||
Interest expense |
(26 | ) | (34 | ) | ||||
Income before income taxes |
7,523 | 3,598 | ||||||
Provision for income taxes |
3,092 | 1,331 | ||||||
Net income |
$ | 4,431 | $ | 2,267 | ||||
Net income per share: |
||||||||
Basic |
$ | 0.18 | $ | 0.09 | ||||
Diluted |
$ | 0.16 | $ | 0.09 | ||||
Shares used in computing net income
per share: |
||||||||
Basic |
25,098,648 | 24,013,482 | ||||||
Diluted |
27,693,808 | 26,526,878 | ||||||
Non-GAAP
results (unaudited) |
||||||||
Reported net income |
$ | 4,431 | $ | 2,267 | ||||
Non-GAAP adjustments: |
||||||||
Amortization of deferred stock
compensation |
102 | 137 | ||||||
Restructuring, net of tax |
— | 272 | ||||||
Non-GAAP net income |
$ | 4,533 | $ | 2,676 | ||||
Non-GAAP
earnings per share |
||||||||
Basic |
$ | 0.18 | $ | 0.11 | ||||
Diluted |
$ | 0.16 | $ | 0.10 | ||||
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.