SECURITIES AND EXCHANGE COMMISSION
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
| DELAWARE | 000-49602 | 77-0118518 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
| 3120 SCOTT BLVD. SANTA CLARA, CALIFORNIA |
95054 |
|
| (Address of principal executive offices) | (Zip Code) |
| 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. |
| Exhibit | ||||
| Number | ||||
| 99.1 | Press release from Synaptics Incorporated, dated July 28, 2011,
entitled “Synaptics Reports Record Results for Fiscal 2011” |
|||
| SYNAPTICS INCORPORATED |
||||
| Date: July 28, 2011 | By: | /s/ Kathleen A. Bayless | ||
| Kathleen A. Bayless | ||||
| Chief Financial Officer, Secretary, and Treasurer | ||||
2
| Exhibit | ||||
| Number | Description | |||
| 99.1 | Press release from Synaptics Incorporated, dated July 28, 2011, entitled “Synaptics Reports
Record Results for Fiscal 2011” |
|||
Exhibit 99.1
For more
information contact:
Jennifer Jarman
The Blueshirt Group
415-217-5866
jennifer@blueshirtgroup.com
Synaptics Reports Record Results for Fiscal 2011
| • | Third consecutive year of record revenue, net income, and EPS |
| • | Revenue from mobile touchscreen applications up 72% over prior year |
Santa Clara, CA – July 28, 2011 – Synaptics (NASDAQ: SYNA), a leading developer of human interface solutions for mobile computing, communications, and entertainment devices, today reported financial results for its fourth fiscal quarter and year ended June 30, 2011.
Net revenue for fiscal 2011 reached a record $598.5 million, an increase of 16% over net revenue of $514.9 million for fiscal 2010. Net income for fiscal 2011 of $63.8 million, or $1.80 per diluted share, was also a record and increased 20% over net income of $53.0 million, or $1.50 per diluted share, for fiscal 2010.
Non-GAAP net income for fiscal 2011 of $88.9 million, or $2.51 per diluted share, was also a record. Non-GAAP net income and diluted earnings per share for fiscal 2010 were $80.0 million and $2.26, respectively. (See attached table for a reconciliation of GAAP to non-GAAP results.)
Net revenue for the fourth quarter of fiscal 2011 was $143.4 million compared with $145.8 million for the comparable quarter last year. Net income for the fourth quarter of fiscal 2011 was $13.9 million, or $0.40 per diluted share, compared with net income of $19.3 million, or $0.54 per diluted share, for the comparable quarter last year.
Non-GAAP net income for the fourth quarter of fiscal 2011 was $19.8 million, or $0.57 per diluted share, compared with non-GAAP net income of $24.8 million, or $0.70 per diluted share, for the fourth quarter of fiscal 2010. (See attached table for a reconciliation of GAAP to non-GAAP results.)
“We are pleased to report our third consecutive year of record results,” stated Russ Knittel, Interim President and CEO. “During the year, we made great progress in enhancing and broadening our product portfolio. We are very pleased with our customers’ response, evidenced by increased design activity, and enter fiscal 2012 well positioned to meet customer requirements and the expanding market opportunities.”
For the fourth quarter of fiscal 2011, PC revenue of $77.8 million decreased 8% from the comparable quarter last year and represented 54% of total revenue. Non-PC revenue of $65.6 million represented 46% of total revenue for the fourth quarter of fiscal 2011 and increased 7% over the comparable quarter last year. Non-PC revenue consisted almost entirely of revenue from mobile phone applications, reflecting continued strong unit growth.
Cash at June 30, 2011 totaled $247.2 million. Cash flow from operations for the fourth quarter of fiscal 2011 was $25.2 million, and the company used $30 million to repurchase one million shares of common stock. Cash flow from operations for the fiscal year was $89.7 million, and $70.2 million was used to repurchase 2.5 million shares of common stock.
Kathy Bayless, CFO, added, “Considering our backlog of approximately $76.0 million, customer forecasts, and the resulting expected product mix, we anticipate revenue to be in the range of $128.0 million to $136.0 million for the September quarter. We expect PC revenue to be flat to down on a sequential basis, reflecting the timing difference between our sell-in and OEM sell-through, as well as lower revenue from mobile applications due to changes in product mix.”
Mr. Knittel added, “The ongoing product transition away from integrated touchscreen modules in the first half of fiscal 2012 will be evident in our top line comparisons year-over-year, resulting in lower revenue, but also expanding gross margin. We anticipate returning to double-digit revenue growth in the second half of fiscal 2012, resulting in revenue of flat to slightly up for the fiscal year. We expect gross margins to trend up toward the high end of our historical range, providing operating profit leverage.”
Earnings Call Information
The Synaptics fourth quarter fiscal 2011 teleconference and webcast is
scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, July 28, 2011,
during which the company will provide forward-looking information. To
participate on the live call, analysts and investors should dial 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
Synaptics (NASDAQ: SYNA) is a leading developer of human interface solutions for the mobile computing, communications, and entertainment industries. The company creates interface solutions for a variety of devices including notebook PCs, PC peripherals, tablets, and mobile phones. The TouchPad™, Synaptics’ flagship product, is integrated into a majority of today’s notebook computers. Consumer electronics and computing manufacturers use Synaptics’ solutions to enrich the interaction between humans and intelligent devices through improved usability, functionality, and industrial design. The company is headquartered in Santa Clara, California. www.synaptics.com
Use of Non-GAAP Financial
Information
In evaluating its business, Synaptics considers and uses
net income per share excluding share-based compensation, non-cash interest
charges, and unusual or non-recurring items as a supplemental measure of
operating performance. Net income excluding share-based compensation, non-cash
interest charges, and unusual 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, non-cash interest charges, and
unusual 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, non-cash interest charges, and
unusual or non-recurring items. Net income excluding share-based compensation,
non-cash interest charges, and unusual 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 the company’s assessment of the progress
it has made in enhancing and broadening its product portfolio; the response of
the company’s customers as evidenced by increased design activity; the
company’s belief that it is well positioned to meet customer requirements
and expanding market opportunities; the company’s belief that its ongoing
product transition will be evident in its top line comparisons year-over-year,
but also expanding gross margin; the company’s anticipation of returning to double-digit
revenue growth in the second half of fiscal 2012, resulting in revenue to be
flat to slightly up for the fiscal year with gross margins trending up toward
the high end of its historic range providing operating profit leverage; the
company’s anticipated revenue for the September quarter; the
company’s expectations that PC revenue for its September quarter will be
flat to down from the June quarter due to timing differences; and the company’s expectations that
revenue from mobile applications for its September quarter will be
lower than the June quarter due to changes in product mix. 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) 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 Quarterly Reports on Form 10-Q and the Annual Report on Form 10-K for the fiscal year ended June 30, 2010. 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)
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
| June 30, | June 30, | |||||||
| 2011 | 2010 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 247,153 | $ | 209,858 | ||||
Receivables, net of allowances of $709 and $500, respectively |
93,808 | 101,509 | ||||||
Inventories |
28,850 | 18,667 | ||||||
Prepaid expenses and other current assets |
4,373 | 4,471 | ||||||
Total current assets |
374,184 | 334,505 | ||||||
Property and equipment, net |
26,222 | 25,821 | ||||||
Goodwill |
1,927 | 1,927 | ||||||
Non-current auction rate securities |
25,876 | 28,012 | ||||||
Other assets |
27,992 | 24,414 | ||||||
Total assets |
$ | 456,201 | $ | 414,679 | ||||
Liabilities and stockholders’ equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 44,930 | $ | 65,618 | ||||
Accrued compensation |
13,210 | 11,330 | ||||||
Income taxes payable |
11,808 | 10,061 | ||||||
Other accrued liabilities |
22,813 | 18,962 | ||||||
Total current liabilities |
92,761 | 105,971 | ||||||
Convertible senior subordinated notes |
2,305 | 2,305 | ||||||
Other liabilities |
21,142 | 19,892 | ||||||
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 and 60,000,000 shares authorized; 46,832,208 and 44,891,834 shares issued, and 33,465,732 and 34,020,521 shares outstanding, respectively |
47 | 45 | ||||||
Additional paid in capital |
406,653 | 347,764 | ||||||
Less: 13,366,476 and 10,871,313 treasury shares, respectively, at cost |
(352,142 | ) | (281,932 | ) | ||||
Retained earnings |
282,915 | 219,119 | ||||||
Accumulated other comprehensive income |
2,520 | 1,515 | ||||||
Total stockholders’ equity |
339,993 | 286,511 | ||||||
Total liabilities and stockholders’ equity |
$ | 456,201 | $ | 414,679 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenue |
$ | 143,366 | $ | 145,763 | $ | 598,538 | $ | 514,890 | ||||||||
Cost of revenue (1) |
82,778 | 86,516 | 352,468 | 306,188 | ||||||||||||
Gross margin |
60,588 | 59,247 | 246,070 | 208,702 | ||||||||||||
Operating expenses |
||||||||||||||||
Research and development (1) |
27,487 | 22,923 | 105,003 | 86,552 | ||||||||||||
Selling, general, and administrative (1) |
16,799 | 15,053 | 68,549 | 60,027 | ||||||||||||
Total operating expenses |
44,286 | 37,976 | 173,552 | 146,579 | ||||||||||||
Operating income |
16,302 | 21,271 | 72,518 | 62,123 | ||||||||||||
Interest income |
232 | 205 | 911 | 977 | ||||||||||||
Interest expense |
(4 | ) | (5 | ) | (17 | ) | (2,400 | ) | ||||||||
Impairment (loss)/recovery on investments, net |
39 | — | 59 | (443 | ) | |||||||||||
Income before income taxes |
16,569 | 21,471 | 73,471 | 60,257 | ||||||||||||
Provision for income taxes (2) |
2,646 | 2,143 | 9,675 | 7,292 | ||||||||||||
Net income |
$ | 13,923 | $ | 19,328 | $ | 63,796 | $ | 52,965 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.41 | $ | 0.57 | $ | 1.87 | $ | 1.57 | ||||||||
Diluted |
$ | 0.40 | $ | 0.54 | $ | 1.80 | $ | 1.50 | ||||||||
Shares used in computing net income per share: |
||||||||||||||||
Basic |
33,816 | 33,867 | 34,042 | 33,836 | ||||||||||||
Diluted |
35,011 | 35,514 | 35,454 | 35,423 | ||||||||||||
(1) Includes share-based compensation charges of: |
||||||||||||||||
Cost of revenue |
$ | 262 | $ | 491 | $ | 1,294 | $ | 2,307 | ||||||||
Research and development |
3,694 | 3,558 | 13,823 | 14,330 | ||||||||||||
Selling, general, and administrative |
4,261 | 3,988 | 18,808 | 18,739 | ||||||||||||
| $ | 8,217 | $ | 8,037 | $ | 33,925 | $ | 35,376 | |||||||||
(2) Includes tax benefit for share-based compensation charges of: |
||||||||||||||||
| $ | 2,319 | $ | 2,600 | $ | 9,745 | $ | 9,642 | |||||||||
Non-GAAP net income per share: |
||||||||||||||||
Basic |
$ | 0.58 | $ | 0.73 | $ | 2.61 | $ | 2.36 | ||||||||
Diluted |
$ | 0.57 | $ | 0.70 | $ | 2.51 | $ | 2.26 | ||||||||
Reconciliation of Non-GAAP Net Income and Net Income Per Share
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Reported net income |
$ | 13,923 | $ | 19,328 | $ | 63,796 | $ | 52,965 | ||||||||
Non-GAAP adjustments (net of tax): |
||||||||||||||||
Non-recurring CEO resignation
costs |
— | — | 1,006 | — | ||||||||||||
Net (gain)/loss on investments |
(39 | ) | — | (59 | ) | 443 | ||||||||||
Non-cash interest expense |
— | — | — | 1,192 | ||||||||||||
Discrete tax items |
— | — | — | (370 | ) | |||||||||||
Share-based compensation |
5,898 | 5,437 | 24,180 | 25,734 | ||||||||||||
Non-GAAP basic and diluted net income |
$ | 19,782 | $ | 24,765 | $ | 88,923 | $ | 79,964 | ||||||||
Non-GAAP net income per share: |
||||||||||||||||
Basic |
$ | 0.58 | $ | 0.73 | $ | 2.61 | $ | 2.36 | ||||||||
Diluted |
$ | 0.57 | $ | 0.70 | $ | 2.51 | $ | 2.26 | ||||||||
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.