|
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
[email protected]
|
|
|
|
|
|
|
|
|
|
|
|
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.
[ Back To TMCnet.com's Homepage ]
|
