Synaptics Reports Second Quarter Fiscal 2013 Results - Revenue up 13% sequentially, driven by strength of mobile products - Repurchased 3.5% of shares outstanding PR Newswire SANTA CLARA, Calif., Jan. 24, 2013 SANTA CLARA, Calif., Jan. 24, 2013 /PRNewswire/ -- Synaptics (NASDAQ: SYNA), a leading developer of human interface solutions, today reported financial results for its second quarter ended December 31, 2012. Net revenue for the second quarter of fiscal 2013 was $143.0 million compared with $145.5 million for the comparable quarter last year. Net income for the second quarter of fiscal 2013 was $11.1 million, or $0.33 per diluted share, compared with net income of $17.4 million, or $0.51 per diluted share, for the comparable quarter last year. Non-GAAP net income for the second quarter of fiscal 2013 was $17.7 million, or $0.53 per diluted share, compared with non-GAAP net income of $23.0 million, or $0.68 per diluted share, for the second quarter of fiscal 2012. (See attached table for a reconciliation of GAAP to non-GAAP results.) "Second quarter revenue exceeded the high end of our guidance range, reflecting better than anticipated revenue from mobile phone touchscreen applications, partially offset by lower than expected PC revenue," stated Rick Bergman, President and CEO. "Based on our strong product line-up, Synaptics is executing very well across our key markets, and we believe our ongoing technology roadmap positions us for continued success across future product generations. We look forward to a return to year-over-year revenue growth in the third fiscal quarter." Second Quarter 2013 Business Metrics oRevenue mix from mobile and PC products was approximately 57% and 43%, respectively. oRevenue from mobile products totaled $81.6 million and was up 4% year-over-year. Mobile products revenue includes all touchscreen and video display products. oRevenue from PC products totaled $61.4 million, a decrease of 8% year-over-year. oGross margin was 48.3%, an increase of 110 basis points year-over-year. oNet income reflects additional operating expenses associated with the company's recent acquisitions, as previously indicated. Cash at December 31, 2012 was $292.5 million. Cash flow from operations for the second quarter of fiscal 2013 was $15.3 million. The company used $28.7 million to repurchase 1,155,299 shares of common stock and $5.0 million for a ThinTouch™ initial earn-out payment. Kathy Bayless, CFO, added, "Considering our backlog of approximately $79.0 million, customer forecasts, and the resulting expected product mix, we anticipate revenue to be in the range of $140.0 million to $148.0 million for the March quarter, an increase of 6% to 12% on a year-over-year basis. We expect revenue from mobile products to be the primary growth driver." Earnings Call Information The Synaptics second quarter fiscal 2013 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, January 24, 2013, during which the company will provide forward-looking information. To participate on the live call, analysts and investors should dial 877-941-1427 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 As a leading developer of human interface solutions which enhance the user experience, Synaptics provides the broadest touch solutions portfolio in the industry. The ClearPad™ family supports touchscreen solutions for devices ranging from entry-level mobile phones to flagship premium smartphones, tablets, and notebook PCs. The TouchPad™ family, including ClickPad™ and ForcePad™, is integrated into the majority of today's notebook PCs. Synaptics' wide portfolio also includes ThinTouch, supporting thin and light keyboard solutions, as well as key technologies for next generation touch-enabled video and display applications. (NASDAQ: SYNA) www.synaptics.com Synaptics, ClearPad, TouchPad, ClickPad, ForcePad, ThinTouch, and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners. Use of Non-GAAP Financial Information In evaluating its business, Synaptics considers and uses net income excluding share-based compensation and certain non-cash or non-recurring items as a supplemental measure of operating performance. Net income excluding share-based compensation 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 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 and certain non-cash or non-recurring items. Net income excluding share-based compensation 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 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 belief that based on its strong product line-up it is executing very well across its key markets and that its ongoing technology roadmap positions it for continued success across future product generations; the company's expectation that it will return to year-over-year revenue growth in the third fiscal quarter; and the company's anticipated revenue for the March quarter, including its expectation that revenue from mobile products will be the primary growth driver. 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, 2012. All forward-looking statements are based on information available to Synaptics on the date hereof, and Synaptics assumes no obligation to update such statements. For more information contact: Jennifer Jarman The Blueshirt Group 415-217-5866 firstname.lastname@example.org SYNAPTICS INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) December June 30, 31, 2012 2012 Assets Current assets: Cash and cash $ $ 305,005 equivalents 292,531 Receivables, net of allowances of $567 99,052 104,140 Inventories 32,124 31,667 Prepaid expenses and other current 5,906 5,365 assets Total current assets 429,613 446,177 Property and equipment, net 42,193 24,903 Goodwill 20,695 18,995 Purchased intangibles 13,634 12,800 Non-current auction rate securities 15,009 15,321 Other assets 23,263 23,309 Total assets $ $ 541,505 544,407 Liabilities and stockholders' equity Current liabilities: Accounts $ $ 55,220 payable 53,027 Accrued 15,542 12,642 compensation Income taxes payable 4,829 11,221 Other accrued 33,927 26,515 liabilities Total current liabilities 107,325 105,598 Convertible senior subordinated notes 2,305 2,305 Other liabilities 32,669 36,812 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; 49,039,675 and 48,680,348 shares issued, and 32,015,143 and 32,896,256 shares outstanding, respectively 49 49 Additional paid in capital 489,162 471,569 Less: 17,024,532 and 15,784,092 treasury shares, respectively, at cost (445,165) (413,885) Retained earnings 354,226 337,059 Accumulated other comprehensive income 3,836 1,998 Total stockholders' equity 402,108 396,790 Total liabilities and stockholders' equity $ $ 541,505 544,407 SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Six Months Ended Ended December 31, December 31, 2012 2011 2012 2011 Net revenue $ $ $ $ 143,040 145,470 270,081 278,916 Cost of revenue (1) 74,010 76,747 140,481 148,933 Gross margin 69,030 68,723 129,600 129,983 Operating expenses Research and development (1) 34,257 29,837 67,059 58,063 Selling, general, and administrative (1) 19,008 17,721 37,916 34,430 Acquired intangibles amortization 261 - 501 - Change in contingent consideration 576 - 863 - Total operating expenses 54,102 47,558 106,339 92,493 Operating income 14,928 21,165 23,261 37,490 Interest income 225 251 443 451 Interest expense (5) (5) (9) (9) Impairment (loss)/recovery on investments, net - (7) - 13 Income before income taxes 15,148 21,404 23,695 37,945 Provision for income taxes (2) 4,034 4,021 6,528 7,547 Net income $ $ $ $ 11,114 17,383 17,167 30,398 Net income per share: Basic $ $ $ $ 0.34 0.53 0.52 0.93 Diluted $ $ $ $ 0.33 0.51 0.51 0.89 Shares used in computing net income per share: Basic 32,478 32,569 32,710 32,717 Diluted 33,313 34,005 33,739 33,972 (1) Includes share-based compensation charges of: Cost of revenue $ $ $ $ 198 275 441 590 Research and development 3,879 3,899 7,790 7,440 Selling, general, and administrative 3,929 4,326 8,242 8,636 $ $ $ $ 8,006 8,500 16,473 16,666 (2) Includes tax benefit for share-based compensation charges of: $ $ $ $ 2,179 2,865 4,397 4,880 Non-GAAP net income per share: Basic $ $ $ $ 0.54 0.71 0.93 1.29 Diluted $ $ $ $ 0.53 0.68 0.90 1.24 SYNAPTICS INCORPORATED Reconciliation of Non-GAAP Net Income and Net Income Per Share (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2012 2011 2012 2011 Net income - as reported $ 11,114 $ 17,383 $ 17,167 $ 30,398 Non-GAAP adjustments (net of tax): Net gain on investments - 7 - (13) Acquired intangibles amortization 167 - 321 - Change in contingent consideration 576 - 863 - Share-based compensation 5,827 5,635 12,076 11,786 Net income - non-GAAP $ 17,684 $ 23,025 $ 30,427 $ 42,171 Net income per share - non-GAAP: Basic $ 0.54 $ 0.71 $ 0.93 $ 1.29 Diluted $ 0.53 $ 0.68 $ 0.90 $ 1.24 SOURCE Synaptics Website: http://www.synaptics.com
Synaptics Reports Second Quarter Fiscal 2013 Results
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