Synaptics Reports Second Quarter Fiscal 2013 Results

             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
jennifer@blueshirtgroup.com



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