Synaptics Reports Record Revenue in Third Quarter Fiscal 2013 - Revenue up 24% year-over-year, driven by strength of mobile smartphone products PR Newswire SANTA CLARA, Calif., April 25, 2013 SANTA CLARA, Calif., April 25, 2013 /PRNewswire/ -- Synaptics (NASDAQ: SYNA), a leading developer of human interface solutions, today reported financial results for its third quarter ended March 31, 2013. Net revenue for the third quarter of fiscal 2013 was $163.3 million, an increase of 24% compared with $131.7 million for the comparable quarter last year. Net income for the third quarter of fiscal 2013 was $36.4 million, or $1.07 per diluted share, and reflects the benefit of a non-recurring, non-cash tax item of $15.8 million, compared with net income of $11.4 million, or $0.33 per diluted share, for the comparable quarter last year. Non-GAAP net income for the third quarter of fiscal 2013 was $27.0 million, or $0.79 per diluted share, compared with non-GAAP net income of $17.9 million, or $0.51 per diluted share, for the third quarter of fiscal 2012. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.) "We are extremely pleased to report record revenue during the third quarter," stated Rick Bergman, President and CEO. "The continued adoption of our solutions by a broad base of key customers is a testament to the strength of our technology leadership and has enabled us to diversify our business through increased penetration of the rapidly growing mobile touchscreen market. As the market leader in capacitive touch solutions, we believe Synaptics is well-positioned to drive long-term, profitable growth." Third Quarter 2013 Business Metrics oRevenue mix from mobile and PC products was approximately 64% and 36%, respectively. oRevenue from mobile products totaled $104.7 million and was up 57.2% year-over-year. Mobile products revenue includes all touchscreen and video display products. oRevenue from PC products totaled $58.6 million, a decrease of 9.9% year-over-year. oGross margin was 49.6%, an increase of 240 basis points year-over-year. Cash at March 31, 2012 was $315.5 million. Cash flow from operations for the third quarter of fiscal 2013 was $24.7 million. Kathy Bayless, CFO, added, "Considering our backlog of approximately $124.0 million, customer forecasts, and the resulting expected product mix, we anticipate revenue to be in the range of $190.0 million to $205.0 million for the June quarter, an increase of 38% to 49% on a year-over-year basis. Our strong June quarter backlog and outlook reflects a steep ramp of new designs across multiple mobile customers." Earnings Call Information The Synaptics third quarter fiscal 2013 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, April 25, 2013, during which the company will provide forward-looking information. To participate on the live call, analysts and investors should dial 877-941-2068 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 the continued adoption of its solutions by a broad base of key customers is a testament to the strength of its technology leadership and has enabled it to diversify its business through increased penetration of the rapidly growing mobile touchscreen market; the company's belief that it is the market leader in capacitive touch solutions and that it is well positioned to drive long-term, profitable growth; and the company's anticipated revenue for the June quarter, including its expectation that the June quarter outlook reflects a steep ramp of new designs across multiple mobile customers. 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 email@example.com (Tables to Follow) SYNAPTICS INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) March 31, June 30, 2013 2012 Assets Current assets: Cash and cash $ 315,513 $ 305,005 equivalents Accounts receivables, net of allowances of $567 106,700 104,140 Inventories 43,911 31,667 Prepaid expenses and other current 4,873 5,365 assets Total current assets 470,997 446,177 Property and equipment at cost, 47,988 24,903 net Goodwill 20,695 18,995 Purchased intangibles 13,372 12,800 Non-current auction rate securities 15,801 15,321 Other assets 27,939 23,309 Total assets $ 596,792 $ 541,505 Liabilities and stockholders' equity Current liabilities: Accounts $ 60,097 $ 55,220 payable Accrued 16,321 12,642 compensation Income taxes payable 11,512 11,221 Other accrued 34,365 26,515 liabilities Total current liabilities 122,295 105,598 Notes payable 2,305 2,305 Other liabilities 17,518 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; 49,446,155 and 48,680,348 shares issued, and 32,421,623 and 49 49 32,896,256 shares outstanding, respectively Additional paid in capital 504,440 471,569 Less: 17,024,532 and 15,784,092 treasury shares, respectively, at cost (445,165) (413,885) Accumulated other comprehensive income 4,678 1,998 Retained earnings 390,672 337,059 Total stockholders' equity 454,674 396,790 Total liabilities and stockholders' equity $ 596,792 $ 541,505 SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Nine Months Ended Ended March 31, March 31, 2013 2012 2013 2012 Net revenue $ $ $ $ 163,324 131,705 433,405 410,621 Cost of revenue 82,241 69,525 222,722 218,458 Gross margin 81,083 62,180 210,683 192,163 Operating expenses Research and development 36,740 29,415 103,799 87,478 Selling, general, and administrative 20,183 18,031 58,099 52,461 Acquired intangibles amortization 262 - 763 - Change in contingent consideration 237 - 1,100 - Total operating expenses 57,422 47,446 163,761 139,939 Operating income 23,661 14,734 46,922 52,224 Interest income 197 231 640 682 Interest expense (4) (4) (13) (13) Impairment recovery on investments - 46 - 59 Income before (benefit)/provision for income taxes 23,854 15,007 47,549 52,952 (Benefit)/provision for income taxes (12,592) 3,561 (6,064) 11,108 Net income $ $ $ $ 36,446 11,446 53,613 41,844 Net income per share: Basic $ $ $ $ 1.13 0.34 1.65 1.27 Diluted $ $ $ $ 1.07 0.33 1.58 1.22 Shares used in computing net income per share: Basic 32,234 33,389 32,552 32,935 Diluted 34,135 35,179 33,843 34,374 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, 2013 2012 2013 2012 GAAP gross margin $ 81,083 $ 62,180 $ 210,683 $ 192,163 Share-based compensation 249 313 690 903 Non-GAAP gross margin $ 81,332 $ 62,493 $ 211,373 $ 193,066 GAAP gross margin - percentage of 49.6% 47.2% 48.6% 46.8% revenue Share-based compensation - 0.2% 0.2% 0.2% 0.2% percentage of revenue Non-GAAP gross margin - percentage 49.8% 47.4% 48.8% 47.0% of revenue GAAP research and development $ 36,740 $ 29,415 $ 103,799 $ 87,478 expense Share-based compensation (3,993) (3,769) (11,783) (11,209) Non-GAAP research and development $ 32,747 $ 25,646 $ 92,016 $ 76,269 expense GAAP selling, general, and $ 20,183 $ 18,031 $ 58,099 $ 52,461 administrative expense Share-based compensation (3,991) (4,915) (12,233) (13,551) Non-GAAP selling, general, and $ 16,192 $ 13,116 $ 45,866 $ 38,910 administrative expense GAAP operating income $ 23,661 $ 14,734 $ 46,922 $ 52,224 Acquired intangibles amortization 262 - 763 - Change in contingent consideration 237 - 1,100 - Share-based compensation 8,233 8,997 24,706 25,663 Non-GAAP operating income $ 32,393 $ 23,731 $ 73,491 $ 77,887 GAAP net income $ 36,446 $ 11,446 $ 53,613 $ 41,844 Impairment recovery on investments - (46) - (59) Acquired intangibles amortization 262 - 763 - Change in contingent consideration 237 - 1,100 - Share-based compensation 8,233 8,997 24,706 25,663 Tax adjustments (18,168) (2,539) (22,745) (7,419) Non-GAAP net income $ 27,010 $ 17,858 $ 57,437 $ 60,029 GAAP net income per share - diluted $ 1.07 $ 0.33 $ 1.58 $ 1.22 Impairment recovery on investments - - - - Acquired intangibles amortization 0.01 - 0.02 - Change in contingent consideration 0.01 - 0.03 - Share-based compensation 0.24 0.25 0.73 0.75 Tax adjustments (0.54) (0.07) (0.66) (0.22) Non-GAAP net income per share - $ 0.79 $ 0.51 $ 1.70 $ 1.75 diluted SOURCE Synaptics Website: http://www.synaptics.com
Synaptics Reports Record Revenue in Third Quarter Fiscal 2013
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