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Synaptics Reports Record Revenue in Third Quarter Fiscal 2013



        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

  o Revenue mix from mobile and PC products was approximately 64% and 36%,
    respectively.
  o Revenue 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.
  o Revenue from PC products totaled $58.6 million, a decrease of 9.9%
    year-over-year.
  o Gross 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            
jennifer@blueshirtgroup.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
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