First Albany Cuts Synaptics Rating
Synaptics (SYNA ) sees first quarter revenue down 9%-10% sequentially. First Albany cut its rating on the stock to underperform from neutral.
Analyst Joel Wagonfeld says company management confirmed the cloud hanging over the Synaptics story--it has been designed out of Apple's next-generation iPods. He notes guidance calls for fiscal 2006 first quarter revenue to be down 9%-10% sequentially despite seasonal growth in notebook PCs (which account for over 60% of revenue). This suggests Apple revenues will be down at least 65% sequentially. He notes the second quarter revenue estimate of $40 million to $50 million suggests Apple-related revenue may be zero by then (which would be consistent with Apple's quick end-of-life transitions). The analyst cut hsis $1.20 fiscal 2006 (June) EPS estimate on $244.8 million in revenue to 76 cents on $187.7 million in revenue.