Synaptics has issued its latest quarterly report, showing steady sequential progress.
For the quarter ended December 29th, 2018 – Q2, in Synaptics’ fiscal year – the company brought in net revenues of $425.5 million, a decrease of one percent year over year, but an increase of two percent with respect to its Q1 results. In terms of net result, however, the company delivered an outstanding year over year performance, with a GAAP net income of $12.8 million, compared to a loss of $82.4 million in the same period a year ago.
As for where those results came from, the mobile sector was Synaptics’ biggest source of business, accounting for 64.5 percent of its revenue mix. Mobile revenues came in at $274.4 million, an increase of four percent sequentially and five percent year over year.
Revenues from its Internet of Things business, meanwhile, were down 18 percent year over year but up one percent sequentially, at $87.2 million; and PC products brought in $63.9 million, an increase of four percent from the same period last year but a sequential drop of seven percent.
In a statement, Synaptics CEO Rick Bergman emphasized the “very strong second quarter results” and the company’s “increased operating leverage”, which he attributed to “smart decisions we have made as we transition to a more diversified company with a broader product line and customer base.” The company also announced the resignation of SVP and CFO Wajid Ali, who has accepted an executive position at another firm, asserting that the move “is not a result of any disagreement with the Company or any matter relating to the Company’s operations, accounting or other policies, or practices.” Ali has been replaced by Kermit Nolan, who will serve as Interim Chief Financial Officer while the company searches for a new CFO.
Looking ahead, Nolan said Synaptics has a backlog of $255 million, which, together with customer forecasts and other factors leads the company to “anticipate revenue for the third quarter of fiscal 2019 to be in the range of $340 to $380 million.”
February 8, 2019 – by Alex Perala