Synaptics is reporting strong results for the first quarter of its fiscal year.
Net revenues came in at $339.9 million. That’s short of the $417.6 million in net revenues Synaptics reported in the corresponding quarter of 2018, but it’s a 15 percent improvement over the company’s last quarter. And Synaptics’ net income for the latest quarter has come in at $4.0 million, an improvement over the $3.8 million in net income reported a year ago.
Some credit for the improvements may be due to Michael Hurlston, who became the company’s new CEO on August 19th. Commenting on the results in a statement, Hurlston explained that they were “stronger than expected as we had a number of successful large OEM customer product launches this quarter including smart home devices leveraging our edge computing SoCs, and new smartphones with both LCD and OLED panels featuring our display and touch IC solutions.”
Hurlston also suggested that he anticipates further improvements down the line. “As we continue our corporate transformation, I am committed to focusing our investments on sustainable franchise solutions that are more defensible with better margins,” he said. “We have a strong foundation in technology and IP at Synaptics, and I am confident that we will become a stronger, more profitable growth company long-term.”
Breaking down the financial picture, Dean Butler, who was just named the company’s new CFO last month, said that Synaptics has “a healthy backlog of $265 million entering the December quarter”, and suggested that “subsequent bookings, customer forecasts and product sell-in and sell-through patterns will result in revenue for the second quarter of fiscal 2020 to be in the range of $345 to $365 million.” Butler added that the revenue mix is expected to comprise about 54 percent from mobile solutions, 25 percent from the IoT sector, and 21 percent from PC products.
November 8, 2019 – by Alex Perala