Exhibit 99.1
| |
|
|
|
|
For more information contact:
Jennifer Jarman
|
|
|
The Blueshirt Group
|
|
|
415-217-7722
|
|
|
jennifer@blueshirtgroup.com |
Synaptics Reports Record Results for Fiscal Fourth Quarter
| |
|
|
Record revenue, up 26% from prior year |
| |
| |
|
|
Record GAAP net income and EPS |
| |
| |
|
|
Strong growth in core notebook and mobile applications, with touchscreen
revenue reaching an all-time high |
Santa Clara, CA July 29, 2010 Synaptics (Nasdaq: SYNA), a leading developer of human
interface solutions for mobile computing, communications, and entertainment devices, today reported
financial results for the fourth quarter and year ended June 30, 2010.
Net revenue of $145.8 million in the fourth quarter of fiscal 2010 was a record, an increase of 26%
over $115.3 million a year ago and an increase of 25% from $116.2 million, sequentially. Net income
in the fourth quarter of fiscal 2010 was a record $19.3 million, or $0.54 per diluted share,
compared with $12.4 million, or $0.34 per diluted share, a year ago and net income of $11.6
million, or $0.33 per diluted share, in the third quarter of fiscal 2010.
Non-GAAP net income in the fourth quarter of fiscal 2010 was $24.8 million, an increase of 44% over
the prior year and an increase of 52% from the previous quarter. Non-GAAP net income per diluted
share was $0.70 in the fourth quarter of fiscal 2010, an increase of 49% over the prior year and an
increase of 52% compared with the previous quarter. (See attached table for a reconciliation of
GAAP to non-GAAP results.)
Synaptics capped off fiscal 2010 with the highest revenue quarter in our history as we experienced
strong growth for both notebook and mobile applications, stated Tom Tiernan, President and CEO.
As the innovation leader in human interface solutions, Synaptics continues to win in the market
based on our unique solutions approach, our portfolio fulfillment model, the strength and
reliability of our technology, and our proven ability to execute.
Mr. Tiernan added, Fiscal 2011 is off to a strong start, and we anticipate setting a new revenue
record in the first quarter. We are pleased to have recently announced compelling new technology
for large touchscreens and remote controls, both of which we expect to be new sources of revenue in
fiscal 2011.
PC revenue of $84.6 million represented 58% of total revenue for the fourth quarter and increased
29% from the comparable quarter last year. Non-PC revenue of $61.2 million increased 23% from the
comparable quarter last year and comprised 42% of total revenue for the quarter. Mobile phone
applications comprised 40% of the Companys revenue, and the number of mobile phone models shipping
with Synaptics touchscreen solutions reached a new high.
Net revenue for fiscal 2010 was $514.9 million, an increase of 9% over $473.3 million for fiscal
2009. Net income for fiscal 2010 was $53.0 million, an increase of 10% over $48.1 million for fiscal 2009. Net income per diluted share was $1.50, an 11% increase
over net income per diluted share of $1.35 for fiscal 2009.
Non-GAAP net income for fiscal 2010 was $80.0 million compared with $77.9 million for fiscal 2009.
Non-GAAP net income per diluted share was $2.26 compared with $2.19 in 2009. (See attached table
for a reconciliation of GAAP to non-GAAP results.)
Kathy Bayless, CFO, added, Considering our backlog of approximately $85 million entering the
September quarter, expected product mix, and customer forecasts, we anticipate revenue in the
quarter of $148 million to $156 million, an increase of 24% to 30% over the comparable quarter last
year. With a strong start to the year and anticipated continued solid demand for our core notebook
and mobile phone applications, we expect our fiscal 2011 revenue growth rate to accelerate over
last year to at least the low double-digits to mid-teens.
Earnings Call Information
The Synaptics fourth quarter fiscal 2010 teleconference and webcast is scheduled to begin at 2:00
p.m., Pacific Time, on Thursday, July 29, 2010, during which the Company will provide
forward-looking information. To participate on the live call, analysts and investors should dial
1-877-941-2068 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
Companys Web site at www.synaptics.com.
About Synaptics Incorporated
Synaptics (NASDAQ: SYNA) is a leading developer of human interface solutions for the mobile
computing, communications, and entertainment industries. The company creates interface solutions
for a variety of devices including notebook PCs, PC peripherals, digital music players, and mobile
phones. The TouchPad, Synaptics flagship product, is integrated into a majority of todays
notebook computers. Consumer electronics and computing manufacturers use Synaptics solutions to
enrich the interaction between humans and intelligent devices through improved usability,
functionality, and industrial design. The company is headquartered in Santa Clara, Calif.
www.synaptics.com
NOTE: Synaptics, TouchPad, and the Synaptics logo are trademarks of Synaptics in the United States
and/or other countries.
Use of Non-GAAP Financial Information
In evaluating its business, Synaptics considers and uses net income per share excluding share-based
compensation and unusual or non-recurring items as a supplemental measure of operating performance.
Net income excluding share-based compensation and unusual or non-recurring items is not a
measurement of the Companys 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 unusual 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 non-cash compensation charges and unusual or non-recurring items. Net income excluding share-based
compensation and unusual or non-recurring items has limitations as an analytical tool and should
not be considered in isolation or as a substitute for the Companys GAAP net income. The principal
limitations of this measure are that it does not reflect the Companys 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 Synaptics view of its position as the innovation leader in human
interface solutions, Synaptics view that it continues to win in the market based on its unique
solutions approach and portfolio fulfillment model, Synaptics view of its strength and reliability
of its technology and its proven ability to execute, Synaptics expectation that its new technology
for large touchscreens and remote controls will result in new sources of revenue in fiscal 2011,
Synaptics anticipated revenue for the quarter ending September 30, 2010 and its anticipation of a
record revenue quarter, Synaptics anticipated continued solid demand for its core notebook and
mobile phone applications and its expectation of accelerated revenue growth in fiscal 2011 over the
prior fiscal year. 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 customers products that
utilize Synaptics product solutions, (e) the development and launch cycles of 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 reports filed with the Securities and Exchange Commission, including Quarterly Reports
on Form 10-Q and the Annual Report on Form 10-K for the fiscal year ended June 30, 2009. All
forward-looking statements are based on information available to Synaptics on the date hereof, and
Synaptics assumes no obligation to update such statements.
(Tables to Follow)
SYNAPTICS INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
June 30, |
|
| |
|
2010 |
|
|
2009 * |
|
| |
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
209,858 |
|
|
$ |
169,036 |
|
Short term investments |
|
|
|
|
|
|
22,934 |
|
|
|
|
|
|
|
|
Total cash, cash equivalents, and short-term investments |
|
|
209,858 |
|
|
|
191,970 |
|
Receivables, net of allowances of $500 and $513, respectively |
|
|
101,509 |
|
|
|
84,739 |
|
Inventories |
|
|
18,667 |
|
|
|
14,950 |
|
Prepaid expenses and other current assets |
|
|
4,471 |
|
|
|
3,094 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
334,505 |
|
|
|
294,753 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
25,821 |
|
|
|
25,431 |
|
Goodwill |
|
|
1,927 |
|
|
|
1,927 |
|
Non-current auction rate securities |
|
|
28,012 |
|
|
|
28,767 |
|
Other assets |
|
|
24,414 |
|
|
|
25,272 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
414,679 |
|
|
$ |
376,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
65,618 |
|
|
$ |
32,210 |
|
Accrued compensation |
|
|
11,330 |
|
|
|
8,450 |
|
Income taxes payable |
|
|
10,061 |
|
|
|
9,128 |
|
Current deferred tax liability |
|
|
|
|
|
|
10,225 |
|
Other accrued liabilities |
|
|
18,962 |
|
|
|
11,813 |
|
Notes payable |
|
|
|
|
|
|
63,234 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
105,971 |
|
|
|
135,060 |
|
| |
Convertible senior subordinated notes |
|
|
2,305 |
|
|
|
|
|
Other liabilities |
|
|
19,892 |
|
|
|
18,484 |
|
|
|
|
|
|
|
|
|
|
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; 60,000,000 shares authorized; 44,891,834 and
43,779,011 shares issued, and 34,020,521 and 34,690,911
shares outstanding, respectively |
|
|
45 |
|
|
|
44 |
|
Additional paid in capital |
|
|
347,764 |
|
|
|
293,666 |
|
Less: 10,871,313 and 9,088,100 treasury shares,
respectively, at cost |
|
|
(281,932 |
) |
|
|
(237,387 |
) |
Retained earnings |
|
|
219,119 |
|
|
|
166,154 |
|
Accumulated other comprehensive income |
|
|
1,515 |
|
|
|
129 |
|
|
|
|
|
|
|
|
Total stockholders equity |
|
|
286,511 |
|
|
|
222,606 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
414,679 |
|
|
$ |
376,150 |
|
|
|
|
|
|
|
|
| |
|
|
| * |
|
Adjusted for retrospective application of ASC 470-20. Refer to our earnings release dated
October 23, 2009 for the impact of the retrospective application of ASC 470-20. |
SYNAPTICS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Twelve Months Ended |
|
| |
|
June 30, |
|
|
June 30, |
|
| |
|
2010 |
|
|
2009* |
|
|
2010 |
|
|
2009* |
|
| |
Net revenue |
|
$ |
145,763 |
|
|
$ |
115,327 |
|
|
$ |
514,890 |
|
|
$ |
473,302 |
|
Cost of revenue (1) |
|
|
86,516 |
|
|
|
68,924 |
|
|
|
306,188 |
|
|
|
281,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
59,247 |
|
|
|
46,403 |
|
|
|
208,702 |
|
|
|
191,509 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1) |
|
|
22,923 |
|
|
|
18,995 |
|
|
|
86,552 |
|
|
|
68,026 |
|
Selling, general, and administrative (1) |
|
|
15,053 |
|
|
|
12,944 |
|
|
|
60,027 |
|
|
|
54,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
37,976 |
|
|
|
31,939 |
|
|
|
146,579 |
|
|
|
122,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
21,271 |
|
|
|
14,464 |
|
|
|
62,123 |
|
|
|
69,469 |
|
Interest income |
|
|
205 |
|
|
|
452 |
|
|
|
977 |
|
|
|
3,222 |
|
Interest expense |
|
|
(5 |
) |
|
|
(1,399 |
) |
|
|
(2,400 |
) |
|
|
(7,053 |
) |
Loss on early retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,053 |
) |
Net gain/(loss) on investments |
|
|
|
|
|
|
160 |
|
|
|
(443 |
) |
|
|
(9,243 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
21,471 |
|
|
|
13,677 |
|
|
|
60,257 |
|
|
|
55,342 |
|
Provision for income taxes (2) |
|
|
2,143 |
|
|
|
1,290 |
|
|
|
7,292 |
|
|
|
7,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
19,328 |
|
|
$ |
12,387 |
|
|
$ |
52,965 |
|
|
$ |
48,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.57 |
|
|
$ |
0.36 |
|
|
$ |
1.57 |
|
|
$ |
1.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.54 |
|
|
$ |
0.34 |
|
|
$ |
1.50 |
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
33,867 |
|
|
|
34,388 |
|
|
|
33,836 |
|
|
|
33,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
35,514 |
|
|
|
36,348 |
|
|
|
35,423 |
|
|
|
35,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation charges of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
491 |
|
|
$ |
430 |
|
|
$ |
2,307 |
|
|
$ |
1,680 |
|
Research and development |
|
|
3,558 |
|
|
|
2,624 |
|
|
|
14,330 |
|
|
|
8,897 |
|
Selling, general, and administrative |
|
|
3,988 |
|
|
|
3,726 |
|
|
|
18,739 |
|
|
|
13,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
8,037 |
|
|
$ |
6,780 |
|
|
$ |
35,376 |
|
|
$ |
24,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes tax benefit for share-based compensation charges of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,600 |
|
|
$ |
2,523 |
|
|
$ |
9,642 |
|
|
$ |
7,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.73 |
|
|
$ |
0.50 |
|
|
$ |
2.36 |
|
|
$ |
2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.70 |
|
|
$ |
0.47 |
|
|
$ |
2.26 |
|
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| * |
|
Adjusted for retrospective application of ASC 470-20. Refer to our earnings release dated
October 23, 2009 for the impact of the retrospective application of ASC 470-20. |
SYNAPTICS INCORPORATED
Computation of Basic and Diluted Net Income Per Share
(in thousands, except per share data)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Twelve Months Ended |
|
| |
|
June 30, |
|
|
June 30, |
|
| |
|
2010 |
|
|
2009* |
|
|
2010 |
|
|
2009* |
|
| |
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income |
|
$ |
19,328 |
|
|
$ |
12,387 |
|
|
$ |
52,965 |
|
|
$ |
48,079 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares, basic |
|
|
33,867 |
|
|
|
34,388 |
|
|
|
33,836 |
|
|
|
33,981 |
|
Effect of dilutive share-based awards |
|
|
1,647 |
|
|
|
1,960 |
|
|
|
1,587 |
|
|
|
1,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares, diluted |
|
|
35,514 |
|
|
|
36,348 |
|
|
|
35,423 |
|
|
|
35,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.57 |
|
|
$ |
0.36 |
|
|
$ |
1.57 |
|
|
$ |
1.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.54 |
|
|
$ |
0.34 |
|
|
$ |
1.50 |
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of non-GAAP basic and diluted net income per share (unaudited):
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income |
|
$ |
19,328 |
|
|
$ |
12,387 |
|
|
$ |
52,965 |
|
|
$ |
48,079 |
|
Non-GAAP adjustments (net of tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
643 |
|
Net (gain)/loss on investments |
|
|
|
|
|
|
(160 |
) |
|
|
443 |
|
|
|
9,243 |
|
Non-cash interest expense |
|
|
|
|
|
|
695 |
|
|
|
1,192 |
|
|
|
3,469 |
|
Discrete tax items |
|
|
|
|
|
|
|
|
|
|
(370 |
) |
|
|
|
|
Share-based compensation |
|
|
5,437 |
|
|
|
4,257 |
|
|
|
25,734 |
|
|
|
16,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic and diluted net income |
|
$ |
24,765 |
|
|
$ |
17,179 |
|
|
$ |
79,964 |
|
|
$ |
77,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.73 |
|
|
$ |
0.50 |
|
|
$ |
2.36 |
|
|
$ |
2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.70 |
|
|
$ |
0.47 |
|
|
$ |
2.26 |
|
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| * |
|
Adjusted for retrospective application of ASC 470-20. Refer to our earnings release dated
October 23, 2009 for the impact of the retrospective application of ASC 470-20. |