SYNAPTICS INCORPORATED SAN JOSE, Calif., July 30, 2015 /PRNewswire/ -- Synaptics (NASDAQ: SYNA), a leading developer of human interface solutions, today reported financial results for its fourth quarter and year ended June 30, 2015.
"Synaptics posted a strong fourth quarter and a phenomenal fiscal year as we crossed the $1 billion annual revenue threshold," stated Rick Bergman, President and CEO. "During fiscal 2015 we surpassed the 3 billion milestone for unit shipments of our solutions, more than doubled the revenue contribution from China based mobile customers and also doubled revenue from our fingerprint ID business. We successfully completed and integrated the acquisition of our display driver business, strengthening our competitive position and accelerating our roadmap for touch and display driver integration.
"Our focus remains on growth, and we continue to invest in order to fully capitalize on our key fingerprint ID and touch and display driver integration (TDDI) growth pillars as we march towards becoming a $2 billion annual revenue company. With our continued commitment to growth and innovation, we expect to generate a strong top-line increase in fiscal 2016 of 20 percent to 25 percent, with growth weighted towards the second half of the fiscal year based on our strong product pipeline," concluded Mr. Bergman.
Net revenue for fiscal 2015 reached a record $1.7 billion, an increase of 80 percent over fiscal 2014. Net income for fiscal 2015 was $112.3 million, or $2.89 per diluted share.
Non-GAAP net income for fiscal 2015 increased 40 percent from the prior year to a record $221.4 million, or $5.69 per diluted share. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)
Net revenue for the fourth quarter of fiscal 2015 grew 52 percent over the comparable quarter last year to a record $478.9 million. Net income for the fourth quarter of fiscal 2015 was $33.3 million, or $0.85 per diluted share.
Non-GAAP net income for the fourth quarter of fiscal 2015 grew 8 percent over the prior year period to $61.2 million, or $1.57 per diluted share. (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)
Fourth Quarter 2015 Business Metrics
-- Revenue mix from mobile and PC products was approximately 89 percent and
11 percent respectively. Fingerprint ID products have been classified
according to type of device.
-- Revenue from mobile products of $426.6 million was up 76 percent
year-over-year. Mobile products revenue includes all touchscreen,
display driver, and applicable fingerprint ID products.
-- Revenue from PC products totaled $52.3 million, a decrease of 27 percent
year-over-year, and includes applicable fingerprint ID products.
-- Cash at June 30, 2015 was $400 million.
Wajid Ali, CFO, added, "Considering our backlog of $159 million entering the typically back-end loaded September quarter, subsequent bookings, customer forecasts and product sell-in and sell-through timing patterns, and the resulting expected product mix, we anticipate revenue to be in the range of $450 to $490 million, an increase of 59 percent to 73 percent over the prior year period. On a sequential basis, this outlook reflects positive trends in our touch and fingerprint products despite typical downward seasonality, offset by product cycle trends in display driver products. We expect the revenue mix from mobile and PC products to be roughly similar to the preceding quarter."
During fiscal 2015, Synaptics repurchased approximately 5 percent of its outstanding shares, similar to levels repurchased during each of the past several years. The company also announced that in July, its board of directors increased and extended the authorization for stock repurchases by $120 million, for a total current authorization of $198 million available through July 2017.
Earnings Call Information
The Synaptics fourth quarter fiscal 2015 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Thursday, July 30, 2015, during which the company will provide forward-looking information. To participate on the live call, analysts and investors should dial 888-455-2260 (conference ID: 2011227) 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 Website at www.synaptics.com.
About Synaptics Incorporated
Synaptics is the pioneer and leader of the human interface revolution, bringing innovative and intuitive user experiences to intelligent devices. Synaptics' broad portfolio of touch, display, and biometrics products is built on the company's rich R&D and supply chain capabilities. With solutions designed for mobile, PC and automotive industries, Synaptics combines ease of use, functionality and aesthetics to enable products that help make our digital lives more productive, secure and enjoyable. (NASDAQ: SYNA) www.synaptics.com.
Use of Non-GAAP Financial Information
In evaluating its business, Synaptics considers and uses net income excluding share-based compensation, change in contingent consideration, and certain non-cash or non-recurring items as a supplemental measure of operating performance. Net income excluding share-based compensation, change in contingent consideration, 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, change in contingent consideration, 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, change in contingent consideration, and certain non-cash or non-recurring items. Net income excluding share-based compensation, change in contingent consideration liability, 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 that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements may include words such as "expect," "anticipate," "intend," "believe," "estimate," "plan," "target," "strategy," "continue," "may," "will," "should," variations of such words, or other words and terms of similar meaning. All forward-looking statements reflect our best judgment and are based on several factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Such factors include, but are not limited to, the risks as identified in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" sections of our Annual Report on Form 10-K for the fiscal year ended June 28, 2014 and our Quarterly Report on Form 10-Q for the quarter ended September 27, 2014, and other risks as identified from time to time in our Securities and Exchange Commission reports. Forward-looking statements are based on information available to us on the date hereof, and we do not have, and expressly disclaim, any obligation to publicly release any updates or any changes in our expectations, or any change in events, conditions, or circumstances on which any forward-looking statement is based. Our actual results and the timing of certain events could differ materially from the forward-looking statements. These forward-looking statements do not reflect the potential impact of any mergers, acquisitions, or other business combinations that had not been completed as of the date of this filing.
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)
June 30, June 30,
2015 2014
---- ----
Assets
Current assets:
Cash and cash equivalents $399,905 $447,205
Accounts receivables, net of allowances of $2,900
and $883, respectively 324,634 195,057
Inventories 140,170 82,311
Prepaid expenses and other current assets 47,329 17,858
-----------------
Total current assets 912,038 742,431
Property and equipment at cost, net 123,445 80,849
Goodwill 215,244 61,030
Purchased intangibles, net 235,386 82,111
Non-current other assets 37,974 53,912
------ ------
Total assets $1,524,087 $1,020,333
========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $188,459 $97,109
Accrued compensation 35,861 30,682
Income taxes payable 34,712 12,538
Acquisition-related liabilities 102,288 57,388
Other accrued liabilities 74,130 56,691
Current portion of long-term debt 11,250 -
Total current liabilities 446,700 254,408
Long-term debt 231,062 -
Acquisition-related liabilities - 52,734
Deferred tax liability 33,240 -
Other liabilities 15,458 12,034
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;
58,249,107 and 55,911,513
shares issued, and
37,529,608 and
36,863,802 shares
outstanding,
respectively 58 56
Additional paid in capital 846,403 740,282
Less: 20,719,499 and 19,047,711 treasury shares,
respectively, at cost (651,705) (530,422)
Accumulated other comprehensive income 7,873 8,560
Retained earnings 594,998 482,681
-----------------
Total stockholders' equity 797,627 701,157
------- -------
Total liabilities and stockholders' equity $1,524,087 $1,020,333
========== ==========
SYNAPTICS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
June 30, June 30,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Net revenue $478,927 $314,898 $1,702,971 $947,539
Acquisition and integration related costs (1) 14,314 2,378 73,788 6,926
Cost of revenue 297,346 172,694 1,050,551 504,533
------- ------- --------- -------
Gross margin 167,267 139,826 578,632 436,080
Operating expenses
Research and
development 79,690 56,896 293,157 192,681
Selling, general,
and administrative 39,359 30,180 143,286 100,005
Acquisition related
costs (2) 4,155 13,392 (4,579) 70,908
Foreign currency
adjustment (3) - - (15,395) -
Total operating expenses 123,204 100,468 416,469 363,594
------- ------- ------- -------
Operating income 44,063 39,358 162,163 72,486
Interest and other income, net 405 560 1,875 1,982
Interest expense (1,303) - (3,832) (9)
Income before provision for income taxes 43,165 39,918 160,206 74,459
Provision for income taxes 9,889 5,446 47,889 27,770
Net income $33,276 $34,472 $112,317 $46,689
======= ======= ======== =======
Net income per share:
Basic $0.90 $0.95 $3.04 $1.34
Diluted $0.85 $0.89 $2.89 $1.26
Shares used in computing net income per share:
Basic 37,156 36,411 36,918 34,761
Diluted 38,971 38,817 38,889 37,105
(1) These
acquisition
and
integration
related costs
consist
primarily of
amortization
associated
with certain
acquired
intangible
assets and
integration
costs
associated
with
acquisitions.
(2) These
acquisition
related costs
consist
primarily of
changes in
contingent
consideration
and
amortization
associated
with certain
acquired
intangible
assets.
(3) These foreign
currency
adjustments
include
currency
remeasurement
adjustments
related to our
acquisition of
RSP.
SYNAPTICS INCORPORATED
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
June 30, June 30,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
GAAP gross margin $167,267 $139,826 $578,632 $436,080
Acquisition
and
integration
related
costs 14,314 2,378 74,056 6,926
Share-based
compensation 367 298 1,374 1,142
Non-GAAP gross margin $181,948 $142,502 $654,062 $444,148
======== ======== ======== ========
GAAP gross margin -percentage of
revenue 34.9% 44.4% 34.0% 46.0%
Acquisition
and
integration
related
costs -
percentage
of revenue 3.0% 0.8% 4.3% 0.7%
Share-based
compensation
-
percentage
of revenue 0.1% 0.1% 0.1% 0.2%
Non-GAAP gross margin - percentage of
revenue 38.0% 45.3% 38.4% 46.9%
==== ==== ==== ====
GAAP research and development expense $79,690 $56,896 $293,157 $192,681
Acquisition
and
integration
related
costs - - (1,731) -
Share-based
compensation (6,712) (5,336) (24,518) (18,455)
Non-GAAP research and development
expense $72,978 $51,560 $266,908 $174,226
======= ======= ======== ========
GAAP selling, general, and
administrative expense $39,359 $30,180 $143,286 $100,005
Acquisition
and
integration
related
costs - (3,639) (7,508) (5,761)
Share-based
compensation (5,153) (3,788) (18,177) (13,264)
Non-GAAP selling, general, and
administrative expense $34,206 $22,753 $117,601 $80,980
======= ======= ======== =======
GAAP operating income $44,063 $39,358 $162,163 $72,486
Acquisition
and
integration
related
costs 18,469 19,409 78,716 83,595
Share-based
compensation 12,232 9,422 44,069 32,861
Foreign
currency
adjustment - - (15,395) -
Non-GAAP operating income $74,764 $68,189 $269,553 $188,942
======= ======= ======== ========
GAAP net income $33,276 $34,472 $112,317 $46,689
Acquisition
and
integration
related
costs 18,469 19,409 78,716 83,595
Share-based
compensation 12,232 9,422 44,069 32,861
Other non-
cash items,
net (158) (307) (880) (1,058)
Tax
adjustments (2,642) (6,189) 2,547 (4,506)
Foreign
currency
adjustments - - (15,395) -
Non-GAAP net income $61,177 $56,807 $221,374 $157,581
======= ======= ======== ========
GAAP net income per share - diluted $0.85 $0.89 $2.89 $1.26
Acquisition
and
integration
related
costs 0.47 0.50 2.02 2.25
Share-based
compensation 0.31 0.24 1.13 0.89
Other non-
cash items,
net - (0.01) (0.02) (0.03)
Tax
adjustments (0.06) (0.16) 0.07 (0.12)
Foreign
currency
adjustments - - (0.40) -
Non-GAAP net income per share - diluted $1.57 $1.46 $5.69 $4.25
===== ===== ===== =====
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SOURCE Synaptics
