adjustments to SYNA earnings

Saul I could not find anything that showed your quarterly numbers for SYNA I got .63, 1.46, 1.04, 1.46 for a total of 4.59
and a twenty times adjusted earnings of 92.

Is that what you are getting? and since the adjustments are particularly large on this one have you looked at them? I notice that many data services show the PE at a very high 84 rather than comfortable less than 20 on TTM.

MY point being that relying on data services for the basic info might not serve investors well. But since I am not an accountant, I would love to hear how you got comfortable with the differences in the numbers.

Flygal

Saul I could not find anything that showed your quarterly numbers for SYNA I got .63, 1.46, 1.04, 1.46 for a total of 4.59
and a twenty times adjusted earnings of 92. Is that what you are getting?

Hi Flygal, I got the same numbers you did, to the penny.

and since the adjustments are particularly large on this one have you looked at them? I notice that many data services show the PE at a very high 84 rather than comfortable less than 20 on TTM. MY point being that relying on data services for the basic info might not serve investors well. But since I am not an accountant, I would love to hear how you got comfortable with the differences in the numbers.

Most of the adjustments are not stock-based compensation but acquisition expenses for the two major acquisitions they just completed (Check the last earnings report reconciliation). In fact, they removed a foreign exchange GAIN of $15 million, while their removal of stock-based comp expense was only $10 million, so they seem pretty honest about it. they are obviously making plenty of real money as “Year-to-date, the company has used $91 million to repurchase approximately 1.3 million shares of its common stock, or roughly 3.5% of the total shares outstanding”. This quote also sounded very promising: “Considering our backlog of $245 million entering the March quarter, customer forecasts and the resulting expected product mix, we anticipate revenue to be in the range of $450 to $490 million, an increase of 120% to 140% over the prior year period.”

Hope this helps.

Saul

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Thanks for checking it Saul.

So it seems like this is a great example of a stock where doing a small amount of digging is very important. The non GAAP number are very different from the GAAP numbers that are used by most data providers. By doing your work in the way Saul advises, you will find an opportunity that others miss by looking at the numbers that someone else added up.

SYNA is an 84 PE TTM GAAP, and less than 20 TTM non-GAAP. Know for yourself, or know the opinion of someone you can trust on the difference.

http://investor.shareholder.com/synaptics/results.cfm check it out.

And Saul thanks for hammering away on GAAP problems.

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