Competition to Syna

 **Company Cypress Semiconductor** Market Cap =  1.53 billion
Cypress (CY)                   2013                            2012                         2011
Revenue                        $722.7 million                 $769.7million                $995.2 million                                                   
Gross Profits                  $338.6 million                 $392.8 million               $546.6 million
Net Income                     ($46.4 million)                ($22.4) million              $167.8 million
EPS                            (.31)                          ($.15)                       $.90
Cash                           $104.5                         $117.2 million               $166.3 million             
Debt                           $0                             $0                           $0               
Cashflow                       $31 million                    $102 million                 $203.2 million 
 **Atmel Corporation (ATML)**  Market Cap =  3.44 billion
Atmel(ATML)                  2013                            2012                         2011
Revenue                      $1,386.4 billion              $1,431.1 billion             $1,803.1 billion                                                   
Gross Profits                $573.6 million                 $601.3 million               $908.2 million
Net Income                  ($22.1) million                 $30.4 million                 $315 million
EPS                         (.05)                           ($.07)                        $.69
Cash                        $279.1 million                 $296.1 million               $332.5 million             
Debt                        $0                               $0                            $0               
Cashflow                    $92 million                       $162.4 million           $136.6 million 
 **Synaptics Inc. (SYNA)**  Market Cap =  2.2 billion
Synaptics (SYNA)            2013                             2012                         2011
Revenue                    $663.6 million                 $548.2 million             $514.9 million                                                   
Gross Profits              $325.8 million                 $255.6 million             $246.1 million
Net Income                 $45.3 million                   $12.3 million                 $53 million
EPS                         $2.89                         $1.57                       $1.80
Cash                        $355.3 million                 $305 million               $247.2 million             
Debt                        $0                            $0                            $0               
Cashflow                     $53.6 million                   $91 million           $78.1 million

Which of these companies look like the better investment and please explain?

Synaptics has many competitors, Renesas Electronic, Freescale semiconductor, Microchip technology, Infineon Technologies, Fujitsu, NXP Semiconductors, STMicroelectronics, Samsung, Cyprus, Atmel and Texas Instruments. I am sure that I can find many more also. The two that seem to be competing the strongest are Cyprus and Atmel. Atmel actually has a chip, like Syna, that you can use while having a glove on your hand and hovering over the screen. With all of the competition, this investment will bear close watching.

Andy
Long Syna.

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Great job, Andy.

How do you go about discovering these competitors? You must also have great time management skills to fit all this into your schedule. Impressive!

Taking a cursory look at the tables, it would appear that AMTL is a strong competitor. It’s revenues and cash flows are almost double of SYNA. However, AMTL has negative EPS for 2012 and 2013 … probably worth looking at what AMTL is doing.

Also appears industry wide they are in a no growth phase? CY and AMTL have seen revenue decline b/w 2011 and 2013; SYNA has done better growing revenue. This may have something to do with declining PC market sales.

Anirban

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How do you go about discovering these competitors?

I read articles on the internet, one of the best was on Seeking Alpha discussing ATML. After finding the competitors then you can look at their financials on Sec.Gov. Also going to their websites will give you a lot of information.

I agree with you Anirban about Amyl being one of the best competitors. They have some strong solutions and are spread out across many industries. They really are focused on the IoT. But they are losing right now. Their revenue is coming down, Gross Margins went from 50% down to low 40%. Their Net income is now negative so they are no longer profitable, but at least they are cash flow positive so they can still keep going but they are definitely hurting.

Cy has really been going down. Their SDram is what is dragging them down. They were hard into the PC’s. I think they are going to have a hard tine turning it around.

Sync is doing the best of the three I think they have really turned it around. The CEO says he is focused on the top line so as long as we see the revenue growing by at least above 20% we should be ok. I think if we watch these 3 companies every quarter we should get a sense on who is winning.

I think you are right Anirban about the PC market sales decline it hurt all three of them and now they are racing for mobile.

You must also have great time management skills to fit all this into your schedule. Impressive!

LOL talk to my wife. I have been trying to get a retaining wall done for 3 weeks but earnings season comes first :). Thanks for discussing this with me Anirban.

Andy

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