Incredible optimism and enthusiasm and great results
The acquisition of RSP is marching the plan and we expect to formally close the transaction prior to our November Analyst Day. We will provide an update on our fiscal 2015 outlook for the combined business at the appropriate time following the close, when we’re in a better position to provide a more comprehensive view of our go-forward operations. I can say that initial post-close priorities will center on integration, required investments and infrastructure and customer support as we transition RSP out of its current JV structure, as well as incremental R&D investment as we accelerate our TDDI efforts. We have a tremendous opportunity ahead of us with the strengths of the combined companies, innovative technology, market leading products and scales to drive revenue in operating profit growth.
Continuing on the topic of display integration solutions which account for over 40% of our designs, Motorola has selected our Single-Layer On-Cell solutions for its 4.3 inch E and 4.5 inch G models, significantly raising the performance bar for entry level smartphones.
We are also proud to announce the Nokia Lumia 630 and 635 at the world’s first Single-Layer On-Cell solutions to hit the shelfs with our face detect capability. Face detect is a technology that replaces traditional infrared sensors and turns out the LCD during phone operation lowering the total BOM cost.
This is not to suggest that our discrete business is going away, as the Nokia Lumia 530 also incorporates a Single-Layer discrete solution from Synaptics’. Our solutions portfolio allows us to closely partner with leading OEMs across a range of product implementations. A case in point is LG, who recently selected our ClearPad family as a touch solution for its latest flagship smartphone, the 5.5 inch G3.
LG also selected Synaptics’ as a touch interface towards G Watch, it’s a latest entry into the wearables market.
Building on our inclusion in the Amazon Kindle Fire Tablet with our ClearPad solution, as Synaptics’ In-Cell solution is now deployed in the Amazon Fire smartphone, another example of display integration within the high-end models.
With multiple OEMs going to market later this year with display integrated solutions and every major LCM engaged, we’re more confident than ever that our RSP acquisition was the right decision to accelerate market option of our technology.
Meanwhile we continue to expect Synaptics’ initial TTDI solution to be in production within a smartphone this calendar year.
Turning to the China mobile market, we garnered multiple new designs with OEMs such as Huawei, ZTE, Oppo, BBK and Gionee. I wanted to note a few models that are significant because they highlight the industry’s move towards display integration and models at each price point in each region.
First, the Huawei ultra slim flagship the Ascend P7 features our In-Cell solution as does Huawei Honor 6. I also wanted to call out the 6-inch ZTE Grand Memo II and the Vsun Hexa, which both feature a Single Layer On-Cell solution.
Our penetration in the China mobile market has been gaining traction over the last 12 months, driven by our infrastructure investments with the most knowledgeable local technical support in the broadest set of human interface solution offerings available.
Local OEMs such as Gionee continue to grow in popularity and as the company planned its international extension, we continue to partner on industry leading solutions and devices such as the Redmi Note tablet. We expect additional small and large touchscreen Gionee devices with our solutions to begin shipping later this year.
While we expect to provide more details during our November Analyst Day, I’m happy to provide some year-end data on our share and our various markets excluding the main captive supplier as usual.
Over the past 12 months, we’ve seen our position in the PC market tick-up slightly and expect to exit fiscal 2014 with over 65% market share of TouchPad among the top-10 OEMs.
We maintained our strong share in mobile phones of over 40% based on our continued leadership in high performance smartphones as well as ongoing strength in execution in the China market. We believe that our solutions account for a majority of the rapidly growing fingerprint ID market.
And lastly, we achieved our target of growing our large touch screen revenue by 2x to 3x over the prior year moving from a low base to market share in the mid-teens and we’re starting to layer on additional designs for touchscreen-enabled notebooks.
Those of you who have attended my presentations in the past, remember that my focus has always been growth, growth and growth.
Our outperformance in the June quarter reflected a steep ramp of some new designs and while we expect to post a record in September quarter revenue, we will be down on a sequential basis from the June quarters all time high revenue level.
As we move through the year, we expect our business to reflect strong year-over-year growth trends including expending momentum for our fingerprint ID products. Taking into account our overall revenue mix, we expect non-GAAP gross margin for the September quarter to be approximately 45% to 47%.
With this steep ramp of our fingerprint ID solutions, we have incurred some initial start-up costs and expect to have opportunities in the supply chain to achieve some savings beginning this quarter.
On fingerprint, our share is very high right now…But what will help there certainly is the tremendous anticipated growth in the market, going from 30 million roughly units in calendar 2013 to north of 500 million a few years from now.