Hi Chris, Here are some quotes from the SYNA conference call:
Weaker than expected sell-through trends for certain customers in mobile, somewhat offset by greater than anticipated demand in the PC market. The resulting product mix contributed to a lower gross margin, while adj net income was $40.9 million or $1.04 per diluted share.
We were extremely pleased to announce the close of the acquisition of Renesas SP Drivers as of the first day of calendar Q4, which was earlier than anticipated. This is a transformational development for Synaptics and positions us extremely well to be able to address the full spectrum of needs for the mobile display market. We are very excited about what this acquisition means for Synaptics. It not only advances our leadership position in platform level display solutions, but solidifies our position as a number one human interface company.
By incorporating RSP’s advanced display driver solutions into our broad portfolio, we expect to increase our addressable market opportunity of approximately $3 billion by more than one and a half times.
(With the aid of) the RSP business, it should not be overlooked that we expect to post revenue of more than double that of our the December quarter last year.
Synaptics continue to be a key enabler of the mobile payment ecosystem. As a FIDO Alliance founding member, we see a consistent trend towards broad industry acceptance and deployment of biometrics. The prospect of securing intuitive mobile payments is a driving force of this movement, with negatives associated with password security being eliminated from the equations through the local device authentication.
While the first half of the fiscal year has been impacted by slowness at the premium level in mobile, …annual organic revenue growth is now expected to be in the low 20s. We anticipate a positive growth trajectory over the second half of the fiscal year as our fingerprint ID products continue to come online as we continue to make strong progress in the China market and as we expect greater demand for Synaptics’ TDDI products.
The remaining share repurchase authorization of 150 million is available through July 2016. (They could buy some now!)
Our non-GAAP net income per diluted share for the December quarter is anticipated to be in the range of $1 and $1.30 per share. (That will be up from 86 cents).
All in all, this sounds very positive. I can’t imagine selling here, but I personally won’t be adding as it’s already one of my big four.