SYNA results

Great results also. Here are my notes.

Saul

Apr 2014 – Announced Mar quarter results

Record revenue, up 25%

Adj earnings of 63 cents at high end of guidance range
?
Fingerprint ID business accretive to adjusted results ahead of schedule

Outlook: Up to 40% annual revenue growth expected in fiscal 2014

Our strong performance reflects Synaptics’ continued leadership across our entire product portfolio, from touchpads to touchscreens to our new fingerprint ID products. We were pleased to see the fingerprint ID business become accretive to our adj earnings a quarter ahead of schedule.

Outlook: We expect another exceptional quarter. While at the start of the year we had forecast annual revenue growth to be about 21%, with the strength of the fingerprint ID business augmenting the growth of our core touch solutions, we now expect to achieve top-line growth of 37% to 40% for fiscal 2014.

Net revenue for the third quarter of fiscal 2014 was $204 million, up 25% from $163 million. This revenue reflects the first full quarter of the fingerprint ID business.

Further, the company substantially increased its outlook for the fingerprint ID business, resulting in an increase to contingent consideration on expected future earn-out payments. This reduces GAAP results but is obviously good for the company.

Third Quarter 2014 Business Metrics

Revenue mix from mobile and PC products was approximately 74% and 26%, respectively. Fingerprint ID products have been classified according to type of device.

Revenue from mobile products of $151 million was up 44% year-over-year.

Revenue from PC products totaled $53.5 million, down 9% year-over-year.

Cash was $391.5 million.

Considering our backlog of $145 million, we anticipate revenue to be in the range of $275 million to $295 million for the June quarter, up 20% to 28% over the prior year quarter’s record revenue, and up 40% sequentially.

Conference Call was very positive.

Conclusion – Great results. Keep holding my large position.

6 Likes

Saul,
You may not remember this, but you gave me a link to your post on SYNA when I mentioned the company over on the RB boards. I did manage to open a modest position at around $60/shr.
Thanks for your help. This company seemed like a no brainer, so I assumed I was missing something. Apparently not.
Thanks again,
Doug

Tremendous results, thanks for continuing to make the point on this name.