Synaptics Reports Results for First Quarter Fiscal 2015

- Record September quarter revenue of $283 million up 27% year-over-year

- Close of Renesas SP Drivers acquisition completed earlier than anticipated

- December quarter revenue expected to be up more than double year-over-year

Synaptics (NASDAQ: SYNA), a leading developer of human interface solutions, today reported financial results for its first quarter ended September 30, 2014.

Net revenue for the first quarter of fiscal 2015 grew 27% over the comparable quarter last year to $282.7 million. Net income for the first quarter of fiscal 2015 was $26.6 million, or $0.68 per diluted share.  Non-GAAP net income for the first quarter of fiscal 2015 was $40.9 million, or $1.04 per diluted share.  (See attached table for a reconciliation of GAAP to non-GAAP financial measures.)

"Our performance in the first quarter reflected weaker than expected customer demand trends in the mobile market, offset by greater than anticipated demand in the PC market. The resulting overall product mix contributed to gross margins that were below our prior forecast," stated Rick Bergman, President and CEO.

"We are extremely pleased to have closed the acquisition of Renesas SP Drivers at the start of calendar Q4, earlier than anticipated. This is a transformational development for Synaptics that significantly expands our market and growth opportunities, adds highly skilled engineering talent and broadens our global customer base. As we prepare to exit the calendar year, we are very confident in our position as the top provider of human interface solutions. Synaptics leads the market, from our TouchPad products and capacitive touchscreens; to our fingerprint sensor solutions for mobile phones, tablets and notebooks; to our newly acquired high-performance mobile display driver products," concluded Mr. Bergman.

First Quarter 2015 Business Metrics

Revenue mix from mobile and PC products was approximately 71% and 29%, respectively. Fingerprint ID products have been classified according to type of device.
Revenue from mobile products of $199.7 million was up 23% year-over-year. Mobile products revenue includes all touchscreen, video display, and applicable fingerprint ID products.
Revenue from PC products totaled $83.0 million, an increase of 38% year-over-year, and includes applicable fingerprint ID products.

Cash at September 30, 2014 was $449.8 million. In the first quarter of fiscal 2015, cash flow from operations was $60.4 million, and the company used $50.0 million to repurchase approximately 629 thousand shares of common stock.

Kathy Bayless, CFO, added, "With the growth of Synaptics' core business and the addition of Renesas SP Drivers this quarter, we are very pleased to note that December quarter revenue is expected to be more than double last year's December quarter revenue. Considering seasonal market dynamics and customer ramp cycles, we expect downward sequential revenue trends in our core business from the September quarter. Based on the combined backlog of Synaptics and Renesas SP Drivers of approximately $260 million entering the December quarter, customer forecasts, and expected product mix, we anticipate revenue to be in the range of $415 million to $450 million, a new record for Synaptics."

www.synaptics.com