Synaptics Reports Results for 2Q 2016

Synaptics reported financial results for its second quarter ended Dec. 31, 2015. Net revenue for the second quarter of fiscal 2016 increased 2% compared to the comparable quarter last year to $470.5 million. Net income for the second quarter of fiscal 2016 was $35.0 million, or $0.93 per diluted share.

Non-GAAP net income for the first quarter of fiscal 2016 grew 9% over the prior year period to $60.3 million, or $1.60 per diluted share.

“We are pleased to report record second quarter revenue and non-GAAP net income that were within our guidance range despite negative impacts due to macroeconomic uncertainty and resulting weakness at top smartphone OEMs,” said Rick Bergman, president and CEO. “We expect these factors to also slow our fiscal year growth from the levels we previously forecasted. However, we believe that our diversified product portfolio and the breadth of our global customer base should help cushion the effects of industry gyrations and enable us to continue to deliver solid revenue growth and profitability for the fiscal year.”

Revenue mix from mobile and PC products was approximately 87% and 13%, respectively. Fingerprint authentication products have been classified according to type of device. Revenue from mobile products of $407.8 million was up 2% year-over-year. Mobile products revenue includes all touchscreen, display driver, and applicable fingerprint authentication products.

Revenue from PC products totaled $62.7 million, a decrease of 4% year-over-year, and includes applicable fingerprint authentication products.

“Considering our backlog of $139 million entering the March quarter, subsequent bookings, customer forecasts, product sell-in and sell-through timing patterns, as well as expected product mix, we anticipate revenue in the March quarter to be in the range of $430 to $470 million, with the revenue mix from mobile and PC products to be approximately 90% and 10%, respectively,” CFO Wajid Ali added.

Cash at December 31, 2015 was $372 million. In the second quarter of fiscal 2016, cash flow from operations was $94.5 million.