SANTA CLARA, Calif., April 23 /PRNewswire-FirstCall/ -- Synaptics
(NASDAQ: SYNA), a leading developer of human interface solutions
for mobile computing, communications, and entertainment devices,
today reported financial results for the third quarter ended March
31, 2009. The Company's GAAP results reflect the expensing of
non-cash share-based compensation and non-cash impairment charges
for all periods presented; and non-operating gains for the
nine-month periods ended March 31, 2008 and 2009. Net revenue for
the third quarter of fiscal 2009 was $100.6 million, an increase of
approximately 28% over $78.9 million of net revenue for the third
quarter of fiscal 2008. Net income for the third quarter of fiscal
2009 was $6.1 million, or $0.17 per diluted share, compared with
net income of $3.0 million, or $0.08 per diluted share, for the
third quarter of fiscal 2008. Net income for the third quarter of
fiscal 2009 and 2008 included non-cash impairment charges of $2.9
million and $2.2 million, respectively, related to the Company's
investment in auction rate securities. Excluding non-cash charges
for share-based compensation and impairment of auction rate
securities for both periods, net income was $13.4 million, or $0.38
per diluted share, for the third quarter of fiscal 2009 compared
with net income of $8.8 million, or $0.23 per diluted share, for
the third quarter of fiscal 2008. "We delivered another quarter of
very solid results despite the current challenging environment,"
stated Francis Lee, Chairman and Chief Executive Officer of
Synaptics. "Revenue from PC applications exceeded our expectations,
and we furthered our penetration of the mobile phone market, where
the installed base of capacitive interface solutions continues to
be very low. Our design pipeline remains robust, and we continue to
make the necessary investments to scale our business to address the
abundant opportunities for our solutions moving forward. Despite
the ongoing flux in the macroeconomic environment, we expect to end
fiscal 2009 with record revenue and net income." Russ Knittel,
Synaptics' Chief Financial Officer, added, "We continue to take a
prudent approach towards managing our business in the current
economic climate. Based on our current visibility and backlog of
$72.2 million exiting the March quarter, we anticipate revenue in
the June quarter will be $105 million to $115 million, an increase
of 8% to 19% over the comparable quarter last year." Synaptics'
cash and short-term investments at the end of March totaled $174.5
million. This balance excludes $29.9 million at book value of
auction rate securities, which are included in non-current assets
on the balance sheet. Based on a fair value analysis in accordance
with U.S. GAAP, the Company has recorded a net $2.9 million
non-cash other-than-temporary impairment charge to its quarterly
earnings. "We will continue to monitor our investments in auction
rate securities in light of the current debt market environment,"
stated Mr. Knittel. Earnings Call Information The Synaptics third
quarter fiscal 2009 teleconference and webcast is scheduled to
begin at 2:00 p.m., Pacific Time, on Thursday, April 23, 2009,
during which the Company will provide forward-looking information.
To participate on the live call, analysts and investors should dial
800-240-2134 at least ten minutes prior to the call. Synaptics will
also offer a live and archived webcast of the conference call,
accessible from the "Investor Relations" section of the Company's
Web site at http://www.synaptics.com/. About Synaptics Incorporated
Synaptics is a leading developer of human interface solutions for
mobile computing, communications, and entertainment devices. The
Company creates interface solutions for a variety of devices
including notebook PCs, PC peripherals, digital music players, and
mobile phones. The TouchPad(TM), Synaptics' flagship product, is
integrated into a majority of today's notebook computers. Consumer
electronics and computing manufacturers use Synaptics' solutions to
enrich the interaction between humans and intelligent devices
through improved usability, functionality, and industrial design.
The Company is headquartered in Santa Clara, California.
http://www.synaptics.com/ NOTE: Synaptics, TouchPad, and the
Synaptics logo are trademarks of Synaptics in the United States
and/or other countries. Use of Non-GAAP Financial Information In
evaluating its business, Synaptics considers and uses net income
per share excluding share-based compensation and unusual or
non-recurring items as a supplemental measure of operating
performance. Net income excluding share-based compensation and
unusual or non-recurring items is not a measurement of the
Company's financial performance under GAAP and should not be
considered as an alternative to GAAP net income. The Company
presents net income excluding share-based compensation and unusual
or non-recurring items because it considers it an important
supplemental measure of its performance. The Company believes this
measure facilitates operating performance comparisons from period
to period by eliminating potential differences in net income caused
by the existence and timing of non-cash compensation charges and
unusual or non-recurring items. Net income excluding share-based
compensation and unusual or non-recurring items has limitations as
an analytical tool and should not be considered in isolation or as
a substitute for the Company's GAAP net income. The principal
limitations of this measure are that it does not reflect the
Company's actual expenses and may thus have the effect of inflating
its net income and net income per share. Forward-Looking Statements
This press release contains "forward-looking" statements about
Synaptics, as that term is defined under the federal securities
laws. Synaptics intends such forward-looking statements to be
subject to the safe harbor created by those laws. Such
forward-looking statements include, but are not limited to,
statements regarding Synaptics' anticipated revenue, revenue growth
rates, and net income; the success of its growth strategies; its
beliefs regarding the markets it serves; its assessment of its
competitive position and opportunities in those markets; its
assessment of market demands and trends in target markets; the
status of its design pipeline; the amount of the investments it is
making in its business; its business opportunities; and its
assessment of consumer demands for various applications. Synaptics
cautions that these statements are qualified by important factors
that could cause actual results to differ materially from those
reflected by the forward-looking statements contained herein. Such
factors include, but are not limited to, (a) demand for Synaptics'
products, (b) market demand for OEMs' products using Synaptics'
solutions, (c) changing market demand trends in the markets it
serves, and (d) other risks as identified from time to time in
Synaptics' SEC reports, including Quarterly Reports on Form 10-Q
and the Annual Report on Form 10-K for the fiscal year ended June
30, 2008. All forward-looking statements are based on information
available to Synaptics on the date hereof, and Synaptics assumes no
obligation to update such statements. For more information contact:
Jennifer Jarman The Blueshirt Group 415-217-7722 (Tables to Follow)
SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data) (Unaudited) Three Months
Ended Nine Months Ended March 31, March 31, --------- ---------
2009 2008 2009 2008 ---- ---- ---- ---- Net revenue $100,595
$78,861 $357,975 $264,203 Cost of revenue (1) 59,888 46,688 212,869
155,521 ------ ------ ------- ------- Gross margin 40,707 32,173
145,106 108,682 Operating expenses Research and development (1)
17,286 13,560 49,031 35,655 Selling, general, and administrative
(1) 12,786 12,181 41,070 34,346 ------ ------ ------ ------ Total
operating expenses 30,072 25,741 90,101 70,001 ------ ------ ------
------ Operating income 10,635 6,432 55,005 38,681 Interest income
538 2,293 2,770 8,301 Interest expense (234) (449) (1,004) (1,373)
Gain on settlement of debt - - - 2,689 Gain on early retirement of
debt - - 3,600 - Impairment of investment - - - (4,000) Impairment
of auction rate securities investments (2,894) (2,237) (9,403)
(2,237) ------ ------ ------ ------ Income before income taxes
8,045 6,039 50,968 42,061 Provision for income taxes (2) 1,959
3,031 9,726 13,595 ----- ----- ----- ------ Net income $6,086
$3,008 $41,242 $28,466 ====== ====== ======= ======= Net income per
share: Basic $0.18 $0.08 $1.22 $0.73 ===== ===== ===== =====
Diluted $0.17 $0.08 $1.17 $0.70 ===== ===== ===== ===== Shares used
in computing net income per share: Basic 34,062 37,140 33,845
38,898 ====== ====== ====== ====== Diluted 35,243 37,953 35,291
40,701 ====== ====== ====== ====== (1) Includes share-based
compensation charges of: Cost of revenue $437 $377 $1,250 $966
Research and development 2,295 1,797 6,273 4,556 Selling, general,
and administrative 3,371 2,680 10,117 7,146 ----- ----- ------
----- $6,103 $4,854 $17,640 $12,668 ====== ====== ======= =======
(2) Includes tax benefit for share-based compensation charges of:
$1,712 $1,255 $5,449 $4,628 ====== ====== ====== ====== Non-GAAP
net income per share Basic $0.39 $0.24 $1.79 $1.05 ===== =====
===== ===== Diluted $0.38 $0.23 $1.72 $1.00 ===== ===== ===== =====
SYNAPTICS INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands,
except share data) (Unaudited) March 31, June 30, 2009 2008 ----
---- Assets Current assets: Cash and cash equivalents $146,080
$96,218 Short term investments 28,376 50,298 ------ ------ Total
cash, cash equivalents, and short-term investments 174,456 146,516
Receivables, net of allowances of $624 and $539, respectively
69,163 69,362 Inventories 15,859 21,065 Prepaid expenses and other
current assets 4,003 3,417 ----- ----- Total current assets 263,481
240,360 Property and equipment, net 25,290 22,459 Goodwill 1,927
1,927 Non-current investments 29,911 37,946 Other assets 10,049
3,669 ------ ----- Total assets $330,658 $306,361 ======== ========
Liabilities and stockholders' equity Current liabilities: Accounts
payable $31,894 $27,784 Accrued compensation 6,732 6,510 Income
taxes payable 7,777 7,095 Convertible senior subordinated notes
65,303 - Other accrued liabilities 12,198 9,120 ------ ----- Total
current liabilities 123,904 50,509 Convertible senior subordinated
notes - 125,000 Other liabilities 17,260 17,075 Commitments and
contingencies Stockholders' equity: Preferred stock; $.001 par
value; 10,000,000 shares authorized; no shares issued and
outstanding - - Common stock; $.001 par value; 60,000,000 shares
authorized; 43,201,638 and 42,500,535 shares issued, and 34,113,538
and 33,412,435 shares outstanding, respectively 43 43 Additional
paid in capital 254,044 222,543 Less: 9,088,100 and 9,088,100
treasury shares, respectively, at cost (237,387) (237,387) Retained
earnings 172,137 130,895 Accumulated other comprehensive income
(loss) 657 (2,317) --- ------ Total stockholders' equity 189,494
113,777 ------- ------- Total liabilities and stockholders' equity
$330,658 $306,361 ======== ======== SYNAPTICS INCORPORATED
Computation of Basic and Diluted Net Income Per Share (in thousands
except per share data) (Unaudited) Three Months Ended Nine Months
Ended March 31, March 31, --------- --------- 2009 2008 2009 2008
---- ---- ---- ---- Numerator: Basic and diluted net income $6,086
$3,008 $41,242 $28,466 Denominator: Shares, basic 34,062 37,140
33,845 38,898 Effect of dilutive share-based awards 1,181 813 1,446
1,803 ----- --- ----- ----- Shares, diluted 35,243 37,953 35,291
40,701 ====== ====== ====== ====== Net income per share: Basic
$0.18 $0.08 $1.22 $0.73 ===== ===== ===== ===== Diluted $0.17 $0.08
$1.17 $0.70 ===== ===== ===== ===== Computation of non-GAAP basic
and diluted net income per share (unaudited): Numerator: Reported
net income $6,086 $3,008 $41,242 $28,466 Non-GAAP adjustments (net
of tax, if applicable): Gain on settlement of debt - - - (2,078)
Gain on early retirement of debt - - (2,133) - Impairment of
investment - - - 4,000 Impairment of auction rate securities
investments 2,894 2,237 9,403 2,237 Share-based compensation 4,391
3,599 12,191 8,040 ----- ----- ------ ----- Non-GAAP basic and
diluted net income $13,371 $8,844 $60,703 $40,665 ======= ======
======= ======= Denominator: Shares, basic 34,062 37,140 33,845
38,898 Effect of dilutive share-based awards 1,181 813 1,446 1,803
----- --- ----- ----- Shares, diluted 35,243 37,953 35,291 40,701
====== ====== ====== ====== Non-GAAP net income per share: Basic
$0.39 $0.24 $1.79 $1.05 ===== ===== ===== ===== Diluted $0.38 $0.23
$1.72 $1.00 ===== ===== ===== ===== DATASOURCE: Synaptics
Incorporated CONTACT: Jennifer Jarman of The Blueshirt Group,
+1-415-217-7722, , for Synaptics Incorporated Web Site:
http://www.synaptics.com/
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