Core Insights - Synaptics reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and showing an increase from $0.53 per share a year ago, representing an earnings surprise of 5.88% [1][2] - The company achieved revenues of $266.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.58% and increasing from $237.3 million year-over-year [2] - Synaptics has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Synaptics' stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.94, with expected revenues of $276.19 million, and for the current fiscal year, the estimate is $3.52 on $1.07 billion in revenues [7] Industry Context - The Electronics - Semiconductors industry, to which Synaptics belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Financial Data and Key Metrics Changes - Revenues increased by 12% year over year to $267 million, slightly above the midpoint of guidance [8] - Non-GAAP gross margin was 53.5%, in line with guidance [21] - Non-GAAP EPS grew 70% year over year to $0.90, exceeding guidance [8][21] - Non-GAAP net income for Q3 was $35.3 million [21] - Cash and short-term investments decreased to approximately $421.4 million, down $174.7 million from the prior quarter [22] Business Line Data and Key Metrics Changes - Core IoT product sales increased 43% year over year to $68 million, driven by strong demand and new design wins [9][20] - Enterprise and automotive product revenues improved 14% year over year but decreased 3% sequentially, mainly due to softness in automotive [20] - Mobile product revenues decreased 4% sequentially and 18% year over year due to product shipments reaching end of life [20] Market Data and Key Metrics Changes - The revenue mix for Q3 was 25% core IoT, 58% enterprise and automotive, and 17% mobile products [20] - The company noted lean customer and channel inventories, indicating healthy demand trends [10] Company Strategy and Development Direction - The company is focused on technology innovation, market expansion, and operational excellence to position for long-term success [11] - The launch of new products, including Wi-Fi 7 devices and AI-native processors, aims to capture new market opportunities [12][14] - The company is investing in go-to-market initiatives and expanding its business development and sales teams [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current demand trends and backlog levels, despite uncertainties related to tariffs [40][41] - The company anticipates June revenues to be approximately $280 million at the midpoint, reflecting continued growth [24] - Management highlighted the importance of monitoring macroeconomic conditions and their potential impact on future demand [24][41] Other Important Information - The company returned approximately $128 million to shareholders through share repurchases in the fiscal year [22] - The company is navigating challenges in the automotive sector but expects long-term growth from OLED screen adoption [18] Q&A Session Summary Question: What drove the strength in core IoT in both the quarter and the guide? - Management indicated that strong demand from existing products and the ramp of Wi-Fi 7 contributed to the growth, with expectations of an additional $10 million per quarter from the Broadcom acquisition [30][31] Question: Do you see incremental opportunities to win versus FPGA-based solutions? - Management noted a competitive advantage with lower cost and power-efficient solutions, enhancing user experience [32][34] Question: Has there been any impact from tariff-related macro concerns? - Management confirmed strong performance and healthy backlog levels, with ongoing monitoring of potential tariff impacts [40][41] Question: Can you discuss the Broadcom acquisition and its impact? - The acquisition is expected to open new market opportunities and enhance the company's long-term growth potential [54] Question: What is the competitive landscape for Wi-Fi 7 in IoT applications? - The company is the first to introduce Wi-Fi 7 for IoT, focusing on low power consumption and advanced processing techniques [59] Question: When will there be synchronized growth in end markets? - Management expects continued growth in core IoT, with enterprise and automotive markets showing potential for recovery [68]

Financial Data and Key Metrics Changes - Revenues increased 12% year over year to $267 million, slightly above the midpoint of guidance [6][18] - Non-GAAP gross margin was 53.5%, in line with guidance [6][20] - Non-GAAP EPS grew 70% year over year to $0.90, exceeding guidance [6][20] - Non-GAAP operating margin was 15.6%, up approximately 270 basis points year over year [20] Business Line Data and Key Metrics Changes - Core IoT product sales increased 43% year over year to $68 million, driven by strong demand and new design wins [6][19] - Enterprise and automotive product revenues improved 14% year over year but were down 3% sequentially, mainly due to softness in automotive [19] - Mobile product revenues decreased 4% sequentially and 18% year over year due to end-of-life shipments to a large customer [19] Market Data and Key Metrics Changes - Revenue mix for Q3 was 25% core IoT, 58% enterprise and automotive, and 17% mobile products [19] - The company noted lean customer and channel inventories, indicating healthy demand trends [9] Company Strategy and Development Direction - The company is focused on technology innovation, market expansion, and operational excellence to position for long-term success [10][24] - Investments in go-to-market initiatives and business development are being made to drive growth in the edge AI IoT market [14][69] - The launch of Wi-Fi 7 and new processor products is expected to open significant market opportunities [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current demand environment, with healthy backlog and bookings [38][40] - The potential indirect impacts of tariffs on future demand and supply chains remain a concern [23][39] - The company anticipates Q4 revenues to be approximately $280 million at the midpoint, reflecting continued growth [23][24] Other Important Information - The company ended the quarter with approximately $421.4 million in cash and short-term investments, down from the previous quarter [21] - Capital expenditures were $5.4 million, and depreciation for the quarter was $7.2 million [22] Q&A Session Summary Question: What drove the strength in core IoT in both the quarter and the guide? - The strength was driven by wireless growth, with expectations of $10 million per quarter from the Broadcom acquisition [28][29] Question: Do you see incremental opportunities to win versus FPGA based solutions with UPD? - The company has gained significant share with major OEMs and has a lower cost, more power-efficient solution compared to FPGAs [31][32] Question: Has there been any impact from tariff-related macro concerns? - There has been no direct impact yet, but the uncertainty around tariffs could affect future demand [38][48] Question: Where are the share gains coming from in the PC market? - Share gains are coming from working with major OEMs like Dell, HP, and Lenovo, driven by innovation and quality [41][42] Question: What is the status of the Broadcom acquisition? - The acquisition is expected to open new market opportunities and is integrated into the core IoT business [52] Question: How does the competitive landscape look for Wi-Fi 7 in IoT applications? - The company is the first to introduce Wi-Fi 7 for IoT, focusing on low power consumption and advanced processing techniques [57] Question: When will synchronized growth in end markets be expected? - Core IoT is expected to continue leading growth, while enterprise and automotive markets are showing mixed trends [66][68]

Financial Performance - The company's Q3'25 revenue reached $267 million, a 12% increase year-over-year[13] - Core IoT revenue experienced substantial growth, increasing by 43% year-over-year[14] - Non-GAAP diluted earnings per share (EPS) showed a significant rise of 70% year-over-year, reaching $0.90[14] - Non-GAAP gross margin stood at 53.5% in Q3'25[6] - The company repurchased approximately 546,000 shares for $37.9 million[14] Business Segments - Core IoT contributed $68 million to the total revenue in Q3'25[13] - Enterprise & Auto segment generated $154 million in revenue during Q3'25[13] - Mobile segment accounted for $45 million of the total revenue in Q3'25[13] Q4'FY25 Guidance - The company projects revenue of $280 million, with a variance of ± $15 million[30] - The company anticipates a Non-GAAP gross margin of 53.5%, with a variance of ± 1.0%[30] - The company expects Core IoT to account for 30% of the revenue mix, Enterprise & Auto for 54%, and Mobile for 16%[30]

Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 000-49602 ______________________________________________________________________________________________________ SYNAPTICS INCORPORATED (Exact name of registrant as specified in its charter) _________________ ...

Synaptics Third Quarter Fiscal 2025 Results [Financial Highlights and Business Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Outlook) The company reported solid Q3 FY2025 results with significant revenue growth driven by Core IoT products and provided a positive outlook for Q4 [Q3 Fiscal 2025 Performance](index=1&type=section&id=Q3%20Fiscal%202025%20Performance) Revenue grew 12% year-over-year to $266.6 million, driven by a 43% surge in Core IoT product sales Q3 Fiscal 2025 Performance | Metric | Value | | :--- | :--- | | Net Revenue | $266.6 million | | GAAP Gross Margin | 43.4% | | Non-GAAP Gross Margin | 53.5% | | GAAP Loss per Share | ($0.56) | | Non-GAAP Diluted EPS | $0.90 | - Total revenue increased by **over 12% year-over-year**, marking the fourth consecutive quarter of YoY growth[2](index=2&type=chunk)[4](index=4&type=chunk) - Growth was driven by **Core IoT products**, which grew **43% year-over-year** and constituted **25% of total sales**[2](index=2&type=chunk)[4](index=4&type=chunk) - The company generated **over $74 million in cash flow** from operations during the third quarter[5](index=5&type=chunk) - Approximately **546,000 shares were repurchased** for **$37.9 million**[6](index=6&type=chunk) [Q4 Fiscal 2025 Outlook](index=1&type=section&id=Q4%20Fiscal%202025%20Outlook) The company projects continued revenue growth for Q4, with revenue expected to be in the range of $280 million ± $15 million - The fourth-quarter guidance reflects **improving demand trends**, with expectations of both sequential and year-over-year revenue growth[5](index=5&type=chunk) Q4 Fiscal 2025 Guidance | Metric | GAAP Guidance | Non-GAAP Guidance | | :--- | :--- | :--- | | Revenue | $280M ± $15M | N/A | | Gross Margin | 42.5% ± 2.0% | 53.5% ± 1.0% | | Operating Expense | $150M ± $4M | $103M ± $2M | | Earnings (loss) per share | ($0.68) ± $0.30 | $1.00 ± $0.20 | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Financial statements show YoY revenue growth but a higher net loss, with a significant decrease in cash due to acquisitions and financing activities [Condensed Consolidated Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 revenue increased year-over-year, but a higher operating loss was driven by an intangible asset impairment charge Condensed Consolidated Statements of Income (In millions, except per share) | (In millions, except per share) | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Net revenue | $266.6 | $237.3 | | Gross margin | $115.8 | $110.3 | | Operating loss | $(26.3) | $(17.4) | | Net loss | $(21.8) | $(18.1) | | Basic loss per share | $(0.56) | $(0.46) | - The company recorded a **$13.8 million intangible asset impairment charge** in Q3 2025, which was not present in the prior year's quarter[31](index=31&type=chunk)[32](index=32&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased primarily due to a significant reduction in cash and cash equivalents, while liabilities fell from debt reduction Condensed Consolidated Balance Sheets (In millions) | (In millions) | March 2025 | June 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $360.4 | $876.9 | | Total current assets | $712.6 | $1,162.3 | | Total assets | $2,554.3 | $2,825.0 | | Long-term debt | $834.2 | $966.9 | | Total liabilities | $1,167.3 | $1,358.2 | | Total stockholders' equity | $1,387.0 | $1,466.8 | [Condensed Consolidated Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Cash%20Flows) Operating activities generated cash, but this was offset by significant cash usage for acquisitions, debt repayment, and stock repurchases Condensed Consolidated Cash Flows (In millions) | (In millions) | Nine Months Ended March 2025 | Nine Months Ended March 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $84.8 | $70.9 | | Net cash used in investing activities | $(289.0) | $(146.7) | | Net cash used in financing activities | $(313.0) | $(20.4) | | Net decrease in cash and cash equivalents | $(516.5) | $(96.6) | - Key uses of cash in the nine-month period included **$198.8 million for a business acquisition**, **$112.3 million for stock repurchases**, and **$583.5 million for debt repayment**[36](index=36&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details adjustments from a GAAP net loss of $21.8 million to a non-GAAP net income of $35.3 million for Q3 FY2025 Q3 FY2025 GAAP Net Loss to Non-GAAP Net Income Reconciliation (In millions) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(21.8)** | | Acquisition and integration related costs | $32.8 | | Share-based compensation | $19.9 | | Intangible asset impairment | $13.8 | | Other adjustments (Restructuring, Legal, etc.) | $1.3 | | Non-GAAP tax adjustments | $(11.4) | | **Non-GAAP net income** | **$35.3** | Q3 FY2025 GAAP EPS to Non-GAAP EPS Reconciliation | Description | Per Share Amount | | :--- | :--- | | **GAAP net loss per share** | **$(0.56)** | | Adjustments (Acquisition, SBC, Impairment, etc.) | $1.75 | | Non-GAAP tax adjustments | $(0.29) | | **Non-GAAP net income per share - diluted** | **$0.90** | [Use of Non-GAAP Financial Information](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) The company utilizes non-GAAP measures to provide a clearer view of core operating performance by excluding certain non-recurring or non-cash items - The company uses Non-GAAP measures to supplement GAAP results, believing they provide a better view of **core operating performance** by excluding certain items[13](index=13&type=chunk) - Key adjustments include **acquisition and integration-related costs**, such as amortization of purchased intangibles and legal costs associated with acquisitions[14](index=14&type=chunk)[15](index=15&type=chunk) - **Share-based compensation** is excluded because it is a non-cash expense and its amount can vary based on market forces beyond the company's control[16](index=16&type=chunk) - Other excluded items are **intangible asset impairment charges**, restructuring costs, site remediation accruals, and legal settlements[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Forward-looking statements, including financial guidance, are subject to significant risks and uncertainties that could impact actual results - The press release contains forward-looking statements, including **financial guidance for Q4 FY2025**, which are not guarantees of future performance[25](index=25&type=chunk) - Key risks that could impact future results include **macroeconomic uncertainties**, supply chain disruptions, dependence on large customers, and industry cyclicality[25](index=25&type=chunk) - The company also highlights risks related to **global and geopolitical tensions**, the ability to retain key personnel during a **CEO transition**, and the ability to realize benefits from its transaction with Broadcom[25](index=25&type=chunk)

Core Financial Results - Synaptics reported net revenue of $266.6 million for Q3 fiscal 2025, representing a year-over-year increase of over 12% [2][3] - The GAAP net loss for the quarter was $21.8 million, equating to a loss of $0.56 per basic share, while the non-GAAP net income was $35.3 million, or $0.90 per diluted share [2][6] Business Performance - The growth was primarily driven by Core IoT products, which saw a 43% year-over-year increase and accounted for 25% of total sales [3] - The company launched several new products during the quarter, including Wi-Fi 7 solutions and next-generation Touch controllers, enhancing its portfolio for long-term growth [3] Future Outlook - The company anticipates improving demand trends for Q4 fiscal 2025, with expectations of both sequential and year-over-year revenue growth [4] - Synaptics generated over $74 million in cash flow from operations in Q3, indicating strong underlying business strength [4] Financial Guidance for Q4 - For Q4 fiscal 2025, Synaptics expects revenue in the range of $280 million ± $15 million, with a GAAP gross margin of approximately 42.5% ± 2.0% and a non-GAAP gross margin of 53.5% ± 1.0% [5][6] - Projected non-GAAP earnings per share is expected to be around $1.00 ± $0.20, while GAAP loss per share is projected at ($0.68) ± $0.30 [5][6] Share Repurchase and Cash Flow - The company repurchased approximately 546,000 shares for $37.9 million during the quarter [6] - The balance sheet remains strong, with cash and cash equivalents totaling $360.4 million at the end of March 2025 [26]

Core Insights - Synaptics and Murata Manufacturing are collaborating to create a next-generation turnkey wireless connectivity module specifically for automotive Tier 1 suppliers and OEMs [1] - The partnership will leverage Synaptics' Veros™ Wi-Fi and Bluetooth combo systems on chips (SoCs), which are designed for high performance, low cost, and low power consumption in automotive applications [1][2] Company Overview - Synaptics is focused on innovation in AI at the Edge, enhancing user engagement with intelligent connected devices across various environments [4] - The company offers a range of solutions including Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions [4] - Murata Manufacturing is a leader in the design and manufacture of ceramic-based passive electronic components and communication modules, committed to advanced electronic materials and high-density modules [5] Product Development - Synaptics' Veros portfolio includes products like SYN4383 (Wi-Fi 6E) and SYN4384 (Wi-Fi 7), which are compatible and offer software upgradability [2] - The SYN4390 product provides high-throughput Wi-Fi 7 capabilities for automotive applications, indicating a solid wireless roadmap for future innovations [2] - The collaboration aims to combine Synaptics' SoCs with Murata's expertise in compact and reliable module design, enhancing the performance and integration of wireless modules for the automotive market [3]

Core Insights - Synaptics has launched its first family of Wi-Fi 7 systems-on-chips (SoCs) for IoT, including the SYN4390 and SYN4384, which support bandwidths up to 320 MHz and deliver peak speeds of 5.8 Gbps with low latency [1][3][4] - The new SoCs integrate Wi-Fi 7 with Bluetooth 6.0 and Zigbee/Thread, designed to minimize system costs and power consumption while enhancing user experiences across various applications [1][2][4] - ABI Research forecasts that annual shipments of Wi-Fi 7 chipsets will exceed 2 billion by 2029, with a compound annual growth rate (CAGR) of 56% from 2024 to 2029 [3] Product Features - The Wi-Fi 7 IoT family supports Matter and features a triple combo design, enabling interoperability across Wi-Fi, Bluetooth, and Zigbee/Thread networks [5] - The SYN4390 is currently available for sale, while the SYN4384 is available in limited quantities for evaluation [5] - Key specifications include peak speeds of up to 5.8 Gbps, 320 MHz channel bandwidth, integrated RF front-end, and power management IC to reduce system costs and power consumption [6] Market Opportunity - The growing adoption of Wi-Fi 7 in wireless networking infrastructure presents significant opportunities for diverse Wi-Fi 7-enabled IoT devices [3][4] - Synaptics aims to provide a versatile solution for high-performance, low-power IoT devices, facilitating the development of next-generation connected and AI-enriched IoT products [3][4] - The expansion of Wi-Fi 7 across multiple IoT segments is expected to reach billions of annual device shipments in the coming years [4]

SAN JOSE, Calif., April 15, 2025 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (Nasdaq: SYNA) today announced that it will report financial results for the third quarter of fiscal 2025 on Thursday, May 8, 2025, after the market closes. The Company will host a corresponding conference call for analysts and investors at 2:00 p.m. PT (5:00 p.m. ET), to discuss the results. To participate on the live call, analysts and investors should pre-register at Synaptics Q3 FY2025 Earnings Call Registration.https://registe ...