Core Insights - Synaptics Incorporated will showcase innovations in Edge AI and wireless connectivity at Embedded World 2025, introducing new microcontroller units (MCUs) and wireless systems-on-chips (SoCs) for ultra-low-power IoT devices [1][5] - The new products will enable system designers to integrate ultra-low-power, multimodal processing, contextually aware AI, and reliable wireless connectivity at low system costs, facilitating cognitive IoT applications [2][3] Product Applications - The new devices will support a variety of applications including smartwatches, wearables, consumer audio, appliances, security cameras, asset trackers, and factory automation systems, with features like predictive maintenance and enhanced security [3][6] Event Participation - Synaptics will participate in Embedded World 2025 from March 11-13 at booth 4A-259, where engineers will demonstrate new products and capabilities, including an automotive dashboard display with advanced features [4][5] Company Overview - Synaptics is focused on driving innovation in AI at the Edge, enhancing user engagement with intelligent connected devices across various environments, and providing solutions in touch, display, biometrics, and AI-driven wireless connectivity [6][7]

Core Insights - Synaptics Incorporated is showcasing innovations in Edge AI and wireless connectivity for ultra-low-power IoT devices at Embedded World 2025 [1] - The new products include microcontroller units (MCUs) and wireless systems-on-chips (SoCs) aimed at enhancing cognitive IoT applications [2][3] Product Features - The new devices support a variety of applications including smartwatches, wearables, consumer audio, appliances, security cameras, asset trackers, and factory automation systems [3] - Features include multimodal processing, contextually aware AI, and reliable wireless connectivity at low system costs [2] Event Participation - Synaptics will be present at Embedded World 2025 from March 11-13 at booth 4A-259, offering demonstrations of their latest technologies [5] - Engineers will provide insights into new products and capabilities, including an automotive dashboard display with advanced features [4] Company Overview - Synaptics is focused on driving innovation in AI at the Edge, enhancing user engagement with intelligent connected devices across various environments [6] - The company offers solutions in AI-driven wireless connectivity, multimodal sensing, and various processing technologies [6]

Core Points - Synaptics Incorporated announced the granting of restricted stock unit (RSU) awards to 104 new employees as part of an asset purchase transaction with Broadcom that closed on January 30, 2025 [1][3] - The RSU awards total 1,006,506 units and are intended as a material inducement for the new employees' acceptance of employment with Synaptics [3] - The RSUs will vest 50% on the first anniversary of the grant date, with the remaining 50% vesting quarterly until fully vested on the second anniversary [4] Company Overview - Synaptics is focused on driving innovation in AI at the Edge, enhancing user engagement with intelligent connected devices across various environments [5] - The company serves as a partner for product innovators, providing advanced solutions in AI-native embedded computing, wireless connectivity, and multimodal sensing [5] - Synaptics aims to create smarter, faster, and more intuitive digital experiences through its diverse technology offerings, including touch, display, biometrics, and AI-driven connectivity [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $267.2 million, representing a 4% sequential increase and a 13% year-over-year increase, slightly above the midpoint of guidance [26][37] - Non-GAAP gross margin was 53.6%, slightly above the midpoint of guidance [39] - Non-GAAP EPS increased 61% year-over-year to $0.92, exceeding the midpoint of guidance [41] - Non-GAAP operating margin improved to 17.3%, up approximately 360 basis points year-over-year [40] Business Line Data and Key Metrics Changes - Core IoT product revenues increased 63% year-over-year to $61 million, driven by growth in both processor and wireless products [27][38] - Enterprise and automotive product revenue improved 17% year-over-year and 8% sequentially [38] - Mobile touch product revenue decreased 7% sequentially and 25% year-over-year due to the end of life for shipments to a large US customer [38] Market Data and Key Metrics Changes - The revenue mix for Q2 was 23% core IoT, 59% enterprise and automotive, and 18% mobile touch products [38] - The company is optimistic about enterprise demand for calendar year 2025, driven by new products and potential PC refresh cycles [31] Company Strategy and Development Direction - The company is focused on three key pillars: investing in core product lines, expanding in IoT, and prudent capital allocation [12][14] - The recent $198 million agreement with Broadcom is expected to generate over $40 million in annualized sales and is slightly accretive to non-GAAP EPS [14][15] - The company aims to capitalize on the demand for innovative products and solutions, particularly in the IoT and AI sectors [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth prospects despite a slower growth economic environment, with a path to sequential growth of approximately $10 million per quarter [65][92] - The company highlighted lean inventories and improved visibility compared to six months ago, indicating a positive outlook for the business [65][92] Other Important Information - The company retired its $582 million term loan during the quarter, reducing total debt to $850 million [44] - Cash flow from operations was $24 million, and the company returned approximately $75 million to shareholders through share repurchases [45] Q&A Session Summary Question: How will the $40 million in annualized sales from the Broadcom transaction be allocated? - Management indicated that the sales will fall into the core IoT segment, primarily due to wireless technologies [59] Question: What areas are driving improvement in bookings and orders in enterprise? - Management noted broad improvements, particularly in the peripheral side, and expressed optimism about growth in the enterprise space [60][65] Question: Are there designs in progress in the Android and ARVR markets? - Management confirmed ongoing designs and expected revenue ramp from the Broadcom transaction, particularly in the wireless portfolio [70][73] Question: How does the Google collaboration impact revenue contribution? - Management stated that the Google partnership validates the ASTRA platform but does not change the existing revenue forecast [108] Question: What is the outlook for the automotive space? - Management acknowledged sluggishness in the automotive sector but remains optimistic about long-term potential [67] Question: How does the company plan to expand its presence among Android OEMs? - Management highlighted the complementary portfolio from the Broadcom acquisition, which enhances their ability to service existing customers [172][176]

Core Viewpoint - Synaptics reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and showing a significant increase from $0.57 per share a year ago, indicating strong performance in the touch-screen technology sector [1][2] Financial Performance - The company achieved revenues of $267.2 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.69% and up from $237 million year-over-year [2] - Over the last four quarters, Synaptics has consistently exceeded consensus EPS estimates and revenue expectations [2] Stock Performance and Outlook - Synaptics shares have declined approximately 0.5% year-to-date, contrasting with the S&P 500's gain of 3.1%, raising questions about future stock performance [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.71 on revenues of $254.31 million, and for the current fiscal year, it is $3.27 on revenues of $1.04 billion [7] Industry Context - The Electronics - Semiconductors industry, to which Synaptics belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Synaptics' stock performance [5][6]

Synaptics reported robust earnings for Q2 2025, beating both analyst expectations and its own guidance.Synaptics (SYNA -1.44%), a provider of custom semiconductor solutions, reported impressive results for the second quarter of fiscal 2025 on Feb. 6, 2025. The earnings release highlighted a strong performance driven by the company's Core IoT segment, which achieved a 63% year-over-year growth. The company announced revenue of $267.2 million, surpassing analyst expectations of $265 million while also exceedi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________________________________________________________________ FORM 10-Q ______________________________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 28, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

Q2’25 Financial Results and Recent Business Highlights Revenue of $267.2 millionGAAP gross margin of 45.7 percentNon-GAAP gross margin of 53.6 percentGAAP diluted earnings per share of $0.05Non-GAAP diluted earnings per share of $0.92Signed a new agreement with Broadcom, accelerating our Edge AI strategyRepurchased approximately one million shares for $74.5 million SAN JOSE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its second quarte ...

EXHIBIT 99.1 Synaptics Announces CEO Transition "Michael has left an indelible mark on the company and built a strong foundation for the next phase of our growth," said Ken Rizvi, CFO and Interim CEO. "We have enormous opportunities ahead and I look forward to working closely with the Board and the Synaptics leadership team to execute on our growth roadmap and capitalize on the increasing demand for our products and solutions." In connection with today's announcement, Synaptics released preliminary financia ...

Michael Hurlston Steps Down as President and CEO to Pursue Another OpportunityKen Rizvi, CFO and Senior Vice President, Appointed Interim CEOCompany Reports Preliminary Financial Results for Fiscal Second Quarter 2025 SAN JOSE, Calif., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (Nasdaq: SYNA) today announced a leadership transition under which Michael Hurlston is stepping down as President and Chief Executive Officer and as a member of the Board of Directors, effective immediately. As separat ...