SAN JOSE, Calif., April 14, 2025 (GLOBE NEWSWIRE) -- Synaptics® Incorporated (NASDAQ:SYNA) today announced its S3930 series breakthrough touch controllers purpose-built to meet the unique technical challenges and high-performance demands of foldable OLED mobile device displays. The S3930's innovative approach delivers exceptional responsiveness, accuracy, and energy efficiency for the thin, larger panels used in a new generation of foldable devices, a market growing at 42% (CAGR).1 "Foldable OLED large pane ...

Core Insights - Synaptics has launched the S3930 series touch controllers designed for foldable OLED mobile device displays, addressing the unique technical challenges of this rapidly growing market, which is expanding at a 42% CAGR [1][2]. Technology Innovations - The S3930 series incorporates innovations to mitigate challenges such as high background capacitance and extreme display noise, enhancing touch responsiveness and accuracy [2][3]. - Key technology includes multi-frequency-region parallel sensing (MFRPS), which reduces the sensing bursts needed for large touch sensors, making the sensing process more efficient and cost-effective [3]. Processor and Performance - The S3930 features an upgraded processor, the E7 MCU core from Si-Five, and Synaptics' Hydra vector co-processor, enabling effective handling of complex algorithms for noise removal and mistouch mitigation [4]. - The Hydra vector co-processor is specifically designed to accelerate machine learning algorithms that require extensive matrix arithmetic [4]. Design and Optimization - The design of the S3930 supports larger OLED panels, including LTPO and polarizer-less options, while allowing for ultra-narrow bezels, contributing to thinner and lighter devices [5]. - The S3930 has a compact footprint of 5.1 × 6.8 mm, providing more space for additional features like larger batteries in device designs [5]. Availability and Market Impact - The S3930 series is currently in the sampling phase, with mass production expected to begin in July 2025, and multiple OEMs and LCMs are evaluating it for next-generation devices [6].

Core Insights - Synaptics has launched the SYN461x family of ultra-low-power SoCs, targeting a market opportunity of approximately $3.2 billion, optimized for embedded Edge AI IoT applications [1][3] - The SYN461x family enhances the Veros™ Triple Combo connectivity portfolio, featuring Wi-Fi, Bluetooth, and Zigbee capabilities, designed for various consumer and industrial applications [1][4] Product Features - The SYN461x supports tri-band Wi-Fi across 2.4, 5, and 6 GHz, low-power Bluetooth/BLE with advanced features, and IEEE 802.15.4 (Thread/Zigbee) for seamless interoperability [5] - It delivers reliable connectivity of up to 50 Mbps while extending battery life and maximizing range, with a low-density packaging option that reduces board costs by 25% [4][5] Market Positioning - The introduction of the SYN461x is seen as a strategic move to capture a significant share of the growing low-power IoT market, leveraging Synaptics' expertise in wireless connectivity and AI [3][4] - The product is positioned to meet the diverse connectivity needs of various low-power IoT applications, emphasizing the importance of domain expertise in this sector [4]

Core Insights - Synaptics has launched the SR-Series high-performance adaptive microcontroller units (MCUs) as an extension of its Astra AI-Native platform, aimed at scalable context-aware Edge AI applications [1][3] - The SR-Series includes three tiers of operation: performance (100 GOPS), efficiency, and ultra-low-power (ULP) always-on (AON), designed to deliver intelligence across various power levels [1][3] - The MCUs are optimized for multimodal Internet of Things (IoT) workloads, featuring a rich set of peripherals and supporting integration into devices like security cameras, sensors, and digital signage [1][4] Technical Highlights - The SR-Series consists of three MCUs: SR110, SR105, and SR102, all utilizing a Cortex-M55 core with Arm Helium technology running up to 400 MHz [4] - The SR110 includes a Cortex-M4 core and Arm Ethos-U55 NPU, while the SR105 and SR102 have varying configurations of the Ethos-U55 NPU and Cortex-M55 core [4][6] - The Machina Micro kit provides an "out-of-the-box" AI development experience, catering to both beginners and experts [4] Market Implications - The introduction of ultra-low-power AI processing at the edge is expected to revolutionize applications in retail and smart home sectors, addressing increasing performance demands [3] - The SR-Series aims to enhance situational awareness in intelligent edge devices through scalable multimodal processing solutions [3]

Core Insights - Synaptics has launched the SR-Series high-performance adaptive microcontroller units (MCUs) as an extension of its Astra AI-Native platform, aimed at enhancing the development of low-power, cognitive IoT devices [1][3] - The SR-Series features three operational tiers: performance (100 GOPS), efficiency, and ultra-low-power (AON), designed to deliver intelligence across various power levels [1][3] - The MCUs are based on an Arm Cortex-M55 core and Arm Ethos-U55 neural processing unit, optimized for multimodal IoT workloads, and include a rich set of peripherals to minimize system costs and power [1][4] Product Features - The SR-Series includes three models: SR110, SR105, and SR102, each tailored for different multimodal application requirements, all utilizing a Cortex-M55 core with Arm Helium technology [4] - The SR110 features a Cortex-M4 core and is currently sampling, while the SR105 and SR102 focus on the Ethos-U55 NPU and Cortex-M55 core respectively [4] - Key features include up to 4 MB of system memory, streaming vision and audio processing capabilities, and low-power image signal processing [5] Market Impact - The introduction of the SR-Series is expected to revolutionize applications in retail and smart home sectors by enabling ultra-low-power AI processing at the edge [3] - The platform aims to redefine human-machine interaction through multimodal processing and contextual awareness, addressing the growing performance demands in intelligent edge devices [3][6] - Synaptics positions itself as a leader in AI at the Edge, enhancing user engagement with intelligent connected devices across various environments [6]

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]