Financial Data and Key Metrics Changes - Revenue for the September quarter was $237.7 million, a 5% increase compared to the previous quarter and above the midpoint of prior guidance [14][35] - Year-over-year revenue decreased by 47%, indicating a significant decline compared to the same quarter last year [34] - Non-GAAP net income for the September quarter was $20.3 million, a 4% increase from the prior quarter but an 85% decrease year-over-year [18][34] - GAAP net loss for the quarter was $55.6 million, translating to a GAAP net loss of $1.43 per share [18] Business Line Data and Key Metrics Changes - Core IoT revenue increased by 15% sequentially but was down 66% year-over-year, indicating a significant inventory accumulation that is nearing depletion [15] - Enterprise revenue was up 9% sequentially but down 47% year-over-year, driven by recovery in PC product shipments [35] - Mobile product revenue decreased by 15% sequentially and 10% year-over-year, with modest improvements in Android shipments [16] Market Data and Key Metrics Changes - The Enterprise & Automotive segment saw a sequential revenue increase of 9%, primarily due to improved PC product shipments [35] - The Mobile end market remains volatile, with two customers contributing over 10% of revenue [36] Company Strategy and Development Direction - The company is focused on executing Core IoT opportunities and expanding its addressable market, with multiple design wins and new product introductions [13][27] - The company anticipates a recovery starting in calendar 2024, with expectations for Enterprise inventories to normalize [13][25] - The introduction of new products, such as the SYN43756E and DVF120, is aimed at enhancing the product portfolio and addressing high-performance IoT applications [8][9] Management's Comments on Operating Environment and Future Outlook - Management believes the business has stabilized and is optimistic about a recovery in 2024, although visibility on the recovery's strength is limited [13][25] - There is confidence that Enterprise inventories will return to normal levels, which should improve overall product mix and margins [13][25] - Management noted that customer interest and design wins remain strong, indicating potential for future growth [12] Other Important Information - The company ended the quarter with $824 million in cash and short-term investments, down from the previous quarter [55] - Cash flow from operations was $45 million, with capital expenditures of $6.7 million [55] Q&A Session Summary Question: Where are the pockets of inventory in the Enterprise segment? - Management indicated that there are still high inventory levels in the Enterprise segment, particularly in docking stations and headsets, but some recovery is expected [21][60] Question: What is the outlook for gross margins? - Management stated that the current gross margin issues are primarily mix-driven, with expectations for improvement as the Enterprise segment recovers [62] Question: How does the rising PC demand correlate with Enterprise recovery? - Management confirmed that the rising PC demand is a solid indicator of Enterprise recovery, as their products are closely tied to corporate spending [72][76] Question: What is the target for inventory days? - Management indicated a target of around 75 days for inventory, but they will be cautious not to cut inventory too aggressively [69][71] Question: How is the company managing operations in Israel amid current challenges? - Management reported that less than 10% of employees have been called to military duty, and they are managing operations effectively by backfilling roles with engineers from other regions [78]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Synaptics reported a significant **47.0%** revenue decline to **$237.7 million**, leading to a **$55.6 million** net loss for the quarter Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | Sep 30, 2023 | June 24, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,548.7** | **$2,611.4** | | Cash and cash equivalents | $801.3 | $924.7 | | Inventories, net | $131.7 | $137.2 | | Goodwill | $816.4 | $816.4 | | **Total Liabilities** | **$1,344.4** | **$1,368.0** | | Long-term debt | $969.6 | $972.0 | | **Total Stockholders' Equity** | **$1,204.3** | **$1,243.4** | Quarterly Performance Comparison (in millions, except per share data) | Metric | Q1 FY2024 (ended Sep 30, 2023) | Q1 FY2023 (ended Sep 24, 2022) | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | $237.7 | $448.1 | (47.0%) | | Gross Margin | $107.1 | $255.7 | (58.1%) | | Operating (Loss) Income | $(35.2) | $112.0 | (131.4%) | | Net (Loss) Income | $(55.6) | $64.6 | (186.1%) | | Diluted (Loss) Income per Share | $(1.43) | $1.59 | (189.9%) | Cash Flow Summary (in millions) | Cash Flow Activity | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 24, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45.4 | $78.5 | | Net cash provided by (used in) investing activities | $(150.1) | $2.3 | | Net cash used in financing activities | $(18.1) | $(35.0) | | **Net (decrease) in cash and cash equivalents** | **$(123.4)** | **$43.8** | - A significant use of cash in investing activities was a **$116.5 million** advance payment on intangible assets and a **$13.5 million** purchase of intangible assets from Broadcom[19](index=19&type=chunk)[34](index=34&type=chunk) Net Revenue by New Product Category (in millions) | Product Category | Q1 FY2024 (ended Sep 30, 2023) | Q1 FY2023 (ended Sep 24, 2022) | | :--- | :--- | :--- | | Enterprise and Automotive | $154.8 | $294.5 | | Core IoT | $38.5 | $113.4 | | Mobile | $44.4 | $40.2 | | **Total** | **$237.7** | **$448.1** | - Effective in Q1 FY2024, the company changed its revenue product categories to Core IoT, Enterprise and Automotive, and Mobile product applications to align with its strategic focus[98](index=98&type=chunk) - During the quarter, the company paid **$130.0 million** to Broadcom to extend an exclusivity period and license technology. Of this, **$13.5 million** was recorded as an intangible asset and **$116.5 million** as a prepayment[24](index=24&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - Total debt outstanding as of September 2023 was approximately **$975.6 million**, comprising **$395.8 million** in Senior Notes and **$579.8 million** under the Term Loan Facility[46](index=46&type=chunk) - A restructuring plan was initiated in Q1 FY2024 to focus on key growth initiatives and reduce costs, resulting in **$8.0 million** in charges for the quarter, primarily for severance[104](index=104&type=chunk)[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **47.0%** revenue decline to broad demand reduction and inventory consumption, impacting gross margin and cash due to a **$130.0 million** intangible asset payment Revenue by Product Application (in millions) | Product Application | Three Months Ended Sep 2023 | Three Months Ended Sep 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Enterprise and Automotive | $154.8 | $294.5 | $(139.7) | (47.4%) | | Core IoT | $38.5 | $113.4 | $(74.9) | (66.0%) | | Mobile | $44.4 | $40.2 | $4.2 | 10.4% | | **Net revenue** | **$237.7** | **$448.1** | **$(210.4)** | **(47.0%)** | - The company is experiencing a broad reduction in demand as customers and channel partners consume their accumulated inventories, with the slowdown expected to potentially extend beyond 2024[124](index=124&type=chunk) - The war in Israel presents a risk due to the company's office and employees in the region, with some employees activated for military duty, which could affect project timing[126](index=126&type=chunk)[201](index=201&type=chunk) - Gross margin decreased by **1,200 basis points** YoY to **45.1%**, primarily due to an increase in the excess obsolescence reserve and a decline in average sales prices, partially offset by revenue from an IP license[130](index=130&type=chunk) - Cash and cash equivalents decreased by **$123.4 million** to **$801.3 million**, mainly due to a **$130.0 million** prepayment for intangible assets paid to Broadcom[139](index=139&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its Term Loan Facility, with a **100 basis point** change impacting quarterly interest expense by approximately **$1.5 million** - The company is exposed to market risk from adverse changes in interest rates on its outstanding Term Loan Facility[157](index=157&type=chunk) - A hypothetical **100 basis point** increase or decrease in the interest rate would change the quarterly interest expense by approximately **$1.5 million**[158](index=158&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[160](index=160&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter[162](index=162&type=chunk) [Part II. Other Information](index=33&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management expects no material adverse effect on its financial condition or operations - The company states that ongoing legal proceedings from the ordinary course of business are not expected to have a material adverse impact[164](index=164&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including customer dependence, supply chain vulnerabilities, geopolitical impacts, substantial indebtedness, and regulatory changes - **Market & Customer Risks:** The company depends on solutions for Core IoT, Enterprise, Automotive, and Mobile markets and relies on a limited number of large customers. Sales to two customers accounted for **29%** of net revenue in Q1 FY2024[166](index=166&type=chunk)[167](index=167&type=chunk) - **Supply Chain Risks:** The company depends on third-party contract manufacturers and semiconductor fabricators, primarily in Asia, and faces risks of shortages of components and materials[187](index=187&type=chunk)[191](index=191&type=chunk) - **Operational & Geopolitical Risks:** The company has employees in Israel, and the ongoing war could disrupt operations due to office closures or employee absence for military service. A number of employees have been activated for military duty[200](index=200&type=chunk)[201](index=201&type=chunk) - **Financial & Debt Risks:** The company's indebtedness could adversely affect its financial condition. The Credit Agreement and Senior Notes contain restrictive covenants that may limit operating and financial flexibility[231](index=231&type=chunk)[233](index=233&type=chunk) - **Acquisition Risks:** The company assumed environmental liabilities from the 2017 acquisition of Conexant Systems, including remediation costs for a former property, and is at risk for future related claims[229](index=229&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Synaptics did not repurchase common stock during the quarter, with **$893.9 million** remaining authorized under its stock repurchase program until July 2025 - The company did not repurchase any shares of its common stock during the quarter ended September 2023[242](index=242&type=chunk) - As of September 2023, **$893.9 million** remained available for repurchase under the company's stock repurchase program[242](index=242&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including corporate documents, credit agreement amendments, and CEO/CFO certifications - Filed exhibits include amendments to the company's credit agreement and equity compensation plan, along with required CEO and CFO certifications[247](index=247&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended June 24, 2023 Or ☐ 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) Delaware 77-0118518 (State or other jurisdiction of i ...

| --- | --- | |------------------------------------------------------------------------|-------| | | | | | | | Fourth Quarter Fiscal 2023 Earnings SUPPLEMENTAL SLIDES AUGUST 3, 2023 | | This presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operati ...

Synaptics Incorporated (NASDAQ:SYNA) Q4 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Munjal Shah - Head, Investor Relations Michael Hurlston - President and CEO Dean Butler - Chief Financial Officer Conference Call Participants Kevin Cassidy - Rosenblatt Securities Christopher Rolland - Susquehanna International Group Nick Doyle - Needham Hadi Orabi - TD Cowen Gary Mobley - Wells Fargo Martin Yang - OpCo Operator Good day and thank you for standing by. Welcome to the Synaptic ...

Synaptics Incorporated (NASDAQ:SYNA) Q3 2023 Earnings Conference Call May 3, 2023 5:00 PM ET Company Participants Munjal Shah - Head of IR Michael Hurlston - President & CEO Dean Butler - CFO Conference Call Participants Kevin Cassidy - Rosenblatt Securities Rajvindra Gill - Needham & Company Anthony Stoss - Craig-Hallum Christopher Rolland - Susquehanna Hadi Orabi - TD Cowen Ashley McCurry - Wells Fargo Martin Yang - Oppenheimer Operator Good day, and thank you for standing by. Welcome to the Synaptics Thi ...

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 March 25, 2023 ☐ 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) (State or other jurisdiction of incorporation or organiz ...

| --- | --- | |--------------------------------------------------------------------------|-------| | | | | | | | Second Quarter Fiscal 2023 Earnings SUPPLEMENTAL SLIDES FEBRUARY 2, 2023 | | This presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations and projections relating to our financial condition, results of ope ...

Synaptics Incorporated (NASDAQ:SYNA) Q2 2023 Earnings Conference Call February 2, 2023 5:00 PM ET Company Participants Munjal Shah - Vice President and Head, Investor Relations Michael Hurlston - President & Chief Executive Officer Dean Butler - Chief Financial Officer Conference Call Participants Kevin Cassidy - Rosenblatt Securities Rajvindra Gill - Needham & Company Anthony Stoss - Craig-Hallum Christopher Rolland - Susquehanna Martin Yang - Oppenheimer Operator Good day and thank you for standing by. We ...

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 24, 2022 ☐ 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) (State or other jurisdiction of incorporation or orga ...