Synaptics(US:SYNA)2025-11-06 21:30Revenue Performance - Net revenue for the first quarter of fiscal 2026 was $292.5 million, a 13.5% increase from $257.7 million in the same period last year[97]. - Revenue from Core IoT product applications surged by 73.8%, driven by a 64.1% increase in units sold and a 5.9% rise in average selling prices[97][102]. - Revenue from Mobile product applications decreased by 18.4%, primarily due to a $10.5 million drop in licensing revenue despite a 21.4% increase in units sold[97][102]. - The Enterprise and Automotive product line generated $147.7 million, remaining flat compared to the previous year, with a 9.0% increase in units sold offset by an 8.2% decrease in average selling prices[101][102]. Financial Metrics - Gross margin decreased to 42.6% from 46.9% year-over-year, primarily due to increased amortization of acquired intangible assets and reduced revenue from licensing[98][103]. - Operating expenses totaled $147.8 million, a slight decrease from $149.3 million in the prior year, with research and development expenses rising to $94.4 million[101][106]. - Net loss for the quarter was $20.6 million, compared to a net loss of $23.1 million in the same quarter last year[101]. - Interest expense decreased significantly to $5.8 million from $11.7 million in the prior year due to the early repayment of the Term Loan Facility[112]. Cash Flow and Liquidity - Cash and cash equivalents increased to $459.9 million, up $7.4 million from $452.5 million as of June 2025[99]. - As of September 2025, cash and cash equivalents increased to $459.9 million from $391.5 million in June 2025, reflecting a positive cash flow trend[117]. - Cash provided by operating activities for the three months ended September 2025 was $30.2 million, a significant improvement compared to cash used of $11.4 million in the same period last year[119]. - Cash flows from investing activities showed a positive shift with $48.8 million provided, compared to cash used of $9.1 million in the prior year, primarily due to $61.0 million in proceeds from short-term investments[121]. - Financing activities resulted in cash used of $10.4 million for the three months ended September 2025, up from $3.5 million in the same period last year, mainly due to $7.2 million in common stock repurchases[122]. - The company had $350.0 million available under its revolving credit facility with no outstanding balance as of September 2025[123]. Operational Efficiency - Days sales outstanding improved to 37 days in September 2025 from 47 days in September 2024, indicating better collection efficiency[120]. - The company reported a decrease of $31.6 million in accrued liabilities primarily related to annual bonus payments during the three months ended September 2025[119]. Future Outlook - The company continues to monitor global macroeconomic factors and trade policies that may impact its operations and financial performance[100]. - The effective tax rate and cash flows were not materially impacted by the Pillar Two Model Rules or the OBBBA legislation for the first three months of fiscal 2026[114][115]. - The company believes existing cash, anticipated cash flows, and available credit will be sufficient to meet working capital and cash requirements for at least the next 12 months[125]. Commitments - Unconditional purchase commitments totaled $41.1 million as of September 2025, with $27.2 million due for the remainder of fiscal 2026[124].