Synaptics(US:SYNA)2024-05-09 20:56Financial Performance - In Q1 fiscal 2024, net revenue decreased to $237.3 million, down 27.3% from $326.6 million in Q1 fiscal 2023[129] - Revenue from Enterprise and Automotive product applications fell by 29.7% to $134.7 million, while Core IoT product applications dropped 49.3% to $47.3 million[129] - Gross margin for Q1 fiscal 2024 was $110.3 million, a decrease of 36.0% compared to $172.3 million in Q1 fiscal 2023[129] - The company reported a net loss of $18.1 million in Q1 fiscal 2024, compared to a net income of $10.4 million in Q1 fiscal 2023, representing a 274.0% decline[129] - Operating loss for Q1 fiscal 2024 was $17.4 million, a significant decrease from an operating income of $34.2 million in Q1 fiscal 2023[129] - Net revenue for the three months ended March 2024 was $237.3 million, a decrease of $89.3 million, or 27.3%, compared to $326.6 million for the same period in 2023[132] - For the nine months ended March 2024, net revenue was $712.0 million, down $415.8 million, or 36.9%, from $1,127.8 million in the same period in 2023[133] - Gross margin for the three months ended March 2024 was 46.5%, a decrease of 630 basis points from 52.8% in the same period in 2023[134] Expenses - Research and development expenses were $83.4 million, down 5.1% from $87.9 million in the prior year[129] - Research and development expenses for the three months ended March 2024 decreased to $83.4 million, down $4.5 million from $87.9 million in the same period in 2023[139] - Selling, general, and administrative expenses for the three months ended March 2024 decreased to $40.5 million, down $1.2 million from $41.7 million in the same period in 2023[141] Cash Flow and Liquidity - Cash and cash equivalents as of March 2024 were $828.1 million, a decrease of $96.6 million from $924.7 million as of June 2023[149] - Operating activities generated $70.9 million in cash for the nine months ended March 2024, compared to $237.0 million for the same period in 2023[151] - Cash used in investing activities during the nine months ended March 2024 was $146.7 million, compared to $28.1 million in the same period in 2023[153] - Cash used in financing activities for the nine months ended March 2024 was $20.4 million, a significant decrease from $134.2 million in the same period of 2023[155] - The company believes existing cash and cash equivalents, along with anticipated cash flows, will be sufficient to meet working capital needs for at least the next 12 months[163] Acquisitions and Investments - The company acquired technology assets from Broadcom for $130.0 million in July 2023[124] - The acquisition of Emza in October 2022 totaled $15.8 million, with results included in consolidated financial statements since the acquisition date[125] - The company has registered $100.0 million of common and preferred stock for issuance related to acquisitions[162] Debt and Obligations - For the nine months ended March 2024, the company paid $8.0 million in interest expense on $400.0 million of senior notes due 2029[158] - The revolving credit facility has a principal amount of up to $250 million, with no outstanding balance as of March 2024[159] - The company repaid $6.0 million of the principal on the $600.0 million term loan facility during the nine months ended March 2024[160] - Total contractual obligations as of March 2024 amounted to $1,466.2 million, with $48.8 million due within one year[165] Market Outlook - The company anticipates a rebound in demand extending into late calendar 2024, despite current macroeconomic uncertainties[127] - Elevated interest rates have increased borrowing costs, potentially limiting future acquisition financing opportunities[127] - A hypothetical 1% increase in interest rates could increase quarterly interest expense by approximately $1.5 million based on the outstanding balance of the term loan as of March 2024[169] - The undistributed earnings of foreign subsidiaries may incur state and foreign taxes if repatriated, impacting cash flows[164] Revenue Breakdown - Net revenue from Enterprise and Automotive product applications for the three months ended March 2024 was $134.7 million, representing 56.8% of total net revenue[132] - Net revenue from Mobile product applications increased to $55.3 million, or 23.3%, for the three months ended March 2024, driven by a 67.5% increase in units sold[132] Stock Repurchase - The common stock repurchase program has a cumulative authorization of $2.3 billion, with $893.9 million remaining as of March 2024[157]