Financial Data and Key Metrics Changes - Revenues increased by 12% year over year to $267 million, slightly above the midpoint of guidance [8] - Non-GAAP gross margin was 53.5%, in line with guidance [21] - Non-GAAP EPS grew 70% year over year to $0.90, exceeding guidance [8][21] - Non-GAAP net income for Q3 was $35.3 million [21] - Cash and short-term investments decreased to approximately $421.4 million, down $174.7 million from the prior quarter [22] Business Line Data and Key Metrics Changes - Core IoT product sales increased 43% year over year to $68 million, driven by strong demand and new design wins [9][20] - Enterprise and automotive product revenues improved 14% year over year but decreased 3% sequentially, mainly due to softness in automotive [20] - Mobile product revenues decreased 4% sequentially and 18% year over year due to product shipments reaching end of life [20] Market Data and Key Metrics Changes - The revenue mix for Q3 was 25% core IoT, 58% enterprise and automotive, and 17% mobile products [20] - The company noted lean customer and channel inventories, indicating healthy demand trends [10] Company Strategy and Development Direction - The company is focused on technology innovation, market expansion, and operational excellence to position for long-term success [11] - The launch of new products, including Wi-Fi 7 devices and AI-native processors, aims to capture new market opportunities [12][14] - The company is investing in go-to-market initiatives and expanding its business development and sales teams [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current demand trends and backlog levels, despite uncertainties related to tariffs [40][41] - The company anticipates June revenues to be approximately $280 million at the midpoint, reflecting continued growth [24] - Management highlighted the importance of monitoring macroeconomic conditions and their potential impact on future demand [24][41] Other Important Information - The company returned approximately $128 million to shareholders through share repurchases in the fiscal year [22] - The company is navigating challenges in the automotive sector but expects long-term growth from OLED screen adoption [18] Q&A Session Summary Question: What drove the strength in core IoT in both the quarter and the guide? - Management indicated that strong demand from existing products and the ramp of Wi-Fi 7 contributed to the growth, with expectations of an additional $10 million per quarter from the Broadcom acquisition [30][31] Question: Do you see incremental opportunities to win versus FPGA-based solutions? - Management noted a competitive advantage with lower cost and power-efficient solutions, enhancing user experience [32][34] Question: Has there been any impact from tariff-related macro concerns? - Management confirmed strong performance and healthy backlog levels, with ongoing monitoring of potential tariff impacts [40][41] Question: Can you discuss the Broadcom acquisition and its impact? - The acquisition is expected to open new market opportunities and enhance the company's long-term growth potential [54] Question: What is the competitive landscape for Wi-Fi 7 in IoT applications? - The company is the first to introduce Wi-Fi 7 for IoT, focusing on low power consumption and advanced processing techniques [59] Question: When will there be synchronized growth in end markets? - Management expects continued growth in core IoT, with enterprise and automotive markets showing potential for recovery [68]

Synaptics (SYNA) Q3 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good day, and thank you for standing by. Welcome to the Synaptics Inc. Third Quarter Fiscal Year twenty twenty five Financial Results Webcast and Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advi ...