Net revenue for the second quarter of fiscal 2009 was
"In spite of the current macroeconomic environment, we posted the highest
quarterly revenue, net income and earnings per share in our history, driven by
43% revenue growth year-over-year," stated
During the quarter, the Company retired
Synaptics' cash and short-term investments at the end of December, which
excludes
Earnings Call Information
The Synaptics second quarter teleconference and webcast is scheduled to
begin at
About Synaptics Incorporated
Synaptics is a leading developer of human interface solutions for mobile
computing, communications, and entertainment devices. The Company creates
interface solutions for a variety of devices including notebook PCs, PC
peripherals, digital music players, and mobile phones. The TouchPad(TM),
Synaptics' flagship product, is integrated into a majority of today's notebook
computers. Consumer electronics and computing manufacturers use Synaptics'
solutions to enrich the interaction between humans and intelligent devices
through improved usability, functionality, and industrial design. The Company
is headquartered in
NOTE: Synaptics, TouchPad, and the Synaptics logo are trademarks of
Synaptics in
Use of Non-GAAP Financial Information
In evaluating its business, Synaptics considers and uses net income per share excluding share-based compensation and unusual or non-recurring items as a supplemental measure of operating performance. Net income excluding share- based compensation and unusual or non-recurring items is not a measurement of the Company's financial performance under GAAP and should not be considered as an alternative to GAAP net income. The Company presents net income excluding share-based compensation and unusual or non-recurring items because it considers it an important supplemental measure of its performance. The Company believes this measure facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of non-cash compensation charges and unusual or non- recurring items. Net income excluding share-based compensation and unusual or non-recurring items has limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company's GAAP net income. The principal limitations of this measure are that it does not reflect the Company's actual expenses and may thus have the effect of inflating its net income and net income per share.
Forward-Looking Statements
This press release contains "forward-looking" statements about Synaptics,
as that term is defined under the federal securities laws. Synaptics intends
such forward-looking statements to be subject to the safe harbor created by
those laws. Such forward-looking statements include, but are not limited to,
statements regarding Synaptics' anticipated revenue and revenue growth rates;
the success of our growth strategies; its beliefs regarding the markets it
serves; its assessment of its competitive position and opportunities in those
markets; its assessment of market demands and trends in target markets; and
its assessment of consumer demands for various applications. Synaptics
cautions that these statements are qualified by important factors that could
cause actual results to differ materially from those reflected by the forward-
looking statements contained herein. Such factors include, but are not limited
to, (a) demand for Synaptics' products, (b) market demand for OEMs' products
using Synaptics' solutions, (c) changing market demand trends in the markets
it serves, and (d) other risks as identified from time to time in Synaptics'
SEC reports, including Quarterly Reports on Form 10-Q and the Annual Report on
Form 10-K for the fiscal year ended
(Tables to Follow) SYNAPTICS INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) December 31, June 30, 2008 2008 Assets Current assets: Cash and cash equivalents $109,604 $96,218 Short term investments 27,165 50,298 Total cash, cash equivalents, and short-term investments 136,769 146,516 Receivables, net of allowances of $624 and $539, respectively 81,665 69,362 Inventories 22,121 21,065 Prepaid expenses and other current assets 4,626 3,417 Total current assets 245,181 240,360 Property and equipment, net 25,568 22,459 Goodwill 1,927 1,927 Non-current investments 29,443 37,946 Other assets 4,789 3,669 Total assets $306,908 $306,361 Liabilities and stockholders' equity Current liabilities: Accounts payable $27,554 $27,784 Accrued compensation 7,255 6,510 Income taxes payable 5,856 7,095 Convertible senior subordinated notes 65,303 - Other accrued liabilities 13,341 9,120 Total current liabilities 119,309 50,509 Convertible senior subordinated notes - 125,000 Other liabilities 19,338 17,075 Commitments and contingencies Stockholders' equity: Preferred stock; $.001 par value; 10,000,000 shares authorized; no shares issued and outstanding - - Common stock; $.001 par value; 60,000,000 shares authorized; 42,961,996 and 42,500,535 shares issued, and 33,873,896 and 33,412,435 43 43 shares outstanding, respectively Additional paid in capital 242,232 222,543 Less: 9,088,100 and 9,088,100 treasury shares, respectively, at cost (237,387) (237,387) Retained earnings 166,051 130,895 Accumulated other comprehensive loss (2,678) (2,317) Total stockholders' equity 168,261 113,777 Total liabilities and stockholders' equity $306,908 $306,361 SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2008 2007 2008 2007 Net revenue $141,523 $98,650 $257,380 $185,342 Cost of revenue (1) 83,717 57,605 152,981 108,833 Gross margin 57,806 41,045 104,399 76,509 Operating expenses Research and development (1) 15,940 11,693 31,745 22,095 Selling, general, and administrative (1) 13,714 11,415 28,284 22,165 Total operating expenses 29,654 23,108 60,029 44,260 Operating income 28,152 17,937 44,370 32,249 Interest income 974 3,013 2,232 6,008 Interest expense (321) (449) (770) (924) Gain on settlement of debt - - - 2,689 Gain on early retirement of debt 3,600 - 3,600 - Impairment of investment - - - (4,000) Impairment of auction rate securities investments (6,509) - (6,509) - Income before income taxes 25,896 20,501 42,923 36,022 Provision for income taxes (2) 4,699 6,305 7,767 10,564 Net income $21,197 $14,196 $35,156 $25,458 Net income per share: Basic $0.63 $0.35 $1.04 $0.64 Diluted $0.60 $0.33 $1.00 $0.61 Shares used in computing net income per share: Basic 33,833 40,241 33,736 39,779 Diluted 35,057 42,480 35,311 42,030 (1) Includes share-based compensation charges of: Cost of revenue $402 $350 $813 $589 Research and development 1,962 1,588 3,978 2,759 Selling, general, and administrative 3,292 2,547 6,746 4,466 $5,656 $4,485 $11,537 $7,814 (2) Includes tax benefit for share-based compensation charges of: $1,769 $1,676 $3,737 $3,373 Non-GAAP net income per share Basic $0.87 $0.42 $1.40 $0.80 Diluted $0.84 $0.40 $1.34 $0.76 SYNAPTICS INCORPORATED Computation of Basic and Diluted Net Income Per Share (in thousands except per share data) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2008 2007 2008 2007 Numerator: Basic and diluted net income $21,197 $14,196 $35,156 $25,458 Denominator: Shares, basic 33,833 40,241 33,736 39,779 Effect of dilutive share-based awards 1,224 2,147 1,575 2,251 Effect of convertible notes - 92 - - Shares, diluted 35,057 42,480 35,311 42,030 Net income per share: Basic $0.63 $0.35 $1.04 $0.64 Diluted $0.60 $0.33 $1.00 $0.61 Computation of non-GAAP basic and diluted net income per share (unaudited): Numerator: Reported net income $21,197 $14,196 $35,156 $25,458 Non-GAAP adjustments (net of tax): Gain on settlement of debt - - - (2,078) Impairment of investment - - - 4,000 Gain on early retirement of debt (2,133) - (2,133) - Impairment of auction rate security investments 6,509 - 6,509 - Share-based compensation 3,887 2,809 7,800 4,441 Non-GAAP basic and diluted net income 29,460 17,005 47,332 31,821 Denominator: Shares, basic 33,833 40,241 33,736 39,779 Effect of dilutive share-based awards 1,224 2,147 1,575 2,251 Effect of convertible notes - 92 - - Shares, diluted 35,057 42,480 35,311 42,030 Non-GAAP net income per share: Basic $0.87 $0.42 $1.40 $0.80 Diluted $0.84 $0.40 $1.34 $0.76 For more information contact: Jennifer Jarman The Blueshirt Group 415-217-7722 jennifer@blueshirtgroup.com
SOURCE Synaptics Incorporated