Needham & Company Maintains a 'Hold' on Synaptics (SYNA); Lowering Estimates on Softening Consumer Notebooks and Mixed Handsets

Needham & Company maintains a 'Hold' on Synaptics (NASDAQ: SYNA).

Needham analyst says, "We are lowering our estimates on Synaptics based on softening demand in consumer notebooks and mixed handset sales. SYNA derives 51% of its overall sales from the notebook market, of which the majority is sold to the consumer segment. Recent negative data points from Intel, Taiwanese ODMs and supply-chain participants indicate a material deterioration in end demand in notebooks spanning until 2Q12. On the handset side, we expect mixed results. Given SYNA’s strong relationships with ZTE & Huawei (both N/R), SYNA is benefiting from the proliferation of Android-based China smartphones. However, we think this strength is being offset by weakness at other accounts, including Nokia (NYSE: NOK), RIMM (Nasdaq: RIMM), LG (N/R) & HTC (N/R). While we believe SYNA has done a good job in transforming its business model, we see near-term risks to SYNA’s core business segments."

"We are lowering our near-term estimates for F2Q12 (Dec) and F3Q12 (Mar) to $130.0MM/$0.52 (vs. $145.0MM/$0.68) and $125.0MM/$0.42 (vs. $135.0MM/$0.53), respectively. Our FY12 and FY13 estimates moves to $522.4MM/$2.00 (vs. $565.1MM/$2.47) and $595.0MM/$2.50 (vs. $605.0MM/$2.60), respectively."

For an analyst ratings summary and ratings history on Synaptics click here. For more ratings news on Synaptics click here.

Shares of Synaptics closed at $30.61 yesterday.

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