UPDATE: Synaptics (SYNA) Tops Q2 EPS by 21c, Revenues Beat; Offers Q3 Revenues Guidance Below Consensus
Synaptics (NASDAQ: SYNA) reported Q2 EPS of $1.55, $0.21 better than the analyst estimate of $1.34. Revenue for the quarter came in at $425.5 million versus the consensus estimate of $422.02 million.
- Revenue of $425.5 million
- GAAP net income per diluted share of $0.36
- Non-GAAP net income per diluted share of $1.55, up 40% year-over-year
- Continued stock repurchase activity with buyback of 988,000 shares
- Company announces CFO transition
“Synaptics posted very strong second quarter results and a positive first half of fiscal 2019, marking the sixth consecutive quarter of non-GAAP gross margin improvement and another period of accelerated growth in non-GAAP earnings per share, which was up 40% over the prior year despite unfavorable market conditions,” stated Rick Bergman, President and CEO. “Our increased operating leverage is a result of the smart decisions we have made as we transition to a more diversified company with a broader product line and customer base. While we expect the first half of calendar 2019 to be impacted by weaker demand trends in some of our end-markets, we anticipate a stronger back half of the year as we continue to focus on executing to our Synaptics 3.0 strategy, with growth driven by our strategic investments in our three key product areas, IoT, OLED and automotive.”
Synaptics also announced that as of February 7, 2019, Senior Vice President and Chief Financial Officer Wajid Ali is leaving in order to accept an executive-level position at another publicly-held company. Mr. Ali’s resignation to pursue other opportunities is not a result of any disagreement with the Company or any matter relating to the Company’s operations, accounting or other policies, or practices. Kermit Nolan has been promoted to Corporate Vice President, Chief Accounting Officer and Interim Chief Financial Officer. Mr. Nolan has served in various accounting, tax and finance roles since he joined Synaptics nearly 15 years ago, most recently as Vice President and Corporate Controller. The Company has commenced a search for a new Chief Financial Officer. Both Mr. Ali and Mr. Nolan will participate on today’s earnings call.
“On behalf of the Board, I’d like to thank Wajid for his numerous contributions to Synaptics over the last several years,” concluded Mr. Bergman.
Mr. Nolan added, “Considering our backlog of $255 million entering the March quarter, subsequent bookings, customer forecasts and product sell-in and sell-through timing patterns, and the resulting expected product mix, we anticipate revenue for the third quarter of fiscal 2019 to be in the range of $340 to $380 million. Based on this guidance, we expect the revenue mix from mobile, IoT and PC products to be approximately 62 percent, 20 percent and 18 percent, respectively.”
Synaptics (NASDAQ: SYNA) sees Q3 revenues of $340-$380 million, versus consensus of $392.36 million.
For earnings history and earnings-related data on Synaptics (SYNA) click here.