Synaptics (NASDAQ: SYNA) reported Q4 EPS of $1.24, $0.18 better than the analyst estimate of $1.06. Revenue for the quarter came in at $277.6 million versus the consensus estimate of $276.02 million.

Q4’20 Financial Results and Recent Business Highlights

• Revenue of $277.6 million
• GAAP Gross Margin of 43.9%; non-GAAP Gross Margin of 46.9%
• GAAP diluted EPS of $2.55; non-GAAP diluted EPS of $1.24
• Record EPS results for full-year FY2020 GAAP and non-GAAP diluted EPS
• Cash and cash equivalents of $763.4 million
• Completed the divestiture of the Company’s Mobile LCD TDDI business
• In July, acquired DisplayLink and the rights to Broadcom’s wireless IoT connectivity business

“Synaptics delivered a strong finish to our fiscal year with fourth quarter revenues exceeding the mid-point of our guidance, gross margins at the high-end of our guidance, and continued improvement in our operational efficiency,” said Michael Hurlston, Synaptics’ president and CEO. “As we look into fiscal 2021, I am excited by the traction we have in our organic business as well as with the new opportunities that our recently closed acquisitions present.”

GUIDANCE:

Synaptics sees Q1 2021 revenue of $315-335 million, versus the consensus of $294.2 million.

On July 23, 2020, the company completed the acquisitions of certain assets and manufacturing rights associated with Broadcom’s wireless IoT connectivity business and on July 31, 2020, completed the purchase of DisplayLink Corp. These newly acquired businesses are now incorporated into our consolidated Q1 fiscal 2021 guidance as of their respective date of close and are part of our IoT business.

Dean Butler, Chief Financial Officer of Synaptics, added, “Fiscal year 2020 was one of the strongest 12-month periods of financial performance in the company’s history with significant margin expansion and a record setting earnings per share. For our first fiscal quarter, we see robust demand for our products and enter the quarter with a strong backlog despite the uncertainties that remain in the macro economy.”

For earnings history and earnings-related data on Synaptics (SYNA) click here.