SYNAPTICS Inc SEC 10-Q Report
SYNAPTICS Inc, a leading developer of human interface solutions, has released its Form 10-Q report for the first quarter of fiscal year 2024. The report provides a comprehensive overview of the company's financial performance and operational highlights, showcasing significant improvements in key metrics and strategic business initiatives.
Financial Highlights
Net Revenue: SYNAPTICS Inc reported net revenue of $267.2 million, marking a 12.7% increase compared to the same period last year. This growth was primarily driven by the company's Core IoT and Enterprise and Automotive product applications.
Gross Margin: The gross margin for the quarter was $122.2 million, representing 45.7% of net revenue. Although this reflects a slight decrease in percentage terms compared to the previous year, the company maintained a strong gross margin.
Operating Loss: The company reported an operating loss of $(15.2) million, an improvement of 15.1% from the previous year's operating loss. This indicates better cost management and operational efficiency.
Net Income: SYNAPTICS Inc achieved a net income of $1.8 million, a significant turnaround from a net loss of $9.0 million in the prior year. This improvement was aided by tax benefits and increased revenue.
Net Income Per Share (Basic): The net income per share (basic) was $0.05, compared to a loss of $0.23 per share in the previous year, reflecting the company's improved financial performance.
Business Highlights
Revenue Segments: The company reported revenue from three main product categories: Enterprise and Automotive product applications, Core IoT product applications, and Mobile product applications. Enterprise and Automotive applications accounted for 59.5% of the revenue, Core IoT for 22.9%, and Mobile for 17.6%.
Geographical Performance: Significant revenue contributions came from China/Hong Kong, Taiwan, and Japan. China/Hong Kong accounted for $112.2 million, Taiwan for $77.4 million, and Japan for $43.6 million in revenue for the three months ended December 2024.
Sales Units: There was an increase in units sold for Core IoT and Enterprise and Automotive product applications. Core IoT saw a 20.5% increase in units sold, while Enterprise and Automotive experienced a 22.7% increase.
Future Outlook: SYNAPTICS Inc is focused on key growth initiatives, reducing costs, and aligning its business in response to market conditions. The company expects to complete its restructuring by the end of fiscal 2025, which is anticipated to incur approximately $16.0 million in restructuring charges.
Operational Strategy: The company continues to operate on a variable cost model, outsourcing all production requirements and minimizing inventory investment. This strategy allows for flexibility and reduced capital expenditure.
Impact of Global Events: SYNAPTICS Inc is monitoring the impact of the Israel-Hamas war on its operations, particularly in its Israel office, and has business continuity plans in place to mitigate potential disruptions.
SEC Filing: SYNAPTICS Inc [ SYNA ] - 10-Q - Feb. 06, 2025