SANTA CLARA, Calif., July 30 /PRNewswire-FirstCall/ -- Synaptics
(NASDAQ: SYNA), a leading developer of human interface solutions
for mobile computing, communications, and entertainment devices,
today reported financial results for the fourth quarter and year
ended June 30, 2009. The Company also announced that Chairman and
Chief Executive Officer, Francis F. Lee, is retiring as CEO. Mr.
Lee will continue to serve as Chairman and will remain involved
with the Company as an advisor to Synaptics' management team.
Thomas J. Tiernan, currently President and Chief Operating Officer,
will succeed Mr. Lee as President and CEO, effective immediately.
The Company's GAAP results reflect the expensing of non-cash
share-based compensation and non-cash impairment charges for the
quarter ended June 30, 2008 and the years ended June 30, 2008 and
June 30, 2009; and a non-cash non-operating gain for the quarter
and year ended June 30, 2009. Net revenue for the fourth quarter of
fiscal 2009 was $115.3 million, an increase of approximately 19%
over $96.9 million of net revenue for the fourth quarter of fiscal
2008. Net income for the fourth quarter of fiscal 2009 was $13.1
million, or $0.36 per diluted share, compared with net income of
$2.6 million, or $0.07 per diluted share, for the fourth quarter of
fiscal 2008. Net income for the fourth quarter of fiscal 2009
included a non-cash non-operating gain of $160,000, and net income
for the fourth quarter of 2008 included a non-cash impairment
charge of $4.7 million, both of which were related to the Company's
investment in auction rate securities. Non-GAAP net income for the
fourth quarter of fiscal 2009 was $17.2 million, an increase of 60%
compared with non-GAAP net income of $10.7 million for the fourth
quarter of fiscal 2008. On a per share basis, non-GAAP net income
was $0.47 per diluted share for the fourth quarter of fiscal 2009,
an increase of 57% compared with net income per diluted share of
$0.30 for the fourth quarter of fiscal 2008. (See attached table
for a reconciliation of GAAP to non-GAAP results.) Net revenue for
fiscal 2009 was $473.3 million, an increase of approximately 31%
over $361.1 million for fiscal 2008. Net income for fiscal 2009 was
$54.3 million, an increase of 75% compared with net income of $31.1
million for fiscal 2008. On a per share basis, net income was $1.53
per diluted share, an increase of 94% compared with net income per
diluted share of $0.79 for fiscal 2008. Non-GAAP net income for
fiscal 2009 was $77.9 million, an increase of 52% compared with
non-GAAP net income of $51.4 million for fiscal 2008. On a per
share basis, non-GAAP net income was $2.19 per diluted share, an
increase of 67% compared with non-GAAP net income per diluted share
of $1.31 for fiscal 2008. (See attached table for a reconciliation
of GAAP to non-GAAP results.) "Fiscal 2009 was another strong year
for Synaptics despite the challenging economic environment, with
record annual revenue and net income growing 31% and 75%,
respectively," stated Mr. Lee. "Our strong performance reflects
solid execution across our key markets and continued progress
towards our diversification strategy based on the expanding
adoption of Synaptics' interface solutions in the mobile phone
market. While the current macro uncertainties are evident in our
customers' order patterns, we are encouraged by our growing
pipeline of design opportunities in both the PC and non-PC markets.
We expect continued growth in fiscal 2010 and will continue to
invest for the future." Kathy Bayless, SVP Finance, added, "As we
look ahead to the first quarter and new fiscal year, our outlook
considers global economic conditions and the dynamic nature of the
markets in which we participate. Based on our current visibility,
customer order patterns, customer forecasts and backlog of $62.8
million exiting the June quarter, we anticipate revenue in the
September quarter will be $113 million to $119 million. As compared
to the prior year quarter, we expect solid growth from mobile phone
applications, while PC based revenue will decline, primarily
reflecting the expected decrease in revenue from multi-media
control applications, as well as a generally lower priced touchpad
product mix. Additionally, our current outlook for fiscal 2010
suggests a revenue range of $495 million to $525 million, with the
first half of the year roughly flat year over year." Synaptics'
cash and short-term investments at the end of June totaled $192.0
million. This balance excludes $28.8 million at book value of
auction rate securities, which are included in non-current assets
on the balance sheet. In the September quarter, the Company
received redemptions of $3.3 million of certain auction rate
securities, resulting in a $160,000 non-cash, non-operating gain.
The company continues to monitor its investments in auction rate
securities in light of the current economic uncertainties. Mr. Lee
added, "Synaptics is stronger and better positioned than at any
time in its history and as I am interested in dedicating more of my
time to my family, my foundation and other charitable and civic
endeavors, I feel this is the right time for me to step down as
CEO. Tom and I have worked closely together to spearhead the
company's growth over the past three years, and the Board and I
have confidence in Tom's ability to lead the company through its
next stages of growth. Since joining the company in March 2006,
Tom's strong business background, general management capabilities
and focus on execution have served Synaptics well. During that time
he has taken on increased responsibilities and broadened his role
and impact within Synaptics. Tom has proven his ability to lead our
global team, forge important customer relationships, expand our
technology into exciting new markets, and deliver record financial
results despite tough market conditions." "I am grateful for the
confidence that Francis and the Board have placed in me, and I
could not be more pleased that Francis will continue to be involved
as an advisor to the Synaptics leadership team," commented Mr.
Tiernan. "Our prospects have never been brighter, and I am highly
energized by the opportunity to continue the company's mission of
innovating and deploying intuitive touch solutions across multiple
end-markets globally. We will build on the growth and profitability
that Synaptics has achieved since its IPO in 2002 and maintain a
strong focus on enhancing shareholder value as we move forward."
Earnings Call Information The Synaptics fourth quarter fiscal 2009
teleconference and webcast is scheduled to begin at 2:00 p.m.,
Pacific Time, on Thursday, July 30, 2009, during which the Company
will provide forward-looking information. To participate on the
live call, analysts and investors should dial 1-877-941-4774 at
least ten minutes prior to the call. Synaptics will also offer a
live and archived webcast of the conference call, accessible from
the "Investor Relations" section of the Company's Web site at
http://www.synaptics.com/. 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 Santa Clara, California.
http://www.synaptics.com/ NOTE: Synaptics, TouchPad, and the
Synaptics logo are trademarks of Synaptics in the United States
and/or other countries. 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; revenue growth
rates; the success of its growth and diversification strategies;
its beliefs regarding the markets it serves and the adoption of its
interface solutions in those markets; its assessment of its
competitive position and opportunities in those markets; its
assessment of market demands and trends in target markets; the
status of its design pipeline; the amount of the investments it is
making in its business; its business opportunities; 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 June
30, 2008. All forward-looking statements are based on information
available to Synaptics on the date hereof, and Synaptics assumes no
obligation to update such statements. For more information contact:
Jennifer Jarman The Blueshirt Group 415-217-7722 (Tables to Follow)
SYNAPTICS INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands,
except share data) (Unaudited) June 30, June 30, 2009 2008 ----
---- Assets Current assets: Cash and cash equivalents $169,036
$96,218 Short term investments 22,934 50,298 ------ ------ Total
cash, cash equivalents, and short-term investments 191,970 146,516
Receivables, net of allowances of $513 and $539, respectively
84,739 69,362 Inventories 14,950 21,065 Prepaid expenses and other
current assets 3,094 3,417 ----- ----- Total current assets 294,753
240,360 Property and equipment, net 25,431 22,459 Goodwill 1,927
1,927 Non-current auction rate securities 28,767 37,946 Other
assets 25,343 3,669 ------ ----- Total assets $376,221 $306,361
======== ======== Liabilities and stockholders' equity Current
liabilities: Accounts payable $32,210 $27,784 Accrued compensation
8,450 6,510 Income taxes payable 9,128 7,095 Current deferred tax
liability 9,419 - Other accrued liabilities 11,813 9,120 Note
payable 65,303 - ------ --- Total current liabilities 136,323
50,509 Convertible senior subordinated notes - 125,000 Other
liabilities 18,484 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; 43,779,011
and 42,500,535 shares issued, and 34,690,911 and 33,412,435 shares
outstanding, respectively 44 43 Additional paid in capital 270,962
222,543 Less: 9,088,100 and 9,088,100 treasury shares,
respectively, at cost (237,387) (237,387) Retained earnings 187,666
130,895 Accumulated other comprehensive income/(loss) 129 (2,317)
--- ------ Total stockholders' equity 221,414 113,777 -------
------- Total liabilities and stockholders' equity $376,221
$306,361 ======== ======== SYNAPTICS INCORPORATED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share
data) (Unaudited) Three Months Ended Twelve Months Ended June 30,
June 30, -------- -------- 2009 2008 2009 2008 ---- ---- ---- ----
Net revenue $115,327 $96,854 $473,302 $361,057 Cost of revenue (1)
68,924 58,085 281,793 213,606 ------ ------ ------- ------- Gross
margin 46,403 38,769 191,509 147,451 Operating expenses Research
and development (1) 18,995 14,438 68,026 50,093 Selling, general,
and administrative (1) 12,944 13,780 54,014 48,126 ------ ------
------ ------ Total operating expenses 31,939 28,218 122,040 98,219
------ ------ ------- ------ Operating income 14,464 10,551 69,469
49,232 Interest and other income, net 452 1,351 3,222 9,652
Interest expense (234) (449) (1,238) (1,822) Gain on settlement of
debt - - - 2,689 Gain on early retirement of debt - - 3,600 -
Impairment (loss)/ recovery on investments 160 (4,726) (9,243)
(10,963) --- ------ ------ ------- Income before income taxes
14,842 6,727 65,810 48,788 Provision for income taxes (2) 1,760
4,093 11,486 17,688 ----- ----- ------ ------ Net income $13,082
$2,634 $54,324 $31,100 ======= ====== ======= ======= Net income
per share: Basic $0.38 $0.08 $1.60 $0.83 ===== ===== ===== =====
Diluted $0.36 $0.07 $1.53 $0.79 ===== ===== ===== ===== Shares used
in computing net income per share: Basic 34,388 33,969 33,981
37,667 ====== ====== ====== ====== Diluted 36,348 35,240 35,577
39,365 ====== ====== ====== ====== (1) Includes share-based
compensation charges of: Cost of revenue $430 $136 $1,680 $1,102
Research and development 2,624 1,765 8,897 6,321 Selling, general,
and administrative 3,726 2,934 13,843 10,080 ----- ----- ------
------ $6,780 $4,835 $24,420 $17,503 ====== ====== ======= =======
(2) Includes tax benefit for share-based compensation charges of:
$2,523 $1,486 $7,972 $6,114 ====== ====== ====== ====== Non-GAAP
net income per share Basic $0.50 $0.32 $2.29 $1.36 ===== =====
===== ===== Diluted $0.47 $0.30 $2.19 $1.31 ===== ===== ===== =====
SYNAPTICS INCORPORATED Computation of Basic and Diluted Net Income
Per Share (in thousands except per share data) (Unaudited) Three
Months Ended Twelve Months Ended June 30, June 30, --------
-------- 2009 2008 2009 2008 ---- ---- ---- ---- Numerator: Basic
and diluted net income $13,082 $2,634 $54,324 $31,100 =======
====== ======= ======= Denominator: Shares, basic 34,388 33,969
33,981 37,667 Effect of dilutive share-based awards 1,960 1,271
1,596 1,698 ----- ----- ----- ----- Shares, diluted 36,348 35,240
35,577 39,365 ====== ====== ====== ====== Net income per share:
Basic $0.38 $0.08 $1.60 $0.83 ===== ===== ===== ===== Diluted $0.36
$0.07 $1.53 $0.79 ===== ===== ===== ===== Computation of non-GAAP
basic and diluted net income per share (unaudited): Numerator:
Reported net income $13,082 $2,634 $54,324 $31,100 ======= ======
======= ======= Non-GAAP adjustments (net of tax, if applicable):
Gain on settlement of debt - - - (2,078) Gain on early retirement
of debt - - (2,133) - Impairment loss/ (recovery) on investments
(160) 4,726 9,243 10,963 Share-based compensation 4,257 3,349
16,448 11,389 ----- ----- ------ ------ Non-GAAP basic and diluted
net income $17,179 $10,709 $77,882 $51,374 ======= ======= =======
======= Denominator: Shares, basic 34,388 33,969 33,981 37,667
Effect of dilutive share-based awards 1,960 1,271 1,596 1,698 -----
----- ----- ----- Shares, diluted 36,348 35,240 35,577 39,365
====== ====== ====== ====== Non-GAAP net income per share: Basic
$0.50 $0.32 $2.29 $1.36 ===== ===== ===== ===== Diluted $0.47 $0.30
$2.19 $1.31 ===== ===== ===== ===== DATASOURCE: Synaptics CONTACT:
Jennifer Jarman of The Blueshirt Group, +1-415-217-7722, , for
Synaptics Web Site: http://www.synaptics.com/
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