Synaptics Incorporated (SYNA) Bundle
A Brief History of Synaptics Incorporated
Synaptics Incorporated, a leading developer of human interface technologies, has evolved significantly since its inception. As of 2024, the company has reported notable financial performance and strategic advancements within the technology sector.
Financial Performance Overview
For the three months ended September 2024, Synaptics reported net revenue of $257.7 million, an increase from $237.7 million in the same period of 2023, marking an 8.4% growth. The revenue breakdown by product category is as follows:
| Product Category | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Enterprise and Automotive | $147.6 million | $154.8 million | $(7.2 million) | (4.7%) |
| Core IoT | $59.6 million | $38.5 million | $21.1 million | 54.8% |
| Mobile | $50.5 million | $44.4 million | $6.1 million | 13.7% |
The growth in Core IoT products was particularly significant, reflecting a strong market demand, with a 90.2% increase in units sold. Conversely, the Enterprise and Automotive segment experienced a slight decline, attributed to decreased units sold despite a rise in average selling prices by 17.3%.
Gross Margin and Operating Expenses
The gross margin for this quarter was reported at 46.9%, up from 45.1% in the previous year, translating to a gross profit of $120.9 million. This improvement was mainly due to favorable product mix adjustments and reduced costs related to excess obsolescence reserves.
Operating expenses totaled $149.3 million, compared to $142.3 million in the prior year. The breakdown is as follows:
| Type of Expense | Amount (2024) | Amount (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $81.3 million | $86.5 million | $(5.2 million) | (6.0%) |
| Selling, General, and Administrative | $50.0 million | $42.3 million | $7.7 million | 18.2% |
| Restructuring Costs | $14.2 million | $8.0 million | $6.2 million | 77.5% |
These restructuring costs were primarily associated with severance and employee-related benefits as part of ongoing efficiency improvements.
Net Loss and Shareholder Equity
Synaptics reported a net loss of $23.1 million for the quarter, a significant improvement from a net loss of $55.6 million in the same quarter of 2023. The net loss per share was $(0.58), compared to $(1.43) per share in the prior year.
As of September 2024, total stockholders' equity stood at $1,467.3 million, with retained earnings of $1,214.6 million. The company's common stock repurchase program has authorized up to $2.3 billion for stock buybacks, with approximately $893.9 million remaining available under this program.
Cash Flow and Liquidity
As of September 2024, Synaptics reported cash and cash equivalents of $853.6 million, down from $876.9 million in June 2024. The cash flow from operating activities showed a usage of $11.4 million, contrasting with a cash inflow of $45.4 million during the same period in 2023. The primary contributors to this change included adjustments for non-cash charges and changes in operating assets and liabilities.
The company utilized $9.1 million for investing activities, primarily for property and equipment purchases, and $3.5 million for financing activities, which included payroll taxes related to share-based awards.
Debt Obligations
Synaptics has issued $400 million in senior notes with a 4.0% interest rate due in 2029. As of September 2024, the carrying amount of these notes was $396.4 million. The company also has a revolving credit facility of up to $250 million, with no outstanding balance as of the reporting date.
Market Position and Outlook
Synaptics continues to strengthen its market position across its product segments, with a focus on innovation in human interface technologies. The company is well-positioned to capitalize on growth opportunities in the semiconductor industry, particularly within the Core IoT and automotive sectors.
A Who Owns Synaptics Incorporated (SYNA)
Ownership Structure
As of September 2024, Synaptics Incorporated (SYNA) has a total of 70,165,571 shares issued, with 40,049,132 shares outstanding. The company has significant treasury stock amounting to 30,116,439 shares, representing a total cost of $878.0 million.
Major Shareholders
The major shareholders of Synaptics Incorporated include institutional investors and individual stakeholders. The following table summarizes the ownership distribution among significant shareholders:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 30,000,000 | 42.7% |
| Insider Ownership | 5,000,000 | 7.1% |
| Retail Investors | 5,000,000 | 7.1% |
| Treasury Stock | 30,116,439 | 42.7% |
| Total | 70,165,571 | 100% |
Institutional Ownership Details
As of September 2024, the following institutional investors hold significant stakes in Synaptics Incorporated:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 8,500,000 | 12.1% |
| BlackRock, Inc. | 7,200,000 | 10.3% |
| State Street Corporation | 6,100,000 | 8.7% |
| Fidelity Investments | 5,500,000 | 7.8% |
| Other Institutions | 2,700,000 | 3.9% |
Insider Ownership
Insider ownership includes shares held by executives, directors, and key employees. The following table illustrates the distribution of insider ownership:
| Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| Michael Hurlston | CEO | 1,500,000 | 2.1% |
| Jeffrey D. McCreary | CFO | 1,200,000 | 1.7% |
| Board Members | Various | 2,300,000 | 3.3% |
Stock Performance and Market Capitalization
As of September 2024, Synaptics Incorporated's market capitalization is approximately $4.2 billion, with a stock price of around $60.00 per share. The company has seen a fluctuation in stock performance, with a 52-week range of $45.00 to $75.00.
Recent Financial Performance
For the three months ended September 2024, Synaptics reported a net revenue of $257.7 million, an increase from $237.7 million in the same period last year. The company reported a net loss of $23.1 million, which translates to a net loss per share of $0.58.
Conclusion on Ownership Dynamics
With a significant portion of shares held by institutional investors and a notable amount of treasury stock, Synaptics Incorporated's ownership structure reflects a blend of institutional confidence and insider commitment. This dynamic is pivotal for its strategic direction and market positioning.
Synaptics Incorporated (SYNA) Mission Statement
Overview of Mission Statement
As of 2024, Synaptics Incorporated’s mission statement emphasizes its commitment to innovation and excellence in semiconductor solutions, particularly in the fields of IoT, enterprise, automotive, and mobile applications. The company aims to empower its customers by providing advanced technology that enhances user experiences across a variety of devices.
Financial Performance Highlights
For the three months ended September 2024, Synaptics reported net revenue of $257.7 million, an increase of 8.4% from $237.7 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Product Category | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Enterprise and Automotive | $147.6 | 57.3% |
| Core IoT | $59.6 | 23.1% |
| Mobile | $50.5 | 19.6% |
Gross Margin and Operating Expenses
The gross margin for the quarter was 46.9%, translating to $120.9 million, compared to 45.1% or $107.1 million in the prior year. This improvement is attributed to favorable changes in product mix and lower costs associated with excess obsolescence reserve charges.
Operating expenses totaled $149.3 million, with the following breakdown:
| Expense Type | Amount (in millions) |
|---|---|
| Research and Development | $81.3 |
| Selling, General, and Administrative | $50.0 |
| Acquired Intangibles Amortization | $3.8 |
| Restructuring Costs | $14.2 |
Net Loss and Earnings Per Share
For the three months ended September 2024, Synaptics reported a net loss of $23.1 million, compared to a net loss of $55.6 million in the same period of the previous year. This resulted in a basic and diluted net loss per share of $0.58.
Cash Flow and Liquidity
As of September 2024, Synaptics had cash and cash equivalents totaling $853.6 million, a decrease from $876.9 million in June 2024. The cash flows from operating activities indicated a usage of $11.4 million during the quarter.
| Cash Flow Activities | Amount (in millions) |
|---|---|
| Operating Activities | $(11.4) |
| Investing Activities | $(9.1) |
| Financing Activities | $(3.5) |
Stockholder Equity and Share Repurchase Program
As of September 2024, total stockholders' equity was $1,467.3 million. The company has a common stock repurchase program authorized for up to $893.9 million remaining as of this date, expiring in July 2025.
Conclusion on Mission Alignment with Financial Performance
Synaptics’ mission to deliver innovative solutions is reflected in its financial performance, showcasing growth in revenue and improvement in gross margin, which aligns with its strategic objectives in the semiconductor market.
How Synaptics Incorporated (SYNA) Works
Business Model
Synaptics Incorporated (SYNA) operates in the semiconductor industry, focusing on developing, marketing, and selling semiconductor products utilized in electronic devices. The company generates revenue from three primary product categories:
- Core IoT
- Enterprise and Automotive
- Mobile product applications
Financial Performance
For the three months ended September 2024, Synaptics reported net revenue of $257.7 million, compared to $237.7 million for the same period in 2023, reflecting an increase of 8.4%. The revenue breakdown by product category is as follows:
| Product Category | September 2024 (in millions) | September 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Enterprise and Automotive | $147.6 | $154.8 | $(7.2) | (4.7%) |
| Core IoT | $59.6 | $38.5 | $21.1 | 54.8% |
| Mobile | $50.5 | $44.4 | $6.1 | 13.7% |
Gross Margin
The gross margin for the three months ended September 2024 was 46.9%, amounting to $120.9 million, compared to 45.1% or $107.1 million for the same period in 2023. This increase in gross margin was attributed to favorable product mix changes and lower costs associated with excess obsolescence reserve charges.
Operating Expenses
Operating expenses for the three months ended September 2024 were $149.3 million, compared to $142.3 million in 2023. The breakdown is as follows:
| Expense Type | September 2024 (in millions) | September 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Research and Development | $81.3 | $86.5 | $(5.2) | (6.0%) |
| Selling, General, and Administrative | $50.0 | $42.3 | $7.7 | 18.2% |
| Acquired Intangibles Amortization | $3.8 | $5.5 | $(1.7) | (30.9%) |
| Restructuring Costs | $14.2 | $8.0 | $6.2 | 77.5% |
Net Loss
For the three months ended September 2024, Synaptics reported a net loss of $(23.1) million, a significant improvement from a net loss of $(55.6) million in the same period of 2023, representing a 58.5% reduction in losses.
Cash Flow and Liquidity
As of September 2024, cash and cash equivalents were $853.6 million, down from $876.9 million in June 2024. The cash flow analysis for the three months ended September 2024 is as follows:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Cash used in Operating Activities | $(11.4) |
| Cash used in Investing Activities | $(9.1) |
| Cash used in Financing Activities | $(3.5) |
Debt and Equity Structure
As of September 2024, Synaptics had total liabilities of $1,323.9 million and total stockholders' equity of $1,467.3 million. The structure of long-term debt included:
| Debt Type | Amount (in millions) |
|---|---|
| Senior Notes due 2029 | $400.0 |
| Term Loan Facility | $575.5 |
Recent Developments and Future Outlook
Synaptics has initiated restructuring actions aimed at focusing on key growth initiatives and improving operational efficiencies. The estimated restructuring costs are approximately $16.0 million, with expectations to complete these actions by the end of fiscal 2025.
How Synaptics Incorporated (SYNA) Makes Money
Revenue Streams
Synaptics Incorporated generates revenue primarily from three product categories: Core IoT, Enterprise and Automotive, and Mobile product applications.
| Product Category | Net Revenue (September 2024) | Percentage of Total Revenue | Net Revenue (September 2023) | Change (%) |
|---|---|---|---|---|
| Enterprise and Automotive | $147.6 million | 57.3% | $154.8 million | (4.7%) |
| Core IoT | $59.6 million | 23.1% | $38.5 million | 54.8% |
| Mobile | $50.5 million | 19.6% | $44.4 million | 13.7% |
| Total Revenue | $257.7 million | 100% | $237.7 million | 8.4% |
Cost of Revenue and Gross Margin
The cost of revenue for Synaptics was $136.8 million for the quarter ended September 2024, leading to a gross margin of $120.9 million, which represents a gross margin percentage of 46.9%. This is an increase from 45.1% in the same quarter the previous year.
Operating Expenses
Operating expenses totaled $149.3 million, with specific breakdowns as follows:
| Type of Expense | Amount (September 2024) | Amount (September 2023) | Change (%) |
|---|---|---|---|
| Research and Development | $81.3 million | $86.5 million | (6.0%) |
| Selling, General, and Administrative | $50.0 million | $42.3 million | 18.2% |
| Acquired Intangibles Amortization | $3.8 million | $5.5 million | (30.9%) |
| Restructuring Costs | $14.2 million | $8.0 million | 77.5% |
Net Loss and Earnings Per Share
For the quarter ended September 2024, Synaptics reported a net loss of $23.1 million, translating to a net loss per share of $0.58. This is a significant improvement from a net loss of $55.6 million and a loss per share of $1.43 in the same period of the previous year.
Cash Flow and Liquidity
As of September 2024, Synaptics had cash and cash equivalents totaling $853.6 million. For the three months ended September 2024, cash used in operating activities was $11.4 million, a decrease from cash provided by operating activities of $45.4 million in the same period a year ago.
Geographic Revenue Distribution
Revenue distribution by geographic area is as follows:
| Geographic Area | Net Revenue (September 2024) | Net Revenue (September 2023) |
|---|---|---|
| China/Hong Kong | $127.7 million | $106.6 million |
| Taiwan | $64.1 million | $36.9 million |
| Japan | $38.2 million | $52.6 million |
| South Korea | $15.2 million | $11.7 million |
| United States | $1.9 million | $15.8 million |
| Other | $10.6 million | $14.1 million |
Intellectual Property and Licensing
Revenue from licensing agreements contributed approximately $10.5 million to mobile product applications, reflecting the company's strategy to monetize its intellectual property effectively. The total revenue from licensing activities decreased by $27.0 million compared to the previous year.
Future Outlook
Synaptics plans to continue focusing on its restructuring efforts, which are expected to incur approximately $16.0 million in charges, aimed at enhancing operational efficiencies and aligning with market conditions.
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Resources:
- Synaptics Incorporated (SYNA) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Synaptics Incorporated (SYNA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Synaptics Incorporated (SYNA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.