Synaptics Incorporated (SYNA): Business Model Canvas [11-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
Synaptics Incorporated (SYNA) Bundle
In the rapidly evolving world of technology, Synaptics Incorporated (SYNA) stands out with its innovative approach to semiconductor solutions. This blog post delves into the Business Model Canvas of Synaptics, exploring its key partnerships, activities, and resources that drive its success. Discover how Synaptics delivers value to its diverse customer segments, from automotive to IoT, and learn about the strategic components that make up its robust business framework.
Synaptics Incorporated (SYNA) - Business Model: Key Partnerships
Collaborates with contract manufacturers for production
Synaptics Incorporated employs a fabless manufacturing model, relying on contract manufacturers for the production of its semiconductor products. This strategy allows the company to focus on research and development while leveraging the expertise and capabilities of established manufacturers. As of September 2024, Synaptics has engaged several contract manufacturers, including major players in the semiconductor industry, to meet its production needs efficiently.
Partners with semiconductor fabricators
In its operations, Synaptics collaborates closely with semiconductor fabricators to ensure high-quality production and innovation in its product offerings. These partnerships are critical for maintaining competitive advantages in technology development and cost management. The company has reported significant investments in partnerships to enhance its semiconductor fabrication capabilities, with expenditures related to these partnerships amounting to approximately $130 million in fiscal 2024.
Engages with third-party wafer and packaging suppliers
Synaptics also maintains strong relationships with third-party wafer and packaging suppliers to streamline its supply chain. This engagement is essential for optimizing production processes and ensuring timely delivery of components. The company’s inventory of raw materials and work-in-progress, as of September 2024, was reported at $68.6 million, reflecting its reliance on external suppliers to manage production costs effectively.
Works closely with OEMs for custom solutions
Original Equipment Manufacturers (OEMs) are vital partners for Synaptics, as they collaborate on developing customized solutions tailored to specific applications. This partnership model allows Synaptics to align its product offerings with market demands, enhancing customer satisfaction and driving revenue growth. In the three months ended September 2024, Synaptics generated $147.6 million from Enterprise and Automotive product applications, indicating a strong market presence supported by its OEM relationships.
| Partnership Type | Key Partners | Financial Impact (2024) | Strategic Importance |
|---|---|---|---|
| Contract Manufacturers | Various semiconductor manufacturers | $130 million investment | Focus on R&D, cost efficiency |
| Semiconductor Fabricators | Leading fabricators in the industry | Partnerships enhance production capabilities | Maintain competitive technology edge |
| Wafer and Packaging Suppliers | Third-party suppliers | Inventory of $68.6 million | Optimize supply chain management |
| OEMs | Major OEMs across industries | $147.6 million from Enterprise and Automotive | Custom solutions alignment with market |
Synaptics Incorporated (SYNA) - Business Model: Key Activities
Research and development of semiconductor solutions
Research and development (R&D) expenses for Synaptics Incorporated totaled $81.3 million for the three months ended September 2024, representing a decrease of $5.2 million from $86.5 million in the same period in 2023. The reduction was primarily driven by a decrease in wages and related costs due to restructuring actions initiated during the first quarter of fiscal 2025.
Product design and engineering for OEMs
Synaptics specializes in developing unique semiconductor solutions tailored for original equipment manufacturers (OEMs). In the three months ended September 2024, net revenue from their various product applications was as follows:
| Product Category | Net Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Enterprise and Automotive | $147.6 | 57.3% |
| Mobile | $50.5 | 19.6% |
| Core IoT | $59.6 | 23.1% |
| Total | $257.7 | 100% |
The increase in revenue from Core IoT product applications was particularly notable, with a growth of 90.2% in units sold compared to the previous year.
Manufacturing operations through outsourcing
As a fabless semiconductor company, Synaptics outsources its manufacturing operations. This model allows them to focus on R&D and product design while leveraging external manufacturers for production. The gross margin for the three months ended September 2024 was 46.9%, up from 45.1% in the previous year, reflecting favorable changes in product mix and lower costs associated with obsolescence reserves.
Sales and marketing to expand market reach
In the three months ended September 2024, Synaptics reported selling, general, and administrative expenses of $50.0 million, an increase of $7.7 million from $42.3 million in the same period in 2023. This increase was attributed to higher professional fees and unfavorable exchange rate impacts.
Sales efforts are directed towards enhancing their presence in key markets such as China, which accounted for $127.7 million in revenue, up from $106.6 million year-over-year.
Synaptics Incorporated (SYNA) - Business Model: Key Resources
Intellectual property portfolio for licensing
Synaptics has a robust intellectual property portfolio, which includes numerous patents and technologies that are critical for its business operations. The company has engaged in licensing agreements that generated approximately $10.5 million in revenue from IP licenses during the three months ended September 2024. In fiscal 2024, Synaptics paid $130 million to Avago Technologies (Broadcom) to license four developed technology products and extend exclusivity on certain previously licensed technologies.
Skilled workforce in engineering and R&D
As of September 2024, Synaptics employed a skilled workforce with a significant portion dedicated to engineering and research and development (R&D). The company reported R&D expenses of $81.3 million for the three months ended September 2024, down from $86.5 million in the same period of the previous year, reflecting a strategic restructuring aimed at improving efficiency. The workforce reduction was part of efforts to optimize operational costs while maintaining innovation capacity.
Global presence with offices in key markets
Synaptics maintains a global presence with offices strategically located in key markets around the world. This international footprint allows the company to tap into diverse customer bases and supply chains. The company reported cash and cash equivalents of $853.6 million as of September 2024, including $405.7 million held by foreign subsidiaries. Such financial flexibility supports its global operations and market expansion efforts.
Financial resources, including cash reserves
As of September 2024, Synaptics had total assets of $2.79 billion, with total liabilities of $1.32 billion, resulting in stockholders' equity of $1.47 billion. The company's cash reserves stood at $853.6 million, indicating a solid liquidity position. The cash flow from operating activities was reported as a net usage of $11.4 million for the three months ended September 2024, compared to a positive cash flow of $45.4 million in the same period the previous year.
| Key Resource | Details |
|---|---|
| Intellectual Property Portfolio | Revenue from IP licenses: $10.5 million for Q3 2024; $130 million paid to Broadcom for licensing and exclusivity extensions |
| Skilled Workforce | R&D Expenses: $81.3 million for Q3 2024; workforce reduction for efficiency |
| Global Presence | Cash reserves: $853.6 million; $405.7 million held by foreign subsidiaries |
| Financial Resources | Total assets: $2.79 billion; Total liabilities: $1.32 billion; Stockholders' equity: $1.47 billion |
Synaptics Incorporated (SYNA) - Business Model: Value Propositions
Offers advanced mixed-signal semiconductor solutions
Synaptics Incorporated specializes in providing advanced mixed-signal semiconductor solutions that enhance various electronic devices. For the three months ended September 2024, the net revenue from these solutions was $257.7 million, a year-over-year increase of 8.4% from $237.7 million in September 2023. The company’s product offerings include touch and display driver integration, audio and video interface solutions, and fingerprint recognition technologies.
Provides customized products for diverse applications
Synaptics focuses on delivering customized products tailored to meet the specific needs of various industries, including mobile, IoT, and automotive sectors. In the latest quarter, the revenue breakdown was 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% |
This diversified approach allows Synaptics to cater to a wide range of applications, maximizing its market reach.
Focus on enhancing user experiences through technology
Enhancing user experiences is a core value proposition for Synaptics. The company invests significantly in research and development, with expenses totaling $81.3 million for the three months ended September 2024, down from $86.5 million in the previous year. This focus on innovation is evident in their product designs, which integrate advanced technologies to provide seamless user interactions across devices.
Strong support for IoT and automotive markets
Synaptics is actively expanding its footprint in the IoT and automotive markets. The Core IoT product applications saw a substantial revenue increase of 54.8%, rising from $38.5 million in September 2023 to $59.6 million in September 2024. The company’s automotive solutions, which include advanced driver assistance systems (ADAS) and in-vehicle infotainment, are designed to meet the growing demand for connectivity and safety in modern vehicles.
Synaptics Incorporated (SYNA) - Business Model: Customer Relationships
Builds long-term partnerships with OEM customers
Synaptics Incorporated focuses on establishing long-term relationships with Original Equipment Manufacturer (OEM) customers. As of September 2024, net revenue from Enterprise and Automotive product applications was $147.6 million, accounting for 57.3% of total net revenue. The company's strategy involves creating tailored solutions for OEMs, thereby enhancing customer loyalty and driving repeat business.
Provides dedicated engineering support
To ensure customer satisfaction and product success, Synaptics provides dedicated engineering support. This support is crucial for integrating their semiconductor solutions into OEM products. The company's total R&D expenses for the three months ended September 2024 were $81.3 million, reflecting a decrease of $5.2 million from the previous year, indicating a strategic focus on efficient resource allocation towards customer-facing engineering efforts.
Engages in co-development of technology solutions
Synaptics actively engages in co-development initiatives with its customers. This collaborative approach allows for the creation of customized technology solutions that meet specific market needs. The company's gross margin for the three months ended September 2024 was 46.9%, a 1.8% increase from the previous year, attributed to favorable product mix changes and effective cost management.
Offers customer training and support services
Training and support services are integral to Synaptics' customer relationship strategy. The company recognizes that providing comprehensive training enhances the usability and integration of their products. For the three months ended September 2024, Synaptics reported a net loss of $23.1 million, a significant improvement from $55.6 million in the same period the previous year, which may reflect the effectiveness of their support services in retaining customers.
| Financial Metric | September 2024 | September 2023 | Change |
|---|---|---|---|
| Net Revenue (Total) | $257.7 million | $237.7 million | +8.4% |
| Enterprise and Automotive Revenue | $147.6 million | $154.8 million | -4.7% |
| Core IoT Revenue | $59.6 million | $38.5 million | +54.8% |
| Mobile Revenue | $50.5 million | $44.4 million | +13.7% |
| Gross Margin | 46.9% | 45.1% | +1.8% |
| R&D Expenses | $81.3 million | $86.5 million | -6.0% |
| Net Loss | ($23.1 million) | ($55.6 million) | Improvement of $32.5 million |
Synaptics Incorporated (SYNA) - Business Model: Channels
Direct sales through global sales teams
Synaptics Incorporated employs a global sales team to facilitate direct sales, focusing on customer engagement and relationship building. The sales force is responsible for generating $257.7 million in net revenue for the three months ended September 2024, reflecting an 8.4% increase from $237.7 million in the same period in 2023. The team targets various sectors, including Enterprise and Automotive, which accounted for 57.3% ($147.6 million) of the net revenue in Q3 2024.
Partnerships with OEMs for product integration
Synaptics has established strategic partnerships with Original Equipment Manufacturers (OEMs) to integrate their advanced technologies into OEM products. This collaboration enhances product offerings and market reach. The Enterprise and Automotive segment saw a revenue decrease of 4.7%, attributed to a 1.5% decline in units sold, despite an increase in average selling prices. Partnerships are crucial for Synaptics to maintain competitiveness and leverage OEM distribution channels.
Online platforms for product information and support
Synaptics utilizes online platforms effectively to provide product information and customer support. The company’s website serves as a critical channel for disseminating information on product applications, including Core IoT and Mobile products, which contributed $59.6 million (23.1%) and $50.5 million (19.6%) to net revenue respectively in Q3 2024. The online presence also aids in managing customer inquiries and enhancing user experience.
Participation in industry trade shows and events
Active participation in industry trade shows and events allows Synaptics to showcase its technological innovations and engage with potential customers. This strategy not only builds brand awareness but also fosters networking opportunities within the tech ecosystem. The company's involvement in such events is vital for maintaining industry leadership and attracting new business, further supporting its revenue growth strategies.
| Channel Type | Revenue Contribution (Q3 2024) | Notes |
|---|---|---|
| Direct Sales | $257.7 million | 8.4% increase YoY |
| Enterprise and Automotive | $147.6 million | 57.3% of total revenue |
| Core IoT | $59.6 million | 23.1% of total revenue |
| Mobile | $50.5 million | 19.6% of total revenue |
Synaptics Incorporated (SYNA) - Business Model: Customer Segments
OEMs in automotive, IoT, and mobile sectors
Synaptics serves various Original Equipment Manufacturers (OEMs) across multiple sectors, including automotive, Internet of Things (IoT), and mobile. For the three months ended September 2024, net revenue from Enterprise and Automotive product applications was $147.6 million, representing 57.3% of total net revenue. The automotive sector continues to evolve with increased demand for advanced driver-assistance systems (ADAS) and in-vehicle infotainment solutions, driving Synaptics to innovate in this space.
Enterprises utilizing workspace technology
Enterprises are a significant customer segment for Synaptics, particularly for workspace technology solutions. The revenue from this segment contributes to the overall enterprise and automotive applications. Notably, the revenue from Enterprise and Automotive product applications decreased by 4.7% to $147.6 million in September 2024 compared to the previous year. This decline was attributed to a 1.5% decrease in units sold, though it was partially offset by a 17.3% increase in average selling prices.
Manufacturers of consumer electronics
Synaptics also targets manufacturers of consumer electronics, providing essential semiconductor solutions that enhance device functionality. The revenue from Core IoT product applications, which includes solutions for consumer electronics, surged by 54.8% to $59.6 million for the three months ended September 2024. This growth was driven by a significant 90.2% increase in units sold, reflecting a robust demand for IoT-enabled devices.
| Customer Segment | Revenue (in millions) | Percentage of Total Revenue | Change Year-over-Year |
|---|---|---|---|
| Enterprise and Automotive | $147.6 | 57.3% | -4.7% |
| Core IoT | $59.6 | 23.1% | +54.8% |
| Mobile | $50.5 | 19.6% | +13.7% |
Companies in the virtual reality and gaming sectors
In addition to the aforementioned sectors, Synaptics is positioned to capture opportunities within the virtual reality (VR) and gaming industries. The demand for advanced touch and display solutions for gaming devices is on the rise, which aligns with Synaptics' product offerings. While specific revenue figures for VR and gaming solutions are not detailed in the latest reports, the overall growth in mobile and IoT applications indicates a favorable trend for this segment as gaming continues to integrate more advanced technologies.
Synaptics Incorporated (SYNA) - Business Model: Cost Structure
Significant R&D investment for innovation
For the three months ended September 2024, Synaptics reported Research and Development (R&D) expenses of $81.3 million, a decrease of $5.2 million compared to $86.5 million in the same period in 2023. This reduction was primarily due to a $4.9 million decrease in wages and related costs following restructuring actions initiated during the first quarter of fiscal 2025.
Operating expenses related to sales and marketing
In the same quarter, Selling, General, and Administrative (SG&A) expenses increased to $50.0 million, up by $7.7 million from $42.3 million in September 2023. This increase was attributed mainly to a $3.8 million rise in professional fees related to corporate projects and a $3.2 million unfavorable impact from foreign currency exchange rates.
Costs associated with outsourced manufacturing
As a fabless semiconductor company, Synaptics incurs costs associated with outsourced manufacturing, which are reflected in the Cost of Revenue amounting to $136.8 million for the three months ended September 2024, compared to $130.6 million in the previous year. This cost includes expenses related to materials, labor, and overhead that are incurred by third-party manufacturers for production.
Administrative expenses and professional services
Administrative expenses encompass various operational costs. In the three months ended September 2024, the amortization of acquired intangibles accounted for $3.8 million, while restructuring costs were recorded at $14.2 million, reflecting employee severance and related benefits. The total operating expenses for the period were $149.3 million, leading to an operating loss of $28.4 million.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Research and Development | $81.3 | $86.5 | $(5.2) |
| Selling, General, and Administrative | $50.0 | $42.3 | $7.7 |
| Cost of Revenue | $136.8 | $130.6 | $6.2 |
| Acquired Intangibles Amortization | $3.8 | $5.5 | $(1.7) |
| Restructuring Costs | $14.2 | $8.0 | $6.2 |
| Total Operating Expenses | $149.3 | $142.3 | $7.0 |
Synaptics Incorporated (SYNA) - Business Model: Revenue Streams
Sales of semiconductor products
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, representing an 8.4% growth. The breakdown of revenue from semiconductor products is as follows:
- Enterprise and Automotive product applications: $147.6 million (57.3%)
- Mobile product applications: $50.5 million (19.6%)
- Core IoT product applications: $59.6 million (23.1%)
Revenue from Mobile product applications increased by 13.7% year-over-year, attributed to a 1.5% increase in units sold and a $10.5 million revenue boost from IP licensing. However, average selling prices decreased by 11.3% due to market dynamics. Core IoT product applications saw a substantial increase of 54.8% due to a 90.2% rise in units sold, despite an 18.6% drop in average selling prices.
Licensing of intellectual property
In the latest quarter, Synaptics generated $10.5 million in revenue from the licensing of its intellectual property. This is part of the overall revenue from Mobile product applications, which reflects the company's strategy to leverage its IP portfolio. The licensing revenue is crucial as it typically carries higher margins compared to product sales.
Revenue from custom engineering services
Revenue from custom engineering services is not explicitly detailed in the financial reports but is implied to be integrated within the overall product revenue streams. Custom engineering services are provided to OEMs and involve tailored solutions that meet specific customer needs, which can enhance customer loyalty and lead to recurring revenue opportunities.
Maintenance and support contracts for OEMs
Maintenance and support contracts contribute to Synaptics' revenue streams by ensuring ongoing support for its semiconductor products sold to OEMs. While specific figures for this segment are not disclosed, such contracts typically provide a stable revenue source and are essential for maintaining customer relationships and ensuring product performance.
| Revenue Stream | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Enterprise and Automotive | $147.6 | 57.3% |
| Mobile | $50.5 | 19.6% |
| Core IoT | $59.6 | 23.1% |
| IP Licensing | $10.5 | Included in Mobile Revenue |
Updated on 16 Nov 2024
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.