On August 8, 2024, Synaptics Inc (SYNA, Financial) released its 8-K filing reporting financial results for the fourth quarter and full year of fiscal 2024. Synaptics Inc is a global producer of semiconductor solutions for the mobile, PC, and Internet of Things markets. The company develops human interface solutions that enable touch, display, fingerprint, video, audio, voice, AI, and connectivity functions for smartphones, PCs, Internet of Things products, and other electronic devices. Geographically, it derives a majority of revenue from China. The company operates in one segment: the development, marketing, and sale of semiconductor products used in electronic devices and products.
Performance Overview
Synaptics Inc (SYNA, Financial) reported net revenue of $247.4 million for the fourth quarter of fiscal 2024, surpassing the analyst estimate of $245.17 million. However, the company reported a GAAP diluted earnings per share (EPS) of -$5.22 and a non-GAAP diluted EPS of $0.64, missing the analyst estimate of $0.70.
For the full fiscal year 2024, Synaptics Inc (SYNA, Financial) reported net revenue of $959.4 million, slightly above the annual estimate of $957.17 million. The GAAP net income for the year was $125.6 million, or $3.16 per diluted share, while the non-GAAP net income was $89.4 million, or $2.25 per diluted share, compared to the annual estimate of $2.75 per share.
Financial Achievements and Challenges
Despite the revenue beat, Synaptics Inc (SYNA, Financial) faced significant challenges throughout the fiscal year. The GAAP gross margin for fiscal 2024 was 45.8%, down from 52.8% in the prior year, while the non-GAAP gross margin was 53.0%, down from 60.1% in the prior year. These declines reflect the impact of channel inventory issues and deteriorating end demand.
“While fiscal year 2024 was challenging in terms of channel inventory and deteriorating end demand, we enter fiscal 2025 in a much better position. Supply chain challenges are largely a thing of the past and the demand environment, particularly in our primary areas of focus, continues to improve,” said Michael Hurlston, Synaptics’ President and CEO.
Income Statement Highlights
| Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 |
|---|---|---|---|---|
| Net Revenue | $247.4M | $227.3M | $959.4M | $1,355.1M |
| GAAP Gross Margin | 45.8% | 44.5% | 45.8% | 52.8% |
| Non-GAAP Gross Margin | 53.4% | 55.7% | 53.0% | 60.1% |
| GAAP Net Income | $208.3M | $(23.4)M | $125.6M | $73.6M |
| Non-GAAP Net Income | $25.6M | $19.5M | $89.4M | $326.4M |
Balance Sheet and Cash Flow
As of June 2024, Synaptics Inc (SYNA, Financial) reported total assets of $2.825 billion, up from $2.611 billion in June 2023. The company’s cash and cash equivalents stood at $876.9 million, down from $924.7 million in the previous year. Total liabilities were $1.358 billion, slightly down from $1.368 billion in June 2023. The company’s stockholders' equity increased to $1.467 billion from $1.243 billion in the prior year.
Business Outlook
Looking ahead, Synaptics Inc (SYNA, Financial) expects sequential improvement in revenue for the first quarter of fiscal 2025. The company provided guidance for GAAP revenue of $255 million and a GAAP gross margin of 45.0%. The non-GAAP gross margin is expected to be 53.5%.
“Our guidance for the first quarter of fiscal 2025 shows sequential improvement in revenue. While near term demand signals are better, we remain cautious due to a slow recovery in our end markets and limited visibility across the next few quarters,” added Mr. Hurlston.
For more detailed financial information and analysis, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Synaptics Inc for further details.
