Synaptics Reports Fourth Quarter and Fiscal Year 2020 Results
Q4’20 Financial Results and Recent Business Highlights
SAN JOSE, Calif., Aug. 05, 2020 (GLOBE NEWSWIRE) -- Synaptics Incorporated (NASDAQ: SYNA), the leading developer of human interface solutions, today reported financial results for its fourth fiscal quarter and fiscal year ended June 27, 2020.
On April 16, 2020 the company completed the divestiture of its Mobile LCD TDDI business, as a result the company received approximately $139 million in cash proceeds. The Company recognized a pre-tax gain on sale of $105 million. The results for the fourth quarter and full fiscal year 2020 include this former business only through the date of the divestiture.
Net revenue for the fourth quarter of fiscal 2020 was $277.6 million. GAAP net income for the fourth quarter of fiscal 2020 was $90.0 million, or $2.55 per diluted share. Non-GAAP net income for the fourth quarter of fiscal 2020 was $43.8 million, or $1.24 per diluted share.
For fiscal 2020, net revenue was $1.33 billion. GAAP net income for fiscal year 2020 was $118.8 million, or $3.41 per diluted share. Non-GAAP net income for fiscal year 2020 was $207.2 million, or $5.95 per diluted share. Fiscal 2020 was a record high year for Synaptics for both GAAP and non-GAAP earnings per diluted share
“Synaptics delivered a strong finish to our fiscal year with fourth quarter revenues exceeding the mid-point of our guidance, gross margins at the high-end of our guidance, and continued improvement in our operational efficiency,” said Michael Hurlston, Synaptics’ president and CEO. “As we look into fiscal 2021, I am excited by the traction we have in our organic business as well as with the new opportunities that our recently closed acquisitions present.”
Cash at the quarter end of June 27, 2020 was $763.4 million. Cash flow from operations during the fourth quarter of fiscal 2020 was $53.5 million.
Dean Butler, Chief Financial Officer of Synaptics, added, “Fiscal year 2020 was one of the strongest 12-month periods of financial performance in the company’s history with significant margin expansion and a record setting earnings per share. For our first fiscal quarter, we see robust demand for our products and enter the quarter with a strong backlog despite the uncertainties that remain in the macro economy.”
For the first quarter of fiscal 2021, the company expects:
*We are unable to provide a reconciliation of these forward-looking non-GAAP financial measures to their respective comparable GAAP financial measures because, without unreasonable efforts, we are unable to predict with reasonable certainty the amount or timing of certain adjustments (including purchase price accounting and related charges associated with the acquisition of DisplayLink Corporation and the acquisition of assets and manufacturing right associated with the wireless IoT connectivity business of Broadcom) that are used to reconcile to these non-GAAP financial measures. These adjustments are currently uncertain or unknown, depend on various factors that are beyond our control, and could have a material impact on, in each case, the most directly comparable GAAP financial measure.
Earnings Call and Supplementary Materials
To participate on the live call, analysts and investors should dial 888-203-1112 (conference ID: 3376718). Supplementary slides, a copy of the prepared remarks, and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s Website at https://investor.synaptics.com/.
About Synaptics Incorporated
Use of Non-GAAP Financial Information
We are unable to provide a reconciliation of forward-looking Non-GAAP Gross Margin and Non-GAAP operating expenses to their respective comparable GAAP financial measures because, without unreasonable efforts, we are unable to predict with reasonable certainty the amount or timing of certain adjustments for the acquisition of DisplayLink Corporation and the acquisition of assets and manufacturing right associated with the wireless IoT connectivity business of Broadcom. These adjustments are currently uncertain or unknown, depend on various factors that are beyond our control, and could have a material impact on, in each case, the most directly comparable GAAP financial measure.
As presented in the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables that follow, Non-GAAP Net Income and each of the other Non-GAAP financial measures excludes one or more of the following items:Acquisition/divestiture related costs.
Acquisition/divestiture related costs primarily consist of:
These acquisition/divestiture related costs are not factored into the company’s evaluation of its ongoing business operating performance or potential acquisitions, as they are not considered as part of the company’s principal operations. Further, the amount of these costs can vary significantly from period to period based on the terms of an earn-out arrangement, revisions to assumptions that went into developing the estimate of the contingent consideration associated with an earn-out arrangement, the size and timing of an acquisition/divestiture, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition/divestiture related costs from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability and potential earnings volatility associated with purchase accounting and acquisition/divestiture related items.
Retention program costs.
In-process research and development.
Gain on sale of assets.
Other non-cash items.
Recovery on sale of investment.
Arbitration settlement, net
Equity investment loss.
Non-GAAP tax adjustments.
For more information contact: