Q4’21 Financial Results and Recent Business Highlights

• Revenue of $327.8 million
• Record GAAP gross margin of 52.1 percent
• Record non-GAAP gross margin of 57.5 percent
• GAAP diluted earnings per share of $0.48
• Non-GAAP diluted earnings per share of $2.18
• GAAP operating margin of 15.5 percent
• Record non-GAAP operating margin of 31.2 percent
• Record cash flow from operations for full-year FY2021

SAN JOSE, Calif., – August 5, 2021 – Synaptics Incorporated (Nasdaq: SYNA), today reported financial results for its fourth fiscal quarter and fiscal year 2021 ended June 26, 2021.

Net revenue for the fourth quarter of fiscal 2021 was $327.8 million. GAAP net income for the fourth quarter of fiscal 2021 was $19.0 million, or $0.48 per diluted share. Non-GAAP net income for the fourth quarter of fiscal 2021 was $86.6 million, or $2.18 per diluted share.

For the full year fiscal 2021, net revenue of $1.34 billion was flat to the prior year of $1.33 billion. Gross margin for the Company’s products continued to expand with GAAP gross margin for the fiscal year 2021 of 45.6 percent compared to 40.7 percent in the prior year; and non-GAAP gross margin of 53.6 percent compared to 43.7 percent in the prior year. GAAP net income for the recently completed fiscal year was $79.6 million or $2.08 per diluted share compared to the prior year of $118.8 million or $3.41 per diluted share. Non-GAAP net income for the recently complete fiscal year was $316.4 million or $8.26 per diluted share compared to the prior year of $207.2 million or $5.95 per diluted share.

“Synaptics completed fiscal year 2021 with terrific results, including several financial records for the company, most significant of which were record GAAP and non-GAAP gross margins in the June quarter. In addition, we made progress throughout the year tilting our portfolio toward our IoT products which now represent more than 50% of our overall revenue,” said Michael Hurlston, Synaptics’ President and CEO.

Business Outlook

Dean Butler, Chief Financial Officer of Synaptics, added, “Entering our first quarter of the new fiscal year, we expect to maintain our gross margin strength as ramping design wins fuel our continued IoT growth trajectory. Our backlog remains strong with our customer demand continuing to outpace supply availability; we have once again factored in the current semiconductor supply chain constraints into our September quarter guidance.”

For the first quarter of fiscal 2022, the company expects:

GAAP Non-GAAP Adjustment Non-GAAP Revenue $355M to $385M N/A N/A Gross Margin* 52.0 percent to 53.5 percent $17.9M 57.0 percent to 58.0 percent Operating Expense** $123M to $128M $36M to $38M $87M to $90M

*Projected Non-GAAP gross margin excludes $16.9 million of intangible asset amortization, and $1.0 million of share-based compensation.

**Projected Non-GAAP operating expense excludes $23 million to $24 million of share-based compensation, $2.0 million to $3.0 million of restructuring costs, $2.5 million of prepaid development amortization, and $8.5 million of intangible asset amortization.

Earnings Call and Supplementary Materials

The Synaptics fourth quarter and fiscal 2021 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, August 5, 2021, during which the company will provide forward-looking information.

Speakers:

• Michael Hurlston, President and Chief Executive Officer
• Dean Butler, Chief Financial Officer

To participate on the live call, analysts and investors should dial 833-614-1539 (conference ID: 9299775). 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/.