Q2’21 Financial Results and Recent Business Highlights

• Revenue of $357.6 million
• GAAP Gross Margin of 42.1 percent
• Record non-GAAP Gross Margin of 52.1 percent
• GAAP diluted earnings per share of $1.36
• Record non-GAAP diluted earnings per share of $2.30
• Record revenue for IoT and PC businesses for the December quarter

SAN JOSE, Calif., – February 4, 2021 – Synaptics Incorporated (NASDAQ: SYNA), today reported financial results for its second fiscal quarter ended December 26, 2020.

Net revenue for the second quarter of fiscal 2021 was $357.6 million. GAAP net income for the second quarter of fiscal 2021 was $49.6 million, or $1.36 per diluted share. Non-GAAP net income for the second quarter of fiscal 2021 was $83.8 million, or $2.30 per diluted share.

“Synaptics delivered an outstanding December quarter with revenues exceeding the mid-point of our guidance, and the highest non-GAAP gross margins, net income and EPS in the company’s 35-year history,” said Michael Hurlston, Synaptics’ president and CEO. “Overall, our diversification strategy with a tilt toward IoT and PC is paying dividends with both businesses delivering record revenue in the quarter. IoT now represents our largest business, giving us a stable foundation from which we can more aggressively drive top line growth.”   

Business Outlook
Dean Butler, Chief Financial Officer of Synaptics, added, “For our third fiscal quarter, we see continued strength in our PC business, and expect our IoT business to outperform typical seasonality aided by a robust pipeline of design wins. We anticipate gross margins to remain strong and our revenue mix to continue shifting toward IoT. While supply-chain constraints likely limit further upsides in the near-term, we believe we are well positioned to deliver further improvements in gross margins and profitability over the long term.”

For the third quarter of fiscal 2021, the company expects:

 

GAAP

Non-GAAP Adjustment

Non-GAAP

Revenue

$310M to $340M

N/A

N/A

Gross Margin

43.5 percent to 46.5 percent

$24M

51.5 percent to
53.5 percent

Operating Expense

$117M to $123M

$31M to $34M

$86M to $89M

*Projected Non-GAAP gross margin excludes $19 million of intangible asset amortization, $1 million of stock-based compensation, and $4 million of inventory fair value adjustments.

**Projected Non-GAAP operating expense excludes $19 million to $22 million of stock-based compensation, up to $1 million of restructuring costs, $2.5 million of prepaid development amortization, and $9 million of intangible asset amortization.

Earnings Call and Supplementary Materials
The Synaptics second quarter and fiscal 2021 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, February 4, 2021, during which the company will provide forward-looking information.

Speakers:

• Michael Hurlston, President and Chief Executive Officer
• Dean Butler, Chief Financial Officer
• Jason Tsai, Head of Investor Relations

To participate on the live call, analysts and investors should dial 833-614-1539 (conference ID: 8899476). 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/.