Synaptics Reports Fourth Quarter and Full Year Fiscal 2024 Results
Synaptics (Nasdaq: SYNA) reported its Q4'24 and fiscal 2024 financial results. For Q4'24, revenue was $247.4 million, with a GAAP gross margin of 45.8% and non-GAAP gross margin of 53.4%. GAAP diluted EPS stood at $5.22, while non-GAAP diluted EPS was $0.64. Full-year fiscal 2024 revenue reached $959.4 million, with a GAAP gross margin of 45.8% vs. 52.8% the prior year, and a non-GAAP gross margin of 53.0% vs. 60.1% the prior year. GAAP net income was $125.6 million or $3.16 per diluted share, whereas non-GAAP net income was $89.4 million or $2.25 per diluted share. CEO Michael Hurlston noted improvements in supply chain challenges and demand, with Core IoT products growing 63% YoY in Q4. For Q1 fiscal 2025, the company projects revenue of $255M ± $15M, and a non-GAAP gross margin of 53.5% ± 1.0%.
Synaptics (Nasdaq: SYNA) ha riportato i risultati finanziari per il quarto trimestre del 2024 e per l'anno fiscale 2024. Per il Q4'24, i ricavi sono stati di 247,4 milioni di dollari, con un margine lordo GAAP del 45,8% e un margine lordo non-GAAP del 53,4%. L'EPS diluito GAAP si è attestato a 5,22 dollari, mentre l'EPS diluito non-GAAP era di 0,64 dollari. I ricavi totali per l'anno fiscale 2024 hanno raggiunto 959,4 milioni di dollari, con un margine lordo GAAP del 45,8% rispetto al 52,8% dell'anno precedente, e un margine lordo non-GAAP del 53,0% rispetto al 60,1% dell'anno scorso. Il reddito netto GAAP è stato di 125,6 milioni di dollari, ovvero 3,16 dollari per azione diluita, mentre il reddito netto non-GAAP è stato di 89,4 milioni di dollari, ovvero 2,25 dollari per azione diluita. Il CEO Michael Hurlston ha sottolineato i miglioramenti nelle sfide della catena di approvvigionamento e nella domanda, con i prodotti Core IoT che hanno registrato una crescita del 63% anno su anno nel Q4. Per il primo trimestre dell'anno fiscale 2025, l'azienda prevede ricavi di 255 milioni di dollari ± 15 milioni, e un margine lordo non-GAAP del 53,5% ± 1,0%.
Synaptics (Nasdaq: SYNA) informó sobre sus resultados financieros del cuarto trimestre de 2024 y del año fiscal 2024. Para el Q4'24, los ingresos fueron de 247,4 millones de dólares, con un margen bruto GAAP del 45,8% y un margen bruto no GAAP del 53,4%. El EPS diluido GAAP alcanzó los 5,22 dólares, mientras que el EPS diluido no GAAP fue de 0,64 dólares. Los ingresos totales del año fiscal 2024 alcanzaron los 959,4 millones de dólares, con un margen bruto GAAP del 45,8% en comparación con el 52,8% del año anterior, y un margen bruto no GAAP del 53,0% en comparación con el 60,1% del año anterior. El ingreso neto GAAP fue de 125,6 millones de dólares o 3,16 dólares por acción diluida, mientras que el ingreso neto no GAAP fue de 89,4 millones de dólares o 2,25 dólares por acción diluida. El CEO Michael Hurlston destacó las mejoras en los desafíos de la cadena de suministro y en la demanda, con los productos Core IoT que crecieron un 63% interanual en el Q4. Para el primer trimestre del año fiscal 2025, la empresa proyecta ingresos de 255 millones de dólares ± 15 millones, y un margen bruto no GAAP del 53,5% ± 1,0%.
Synaptics (나스닥: SYNA)는 2024년 4분기 및 2024 회계연도 재무 결과를 발표했습니다. 2024년 4분기 매출은 2억 4천 740만 달러였으며, GAAP 총 이익률은 45.8%, 비 GAAP 총 이익률은 53.4%였습니다. GAAP 희석 주당순이익(EPS)은 5.22달러, 비 GAAP 희석 주당순이익은 0.64달러였습니다. 2024 회계연도의 총 매출은 9억 5천 940만 달러에 달했으며, GAAP 총 이익률은 45.8%로 전년 대비 52.8%에서 감소했고, 비 GAAP 총 이익률은 53.0%로 전년 대비 60.1%에서 감소했습니다. GAAP 순이익은 1억 2천 560만 달러, 즉 희석 주당 3.16달러였고, 비 GAAP 순이익은 8940만 달러, 즉 희석 주당 2.25달러였습니다. CEO 마이클 헐스턴은 공급망 문제와 수요의 개선을 언급하며, Core IoT 제품이 4분기 동안 전년 대비 63% 성장했다고 강조했습니다. 2025 회계연도 첫 분기에 대해 회사는 2억 5천 500만 달러 ± 1500만 달러의 매출과 비 GAAP 총 이익률 53.5% ± 1.0%를 예상하고 있습니다.
Synaptics (Nasdaq : SYNA) a annoncé ses résultats financiers pour le quatrième trimestre de 2024 et pour l'exercice fiscal 2024. Pour le Q4'24, le chiffre d'affaires s'est élevé à 247,4 millions de dollars, avec une marge brute GAAP de 45,8 % et une marge brute non-GAAP de 53,4 %. Le BPA dilué GAAP était de 5,22 dollars, tandis que le BPA dilué non-GAAP s'élevait à 0,64 dollar. Le chiffre d'affaires total pour l'exercice fiscal 2024 a atteint 959,4 millions de dollars, avec une marge brute GAAP de 45,8 % contre 52,8 % l'année précédente, et une marge brute non-GAAP de 53,0 % contre 60,1 % l'année précédente. Le bénéfice net GAAP était de 125,6 millions de dollars, soit 3,16 dollars par action diluée, tandis que le bénéfice net non-GAAP était de 89,4 millions de dollars, soit 2,25 dollars par action diluée. Le PDG Michael Hurlston a noté des améliorations dans les défis de la chaîne d'approvisionnement et de la demande, avec une croissance de 63 % en glissement annuel des produits Core IoT au Q4. Pour le premier trimestre de l'exercice fiscal 2025, l'entreprise prévoit un chiffre d'affaires de 255 millions de dollars ± 15 millions, et une marge brute non-GAAP de 53,5 % ± 1,0 %.
Synaptics (Nasdaq: SYNA) hat seine finanziellen Ergebnisse für das vierte Quartal 2024 und das Geschäftsjahr 2024 veröffentlicht. Im Q4'24 betrugen die Einnahmen 247,4 Millionen US-Dollar, mit einer GAAP-Bruttomarge von 45,8 % und einer Non-GAAP-Bruttomarge von 53,4 %. Der verwässerte GAAP-Gewinn je Aktie lag bei 5,22 US-Dollar, während der verwässerte Non-GAAP-Gewinn je Aktie 0,64 US-Dollar betrug. Der Jahresumsatz 2024 belief sich auf 959,4 Millionen US-Dollar, mit einer GAAP-Bruttomarge von 45,8 % im Vergleich zu 52,8 % im Vorjahr und einer Non-GAAP-Bruttomarge von 53,0 % im Vergleich zu 60,1 % im Vorjahr. Der GAAP-Nettoertrag betrug 125,6 Millionen US-Dollar oder 3,16 US-Dollar pro verwässerter Aktie, während der Non-GAAP-Nettoertrag 89,4 Millionen US-Dollar oder 2,25 US-Dollar pro verwässerter Aktie betrug. CEO Michael Hurlston wies auf Verbesserungen in den Herausforderungen der Lieferkette und der Nachfrage hin, wobei die Core-IoT-Produkte im Q4 im Jahresvergleich um 63 % wuchsen. Für das erste Quartal des Geschäftsjahres 2025 rechnet das Unternehmen mit Einnahmen von 255 Millionen US-Dollar ± 15 Millionen und einer Non-GAAP-Bruttomarge von 53,5 % ± 1,0 %.
- Revenue for Q4'24 reached $247.4 million.
- GAAP diluted EPS for Q4'24 was $5.22.
- Core IoT products grew 63% YoY in Q4'24.
- Non-GAAP gross margin for Q4'24 was 53.4%.
- Full-year revenue for fiscal 2024 was $959.4 million.
- GAAP gross margin for fiscal 2024 decreased to 45.8% from 52.8% in the prior year.
- Non-GAAP gross margin for fiscal 2024 decreased to 53.0% from 60.1% in the prior year.
- GAAP net income for fiscal 2024 was $125.6 million compared to $208.3 million in Q4'24.
Q4’24 Financial Results and Recent Business Highlights
- Revenue of
$247.4 million - GAAP gross margin of 45.8 percent
- Non-GAAP gross margin of 53.4 percent
- GAAP diluted earnings per share of
$5.22 - Non-GAAP diluted earnings per share of
$0.64
SAN JOSE, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Synaptics Incorporated (Nasdaq: SYNA), today reported financial results for its fourth quarter and full year of fiscal 2024 ended June 29, 2024.
Net revenue for the fourth quarter of fiscal 2024 was
For the full year fiscal 2024, net revenue was
“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. Our Core IoT products grew
Business Outlook
Mr. Hurlston added, “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. Our balance sheet remains strong, providing the company with ample flexibility to drive growth and fund our strategic initiatives.”
For the first quarter of fiscal 2025, the company expects:
| GAAP | Non-GAAP Adjustment | Non-GAAP | |
| Revenue | N/A | N/A | |
| Gross Margin* | 45.0 percent ± 1.5percent | 53.5 percent ± 1.0 percent | |
| Operating Expense** |
*Non-GAAP gross margin excludes intangible asset amortization and share-based compensation.
** Non-GAAP operating expense excludes share-based compensation, restructuring costs and intangible asset amortization.
Earnings Call and Supplementary Materials
The Synaptics fourth quarter 2024 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, August 8, 2024, during which the company will provide forward-looking information.
Speakers:
- Michael Hurlston, President and Chief Executive Officer
- Ken Rizvi, Chief Financial Officer
- Matt Padfield, Vice President FP&A
To participate on the live call, analysts and investors should pre-register at Synaptics Q4 FY2024 Earnings Call Registration.
https://register.vevent.com/register/BI2bc08f03d13942d0805b232e6eca6eef. 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:
Synaptics (Nasdaq: SYNA) is changing the way humans engage with connected devices and data, engineering exceptional experiences throughout the home, at work, in the car and on the go. Synaptics is the partner of choice for the world’s most innovative intelligent system providers who are integrating multiple experiential technologies into platforms that make our digital lives more productive, insightful, secure and enjoyable. These customers are combining Synaptics’ differentiated technologies in touch, display and biometrics with a new generation of advanced connectivity and AI-enhanced video, vision, audio, speech and security processing. Follow Synaptics on LinkedIn, X and Facebook, or visit synaptics.com.
Use of Non-GAAP Financial Information
In evaluating its business, Synaptics considers and uses Non-GAAP Net Income, which we define as net income excluding share-based compensation, acquisition related costs, and certain other non-cash or recurring and non-recurring items the company does not believe are indicative of its core operating performance as a supplemental measure of operating performance. Non-GAAP Net Income is not a measurement of the company’s financial performance under GAAP and should not be considered as an alternative to GAAP net income. The company presents Non-GAAP Net Income because it considers it an important supplemental measure of its performance since it facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges, acquisition related costs, and certain other non-cash or recurring and non-recurring items. Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company’s GAAP net income. The principal limitations of this measure are that it does not reflect the company’s actual expenses and may thus have the effect of inflating its net income and net income per share as compared to its operating results reported under GAAP. In addition, the company presents components of Non-GAAP Net Income, such as Non-GAAP Gross Margin, Non-GAAP operating expenses and Non-GAAP operating margin, for similar reasons.
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 and integration related costs
Acquisition and integration related costs primarily consist of:
- amortization of purchased intangibles, which includes acquired intangibles such as developed technology, customer relationships, trademarks, backlog, licensed technology, patents, and in-process technology when post-acquisition development is determined to be substantively complete;
- inventory fair value adjustments affecting the carrying value of inventory acquired in an acquisition;
- transitory post-acquisition incentive programs negotiated in connection with an acquired business or designed to encourage post-acquisition retention of key employees; and
- legal and consulting costs associated with acquisitions, including non-recurring post-acquisition costs and services.
These acquisition and integration 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, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition 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 related items.
Share-based compensation
Share-based compensation expense relates to employee equity award programs and the vesting of the underlying awards, which includes stock options, deferred stock units, market stock units, performance stock units, phantom stock units and the employee stock purchase plan. Share-based compensation settled with stock, which includes stock options, deferred stock units, market stock units, performance stock units and the employee stock purchase plan, is a non-cash expense, while share-based compensation settled with cash, which includes phantom stock units, is a cash expense. Settlement of all employee equity award programs, whether settled with cash or stock, varies in amount from period to period and is dependent on market forces that are often beyond the company’s control. As a result, the company excludes share-based compensation from its internal operating forecasts and models. The company believes that Non-GAAP measures reflecting adjustments for share-based compensation provide investors with a basis to compare the company’s principal operating performance against the performance of peer companies without the variability created by share-based compensation resulting from the variety of equity-linked compensatory awards used by other companies and the varying methodologies and assumptions used.
Amortization of prepaid development costs
Amortization of prepaid development costs represents the amortization of the estimated cost to develop certain future roadmap devices designed in advance process nodes in connection with an acquisition. The amortization of prepaid development costs represents a non-cash charge. As a result, the company excludes amortization of prepaid development costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting adjustments for amortization of prepaid development costs provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by the amortization of prepaid development costs.
Intangible asset impairment charge
Intangible asset impairment charge represent the excess carrying value of an indefinite-lived asset over its fair value. The intangible asset impairment charge is a non-cash charge. The company excludes intangible asset impairment charge from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures, reflecting adjustments for intangible asset impairment charge, provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by the intangible asset impairment charge.
Restructuring costs
Restructuring costs are costs incurred to address cost structure inefficiencies of acquired or existing business operations and consist primarily of employee termination and office closure costs, including the reversal of such costs. These costs are generally cash-based. As a result, the company excludes restructuring costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting adjustments for restructuring costs provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by restructuring costs designed to address cost structure inefficiencies of acquired or existing business operations.
Site remediation accrual
Site remediation accrual represents an update to the estimated future costs associated with the ongoing planning and remediation of a site contamination project from an acquisition. As we evaluate progress on our ongoing remediation effort and as we work with governmental organizations to update our remediation plan to meet the evolving guidelines, we estimate costs associated with plan revisions to determine if our liability has changed. Excluding the site remediation accrual from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with the site remediation accrual.
Legal or vendor settlement accruals
Legal or vendor settlement accruals represent our estimated cost of settling legal or vendor claims that are unusual or infrequent. As a result, the company will exclude these settlement charges from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that non-GAAP measures reflecting an adjustment for settlement charges provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by unusual or infrequent settlement accruals designed to address non-recurring or non-routine costs.
Other non-cash items
Other non-cash items include non-cash amortization of debt discount and issuance costs. These items are excluded from Non-GAAP results as they are non-cash. Excluding other non-cash items from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with other non-cash items.
Non-GAAP tax adjustments
The company forecasts its long-term Non-GAAP tax rate in order to provide investors with improved long-term modeling accuracy and consistency across financial reporting periods by eliminating the effects of certain items in our Non-GAAP net income and Non-GAAP net income per share, including the type and amount of share-based compensation, the taxation of post-acquisition intercompany intellectual property cross-licensing or transfer transactions, and the impact of other acquisition items that may or may not be tax deductible. The company intends to evaluate its long-term Non-GAAP tax rate annually for significant events, including material tax law changes in the major tax jurisdictions in which the company operates, corporate organizational changes related to acquisitions or tax planning opportunities, and substantive changes in our geographic earnings mix.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements may include words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements reflect our best judgment and are based on several factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Such factors include, but are not limited to, the risk that our business, results of operations and financial condition and prospects may be materially and adversely affected by the temporary reduction in demand for our products resulting from accumulated inventories held by our customers and channel partners; the risks as identified in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of our most recent Annual Report on Form 10-K and our most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in our Securities and Exchange Commission reports. Forward-looking statements are based on information available to us on the date hereof, and we do not have, and expressly disclaim, any obligation to publicly release any updates or any changes in our expectations, or any change in events, conditions, or circumstances on which any forward-looking statement is based. Our actual results and the timing of certain events could differ materially from the forward-looking statements. These forward-looking statements do not reflect the potential impact of any mergers, acquisitions, or other business combinations that had not been completed as of the date of this release.
For more information contact:
Munjal Shah
Head of Investor Relations
munjal.shah@synaptics.com
| SYNAPTICS INCORPORATED | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In millions) | |||||||
| (Unaudited) | |||||||
| June 2024 | June 2023 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 876.9 | $ | 924.7 | |||
| Short-term investments | — | 9.6 | |||||
| Accounts receivable, net | 142.4 | 163.9 | |||||
| Inventories, net | 114.0 | 137.2 | |||||
| Prepaid expenses and other current assets | 29.0 | 36.6 | |||||
| Total current assets | 1,162.3 | 1,272.0 | |||||
| Property and equipment at cost, net | 75.5 | 66.4 | |||||
| Goodwill | 816.4 | 816.4 | |||||
| Purchased intangibles, net | 288.4 | 298.5 | |||||
| Non-current other assets | 482.4 | 158.1 | |||||
| $ | 2,825.0 | $ | 2,611.4 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 87.5 | $ | 45.8 | |||
| Accrued compensation | 27.4 | 45.9 | |||||
| Income taxes payable | 42.2 | 54.0 | |||||
| Other accrued liabilities | 114.1 | 108.4 | |||||
| Current portion of debt | 6.0 | 6.0 | |||||
| Total current liabilities | 277.2 | 260.1 | |||||
| Long-term debt | 966.9 | 972.0 | |||||
| Other long-term liabilities | 114.1 | 135.9 | |||||
| Total liabilities | 1,358.2 | 1,368.0 | |||||
| Stockholders' Equity: | |||||||
| Common stock and additional paid-in capital | 1,107.1 | 1,009.3 | |||||
| Treasury stock | (878.0 | ) | (878.0 | ) | |||
| Accumulated other comprehensive income | — | — | |||||
| Retained earnings | 1,237.7 | 1,112.1 | |||||
| Total stockholders' equity | 1,466.8 | 1,243.4 | |||||
| $ | 2,825.0 | $ | 2,611.4 | ||||
| SYNAPTICS INCORPORATED | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (In millions, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| June 2024 | June 2023 | June 2024 | June 2023 | ||||||||||||
| Net revenue | $ | 247.4 | $ | 227.3 | $ | 959.4 | $ | 1,355.1 | |||||||
| Acquisition related costs (1) | 17.8 | 24.5 | 64.3 | 95.0 | |||||||||||
| Cost of revenue | 116.2 | 101.6 | 455.3 | 544.2 | |||||||||||
| Gross margin | 113.4 | 101.2 | 439.8 | 715.9 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 84.4 | 84.5 | 336.3 | 351.2 | |||||||||||
| Selling, general, and administrative | 38.8 | 46.2 | 161.3 | 175.0 | |||||||||||
| Acquired intangibles amortization (2) | 3.9 | 8.5 | 17.3 | 35.4 | |||||||||||
| Intangible asset impairment charges (3) | 16.0 | — | 16.0 | — | |||||||||||
| Restructuring costs (4) | 1.4 | — | 10.5 | — | |||||||||||
| Total operating expenses | 144.5 | 139.2 | 541.4 | 561.6 | |||||||||||
| Operating (loss) income | (31.1 | ) | (38.0 | ) | (101.6 | ) | 154.3 | ||||||||
| Interest and other expense, net | (5.6 | ) | (6.3 | ) | (23.0 | ) | (28.3 | ) | |||||||
| (Loss) income before provision for income taxes | (36.7 | ) | (44.3 | ) | (124.6 | ) | 126.0 | ||||||||
| (Benefit) provision for income taxes (5) | (245.0 | ) | (20.9 | ) | (250.2 | ) | 52.4 | ||||||||
| Net income (loss) | $ | 208.3 | $ | (23.4 | ) | $ | 125.6 | $ | 73.6 | ||||||
| Net income (loss) per share: | |||||||||||||||
| Basic | $ | 5.27 | $ | (0.59 | ) | $ | 3.20 | $ | 1.86 | ||||||
| Diluted | $ | 5.22 | $ | (0.59 | ) | $ | 3.16 | $ | 1.83 | ||||||
| Shares used in computing net income (loss) per share: | |||||||||||||||
| Basic | 39.5 | 39.4 | 39.2 | 39.6 | |||||||||||
| Diluted | 39.9 | 39.4 | 39.7 | 40.2 | |||||||||||
| (1) These acquisition related costs consist primarily of amortization of acquired intangible assets and inventory fair value adjustments associated with acquisitions. | |||||||||||||||
| (2) These acquisition related costs consist primarily of amortization associated with certain acquired intangible assets. | |||||||||||||||
| (3) Intangible asset impairment charges represent the excess carrying value of certain indefinite-lived asset over its fair value. | |||||||||||||||
| (4) Restructuring costs primarily include severance related costs and facility consolidation costs associated with operational restructurings and acquisitions. | |||||||||||||||
| (5) The three months and year ended June 2024 provision for income taxes primarily reflects a one-time deferred tax benefit from the domestication, for US tax purposes, of certain foreign subsidiaries including the onshoring of certain intellectual property. | |||||||||||||||
| SYNAPTICS INCORPORATED | |||||||||||||||
| Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures | |||||||||||||||
| (In millions, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| June 2024 | June 2023 | June 2024 | June 2023 | ||||||||||||
| GAAP gross margin | $ | 113.4 | $ | 101.2 | $ | 439.8 | $ | 715.9 | |||||||
| Acquisition related costs | 17.8 | 24.5 | 64.3 | 95.0 | |||||||||||
| Share-based compensation | 1.0 | 1.0 | 4.2 | 4.0 | |||||||||||
| Non-GAAP gross margin | $ | 132.2 | $ | 126.7 | $ | 508.3 | $ | 814.9 | |||||||
| GAAP gross margin - percentage of revenue | 45.8 | % | 44.5 | % | 45.8 | % | 52.8 | % | |||||||
| Acquisition related costs - percentage of revenue | 7.2 | % | 10.8 | % | 6.7 | % | 7.0 | % | |||||||
| Share-based compensation - percentage of revenue | 0.4 | % | 0.4 | % | 0.5 | % | 0.3 | % | |||||||
| Non-GAAP gross margin - percentage of revenue | 53.4 | % | 55.7 | % | 53.0 | % | 60.1 | % | |||||||
| GAAP research and development expense | $ | 84.4 | $ | 84.5 | $ | 336.3 | $ | 351.2 | |||||||
| Share-based compensation | (15.3 | ) | (13.2 | ) | (61.0 | ) | (52.7 | ) | |||||||
| Amortization prepaid development costs | — | — | — | (5.8 | ) | ||||||||||
| Non-GAAP research and development expense | $ | 69.1 | $ | 71.3 | $ | 275.3 | $ | 292.7 | |||||||
| GAAP selling, general, and administrative expense | $ | 38.8 | $ | 46.2 | $ | 161.3 | $ | 175.0 | |||||||
| Share-based compensation | (10.3 | ) | (16.0 | ) | (53.7 | ) | (65.9 | ) | |||||||
| Site remediation accrual | — | — | (1.6 | ) | — | ||||||||||
| Acquisition/divestiture related costs | — | — | — | (1.8 | ) | ||||||||||
| Legal settlements, vendor settlement accrual and other | (1.1 | ) | (4.0 | ) | (1.1 | ) | (4.0 | ) | |||||||
| Non-GAAP selling, general, and administrative expense | $ | 27.4 | $ | 26.2 | $ | 104.9 | $ | 103.3 | |||||||
| GAAP operating (loss) income | $ | (31.1 | ) | $ | (38.0 | ) | $ | (101.6 | ) | $ | 154.3 | ||||
| Acquisition and integration related costs | 21.7 | 33.0 | 81.6 | 132.2 | |||||||||||
| Share-based compensation | 26.6 | 30.2 | 118.9 | 122.6 | |||||||||||
| Site remediation accrual | — | — | 1.6 | — | |||||||||||
| Legal settlements, vendor settlement accrual and other | 1.1 | 4.0 | 1.1 | 4.0 | |||||||||||
| Restructuring costs | 1.4 | — | 10.5 | — | |||||||||||
| Intangible asset impairment | 16.0 | — | 16.0 | — | |||||||||||
| Amortization prepaid development costs | — | — | — | 5.8 | |||||||||||
| Non-GAAP operating income | $ | 35.7 | $ | 29.2 | $ | 128.1 | $ | 418.9 | |||||||
| GAAP net income (loss) | $ | 208.3 | $ | (23.4 | ) | $ | 125.6 | $ | 73.6 | ||||||
| Acquisition and integration related costs | 21.7 | 33.0 | 81.6 | 132.2 | |||||||||||
| Share-based compensation | 26.6 | 30.2 | 118.9 | 122.6 | |||||||||||
| Restructuring costs | 1.4 | — | 10.5 | — | |||||||||||
| Intangible asset impairment | 16.0 | — | 16.0 | — | |||||||||||
| Site remediation accrual | — | — | 1.6 | — | |||||||||||
| Amortization prepaid development costs | — | — | — | 5.8 | |||||||||||
| Legal settlements, vendor settlement accrual and other | 1.1 | 4.0 | 1.1 | 4.0 | |||||||||||
| Other non-cash items | 0.7 | 0.6 | 2.6 | 2.6 | |||||||||||
| Non-GAAP tax adjustments (1) | (250.2 | ) | (24.9 | ) | (268.5 | ) | (14.4 | ) | |||||||
| Non-GAAP net income | $ | 25.6 | $ | 19.5 | $ | 89.4 | $ | 326.4 | |||||||
| GAAP net income (loss) per share - diluted | $ | 5.22 | $ | (0.59 | ) | $ | 3.16 | $ | 1.83 | ||||||
| Acquisition/divestiture and integration related costs | 0.54 | 0.84 | 2.08 | 3.29 | |||||||||||
| Share-based compensation | 0.67 | 0.77 | 3.03 | 3.05 | |||||||||||
| Restructuring costs | 0.04 | — | 0.27 | — | |||||||||||
| Intangible asset impairment | 0.40 | — | 0.41 | — | |||||||||||
| Site remediation accrual | — | — | 0.04 | — | |||||||||||
| Amortization prepaid development costs | — | — | — | 0.14 | |||||||||||
| Legal settlements, vendor settlement accrual and other | 0.03 | 0.10 | 0.03 | 0.10 | |||||||||||
| Other non-cash items | 0.02 | 0.02 | 0.07 | 0.06 | |||||||||||
| Non-GAAP tax adjustments (1) | (6.28 | ) | (0.64 | ) | (6.84 | ) | (0.35 | ) | |||||||
| Share adjustment | — | (0.01 | ) | — | — | ||||||||||
| Non-GAAP net income per share - diluted | $ | 0.64 | $ | 0.49 | $ | 2.25 | $ | 8.12 | |||||||
| (1) The three months and year ended June 2024 income tax impact of non-GAAP adjustments, primarily reflects a one-time deferred tax benefit from the domestication, for US tax purposes, of certain foreign subsidiaries including the onshoring of certain intellectual property. | |||||||||||||||
| SYNAPTICS INCORPORATED | |||||||
| CONDENSED CONSOLIDATED CASH FLOWS | |||||||
| (In millions) | |||||||
| (Unaudited) | |||||||
| Year Ended | |||||||
| June 2024 | June 2023 | ||||||
| Net income | $ | 125.6 | $ | 73.6 | |||
| Non-cash operating items | (19.8 | ) | 281.3 | ||||
| Changes in working capital | 30.1 | (23.4 | ) | ||||
| Provided by operating activities | 135.9 | 331.5 | |||||
| Acquisition and investments | — | (15.5 | ) | ||||
| Advance payment on intangible assets | (120.3 | ) | — | ||||
| Net proceeds from maturities and sales of short-term investments and other | 9.9 | 44.6 | |||||
| Purchase of property and equipment and other | (47.3 | ) | (35.1 | ) | |||
| Used in investing activities | (157.7 | ) | (6.0 | ) | |||
| Repurchases of common stock | — | (183.4 | ) | ||||
| Equity compensation, net | (21.0 | ) | (36.9 | ) | |||
| Payment of debt obligations | (7.5 | ) | (6.0 | ) | |||
| Other | 3.4 | 5.0 | |||||
| Used in financing activities | (25.1 | ) | (221.3 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (0.9 | ) | (3.5 | ) | |||
| Net change in cash and cash equivalents | (47.8 | ) | 100.7 | ||||
| Cash and cash equivalents at beginning of period | 924.7 | 824.0 | |||||
| Cash and cash equivalents at end of period | $ | 876.9 | $ | 924.7 | |||
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