- Though its FQ1 results topped estimates and the company's raised guidance, Synaptics (SYNA) is guiding for FQ2 revenue of $192M-$208M (exc. Validity Sensors), below a $209.4M consensus. Y/Y revenue growth is expected to slow to 34%-45% from FQ1's 75% clip.
- During a brief talk with Seeking Alpha, CEO Rick Bergman attributed the guidance to seasonality; OEMs that have been placing large orders and filled channels ahead of the holiday season are set to pare back orders towards year's end.
- Several other chipmakers with strong mobile exposure have also issued light Q4 guidance (I, II, III), but Synaptics' big 2013 run-up gives it limited margin for error.
- Bergman also admits Synaptics, like other chipmakers, is seeing a demand shift towards cheaper smartphones, which in turn can pressure ASPs. But he's optimistic about the ability of early 2014 hardware launches (inc. those at February's Mobile World Congress) to help Synaptics maintain its mobile momentum.
- Mobile sales totaled $162.7M in FQ1, -6% Q/Q but +152% Y/Y on account of this year's big design wins. PC sales +5% Q/Q and -4% Y/Y thanks to industry weakness. Gross margin was 49.1%, -90 bps Q/Q and +140 bps Y/Y. Opex +19% Y/Y to $62.1M.
Synaptics -7.5% AH due to guidance, seasonality blamed
Oct 24 2013, 18:34 ET