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Synaptics Incorporated (SYNA)

  • Thu, Jul. 30, 4:36 PM
    • In addition to missing FQ4 estimates, Synaptics (NASDAQ:SYNA) is guiding for FQ1 revenue of $450M-$490M, below a $503.9M consensus. The ratio of mobile to PC product sales is expected to be similar to FQ4's (89%/11%).
    • The FQ1 outlook is said to reflect "positive trends in our touch and fingerprint products despite typical downward seasonality, offset by product cycle trends in display driver products." The company also mentioned in its FQ3 earnings call (transcript) the "ramp cycle of a large [display driver] customer" was a headwind. Apple is a known client.
    • Synaptics' buyback authorization was recently upped by $120M, bringing the total authorization to $198M. The company had $400M in cash at the end of FQ4, and $242M in debt. 5% of shares were repurchased in FY15.
    • Synaptics has fallen to $71.90 AH.
    • FQ4 results, PR
    | Thu, Jul. 30, 4:36 PM | 3 Comments
  • Thu, Jul. 30, 4:17 PM
    • Synaptics (NASDAQ:SYNA): FQ4 EPS of $1.57 misses by $0.09.
    • Revenue of $478.93M (+52.1% Y/Y) misses by $3.8M.
    • Press Release
    | Thu, Jul. 30, 4:17 PM | Comment!
  • Wed, Jul. 22, 11:11 AM
    • The Philadelphia Semi Index (SOXX -3.2%) has fallen to its lowest levels since February after Apple, ARM, and Linear Technology posted their calendar Q2 reports yesterday afternoon.
    • Apple (down 4.8%) beat estimates, but offered soft guidance and reported slightly below-consensus iPhone sales. ARM (down 3.8%) reported roughly in-line Q2 results and a 26% Y/Y increase in ARM-based chip shipments, while stating it expects 2015 results to be in-line with expectations.
    • Linear (down 7.8%) missed FQ4 estimates and provided weak FQ1 guidance. Notably, the analog/mixed-signal chipmaker added it saw bookings slow "considerably" towards the end of Q2, with industrial and PC demand particularly weak. Bookings have improved in July, but Linear is still "preparing for a difficult [Q3]." The company expresses optimism the downturn will be short.
    • Apple suppliers are seeing big losses (previous). As are Linear peers Texas Instruments (TXN -3.7%), ON Semi (ON -5.1%), Maxim (MXIM -3.5%), IDT (IDTI -6.5%, Apple Watch supplier), InPhi (IPHI -4%), Exar (EXAR -4.2%), and Analog Devices (downgraded by Drexel Hamilton).
    • Other decliners include Micron (MU -4.2%, also an Apple supplier), Synaptics (SYNA -6.4%, ditto), STMicroelectronics (STM -6.2%, downgraded by Citi), Freescale (FSL -4.8%, following merger partner/Apple supplier NXP lower), Microchip (MCHP -4.6%), Cypress (CY -4.3%), Lattice (LSCC -3.9%), and Silicon Motion (SIMO -4.4%).
    • Qualcomm, TI, Cirrus Logic, SanDisk, and Xilinx report this afternoon.
    | Wed, Jul. 22, 11:11 AM | 3 Comments
  • Tue, Jul. 14, 5:38 PM
    • Synaptics (NASDAQ:SYNA) will replace Rosetta Resources (to be acquired by Noble Energy) in the S&P MidCap 400 following Monday's close. REX American Resources will take Synaptics' spot in the S&P SmallCap 600.
    • First NBC Bank Holding (NASDAQ:FNBC) will replace RTI International Metals (to be acquired by Alcoa) in the S&P 600 following the July 22 close.
    • SYNA +1.3% AH. REX +3.6%. FNBC +2.2%.
    | Tue, Jul. 14, 5:38 PM | Comment!
  • Mon, Jul. 13, 1:39 PM
    • Press Release: "Synaptics Inc. (SYNA -0.6%) the leading developer of human interface solutions, today announced sampling of ClearPad® 4300, its second generation touch and display driver integration (TDDI) product targeting smartphones and tablets. This new single-chip solution is the first to combine Synaptics' best-in-class touch controller IP and systems level expertise with proven display driver technology developed in the company's Japan Design Center. TDDI enables Synaptics to rapidly expand market share in mainstream smartphone and tablet markets where adoption is poised to exceed 50 percent.

      The 4300 TDDI solution delivers lower overall system cost and a simplified supply chain, with enhanced capabilities enabling thinner devices, brighter displays and borderless designs for smartphones and tablets. An optimized user experience includes features such as low power wake-up gestures, unmatched gloved touch and moisture performance, face detect, grip suppression, and support for passive pen."
    • Editor's note: Synaptics officially launched its first TDDI chips - the ClearPad 4191 and 4291 - in March. The company is widely seen as having an early tech lead in the market. Shares sold off in June following a report Apple is working on TDDI chips for use in future iPhones.
    | Mon, Jul. 13, 1:39 PM | 1 Comment
  • Mon, Jun. 29, 8:50 AM
    • Oppenheimer's Andrew Uerkwitz, upgrading Synaptics (NASDAQ:SYNA) to Outperform with a $105 target: "Synaptics has declined 14% over the last seven trading days (vs. NASDAQ +0.3%) on what we believe is unjustified fear over a Digitimes article. It claimed that Apple is developing an in-house TDDI [touch controller/display driver] solution. We see this as highly speculative. And even if true, Apple's TDDI is unlikely to come to fruition until 2018. While we fully respect Apple's ability to integrate and build leading-edge solutions, we believe it is far too difficult to build a TDDI solution for the resolution and touch capabilities needed for an Apple device."
    • Shares haven't yet moved premarket; Nasdaq futures are down 1.2%. Based on Friday's close, Synaptics goes for just 12.3x an FY16 (ends June '16) EPS consensus of $7.01. The FY16 revenue growth consensus is at 18.9%.
    | Mon, Jun. 29, 8:50 AM | 1 Comment
  • Mon, Jun. 22, 9:54 AM
    • Digitimes reports Apple (NASDAQ:AAPL) is internally developing integrated touch controller/display driver (TDDI) ICs for use in future iPhones. The chips will also reportedly have integrated fingerprint sensors, and (notably) go into models sporting "a whole plane design eliminating the Home button."
    • Synaptics (NASDAQ:SYNA), generally seen as having an early tech lead in the TDDI IC market, is off sharply in early trading. The company officially launched its ClearPad 4191 and 4291 TDDI ICs in early March, while stating they've begun sampling with tier-1 OEMs.
    • Synaptics' recently-acquired Renesas SP Drivers driver IC unit has long been an iPhone supplier. Meanwhile, thanks to the Validity Sensors acquisition, Synaptics has become a major fingerprint sensor supplier for Android OEMs; the company has been working on integrated fingerprint/touch sensor solutions.
    | Mon, Jun. 22, 9:54 AM | 6 Comments
  • Wed, May 27, 3:00 PM
    • Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
    • A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
    • Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
    • Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
    | Wed, May 27, 3:00 PM | 41 Comments
  • Fri, May 22, 12:51 PM
    • As part of a broader chip stock coverage launch, Mizuho's Vijay Rakesh has assigned Buy ratings to Micron (MU +2.2%), Avago (AVGO +1.8%), and Synaptics (SYNA +2.6%). His targets are respectively $39, $150, and $115.
    • Like other bulls, Rakesh sees Micron's PC DRAM sales (recently under pressure) improving in 2H15, aided by the launch of Windows 10 and Intel's 14nm Skylake CPU platform. He also downplays concerns about Micron's 20nm DRAM transition, thinks tri-level cell (TLC) and 3D NAND ramps will drive NAND gross margin improvement, and likes the hiring of Ernie Maddock as CFO.
    • Rakesh forecasts Avago will continue benefiting from strong FBAR filter sales (boosted by 4G phone growth), growing smartphone dollar content, and the Chinese 4G ramp (aided by recent carrier tariff cuts). "AVGO is completely booked on its FBAR filter capacity through 2015 and the ramp of its industry leading 8-inch FBAR wafer capacity will likely lead to significant operational efficiencies versus its peers"
    • He also notes Cisco is seeing strong sales for its ASR 9000 edge router line, which Avago has exposure to, and expects the Emulex deal to boost margins and EPS.
    • TDDI (integrated touch/display driver) ICs, fingerprint sensor sales, and Chinese 4G demand are expected to act as tailwinds for Synaptics. Rakesh forecasts the company will produce FY16 (ends June '16) free cash flow of $304M, and thinks this could pave the way for buybacks.
    • Synaptics has made fresh highs, and Avago is within $5 of a high of $136.28. Micron remains 25% below a high of $36.59.
    | Fri, May 22, 12:51 PM | 3 Comments
  • Mon, May 18, 2:10 PM
    • Many chip stocks are turning in healthy gains amid a 0.7% gain for the Nasdaq after the NY Post reported Altera (up 6.2%) has resumed buyout talks with Intel.
    • Also possibly helping: China's big-3 carriers have announced major data tariff cuts. Brean has argued the cuts are a positive for RF chipmakers Skyworks (SWKS +5.7%), Qorvo (QRVO +4.2%), and Avago (AVGO +1.9%); the companies benefit from rising 4G phone sales.
    • Aside from the aforementioned companies, today's gainers include Synaptics (SYNA +4.8%), Himax (HIMX +2.3%), and Silicon Motion (SIMO +2.3%), each of whom also has Chinese mobile exposure. Other winners include Atmel (ATML +3.7%), Microsemi (MSCC +2.6%), InPhi (IPHI +2%), Intersil (ISIL +2.5%), Silicon Labs (SLAB +2.5%), IDT (IDTI +2.3%), and MaxLinear (MXL +3.5%).
    | Mon, May 18, 2:10 PM | 1 Comment
  • Mon, May 11, 5:08 PM
    • Wajid Ali, formerly the controller at defense/aerospace subsystem maker Teledyne Technologies, is Synaptics' (NASDAQ:SYNA) new CFO.
    • Ali replaces Kathleen Bayless, who announced plans to retire last December.
    | Mon, May 11, 5:08 PM | Comment!
  • Thu, Apr. 23, 5:07 PM
    • Though it beat FQ3 estimates, Synaptics (NASDAQ:SYNA) FQ4 revenue guidance of $460M-$500M is only in-line with a $480.5M consensus.
    • The outlook is said to reflect "positive trends on a sequential basis in [Synaptics'] touch and fingerprint products, partially offset by product cycle trends in display driver products." The company is 6 months removed from closing its purchase of Renesas' LCD driver IC unit.
    • Mobile product revenue (boosted by the Renesas deal) rose 177% Y/Y in FQ3 to $417.4M. With the help of fingerprint sensor growth, PC revenue rose 12% to $60.2M in spite of weak industry sales.
    • Shares have fallen to $86.43 AH. They went into earnings $4.23 removed from a high of $93.27.
    • FQ3 results, PR
    | Thu, Apr. 23, 5:07 PM | Comment!
  • Thu, Apr. 23, 4:18 PM
    • Synaptics (NASDAQ:SYNA): FQ3 EPS of $1.65 beats by $0.07.
    • Revenue of $477.59M (+133.8% Y/Y) beats by $6.06M.
    • Press Release
    | Thu, Apr. 23, 4:18 PM | 1 Comment
  • Wed, Apr. 22, 12:36 AM
    • Synaptics (NASDAQ:SYNA) has sued Chinese touch controller/fingerprint sensor IC vendor Goodix Technology and Florida-based smartphone OEM BLU Products for allegedly infringing several Synaptics patents related to touch sensing IP.
    • Complaints have been filed both with the ITC and a Northern California federal court (a favorite haunt of Silicon Valley companies filing infringement suits). Naturally, an ITC import ban is sought, as well as a cease and desist order for U.S. sales.
    • News of the suits comes ahead of Synaptics' Thursday FQ3 report. The company has been battling with low-cost Asian touch controller vendors for design wins with Chinese OEMs; it's counting on its recently-launched TDDI (integrated touch controller/display driver) ICs to maintain a strong high-end share.
    | Wed, Apr. 22, 12:36 AM | Comment!
  • Wed, Apr. 1, 1:24 AM
    • "The iPhone 6 (NASDAQ:AAPL) Has Met Its Match," reads the headline for the WSJ's review of Samsung's (OTC:SSNLF) Galaxy S6.
    • Reviewer/iPhone 6 owner Joanna Stern: "Like a child who just found out that Santa isn’t real, I have spent the past week questioning everything I know." She's a fan of the S6's glass/metal body with dual Gorilla Glass 4 (NYSE:GLW) panes, as well as its 2K OLED display, improved fingerprint sensor, rapid charging support, and 16MP OIS-capable camera. "The Galaxy S6 destroys HTC’s new One M9 and other flagship Android phones ... on photo quality."
    • The Verge's Dieter Bohn gives the S6 8.8/10 stars. "Samsung finally copied the right thing: caring about design." Bohn declares the S6 to have "one of the finest screens I have ever seen on a phone," thanks to a 577 PPI pixel density and improved color awareness. He also calls the device (powered by an 8-core Exynos CPU) "probably the fastest Android phone I’ve ever used."
    • BGR's Zach Epstein: "Samsung’s Galaxy S6 features a stunning design that manages to be sleek and elegant, yet modern ... Samsung has raised the bar when it comes to smartphone screens ... Samsung finally stopped obsessing about increasing its [camera] megapixel counts and instead focused on improving its optics, design and software performance ... I’ve never used a phone that charged from empty to full as quickly as this one."
    • Samsung's software, though declared to be improved from the S5's (less bloatware, and what remains is often buried), still gets some criticism. Epstein reports seeing a lag with some UI features, and Stern is critical of Samsung's icons and keyboard. Also: Reviewers generally see little reason to pay an extra $100 for the curved S6 Edge, and some Android users might not like the S6's lack of a removable battery or microSD slot.
    • Ahead of the reviews, there have been reports Samsung has upped S6 production due to strong early interest. The phone goes on sale on April 10.
    • Other reviews: TechCrunch, CNET, Re/code, TechRadar
    • Expected S6 suppliers: BRCM, INVN, OLED, SYNA, MXIM, IDTI
    • A month ago: Samsung launches metal/glass S6 with Gorilla Glass 4, 2K display, new fingerprint sensor
    | Wed, Apr. 1, 1:24 AM | 66 Comments
  • Fri, Mar. 27, 4:54 PM
    • After falling hard on Wednesday amid cautious remarks from TSMC (TSM -1.1%), and falling again (to a lesser extent) on Thursday in the wake of SanDisk's warning, chip stocks rallied during the final 30 minutes of trading (SOXX +2.8%) in response to a WSJ report stating Intel is in talks to buy FPGA vendor Altera. A deal would be among the biggest in the chip industry's non-stop consolidation wave, rivaled only by NXP/Freescale.
    • In addition to Altera rivals Xilinx and Lattice (previously covered), chipmakers catching a bid included Avago (AVGO +2.8%), InvenSense (INVN +2.6%), Cirrus Logic (CRUS +2.5%), Synaptics (SYNA +1.9%), Analog Devices (ADI +2.5%), QuickLogic (QUIK +3.8%) (a smaller FPGA maker), and Fairchild (FCS +3.2%).
    • InvenSense has occasionally been the subject of speculation Intel or Qualcomm could make a bid. Acquisition-hungry Avago, meanwhile, is reportedly on the hunt for new deals after bidding for Freescale.
    • More than a few analysts have defended chip stocks following the TSMC remarks. Jefferies and Susquehanna have argued TSMC's issues are due to share loss to Samsung (partly for Apple/Qualcomm orders), and BMO notes Nvidia (a major TSMC client) recently disclosed adding Samsung as a foundry partner. It's a fan of Synaptics and Maxim (MXIM +2.2%) due to their Galaxy S6 exposure.
    • BofA/Merrill reports seeing pockets of excess chip inventory (for PCs and emerging markets smartphones) during a Taiwanese trip, but thinks Apple and Samsung phone-related orders are healthy, as are auto, industrial, and data center chip demand.
    • Credit Suisse: "Our cyclical and structural call on Semis remains unchanged – cycle-to-date has been well behaved, Semi rev to global GDP is poised to inflect higher and Semis relative valuation still attractive – growing top/bottom line faster than SPX, twice the margin profile, essentially same dividend yield trading at a two turn discount."
    | Fri, Mar. 27, 4:54 PM | Comment!
Company Description
Synaptics Inc is a developer and supplier of custom-designed human interface solutions that enable people to interact easily and intuitively with mobile computing, communications, entertainment, and other electronic devices.
Sector: Technology
Country: United States