Synaptics Makes No Mention of Renewed iPod Deal; Stock Drops Hard (SYNA)

| About: Synaptics Incorporated (SYNA)
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Touchpad maker Synaptics (NASDAQ:SYNA) is down 9% in after hours trading, following its F2Q06 earnings report. The company did not disappoint on earnings expectations or forward guidance :

  • EPS $0.18 (down 51% y/y) or $0.27 before options costs -- beat analyst estimates of $0.24.
  • Revenue: $56.5 million -- beat analyst estimates of $48.4.
  • Guidance for F3Q06: Revenue: $42-45 million -- in line with estimates.
  • Perhaps the company's refusal to discuss a renewed deal to supply Apple's iPod with touchpads -- rumored for some time now -- contributed to the post-earnings selloff? From the conference call:

    Q - Andrew Neff (analyst)

    And then lastly, you made a statement on last call that you were not on the new Apple products, can you update us on that statement and all?

    A - Russell Knittel (CFO, Synaptics)

    We cannot comment specific to customers.

    Q - Andrew Neff

    So you did comment on that previously -- you put out [a statement] where you did comment.

    A - Russell Knittel

    At this point, we cannot comment.

    Q - Andrew Neff

    Thank you.

    Read the full conference call.

    SYNA 1-yr chart: