Synaptics, Incorporated (NASDAQ :
SYNA) is scheduled to report its Q4 2010 results after the market closes on July 29, 2010. Considering backlog of approximately $90 million entering the quarter, expected product mix, customer order patterns, and customer forecasts, the Company anticipates revenue in the June quarter to be between $136 million and $146 million, an increase of 18% to 26% over the comparable quarter last year. This outlook reflects continuing positive trends in their core markets.
Synaptics is a leading developer of human interface solutions for a wide variety of mobile computing and communications devices and is the leading supplier of TouchPads to the notebook computer market.
As for Q3 2010, net revenue was $116.2 million, an increase of approximately 16% from net revenue of $100.6 million for the third quarter of fiscal 2009 and a decrease of approximately 13% from net revenue of $133.3 million for the previous quarter. Net income for the third quarter of fiscal 2010 was $11.6 million, or $0.33 per diluted share, compared with net income of $5.4 million, or $0.15 per diluted share, for the third quarter of fiscal 2009 and net income of $12.2 million, or $0.35 per diluted share, for the previous quarter. Non-GAAP net income for the third quarter of fiscal 2010, which excludes non-cash share-based compensation and tax benefit from a loss carryback, was $16.3 million, or $0.46 per diluted share, compared with net income of $13.4 million, or $0.38 per diluted share, for the third quarter of fiscal 2009 and net income of $21.7 million, or $0.62 per diluted share, for the previous quarter. Cash and short-term investments at March 31, 2010 totaled $168.7 million compared with $140.0 million at December 31, 2009.
Analysts' estimates for Q4 2010 range from a low of $0.61 to a high of $0.66, compared to a consensus estimate of $0.63, with number of estimates being 8 and a coefficient variance of 2.32. Synaptics' board of directors approved an additional $100 million for the stock repurchase program expiring in April 2012. The $38.1 million remaining under the prior authorization, which was set to expire in July 2010 has been extended, such that $138.1 million remains available for the repurchase of company stock through April 2012. The company is likely to benefit from the ramp of key design wins at LG Electronics Inc , HTC Corp , Nokia and Research in Motion in the second half of 2010. In addition, Synaptics is expected to remain the primary supplier to LG Electronics in 2010 and benefit from the launch of about 12 to 14 capacitive touchscreen smartphones in the second half of 2010. SYNA has won two new handset OEMs - Microsoft
(Sharp devices) and Sony Ericsson. The firm is shipping sample large-format touch solutions into the emerging 'tablet' market, which could command higher ASPs. Enterprise PC/Notebook sales are increasing, and SYNA maintains a dominant share of that market. Scrybe and Fuze present future opportunities for higher-margin sales. SYNA expects F4Q PF EPS of
$0.57-$0.67, however, we expect EPS to likely be around the midpoint of guidance.
The stock closed $33.00, up 4.83% on July 26, 2010 and most analysts' recommend holding this stock with an average price target of $32.
