Synaptics issues Q2 2018 results, predicts “strong momentum” for second half of year
Synaptics has reported net revenue of $430.4 million for Q2 2018, a decline of seven percent from a year earlier but three percent higher than the previous quarter.
GAAP net loss for the quarter was $82.4 million, or $2.42 per share, including a $54 million discrete tax charge, made up of a one-time transition tax on accumulated foreign earnings and a write-down of deferred tax assets for tax law changes, according to the announcement. Non-GAAP net income decreased by $15.2 million from a year earlier and increased $3.1 million from the previous quarter to $38.2 million, and net income per diluted share was $1.11, down 26 percent from Q2 2017 and up 8 percent from Q1 2018.
“Synaptics is starting to benefit from our transition encompassing a more diversified product portfolio and customer base, and we expect to see strong momentum from our investments in infinity displays and consumer IoT in the second half of this calendar year,” stated Rick Bergman, President and CEO. “We continue to make meaningful strides across our core growth priorities within chip-on-film, OLED, in-display fingerprint and consumer IoT. This includes retail availability of the Vivo X20 Plus UD flagship smartphone, the world’s first phone with in-display fingerprint powered by Synaptics; the introduction of new chip-on-film display driver solutions enabling infinity displays for LCD phones; our first mass production orders for OLED display drivers; and, continued traction in capitalizing on the key inflection point for voice-enabled products.”
Revenue from mobile products, including touchscreens, display drivers, and mobile fingerprint products made up 61 percent of Synaptics’ total, while IoT products made up 25 percent and PC products made up 14 percent. The company’s fingerprint products are classified according to device type. CFO Wajid Ali said he expects Q3 revenue to be between $380 and $420 million, with IoT making up two percent more and PC products two percent less of its revenue mix.
Synaptics executive Godfrey Cheng recently told Biometric Update that the user experience of its Clear ID technology gives the company an edge in the fast-growing mobile biometrics market.