Synaptics just misses revenue guidance for Q3 as biometrics demand in China softens
Synaptics has reported net revenue of $334 million for the third quarter of fiscal 2019, down 15.2 percent from the same quarter last year, on downturns across its mobile, IoT, and PC product lines.
GAAP net income for Synaptics’ Q3 2019 quarter, which ended March 30, was $6.7 million, or $0.19 per diluted share. Non-GAAP net income was $29 million or $0.83 per diluted share, down $3.4 million from Q3 2018. The company has set expectations around the low end of previous guidance of $340 million to $380 million in revenue and $0.70 to $1.00 non-GAAP EPS, based on softening demand in China, in an update when CEO Richard Bergman stepped down.
“While Synaptics continues to be impacted by the residual effects of unfavorable supply chain dynamics in the near term, we are confident in the strengths and untapped potential of our product portfolio and are evaluating how best to leverage these assets with a focus on aligning the business towards achieving better long-term profitability,” stated Saleel Awsare, Senior Vice President and General Manager, IoT Division, Corporate Marketing & Investor Relations. “Going forward, we have the elements in place to execute towards an overall richer margin mix and the ability to drive even greater momentum across the portfolio, including our IoT platform where we expect a return to growth in the June quarter.”
Revenue mix was 61 percent mobile, 19 percent IoT, and 20 percent PC products, which were down 16 percent, 29 percent, and 10 percent respectively, year-over-year. The company expects its Q4 2019 revenue to be in the $300 million to $320 million range.