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Mar 27, 2021
Synaptics Q3 2021 Earnings Report
Reported strong Q3 2021 results driven by record gross margins, PC revenue, and EPS near the upper end of guidance.
Key Takeaways
Synaptics reported a strong start to 2021 with record gross margins and PC revenue. The company's strategy to focus on IoT products is improving its financial foundation, enabling more aggressive market engagement and long-term revenue and earnings growth.
Revenue reached $325.8 million.
GAAP gross margin was 47.7 percent.
Non-GAAP gross margin hit a record of 55.1 percent.
Non-GAAP diluted earnings per share was $2.03.
Forward Guidance
For the fourth fiscal quarter, Synaptics expects revenue to outperform typical seasonality and gross margin to strengthen due to the growth of IoT. Backlog remains strong, with customer demand outpacing supply availability.
Positive Outlook
- Revenue is expected to be between $310 million and $340 million.
- Gross margin is projected to be between 50.0 percent and 52.0 percent.
- Non-GAAP gross margin is expected to be between 55.5 percent and 57.5 percent.
- Operating expense is projected to be between $121 million and $125 million.
- Non-GAAP operating expense is expected to be between $86 million and $89 million.
Challenges Ahead
- Semiconductor supply chain constraints have been factored into the June quarter guidance.
- Projected Non-GAAP gross margin excludes $17 million of intangible asset amortization.
- Projected Non-GAAP gross margin excludes $1 million of stock-based compensation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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