Synaptics, Incorporated (NASDAQ:SYNA) Sinks After Reporting Revenue Decline


The bottom fell out of the Synaptics, Incorporated (NASDAQ:SYNA) stock after the company released its fiscal first quarter ended on September 30, which showed a sharp decline in revenue, both year on year, and sequentially.

Investors bailed from the stock, which dived 22.35% to end Friday at $52.57 on volume of 5 million shares.

The company is a provider of human interface solutions such as touch screens and fingerprint sensors.

Technically, SYNA’s time above the 200-day moving average was short-lived. Friday’s losses also put paid to almost all the gains the stock had accumulated in its rise from a low of $47.09 on July 6.

Synaptics, Incorporated (NASDAQ:SYNA) in FQ1

With respect to FQ1, SYNA reported EPS of $0.96, which missed by $0.04. Revenue of $386.2 million beat by $13.55 million, and was down 17.8% year on year.

The fall in revenue mainly on account of mobile products, which were down 20% year on year to $331.3 million. On the other hand revenue from PC products totaled $54.9 million, a decrease of 5 percent year-over-year.

Profitability: “Our September quarter non-GAAP gross margin of 35.2% was below the mid-point of our guidance range and primarily reflects overall product mix and a $2.8 million charge related to an unexpected customer-specific inventory write-down in our fingerprint business,” said CFO Wajid Ali.

Synaptics, Incorporated (NASDAQ:SYNA) downgraded

Analysts at Needham downgraded the stock from Buy to Hold.

Craig Hallum downgraded it from Buy to Hold and lowered their price target from $70 to $65.

Synaptics, Incorporated (NASDAQ:SYNA) outlook

“The continued expansion of our TDDI and fingerprint sensor growth levers remain key drivers of our business in fiscal 2017 and, in addition to our investments in new areas such as OLED technology and automotive, are setting the stage for a return to growth,” said CEO Rick Bergman.

The company anticipates that during the second quarter ended December it will clock revenue in the range of $430 million to $470 million.


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