Synaptics’ Q3 Results Show Dip in Mobile, IoT Revenues

“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.” – Saleel Awsare, SVP and General Manager, IoT Division, Corporate Marketing & Investor Relations, Synaptics

Synaptics has posted its results for the third quarter of its fiscal year, ended March 31st, 2019.

The company reports net revenues of $334 million for the quarter, compared to revenues of $394 million in Q3 of 2018. And this situation is expected to worsen, with the user interface specialist forecasting revenues in the range of $300 million to $320 million for its next fiscal quarter.

In a statement, Synaptics Corporate Marketing and Investor Relations VP Saleel Awsare attributed the decreasing revenues to “the residual effects of unfavorable supply chain dynamics in the near term”.

There was a particularly poor showing from the company’s Internet of Things business, which was a 29 percent year-over-year drop in revenues; while its mobile business dropped 16 percent, possibly reflecting the same kinds of pressures other fingerprint sensor makers have reported as Average Selling Prices have dropped. Synaptics’ PC products business, meanwhile, was up 10 percent year-over-year.

In any case, the company did see an improved net income for the quarter, at $6.7 million, compared to a loss of $13.7 million a year ago. And in his commentary, Synaptics’ Awsare was upbeat about Synaptics’ long-term prospects. “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,” Awsare he continued later, “including our IoT platform where we expect a return to growth in the June quarter.”

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May 13, 2019 – by Alex Perala