Fri, Aug 23, 9:19 PM (144 days ago)
For the fiscal year ending June 29, 2024, Synaptics Incorporated reported a significant decline in financial performance, with net revenue of $959.4 million, down 29.2% from $1,355.1 million in the previous year. The decrease was primarily driven by reduced demand across its product lines, particularly in the Enterprise and Automotive sectors, which saw a 33.2% drop. Gross margin also fell to 45.8%, down from 52.8%, reflecting increased obsolescence reserves and a less favorable sales mix. Operating expenses decreased slightly to $541.4 million, but the company incurred a $16 million impairment charge related to intangible assets. Despite these challenges, net income rose to $125.6 million from $73.6 million in 2023, aided by a deferred tax benefit from the domestication of foreign subsidiaries. Strategically, Synaptics aims to strengthen its market position by enhancing its semiconductor solutions for IoT, Enterprise, and Automotive applications, while also pursuing strategic acquisitions. Key risks include reliance on major customers, supply chain constraints, and macroeconomic factors affecting demand. The company maintains a robust cash position of $876.9 million, supporting its operational and investment strategies.