Wall Street's Augury: Synaptics Inc (Nasdaq:SYNA) |
Posted: June 10, 2014 |
Synaptics Inc. (SYNA) Keep a close eye on SYNA. After the closing bell on Tuesday, the company raised its revenue guidance, driven by better than expected performance for both mobile and PC products, and reported the acquisition of all the outstanding equity of Renesas SP Drivers, Inc., the industry leader in small and medium-size display driver ICs (DDICs) for smartphones and tablets. For the fourth quarter of fiscal 2014, SYNA expects to report record revenue in the range of $300.0 million to $310.0 million, up from its previous guidance of $275.0 million to $295.0 million and representing a 30% to 35% increase year over year, and SYNA's revenue for fiscal 2014 is expected to be in the range of $933.0 million to $943.0 million, a 41% to 42% increase compared to fiscal 2013. With the acquisition of Renesas SP Drivers, SYNA expects to increase its addressable market opportunity by 1.5X and to accelerate its product roadmap for touch-and-display driver integration (TDDI). The combination enables platform-level solutions for select segments of the mobile market, while also extending its leadership position in Touch and DDIC product families. According to SYNA, the addition of Renesas SP Drivers positions the company at the forefront of a tremendous growth opportunity with a complete portfolio of products to address a full spectrum of display market needs. SYNA will pay a purchase price of approximately JPY48.5B ($475 million) for 100% of Renesas SP Drivers, based on JPY52.5B ($515 million) enterprise value. For the year ended March 2014, Renesas SP Drivers' revenue and cash flow were approximately $650 million and $100 million, respectively. The combined business of SYNA and Renesas SP Drivers is expected to create significant revenue and investment scale to drive future growth and operating leverage. The acquisition will be immediately accretive to SYNA's non-GAAP EPS, excluding transaction related expenses. As a leading developer of human interface solutions which enhance the user experience, SYNA provides the broadest solutions portfolio in the industry: - The ClearPad(R) family supports touchscreen solutions for devices ranging from entry-level mobile phones to flagship premium smartphones, tablets and notebook PCs. - The TouchPad(TM) family, including ClickPad(TM) and ForcePad(R), is integrated into the majority of today's notebook PCs. - Natural ID(TM) fingerprint sensor technology enables authentication, mobile payments, and touch-based navigation for smartphones, tablets, and notebook computers. SYNA's wide portfolio also includes ThinTouch(R) supporting thin and light keyboard solutions, as well as key technologies for next generation touch-enabled video and display applications. More about Synaptics Inc. (SYNA) at www.synaptics.com. ** Read Full Disclaimer at www.finance.crwe-pr.com/disclaimer
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