Thursday, January 20, 2011

Synaptics Inc. (NASDAQ: SYNA): Q2 Earnings Preview 2011

Synaptics Inc. (NASDAQ: SYNA) is scheduled to release its fiscal second-quarter earnings after the closing bell on Thursday, January 20, 2011. Analysts, on average, expect the company to report earnings of 68 cents per share on revenue of $158.30 million. In the year ago period, the company reported earnings of 62 cents per share on revenue of $133.32 million.

Synaptics Incorporated develops and supplies custom-designed human interface solutions that enable people to interact with various mobile computing, communications, entertainment, and other electronic devices.

In the preceding fiscal first-quarter, the Santa Clara, California-based company's net income was $18.70 million, or 52 cents per share, from $9.80 million, or 27 cents per share, in the year-ago quarter. On an adjusted basis, the company earned 67 cents per share in the latest quarter. Revenue rose 28% to $153.19 million from $119.59 million. Analysts, on average, expected the company to report earnings of 65 cents per share on revenue of $152.72 million. 

At its last earnings call in October, the company said that it expects fiscal second-quarter revenue in the range of $154 million to $162 million, representing an increase of 16% to 22% over the comparable quarter last year.

Synaptics has been investing heavily in value engineering and material science, working with its partners to aggressively take costs out of capacitive Touchscreen in order to bring prices down and to fuel mass market adoption. It is entering a lot of interesting growth markets, including those for large-screen displays and TVs, tablet computers, and smarthphones. It's a wide play on a lot of growth markets where human-screen interfaces are becoming more important than ever. The market for touch-screen technology should rebound nicely in 2011 as new devices hit the market.

The company has done an excellent job of positioning itself as the leader in its niche industry. It is poised to benefit from a spurt in demand for consumer electronics based upon touch technology.

In terms of stock performance, Synaptics shares have gained nearly 4 percent over the past year.

Full Disclosure: None.
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