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Press Release: Synaptics Reports Second Quarter -3-

· 02/04/2021 16:01
Total assets $ 1,792.2 $ 1,693.8 ========= ======== 0.00 0.00 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 74.4 $ 60.6 Accrued compensation 37.5 59.5 Income taxes payable 16.2 33.0 Other accrued liabilities 97.4 91.0 Total current liabilities 225.5 244.1 Long-term debt 596.1 586.6 Other long-term liabilities 82.6 44.0 Total liabilities 904.2 874.7 0 Commitments and contingencies Stockholders' equity: Preferred stock; $.001 par value; 10,000,000 shares authorized; no shares issued and outstanding - - Common stock; $.001 par value; 120,000,000 shares authorized; 66,677,341 and 65,871,648 shares issued, and 34,928,146 and 34,122,453 shares outstanding, respectively 0.1 0.1 Additional paid in capital 1,362.3 1,340.2 Less: 31,749,195 treasury shares, at cost (1,222.6) (1,222.6) Retained earnings 748.2 701.4 --------- -------- Total stockholders' equity 888.0 819.1 --------- -------- Total liabilities and stockholders' equity $ 1,792.2 $ 1,693.8 ========= ======== SYNAPTICS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions except per share data) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, ---------------- ------------------ 2020 2019 2020 2019 ----- ----- ----- ----- Net revenue $357.6 $388.3 $686.0 $728.2 Acquisition related costs (1) 34.8 8.2 63.3 23.5 Cost of revenue 172.4 220.8 337.8 419.2 ----- ----- ----- ----- Gross margin 150.4 159.3 284.9 285.5 Operating expenses Research and development 77.3 77.0 158.2 159.3 Selling, general, and administrative 39.5 31.5 74.8 59.0 Acquisition related costs (2) 8.7 3.0 15.4 5.9 Restructuring costs (3) 0.6 13.3 6.2 19.9 Gain on sale of audio technology assets (34.2) - (34.2) - In-process research and development charge - - - 3.7 Total operating expenses 91.9 124.8 220.4 247.8 ----- ----- ----- ----- Operating income 58.5 34.5 64.5 37.7 Interest and other income, net (6.0) (2.3) (10.7) (5.9) Income before income taxes 52.5 32.2 53.8 31.8 Provision for income taxes 2.4 12.0 6.0 7.1 Equity investment loss (0.5) (0.4) (1.0) (0.9) Net income $ 49.6 $ 19.8 $ 46.8 $ 23.8 ===== ===== ===== ===== Net income per share: Basic $ 1.43 $ 0.59 $ 1.36 $ 0.72 ===== ===== ===== ===== Diluted $ 1.36 $ 0.58 $ 1.29 $ 0.70 ===== ===== ===== ===== Shares used in computing net income per share: Basic 34.8 33.5 34.5 33.2 ===== ===== ===== ===== Diluted 36.5 34.4 36.4 34.1 ===== ===== ===== ===== (1 ) These acquisition related costs consist primarily of amortization of acquired intangible assets and inventory fair value adjustments associated with acquisitions. (2 ) These acquisition related costs, net consist primarily of amortization associated with certain acquired intangible assets. (3 ) Restructuring costs primarily include severance costs and facility consolidation costs associated with operational restructurings and acquisitions. SYNAPTICS INCORPORATED Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In millions except per share data) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, ---------------------- ---------------------- 2020 2019 2020 2019 GAAP gross margin $150.4 $159.3 $284.9 $285.5 Acquisition related costs 34.8 8.2 63.3 23.5 Recovery on supply commitment - (1.8) (0.6) (3.0) Share-based compensation 1.0 0.6 1.8 1.3 Retention costs - 0.2 - 0.3 Non-GAAP gross margin $186.2 $166.5 $349.4 $307.6 ===== ===== ===== ===== GAAP gross margin - percentage of revenue 42.1% 41.0% 41.5% 39.2% Acquisition related costs - percentage of revenue 9.7% 2.1% 9.3% 3.2% Recovery on supply commitment 0.0% -0.5% -0.1% -0.4% Share-based compensation - percentage of revenue 0.3% 0.2% 0.3% 0.2% Retention costs - 0.1% - 0.0% Non-GAAP gross margin - percentage of revenue 52.1% 42.9% 50.9% 42.2% ===== ===== ===== ===== GAAP research and development expense $ 77.3 $ 77.0 $158.2 $159.3 Share-based compensation (9.5) (8.1) (20.5) (15.6) Retention costs (1.0) (1.9) (3.9) (4.4) Amortization prepaid development costs (2.5) - (4.2) - Integration related costs (0.2) - (0.9) - Non-GAAP research and development expense $ 64.1 $ 67.0 $128.7 $139.3 ===== ===== ===== ===== GAAP selling, general, and administrative expense $ 39.5 $ 31.5 $ 74.8 $ 59.0 Share-based compensation (12.9) (6.4) (22.6) (9.4) Integration related costs (0.7) (1.4) (2.4) (1.4) Retention costs (0.1) (1.5) (1.1) (2.8) Non-GAAP selling, general, and administrative expense $ 25.8 $ 22.2 $ 48.7 $ 45.4 ===== ===== ===== ===== GAAP operating income $ 58.5 $ 34.5 $ 64.5 $ 37.7 Recovery on supply commitment - (1.8) (0.6) (3.0) Acquisition & integration related costs 44.4 12.6 82.0 30.8 Share-based compensation 23.4 15.1 44.9 26.3 Restructuring costs 0.6 13.3 6.2 19.9 Retention costs 1.1 3.6 5.0 7.5 Amortization prepaid development costs 2.5 - 4.2 - Gain on sale of audio technology assets (34.2) - (34.2) - In-process research and development charge - - - 3.7 Non-GAAP operating income $ 96.3 $ 77.3 $172.0 $122.9 ===== ===== ===== ===== GAAP net income $ 49.6 $ 19.8 $ 46.8 $ 23.8 Recovery on supply commitment - (1.8) (0.6) (3.0) Acquisition & integration related costs 44.4 12.6 82.0 30.8 Share-based compensation 23.4 15.1 44.9 26.3 Restructuring costs 0.6 13.3 6.2 19.9 Retention program costs 1.1 3.6 5.0 7.5 Amortization prepaid development costs 2.5 - 4.2 - Gain on sale of audio technology assets (34.2) - (34.2) - In-process research and development charge - - - 3.7 Other non-cash items 4.9 4.7 9.7 9.3 Equity investment loss 0.5 0.4 1.0 0.9 Non-GAAP tax adjustments (9.0) 2.4 (14.5) (8.1) Non-GAAP net income $ 83.8 $ 70.1 $150.5 $111.1

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February 04, 2021 16:01 ET (21:01 GMT)