Synaptics (SYNA) 8-K Synaptics Reports Results for Second Quarter Fiscal 2018

Exhibit 99.1

Synaptics Reports Results for Second Quarter Fiscal 2018

• Revenue of $430.4 million

• GAAP net loss per share of $2.42 reflectingone-time tax charges

• Non-GAAP net income per diluted share of $1.11

• Retail availability of new Vivo flagship phone featuring industry’s firstin-display fingerprint solution from Synaptics

• Introduction of newchip-on-film technologies enabling LCD infinity displays

• First mass production orders for OLED display drivers

San Jose, CA – February 7, 2018 – Synaptics Incorporated (NASDAQ:SYNA), the leading developer of human interface solutions, today reported financial results for its second fiscal quarter ended December 31, 2017.

Net revenue for the second quarter of fiscal 2018 declined seven percent from the comparable quarter last year and increased three percent sequentially to $430.4 million. GAAP net loss for the second quarter of fiscal 2018 was $82.4 million, or $2.42 per share, which reflects a $54 million discrete tax charge for both the impact of theone-time transition tax on accumulated foreign earnings and write-down of deferred tax assets for tax law changes under the recently passed tax act.

Non-GAAP net income for the second quarter of fiscal 2018 decreased $15.2 from the comparable quarter last year and increased $3.1 million sequentially to $38.2 million.Non-GAAP net income per diluted share for the second quarter of fiscal 2018 was $1.11, a decrease of 26 percent from the comparable quarter last year and an increase of eight percent sequentially. (See below under the heading “Use ofNon-GAAP Financial Information” and the attached table for a description and a reconciliation of GAAP tonon-GAAP financial measures.)

“Synaptics is starting to benefit from our transition encompassing a more diversified product portfolio and customer base, and we expect to see strong momentum from our investments in infinity displays and consumer IoT in the second half of this calendar year,” stated Rick Bergman, President and CEO. “We continue to make meaningful strides across our core growth priorities withinchip-on-film, OLED,in-display fingerprint and consumer IoT. This includes retail availability of the Vivo X20 Plus UD flagship smartphone, the world’s first phone within-display fingerprint powered by Synaptics; the introduction of newchip-on-film display driver solutions enabling infinity

displays for LCD phones; our first mass production orders for OLED display drivers; and, continued traction in capitalizing on the key inflection point for voice-enabled products.”

Second Quarter 2018 Business Metrics (fingerprint products classified according to type of device)

• Revenue mix from mobile products was approximately 61 percent. Revenue from mobile products of $261.8 million was down 11 percent sequentially and down 30 percent year-over-year. Mobile products revenue includes all touchscreen, display driver, and applicable fingerprint products.

• Approximately $20.9 million of mobile product revenue for Q2 fiscal 2017 has been reclassified as IoT revenue.

• Revenue mix from consumer IoT products was approximately 25 percent. Revenue from consumer IoT products totaled $106.9 million and includes $25.3 million of revenue formerly classified as mobile revenue.

• Revenue mix from PC products was approximately 14 percent. Revenue from PC products totaled $61.7 million, a sequential decrease of six percent and a decrease of three percent year-over-year, and includes applicable fingerprint products.

Wajid Ali, CFO, added, “Considering our backlog of $252 million entering the March quarter, subsequent bookings, customer forecasts and productsell-in and sell-through timing patterns, and the resulting expected product mix, we anticipate revenue for the third quarter of fiscal 2018 to be in the range of $380 to $420 million, or down seven percent sequentially at themid-point during the weakest seasonal quarter of our fiscal year. We expect the revenue mix from mobile, consumer IoT and PC products to be approximately 61 percent, 23 percent and 16 percent, respectively.”

Cash at December 31, 2017 was $252 million, and cash flow from operations during the second quarter of 2018 was $63 million.

Earnings Call and Supplementary Slides

The Synaptics second quarter fiscal 2018 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Wednesday, February 7, 2018, during which the company will provide forward-looking information. To participate on the live call, analysts and investors should dial888-663-2254 (conference ID: 5897035). Supplementary slides and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s Website atwww.synaptics.com.

About Synaptics Incorporated

Synaptics is the pioneer and leader of the human interface revolution, bringing innovative

and intuitive user experiences to intelligent devices. Synaptics’ broad portfolio of touch, display, biometrics, voice, audio, and multimedia products is built on the company’s rich R&D, extensive IP and dependable supply chain capabilities. With solutions designed for mobile, PC, smart home, and automotive industries, Synaptics combines ease of use, functionality and aesthetics to enable products that help make our digital lives more productive, secure and enjoyable. (NASDAQ: SYNA) www.synaptics.com.

Join Synaptics onTwitter,LinkedIn, andFacebook, or visitwww.synaptics.com.

Use ofNon-GAAP Financial Information

In evaluating its business, Synaptics considers and usesNon-GAAP Net Income, which we define as net income excluding share-based compensation, acquisition related costs, and certain othernon-cash or recurring andnon-recurring items the company does not believe are indicative of its core operating performance as a supplemental measure of operating performance.Non-GAAP Net Income is not a measurement of the company’s financial performance under GAAP and should not be considered as an alternative to GAAP net income. The company presentsNon-GAAP Net Income because it considers it an important supplemental measure of its performance since it facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges, acquisition related costs, and certain othernon-cash or recurring andnon-recurring items.Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company’s GAAP net income. The principal limitations of this measure are that it does not reflect the company’s actual expenses and may thus have the effect of inflating its net income and net income per share as compared to its operating results reported under GAAP.

As presented in the “Reconciliation of GAAP Financial Measures toNon-GAAP Financial Measures” tables that follow, each of thenon-GAAP financial measures excludes one or more of the following items:

Acquisition related costs.

Acquisition related costs primarily consist of:

• amortization of purchased intangibles, which includes acquired intangibles such as developed technology, customer relationships, trademarks, backlog, licensed technology, patents, andin-process technology when post-acquisition development is determined to be substantively complete,

• changes in contingent consideration,

• inventory adjustments affecting the carrying value of inventory acquired in an acquisition,

• transitory post-acquisition incentive programs negotiated in connection with an acquired business or designed to encourage post-acquisition retention ofkey-employees, and

• legal and consulting costs associated with acquisitions that have been announced and are expected to close or have closed, includingnon-recurring post-acquisition costs and services.

These acquisition related costs are not factored into the company’s evaluation of its ongoing business operating performance or potential acquisitions, as they are not considered as part of the company’s principal operations. Further, the amount of these costs can vary significantly from period to period based on the terms of anearn-out arrangement, revisions to assumptions that went into developing the estimate of the contingent consideration associated with anearn-out arrangement, the size and timing of an acquisition, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition related costs fromnon-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability and potential earnings volatility associated with purchase accounting and acquisition related items.

Share-based compensation.

Share-based compensation expense relates to employee equity award programs and the vesting of the underlying awards, which includes stock options, deferred stock units, market stock units and the employee stock purchase plan. Share-based compensation is anon-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond the company’s control. As a result, the company excludes this item from its internal operating forecasts and models. The company believes thatnon-GAAP measures reflecting adjustments for share-based compensation provide investors with a basis to compare the company’s principal operating performance against the performance of peer companies without the variability created by share-based compensation resulting from the variety of equity awards used by other companies and the varying methodologies and assumptions used.

Restructuring costs.

Restructuring costs consist primarily of employee severance and office closure costs, including the reversal of such costs. These costs are generally infrequent, cash-based, and designed to address cost structure inefficiencies. As a result, the company excludes restructuring costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes thatnon-GAAP measures reflecting adjustments for restructuring costs provide investors with a basis to compare the company’s principal operating performance against the performance of other

companies without the variability created by infrequent restructuring costs designed to address cost structure inefficiencies in its business.

Othernon-cash items, net.

Othernon-cash items, net includesnon-cash amortization of debt discount and issuance costs, and the gain on redemption or the accretion of interest income on certain of the company’s investments in auction rate securities, in which the cost basis was previously written down in value. These items are excluded fromnon-GAAP results as either the previous write-down was excluded fromnon-GAAP results or the item isnon-cash. Excluding othernon-cash items, net fromnon-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with othernon-cash items, net.

Equity investment loss

Equity investment loss represents an adjustment in the book value of an equity investment in a minority owned company. The equity investment loss is anon-cash item. As a result, the company excludes equity investment loss from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes thatnon-GAAP measures reflecting adjustments for equity investment loss provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created bynon-cash items.

Non-GAAP tax adjustments.

The company forecasts its long-termnon-GAAP tax rate in order to provide investors with improved long-term modeling accuracy and consistency across financial reporting periods by eliminating the effects of certain items in ourNon-GAAP net income andNon-GAAP net income per share, including the type and amount of deductible stock options, delivery of shares under deferred stock unit awards and market stock unit awards, the taxation of post-acquisition intercompany intellectual property cross-licensing or transfer transactions, and the impact of other acquisition items that may or may not be tax deductible. The company intends to evaluate its long-termnon-GAAP tax rate annually for significant events, including material tax law changes in the major tax jurisdictions in which the company operates, corporate organizational changes related to acquisitions or tax planning opportunities, and substantive changes in our geographic earnings mix.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of

1934, as amended. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements may include words such as ”expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements reflect our best judgment and are based on several factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Such factors include, but are not limited to, the risks as identified in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of our Annual Report on Form10-K for the fiscal year ended June 24, 2017, and other risks as identified from time to time in our Securities and Exchange Commission reports. Forward-looking statements are based on information available to us on the date hereof, and we do not have, and expressly disclaim, any obligation to publicly release any updates or any changes in our expectations, or any change in events, conditions, or circumstances on which any forward-looking statement is based. Our actual results and the timing of certain events could differ materially from the forward-looking statements. These forward-looking statements do not reflect the potential impact of any mergers, acquisitions, or other business combinations that had not been completed as of the date of this release.

For more information contact:

Jennifer Jarman

The Blueshirt Group

415-217-5866

jennifer@blueshirtgroup.com

SYNAPTICS INCORPORATED

CONSOLIDATED BALANCE SHEETS

(In millions except share data)

(Unaudited)

	December 31,			June 30,
	2017			2017
Assets
Current assets:
Cash and cash equivalents	$	252.2		$	367.8
Accounts receivables, net of allowances of $2.6		236.4			255.2
Inventories		140.6			131.4
Prepaid expenses and other current assets		18.3			37.6
Total current assets		647.5			792.0
Property and equipment at cost, net		118.8			113.8
Goodwill		368.3			206.8
Purchased intangibles, net		263.5			101.0
Non-current other assets		39.9			53.1
Total assets	$	1,438.0		$	1,266.7
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	119.7		$	135.8
Accrued compensation		28.1			31.9
Income taxes payable		22.2			17.2
Acquisition-related liabilities		8.7			8.7
Other accrued liabilities		95.9			101.8
Current portion of long-term debt		—			15.0
Total current liabilities		274.6			310.4
Long-term debt		—			202.0
Convertible notes, net		442.2			—
Deferred tax liabilities		7.8			—
Other long-term liabilities		28.2			14.1
Total liabilities		752.8			526.5
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; 61,933,342 and 60,579,911 shares issued, and 34,293,466 and 34,638,435 shares outstanding, respectively		0.1			0.1
Additional paid in capital		1,135.9			1,004.8
Less: 27,639,876 and 25,941,476 treasury shares, respectively, at cost		(1,073.9	)		(980.3	)
Accumulated other comprehensive income		1.5			1.5
Retained earnings		621.6			714.1
Total stockholders’ equity		685.2			740.2
Total liabilities and stockholders’ equity	$	1,438.0		$	1,266.7

SYNAPTICS INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions except per share data)

(Unaudited)

	Three Months Ended					Six Months Ended
	December 31,					December 31,
	2017			2016		2017			2016
Net revenue	$	430.4		$	461.3	$	847.8		$	847.5
Acquisition related costs (1)		38.4			12.0		70.1			24.2
Cost of revenue		276.8			310.6		548.1			561.2
Gross margin		115.2			138.7		229.6			262.1
Operating expenses
Research and development		90.8			73.5		177.0			146.9
Selling, general, and administrative		36.4			32.3		74.0			66.9
Acquisition related costs, net (2)		5.4			2.4		11.5			6.9
Restructuring costs (3)		6.6			1.7		8.0			7.0
Total operating expenses		139.2			109.9		270.5			227.7
Operating income/(loss)		(24.0	)		28.8		(40.9	)		34.4
Interest and other income/(expense), net		(4.7	)		0.6		(10.7	)		(0.3	)
Income/(loss) before provision for income taxes		(28.7	)		29.4		(51.6	)		34.1
Provision for income taxes		53.3			6.6		56.5			7.6
Equity investment loss		(0.4	)		—		(0.8	)		—
Net income/(loss)	$	(82.4	)	$	22.8	$	(108.9	)	$	26.5
Net income/(loss) per share:
Basic	$	(2.42	)	$	0.65	$	(3.22	)	$	0.76
Diluted	$	(2.42	)	$	0.64	$	(3.22	)	$	0.74
Shares used in computing net income/(loss) per share:
Basic		34.1			35.1		33.8			35.0
Diluted		34.1			35.9		33.8			35.7

(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 as well as transitory acquisition related compensation plans.

(3) Restructuring costs primarily include severance costs and facility consolidation costs associated with operational restructurings and acquisitions.

SYNAPTICS INCORPORATED

Reconciliation of GAAP Financial Measures toNon-GAAP Financial Measures

(In millions except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2017			2016			2017			2016
GAAP gross margin	$	115.2		$	138.7		$	229.6		$	262.1
Acquisition related costs		38.4			12.0			70.1			24.2
Share-based compensation		0.7			0.6			1.4			1.1
Non-GAAP gross margin	$	154.3		$	151.3		$	301.1		$	287.4
GAAP gross margin - percentage of revenue		26.8	%		30.1	%		27.1	%		30.9	%
Acquisition related costs - percentage of revenue		8.9	%		2.6	%		8.3	%		2.9	%
Share-based compensation - percentage of revenue		0.2	%		0.1	%		0.1	%		0.1	%
Non-GAAP gross margin - percentage of revenue		35.9	%		32.8	%		35.5	%		33.9	%
GAAP research and development expense	$	90.8		$	73.5		$	177.0		$	146.9
Acquisition and integration related costs		—			—			(0.4	)		—
Share-based compensation		(9.8	)		(8.5	)		(18.9	)		(16.3	)
Non-GAAP research and development expense	$	81.0		$	65.0		$	157.7		$	130.6
GAAP selling, general, and administrative expense	$	36.4		$	32.3		$	74.0		$	66.9
Acquisition and integration related costs		—			—			(1.5	)		—
Share-based compensation		(7.3	)		(6.5	)		(14.0	)		(12.8	)
Non-GAAP selling, general, and administrative expense	$	29.1		$	25.8		$	58.5		$	54.1
GAAP operating income/(loss)	$	(24.0	)	$	28.8		$	(40.9	)	$	34.4
Acquisition related costs		43.8			14.4			83.5			31.1
Share-based compensation		17.8			15.6			34.3			30.2
Restructuring costs		6.6			1.7			8.0			7.0
Non-GAAP operating income	$	44.2		$	60.5		$	84.9		$	102.7
GAAP net income/(loss)	$	(82.4	)	$	22.8		$	(108.9	)	$	26.5
Acquisition related costs		43.8			14.4			83.5			31.1
Share-based compensation		17.8			15.6			34.3			30.2
Restructuring costs		6.6			1.7			8.0			7.0
Othernon-cash items, net		4.3			(1.6	)		10.0			(1.7	)
Equity investment loss		0.4			—			0.8			—
Non-GAAP tax adjustments		47.7			0.5			45.6			(5.5	)
Non-GAAP net income	$	38.2		$	53.4		$	73.3		$	87.6
GAAP net income/(loss) per share - diluted	$	(2.42	)	$	0.64		$	(3.22	)	$	0.74
Acquisition related costs		1.28			0.40			2.47			0.87
Share-based compensation		0.52			0.44			1.02			0.84
Restructuring costs		0.19			0.05			0.24			0.20
Othernon-cash items, net		0.13			(0.05	)		0.30			(0.05	)
Equity investment loss		0.01			—			0.02			—
Non-GAAP tax adjustments		1.41			0.01			1.34			(0.15	)
Non-GAAP share adjustment		(0.01	)		—			(0.03	)		—
Non-GAAP net income per share - diluted	$	1.11		$	1.49		$	2.14		$	2.45

SYNAPTICS INCORPORATED

CONDENSED CONSOLIDATED CASH FlOWS

(In millions)

(Unaudited)

	Six Months Ended
	December 31,
	2017			2016
Net Income/(loss)	$	(108.9	)	$	26.5
Non-cash operating items		131.1			71.6
Changes in working capital		81.0			(45.7	)
Provided by operations		103.2			52.4
Acquisition of businesses		(395.9	)		—
Fixed asset & intangible asset purchases		(27.2	)		(20.3	)
Proceeds from sales and maturities of investments		—			7.5
Investment in direct financing lease		—			(15.8	)
Used in investing		(423.1	)		(28.6	)
Treasury shares purchased		(93.6	)		(25.0	)
Equity compensation, net		4.6			9.4
Debt related, net		293.4			(11.3	)
Provided by/(Used in) financing		204.4			(26.9	)
Effect of exchange rate changes on cash and cash equivalents		(0.1	)		(1.9	)
Net change in cash and cash equivalents		(115.6	)		(5.0	)
Cash and cash equivalents at beginning of period		367.8			352.2
Cash and cash equivalents at end of period	$	252.2		$	347.2
Cash paid for taxes	$	18.1		$	15.8
Cash refund on taxes	$	1.0		$	9.9