SYNA - Earnings call transcript Q4 2020

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Operator

Good day, and welcome to the Synaptics Fourth Quarter Fiscal 2020 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jason Tsai. Please go ahead, sir.

Jason Tsai

Good afternoon and thank you for joining us today on Synaptics’ fourth quarter, fiscal 2020 conference call. Tsai am Jason Investor Head is Relations. name and the I of My today’s Hurlston, are CEO; me call With on Michael Butler, CFO. and our our Dean and President and broadcast This also our company’s Investor live can synaptics.com. of be at over Relations call section accessed being the is website the from web

our slides presentation, an to remarks Relations Investor our on slide also report have been a as we current supplementary furnished also addition to X-K results. financial and In the supplemental copy Form posted exhibit our earlier website. have SEC on a add filed of prepared on The these color additional with today

costs, In of non-recurring issued results addition non-GAAP a share-based after to basis, Please results, management the related non-cash detailed for reconciliation GAAP excludes refer non-GAAP release on certain recurring or and will and also items. the other or a market company’s provide press which today results. supplementary acquisition GAAP close to compensation,

like that forward-looking statements. remind would make Additionally, you will course during of conference Synaptics we to this call the

Forward-looking on COVID-XX and expectations to the results impacts financial condition, including of business objectives, projections operations, pandemic. and regarding expectations statements plans, our our of our future potential relating impact performance give – the our current business,

risk call the to XXXX, fiscal to the update the to cause including SEC, XX, Form obligation to information. from will We factors from differ Synaptics forward-looking any to company’s current year important the over refer contained inaccurate. disclaims our believes differ may those risks prove any performance estimates materially that I June ended, control results in Synaptics forward-looking statements. reasonable, periodic Synaptics results of Although, subject future the could expressly cautions actual materially and be the for this be you XX-K a turn our company’s suggested are may forward-looking actual for and number assumptions that now and with to filed they statements. and any Michael. beyond reports to in uncertainties Synaptics

Michael Hurlston

today’s call. and again Thanks, Jason, quarter I’d speaking be to today like all with despite you a the uncertainty pleased with I’m report solid and everyone to welcome ongoing global COVID-XX. to of

in business gross focus managing our and our operating control on to within things expected as led continuing quarter and has Our margins performed the better profitability.

worked team macro despite executed hard and Our well challenges. the ongoing

secured the During me design greater IoT, you our wins months. taped certainly accretive we the quarter. across new will Tier and but later acquisitions. let highly two share a detail different financials This for meaningful announced X busy with past four first some Dean businesses, with and in chips quarter, past out was our we over customers closed of XX go our over accomplishments new

business improvements that the strong put the strong for Broadcom place Our the foundation company changes core year over past excluding business, in and and and transactions, forward. to continues our results really the deliver DisplayLink has we’ve a going built

basis four Over while are the margins points, gross past quarters, are up basis almost X,XXX up over XXX margins points. operating

record a and XXXX. share per fiscal high As earnings GAAP for achieved result, non-GAAP we

product divesting and investments before, and SoCs, touch, more such LCD interface. lower more are mobile ever as investing these video and commoditized focused We more Through TDDI, OLED more initiatives, edge are higher exiting and than more like solutions from to to differentiated focused working fundamental we their margin, as margin challenges positioned in products and are benefit complete the world, the innovation. providing we customers, more around our solutions strong capabilities growth Despite roadmaps, and technology with in ongoing our these business. leadership improvements continue and this closely to further see quarter we

and closed benefit on positioned we synergistic from. in highly we two July, saw, that to As are many of acquisitions and accretive you announced uniquely

connectivity is connectivity additional connectivity highly portfolio. the will come. existing portfolio. solutions IoT well First, solutions technology the complementary rights as and GPS This market IoT connectivity to products IoT ensure us manufacturing equips business, Wi-Fi, for and to to acquired for certain to wireless our Wireless years roadmap our Broadcom’s that as assets best-in-class Bluetooth we with adding wireless leadership

people of myself as Synaptics, anticipate included, business In can opportunities. addition, the speedbumps have at the many of nuances familiarity finding hidden inevitable intimate while result, a this and,

own that in Second, we This higher significantly margins position we am docking both in in shipping financially cases. our with can acquired teams’ given extremely technology time enabling customers stations. in extract excited operating both work a acquisition a DisplayLink, pleased the additional undisputed and and with acquisitions we universal share hard leader I market. in volume gross closing synergies is already compelling to our the are I’m to short and in

professional a acquisitions shareholder rapidly and building that incremental ultimately extract integrate and synergies to capability are We value. identify generate

Now, talk business. to our core let about me you

As across all impact areas positive of time home, are at multiple us our spend we a seeing more of business.

The trend. speakers, consumers to smart easily four are edge benefits We and smart with cameras. offerings and including for This set-top with of for with includes PC their solutions. customers enable speakers, are more soundbars while to video their dollars make connecting of video including benefits VSXXX Our like the their strength capitalize like we broaden the that in markets also expected home voice-enabled on friends new platforms and at and interface displays In to businesses. solutions ASXXX taped-out the aligning looking family. boxes, seen time customers were IoT, SoC this still devices our unexpected near-term two and streamers macro seeing investment headsets,

around to capabilities that of integration the We are the solutions products services. and vision differentiated service our seeing leverage that video, and latest interest AI looking voice, strong can for their uniquely define with offer edge SoCs world providers

major service different wins and video display have one for We for with U.S.-based secured smart box. set-top two a providers, a one

Matters just Cable for two like wins interface dongle to taped-out their has with and and video USB-C retail number docking month We a We products. solutions. led Cayenne new it OEMs already and also announced last brands of PC station

successful wired headset an that solutions highly our commercial our is In OLED sound In our to docking family strong world, handset addresses and our continue for video success audio, lead space. upgrade Panamera and the to this to have smartphones interface stations our been superior in quality the performance noise digital PC as product increases with The second makers solutions find in deliver our suppression. mobile, features. due top active voice with touch premium and controllers tape-out

our panels, rapidly. As seeing flexible is more the OLED demand stronger increasing are smartphones on-cell for controllers pipeline design adopt and touch we

Vivo to This already with list upcoming their have extensive Oppo quarter, we several added at wins customer and in smartphones. our new

the from this this for laptops year. by wins profitability revenue quarter, will sales of Separately, to LCD next record highly In pleased customers fiscal at able our believe be entire this the am We quarter. and in quarter. June home and over low-end commercial increase talk achieved DDIC customer this enjoyed to be time recently both execution additional quarter. expect about with has and stable Overall, consumer I the widespread PC, and LCD sustained customer last as last three continue which from our adoption. strength their and months remain the very we business to work in Demand anticipated, remains smartphone launched design marquee benefit strong key we both our

and an growth. will new has pipeline of customers outstanding drive wins team our with long-term focused have strong job staying and done that Our engaged a we

acquisitions will at looking our markets existing prospects. new create which increase both results looking the excited number and customers our and expand I’m content to Our our opportunities we in play. of significant by backward forwarding

fourth review call me to turn the our to Now over quarter Dean our outlook. let and provide financials

Dean Butler

Great. Thanks afternoon good and Michael, to everyone.

our of completed financial recently I’ll quarter, current a our outlook results First, QX. with for for provide review our then start our fiscal

down of the as mid-point same from year. of is TDDI preceding contributions slightly some date. quarter, to of of an quarter, to periods, and Mobile our the fiscal comparison. from that above of completed down TDDI range, last any sale XX% This of fourth creates was we I’d Before XXXX our XXth, the this due such primarily to $XXX fourth the guidance divestment for Adjusting from the quarter of business LCD begin, quarter on business on like April and million X% our apples-to-oranges were that everyone the an Revenue year-over-year business I prior results up quarter. adjusted same that our comparison on closed In remind as flat nearly our for the basis. exclude at fiscal quarter-on-quarter our and beginning early a results comparison fourth divestment, XX% TDDI quarter in in quarter the that fourth cases,

XX%, customers XX% above three at revenue, and of we XX%. the XX% During quarter, had

of end non-GAAP net on $XX.X income ongoing the million, costs million. June first million $X.X rate gross from were a at divestment gain we a restructuring which for and For and the range initiated to asset divestiture. gross and On fiscal million, of program of of XX.X% the amortization. amortization tax GAAP of preceding our below for in In expenses XXXX $X.X the fiscal the reflecting the as savings sale cost was the of XX.X%. initiatives includes of of margin quarter in per margin were quarter the $X.X the $X.X basis, the on Mobile quarter product in benefit GAAP continue June primarily quarter our expenses expenses million our operating million, GAAP the income high from of range million, at of the guidance impact down LCD TDDI the was quarter, the income primarily June million, operating was GAAP of intangible product expense million million of TDDI GAAP our restructuring of quarter net quarter $XX.X retention accrued of activities line. a improved year. We tax $X.XX reflecting quarter; high June range compensation our $X.X share-based $XX.X guidance our half the TDDI of or $XXX.X our $XX bringing includes share. savings mix, XX.X%, execute million, other the non-GAAP diluted our and $XXX.X at and included to intangibles end GAAP

quarter year-to-date June quarter diluted Non-GAAP to results. we $X.XX was for rate continue or per on non-GAAP improved $XX.X the tax Our income year-over-year for a was as XX%. and XXX% share, period the million, bottom increase net line focus

driven cash Receivables million XX. were million million by balance flow primarily Capital million hand, $X.X the our our revolver days mobile $XXX with from cash facility DSOs approximately expenditures $XXX million, million in of were and million end inventory the were and were were quarter during $XXX and and Inventories the quarter $X.X million. quarter. depreciation XX the sheet. million days. product of from an the LCD We $XX operations turning the for June $XXX prior sale quarter our at of the Now was ended TDDI $XXX from of the to from $XXX drawdown increase addition the line, quarter, of from on

Before broadly expanding improve quarter connectivity drive ability wireless make long-term to note our continue of me guidance, I to closed two profitability of turn our our on serve IoT rights that We to ability while more a will let acquisition certain transactions to July post customers growth. Broadcom’s our business our to drive end XXrd. to

our us our well to on Both available these closed were XXst. for profitability. and cash also July targets sheet on DisplayLink our execute with on of growth acquisition position We closed longer-term balance higher of growth transactions and

Given our our will September acquisitions business two business we quarter. core outlook as for as these the timing the transactions, consolidated for excludes provide newly these of that for our well both

be for continues to to core be existing designs Our and sales as products continues business new ramp robust. strong

For we consolidated future the only quarters, providing and will outlook. results business be

provide first to measures. efforts, respective note used that unreasonable comparable timing GAAP of non-GAAP we financial me to to financial that our these the we non-GAAP are of because, outlook, adjustments financial unable certain amount reconciliation predict are to measures to unable measures without let reconcile forward-looking with certainty reasonable provide their are I Before these or

the September in expected Our million. of quarter be to $XXX range to for is post-acquisition $XXX consolidated revenue business the outlook million

forecasted about than acquisitions expect acquisitions announced our two of month. when revenue, better the we what add We little had million for months $XX last we to a roughly two

share. acquisitions from positive of mix to expenses margin gross to remain to any the to capture, Mobile, our is tax million. before diluted is the reflecting XX% quarter respectively. the range per Non-GAAP and acquired expected strength $XX the $X.XX our be Non-GAAP in XX.X% to of We PC XX.X%, businesses. we net products and expenses the be are non-GAAP quarter to and from operating non-GAAP XX%, anticipated income share $XX range newly operating additional post-acquisition expect be IoT, the to significant the per for revenue to from XX%. impact For be the synergy anticipate $X.XX the million to expected rate September in Including our and existing in XX% consolidated XX%, business

backlog revenue our September in entering business, to to our $XXX range September be quarter million We core is turning million. for and business our be Now the of to $XXX the strong core $XXX the anticipate approximately million. quarter

to well our our We continue acquisitions sales gross and to business growth, year-on-year our our growing execution from prior between extremely our sequentially, XX% margin in strength business, and PC-related effects for the to continued XX% near-term and stabilize. initiatives. see nearly core with Non-GAAP improvement to than is continues to reflecting beginning expected perform mobile greater on IoT XX% be business XX% margins

focus an in for the range non-GAAP to expect in million controllable $XX operating September also active reduction. expense to reflecting quarter be of expenses the $XX Synaptics We operating core on the million,

extract this call upon remarks, XXXX like the as well drive we per over now further beyond. the to $X.XX $X.XX business as our Synaptics, across profitability the per foundation, prepared quarter additional improvements improvements so wraps Building year Operator? bears to summary, building as business is non-GAAP This to contribute year to in income a combined session. on year the execution per business for September for share the fruit. XXXX. fiscal up to our core operator focus the record anticipated share for In fiscal share our a on turn and core newly resulted more synergies the will I’d range earnings operational profitable in net start of Q&A throughout we as For emphasis diluted and

Operator

question from [Operator Cassidy Instructions] first take Rosenblatt Kevin our We'll with Securities.

Kevin Cassidy

think your you quarter Or out thanks could you have And us that if you've great them September I quarter, for seasonally? seasonality in? at how and acquisitions. revenue is wonder been strong question. a the on how Congratulations help my about taking the to to just do for if comes able maybe look

Michael Hurlston

Yes, Kevin, so good question.

quarter had acquisitions. these So we've this is first the

getting our seasonality. we're of So still sort hands around

we it's part that IoT overall to and that to businesses our similar business business. IoT of that seasonality to similar the think our today, of have IoT Given our likely many is be we

Kevin Cassidy

a the great. us revenue you providers. that Can you And the give on little service have what when details we of see for wins with Okay, would timing more would two be, on that?

Dean Butler

our say some early XXXX in the quarter that second second Yes, calendar events. half But may We would going fiscal the Kevin, of quarter. the are be majority those fourth to calendar impact going see revenue of of XXXX. to year, so the I is hit in

Kevin Cassidy

get back Okay, great. I’ll Congratulations in the again, queue.

Dean Butler

Kevin. Thanks,

Operator

take Thank with you. question next from Christopher We'll Rolland our Susquehanna.

Christopher Rolland

you Hey guys, you market your that some to about you also you the talk there question. for portfolio? that assets can want perhaps have speed technologies think the the you you the may your think which and Michael, I Thanks. thanks new new add to portfolio combining guess, start at then for can out in of

Michael Hurlston

begun we strategy, DisplayLink, a of on wireless certainly one We've at I things and at can create first. the working of may actually sort were looking already set and like people solutions. second are docking how the Yes, Chris, take take integration

it's already SoC. I us the So And that the drivers nature with relatively of has underway. also work wireless Edge to and straightforward relatively get things begun. wireless combine for that our straightforward asset the It's products combination given to that and think

begun, there. going I'd and already gungho has So work that say we're

acquisitions. acquisitions, obviously both In just in terms I spend about absorbing look and at we're going We're we've excited don't we two, brought those. time of some for what think to those that

I to depth expected. that But a As than and is It's more think the been I of up holding by Dean and both be little pleasantly we rather we've believe in to what what businesses said bit strengthen we're be to from the comments, we've looking than seen going to add continuing true we've thematically, going revenue to new businesses. adding them. surprised said portfolio, his the have wide we

have. the has the kicked think I strengthen off core is So more things and for are basically that add going to the to we that some looking that products here differentiation initiative Dean

Christopher Rolland

one Dean. yes, Great. for And perhaps then

we that massive your saw then we be like a if have that And math Thanks. thought seen believe model think DisplayLink Correct I business. is you in about revenue. number. this that here, XXXX talk seem is So in bump wrong? as it do work-from-home we doesn't would me said million I was that, I And could merger off, if this that $XX would in in assumption trends but this just PowerPoint, my perhaps you great. necessarily

Dean Butler

from $XX the results right Yes, XXXX on Chris, is your million. DisplayLink. That math calendar was

bit actually largely than demand, sort work-from-home the I the that has this normal to it's we're past. $XX here continues, surged to point, the of the when million sort I think far at point. first But similar we sort work-from-home, of sort back of this over think pandemic as have last before I on As since little of that business normal. would We're happens. PC bump at of to – run some acquisition closed biggest rates strength of back we sure strong sort bigger rate. which not of started, and tail coming a of was couple to seeing actually better occurred sort gone And the come just think really of some DisplayLink run the see things do sort quarters, wave but

Michael Hurlston

months. I were said just you the $XX what add to – Chris, million revenue I acquisitions Yes, some that Chris, – add two think minus in two I plus color, to Dean think over if going was mean, I yes, think just or what

that is about to we a you the that talked or more. of it back DisplayLink the running seems consistent little kind bit levels if So out, that

Christopher Rolland

in guys, also get Thanks I’ll back fair. is That queue. and Yes.

Michael Hurlston

Chris. Thanks,

Operator

next take Needham from We'll Gill Raji you. our Thank & with question Company.

Raji Gill

you the total EPS September. Thank to it like I just difference with congratulations. looks echo there the of At the the and between we acquisitions, core June If at and from accretion. Yes. my going $X.XX look business business about was least

of about in accretion year? I throughout that we just – so terms slide, talked in know and we the EPS how you the how $X cadence EPS be about we And do progress as ongoing should think about you synergies. the DisplayLink the the thinking But timing? How the post of wondering

Dean Butler

Yes.

out quarter right month on this to is Raji, what a sort sort rate the it for you're the months, in in we take $X.XX $X.XX DisplayLink of – So deck, around EPS you of captured. which just year. synergy that if – and assume right, to that extrapolate In is order the roughly $X to accretion. That does get a contribution full then it from the gets was which run the two acquisition showed slide

So rate. closed that's the We've this at full annualized of sort transaction. just run

I sure working the model you the all think thing. from that sort run happening. mean are We those closed of months of rate. announcement – quarters. just is captured teams virtually way synergies to We the to together take that four that just all literally this, to it about planning that in haven't would get full we of to how did The it make over if in synergies yet. sort actually course about will The I of say any layering a happen. XX this think approximately likely just But

Raji Gill

touch. talked in you your remarks, customers in Michael, And great. Okay, marquee some announcing OLED about prepared additional

update in kind about as XXXX? progress the do how fall of into right of positioning the an what think now you've year? positioning we of get And kind of we that calendar your competitive throughout touch terms as to wanted moving and into in Just OLED kind go is

Michael Hurlston

Yes.

it. We feel about continue pretty to good

good our add, for should We table that on think high-end I seeing now couple the be in and marquee year, can able – next models China. in the we to we're wall think run to Raji. we've I handsets as that effectively ship a wins of additional said, we discuss We've would we next feel customers that that sustainable. are the call it's

production, start XXXX. So second now phones the of that even quarter of for wins them we're picking some in are up calendar

we so on that a a continue been continue It's about really good it. one to And surprise and feel to see we go-forward pleasant basis.

Raji Gill

All Great, thank you. right.

Michael Hurlston

Raji. Thanks,

Operator

from Thank We'll Anderson take Colliers Securities. Charlie with our question you. next

Charlie Anderson

in taking on you I for questions, large my there. great congrats Thanks Yes. here. as wonder business, all the my on progress have well mobile the and two components

one you a of got display if got go-forward, You've is over you've And wonder maybe the wonder, And follow-up. in a sort that quarter? then to how on you is chips, trend? that speak got mix shifting time. maybe talk could I chips. how and which I current I larger could about

Michael Hurlston

I I following. Yes. the Charlie, we break out. say think don't directionally, mean, fair But question. it I'd

continues to think the up. hold driver I that display

OLED, up As for but and away that's a and LCD from that while held expected. erosion phones toward transition better we'll up in it's than see actually number, held

I on think you hold panel. refreshes, it's from particularly to continue up LCD the because customer to our going see largest

to don't been I glide wins So we've our has going think and question, touch – though, well away anytime China. very soon. that, path, said wins in the continue that I downward of momentum, kind touch offset as done previous we've in That our gain is by

maintain other actually expect customers, continue We extent wins up couple well. a here handset it's so pick like going that momentum at we looks strength. the of is I going do to strong, And we'll large touch to think our forward to pick to and can makers key up

Charlie Anderson

Okay, great. my for And follow-up. then

business, of I know mid-teens the quarter. down the is year-over-year. On IoT kind core June was if down revenue out the the think exclude it maybe IoT I acquisitions, from I in

maybe wonder, how of of speak and see some you recovering? business trajectory terms the of that in of currents the it over I So there kind time cross just maybe Thanks. you to can

Dean Butler

right. is math your Charlie, Yes,

excluding IoT down a about core actually – but acquisitions, which on that X% XX%. quarter-on-quarter. it's of is year-over-year, the about And sort new So up

we move is sort actually it this quarter's to on actually quarter, has X% up about talked there. to see see we actual. COVID-XX with of and feel headwinds So on last as where business guide area our that plus some sort to of quarter-on-quarter relative last to really do the We're stabilize this of start had some positive we impact additional

think do that the to stabilize, portfolio probably headwinds COVID-XX? is we had most that area the has but starting So against of the it is an

Michael Hurlston

Yes, said. Dean little just of bit to I mean, what add color a to

look interface really of like our significantly we've But well, subsegments, done is think kind video and have talked buying there down. If the some has about core The had automotive automotive you in well. weakness. some relatively at I obviously the that we've has had car cycle done is

in Our Dean grouping seen grouping that the the about and a largest the United talked call, is is in retail IoT lot in of business haven't Edge we on the that SoC think through States. and I here earnings last stores channels, with closed the

products. We of class haven't retail the seen pickup our

same say, It's that's Now area that have now and the business. but We been we feel really Dean that in nice not subject that are off wins, in we have have those remarks, a talked now us. We're like those year. prepared exactly until to on said the we wins my next we're wins clicking ship I depending aren't momentum going wins focus customer phenomenon as for now significant to to about.

Charlie Anderson

Appreciate for guys you thank Perfect, the all color. it.

Operator

take Research. question Harrison you. We'll Arete with Thank from Barrett next our

Harrison Barrett

kind back into in looks little up long of a settle rate? It run another XQ you to run pushed strong business of rate more last your expect do before normal guys. PC you for like elevated Or these XXXX. has this bit? a bit a quarter revenues normal Hi, How

Michael Hurlston

prior talked about think on bit Yes. I calls. a I little it, mean, we've

of the through year good. end visibility the looks Our

that for quarters We couple had business. see continue row. in to a of momentum a us in We've record-setting

this our certainly strength. levels. the any think calendar it's sometime slow I – the certainly I And know, we I It's normal to do we're the of going you continued business. more way see have we'll going think Dean, return on thoughts about I through sort down. that? don't of But QX that's to thinking to think year,

Dean Butler

of But all to Yes. seem macro indicators that little seems has revert has of leg. mean, is longer-term have, right and to sort backlog some does we a our like I it customers, I think from bit Michael's and indicators both assumption. that the sort back through mean, that's at it point, of the comments

Harrison Barrett

just solutions? sort little thanks. automotive. any fingerprint seen you Great, heard models a particular think of And TDDI of tilt in in sort a we And on pushout now near-term geographic then featuring bit order the the then is But there and I pipeline? have

Michael Hurlston

is no. the mean answer I

in TDDI products majority touch discrete display really have the But launch business our to to are of still automotive our TDDI and is yet The launch. drivers. design late products model the upcoming been calendar as XXXX. as at no moment, year the And QX for at there's tell we least So we the model far can year, pushout those discrete expecting launches.

So automotive been us for we news there's back across the story loaded geographic XXXX to And a good expect to kill. no be particular half. fiscal our

that area. Japan, other minus, the table pretty I think in the we're OEMs And the early adopters or plus automakers, all launch XX next U.S. for to our TDDI are European, effectively should Asian months. European but in time, automakers, generally speaking, XX running

Harrison Barrett

guys. Thanks

Michael Hurlston

Thanks Harrison.

Operator

you. Thank

Our from next with comes Christopher question Susquehanna. Rolland

Christopher Rolland

for Hey follow-ups. thanks the guys,

the can area gray Michael, WiFi up ones. win using that also for any quick So then you just And with Perhaps in a have this set-top two a SoC? guys? box? maybe there's clear you just the for service win only you, be is providers. Does Is Or for WiFi whether a to it not? doubled. goes for back stock service but of kind I've that them a agreement have of then, or out this, the that lot violate And entirely. of a the lot there provider? Dean, are from it of if DisplayLink, seen Also, for hubs out sorry prices them OTT Broadcom to Does through coming the

restocking parts that may imagine still for And process so those there's take inventory need place. would I an to

the in we Thanks. December? that September would see into why or not So quarter even

Michael Hurlston

the certainly Chris, wireless first Both were question. are the Hey assets. we start in-flight wins before let had the with me –

our of entry SoC. wireless, there. So we feel an first on these you've the can your have wireless head – them That's cannot. service neither To particularly typically like like provider, of in content for the more sell Internet we focused content question, OTT we we point we're gateways know to edge don't point there ends, streamers got that in, just they're are including access second the home. where it We feel in coming

into we that be first point home. So would DSL, of entry the at a the can't cable entry modem product sell that's a the

there. We've gives from our asset. to So the first main edge point, in are hopefully, that certainly put together class doing of and necessary the precluded the the we But color. plenty – entry anything Broadcom you wireless opportunity we're kind got of SoCs products for that

Dean Butler

and then, rate Chris, whether around just sort supply availability and there's And run let its of me there. work-from-home other DisplayLink take question and out your

So one, the is the backlog projection transferred providing September the we're as us. for quarter on it to over based that

two this the new DisplayLink in we backlog, look as ownership is there's I I or able to there's level last sort of on run these that into so, from don't base. we the that. the next in can't that recently right. I not of week sort shortage get sort aren't see of when hearing run can't broad availability sort the we really of other to – are came sort rate of which of rate sort just know don't So for I today. whether of over people there. see chipset. this supply we We're the within see But today, out actually that actually components speak customer is our if of sort applications what restricting speak to months,

out months two our of sort of it's quarter. So

Christopher Rolland

Dean. Thanks Thanks guys.

Operator

Instructions] [Operator We’ll Paul with our next from JPMorgan. Chung take question you. Thank

Paul Chung

taking congrats my on Thanks Hi, questions. guys. the And for acquisitions.

is $XX OpEx? of as OpEx we your And how as see if million year? And we should model two now? of kind just then throughout just for move amortization with do trending run then kind move we stock XQ, where then you the that are XQ So past OpEx, months done restructuring comp, on out any Is worth? expenses that of F of have new of you in incremental that kind there? quarterly F kind and guidance we And kind rate

Dean Butler

Yes.

that's me for So a second. try you, for just here let it to summarize Paul, –

and rate the on first sort forward. the So OpEx of going run

that acquisitions two expenses operating is months. only for two the months roughly the $XX added So incremental of million

a quarter. in the You three-month, will next full see quarter December quarter full one come

base have we have initiatives operating that Synaptics. also at However, been ongoing expenses the

overall, baseline two have three September actually quarter won't we although is instead quarter. be sort the guide months that So we've that feel the December in months of the increasing, sort the for of that we you given of

prior million The of and quarterly. think committed of the what rate. That we've I annualized the is sort other $XX I in on the about one expect run to on DisplayLink acquisition an would how way, to on synergies, about callers the synergies asked layer think

on of math sort So sort that of layer you in. the quarterly do how to can

As not far updating the guidance actually other stock of et depreciation, or around around sort of adjustments, – specific one guidance cetera. as we're specific comp

of number that of closed wouldn't actually these a specific Paul. sort sort having of you price we sort to purchase accounting, be just this point, comfortable through, have giving We a considerations go guidance of at

Paul Chung

of more year, It year businesses? Thanks, in the that moving think there're and do looks we mentioning. year. other CapEx XXXX? flow that’s working are nice then levels free And like about cash end this you how of should flow kind kind you think from had as pieces a free fiscal probably overall about And the next kind as of fiscal Does reverse integrate you very year cash I to then XXXX? of a guess, But we for benefit you as very of helpful. nice year. kind lot flow where see operating cash cap of

Dean Butler

Yes.

good be business newly should where think similar CapEx cash of relatively to free better. you two combined here are sort Synaptics, acquisitions the the have to light. it's the mean, So flow or about I for as

So I here. significant to a CapEx add see don't need

going been forward. is over things to this a I Michael last in and months. of free one of that cash toward significant And last XX months. you flow, formula how going think just that the same of actually the free the cash about have see applying terms working think to increase We're In I XX pretty flow over sort be

look add two businesses accretion at these in, rather that when Specifically, than come incremental they dilution. to only you

of Paul. sort think how I that's about So would it,

Paul Chung

guys. Thanks

Dean Butler

Paul. Thanks

Operator

session. concludes question-and-answer now Thank to call like you. would This to Hurlston. over today's the I Michael turn

Michael Hurlston

during to you to for to you upcoming like look at We Thanks quarter. conferences of joining today. the all a I'd our investor lot. speaking thank us forward

Operator

today's Thank teleconference. you, this and concludes gentlemen, ladies

disconnect. now may You

Synaptics (SYNA) 5 Aug 202020 Q4 Earnings call transcript