SYNA - Earnings call transcript Q3 2021

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Operator

Thank you for standing by and welcome to the Synaptics' Third Quarter Fiscal Year 2021 Conference Call. At this time, all participants are in listen-only mode. On today's call, there will be a question-and-answer session. [Operator Instructions] Thank you. I would like to hand the conference over to Jason Tsai.

begin. may You

Jason Tsai

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

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

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

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

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

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

Michael Hurlston

the to Thanks, and XXXX strong pleased of quarter. with quarter foundation we With today's and strong Dean spending, IoT Revenue improving a to have efforts Synaptics to start for remained growth our welcome our in as our disciplined our record our led revenue normal We largest to execution better guidance our and with Coupled non-GAAP and made financial product year-and-a-half a guidance continuing in the established joined I call. margins. had non-GAAP was group, I'm line IoT with end drive net Jason, were contributed than and this to the at now seasonality. Since and gross range. strides another high income EPS of meaningful ago, results company. profitability

as higher Our gross focus margins increased have toward our margins and investments and we significantly margin non-GAAP shifted products. operating

able been backlog revenue We've built expand our our growth. and footprint capture customers existing a markets, to - of new adjacent across wins us product strong all Additionally, design we've future for setting new up areas. in into

to better, well never aggressively sheet, are and inorganically. our pursue strong and we with been organically has profitability balance positioned both Our growth

strong enables expand strong our us end our With the to industry outpace traction on to our product XX% confident markets Now and we and revenue that base XX% impact all customer have rate. our growth. outsized the In we can and Despite sustainable growth you supply constraints, design across increasingly business. ongoing deliver of aggressively are we update we that me let IoT, customer win diversify continue backlog to momentum, lines.

IoT portfolio our Let from share some me quarter. highlights this

many as smart of ramp Our secured wireless quickly are automation, production. watches connectivity devices the design to home nine beginning the to wins in streaming we over and months have new solutions to past continue scale

We from of are that roadmap year, expectations. Broadcom. quarter quarterly we on this acquisition trajectory market track products us when begin for the the for to our July last as in the significantly closed exceeding rate double developed We're to we revenue the run confident products continues innovative these by

for Our remained video to as our continue outperform products interface stations strong. demand docking

important to begin to estate corporate real be office, hybrid shifting hoteling to becomes companies As where a will needs. the more many office facilitating model, returning reduced

docking solutions problems we that seen of demand. result many and can a strong in universal from the Our have as DisplayLink arise solve hoteling

docs PC well one-to-one tied surge traditional the to largely selling are Our in also sales. unit

applications our us We our chip opening are video extend in year opportunity interface the franchise. and traction into a protocol we tremendous ago, Several announced is docking up New the Cayenne, retail. plan products nearly new seeing within to whole higher Cayenne is a end in volume already portable adapter for develop order market. for lower featuring products shipping entry markets. to

SoC edge expected two service Our to our production with start wins quarter. providers Korean are this

to expect before additional year. of this four set-top the box end production We enter an designs

in automotive, begins will and fall. TDDI number as model new U.S., road expect a in the solutions of the OEMs we on Finally, production China the from year Europe our additional be in cars with the

typical PC as than our products. to we seasonality. let our another This quarter me performed record significantly was better Now turn

expected We strength that this designs last to shipping year. wins customer broader in with followed ongoing have new later first new our benefit from to that in We we're particularly market, the PC started quarter the be PC and of in but Chromebook at continue two winning the production OEMs Chromebooks. are to also top-three

our look us more take margins. designs of Our keypad reasonable fingerprint enables touchpad and complex markets compete fingerprint to with out and expand touchpad at opportunities solutions. and in to core these innovative we large costs products grow Meanwhile, continue to to share ASPs ability for

me let mobile products. update you give Finally, an our on

result in continues wins. design focus Our market to solutions on for best-in-class OLED the delivering touch flexible

for lead. have led high advantages We upcoming thereby our handset our to are now controller performance for mid diversification technical our range second an meaningful including a large second-generation mobile products, phone. OEM to ramping extending our Those with Korean volume win production,

In continue significant majority touch designs new for addition, flagship-class to the we with OEMs. of handset Chinese OLED win the

and competitors we business, wins OEMs can additional time, our year. the and take to with Korean repeat two drive begin ramp I'm revenue. from solid we but to finding gross this the extremely throughout winning this market take offensive the with in into. Overall, will are Due first are calendar start Chinese sell OEM are the share will the and markets new wins next margins, only while for shipping Our the our Not quarter, with year beginning to we happy aggressively to XXXX. into the

for will that renewed the six We we'll continue have carried a the top last has discipline on practice company quarters, but growth. design wins focus to the line and

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

Dean Butler

Thanks good to afternoon Michael and everyone.

with better our fiscal start than quarter Revenue of reflecting I'll $XXX but above a down was diversification quarter the for QX. our sequentially, typical midpoint for than X% provide the recently outlook Revenue the seasonality, slightly First, financial of end our review of March our markets. results our our business and performed guidance. for completed was increased million,

quarter group of above accounting for largest revenue at had accounting two in XX% XX% the PC XX%. IoT Mobile quarter, XX% to while of be XX%. and revenue for continues and XX% customers for the accounted we product During our

wins Our quarter to with to sales and and from sequentially another year-over-year. IoT down up and Mobile with quarter, and continue Revenue record as XX% drive due year-over-year office last as that to revenue strong PC XX% design X% two products globally. our seasonality benefited our up XXX% year-ago we from up for now ramp portfolio. acquisitions revenue was down continues new new our to year the $XX was compared to home the X% made was from and across IoT up sequentially we return PC demand the million products as down XX% sequentially work This

intangible quarter costs. acquisition-related were costs of quarter, $X.X $X expenses amortization, of GAAP restructuring-related compensation $XX.X prepaid million March million development which of and of million For million, amortization, includes the costs amortization of of was operating and $X.X charges, share-based $XXX,XXX $XXX.X step-up million and XX.X% $XX.X of in $X.X includes costs March the gross GAAP asset compensation share-based our of margin integration-related inventory million, million. which consisting acquisition intangibles in

quarter. GAAP $XX.X the million had Our quarter, net income In for March $X.XX GAAP the GAAP per expense million $XX.X net income or tax a we was of of share.

non-GAAP our to turning Now results.

down the the our than quarter. quarter $X.X expected in high for quarter non-GAAP gross line product reflecting a quarter. guidance margin above million, the our midpoint the operating during guidance stronger mix $XX.X end was of company record at toward with XX.X% March IoT and March were the of Our million range from a expenses non-GAAP preceding of

quarter. $XX $XX.X continues drive of net and share We tax had a profitable the quarter million per positive on focus $X.XX non-GAAP million March shareholders. as diluted Our our for and growth earnings was expense for to non-GAAP our income respectively, the for EPS

days ended $XXX issuance Now preceding of from our of million offset of of the increase with an by during of operations revolver. that March million debt was the quarter of driven quarter, $XXX balance cash record quarter from We quarter, of million pay-off balance generated short-term $XXX sheet. million million and sales of the a $XXX outstanding the $XXX our turning at under was the cash million to days. the of outstanding were the $XXX end cash-on-hand, and during the by previously investment and company XX of Receivables

inventory million remains and to was chain and relative from level due $X.X Inventory Our was $XX historic for and quarter below the expenditures of low inventories were Capital XX, supply quarter continued last to depreciation up million. desired were $X.X our constraints. days million. slightly ending levels

Now the June to turning million. anticipate everyone quarter ability limit million demand. Similar in $XXX We service start XXX% of full backlog to revenue to the as to more was be our that quarter of than quarter. constraints chain guidance in quarter, our our for the the weather range the semiconductor for the industry to range supply fourth $XXX customers' our continues to at the last of our outlook the

revenue expect to respectively. from IoT, in PC We the our June XX%, quarter products Mobile mix approximately and XX%, and XX% be

at decline provide these perform shortages expected while June quarter is seasonality grow We better with our PC to and expect business outlook. anticipated for as IoT will than historic will follow to GAAP to customers. our now is I outlook non-GAAP component expected due sequentially

to gross GAAP margin be our of in to XX% range expect the XX%. We

operating and based which restructuring be acquisition-related range $XXX costs. GAAP to and development quarter includes our expect million, We million costs in amortization, stock to charges of the compensation prepaid $XXX expenses June in intangibles for the

XX% We approximately tax rate be expect to our to GAAP QX XX%. year-to-date

to $X.XX. GAAP quarter expect to fourth for in net range we $X.XX the share Finally, our income of be the per

non-GAAP Now for the June quarter. for outlook our

expect We that sustainable. the our XX.X%, an from gross product not be unusually non-GAAP anticipate benefiting increase quarter XX.X% June to to we in between mix, to margin as favorable is

indicated Michael committed to the focus remarks, XX% sustainably are targeting near turning driving our in longer-term towards quarter remain basis. financial level his remain term. growth We targets in margins we going current near a on the the gross we provided forward our of As achieving while to last

remain We to flat in range quarter $XX expect million. $XX million non-GAAP our and the be quarter the operating of expenses to third the to June in relatively

million We expect our in interest $X approximately expense be quarter. the net June non-GAAP to

to million of addition we the million coupon our which expense existing in in expense As million notes. quarterly debt from interest cash-based fixed $XXX convertible $X March, issued interest reminder, of result in will a $XXX X%

our dilutive Q&A issuable anticipated turn to reflecting used the a potentially convertible wraps up XXXX be We range of This operator now on to continue session. diluted start XX% call million non-GAAP $X.XX quarter long-term for in per estimated expect to range over Non-GAAP shares price higher determine to to share our be prepared notes. the fiscal in Operator? of remarks, to of per to impact outstanding the for rate share XX share $X.XX shares the June like the to income to QX, net the I'd the related is anticipated to for tax our an XX%.

Operator

[Operator comes Christopher line Rolland. of And our the Instructions] first from question

open. is now line Your

Christopher Rolland

us Thanks for be? of Thanks. they gross first, gross think what run the this question. potentially and we could margin, about segment new should is I can perhaps by so remind this margins that how trajectory here, understand differ new king rate we guess the and

Dean Butler

Yes, good question Chris.

to business do mix I the my in this right, to now is think for related like in really sort in to term to the be XX% remarks margins what quarter favorable continue we of to level. it's well, run alluded similar rate is the QX So near sustainable mix us. will results our around Gross and continues

work or and seven PC on of between all quarters. IoT gross of does is to the and be spread wins how gross last eight be we've but the last products couple at costs out the And far chain to tends of years the our taking growth where into new we tends know as higher, revenue culminating of product the for the margin sort mobile seen and as design of that and different break in guidance, and we've course supply new out don't groups, that and we that And you middle margins over lower As that two. of hard can. been the breakdown the really

Christopher Rolland

that little longer of be following-up, could that some progress know your on particularly as and maybe come is in kind guys of then was you talked I to would next mobile for then something, see the here And March, and expectation year growth Dean. a made back in of kind it top here X% in and bit previously IoT have PC? layer you've softer we that you, about XX% to term, Thank of

Michael Hurlston

Yes, X% put Dean about good that I to growth think out last call. in XX% we feel the the Chris,

next I think in few is our the constraint to going be supply. certainly quarters

chain. by the we're be we do supply limited what on So, going to can

said comments, our in feel I we we're As core the market, in winning. right and areas, executing we're now, doing we're like well then really my in

in do market. as outsized momentum really, to of get able But really time, I what terms I the and we're what really by think of we to for can our that traction base. in I'm to we're to we're beginning limited terms in we're be customer the pleased, turned I in characterize going in able first think what supply. win really see the has definitely favor

the question that way. I'd So answer

Christopher Rolland

Thanks so much, Michael.

Michael Hurlston

Thanks Chris.

Operator

Ackerman. Karl from question Next

now open. line Your is

Karl Ackerman

think I drivers that Two thank may. well are controllers it's foundry level, you. disruption that the TDDI Yes, even and questions OLED. given I that, known supply tight your to essentially in display To weather touch products if and all last point, and at Austin

backlog? discuss that But perhaps as just service could upside demand impacting so you of you're allow constraints supply your you you your to a to today that, capacity to that's the follow-up as And better would ability mentioned. secure in seeing

Michael Hurlston

But from of some down. we additional we do They've opportunistic number go that, us of get given that terms unique the of very say kind to the immediate been pretty in you. of in have hear and a but like I know points, relatively to Yes, the one in chain, and Karl ability position, trying actually we get good benefit consolidate question. all, chain you as the supply supply a fact here that supply. price good things Good diffuse and has rationalize supply have first we're chain things been from to a that's on had would that to of a top increases of it that it partners. have we've bit

terms some have but working supply average. so lucky a chain very And us we some near-term around been in the sure, problem than we've mean, for has the chain to as better most little supply of pole. do of probably is is that probably given the diffuse than semiconductor supply the far benefit. bit very, challenges. got better in done able we overall I long So But

Karl Ackerman

time, demand Clearly that the your Thanks peers coming you. helping many your to And could distribution? raised towards progress shift At was despite you Thank XX% prices have for new of power toward margin costs. exert ability is Dean. target. this generation less the to substrate from rapidly gross of pricing your I IoT offset Michael, you maybe discuss rising for mix same hoping

Dean Butler

a margin those looking reasonably where of We are extract extract the passed we've Yes, there aren't customers. few subset prices good certainly is from to to that's that - along question, our revenue maybe in have Karl. lots at news We supply certainly this a changing that us to We hear along some chain our customers and of prices. of peers can. passed recently we' some like

I out constraints boat think that in this to resolve and same one, just we're there. are the of supply everybody on trying sort the

The the happening has the of note, really expansion, I other eight margin been over thing gross last would course quarters. our seven,

been has happening journey this us, for has So process a been in methodical been on. we've

of work So beginning. a sort the we from lot expansion the just of is set up hard in the that

Karl Ackerman

you. Thank

Michael Hurlston

Thanks, Karl.

Operator

Next question from Bill Peterson.

open. is now line Your

Bill Peterson

of a and as by the bit wondering in if of nice consumer the in can were you your your you more the offensive could taking products segments talked thanks PC any business you more I really detail grow the that to where are particular you on more, you past the question continued or - in was about where kind on here? in IoT? go a attack the recently gross market there margin you guess you on haven't space have you execution for Katana, newer better remarks you if any areas gross OLED, segments, drivers product I been some from Is as display color where much the space potentially until in especially playing expansion. job prepared trying of like kind Yes, going can feel like into or healthy your state. where margins the are maybe - maybe the give

Michael Hurlston

question the and thanks good. Bill thought. for Yes, appreciate Again, I the

You're absolutely right.

us areas top that think right. I are DDIC, for the

share. us opportunity half inflect think about in really second up can talked where meaningful we we've that. that think the year fiscal I we our an presents of to Mobile some for pick

it's We a third in did qualified, so, design, the already really that I IoT our rate up connectivity really area we've actually XX% indicated think starting remarks doing look much that our reference in touched we're us. of that you we're Chrome presence from and that's maybe some the a and the which a think for We connectivity quarter the this design-in And really at and team PC getting that on, our well as Chromebooks. as start haven't area the Dean But good I couple Google prepared the there say, got job to started at run again, come had we the shorter it a to qualified on there. is inroads like area ago. of that until wireless has area, you if make is number use second area, The of PC the We gross at for point. the margin. points We wireless really, sustainable, in quarter said was just cycle. would up is will to feel XX% doubled back I guide, we'll there pricing midpoint don't an those dialing revenue typically growth. leverage

Bill Peterson

maybe You just I you're of how you're for better that WiFi, focusing thanks design the Yes, any areas on, final guess, organically run of that. end some a already we reaching and Trying - finally, I from any feeling segment about that should be talked Bluetooth, are wireless Maybe there you growth segment get of will the the of here, about to - space. understanding try growth augment really or to driving in some particular you of your commentary rate investments portfolio guess, it the from shows areas that your the markets? what now. guess related you're that on as really I think And between inorganically? and wins. talked that, to about the

Michael Hurlston

strength video. is that that transfer think right products I now Yes, our in

is well growing and So small security we've we've are that's anything well moving base. and those from We're done cameras in done video where coming very is rapidly. very, and obviously really a drones, devices segments where very streaming

just WiFi-Bluetooth it's We've And with or prepared the been relatively but as that Wi-Fi the to we well, it combos. about unique. for WiFi, remarks, able outside we done so up have pick That's also watches, most in we've GPS products asset in traction. talked briefly mostly part, are leading,

done so in of wearable the also relatively sort well. market, And we've

some think are I can that. we we we've think think into us, from applications forward, going about I segments got can think industrial, it that for as excited roadmap about we go additional up products type Broadcom we and low and more open into coming those these power we're do go pretty

about our of for couple - I strengthens us, this additional up, think be field think that the years and for grower use, can frankly. a up outsized grower we it's of over us opens opens fields use and some really really, it it but good of it next business current feel

Bill Peterson

Thank I there. appreciate the color you.

Operator

question Kevin Next from Cassidy.

Your line is now open.

Kevin Cassidy

on congratulations and Thanks the results. great

placing backlog can how Do time of that You your backlog? far talk orders? when about are you the guidance. your is you XXX% are Can reacting, you more to up customers than mentioned how catch the out see a they

Dean Butler

Kevin, Yes, are which Lead probably answer to encouraging We I good in think every us, get asked turn can our times is and probably similar suppliers. it's really lined has our up is, challenge there. extended lead place similar you supply a times been wafer probably that know, on them. the out question, team most, are we semiconductor starts for to from question. customers so expanding And

be is would have to cycle. all likely in the on normally have exact actually more service might this fully XXXX, not than to supply of an seem It we like And a little to timeframe constraint when the visibility We point catch we we at last probably so, needs. customers' up all and if do have does beyond. able don't

with the just in it's really fabs time, - and cycle think a to in just - at of hard once. to it's for all think respond you all chain together respond lead it's to if turn the semiconductor the about all times put the moving So product supply pieces challenging it's I

Kevin Cassidy

about start you're would would design I set-top for dynamic maybe service than giving know expecting congratulations to Okay, the announce also a orders box? with but the on yes, and your cycle supply out be wins, what on earlier momentum Are box you designs a normal they understood. there. set-top concerned and if you providers continued help And those could

Michael Hurlston

Kevin, you've it, got you've yes, got right. it

- I of of now, seen production would we even a - all so customer have are securing a of more and for people two that are of ordering This know, Korean as We've say those, we though, entering We the talked production. others set just You production lot entering wins these others about supply. any process as quarters, orders couple is next node. advanced for a are - ahead. about they're the in on concerned

So there as more process you less the supply likely know, advanced nodes, tension. is actually

they're that's are where we nodes. so products, And more with the obviously box set-top on advanced

production So great tension confidence back still is the we time getting to up some these lead there. of our But in of are plenty starts.

Kevin Cassidy

you. thank Okay,

Operator

question Next Raji from Gill.

Raji Gill

thanks and wanted a a Dean taking further questions into to momentum. just to as the that bit my Michael, of almost be on the dig seems for happening. gross congrats a and well get little shift Yes, strategic good kind margin,

the think balance you to that XX% again short-term of target, of up that want XX% kind about in level, return gross work? is is to the tactic of a back kind of struggling kind term the feel margin kind XX%? revenue of kind to the How how medium drop appropriate you to and kind - you relative of versus then you you're is medium-term XX%? a Is do to this which is gross get think growth then of going that when price kind - So in in order that drop how and I'm back to practically margin of your of a margin, that long-term does kind how margin kind you do and - more achieve

Dean Butler

right, Yes, Raj. that's

we're points short to couple we what our that near go goal trade-off little potential we the pricing can that I revenue Its in at towards top-line revenue great for going here have medium revenue. think to more of try But we're is operating slugs for you think so operating still income, get I I step still and gas a is to choose where is some line, accelerate effectively our term, operating a high big it. bit we're a longer the to our trying the in on driving do as drop to to here aggressive the term after of the on in right, - margin term. near term term. XX% Honestly,

Michael Hurlston

Raji, the four when year or of hit of think within I our long-term at Day long-term a sandbagging within accused okay. where quarters. so targets or we targets quarter, two we've like our time, Dean Analyst This or many ago three people three one probably hit

trying at the to top expense margin particularly on we're we my on us take bit capture - where need to gas of and that see get front really in engine gross slight margin the opportunity can going. So the foot there We we think growth. and we're to of get a off revenue view going. gross he going of little as operating we said, do the is, here margin right drive to as line And are Dean said, prop big slugs to revenue that we that

Raji Gill

at it's million and falling of this to try you is to Mobile area How reaccelerate into of DDIC the to divestiture. want an is do basis, the that falling look to a $XX an so million to now kind you of divestiture, kind being Mobile segment from around the the about we this kind the business, growth on and point following think getting be if the area follow-up, at price, down indicating sequential declining kind my market, $XX it's for of in of you Mobile kind been on the aggressive more the range, And revenue know business then peak $XXX million that post about again your specifically?

Michael Hurlston

it got you think I yes, Again, right.

I'd of customers handset one now, we're I and curve. think American what of the there. had now sort touch on we've We've large significant our our seen North at erosion right bottom say of we'd Mobile opportunity revenue and this conversation, say

think know, we that You guidance. that - I feel our are of like out go-forward those numbers

There like kind from described you opportunities are will just bottom, And the we as and in number so built. of business that - DDIC. here, we that characterized is correctly us the feel for we

well grow we We these feel are that our OLED at steady think then going it as we to touch, market state. and traditional we continues those continue is numbers continue to wins, driver to in that do about good accumulate now the to to have that LCD continue

good Raji that's feel the start going in biggest near-term opportunity we top said, to about as position line for again. you the single our us getting So correctly

Raji Gill

you. Thank it. Appreciate

Operator

[Operator have from Harrison And Instructions] question we Barrett. a

now Your line is open.

Harrison Barrett

on into the Do Hi question. or for your you into guys, on you opportunity power be might acquisition? this this this taking my think the you low SoC thanks area have break industrial any can own market market? an for a updates an product, Katana Is for the

Michael Hurlston

we've Harrison, - couple a that. of to Yes, pieces

I we're just and out that a that. actually this we've some Katana, a company roadmap, talked one put sort on figure Compute, to to the would helping with I it third early into the previous base of the party, of with called best in of leaders drive innings and think with engage go us software about up think we that's partnering call, are our the a with customer we've then in Eta

most traction We're customer - sizable been So it's say relatively player. surprising. has early probably the innings. we started the just I'd

quite traction something I We application, particularly then it's one to out roadmap. of other story seeing chances. an a product our revenue low say, innings. with this in AI we've we expense some think hardware our partner turning into it's year I from it's we've Would the lead Now in leads And which I rather that announced I from part space? we're but but acquire mitigate away to to the our a material, vision to early as a than voice, power ways going like full in a probably design And software exciting bit think space, both has partnerships. been done and think a

this course. I to we're where do figure are. think out out what out as forward-looking is find opportunities We’ll the our test and market. trying it chart better we And

Harrison Barrett

sort types the of there customer, just a supply think or on was have this engaged I then some you're color in are do this mean, opportunistic is I term the few questions, of around drivers? in? And thanks. Great, color but additional any tight roadmaps you is longer any on environment the that there opportunity of OLED the display given in touched

Michael Hurlston

probably than Yes, the the more former. latter it's

opportunity - us. market we've to glass, think Chinese up that an window has opened I for the from glass shifted as is Korean

so we And we selecting been with bring we bear. manufacturers, that advantages performance OLED carefully LCD and partner to manufacturers panel we've that think some

sort As of step in a journey. this we've we characterized, see our

want to we guys. the go DDIC Chinese the opportunity to several on with that think quarters standalone as back. up TDDI after about the road, we this with we glass we talked and about really I think longer a enter would But partner want

We play. do that So with that I is think that we our some further there, first performance. would lead going. a revenue are important. it think as meaningful engagement opportunistic, TDDI that us very and supply in look We type gets other be things relatively And some we point more get but of out, with obviously follow of then

Harrison Barrett

thanks. Great,

Michael Hurlston

Harrison. Thanks

Operator

Michael now do would question I are no turn it we further one questions. Hurlston. there to here Martin sorry, from I'm like have Yang. back And to

now is open. line Your

Martin Yang

question. Thanks taking for my

- when digging itself? a those the And the supply regarding segment. in that market our see dynamics wireless resolving you maybe into supply seeing So about talk still IoT bit shortages do more? - you chain can you Are

Michael Hurlston

Most shortages wireless. definitely. we're mean, supply some certainly I chain in seeing

being because about new un-forecasted business a I think so particularly we challenging, growth. had for it - was that sort of us, Martin, one we we've talked

our we've Now been successfully move supply able chain. to

some a bit. a can and to where on chain we a devices with different we've demand. of successfully And up our that's opened up been think now We've spot new found we able moved foundries. qualify of old foundries supply So among our couple I keep

places. going, Synaptics us to chain, around the that keep challenge. confidence a continue foundry first that from that Broadcom been can our it then maneuvering chain certainly has We've but growth to engine we die work and re-duplicating re-duplicate supply sort of gives the to supply of at different bringing So some by the challenges had hard to

Martin Yang

Thanks.

that for going on there about to you strengths the else the broader of need docking for maybe the may on you and want the for turning to laptops that was do PC set be a forward a opportunities in a where we're I basis where the business Next, instance? stations step-up ask sense outside there think something

Michael Hurlston

from home, back Certainly think been brought first the docking work hoteling has remarks. return people a we the in we been to that about that's station, in driven absolutely office, Yes, people demand by now talked home docks there be step-up as a to is going configuration. common

engage terms So currently TouchPad. products we touch don't we area, that PC additional than really screen in, have think well for on rather of the dock that example, has In the opportunity the been good. itself in we as

think We can So monitors, customers, PC we forward. stations, the applications. time will we're going become moves wireless of entirely the docking after offer prevalent that about we to we set new as think we that those increasingly then and products expand talk wireless

So we a new open and in space, the new lot sell the see more of of going obviously there opportunities content markets we we're to doing our business, up boxes. existing things PC can but on the is segments well actually PC, in so into core

Dean Butler

Yes, the other thing -

Martin Yang

- clear very It's

Dean Butler

we're a of to PC that's in And trend continue for a number also is expand say - doing also going Touchpads. the is, accessories the opportunity have quite of within world accessories to There's size us of PC the forward. here that's there marketplace. well I an sort laptop to the

So all opportunities for us.

Martin Yang

much. very you Thank it. Got

Michael Hurlston

Thanks, Martin.

Jason Tsai

you I'd soon. virtual certainly stays thank speaking We I and all everybody for well conferences. today. everyone you investor see upcoming to like us forward to look to at our Bye. joining hope

Operator

today's This for you concludes participating. Thank everyone conference.

You may now disconnect.

Synaptics (SYNA) 7 May 212021 Q3 Earnings call transcript