SYNA - Earnings call transcript Q4 2021

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Operator

Good day, and thank you for standing by. Welcome to the Synaptics Incorporated Fourth Quarter Fiscal Year 2021 Financial Result. At this time, all participants are in listen-only mode. After the speaker’s presentation, there will be question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Steve Turoni [ph]. ahead. go Please

Unidentified Company Representative

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

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

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

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

currently expectations and results related current expectations supply chain future pandemic our the relating give and financial potential semiconductor projections affecting impacts shortages condition, global the regarding statements Forward-looking and business, our of business of COVID-XX the to objectives, plans, industry. our operations, and performance including on component our disruption

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

Michael Hurlston

Revenue everyone Great had call. job, to Steve. IoT And pleased end the XXXX, today's continued a our exceptionally fiscal than normal profitable was strong growth. strategy diversification guidance execution the and diversified our of toward and the We welcome year above for of our and intentional higher significantly to shift customer with portfolio an our by and was driven trends June prior base. quarter midpoint seasonal I'm of

continued, record gross profitability non-GAAP strong quarter margins. resulting both GAAP IoT remained As for and in growth another

our disciplined Our a guidance of with non-GAAP net and exceeded our result of portfolio the coupled range, spending. improvements end income high EPS structural

non-GAAP operating improve was to than upon in our margin model. as XX% continue financial Our greater we the efficient quarter

for mobile IoT now products wireless key audio, of the We broad the been and encompassing of successful has docking strategy automotive, to our transformation of One applications. IoT. of range a focus the from have our pillars market pivot video, market-leading

result, comprised quarterly our our which now our a sales. of Meanwhile revenue this approximately mobile As total than more with sales. of revenue of XX% grown products category now XX% has our represent once in excess contributing IoT quarterly our business of significantly in XX%

portfolio second, mix. with be products. display pillar build will of of XX% market-leading continue at driver our and of technologies but our to Mobile high-value is important revenue grow to be A development to the our strategy important equally and touch to will While XX% goal operate our

provides margin to value. believe that best product to correlation gross continue We the

than was incredible achievement, as more accomplishment in a non-GAAP is than handful it can X,XXX believe Over companies less the any This basis of by increased our that have impressive, margins the an gross all attained in match. more months, mere points, claim a past we industry XX quarters. to one eight

organic we fundamentals never all growth in portfolio. Our clear for stronger. our three avenues have areas of been And see

mission to go. Finally, our engineer, half elements traction at one to of that customers three top XX report whether strategy resulted consumers cross-selling like experiences, increased with of introduce statement, distinct that has more our car, Synaptics. in full categories technology in I'd our am unifies the more or their buying building they or office, than updated products experience-centric of portfolio the exceptional our to on all are in home, for portfolio, the in I from pleased our

count As an to display order drivers and wireless audio, in buy us. to have example, a would customer from

of hand, other three generations count. the would touch a customer not buying ICs On

you me world-class in connectivity update wins applications. broad let to our In momentum business. Now, range continue build wireless IoT on numerous we a of with spanning products, our new

enabled Our XX recent growing we've support wearables a fitness-related module Through this channel doorbells, customer over and few. applications wins with ecosystem efforts access in other months rapidly Ampak our partner has us home and strategic engagements, to our revenue video past and name the surveillance, partnership establishing expanding in a to utilizing sales and doubled base. our automation,

designing existing Our combo great and best-in-class new chipsets six products. solutions WiFi are their traction Bluetooth or customers seeing with upgrading

new particularly design several in secured our wins solutions, also with wearables. GPS have We

XX path Given to of in a doubling more see next the once our months. we success, pace

Our XD industry-leading Audio to franchise be adaptive performance, recognized particularly sound noise simulation. and continues cancellation its in for

traction in last headsets, gives feature audio many set enterprises advantages call with the over high-fidelity year Our significant seen where consumers, solutions. and we've their centers us upgrading

environments Zoom. our environment, qualified more hybrid XX than auto our in solutions, as of include, display manufacturers many EV startups. well work Korean either headsets, European, XX and strength U.S., collaboration for In and at now Microsoft as, solutions devices with touch are Teams high-end production or OEMs models car for to return in such certified the as people continued As that on Japanese and new along a audio our for opportunities we automotive, expect in

that silicon interactive vehicle. into positioned more expect well year. XXXX. $XXX the X.X market one content you interface, video and pleased in now And anticipated and for to dollar converters to to evolves is achieve of the of media plan now ahead richer are support I'm Automotive this As product with an protocol goal, is standard. full update full strengthening Synaptics we In fiscal with a annual And of the capture HDMI center, fastest-growing our areas. per console almost our market of of being revenue to our million significant Synaptics with portion a increase by first by center a end demand is

combining represents the in technologies, connectivity market XK desk the only to both displays, four enterprise-class Our standard for new to and workspaces. DisplayPort dual-chip solution setups offering solution up DisplayLink spanning

adapters several into motherboard Our which has Cayenne designs in native for support notebook been is traction successfully new seeing family, XK with incorporated protocol resolution.

our we increased controllers As focus meeting using companies an to flexible return office, see on room technology. the

In solve result, solutions from strong to addition, demand. our in universal see many docking and problems as the of a DisplayLink arise that continue hoteling can

to IoT on our discussion, like to a close initiatives. out Edge Lastly, I'd Low AI give the Power brief update

AI devices see on believe get today cycle, incorporating will While learning are device technologies We relying still and on than the continue than smarter in early future rather the by the itself they cloud. the network-based opportunities advanced to machine many all AI we begun into face algorithms have matching, our algorithms. new AI-assisted products already as video across detection neural such and deploying many – and of begun tablets fingerprint in markets, developing advanced or smartphones our AI-based compression and in already

intelligent that platform, offering is low-power targets opportunity Synaptics are also It our our use edge applications. become standalone in for AI belief of Katana long will We term. these seeing a which over interest is the cases our broad many initial battery-operated significant that

Turning now products. to PC our

increasingly into essential benefit our productivity notebook daily computer as gets from We woven tool. an fabric continue demand to the growing as

many notebooks. leadership class, we in to focus chipset. enabled Vulcan returning As are utilizing our touch seeing and In consumer momentum high-end from enterprise benefit the position we pads to companies the class Force Haptics our in on expect office,

recent growth for be our the Chromebook a company. initiatives to discussed, continue addressing previously market greenfield opportunity the As

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

further our OLED set production roll in touch volume and high will now controller a our leadership. We out with which extend are to third generation second-generation are performance

customer have OEM, customer win to bringing begun with diversification for three, handset large mobile this with have led of two shipping. an total technical Korean including our additional to a meaningful design Our of already our advantages base which

continue OEMs. we to flexible using of win addition the new In handset flagship designs Chinese majority panels with OLED

and makers have We OLED with strength products, with made in our prospects, of as our calendar production customer our we our strong about created, has optimistic quite Display in our extremely design the portfolio support high-end expected having the to standing also wins the with two have happy customers' significant ourselves to Driver XXXX. Despite with continues begin base, and ready I'm positive turmoil, shortage secured handset year. an built Overall, fiscal we Chinese our a the our new in progress wins marketplace needs. with we drive increasingly find technology semiconductor team

results let call outlook for our provide Now to financial quarter. to and the Dean coming review me our turn the over

Dean Butler

current good afternoon quarter, year provide I'll QX. our and recently our outlook fiscal everyone. start Thanks, our recent completed a our of review to Michael, and then financial for with results for fiscal

flat fiscal billion. For was year of net of prior the XXXX, revenue the $X.XX year billion full $X.XX to

than base. IoT per to to offset margin for to we higher-value our large growth the gross prior to compared of recently our or and XX.X% fiscal products Gross margin by margin XX.X% XX.X% company's completed as driven XX% PC accounted up year-over-year net revenue and of end the with to XX.X% as growth which concentrated significant XX% Mobile which accounting our year, products an grew continued the to up XX%. seasonality, record, was or per Revenue in with X% June or was million a completed year the million customer products the million XXXX focused by mobile $XXX.X Revenue recently was GAAP year-over-year diluted the Non-GAAP the net was year income products and above compared $XX.X or for guidance. non-GAAP OEM, of expand which income customers. prior diversification IoT group existing During recently both of declined our the year our of the diluted million per double-digits and for the new significantly year quarter of IoT both in share. increased of for our delivery sequentially, while previously to and slightly $X.XX quarter PC diluted $XXX.X improvement. to product $XXX.X delivering prior year year. on for our be is compared our for business prior from our markets; discussed, and was better the midpoint American share, fiscal $XXX $X.XX the largest typical compared $X.XX in $X.XX the completed products which prior million per reflects accounted XX% compared year for XX% the share, significant GAAP for share, products, gross fiscal and our of in a diluted North year continues

shortage ago PC Our year-over-year seasonality down year XX% up due many acquisitions product and benefited up expected impact XXX%, IoT by market Mobile ramps customers was Removing our quarter, and as IoT any XX% last a to were of win down the strength, other X% as as revenue XX% design down compared year. was from organic components. in in the we revenue and our down for sequentially, X% production. nearly acquisition year-over-year. this Revenue products as were with into our year-over-year sequentially XX% sequentially pipeline made products related up was from constrained our

we quarter, the had During of above XX%. at XX% revenue one customer

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

small a quarter, prior impairment charge the an company. a $X.X During on equity investment incurred of startup in we million

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

results. our turning Now non-GAAP to

down gross mix to products $X.X we continued reflecting non-GAAP of was record value customers. company and June highest strong range, at the at guidance our responsible the quarter a high-end of quarter preceding continue expenses to guidance were at low-end June Our XX.X% range our spending manage our as million, from of to a levels. margin prioritize as we operating $XX.X the non-GAAP million quarter

the in quarter margin As non-GAAP a result, of was a company operating our XX.X% record.

quarter million, Our quarter. our June and from quarter expense growth increase $XX.X the as the earnings the drive in share per prior an $XX.X ago the for was X% $X.XX a an of non-GAAP non-GAAP million increase from of positive of profitable quarter same continues had income for year tax XX% shareholders. focus We on net diluted to our of and EPS

during to of by our balance the in the operations by on of number to principal the $XX quarter, million from June of small million preceding We $XXX million million generated of partially noteholders the an optionally increase of hand, with during turning Now, who the driven $XXX ended value cash quarter a quarter, convertible quarter. offset settlement sheet. redeem elected cash from $XX

any the any in the outlined XXXX, The company and value for the million following shares of issuable value holdings. all in company notice the and face the June XXXX noteholders approximately to our resulted consideration. the approximately elected full indenture. process of notes in on in-the-money the served company's to cash end company's payment X.X consideration treasury settle and from notes notes XXXX full on redeem our cash in Additionally, all the shares August million $XXX process outstanding after of convertible of with issuance to stock This intention quarter and concluded redeem existing Xst, Xth,

have reminder, -- been quarterly result our share Therefore, into as each our them a we incorporating into in where comprehended count in-the-money results and a include these appropriate. guidance. our As diluted fully quarter shares have been they

balance healthy with EBITDA times X.X extremely approximately times sheet net adjusted with leverage company's debt is remaining the gross this leverage the company's one XXXX. transaction, roughly Following in and maturing

of for $XXX authorization available four incremental the extension increasingly new have and the authorization our our million. generation million, Board Given an improved $XXX additional Directors strong and expiration flow an sheet, its Synaptics cash of authorized repurchase plan, balance stock the to by years bringing extending

will debt investing of commitments days. our manner; program previously initiatives; priorities of of and with to our secondly, excess We product at and in shareholders. first, third, back continue accordance means prudent were inorganic deploy portfolio; a pursuing Receivables growth million to finally, our organic outlined; days our our capital expanding managing in sales $XXX June repurchase return flow share outstanding the XX to continuing end cash in were

$XX million. last Our quarter and days inventories of up XX, ending inventory from was were

the chain However, to $X.X level our was desired Capital million quarter and inventory constraints. $X.X remains were due million. depreciation below supply continued expenditures for

coverage range end turning constraints to full start to increased service continue the range outlook. September fiscal guidance the full in of to Similar ability $XXX above quarter million. quarter, million our our demand. of of to last quarter the our revenue revenues. limit $XXX backlog We our strong to demand Now, anticipate more for at the top our our supply experience customer's enter XXXX as was year to we XX% year with visibility with customer our anticipated and the backlog for be fiscal our than of We products that

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

our incorporates as call, IoT year-over-year estimated XX% with on products our September bottomed the the beginning are returning communicated, quarter. expectation basis than growth market. a an significantly to in our Our quarter's growing June last the faster anticipated and quarter, And during products Mobile

area this experiencing. seems our We supply PC the to on given continue volatility approach our guidance, cautionary be

up, will our the our comparison, roughly notebooks quarter, as we XX% likely non-GAAP provide outlook to on perform well. September September However, now quarter outlook. GAAP will follow continue to enterprise-class year-over-year believe with is I and be a for

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

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

of also expect our charge of GAAP to notes to a one-time approximately $X related retirement million. $X We early million convertible the

XXXX rate our expect We XX% be approximately tax XX%. GAAP to to

is the expected for in share to first income range our be $X.XX. of Finally, net our per quarter $X.XX GAAP to

margin ahead XX%, outlook to a the XX% deliver we quarter, for the our prior our mix. quarter and as be is to between we positive which to maintain September non-GAAP plans and Now, momentum non-GAAP prioritize expect all September of into gross

in We the be remain past $XX the to and September quarters of expect to our consistent in range non-GAAP operating $XX million with quarter several expenses the million.

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

of our convertible shares the on expect for quarter to our share income our per XXXX We long-term Q&A the an over range the per redemption be to to call Non-GAAP wraps to issued part start be XX%. September of the in share I'd to XX.X to turn includes anticipated Operator? is non-GAAP rate of fiscal for XX% net prepared like continue up shares, tax dilutive now the $X.XX session. as remarks. the $X.XX to to range diluted in which estimated This the million notes. operator of the

Operator

question Instructions] from Raji Thank comes from Company. Gill of you. & [Operator Needham the Your line first

open. line is Your

Raji Gill

from significantly phenomenal faster could was that that's on driving if terms a leading after growth of end a phenomenal in prepared you more In of Any provide what's basis markets? rate as to your to great technological guidance, perspective? growth seeing business going little your specific growth a XX% Wondering grow IoT? in year in I there on year-over-year IoT. driving than results. before Congratulations you kind is the Michael, the mentioned remarks, the market. wondering, clarity it growth the that clarity and on in in IoT you're What's that terms

Michael Hurlston

for for all, the to areas. and thanks the technology question, continued would I Raji, attention draw your support. Hey, of first thanks

outperform. really but GPS we've really we That's technology, has I particularly doesn't GPS. get we and said, really, technologies: think Bluetooth in all that market. with done just Wi-Fi, the as the wearables across attention, well and to as three much continued wireless, said,

The automotive. also of area the remarks other market end encompasses, prepared is that, we ahead technical there. hot. been said We talked The about automotive that plan the in that well has market actually haven't we're

We us. a this automotive, been expect to has rate run which hit year in for historically $XXX small contributor million

growth like sustainable that And Raji some business lot and for of see particular period that's I really and we fueling areas of think continued we So in being really fueling its quite a us. growth I for two think those time. that

Raji Gill

Great.

So auto is group. part of IoT considered the

strong that's adding expectations. so And to the

Michael Hurlston

Raj. right that's Yes,.

Raji Gill

Great. Okay.

pretty -- and XX.X% shift? again -- on margin quarters, Is margin out when due much your just fact at that that other gross levers whether of with So your that's there is guidance to mainly the the or are there surpassed in the sequentially. have outsourced this actually that to target growing several other thinking gross Dean the of next margin fantastic so about considerations looking you're margin consolidation guidance we're or you And gross intend I partners, long-term mix you gross are over mean it push margins? fab terms

Dean Butler

now meaningful term. continued intend first. are our of with been has that say mix to that partners. new about We've other are own has longer would of gross within think things for first remarks, think road. Part can designed those term here do for are that with margins. about strategic I now certainly, but of supply we really our due sort with and probably sort our us and leading to talk seek supply gotten longer value near-term but more do do on our chain we consolidating of There And products partners that a and talking mix market to prepared lot we've be mean, both our do Michael introducing constraints way. that's products we the mentality sort to high our not opportunity focus long driven years to higher that in parties I sell economics in the largely products a you which of results a and right better to have lead more we supply also it down model. surpassed I mix excited over we The we're talked last his Yes. to margins slightly two and the

Michael Hurlston

the what Yes. designed been that has it design win when by that largely Dean have acquisitions products said question. but is mix Raji I a terms better theorized I cost of we from opportunity we with get as went of that are that and the to cost color we've your got customers in done just mind. add design in now starting for I than basis we that in products and think arrived haven't these cost. other mean hand to that have Dean played really we to traction you actually added are some driven we What out

chain. see I because from masked to that's So It's lever a moment that out. cost going be think at the going play are a increases to seeing bit the you're we supply

mass to design detail be for moment. on die attention it'll So because size tell have see it's I little do But actually on our the we a cetera. hard say as a huge cost to at attention now manufacturing on that costs et bit when we

Raji Gill

good. Very Congrats again.

Dean Butler

Raji. Thanks, Yes.

Operator

you. Thank

of Anthony Your the line next from comes Stoss from question Craig-Hallum.

is line open. Your

Anthony Stoss

well. congrats just XX.X%. curious gross again fantastic My margins as I'm

just it a With did the gross on might how be? the Dean follow-up And much is the a being And margins then little hear XX.X% shortages, Chromebook you opportunity quarter? Michael much in love after your how and how even to opportunity, content it back that. of for I'd for more hold I from that big have than bit better space then component

Michael Hurlston

to current more of here. Tony supply thanks quarter mean if customers. the we're because I necessarily the really a I there's for the would availability holdback not actually questions. on -- conscious been conscious our value the has how in Honestly One say limited holdback much given supply delivering constraints. on anything of a

sure to their look our the and can where our where do and make can prioritizing customers we're impact highest-value to we we we products that So make needs. biggest

call wouldn't I it a holdback. So

Dean Butler

coming on the Tony really And that book in we're Chromebook. Yes. a small very, -- base Chrome off very

any we're year some, hot tailing because off now to didn't design it We think talked presence. have focused no I be call some there. a in our products in marketplace so we're lot the in a of red moment We that. that previous and at coming on last of upping it qualified market but almost noise our on off there's was wins think Chromebook position share I seems of about Chromebook the we area, the

a Chromebook, bucks trying share move per somewhat over there to bit on trying we're consolidate significantly to course today of but couple the about of the we're year. vector a at the where up nothing talking You're share and

your So hopefully that question. addressed

Anthony Stoss

It a ultimately excess you does. then ideas on would you're you forward? margin your raise follow-up as your have products, that gross lastly even And just Do some going gross away I'm shipping prices curious just on you gross of walk now lowest margin your products. right either or highest so margin philosophical demand from lower on

Michael Hurlston

we something with. markets pretty competitive we're as question. And great it's is. mean toy it that I Yes in

So and our raise go to challenged. in ability prices is

But most cost some think to what and Now that supply very if seen Dean customers we've passing that our has in highest I on said of have value. are of the cases our it's able benefit the it's been crunch customers. idea giving those significant us prioritizing not in to the we there's been this certain strategic any say do as increases, to that

we're obviously that available and we within the So the ship deliver mix mix the the customers what to look from mix a highest a products gross margin. have we perspective prioritizing when at

Anthony Stoss

Okay. Great color you. Thank guys.

Michael Hurlston

Thank you.

Operator

you. Thank

of from the line Chris from comes Susquehanna. Your Rolland next question

now is open. line Your

Chris Rolland

all they more kitting bit get guys. first the details supply same? or more Hi problems? little specific you question. all I a to bumping? there that guess into line? of of How much any could for there own are if great. this Is Just be would bottlenecks more customers' issues Are is things this the are specific Thanks your product the

Michael Hurlston

think where I getting bottleneck biggest elsewhere. from I Chris. the wafer our starts. obviously Yes There is, mean the foundry constraints is is headline are partners. starts That's

to that said but have us long bumping in we're as not perfect starts. solve significantly the We in But a certainly, end. so for isolated If is there wafer back you are in able still better. pull in back packaging world the in end constraints it's the it's constraints

challenges We also now are kitting. seeing around

We our for we've more to very, As to supply. very to really kit. And predict asked able entire the movement ago where customers question less backlog of to higher in mix have us in some end products. lower in or some seen it which a definitely it the to able predict the are our ones trying kit which end the you are Tony mentioned minute source challenging value deliver aren't. as challenges we and makes customers need the kind about and

Dean Butler

only pressure we where highest chain. well I WiFi thing this Chris is, business probably most are I the say The Yes. we've growth would talked putting other sort doing the and experiencing about on mean the IoT our that's is of really supply

Chris Rolland

bit what's customer been that's for a margin you've seasonal what Great. there? visibility a Also well target. to traditionally surpassed target inventories I now like you content noticed if wondering -- largest your you've And have your you guys you're raised margin looks your well at internal separately finally your long-term and into op there. gross run in the Do I'm quarter. prepare surpassed your

going we And there? an are where might those So update numbers go? get to

Dean Butler

Yes.

the bit, on quarter-on-quarter. ability little improve is a question Yes, inventory. It's first products. as sort Chris. up a inventory inventory a So I broad few to of so it our wouldn't specific characterize

on and gross then other largest traditionally clarify. I'll And customer, just is areas, the improved couple with It your it of backlog not our to on support customers support margin American model long-term a supply to surpassing then to hand them. around North is certain Although maybe sort and question. chain prepped in is of we it Michael have the specific to that sort marginally of

not actually target we're So now, right long-term at update this planning to point. our

we're sort the... level, high answer actually a in company I think then, we going don't every that of margins of sort comfortable a Obviously, the we're can. company. be in to to you I construct for I about And of the reasonable that think, want if to push running But operating very range at the improvement dollar bit it's know is very Michael, sustainable. and

Michael Hurlston

mean Yes, North let the have definitely think that, American I what is. me into about we customer. large visibility talk it I

I customer, out a little we of transitioned with And driver of don't of bottom basis. certainly a LCD business transition. entire the that. quarter on that think American through them our that, kind in on now last in about talked go-forward where display signals about and think gone call we large to that's sort that, it We've we the hitting a Mobile In point, talked from what expect is really bit any Dean's the asymptote. a building he the North at remarks, in we've its touch last general,

year. obviously, Our don't year, didn't any last that the lot going touch back see a of had we expect on half we of the and a business forward. But in business big we spike

touch So as with a display calendar in customer, about we mobile state. I feel that. for continue that Korea drivers OLED and wins steady to at upside next we're our And talked that and remarks, about good in Dean we in see in in controllers We China, we a prosecute out think for general, year. further particular that opportunity then said as his in

Chris Rolland

Michael. Thanks, Great.

Operator

you. Thank

from Cassidy question Securities. the of Rosenblatt comes Kevin next Your from line

line Your now is open.

Kevin Cassidy

the I'm And any one just considering congratulations of results. the changes with box design competitors? activity Thank could discuss you on particularly settlement -- the wondering, in you. great your set-top if FTC your

Michael Hurlston

the Kevin. environment. haven't any really We Hi meaningful change seen Yes. in

the the talked quickly. affected definitely in that of design that business traction FTC. and about the went level Broadcom out squabble settled think level one reasonable have case We and we have the I the wins and that really way but other with Broadcom wasn't think of traction in Broadcom by we that in market, announcement, or that very

Kevin Cassidy

you could if the examples of edge in the the maybe just just could give And is of doing at AI -- couple you Thanks. applications, function a mentioned AI maybe Great. what you device? Okay.

Michael Hurlston

and rather video is some example Where Alexa that and Alexa" "Hey there's there's than actually Yes. players a trying apply angle rather would simple executing the people data good to voice voice. a different up in that area. and bunch a counting. "Hey to center center we're in we're trying and to taking really than lot the like We're be Voice, of unique device is a data cluttering event at do video-related A strong of example, What commands actually problems. sending back in trying voice for Alexas." edge, solve of that -- with action the the that's a to

So or a are to lot how want of many owners foot a what keep the people retailers, store monitor folks, kind in traffic know, to now store whether many of to Edge how it's track and people AI there is they And folks able is to that, distancing to that are social real do Low shop, space. in their time. how a to within application Power want know, of calculation able do particular our many

sending there's back latency, do real than the to low data time low-cost it rather So things way to a center.

is a So on that's partners but real think voice. set entry take around couple in it's market. more got ecosystem of something around a our player be video investment got it us the envision that's to is to it's And take probably largest us. area. one which we an right the area I we're going to of a This going and this out to play and this mean enable in is is market that the we've today years right for and not this

Kevin Cassidy

Okay. Great. Thanks.

Michael Hurlston

for you your question. Thank

Operator

Thank you.

from Your Cowen. of the Ackerman Karl line next question from comes

Your line is open.

Karl Ackerman

Two gentlemen, I if you, Thank Yes. questions may.

to IoT design in in brand-new order from to is may larger and much a see substrate have of coming perhaps performing access builds products. how guess sequential outlook often for Bluetooth more Yes, ramps how across noted supply guiding Just in the by your WiFi driven your and initial of implied IoT, performance quarters your that indicate you're does I peers much improvement constraints quarter and you're ramp? better. this be many of supply

Michael Hurlston

a getting applications, runs we mean be because the minute driven in I better this and – us, And working wafer we video the the year they base. the they a frankly than winning numbers off it mean wearables. start in design to wins we're business foundries another question. at are gamut starts. you bit a Dean you access are result, the us. We're that I said, probably quite we're Yes. lot is ago a the just zero supply the unlimited area. And to up could new our And if from supply. challenging most This had that response market. by is are fact way previous from new It a we as your didn't of is baseline coming for is across really go forecast to But a there. the

access better, So we I if the had we Dean said, as be unlimited to could to. a supply wireless as this is Karl, in absolutely supply-constrained area doing arena. our most bit alluded quite

Karl Ackerman

if my I comment. up very that question just That's a two-part for to one helpful. guess on I may follow last

locked revenue, multigenerational rapid you're Thank discuss are that Korean is flagships one platforms? could have secondarily, the in And visibility and whether your whether offerings in the from designs? third your at wins you then design discuss could mid-range customer, you Given design you. those whether the duration for the seeing you win of increase broadening automotive into vehicle to

Michael Hurlston

Yes.

provider just start duration automotive, the me automotive. locked in in like you're of for with the Let get pretty mean think in, I any you I design. much once

remarks. that So solutions. other the a certainly differentiated that the in the make than a able to displays uniquely touch the talked that prepared participate. then any is longer the we We've of of feel by LCMs win for And combining in with and that given the display our advantage visibility auto been OEMs that's And visibility the good that in we technical and we in combination that is design businesses about market each cars. sustainability business about wins us combination a nice

of are types point Korea. into sub-flagship, phones. part I'd second to Where of your and of question more is we then there say your sort around mass dropping The down market was

a end the because we yet remarks. haven't not very, just prepared very yet that's So we certainly proven and the as we're not of that cracked in production said unusual highest supplier. started We've

that flexible pushing pretty ability down haven't as OLED in to down those they're margin with degradation SKUs. So down runs and have types that because customer about even as that of we even high more And products in scale come good gross we lower prosecute we into from our to low. seen – sub-flagship and feel stack, their SKU

Karl Ackerman

Very you. helpful. Thank

Michael Hurlston

Karl. Thanks,

Operator

of Instructions] Ambrish you. of line Srivastava question BMO. Your the next comes Thank [Operator from

now Your is open. line

Ambrish Srivastava

quarter Thank the you IoT to margin when you very many come be Hi. margin the I were about business better. to to much. to you level. the is do are wanted asked seem back Last times guys. continuing And pretty just articulated gross the dynamics

So why, continue absolute should the to six in because I'm IoT be just grow very dollars. of handle to soon margin should they a not profile, struggling

it over-delivered front, being been have you just your but as So nature have the many on conservative is and not only margin you on gross fronts.

side, has happened in conservatism level So what understand, quarters. just the dynamics what last favor just on several kind of margin going because the seem to exactly on for be of -- help the us the been of

Michael Hurlston

Yeah. Good question, Ambrish.

our IoT would up rates, But factors. rightly sort of speaking, grow push we've continue So to is the continues I margin think to set what's as out. in mix. market. which to higher One, the gross value Generally marketplace. journey to our the near-term to happening we pointed of two in two-year of been to continue there's, this like that And been I higher on growth say are you margins general delivering IoT higher this products deliver expand products continue in valued

Here in the near-term that continues.

As strong strong guiding a margin. again we're the guiding again September quarter, we're a gross IoT, into

sort strength. just an So I longer-term IoT remind to business. in of that think continue But I here would the see near-term it's only you not you would

do therefore we the to within gross top all of intend we its dropping bottom-line. aggregate, And growth and then all opportunities move areas And portfolio. also what to three. a think in we're but margin product organic balance there's, doing our to forward grow is, grow striking three line to continue the So everything

you're continue move of find Ambrish. three and balance, that forward So this as makes buckets sort that high of finding if sort XXs sense act, all balancing to

Ambrish Srivastava

you does. what said, on have I year. correctly, it booked had Dean? visibility. XX% that, I If a a It Is Yeah. full the heard follow-up for you said you the

Dean Butler

we what That's Yeah. said.

the We for booked have That's XX% better full right. or year.

Ambrish Srivastava

there long-term just so would characterize or we're from obviously hearing isn't with about what compare visibility just How long-term terms many would there How for -- Thank agreements in that because you. but have call years would importantly, us much by a non-cancelable or of of And been couple you you supply. it consider you be? covered companies more agreements? of enough is then, normal that

Michael Hurlston

Yeah.

around, I one, there So that think first in are several visibility. parts

business to have would much visibility. quarters quarters like four longer typically visibility one have we We close more to than the Typically two of would.

extended we've sort lead to from that lead has extended the to right everyone give times play of visibility. with our And us course, of forced additional of asked sort times And nicely. customers suppliers,

combined have everybody And a is of that trajectories sort of set forecasting.

ability around supply comes good to of sort around And a cetera, supply, cancellability engaged and subset our need. a see into of win with to the backlog they behest on one et your enter suppliers our design getting longer-term with limitation of a our other customer's agreements, amount in have at customers secured We the our We've their customers really ramps collaborated backlog of the the on they then, behalf. that cancel some or reschedule. actually

is everyone's where customers and supply some do to can. get of to are accelerated sort only allowed what limitation clamoring also are contractually, So not actually there trying around but we

the have. good about coverage the feel we visibility pretty So we that and

Ambrish Srivastava

Thanks for the details Great all guys. thanks.

Michael Hurlston

Thanks, Ambrish. Yeah.

Operator

are Thank you. questions. There no further

may You continue.

Michael Hurlston

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

Operator

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

disconnect. may now You

Synaptics (SYNA) 6 Aug 212021 Q4 Earnings call transcript