Synaptics Incorporated (SYNA) has reported 34.86 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $22.80 million, or $0.64 a share in the quarter, compared with $35 million, or $0.93 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $53.40 million, or $1.49 a share compared with $60.30 million or $1.60 a share, a year ago.
Revenue during the quarter went down marginally by 1.96 percent to $461.30 million from $470.50 million in the previous year period. Gross margin for the quarter contracted 504 basis points over the previous year period to 30.07 percent. Total expenses were 93.76 percent of quarterly revenues, up from 90.37 percent for the same period last year. That has resulted in a contraction of 338 basis points in operating margin to 6.24 percent.
Operating income for the quarter was $28.80 million, compared with $45.30 million in the previous year period.
However, the adjusted operating income for the quarter stood at $60.50 million compared to $73.70 million in the prior year period. At the same time, adjusted operating margin contracted 255 basis points in the quarter to 13.12 percent from 15.66 percent in the last year period.
"We are pleased to report solid results for the second fiscal quarter," stated Rick Bergman, president and chief executive officer. "We saw several positive developments during the period including continued traction for our TDDI and fingerprint sensing solutions; the expansion of our biometrics portfolio with optical technology and our multi-factor biometric fusion engine; the introduction of our first display driver solution for OLED-based smartphones, which is now sampling to customers; and significant progress towards our in-display integration roadmap. We are benefitting from the investments we have made in key growth areas, strengthening our market leading position and expanding our customer base."
Operating cash flow drops significantly
Synaptics Incorporated has generated cash of $52.40 million from operating activities during the first half, down 50.94 percent or $54.40 million, when compared with the last year period.
The company has spent $28.60 million cash to meet investing activities during the first six months as against cash outgo of $18.90 million in the last year period.
The company has spent $26.90 million cash to carry out financing activities during the first six months as against cash outgo of $116.10 million in the last year period.
Cash and cash equivalents stood at $347.20 million as on Dec. 31, 2016, up 6.02 percent or $19.70 million from $327.50 million on Dec. 31, 2015.
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