Synaptics Q1 2016 Earnings Reflect Mobile Market Demand

Synaptics Q1 2016 Earnings Reflect Mobile Market DemandUser interface developer Synaptics has reported its results for the latest fiscal quarter. The quarter saw a 66 percent increase in net revenue compared to the same quarter last year.

That means the company brought in $470 million in net revenues for what is actually the first quarter of Synaptics’ fiscal year. Q1 2016 also saw a net income of $23.8 million for the company.

About 88 percent of Synaptics’ revenues for the quarter came from its mobile business operations, while PC products contributed only 12 percent. And those trends are strengthening: Mobile revenues, at $412.1 million, were up 106 percent over Q1 2015, while PC products’ contributions, at $57.9 million, were down 30 percent compared to a year ago.

That may reflect broader trends in the consumer electronics industry; business is certainly booming across the board with respect to smartphone fingerprint sensors, of which Synaptics is a supplier. In any case, Synaptics’ latest products are certainly cater to the mobile market, with additional automotive applications.

Looking ahead, Synaptics CFO Wajid Ali forecasts “revenue in the December quarter to be in the range of $460 to $500 million, with the revenue mix from mobile and PC products roughly similar to the preceding quarter,” adding that with careful management of operating expenses the company will “drive incremental earnings results in the December quarter relative to expected top-line performance.”