Synaptics Q2 2009 Earnings Transcript

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2009-07-31 01:14:00.0

Tags: Synaptics Inc., Growth, Smart Phone, Keyboards, Smart Phones, Cellular Phones, Handhelds, Monitors & Displays, Hardware, Peripherals, Consumer Electronics, Personal Technology, Components, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, sir. Ladies and gentlemen, we'll now begin the question and answer session. (Operator Instructions). And our first question comes from the line of John Vinh, please state your company name followed by your question.

John Vinh - Collins Stewart

Hi, it's John Vinh, Collins Stewart. First question I have for you guys is, you've talked about first half of 2010 being flat, I would anticipate that with the significant growth in the smartphone market that you'd still see growth there despite some macro headwinds. I was wondering if you could maybe comment on what your assumptions there and maybe reconcile kind of the flat growth with sort of the strong growth in smartphones. Are there some product push-outs, share loss that's impacting your guidance there in the first half?

Tom Tiernan

Yes John actually in that space -- in the smartphones and mobile we remain quite bullish. In the context of the first quarter as was mentioned in the prepared remarks, we expect continued good growth on a year-to-year basis there. We do have a bit of a tough compare in the second quarter fiscal quarter of the year given some very, very strong ramps that we had in the previous year. But the numbers that we're projecting overall for the entire fiscal year with a lot of growth coming in the second half reflect a very strong adoption, continued adoption of capacitive touchscreen technologies and Synaptics solutions in these customer accounts.

John Vinh - Collins Stewart

And then your a follow up in your outlook, slightly you were kind of below consensus, is there any further impacts from maybe customer product delays or any sort of share loss that's impacting that?

Tom Tiernan

Well, what we see is the competitive landscape really hasn't changed. Whenever you see our market position remaining quite strong and we continue to win more than our fair share of designs, in terms of the profile of our revenue associated with that category over the coming four quarters, we are taking into account, of course, all the design wins that we do have in the current schedules and forecast that our OEM customers are providing to us. And overall, when you look at the numbers we've put together for the year, we're still being a bit cautious, given all the macroeconomic uncertainty. That does exist still out there across both categories, both notebooks and handsets.

 

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