Q1’22 Financial Results and Recent Business Highlights

• Revenue of $372.7 million
• IoT revenue increased 70% YoY
• Record GAAP gross margin of 53.2 percent
• Record non-GAAP gross margin of 58.0 percent
• GAAP diluted earnings per share of $0.99
• Record non-GAAP diluted earnings per share of $2.68
• GAAP operating margin of 16.3 percent
• Record non-GAAP operating margin of 34.2 percent

SAN JOSE, Calif., – November 4, 2021 – Synaptics Incorporated (Nasdaq: SYNA), today reported financial results for its first quarter of fiscal year 2022 ended September 25, 2021.

Net revenue for the first quarter of fiscal 2022 was $372.7 million. GAAP net income for the first quarter of fiscal 2022 was $40.2 million, or $0.99 per diluted share. Non-GAAP net income for the first quarter of fiscal 2022 was $108.7 million, or $2.68 per diluted share.

“Synaptics delivered a strong start to our fiscal year 2022 with first quarter revenue above the mid-point of our guidance, non-GAAP gross margin at the highest level in the company’s history, and non-GAAP operating margin hitting another record. We are seeing continued adoption of our technologies across all end markets and our pipeline of design-wins remain solid. Our diversification strategy is yielding results as we see strong demand for our IoT portfolio, which is now 55% of our first quarter revenue.” said Michael Hurlston, Synaptics’ President and CEO.

Business Outlook

Dean Butler, Chief Financial Officer of Synaptics, added, “For our second quarter of fiscal year 2022, we expect our revenue momentum to continue and profitability to remain strong. We anticipate continued demand strength for our IoT products to drive the mix even higher. Our backlog remains strong with customer demand continuing to outpace supply availability; we have once again factored in the current semiconductor supply chain constraints into our December quarter guidance.”

For the second quarter of fiscal 2022, the company expects:

*Projected Non-GAAP gross margin excludes $17 million of intangible asset amortization, and $1.0 million of share-based compensation.

**Projected Non-GAAP operating expense excludes $32 million to $34 million of share-based compensation, $2.5 million of prepaid development amortization, $1 million of restructuring costs, $1 million to $3 million of acquisition related costs, and $7.7 million of intangible asset amortization.

Earnings Call and Supplementary Materials

The Synaptics first quarter 2022 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, November 4, 2021, during which the company will provide forward-looking information.

Speakers:

• Michael Hurlston, President and Chief Executive Officer
• Dean Butler, Chief Financial Officer

To participate on the live call, analysts and investors should dial 833-614-1539 (conference ID: 9484096). Supplementary slides, a copy of the prepared remarks, and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s Website at https://investor.synaptics.com/.