08-26-2017, 01:06 AM
The company has already designed a workable chip that integrates the fingerprint sensor within the display, which is why it has been tipped to land a spot in the next iPhone. While a win at Apple would definitely be a big deal for the chipmaker, investors shouldn't be fixated on it as there's still a lot of opportunity outside of Cupertino. TDDI chip demand will hit 100 million units this year, and then keep growing to more than 650 million units by 2022. This is a big opportunity for Synaptics as it is the only one among the three big companies making TDDI chips to have licensed its intellectual property to third-party providers. Apple is the other company said to be developing such a solution, though it is likely that Cupertino will keep its technology. The third company, Japan Display, could face difficulty in selling its TDDI technology to panel makers. Japan Display makes display panels, so there's a chance that rival panel makers will refrain from using its technology, as pointed out by supply chain portal EBN.
Is Synaptics’ 26% Drop an Opportunity or a Red Flag? -- The Motley Fool
On Dec. 13, Synaptics announced it would start sampling its R66452 DDIC "in the coming weeks." The company claimed the chip "includes [Synaptics'] best-in-class imaging processing and adds new state-of-the-art display technologies specifically designed to enhance OLED display." The company had previously indicated that it was on track to begin sampling OLED DDICs by the end of the year, so things appear to be progressing as planned. The press release also says the company plans to begin full production of this chip during the second half of 2017 "to meet the introduction of next-generation OLED smartphones." Circling back to Synaptics' most recent earnings call, Bergman said there is usually a six-to-nine month gap between sampling and production shipments, suggesting it'll still be some time before Synaptics is bringing in real revenue from OLED DDIC sales.
Synaptics, Incorporated Talks OLED Versus LCD Tech -- The Motley Fool
Thanks to the sales leverage, and a lack of impairment and restructuring costs, Synaptics has returned to profitability again. The company posted a net profit of $17.8 million for the final quarter, versus a $7.1 million loss in Q4 of 2016. Earnings for the entire year were down from $72.2 million to $48.8 million, for GAAP earnings of $1.37 per share. While GAAP earnings were down from $1.91 per share in 2016 to $1.37 per share in the fiscal year of 2017, Synaptics posted adjusted earnings of $4.88 per share. This marks a huge discrepancy between both accounting metrics. Key drivers behind the discrepancy are acquisition-related costs of $1.70 per share, share-based compensation expenses of $1.74 per share and some restructuring and litigation reserve settlement charges.
Synaptics - Second Warning In As Many Months - Synaptics Incorporated (NASDAQ:SYNA) | Seeking Alpha