Synaptics Incorporated, a leading worldwide developer and fabless supplier of premium mixed signal semiconductor solutions, has recently released its 10-K report for the fiscal year ended June 29, 2024. The company specializes in developing touch, display, biometrics, voice, audio, processor, wireless, and multimedia products for various applications, including mobile, personal computers, smart home, industrial, and automotive. Synaptics also offers modular development kits, open software frameworks, and optimized AI/ML toolchains. The company's net revenue for fiscal 2025 increased by 12% to $1,074.3 million compared to $959.4 million in fiscal 2024. This growth was primarily driven by strong execution in the Core IoT product category, with net revenue from Core IoT increasing by 53% to $272.4 million. The Enterprise and Automotive net revenue of $610.1 million increased by 7%, while Mobile net revenue of $191.8 million decreased by 9%.
During the fiscal year, Synaptics launched multiple products, expanding its product portfolios and accelerating its position in Edge AI and wireless connectivity through partnerships and licensing transactions. The company also executed an agreement with Broadcom to acquire certain assets and obtain non-exclusive licenses relating to Broadcom’s Wi-Fi technology. Synaptics acquired these assets to solidify its leadership position for end-to-end AI IoT connectivity. The company also introduced the S3930 touch controller, featuring multi-frequency-region parallel sensing and the industry’s smallest high-performance footprint.
Cash, cash equivalents, and short-term investments at the end of fiscal 2025 and fiscal 2024 totaled $391.5 million and $876.9 million, respectively. Synaptics' net total debt outstanding at the end of fiscal 2025 was $834.8 million compared to $972.9 million at the end of fiscal 2024. During fiscal 2025, the company returned $128.3 million to shareholders through the repurchase of approximately 1.8 million shares. Additionally, a new repurchase program of $150.0 million was authorized with no expiration date.
Synaptics is exposed to and impacted by global macroeconomic factors, U.S. and foreign government policies, and foreign exchange fluctuations. A substantial portion of the company's revenue is derived from customers located in international markets, especially in the Asia-Pacific region. The company continues to monitor changes in international trade policies, particularly increased tariffs and other barriers or restrictions between the United States and other countries, including China.
In fiscal 2025, Synaptics achieved revenue growth with net revenue increasing 12% to $1,074.3 million compared to $959.4 million in fiscal 2024. The company's gross margin as a percentage of net revenue was 44.7% in fiscal 2025 compared with 45.8% in fiscal 2024. Research and development expenses increased to $346.8 million, and selling, general and administrative expenses increased to $180.3 million in fiscal 2025 compared with fiscal 2024.
Following these announcements, the company's shares moved 8.01%, and are now trading at a price of $71.63. For more information, read the company's full 10-K submission here.
