Synaptics Delivers Strong Q1 FY25 Performance, Exceeding Midpoint of Revenue Guidance with 8% Year-over-Year Growth
San Jose, CA – November 7, 2024 – Synaptics, a leading provider of human interface and IoT products, today reported strong financial results for its first quarter fiscal year 2025. The company's revenue increased by 8% compared to the same period last year, exceeding the midpoint of its guidance range.
"We delivered very solid performance this quarter," said Michael Hurlston, Synaptics' President and CEO. "Our Core IoT product sales were up 55% compared to the prior year, driven by continued strength in wireless and processor products."
As reported by Michael Hurlston during the company's Q1 FY25 financial results conference call, Core IoT revenue growth was a key highlight of the quarter. The company's Core IoT funnel has grown nearly 30% since its last update a year ago, increasing from about $2.2 billion in September 2023 to over $3 billion today. This design pipeline supports a compounded revenue growth of 25% to 30% over the next 5 years.
Synaptics' wireless business also showed significant promise with progress made in broad markets, which require lower power and cost solutions. The company's first broad market chip is back from fab and on track to sample this quarter, allowing it to address a $3 billion opportunity for the first time. With its level of differentiation, Synaptics expects to build share in broad markets and establish a meaningful position over the next 2 years.
In high-performance Wi-Fi, Synaptics continued to build its position with new customer wins and market share gains. The pace of new wins accelerated, nearly doubling in number as compared to just 3 months ago, and spanned across a broad range of customers and applications.
The company's Astra products recently earned recognition from industry experts by winning the 2024 EDGE Awards in the Machine Learning and Deep Learning category. Synaptics' solutions are gaining market traction with its funnel growing $300 million in the quarter.
"Our profitability continues to improve with non-GAAP gross and operating margins higher compared to the prior quarter and year ago," said Michael Hurlston during the conference call.
Synaptics also reported strong EPS growth with non-GAAP EPS increasing 56% year-over-year. The company's management team highlighted the strength of its product pipeline, which they believe will drive future revenue growth and profitability improvement.
