The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kevin Cassidy - Rosenblatt Securities Inc. - Analyst
: Yeah, thanks for taking my question and congratulations on the good results. And also, welcome, Ken. Looking forward to working with you again.
Question: Kevin Cassidy - Rosenblatt Securities Inc. - Analyst
: You mentioned that enterprise -- spending is down, but the inventory has been cleared out. I'm wondering if you're hearing of any spending
coming up, maybe starting in the new year, anything that would be related to the video interface revenue. It seems that was strong growth for a
few years, just like -- I think that would be positive also, just to make sure it would be positive for gross margin also.
Question: Kevin Cassidy - Rosenblatt Securities Inc. - Analyst
: Okay. Great. Thanks for that answer. And also, you mentioned the AI PC is being a growth driver. And just wonder if you have any more exposure
between the ARM-based AI PCs or x86, or are you neutral on that?
Question: Quinn Bolton - Needham & Company, LLC - Analyst
: Sorry, guys, I was on mute. I was going to say I just wanted to echo my congratulations, Michael; and welcome Ken to Synaptics. I guess you guys
have had some momentum on the core IoT business, mostly driven by wireless. I think in the script, Michael, you said you expected that business
to be lumpy but to still grow double digits as you come into next year. I guess looking at the ramp off the bottom, double digits could actually --
if it's low double-digit might actually imply some declines on a sequential basis.
And so wondering if you might be able to give us some thoughts on sequential growth rates in that business. I know you said it's lumpy, but would
you expect the trend still to be up generally on a quarter over quarter basis?
Question: Quinn Bolton - Needham & Company, LLC - Analyst
: Got it. Perfect. And then, I guess, maybe just following up on the last question about the enterprise, the video interface, the PC business. How
important or how significant of a driver do you think in AI PC upgrade cycle would be? Do you think that it would pull through a lot of the video
interface? Do you think it would just be primarily on the PC side, the touchpads and fingerprint sensors? Just can you give us your latest thoughts
on how much you might benefit from an AI PC upgrade cycle, and I'm probably thinking that happens more next year than second half of calendar
'24. But I would love your latest thoughts.
Question: Jason Getz - Mizuho Securities Co., Ltd - Analyst
: You mentioned on the IT budgets reset in November and December those preliminary conversations you have with customers. Just wondering
what kind of impressions are you getting on those budgets for next year? Do you think that they could maybe be stretched to include some more
enterprise spend? Or do we need to see a pullback in that AI spend before enterprise can return?
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AUGUST 08, 2024 / 9:00PM, SYNA.OQ - Q4 2024 Synaptics Inc Earnings Call
Question: Jason Getz - Mizuho Securities Co., Ltd - Analyst
: Got it. Thanks. And then maybe a little bit of a follow-up question on the gross margin side. I guess that mix is a big piece of it. But as we are kind
of getting back to that enterprise demand, do you see any levers that are more in your control that can help get a little bit of improvement as you
track towards the 57%? Maybe something like pricing or just some of the more costs can come out? Anything that could create some upside there?
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