Synaptics Inc at JPMorgan Global Technology, Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Peter Peng - JPMorgan - Analyst : Okay. Why don't we just kind of start with the near-term stuff because that's been kind of more topical and at the top of investors' mind. Your first half revenue is better than expected, right? And you're seeing signs of continued traction, but some could argue that this is driven by some of these pull-in ahead of the expiration of the 90-day reciprocal tariff reprieve. So maybe if you can walk us through the process of how you differentiate between pull-ins and genuine order improvements.

Question: Peter Peng - JPMorgan - Analyst : Great. It's encouraging to see the team beginning to build good visibility into the September quarter. How would you describe the customer discussion and how they have evolved since Liberation Day in early April?

Question: Peter Peng - JPMorgan - Analyst : Got it. And one more near-term question for you. So current fundamentals, it sounds like it's pretty strong, positive booking trends, lean customer inventories, strong sell-through activity. I think that said, there's kind of a lot of uncertainty. So just considering these two factors, how is the team thinking about the second half of the year?

Question: Peter Peng - JPMorgan - Analyst : Okay. Just on the longer term, your design win pipeline, I think that's a good reflection of what the long-term revenue growth could look like, right? Last year, your core IoT funnel grew at a rate of 30% year-over-year. Have you continued to see that strength into 2025? And maybe on that, can you just kind of rank the top three or four end markets where you're seeing the strongest design activity?

Question: Peter Peng - JPMorgan - Analyst : Got it. Why don't we just kind of touch on some of those specific growth drivers that you mentioned in your core IoT. So with the Wi-Fi 7 upgrade cycle, the ASPs is significant increase versus your Wi-Fi 6 or 6E. So as you kind of evaluate your design win pipeline, how should we kind of anticipate the customer adoption curve over the next, call it, 12 months?

Question: Peter Peng - JPMorgan - Analyst : Okay.

Question: Peter Peng - JPMorgan - Analyst : And then just regarding your Astra IoT compute platform, you have an early mover advantage and you guys previously disclosed a $300 million pipeline and your recent commentary from your earnings call suggests the momentum continues to be strong. Maybe if you can provide some details on what kind of applications are getting designed. And if you have any updates on the pipeline?

Question: Peter Peng - JPMorgan - Analyst : Perfect. Let me just stop here and see if there's any questions. Okay. And then the other big growth driver is the broad market. You successfully leveraged your high-performance wireless technology into more power-optimized solution with the launch of your broad market chip. Maybe if you can provide some insight into the initial applications that you're ramping up with this new solution.

Question: Peter Peng - JPMorgan - Analyst : You have traditionally been very focused on the consumer segments of IoT, right? But you possess all the technologies that can be leveraged into other vertical end markets like industrial and so forth. Maybe if you can discuss some of the go-to-market initiatives and how the team plans to replicate the success in consumer IoT to other end markets.

Question: Peter Peng - JPMorgan - Analyst : Great. Moving on to your Enterprise and Automotive segment, right? In your notebook PC, you have some content step of your user presence detection technology. You're ramping up with your lead customer appears to be making pretty good progress with the second OEM. The content lift is approximately like $3 to $4. Maybe you could just talk about or help us understand what the -- your expected attach rate over the next several years for the computers for this presence detection technology and how you think about the revenue opportunity?

Question: Peter Peng - JPMorgan - Analyst : Got it. And then within your enterprise segment, you also have the stuff that's kind of leveraged to your traditional enterprise IT budgets like your docking station, your enterprise audio headsets and those segments have improved, but they're still kind of 30% to 40% below the peak levels of 2019. I understand that enterprise IT budgets are constrained given the reprioritization to AI. But is there anything structurally that would prevent you from returning to those 2019 revenue levels?

Question: Peter Peng - JPMorgan - Analyst : And then your final segment, your Smartphone segment. The iOS headwind is finally away. And so now you're really just concentrated on the high-end Android space. You are introducing your next-generation touch controllers, which offers lower power consumption and lower latency. And maybe if you can just give us -- provide some expectations on how this might actually accelerate your revenue growth and either through new share gains or content step-up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 1:30PM, SYNA.OQ - Synaptics Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Peter Peng - JPMorgan - Analyst : Got it. It's exciting time for Synaptics. We talked about so much new product cycles. Maybe if you could just kind of tie it all up and just help us understand how over the next 12, 18 months as these new product cycles begin to ramp, how that begins to layer into your top line revenue?

Question: Peter Peng - JPMorgan - Analyst : Gross margin implications of all these new products, how does that -- are these richer mix? How does that play into the gross margins?

Question: Peter Peng - JPMorgan - Analyst : Perfect. With that, that ends the session.