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: John Vinh - KeyBanc Capital Markets - Analyst
: Sure. So why don't we obviously start with IoT, right? It seems like on the IoT front, consumer IoT's demand has started to stabilize, but you're
starting to see much more destocking and more inventories on the enterprise IoT side. So I'm wondering if you could just talk about the application
areas in each of these segments where there's the most amount of inventory. Is this mostly related to the DisplayLink franchise or something else?
And then conversely, maybe on consumer, would you say channel inventories are back to normal?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: So it sounds like most of that excess inventories can be cleaned up, hopefully by the end of this calendar year. And then by June, it is kind of the
goal or where you're thinking you're actually going to be shipping to end demand?
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AUGUST 07, 2023 / 7:00PM, SYNA.OQ - Synaptics Inc at KeyBanc Technology Leadership Forum
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Okay. Maybe we can talk about the Wi-Fi agreement with Broadcom. You talked about providing you with access to Wi-Fi 7, Bluetooth, and allowing
you to pursue this lower power Wi-Fi market opportunity. Can you just talk a little bit more about this segment of the market, how big is this market
from a TAM perspective compared to the high performance Wi-Fi market that you're focusing on today? And then how does it compare from a
competitive perspective?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Great. So with this newly signed agreement, given your Wi-Fi 7, opportunity to go after this broader base market and this inventory pressure going
through, what are your updated thoughts on the timing of this $1 billion IoT target?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Right. That makes sense. You also mentioned, as part of this deal, you're getting access to Bluetooth. That seems to be a market where you've got
a little bit more staunch incumbents in Silicon Labs or Nordic. Can you just talk about what the opportunity you see there is? Is this going to be a
standalone Bluetooth opportunity for you or is it mostly combo?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Great. Are there any questions.
Unidentified Participant
(inaudible)
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AUGUST 07, 2023 / 7:00PM, SYNA.OQ - Synaptics Inc at KeyBanc Technology Leadership Forum
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Speaking of -- what's the latest on triple combo? Where do you stand on that entitlement and design wins? When does that start generating
meaningful revenues for you?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: What's the resolution on it? Are you going to tape out another triple combo ship at a lower process geometry at a better cost point or what's kind
of the --
Question: John Vinh - KeyBanc Capital Markets - Analyst
: -- that it can be at 28?
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AUGUST 07, 2023 / 7:00PM, SYNA.OQ - Synaptics Inc at KeyBanc Technology Leadership Forum
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Okay. Great. You had mentioned autos, maybe seeing a little bit of pricing pressure there. That was a nice market that you are getting good traction
with TDDI. What's your strategy there to deal with this pricing pressure going forward?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Have you secured wins thus far on SmartBridge? Or is that still a product that you're still taping out and sampling at this point?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Okay. Maybe on the PC front, it sounds like inventories have normalized for you guys there. How should we think about your PC business going
forward? Are you going to be tracking the market? Or are there still content growth opportunities for you to maybe outperform the PC market by
a little bit?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Right. Similar question on mobile. What are the drivers of your mobile business going forward? Sounds like that's back to normal, but I know you
did talk about a legacy headwind at iOS. So how do we think about mobile going forward?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Maybe on gross margins, gross margin sounds like it's been impacted by mix. But I've got to imagine there's a pricing component there. So maybe
just talk about the pricing environment right now, and what gives you the confidence that you're going to be able to get back to your target gross
margins of 57% once things normalize here?
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AUGUST 07, 2023 / 7:00PM, SYNA.OQ - Synaptics Inc at KeyBanc Technology Leadership Forum
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Great. Maybe last question for you, Michael, is -- you've been really active on the M&A front. But obviously, we're going through a downturn here,
which is probably going to take it out off the table for some time. But once things start to normalize again, what are your updated thoughts on
M&A going forward?
Question: John Vinh - KeyBanc Capital Markets - Analyst
: Great. Looks like we're out of time. Thank you, Michael.
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