Synaptics Inc at Wells Fargo TMT Summit (Virtual) Transcript

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

Question: Gary Mobley - Wells Fargo Securities - Analyst : But perhaps I could turn it over to Dean. And I wanted to start by asking you about all the different transitions the Company has gone through over the past couple years, which include both organic moves in investments and inorganic moves. I was perhaps hoping that you could give us an overview in terms of product mix and market mix, and perhaps what is most misunderstood regarding the Company, given all these changes that are taking place over the last couple years.

Question: Gary Mobley - Wells Fargo Securities - Analyst : Appreciate that overview. And from an outsider looking in with fresh eyes, I could see that this is starting to manifest in the form of a higher rerating for your shares, perhaps approaching the valuation multiples at some of your IoT peers, like Silicon Labs and Semtech, are fetching on their IoT businesses. And as you pointed out, you've actually got a business equal to or larger than a couple of those companies. But what I'm curious on the IoT front is how you established this position. If I recall correctly on the combo connectivity side, Bluetooth and Wi-Fi in particular, you have an acquisition and a licensing arrangement with Broadcom. But how did you move into these combo solutions that include Zigbee, Thread, and some of the other short-range unlicensed wireless technologies?

Question: Gary Mobley - Wells Fargo Securities - Analyst : Sure. I appreciate that additional color. And that's a good transition to my next question, and that is, how you see your IoT product portfolio evolving. To what extent does the evolution and the roadmap involve general-purpose embedded compute, like I think some microcontroller functionality and related to that, maybe some various different types of sensing so that ultimately, you can transition from being primarily a RF transceiver company to be more of a module-oriented company?

Question: Gary Mobley - Wells Fargo Securities - Analyst : Okay. Related to that, what type of relationships do you have with the established embedded -- general-purpose embedded MCU players? And then related to that, do you see them perhaps adding the capability -- their own capability for IoT connectivity and, thus, capping your potential growth as a pure IoT connectivity company?

Question: Gary Mobley - Wells Fargo Securities - Analyst : Okay, appreciate that. And let me transition to the mobile business. I know it's not core to your future growth, but maybe if you can give us sort of

Question: Gary Mobley - Wells Fargo Securities - Analyst : Okay. I wanted to switch gears and talk about a situation that characterizes the entire semiconductor industry, and that's supply chain constraints. What are the constraints that Synaptics is dealing with? How are you trying to solve them? Where is supply the tightest and is the situation getting better?

Question: Gary Mobley - Wells Fargo Securities - Analyst : Okay. More or less, you have two goalposts moving. One on each side of the field, the demand and the supply picture, from what I picked up from you.

Question: Gary Mobley - Wells Fargo Securities - Analyst : It sounds like -- so like the gap between demand and supply still remains fairly high. And related to that, I believe you are guiding for 9% sequential revenue growth for the December quarter. And I presume that's indicative of the demand that you are talking about but also more supply coming online. Assuming your backlog doesn't change from where you ended in the September quarter, and assuming you can get more available capacity, have you done any analysis on how many consecutive quarters you can string sequential revenue growth together to catch up with that demand? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 01, 2021 / 3:40PM, SYNA.OQ - Synaptics Inc at Wells Fargo TMT Summit (Virtual)

Question: Gary Mobley - Wells Fargo Securities - Analyst : Okay. I wanted to ask you about your pending acquisition of DSP Group: where that stands; where the product synergies primarily exist; and then as well, if you want to expand as well on the cost synergies; how you see that acquisition playing out for you guys.

Question: Gary Mobley - Wells Fargo Securities - Analyst : Appreciate that. I want to conclude with just asking about your opportunities in the automotive market. How big is it today for you? What can it be, and what gets you there?

Question: Gary Mobley - Wells Fargo Securities - Analyst : Okay. I think we are out of time. And so with that, Dean and Munjal, I want to thank you again for joining us here and participating in our TMT Conference. And I hope the rest of your day is productive. And again, thank you, everybody, who joined us for this fireside.