Synaptics (SYNA, Financial) is on a solid run in 2014. The stock has liked 14% so far this year as its touchscreen and finger impression ID solutions have discovered their route into Samsung's (SSNLF, Financial) latest Galaxy flagship smartphone. Synaptics is also picking up force at the expense of other key customers such as Nokia and Chinese smartphone companies.
Determined by its impressive item advancement, Synaptics' business is doing great as clear from its second from last quarter results. Additionally, its viewpoint indicates that the execution can enhance further. We should investigate Synaptics' late results and see why it is a decent purchase for the long run.
Robust execution
Synaptics' revenue hopped an impressive 25% to $204.3 million in the second from last quarter, fundamentally determined by the reception of its finger impression ID solutions. The organization expects revenue for the June quarter to be in the scope of $275 million to $295 million on the once again of strong sequential development across its item portfolio. This will be an increase of 20% to 28% over the former year quarter.
Synaptics has significantly increased the standpoint for its finger impression business, and joined with solid development in its center touch platforms, it expects to post stellar results going ahead.
Products picking up footing
Synaptics is making various moves to increase customer engagement and pull in new clients. Its presence at the Mobile World Congress in Barcelona not long ago drove a significant number of corner tours and profitable accomplice meetings. The organization displayed several cutting edge solutions for both touch and unique mark.
In any case, the most prominent customer win for Synaptics is Samsung. Its Cleartouch innovation is constantly used to drive the touch interface for the Galaxy S5. With this solution, its also empowering a host of included features in the gadget.
Exceptionally, Synaptics is the first organization to power the touch interface in consecutive versions of the Samsung flagship. This indicates the effectiveness and prominence of the organization's solutions. Also, the Galaxy S5 is encountering strong request across the world. It has officially sold a greater number of units than the Galaxy S4 in its first month with 11 million units. So, there is a possibility that Samsung may need to deliver more units as the gadget has performed in front of its expectations. This will result in more interest for Synaptics' solutions.
Synaptics may see more development going ahead as the business sector for biometric solutions in cell phones is quickening. The organization is exceedingly captivated with its OEM partners in various programs and developments in the newest line of sensor products.
Impressive item advancement will prompt more development
Synaptics' research teams are advancing its character solutions to new levels of usability and security. The organization has been growing its item portfolio with simplified gadget coordination and cost-compelling biometric platforms.
Moreover, its Clearpad solutions are also picking up footing with Nokia's Windows 8.1 phones that are required to start shipping this quarter. Synaptics is giving its solutions to the flagship Lumia 930 for the 5-inch clear dark screen. Clearpad solutions will also find their route into the Lumia 630 and 635 financial plan phones implied for the developing markets. The Asha 230 passage level full touch cellular telephone will also assume a part in upgrading Synaptics' revenue.
For bigger screens, it has kept on growing its tablet and touchscreen customer base at real Oems in the course of the last year with the Clearpad 7500 group of Windows 8.1 affirmed solutions with dynamic stylus support.
Also, Synaptics is seeing strong interest for display-incorporated solutions. Its OEM and display partners are searching for cost-successful solutions to convey more slender, lighter, more responsive phones with bigger and brighter displays. Display reconciliation solutions represented more than 40% of its portable shipments in the previous quarter, and this rate is relied upon to increase about whether.
Synaptics is also developing its presence in China. It is attempting to grow its infiltration through the selection of its single layer on-cell for passage level smartphones.
Takeaway
Synaptics is profiting from the reception of its solutions by distinctive customers across the globe. Its item development is strong, and presence in both top of the line and plan smartphones will keep driving its development later on. Investors should investigate Synaptics as it could end up being a decent long haul investment.
