October 29, 2008 at 3:42 PM
Posted by Thomas Catino
Last Thursday, Synaptics Inc. (SYNA), a developer of touchscreen computing solutions, announced net income for the first quarter of fiscal 2009, excluding non-cash charges for share-based compensation of $.50 per diluted share on revenue of $17.9 million, beating the consensus estimate of $.44. And in a market where considerable doubt is placed on the business outlook, Synaptics delivered good guidance in a tough environment. Despite noting shifts in order pattern suggesting some cautiousness from OEM customers, CFO Knittel put December revenue guidance in a range of $135 to $145 million thanks in part to a backlog that increased by two-fold to $103 million and upped fiscal 2009 revenue growth to a range of 25% to 35%, up from 20% to 30%. Yet for all that, the share price has declined and faced significant multiple contraction even though Synaptics guided higher and analysts have likewise continued to revise their estimates upward. It’s just one instance in a brutally harsh market where valuations have become disconnected from fundamentals.
Source: Capital IQ Research, Yahoo Finance
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