Synaptics

This article is about the touchpad manufacturer. For other uses, see Synaptic (disambiguation).
Synaptics
Public
Traded as NASDAQ: SYNA
Industry Computer hardware
Founded California (1986)
Headquarters San Jose, California, USA
Key people
Federico Faggin, Co-founder
Carver Mead, Co-founder
Rick Bergman, CEO
Wajid Ali, CFO
Products TouchPad
TouchStyk
ScrollWheel
ClickPad
ClearPad
Synaptics Scrybe
ClearButtons
TouchButtons
Display Drivers
Natural ID
ForcePad
SecurePad
Revenue Increase $1.7 billion USD (2015) [1]
Increase $162.16 million USD (2015) [2]
Increase $112.3 million USD (2015) [3]
Number of employees
1,789 (2015)[4]
Website www.synaptics.com

Synaptics is a human interface solution developer and bases on touch, display and biometrics technologies for a large range of mobile computing, PC, entertainment and other consumer electronic devices. Customers include companies such as Acer, Amazon, Asus, Dell, Google, HP, HTC, Lenovo, LG, Microsoft, Nokia, Samsung, Sony, Sony Ericsson, Huawei, ZTE, BlackBerry and Toshiba. The products include touchpads, touchscreens, fingerprint ID and display integration technologies for devices including notebook PCs, PC peripherals, mobile devices, tablets and other consumer electronics.[5]

History

Synaptics was founded as a neural network research company in 1986 by Kevin J. Kinsella, Gary Lynch, Lauren Yazolino, Federico Faggin (co-inventor of the microprocessor) and Carver Mead (VLSI pioneer). The company began to apply semiconductor hardware design techniques to a computing technology known as neural networks.[6]

The company started shipping commercial products in 1995, with its flagship TouchPad interface for notebook PCs. The TouchPad is a touch-sensitive pad for notebooks or keyboards that senses the position of a user’s finger(s) on the surface to provide screen navigation, cursor movement, application control, and a platform for interactive input.

Synaptics went public in 2002 and is currently listed on the NASDAQ exchange. The IPO of 5 million common stock shares at a price of $11.00 per share received a 57% return at the close of Q1 2002.[7]

On November 7, 2013, Synaptics completed its acquisition of Validity Sensors, a fingerprint sensor vendor based in San Jose, CA.[8]

On June 10, 2014, Synaptics announced their acquisition of Renesas SP Drivers Inc., a Japanese company that specializes in chips that manage LCD displays. Synaptics purchased Renesas SP for approximately JPY48.5B ($475 million) for 100% of the company.[9]

Technology

Synaptics products are based on capacitive sensing technology, as opposed to resistive touchscreen technologies. Capacitive touch sensing works by sensing the electrical properties of the finger(s) touching the sensor; a resistive touchscreen senses direct pressure between two clear electrical layers that are separated by a small space, requiring an amount of force.[10] Capacitive touch sensing solutions are solid state, making them more robust than resistive solutions.
Synaptics's human interface solutions are currently based upon the following key technologies:


In addition to these technologies, Synaptics develop firmware and device driver software that are incorporated into products to provide features, such as virtual scrolling, customizable tap zones, PalmCheck, EdgeMotion, and tapping and dragging of icons.

Products

Synaptics touchpad

A touchpad is integrated into the majority of today's notebook computers. Synaptics' share for touchpads in the notebook PC market is in the 65-70% range.[11]

Some of Synaptics' products are listed below:

Sales & Marketing

Synaptics generate sales through direct sales employees as well as outside sales representatives and distributors. It maintains nine customer support offices domestically and internationally, which are located in the United States, Taiwan, China, Korea, Japan, and Europe. In addition, it utilizes sales representatives and sales distributors in China, Japan, and Taiwan.[18]

Manufacturing & Supply Chain

Synaptics's manufacturing operations are based on a variable cost model in which it outsource all of its production requirements and generally drop ship its products directly to its customers from its contract manufacturers’ facilities. This eliminates the need for significant capital expenditures and allows the company to minimize its investment in inventories.

The company provides its contract manufacturers with six-month rolling forecasts and issue purchase orders based on anticipated requirements for the next 90 days. It uses two third-party wafer manufacturers to supply wafers and four third-party packaging manufacturers to package its proprietary ASICs.

In certain cases, it relies on a single source or a limited number of suppliers to provide other key components of its products.[19]

Financial

Financial summary for fiscal 2010- 2014 is as follows (in thousands):

Financials 2010 2011 2012 2013 2014
Net revenue $514,890 $598,538 $548,228 $663,588 $947,539
Gross margin $208,702 $246,070 $255,567 $325,804 $436,080
Total operating expenses $146,579 $173,552 $187,999 $225,113 $363,594
Operating income $62,123 $72,518 $67,568 $100,691 $72,486
Net income $52,965 $63,796 $54,144 $98,933 $46,689

Net revenue within geographic areas based on customers’ locations for fiscal 2010-2014 consisted of the following (in thousands):

Geography 2010 2011 2012 2013 2014
China $389,499 $399,798 $353,522 $390,043 $449,431
South Korea $32,496 $24,523 $35,046 $102,840 $233,917
Taiwan $56,096 $76,631 $60,980 $84,380 $118,776
United States $430 $6,314 $5,179 $22,576 $93,783
Japan $35,838 $65,548 $65,129 $61,330 $45,039
Other $531 $25,724 $28,372 $2,419 $6,593
Total $514,890 $598,538 $548,228 $663,588 $947,539

Net revenue from external customers for each group of similar products for fiscal 2010-2014 consisted of the following (in thousands):

Product Applications 2010 2011 2012 2013 2014
Mobile product applications $209,153 $309,166 $270,106 $424,076 $689,866
PC product applications $305,737 $289,372 $278,122 $239,512 $257,673
Total $514,890 $598,538 $548,228 $663,588 $947,539

Acquisitions

Acquisitions & Diversities Date
Renesas SP Drivers, Inc 30 September 2014
Validity sensors 7 November 2013
Pacinian Corp 2 August 2012
NSM Technology 27 June 2003
Absolute sensors 8 November 1999

References

  1. "Revenue for Synaptics (SYNA)". Shareholder.com. 2015-07-30. Retrieved 2015-07-30.
  2. "Revenue for Synaptics (SYNA)". Shareholder.com. 2015-07-30. Retrieved 2015-07-30.
  3. "Revenue for Synaptics (SYNA)". Shareholder.com. 2015-07-30. Retrieved 2015-07-30.
  4. "Annual Report 2015" (PDF). Investors.com. 2014-02-07. Retrieved 2014-08-07.
  5. "Synaptics Annual Report;— Shareholder" (PDF). www.shareholder.com. 2009-08-20. Retrieved 2010-06-07.
  6. Markoff, John (1994-10-24). "Pad to Replace Computer Mouse Is Set for Debut — The New York Times". www.nytimes.com. Retrieved 2010-06-07.
  7. "Hoover's Quarterly IPO Analysis Now Available On Hoover's IPO Central — Hoovers Online". www.hoovers.com. 2002-04-01. Retrieved 2010-06-07.
  8. "Synaptics Closes Acquisition of Validity Sensors". www.synaptics.com. 2013-11-08. Retrieved 2014-06-17.
  9. "Synaptics Accelerates Mobile Display Leadership with Acquisition of Renesas SP Drivers". www.synaptics.com. 2014-06-10. Retrieved 2014-06-17.
  10. "Capacitive Touch   — Phone Scoop". www.phonescoop.com. 2010. Retrieved 2010-06-07.
  11. "UPDATE 2-Synaptics Q3 beats, sees strong Q4 profit — Reuters". www.reuters.com. 2010-04-22. Retrieved 2010-06-07.
  12. "Synaptics intros ClickEQ, multi-finger TouchPad-IS trackpad solutions — Engadget". www.engadget.com. 2010-05-31. Retrieved 2010-06-10.
  13. "LG Prada KE850 Touch Screen Phone officially launches  — UnwiredView". www.unwiredview.com. 2007-01-18. Retrieved 2010-06-07.
  14. . 2015-04-10 http://www.synaptics.com/en/natural-id.php. Missing or empty |title= (help)
  15. . 2015-04-10 http://www.synaptics.com/en/forcepad.php. Missing or empty |title= (help)
  16. . 2015-04-10 http://www.synaptics.com/en/securepad.php. Missing or empty |title= (help)
  17. "Synaptics Scrybe TouchPad software set to revolutionise PC interaction — Pocket-Lint". www.pocket-lint.com. 2010-01-04. Retrieved 2010-06-09.
  18. http://investor.shareholder.com/synaptics/secfiling.cfm?filingID=1193125-14-318722&CIK=817720
  19. http://investor.shareholder.com/synaptics/secfiling.cfm?filingID=1193125-14-318722&CIK=817720

External links

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