Synaptics Incorporated reported its financial results for the three months ended September 28, 2024, showing a net revenue of $257.7 million, an increase of 8.4% from $237.7 million in the same period of 2023. This growth was driven by strong performance in the Core IoT product applications, which generated $59.6 million, up 54.8% from $38.5 million a year earlier. Mobile product applications also saw an increase, contributing $50.5 million, compared to $44.4 million in the prior year. However, revenue from Enterprise and Automotive applications decreased to $147.6 million, impacted by a decline in units sold despite higher average selling prices.

The company's gross margin improved to $120.9 million, reflecting a gross margin percentage of 46.9%, up from 45.1% in the previous year. Operating loss for the quarter was $(28.4) million, an improvement from $(35.2) million in the same period last year. The net loss narrowed significantly to $(23.1) million, compared to $(55.6) million in the prior year, resulting in a net loss per share of $(0.58), up from $(1.43).

Total current assets decreased to $1,139.9 million from $1,162.3 million in June 2024, while total assets also fell to $2,791.2 million from $2,825.0 million. Cash and cash equivalents were reported at $853.6 million, down from $876.9 million in the previous quarter. The company recorded a net cash used in operating activities of $(11.4) million, a stark contrast to cash provided by operating activities of $45.4 million in the same period last year.

Synaptics incurred approximately $16.0 million in restructuring charges, primarily related to severance and employee-related benefits, with total restructuring costs for the quarter amounting to $14.2 million, up from $8.0 million in the same period of 2023. The company also recognized $12.6 million in revenue related to contract liabilities, a significant increase from $2.4 million in the prior year.

In terms of strategic developments, Synaptics paid $130.0 million to Avago Technologies to license four developed technology products, extending the exclusivity period for certain technologies. As of September 2024, the company had control of three of the four licensed technology products, with one remaining under advance payment status valued at $42.5 million.

Overall, Synaptics continues to navigate a challenging economic environment, with expectations of a potential rebound in demand anticipated in late calendar 2024.