Synaptics (NASDAQ: SYNA), a components provider for devices and once a $100 stock, is on the decline again. After the market close on Friday, March 15, the company said that the CEO would leave. Synaptics also cut its outlook.
Synaptics issued a third-quarter revenue forecast of $340 million - $380 million. EPS will range widely at $0.70 - $1.00. In February, the company met its Q2 revenue forecast of $410M-$440M and EPS of $1.25 - $1.55.
The outlook for the human interfaces component supplier is a disappointment. In Q2, the company reported six straight quarters of non-GAAP gross margin. It was developing low-powered OLED DDIC solutions and sampling 22nm IoT solutions.
Though Synaptics won a deal to power next-gen TV services to four million customers, its fingerprint ID for notebooks sales likely stalled. Q2 revenue fell 1% Y/Y but the mix of sales in mobile held 65%. PC markets will account for 15% and 20% for IoT.
Takeaway
SYNA stock has no growth momentum. The uptrend that began last November is at an end. After failing to get bought out twice, the CEO’s exit and CFO leaving previously may set the stage for the company to find a buyer. It will still need to grow its IoT business in the interim.
