The following is a summary of the Synaptics Incorporated (SYNA) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Synaptics Incorporated reported Q3 revenue of $237.3 million, slightly exceeding company's guidance.

• The revenue was distributed across sectors with Core IoT accounting for 20%, Enterprise & Automotive for 57%, and Mobile for 23%.

• The company reported a non-GAAP net income of $21 million, reflecting a decrease of 7% from the last quarter and 72% from the same quarter a year ago.

• The gross margin was reported at 52.9% and the overall cash at the end of March was approximately $829 million.

• The company faced challenges in gross margin due to underperformance in the Enterprise & Automotive business, even as Synaptics did not see any margin benefits from the decrease in foundry manufacturing prices.

Business Progress:

• Growth in the IoT sector was propelled by the new Astra processor platform, marking the company's stride into AI-native IoT computing.

• High customer interest at Embedded World and multiple qualified leads have been reported for the Astra platform.

• IoT revenue has seen an increase of 26% compared to the last quarter.

• Several strategic partnerships with companies such as Audi, Chevy, Ford, Porsche, and Volkswagen in the Automotive industry are anticipated to boost the TDDI product line.

• The company plans the introduction of a new Wi-Fi 7 chip, likely to be the first IoT product of its kind.

• The company expects a significant growth with the rebound of enterprise and automotive markets, while its mobile business is projected to stay flat in fiscal '25, backed by wins in the Android market and resilience in China.

More details: Synaptics IR

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