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LONDON, UK / ACCESSWIRE / November 22, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Synaptics Inc. (NASDAQ: SYNA), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=SYNA. In a filing with the US Securities and Exchange Commission (SEC) on November 15, 2017, Synaptics announced that it has implemented an employee reduction plan which would result in a 7% reduction to its global headcount. The employee reduction plan is part of the Company's overall strategy to reduce costs and streamline operations. The Company has not disclosed which positions are affected and the locations where it has implemented the plan. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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The Job cuts
The implementation of the employee reduction plan resulted in the elimination of 156 positions which translates to a global headcount reduction of 7%. The Company disclosed that the affected employees have already been informed about the decision. The Company expects that the implementation of this plan will result in one time costs in the range of $8 million to $10 million. Costs are mainly towards payment of severance pay and other one-time benefits.
The Company has also announced that it is implementing the space consolidation program simultaneously. The Company expects that the reduction in space would result in one-time costs in the range of $1 million to $2 million.
Synaptics plans to pay these associated costs predominantly in cash. The Company expects that these costs will be reflected in the Company's Q2 2018 fiscal results and any other additional costs will be reflected in the Company's H2 results for fiscal year 2018.
Rationale behind the job cuts
The decision to reduce jobs and space consolidation is based on the Company's comprehensive review of its operations which will help it streamline and reduce operating costs. The Company plans to utilize these savings for funding strategic acquisitions aimed at future growth.
In July 2017 had announced the acquisition of Conexant Systems, LLC and the Multimedia Solutions Business of Marvell Technology Group (NASDAQ: MRVL). The Company finalized the two deals for approximately $436 million in cash plus stock. Conexant is a technology leader in voice and audio processing solutions for the smart home, while Multimedia Solutions is a leading provider of advanced processing technology for video and audio applications, also for the smart home. These acquisitions were made by the Company to jumpstart its presence in the smart home market and part of its long-term strategy to expand its leadership in human interface in the consumer IoT market. Synaptics announced the completion of the acquisition of Conexant in July 2017.
About Synaptics Inc.
San Jose, California based Synaptics is the pioneer and leader of the human interface revolution and develops touch-based human interfaces for computer laptops, touch-screens, mp3 players, cellular phones, and more. Synaptics' broad portfolio of touch, display, biometrics, voice, audio, and multimedia products is built on the Company's rich research and development (R&D), extensive IP, and dependable supply chain capabilities. Synaptics combines ease of use, functionality, and aesthetics to enable products that help make our digital lives more productive, secure and enjoyable. Till date, Synaptics has shipped more than 5-billion units and has reached a runway of a billion a year. It has over 1,900 patents that are either pending or issued.
Last Close Stock Review
On Tuesday, November 21, 2017, the stock closed the trading session at $40.10, climbing 5.80% from its previous closing price of $37.90. A total volume of 1.35 million shares have exchanged hands, which was higher than the 3-month average volume of 1.06 million shares. Synaptics' stock price surged 13.34% in the last one month and 0.91% in the past three months. The stock is trading at a PE ratio of 83.89 and currently has a market cap of $1.34 billion.
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