Synaptics Restyles onsemi Deal as All-Cash Takeover

The Tip Desk · November 6, 2026 · 3 min read

First-quarter fiscal 2027 revenue was $294.0 million, up 1% from a year earlier, after 9% growth in the prior quarter.

Synaptics Incorporated (SYNA) reported first-quarter fiscal 2027 net revenue of $294.0 million, up 1% from a year earlier, after 9% year-over-year growth in the fourth quarter of fiscal 2026 and 10% growth two quarters earlier.

The semiconductor maker said fiscal first-quarter revenue was affected by supply constraints and memory-related demand dynamics across multiple markets, with smartphone softness impacting touch and wireless products. Sequential revenue declined from $308.0 million in the June quarter.

GAAP results showed a net loss of $17.7 million, or $0.45 a share, versus a $447.4 million GAAP loss, or $11.53 a share, in the fourth quarter of fiscal 2026, which included a $425.3 million non-cash charge related to a valuation allowance against U.S. deferred tax assets. Non-GAAP net income was $51.5 million, or $1.26 a share, compared with $1.23 a share in the prior quarter.

GAAP gross margin was 47.8% and non-GAAP gross margin was 54.3%. Acquisition-related costs were $19.1 million, down from $30.5 million a year earlier. Restructuring costs were $8.1 million. Non-GAAP operating income was $62.0 million.

President and Chief Executive Officer Rahul Patel said Synaptics delivered another quarter of strong design activity and customer engagement in Edge and Physical AI, and that the company is continuing to see broader opportunities for tactile sensing controllers and video interface products in robotics, with new customers showing growing interest in processor and wireless technologies leveraging Edge AI development platforms.

During the quarter the company introduced the xMCU, a new class of microcontrollers, with the launch of the Synaptics Astra SR200 series, and expanded the Coralboard ecosystem in partnership with Google Research. It also announced that its capacitive tactile sensing module and Astra Edge AI processors are now supported by NVIDIA Isaac Sim and Holoscan platforms.

Synaptics said it entered into a licensing agreement for its automotive LCD TDDI technology, consistent with a strategy to focus on higher-value areas and grow in Physical AI and Edge AI.

On October 1, 2026, onsemi and Synaptics entered into an Amended and Restated Agreement and Plan of Merger that restructured the June 25, 2026 all-stock transaction into an all-cash acquisition. Because of the pending deal, Synaptics said it will not host a quarterly earnings conference call or provide a forward-looking financial outlook.

Cash and cash equivalents were $367.7 million at September 2026, down from $442.5 million at June 2026. Inventories were $184.7 million. Current portion of debt was $440.1 million and long-term debt was $397.9 million.

Net cash used in operating activities was $15.5 million in the three months ended September 2026, versus $30.2 million provided in the year-ago quarter. Investing activities used $28.1 million, including $25.0 million of purchases of intangible assets. Financing activities used $30.9 million, including equity compensation, net.