I encourage all SYNA investors to listen to the webcast of Tom Kiernan's Q&A session at the Kaufman Brother's Conference today. It is only about 30 minutes long and has a lot of good information. Here are a few of the highlights:
-management forecasted conservative notebook revenue growth in the high teens for second half of 2010 compared to INTEL's guidance of the high 20s because of abnormally good growth in the first half of 2010. Management maintains that forecast.
-management already incorporating a dimishing click wheel market into their earnings and revenues forecasts
-expecting another record quarter for handsets and forecasting a continuation of high growth in that space
-management is very high on the tablet space and growth opportunites. They expect a 10-15 million unit market (outside of IPAD) for tablets in FY2011, with the android platform being the primary market. Revenues should come in the first half of FY2011 results.. products should be available by the end of this year in time for holiday season.
-the company model for margins are in the 40-45% range. Recent margins have been in the 40-42% range.. company is very capable of controlling which business they take on to maintain margins.
-company has been oversubscribed and continues to scale up their operations to meet growing demand. R&D expenses will continue to be in the 14-15% range in order to scale up operations and amp of engineering capabilities
-company is virtually debt free and has a large amount of cash on the balance sheet. Management is always looking for acquisitions that meet their model of enhancing human interface solutions. Company has bought back 1/3 of outstanding shares in the past 3 years.. will continue to buy back shares strategically