TSC Ratings' Updates: Research In Motion

The revenue growth came in higher than the industry average of 17.4%. Since the same quarter one year prior, revenues rose by 33.6%. Growth in the company's revenue appears to have helped boost the earnings per share.

Synaptics has improved earnings per share by 42.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, Synaptics increased its bottom line by earning $0.76 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $0.76).

Synaptics' debt-to-equity ratio of 0.91 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.50 is very high and demonstrates very strong liquidity.

Net operating cash flow has decreased to $2.57 million or 48.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

Synaptics' stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 48.41%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, Synaptics is still more expensive than most of the other companies in its industry.