Saturday, December 18, 2004

Weekend Whisper: Synaptics

Synaptics, touch sensitive gear maker for digital products, made
headlines in this weekends Barrons. The company has been blowing the
competition away ever since the notebook boom began. Nowadays,
Synaptics is also benefitting form the iPod craze--Synaptics is is the
company behind the white song scroller iPod fiends depend on...

The San Jose, Calif., company is a worldwide leader in touch-sensitive
The company has managed to keep robust sales and earnings growth while
the overall PC market has declined. Synaptics' customers include all
top 10 notebook PC makers: Acer, Apple, Compaq, Dell, Fujitsu, HP,
NEC, Sony and Toshiba. Still, Synaptics has some way to go to
diversify its business. It now gets more than 70% of its revenue from
notebook PCs. They spent the last 2 years expanding their product line
to supply touch screens for handheld computers and cell phones.
Magically, their touch pads haven't become commodities as hard drives
and microprocessor chips did (uh hmmmm, Intel).

When the gold rush transpired, the suppliers made all the money. In
1848, that company was Levi Strauss--you know them for their jeans.
Same thing happened during the late 90s telco boom--fiber optics was
the manna internet companies killed for. Today, the iPods are hot.
hot--Synaptics is in the right place in the right time. Let's hope
contracts keep pouring in.

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