10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2013

Commission file number 000-49602

SYNAPTICS INCORPORATED

(Exact name of registrant as specified in its charter)

Delaware	77-0118518
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1251 McKay Drive

San Jose, California 95131

(Address of principal executive offices) (Zip code)

(408) 904-1100

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Number of shares of Common Stock outstanding at October 25, 2013: 33,090,816

SYNAPTICS INCORPORATED

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2013

TABLE OF CONTENTS

			Page
Part I.	Financial Information
	Item 1.	Condensed Financial Statements (Unaudited):
		Condensed Consolidated Balance Sheets— September 30, 2013 and June 30, 2013		3
		Condensed Consolidated Statements of Income— Three Months Ended September 30, 2013 and 2012		4
		Condensed Consolidated Statements of Comprehensive Income— Three Months Ended September 30, 2013 and 2012		5
		Condensed Consolidated Statements of Cash Flows— Three Months Ended September 30, 2013 and 2012		6
		Notes to Condensed Consolidated Financial Statements		7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		22
	Item 4.	Controls and Procedures		23
Part II.	Other Information
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		24
	Item 6.	Exhibits		25
Signatures				26

PART I—FINANCIAL INFORMATION

ITEM 1. CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

SYNAPTICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

	September 30,			June 30,
	2013			2013
ASSETS
Current Assets:
Cash and cash equivalents	$	331,572		$	355,303
Accounts receivable, net of allowances of $883 at September 30, 2013 and June 30, 2013		153,939			148,454
Inventories		57,293			49,948
Prepaid expenses and other current assets		7,212			6,715
Total current assets		550,016			560,420
Property and equipment at cost, net of accumulated depreciation of $38,577 and $35,285 at September 30, 2013 and June 30, 2013, respectively		61,225			58,035
Goodwill		20,695			20,695
Purchased intangibles		12,848			13,110
Non-current investments		17,536			16,969
Other assets		21,648			22,037
	$	683,968		$	691,266
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	77,955		$	83,710
Accrued compensation		15,074			23,728
Income taxes payable		15,098			10,751
Other accrued liabilities		34,108			31,437
Total current liabilities		142,235			149,626
Notes payable		2,305			2,305
Other liabilities		17,944			17,480
Stockholders’ Equity:
Common stock:
$0.001 par value; 120,000,000 shares authorized, 51,094,508 and 50,673,758 shares issued, and 32,493,672 and 33,289,826 shares outstanding, at September 30, 2013 and June 30, 2013, respectively		51			51
Additional paid-in capital		553,509			539,170
Treasury stock: 18,600,836 and 17,383,932 common treasury shares at September 30, 2013 and June 30, 2013, respectively, at cost		(510,157	)		(460,160	)
Accumulated other comprehensive income		7,150			6,802
Retained earnings		470,931			435,992
Total stockholders’ equity		521,484			521,855
	$	683,968		$	691,266

See accompanying notes to condensed consolidated financial statements (unaudited).

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SYNAPTICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	September 30,
	2013			2012
Net revenue	$	222,607		$	127,041
Cost of revenue		113,328			66,471
Gross margin		109,279			60,570
Operating expenses:
Research and development		40,442			32,802
Selling, general, and administrative		21,124			18,908
Acquired intangibles amortization		262			240
Change in contingent consideration		258			287
Total operating expenses		62,086			52,237
Operating income		47,193			8,333
Interest income		211			218
Non-cash interest income		219			—
Interest expense		(4	)		(4	)
Income before provision for income taxes		47,619			8,547
Provision for income taxes		12,680			2,494
Net income	$	34,939		$	6,053
Net income per share:
Basic	$	1.06		$	0.18
Diluted	$	1.00		$	0.18
Shares used in computing net income per share:
Basic		32,958			32,941
Diluted		35,020			34,014

See accompanying notes to condensed consolidated financial statements (unaudited).

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SYNAPTICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

	Three Months Ended
	September 30,
	2013			2012
Net income	$	34,939		$	6,053
Other comprehensive income:
Change in unrealized net gain on investments before reclassifications		567			1,133
Accretion of non-current investments		(219	)		—
Net current-period other comprehensive income		348			1,133
Comprehensive income	$	35,287		$	7,186

See accompanying notes to condensed consolidated financial statements (unaudited).

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SYNAPTICS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Three Months Ended
	September 30,
	2013			2012
Cash flows from operating activities
Net income	$	34,939		$	6,053
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation costs		7,042			8,467
Depreciation and amortization		3,244			2,462
Acquired intangibles amortization		262			240
Accretion and remeasurement of contingent consideration liability		258			287
Deferred taxes		188			(563	)
Non-cash interest income		(219	)		—
Changes in operating assets and liabilities:
Accounts receivable, net		(5,485	)		6,100
Inventories		(7,345	)		1,840
Prepaid expenses and other current assets		(497	)		(580	)
Other assets		201			908
Accounts payable		(2,175	)		(4,485	)
Accrued compensation		(8,654	)		(971	)
Income taxes		4,502			1,378
Other accrued liabilities		2,659			8,478
Net cash provided by operating activities		28,920			29,614
Cash flows from investing activities
Proceeds from sales of non-current investments		—			2,000
Acquisition of business, net of cash acquired		—			(5,000	)
Purchases of property and equipment		(10,014	)		(16,082	)
Net cash used in investing activities		(10,014	)		(19,082	)
Cash flows from financing activities
Purchases of treasury stock		(49,997	)		(2,554	)
Proceeds from issuance of shares		7,713			718
Excess tax benefit from share-based compensation		1,329			—
Payroll taxes for deferred stock units		(1,682	)		(812	)
Net cash used in financing activities		(42,637	)		(2,648	)
Net (decrease) increase in cash and cash equivalents		(23,731	)		7,884
Cash and cash equivalents at beginning of period		355,303			305,005
Cash and cash equivalents at end of period	$	331,572		$	312,889
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	6,564		$	1,683

See accompanying notes to condensed consolidated financial statements (unaudited).

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SYNAPTICS INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, and U.S. generally accepted accounting principles, or U.S. GAAP. However, certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such SEC rules and regulations. In our opinion, the financial statements include all adjustments, which are of a normal and recurring nature, necessary for the fair presentation of the results of the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future period. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

The consolidated financial statements include our financial statements and those of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

Our fiscal year is the 52- or 53-week period ending on the last Saturday in June. Our fiscal 2014 and 2013 are 52-week periods ending on June 28, 2014 and June 29, 2013, respectively. The quarterly fiscal periods presented in this report were 13-week periods for the three months ended September 28, 2013 and September 29, 2012. For ease of presentation, the accompanying consolidated financial statements have been shown as ending on calendar quarter end dates for all annual, interim, and quarterly financial statement captions, unless otherwise indicated.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, allowance for doubtful accounts, cost of revenue, inventories, loss on purchase commitments, product warranty, share-based compensation costs, provision for income taxes, deferred income tax asset valuation allowances, uncertain tax positions, tax contingencies, goodwill, intangible assets, investments, contingent consideration liability, and loss contingencies. We base our estimates on historical experience, applicable laws and regulations, and various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Recently Issued Accounting Pronouncements

There are no new accounting pronouncements that are expected to have a material impact on our condensed consolidated financial statements.

2. Revenue Recognition

We recognize revenue from product sales when there is persuasive evidence that an arrangement exists, delivery has occurred and title has transferred, the price is fixed or determinable, and collection is reasonably assured, which is generally upon shipment of the product. We accrue for estimated sales returns, incentives, and other allowances at the time we recognize revenue. Our products contain embedded firmware and software that allows for further differentiation and customer integration, which together with our ASIC chip, delivers the essential functionality of our products and, as such, software revenue recognition guidance is not applicable.

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3. Net Income Per Share

The computation of basic and diluted net income per share was as follows (in thousands, except per share data):

	Three Months Ended
	September 30,
	2013		2012
Numerator:
Net income	$	34,939	$	6,053
Denominator:
Shares, basic		32,958		32,941
Effect of dilutive share-based awards		2,062		1,073
Shares, diluted		35,020		34,014
Net income per share:
Basic	$	1.06	$	0.18
Diluted	$	1.00	$	0.18

Our basic net income per share amounts for each period presented have been computed using the weighted average number of shares of common stock outstanding. Our diluted net income per share amounts for each period presented include the weighted average effect of potentially dilutive shares. We use the “treasury stock” method to determine the dilutive effect of our stock options, deferred stock units, or DSUs, market stock units, or MSUs, and convertible notes.

Dilutive net income per share amounts do not include the weighted average effect of 503,115 and 3,990,394 share-based awards that were outstanding during the three months ended September 30, 2013 and 2012, respectively. These share-based awards were not included in the computation of diluted net income per share because their effect would have been antidilutive.

4. Fair Value

Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy consisted of the following (in thousands):

	September 30,				June 30,
	2013				2013
	Level 1		Level 3		Level 1		Level 3
Assets:
Money market	$	326,066	$	—	$	350,521	$	—
Auction rate securities		—		17,536		—		16,969
Total available-for-sale securities	$	326,066	$	17,536	$	350,521	$	16,969
Liabilities:
Contingent consideration liability recorded for business combination	$	—	$	8,505	$	—	$	8,247

In our condensed consolidated balance sheets as of September 30, 2013 and June 30, 2013, money market balances are included in cash and cash equivalents; auction rate securities, or ARS investments, are included in non-current investments. The contingent consideration liability recorded for a business combination is included in other liabilities; of which $8.3 million and $8.1 million is included in the non-current portion of other liabilities as of September 30, 2013 and June 30, 2013, respectively, and $196,000 has been included in other current liabilities as of both periods.

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Changes in fair value of our Level 3 financial assets as of September 30, 2013 were as follows (in thousands):

Balance as of June 30, 2013	$	16,969
Net unrealized gain		567
Balance as of September 30, 2013	$	17,536

Changes in fair value of our Level 3 contingent consideration liability as of September 30, 2013 were as follows (in thousands):

Balance as of June 30, 2013	$	8,247
Accretion and remeasurement		258
Balance as of September 30, 2013	$	8,505

In connection with the acquisition of Pacinian in June 2012, we entered into a contingent consideration arrangement, and subsequently paid $5.0 million of additional consideration to the former Pacinian stockholders upon customer acceptance of a ThinTouch product. As of September 30, 2013, we may owe up to $10.0 million of additional consideration to the former Pacinian stockholders based on sales of products utilizing ThinTouch technology through June 2016.

There were no transfers in or out of our Level 1 or 3 assets or liabilities during the three months ended September 30, 2013.

The fair values of our accounts receivable and accounts payable approximate their carrying values because of the short-term nature of those instruments. The fair value of our notes payable approximates their carrying value in all material respects. Intangible assets, property and equipment, and goodwill are measured at fair value on a non-recurring basis if impairment is indicated.

5. Auction Rate Securities

Our ARS investments have failed to settle in auctions and are not liquid. In the event we need to access these funds prior to their maturity, we will not be able to do so without a loss of principal, unless redeemed by the issuers or a future auction on these investments is successful. During the three months ended September 30, 2013, none of our ARS investments were redeemed.

As there are currently no active markets for our various failed ARS investments, we have estimated the fair value as of September 30, 2013 using a trinomial discounted cash flow analysis. The analysis considered, among others, the following factors:

• the collateral underlying the security investments;

• the creditworthiness of the counterparty;

• the timing of expected future cash flows;

• the probability of a successful auction in a future period;

• the underlying structure of each investment;

• the present value of future principal and interest payments discounted at rates considered to reflect current market conditions;

• a consideration of the probabilities of default, passing a future auction, or redemption at par for each period; and

• estimates of the recovery rates in the event of default for each investment.

When possible, our failed ARS investments were compared to other observable market data or securities with similar characteristics. Our estimate of the fair value of our ARS investments could change materially from period to period based on future market conditions.

Contractual maturities for our ARS investments are generally greater than five years, with fair value of $12.4 million maturing from calendar years 2015 to 2017, $3.1 million maturing from calendar years 2043 to 2045, and $2.0 million having no maturity date. Of our ARS investments, $5.5 million par value are investment grade, and the remaining $18.5 million par value are below investment grade.

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The various types of ARS investments we held as of September 30, 2013, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value, consisted of the following (in thousands):

			Other-than-
			temporary
	Original Cost		Impairment in			New Cost		Unrealized			Fair
	Basis		Retained Earnings			Basis		Gain/(Loss)			Value
Student loans	$	3,500	$	(179	)	$	3,321	$	(172	)	$	3,149
Credit linked notes		13,500		(8,352	)(1)		5,148		5,318			10,466
Preferred stock		5,000		(5,000	)		—		2,000			2,000
Municipals		2,000		(83	)		1,917		4			1,921
Total ARS	$	24,000	$	(13,614	)	$	10,386	$	7,150		$	17,536

(1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $415,000 on non-current investments. Accretion is reclassified from accumulated other comprehensive income and recorded in the condensed consolidated statements of income as non-cash interest income.

The various types of ARS investments we held as of June 30, 2013, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value, consisted of the following (in thousands):

			Other-than-
			temporary
	Original Cost		Impairment in			New Cost		Unrealized			Fair
	Basis		Retained Earnings			Basis		Gain/(Loss)			Value
Student loans	$	3,500	$	(179	)	$	3,321	$	(168	)	$	3,153
Credit linked notes		13,500		(8,571	)(1)		4,929		4,980			9,909
Preferred stock		5,000		(5,000	)		—		2,000			2,000
Municipals		2,000		(83	)		1,917		(10	)		1,907
Total ARS	$	24,000	$	(13,833	)	$	10,167	$	6,802		$	16,969

(1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $196,000 on non-current investments. Accretion is reclassified from accumulated other comprehensive income and recorded in the condensed consolidated statements of income as non-cash interest income.

The ARS investments in each of the above tables with unrealized losses have been in a continuous unrealized loss position for more than 12 months.

We have accounted for all of our ARS investments as non-current as we are not able to reasonably determine when the ARS markets will recover or be restructured. Based on our ability to access our cash and cash equivalents, our expected operating cash flows, and our other sources of cash, we do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before the recovery of the amortized cost basis. We will continue to monitor our ARS investments and evaluate our accounting for these investments quarterly.

6. Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market (estimated net realizable value) and consisted of the following (in thousands):

	September 30,		June 30,
	2013		2013
Raw materials	$	46,868	$	38,181
Finished goods		10,425		11,767
	$	57,293	$	49,948

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7. Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

	September 30, 2013		June 30, 2013
Customer obligations	$	16,910	$	16,291
Inventory obligations		6,463		6,333
Warranty		1,514		1,696
Other		9,221		7,117
	$	34,108	$	31,437

8. Product Warranties, Indemnifications, and Contingencies

Product Warranties

We generally warrant our products for a period of 12 months from the date of sale and estimate probable product warranty costs at the time we recognize revenue. Factors that affect our warranty liability include historical and anticipated rates of warranty claims, materials usage, rework, and delivery costs. However, we assess the adequacy of our warranty obligations each reporting period and adjust the accrued warranty liability on the basis of our estimates.

Indemnifications

In connection with certain third-party agreements we have executed in the past, we are obligated to indemnify the third party in connection with any technology infringement by us. We have also entered into indemnification agreements with our officers and directors. Maximum potential future payments cannot be estimated because these agreements do not have a maximum stated liability. However, historical costs related to these indemnification provisions have not been significant. We have not recorded any liability in our consolidated financial statements for such indemnification obligations.

Contingencies

We have in the past and may in the future receive notices from third parties that claim our products infringe their intellectual property rights. We cannot be certain that our technologies and products do not or will not infringe issued patents or other proprietary rights of third parties.

Any infringement claims, with or without merit, could result in significant litigation costs and diversion of management and financial resources, including the payment of damages, which could have a material adverse effect on our business, financial condition, and results of operations.

9. Share-Based Compensation

Share-based compensation and the related tax benefit recognized in our condensed consolidated statements of income were as follows (in thousands):

	Three Months Ended September 30,
	2013		2012
Cost of revenue	$	254	$	243
Research and development		3,927		3,911
Selling, general, and administrative		2,861		4,313
Total	$	7,042	$	8,467
Income tax benefit on share-based compensation	$	1,972	$	2,218

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Historically, we have issued new shares in connection with our share-based compensation plans; however, treasury shares were also available for issuance as of September 30, 2013, including shares repurchased under our common stock repurchase program.

Stock Options

Stock option activity, including stock options granted, exercised, and forfeited, and weighted average exercise prices for options outstanding and exercisable, and the aggregate intrinsic value were as follows:

	Stock Option Awards Outstanding			Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)
Balance at June 30, 2013		6,030,287		$	26.15
Granted		124,535			39.80
Exercised		(337,079	)		22.88
Forfeited		(27,327	)		30.90
Balance at September 30, 2013		5,790,416			26.61	$	97,903
Exercisable at September 30, 2013		4,431,991		$	25.49	$	79,895

The aggregate intrinsic value was determined using the closing price of our common stock on September 27, 2013 of $43.52, and excludes the impact of stock options that were not in-the-money.

Deferred Stock Units

DSU activity, including DSUs granted, delivered, and forfeited, and the balance and aggregate intrinsic value of DSUs were as follows:

	DSU Awards Outstanding			Aggregate Intrinsic Value (in thousands)
Balance at June 30, 2013		1,005,435
Granted		62,943
Delivered		(125,765	)
Forfeited		(26,734	)
Balance at September 30, 2013		915,879		$	39,859

The aggregate intrinsic value was determined using the closing price of our common stock on September 27, 2013 of $43.52.

Of the shares delivered, 42,094 shares valued at $1.7 million were withheld to meet statutory minimum tax withholding requirements.

Market Stock Units

Our Amended and Restated 2010 Incentive Compensation Plan provides for the grant of MSU awards, which are a type of DSU award, to our employees, consultants, and directors. An MSU is a promise to deliver shares of our common stock at a future date based on the achievement of market-based performance requirements in accordance with the terms of the MSU grant agreement. We began granting MSUs in November 2012.

In November 2012, we granted MSUs to our executive officers, which were designed to vest in three tranches with the target quantity for each tranche equal to one-third of the total MSU grant. The first tranche vests based on a one-year performance period; the second tranche vests based on a two-year performance period; and the third tranche vests based on a three-year performance period. Performance is measured based on the achievement of a specified level of total stockholder return, or TSR, relative to the TSR of the Philadelphia Semiconductor Index, or SOX Index. The potential payout ranges from 0% to 200% of the grant target quantity and is adjusted on a two-to-one ratio based on our TSR performance relative to the SOX Index TSR performance using the following formula:

(100% + ([Synaptics TSR - SOX Index TSR] x 2))

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Delivery of shares earned, if any, will take place on the dates provided in the applicable MSU grant agreement, assuming the grantee is still an employee, consultant, or director of our company at the end of the applicable performance period. On the delivery date, we withhold shares to cover statutory minimum tax withholding by delivering a net quantity of shares. Until delivery of shares, the grantee has no rights as a stockholder with respect to any shares underlying the MSU award.

During the three months ended September 30, 2013, there were no MSUs granted and there were no shares under our MSU awards delivered or forfeited. We valued the MSUs using the Monte Carlo simulation model and amortize the compensation expense over the three-year performance and service period. The weighted average grant date fair value for the MSUs granted was $25.82. The unrecognized share-based compensation cost for MSUs granted was approximately $1.3 million as of September 30, 2013, which will be recognized over a weighted average period of approximately 1.0 years. As of September 30, 2013, the aggregate intrinsic value of the MSUs was $2.9 million (assuming a 100% payout factor), which was determined using the closing price of our common stock on September 27, 2013 of $43.52.

10. Income Taxes

We account for income taxes under the asset and liability method. We consider the operating earnings of our foreign subsidiaries to be indefinitely invested outside the United States. Accordingly, no provision has been made for the federal, state, or foreign taxes that may result from future remittances of undistributed earnings of our foreign subsidiaries.

The provision for income taxes of $12.7 million and $2.5 million for the three months ended September 30, 2013 and 2012, respectively, represented estimated federal, foreign, and state income taxes. The effective tax rate for the three months ended September 30, 2013 was 26.6% and diverged from the combined federal and state statutory rate primarily because of foreign income taxed at lower tax rates and the federal research credit, partially offset by foreign withholding taxes, and net unrecognized tax benefits associated with qualified stock options. The effective tax rate for the three months ended September 30, 2012 was 29.2% and diverged from the combined federal and state statutory rate primarily because of foreign income taxed at lower tax rates, partially offset by foreign withholding taxes, net unrecognized tax benefit associated with qualified stock options, and a slight increase in the liability for unrecognized tax benefits related to uncertain tax positions.

Unrecognized Tax Benefits

The total liability for gross unrecognized tax benefits increased $146,000 during the three months ended September 30, 2013 to $8.4 million from $8.2 million at June 30, 2013 and is included in other liabilities on our condensed consolidated balance sheets. All of this amount would affect the effective tax rate on income from continuing operations, if recognized. The balance of interest and penalties accrued related to unrecognized tax benefits as of September 30, 2013 was $918,000 and increased by $5,000 from June 30, 2013. We classify interest and penalties as components of income tax expense.

In May 2011, we were notified by the Internal Revenue Service (Service) that our fiscal 2003 through 2006 and fiscal 2008 through 2010 would be subject to examination. The early periods were being audited in connection with a mandatory review of tax refunds in excess of $2.0 million when we carried back our fiscal 2008 net operating loss. In March 2013, we received the Revenue Agent’s Report resolving our examination with the Service and paid an assessment that had no material impact to our condensed consolidated financial statements. Our case is pending review by the Joint Committee of Taxation, which we anticipate to conclude in our fiscal 2014. Any prospective adjustments to our unrecognized tax benefits will be recorded as an increase or decrease to income tax expense and cause a corresponding change to our effective tax rate. Accordingly, our effective tax rate could fluctuate materially from period to period.

On January 2, 2013, President Barack Obama signed into law The American Taxpayer Relief Act of 2013 (The Act). The Act extends the research credit for two years retroactively from January 1, 2012 through December 31, 2013. As such, we will only recognize six months of tax benefit in our current fiscal year.

13

Our major tax jurisdictions are the United States, California, and Hong Kong SAR, and fiscal 2003 onward remain subject to examination by one or more of these jurisdictions.

11. Segment, Customers, and Geographic Information

We operate in one segment: the development, marketing, and sale of interactive user interface solutions for electronic devices and products. We generate our revenue from two broad product categories: the mobile product market and the personal computing, or PC, market. The mobile product market accounted for 73% and 51% of net revenue for the three months ended September 30, 2013 and 2012, respectively.

Net revenue within geographic areas based on our customers’ locations for the periods presented was as follows (in thousands):

	Three Months Ended
	September 30,
	2013		2012
China	$	107,366	$	84,910
South Korea		69,158		6,372
Taiwan		32,300		15,892
Japan		12,079		13,781
United States		495		5,005
Other		1,209		1,081
	$	222,607	$	127,041

Net revenue from external customers for each group of similar products was as follows (in thousands):

	Three Months Ended
	September 30,
	2013		2012
Mobile product applications	$	162,664	$	64,616
PC product applications		59,943		62,425
	$	222,607	$	127,041

Net revenue from major customers as a percentage of total net revenue for the periods presented was as follows:

	Three Months Ended
	September 30,
	2013			2012
Customer A		22	%		*
Customer B		10	%		*

* Less than 10%

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We sell our products primarily to contract manufacturers that provide manufacturing services to original equipment manufacturers, or OEMs. We extend credit based on an evaluation of a customer’s financial condition, and we generally do not require collateral. Major customer accounts receivable as a percentage of total accounts receivable at the dates presented were as follows:

	September 30,			June 30,
	2013			2013
Customer A		26	%		27	%
Customer B		12	%			*

* Less than 10%

12. Comprehensive Income

Our comprehensive income generally consists of net income plus the effect of unrealized gains and losses on our investments, primarily due to temporary changes in market value of certain of our ARS investments. In addition, we recognize the noncredit portion of other-than-temporary impairment on debt securities in other comprehensive income. We recognize foreign currency remeasurement adjustments and transaction gains and losses in our condensed consolidated statements of income as the U.S. dollar is the functional currency of our foreign entities.

13. Purchased Intangibles

The following table summarizes the life, the gross carrying value of our purchased intangible assets, and the related accumulated amortization as of September 30, 2013 and June 30, 2013 (in thousands):

		September 30,			June 30,
	Life	2013			2013
In-process research and development	To be determined	$	8,900		$	8,900
Customer relationships	5 years		3,800			3,800
Licensed technology and other	5 years		1,335			1,335
Patents	5 years		100			100
			14,135			14,135
Accumulated amortization			(1,287	)		(1,025	)
Purchased intangibles, net		$	12,848		$	13,110

Amortization of the purchased intangibles commenced in fiscal 2013. The total amortization expense for the purchased intangible assets was $262,000 and $240,000 for the three ended September 30, 2013, and 2012, respectively. This amortization expense was included in our condensed consolidated statements of income as acquired intangibles amortization.

The following table presents expected annual aggregate amortization expense as of September 30, 2013 (in thousands):

Remainder of 2014	$	785
2015		1,047
2016		1,047
2017		1,047
2018		22
To be determined		8,900
Future amortization	$	12,848

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14. Subsequent Event

On October 9, 2013, we signed a definitive agreement to acquire a privately held company, Validity Sensors, Inc., or Validity, a leading provider of biometric fingerprint authentication solutions for smartphones, tablets, and notebooks. The transaction has been approved by our board of directors and Validity’s board of directors and is subject to customary closing conditions. There are no financing contingencies related to the acquisition. The transaction is expected to close in the second quarter of fiscal 2014. With this acquisition we expect to gain access to the fast growing biometrics market, significantly expanding our market opportunity and underscoring our commitment to making smart devices easier to use. The acquisition is expected to be completed by acquiring all capital stock and other vested and unvested equity interests of Validity for an aggregate base purchase price of $92.5 million. In addition, we may become obligated to make earn-out consideration payments of up to an additional $162.5 million, which is based primarily on sales, during certain time periods, ending on March 31, 2016, of certain products embodying Validity fingerprint sensor technology. The earn-out consideration will generally be payable in cash, but there are certain conditions that require payout of a portion of the earn-out consideration, if any, in our common stock. Pursuant to the merger agreement we expect to create a merger sub wholly owned by us that will be merged with and into Validity, with Validity surviving as our wholly owned subsidiary, and as part of the same overall transaction, Validity will then merge with and into another merger sub wholly owned by us, with such other merger sub surviving such merger as our wholly owned subsidiary. Pursuant to the Merger, the Company incurred approximately $1.0 million in direct acquisition costs during the September quarter which were expensed as incurred.

The acquisition will be accounted for using the purchase method of accounting in accordance with the business acquisition guidance. Under the purchase accounting method, the total estimated purchase consideration of the acquisition will be allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their relative fair values. The excess of the purchase consideration over the net tangible and identifiable intangible assets acquired and liabilities will be recorded as goodwill.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements and Factors That May Affect Results

You should read the following discussion and analysis in conjunction with our unaudited condensed consolidated financial statements and notes in Item 1 of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

In addition to the historical information contained in this report, this report may contain forward-looking statements, including those related to our operating model and strategies; our market penetration and market share in the mobile product applications and PC product applications markets; competitive factors in the mobile product applications and PC product applications markets; revenue from the mobile product applications and PC product applications markets; industry estimates of growth rates of these markets; average selling prices; product design mix; manufacturing costs; gross margins; new product solution introductions; customer relationships; research and development expenses; selling, general, and administrative expenses; liquidity and anticipated cash requirements; our ability to provide local sales, operational, and engineering support to customers; our assessment of the combination of the added value we bring to our OEM customers’ products in meeting their custom design requirements and the impact of our ongoing cost-improvement programs; our expectations regarding the timing of the conclusion of an ongoing appeal of a tax audit; and our expectations regarding tax benefits for the federal research credit. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.

We caution that these statements are qualified by various factors that may affect future results, including the following: economic conditions; changes in the market for our products and the success of our customers’ products; our success in moving products from the design phase into the manufacturing phase; changes in the competitive environment; infringement claims; warranty obligations related to product failures; the failure of key technologies to deliver commercially acceptable performance; our dependence on certain key markets; penetration into new markets; the absence of both long-term purchase and supply commitments; and our lengthy development and product acceptance cycles. This report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2013, including particularly Item 1A—Risk Factors therein.

Overview

We are a leading worldwide developer and supplier of custom-designed human interface solutions that enable people to interact more easily and intuitively with a wide variety of mobile computing, communications, entertainment, and other electronic devices. We believe our results to date reflect the combination of our customer focus, the strength of our intellectual property, and our engineering know-how, which allow us to develop or engineer products that meet the demanding design specifications of OEMs.

Many of our customers have manufacturing operations in China, and many of our OEM customers have established design centers in that region. With our expanded global presence, including offices in China, Finland, Hong Kong, Japan, Korea, Switzerland, Taiwan, and the United States, we are well positioned to provide local sales, operational, and engineering support services to our existing customers, as well as potential new customers, on a global basis.

Our manufacturing operations are based on a variable cost model in which we outsource all of our production requirements and generally drop ship our products directly to our customers from our contract manufacturers’ facilities, reducing the need for significant capital expenditures and allowing us to minimize our investment in inventories. This approach requires us to work closely with our contract manufacturers and semiconductor foundries to ensure adequate production capacity to meet our forecasted volume requirements. We provide our contract manufacturers with six-month rolling forecasts and issue purchase orders based on our anticipated requirements for the next 90 days. However, we do not have any long-term supply contracts with any of our contract manufacturers. We use three third-party semiconductor wafer manufacturers to supply us with silicon wafers integrating our proprietary design specifications. The completed silicon wafers are forwarded to third-party package and test processors for further processing into die and packaged ASICs, as applicable, which are then utilized in our custom interface products or processed as our ASIC-based solutions. In certain cases, we rely on a single source or a limited number of suppliers to provide other key components of our products. Our cost of revenue includes all costs associated with the production of our products, including materials, logistics, manufacturing, assembly, and test costs paid to third-party manufacturers and related overhead costs associated with our indirect manufacturing operations personnel. Additionally, we charge losses on inventory purchase obligations and write-downs to reduce the carrying value of obsolete, slow moving, and non-usable inventory to net realizable value (including warranty costs) to cost of revenue.

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Our gross margin generally reflects the combination of the added value we bring to our OEM customers’ products in meeting their custom design requirements and the impact of our ongoing cost-improvement programs. These cost-improvement programs include reducing materials and component costs and implementing design and process improvements.

Our research and development expenses include costs for supplies and materials related to product development as well as the engineering costs incurred to design ASICs and human interface solutions for OEM customers prior to and after their commitment to incorporate those solutions into their products. These expenses have generally increased, reflecting our continuing commitment to the technological and design innovation required to maintain our position in our existing markets and to adapt our existing technologies or develop new technologies for new markets.

Selling, general, and administrative expenses include expenses related to sales, marketing, and administrative personnel; internal sales and outside sales representatives’ commissions; market and usability research; outside legal, accounting, and consulting costs; and other marketing and sales activities. These expenses have generally increased, primarily reflecting incremental staffing and related support costs associated with our business acquisitions, increased business levels, growth in our existing markets, and penetration into new markets.

Critical Accounting Policies and Estimates

There have been no significant changes in our critical accounting policies and estimates during the three months ended September 30, 2013 compared with our critical accounting policies and estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

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Results of Operations

Certain of our condensed consolidated statements of income data for the periods indicated, together with comparative absolute and percentage changes in these amounts, were as follows (in thousands, except percentages):

	Three Months Ended September 30,
	2013			2012			$ Change			% Change
Mobile product applications	$	162,664		$	64,616		$	98,048			151.7	%
PC product applications		59,943			62,425			(2,482	)		(4.0	%)
Net revenue		222,607			127,041			95,566			75.2	%
Gross margin		109,279			60,570			48,709			80.4	%
Operating expenses:
Research and development		40,442			32,802			7,640			23.3	%
Selling, general, and administrative		21,124			18,908			2,216			11.7	%
Acquired intangibles amortization		262			240			22			9.2	%
Change in contingent consideration		258			287			(29	)		(10.1	%)
Operating income		47,193			8,333			38,860			466.3	%
Interest income		211			218			(7	)		(3.2	%)
Interest expense		(4	)		(4	)		—			0.0	%
Non-cash interest income		219			—			219			n/m	(1)
Income before provision for income taxes		47,619			8,547			39,072			457.1	%
Provision for income taxes		12,680			2,494			10,186			408.4	%
Net income	$	34,939		$	6,053		$	28,886			477.2	%

(1) not meaningful

Certain of our condensed consolidated statements of income data as a percentage of net revenue for the periods indicated were as follows:

	Three Months Ended						Point Increase/ (Decrease)
	September 30,
	2013			2012
Mobile product applications		73.1	%		50.9	%		22.2	%
PC product applications		26.9	%		49.1	%		(22.2	%)
Net revenue		100.0	%		100.0	%
Gross margin		49.1	%		47.7	%		1.4	%
Operating expenses:
Research and development		18.2	%		25.8	%		(7.6	%)
Selling, general, and administrative		9.5	%		14.9	%		(5.4	%)
Amortization of acquired intangibles		0.1	%		0.2	%		(0.1	%)
Change in contingent consideration		0.1	%		0.2	%		(0.1	%)
Operating income		21.2	%		6.6	%		14.6	%
Income before provision for income taxes		21.4	%		6.7	%		14.7	%
Provision for income taxes		5.7	%		2.0	%		3.7	%
Net income		15.7	%		4.8	%		10.9	%

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Net Revenue.

Net revenue was $222.6 million for the quarter ended September 30, 2013 compared with $127.0 million for the quarter ended September 30, 2012, an increase of $95.6 million, or 75.2%. Of our first quarter fiscal 2013 net revenue, $162.7 million, or 73.1%, was from mobile product applications and $59.9 million, or 26.9%, was from PC product applications. The increase in net revenue for the quarter ended September 30, 2013 was attributable to an increase in net revenue from mobile product applications, partially offset by a decrease in PC product applications. Net revenue from mobile product applications increased primarily as a result of higher unit sales in the quarter, reflecting both the growing market and our market share. Net revenue from PC product applications decreased primarily as a result of the continued weakness in the PC market.

Based on industry estimates of unit shipments, the mobile smartphone market is anticipated to increase approximately 22%, the tablet market is anticipated to increase 66%, and the notebook market is anticipated to decrease approximately 10% in calendar year 2013 compared with calendar year 2012.

Gross Margin.

Gross margin as a percentage of net revenue was 49.1%, or $109.3 million, for the quarter ended September 30, 2013 compared with 47.7%, or $60.6 million, for the quarter ended September 30, 2012. The 140 basis point improvement in gross margin was primarily attributable to favorable mix of higher margin mobile product application revenue driven largely by the continued shift in our overall revenue mix to mobile product revenue consisting predominately of higher margin chip solutions.

We continuously introduce new product solutions, many of which have life cycles of less than a year. Further, as we sell our capacitive sensing technology in designs that are generally unique or specific to an OEM customer’s application, gross margin varies on a product-by-product basis, making our cumulative gross margin a blend of our product specific designs. As a virtual manufacturer, our gross margin percentage is generally not impacted materially by our shipment volume. We charge losses on inventory purchase obligations and write-downs to reduce the carrying value of obsolete, slow moving, and non-usable inventory to net realizable value (including warranty costs), to cost of revenue.

Operating Expenses.

Research and Development Expenses. Research and development expenses increased $7.6 million to $40.4 million for the quarter ended September 30, 2013 compared with the quarter ended September 30, 2012. The increase in research and development expenses primarily reflected a $3.9 million increase in employee-related costs, which included our annual merit increase, an increase in our incentive compensation accrual, additional headcount associated with an expanded product portfolio, and a $3.0 million increase in infrastructure-related costs.

Selling, General, and Administrative Expenses. Selling, general, and administrative expenses increased $2.2 million to $21.1 million for the quarter ended September 30, 2013 compared with the quarter ended September 30, 2012. The increase in selling, general, and administrative expenses primarily reflected a $1.5 million increase in employee-related costs, which included our annual merit increase, an increase in our incentive compensation accrual and additional headcount, and a $1.2 million increase in professional fees, primarily associated with acquisition related costs (see Note 14 for Subsequent Event).

Provision for Income Taxes.

We account for income taxes under the asset and liability method. We consider the operating earnings of our foreign subsidiaries to be indefinitely invested outside the United States. Accordingly, no provision has been made for the federal, state, or foreign taxes that may result from future remittances of undistributed earnings of our foreign subsidiaries.

The provision for income taxes of $12.7 million and $2.5 million for the three months ended September 30, 2013 and 2012, respectively, represented estimated federal, foreign, and state income taxes. The effective tax rate for the three months ended September 30, 2013 was 26.6% and diverged from the combined federal and state statutory rate primarily because of foreign income taxed at lower tax rates and the federal research credit, partially offset by foreign withholding taxes, and net unrecognized tax benefits associated with qualified stock options. The effective tax rate for the three months ended September 30, 2012 was 29.2% and diverged from the combined federal and state statutory rate primarily because of foreign income taxed at lower tax rates, partially offset by foreign withholding taxes, net unrecognized tax benefit associated with qualified stock options, and an increase to the liability for uncertain tax position.

20

In May 2011, we were notified by the Internal Revenue Service (Service) that our fiscal 2003 through 2006 and fiscal 2008 through 2010 would be subject to examination. The early periods were being audited in connection with a mandatory review of tax refunds in excess of $2.0 million when we carried back our fiscal 2008 net operating loss. In March 2013, we received the Revenue Agent’s Report resolving our examination with the Service and paid an assessment that had no material impact to our condensed consolidated financial statements. Our case is pending review by the Joint Committee of Taxation, which we anticipate to conclude in our fiscal 2014. Any prospective adjustments to our unrecognized tax benefits will be recorded as an increase or decrease to income tax expense and cause a corresponding change to our effective tax rate. Accordingly, our effective tax rate could fluctuate materially from period to period.

On January 2, 2013, President Barack Obama signed into law The American Taxpayer Relief Act of 2013 (The Act). The Act extends the research credit for two years retroactively from January 1, 2012 through December 31, 2013. As such, we will only recognize six months of research credit tax benefit in our current fiscal year.

Liquidity and Capital Resources

Our cash and cash equivalents were $331.6 million as of September 30, 2013 compared with $355.3 million as of June 30, 2013, a decrease of $23.7 million. The decrease primarily reflects the combination of $50.0 million used to repurchase 1,216,904 shares of our common stock and $10.0 million used for the purchase of property and equipment, partially offset by $28.9 million provided from operating cash flows and $7.7 million of proceeds from the issuance of shares. We consider earnings of our foreign subsidiaries indefinitely invested overseas and have made no provision for income or withholding taxes that may result from a future repatriation of those earnings. As of September 30, 2013, $291.4 million of cash and cash equivalents was held by our foreign subsidiaries. If these funds are needed for our operations in the United States, we would be required to accrue and pay U.S. federal, foreign, and state taxes to repatriate these funds.

Cash Flows from Operating Activities. Operating activities during the three months ended September 30, 2013 generated net cash of $28.9 million compared with $29.6 million of net cash generated during the three months ended September 30, 2012. For the three months ended September 30, 2013, net cash provided by operating activities was primarily attributable to net income of $34.9 million plus adjustments for non-cash charges of $10.8 million, and a $16.8 million net change in operating assets and liabilities. The net change in operating assets and liabilities was primarily attributable to an $8.7 million decrease in accrued compensation, a $7.3 million increase in inventories, and a $5.5 million increase in accounts receivable, partially offset by a $4.5 million decrease in income taxes. From June 30, 2013 to September 30, 2013, our days sales outstanding increased from 58 to 62 days and our inventory turns declined from 9 to 8.

Cash Flows from Investing Activities. Investing activities during the three months ended September 30, 2013 used net cash of $10.0 million for purchases of property and equipment compared with $19.1 million net cash used for purchases or property and equipment and business purchases during the three months ended September 30, 2012.

Cash Flows from Financing Activities. Net cash used in financing activities for the three months ended September 30, 2013 was $42.6 million compared with $2.6 million for the three months ended September 30, 2012. Net cash used in financing activities for the three months ended September 30, 2013 included $50.0 million used to repurchase 1,216,904 shares of our common stock, partially offset by proceeds from issuance of shares of our common stock under our employee equity programs of $7.7 million.

Common Stock Repurchase Program. Our Board of Directors has cumulatively authorized $620.0 million for our stock repurchase program, expiring in October 2015. The program authorizes us to purchase our common stock in the open market or in privately negotiated transactions, depending upon market conditions and other factors. The number of shares purchased and the timing of purchases is based on the level of our cash balances, general business and market conditions, and other factors, including alternative investment opportunities. Common stock purchased under this program is held as treasury stock. From April 2005 through September 30, 2013, we purchased 18,600,836 shares of our common stock in the open market for an aggregate cost of $510.2 million. Treasury shares purchased prior to August 28, 2008 were not subject to the stock split on that date. As of September 30, 2013, we had $109.8 million remaining under our common stock repurchase program.

Bank Credit Facility. We maintain a $75.0 million working capital line of credit with Wells Fargo Bank. The Wells Fargo Bank revolving line of credit, which expires on September 1, 2014, provides for an interest rate equal to the prime lending rate or 150 basis points above LIBOR, depending on whether we choose a variable or fixed rate, respectively. We had not borrowed any amounts under the line of credit as of September 30, 2013.

21

$100 Million Shelf Registration. We have registered an aggregate of $100.0 million of common stock and preferred stock for issuance in connection with acquisitions, which shares generally will be freely tradable after their issuance under Rule 145 of the Securities Act unless held by an affiliate of the acquired company, in which case such shares will be subject to the volume and manner of sale restrictions of Rule 144.

Liquidity and Capital Resources. We believe our existing cash and cash equivalents and anticipated cash flows from operating activities will be sufficient to meet our working capital and other cash requirements for at least the next 12 months, including our obligations associated with the acquisition of Validity. Our future capital requirements will depend on many factors, including our revenue, the timing and extent of spending to support product development efforts, costs related to protecting our intellectual property, the expansion of sales and marketing activities, the timing of introductions of new products and enhancements to existing products, the costs to ensure access to adequate manufacturing capacity, the costs of maintaining sufficient space or renovating recently acquired building space for our expanding workforce, the continuing market acceptance of our product solutions, our common stock repurchase program, and the amount and timing of our investments in, or acquisitions of, other technologies or companies. Further equity or debt financing may not be available to us on acceptable terms or at all. If sufficient funds are not available or are not available on acceptable terms, our ability to take advantage of business opportunities or to respond to competitive pressures could be limited or severely constrained.

Our non-current investments consist of ARS investments, which have failed to settle in auctions. These investments are not liquid, and in the event we need to access these funds, we will not be able to do so without a loss of principal, unless redeemed by the issuers or a future auction on these investments is successful.

Based on our ability to access our cash and cash equivalents, our expected operating cash flows, and our other sources of cash, we do not anticipate the lack of liquidity on these investments will affect our ability to operate our business as usual. Further, we do not anticipate the need to repatriate any undistributed earnings of our foreign subsidiaries to meet our working capital and other cash requirements.

Contractual Obligations and Commercial Commitments

Our material contractual obligations and commercial commitments as of September 30, 2013 were as follows (in millions):

	Remaining		Fiscal		Fiscal		Fiscal		Fiscal
	in Fiscal		Year		Year		Year		Year
	Year 2014		2015		2016		2017		2018		Thereafter		Total
Convertible senior subordinated notes (1)	$	—	$	—	$	—	$	—	$	—	$	3	$	3
Leases		2		3		2		1		1		2		11
Purchase obligations and other commitments (2)		6		4		6		—		—		—		16
Total	$	8	$	7	$	8	$	1	$	1	$	5	$	30

(1) Represents both principal and interest payable through the maturity date of the underlying contractual obligations.

(2) Purchase obligations and other commitments include payments due for contingent consideration, a long-term services agreement and inventory purchase obligations with contract manufacturers.

In connection with the acquisition of Pacinian in June 2012, we entered into a contingent consideration arrangement. As of September 30, 2013, we owe up to $10.0 million of additional consideration to the former Pacinian stockholders based on sales of products utilizing ThinTouch technology through June 2016. The estimated fair value of the contingent consideration liability as of September 30, 2013 was $8.3 million.

The amounts in the table above exclude unrecognized tax benefits of $8.4 million. As of September 30, 2013, we were unable to make a reasonably reliable estimate of when cash settlement with a taxing authority may occur in connection with our gross unrecognized tax benefit.

The amounts in the table above exclude the impact of the acquisition of Validity. See Note 14 for Subsequent Event.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our market risk has not changed materially from the interest rate and foreign currency exchange risks disclosed in Item 7A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

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ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer have reviewed and evaluated the effectiveness of our disclosure controls and procedures, which included inquiries made to certain other of our employees. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer have each concluded that our disclosure controls and procedures are designed and are effective to ensure that information required to be disclosed is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure and are effective and sufficient to ensure that we record, process, summarize, and report information required to be disclosed by us in our periodic reports filed under the Securities Exchange Act of 1934, as amended, within the time periods specified by the SEC’s rules and forms.

During the fiscal quarter covered by this report, there have not been any changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

23

PART II—OTHER INFORMATION

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

Our cumulative authorization for our common stock repurchase program is $620.0 million. The remaining amount authorized for the repurchase of our common stock through October 2015 is $109.8 million. Repurchases under our common stock repurchase program during the three-month period ended September 30, 2013 were as follows.

					Total		Maximum
					Number of		Dollar Value
					Shares		of Shares
			Average		Purchased		that May
	Total		Price		as Part of		Yet Be
	Number		Paid		Publicly		Purchased
	of Shares		per		Announced		Under the
Period	Purchased		Share		Program (1)		Program
June 30, 2013—July 27, 2013		—				—	$	159,840,000
July 28, 2013—August 24, 2013		799,952		41.45		800,000		126,681,000
August 25, 2013—September 28, 2013		416,952		40.38		417,000		109,843,000
Total		1,216,904

(1) Program announced in April 2005. Balance remaining under the program is available through October 2015.

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ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer
31.2	Certification of Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer
32.2	Section 1350 Certification of Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SYNAPTICS INCORPORATED
Date: November 1, 2013	By:	/s/ Richard A. Bergman
	Name:	Richard A. Bergman
	Title:	President and Chief Executive Officer
Date: November 1, 2013	By:	/s/ Kathleen A. Bayless
	Name:	Kathleen A. Bayless
	Title:	Senior Vice President, Chief Financial Officer, Secretary, and Treasurer

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INDEX TO EXHIBITS

Exhibit Number	Exhibit
31.1	Certification of Chief Executive Officer
31.2	Certification of Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer
32.2	Section 1350 Certification of Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

27

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

I, Richard A. Bergman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Synaptics Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2013

/s/ Richard A. Bergman

Richard A. Bergman

Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

I, Kathleen A. Bayless, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Synaptics Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2013

/s/ Kathleen A. Bayless

Kathleen A. Bayless

Chief Financial Officer

EX-32.1

Exhibit 32.1

Section 1350 Certification of Chief Executive Officer

In connection with the Quarterly Report on Form 10-Q of Synaptics Incorporated (the “Company”) for the quarterly period ended September 28, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard A. Bergman, Chief Executive Officer of the Company, certify, to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Richard A. Bergman

Richard A. Bergman

Chief Executive Officer

November 1, 2013

EX-32.2

Exhibit 32.2

Section 1350 Certification of Chief Financial Officer

In connection with the Quarterly Report on Form 10-Q of Synaptics Incorporated (the “Company”) for the quarterly period ended September 28, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kathleen A. Bayless, Chief Financial Officer of the Company, certify, to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Kathleen A. Bayless

Kathleen A. Bayless

Chief Financial Officer

November 1, 2013

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Segment, Customers, and Geographic Information

3 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment, Customers, and Geographic Information

11. Segment, Customers, and Geographic Information

We operate in one segment: the development, marketing, and sale of interactive user interface solutions for electronic devices and products. We generate our revenue from two broad product categories: the mobile product market and the personal computing, or PC, market. The mobile product market accounted for 73% and 51% of net revenue for the three months ended September 30, 2013 and 2012, respectively.

Net revenue within geographic areas based on our customers’ locations for the periods presented was as follows (in thousands):

	Three Months Ended
	September 30,
	2013		2012
China	$	107,366	$	84,910
South Korea		69,158		6,372
Taiwan		32,300		15,892
Japan		12,079		13,781
United States		495		5,005
Other		1,209		1,081
	$	222,607	$	127,041

Net revenue from external customers for each group of similar products was as follows (in thousands):

	Three Months Ended
	September 30,
	2013		2012
Mobile product applications	$	162,664	$	64,616
PC product applications		59,943		62,425
	$	222,607	$	127,041

Net revenue from major customers as a percentage of total net revenue for the periods presented was as follows:

	Three Months Ended
	September 30,
	2013			2012
Customer A		22	%		*
Customer B		10	%		*

* Less than 10%

We sell our products primarily to contract manufacturers that provide manufacturing services to original equipment manufacturers, or OEMs. We extend credit based on an evaluation of a customer’s financial condition, and we generally do not require collateral. Major customer accounts receivable as a percentage of total accounts receivable at the dates presented were as follows:

	September 30,			June 30,
	2013			2013
Customer A		26	%		27	%
Customer B		12	%			*

* Less than 10%

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Segment, Customers, and Geographic Information - Major Customer Accounts Receivable as Percentage of Accounts Receivable (Detail) (Accounts Receivable [Member])	3 Months Ended		12 Months Ended
	Sep. 30, 2013 Customer A [Member]	Sep. 30, 2013 Customer B [Member]	Jun. 30, 2013 Maximum [Member] Customer A [Member]	Jun. 30, 2013 Maximum [Member] Customer B [Member]
Accounts Receivable By Major Customers [Line Items]
Percentage of net revenue	26.00%	12.00%	27.00%	10.00%

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Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]
Net revenue	$ 222,607	$ 127,041
Cost of revenue	113,328	66,471
Gross margin	109,279	60,570
Operating expenses:
Research and development	40,442	32,802
Selling, general, and administrative	21,124	18,908
Acquired intangibles amortization	262	240
Change in contingent consideration	258	287
Total operating expenses	62,086	52,237
Operating income	47,193	8,333
Interest income	211	218
Non-cash interest income	219
Interest expense	(4)	(4)
Income before provision for income taxes	47,619	8,547
Provision for income taxes	12,680	2,494
Net income	$ 34,939	$ 6,053
Net income per share:
Basic	$ 1.06	$ 0.18
Diluted	$ 1.00	$ 0.18
Shares used in computing net income per share:
Basic	32,958	32,941
Diluted	35,020	34,014

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Fair Value

3 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value

4. Fair Value

Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy consisted of the following (in thousands):

	September 30,				June 30,
	2013				2013
	Level 1		Level 3		Level 1		Level 3
Assets:
Money market	$	326,066	$	—	$	350,521	$	—
Auction rate securities		—		17,536		—		16,969
Total available-for-sale securities	$	326,066	$	17,536	$	350,521	$	16,969
Liabilities:
Contingent consideration liability recorded for business combination	$	—	$	8,505	$	—	$	8,247

In our condensed consolidated balance sheets as of September 30, 2013 and June 30, 2013, money market balances are included in cash and cash equivalents; auction rate securities, or ARS investments, are included in non-current investments. The contingent consideration liability recorded for a business combination is included in other liabilities; of which $8.3 million and $8.1 million is included in the non-current portion of other liabilities as of September 30, 2013 and June 30, 2013, respectively, and $196,000 has been included in other current liabilities as of both periods.

Changes in fair value of our Level 3 financial assets as of September 30, 2013 were as follows (in thousands):

Balance as of June 30, 2013	$	16,969
Net unrealized gain		567
Balance as of September 30, 2013	$	17,536

Changes in fair value of our Level 3 contingent consideration liability as of September 30, 2013 were as follows (in thousands):

Balance as of June 30, 2013	$	8,247
Accretion and remeasurement		258
Balance as of September 30, 2013	$	8,505

In connection with the acquisition of Pacinian in June 2012, we entered into a contingent consideration arrangement, and subsequently paid $5.0 million of additional consideration to the former Pacinian stockholders upon customer acceptance of a ThinTouch product. As of September 30, 2013, we may owe up to $10.0 million of additional consideration to the former Pacinian stockholders based on sales of products utilizing ThinTouch technology through June 2016.

There were no transfers in or out of our Level 1 or 3 assets or liabilities during the three months ended September 30, 2013.

The fair values of our accounts receivable and accounts payable approximate their carrying values because of the short-term nature of those instruments. The fair value of our notes payable approximates their carrying value in all material respects. Intangible assets, property and equipment, and goodwill are measured at fair value on a non-recurring basis if impairment is indicated.

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Auction Rate Securities (Tables)

3 Months Ended

Sep. 30, 2013

Text Block [Abstract]

ARS Investments

The various types of ARS investments we held as of September 30, 2013, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value, consisted of the following (in thousands):

			Other-than-
			temporary
	Original Cost		Impairment in			New Cost		Unrealized			Fair
	Basis		Retained Earnings			Basis		Gain/(Loss)			Value
Student loans	$	3,500	$	(179	)	$	3,321	$	(172	)	$	3,149
Credit linked notes		13,500		(8,352	)(1)		5,148		5,318			10,466
Preferred stock		5,000		(5,000	)		—		2,000			2,000
Municipals		2,000		(83	)		1,917		4			1,921
Total ARS	$	24,000	$	(13,614	)	$	10,386	$	7,150		$	17,536

(1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $415,000 on non-current investments. Accretion is reclassified from accumulated other comprehensive income and recorded in the condensed consolidated statements of income as non-cash interest income.

The various types of ARS investments we held as of June 30, 2013, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value, consisted of the following (in thousands):

			Other-than-
			temporary
	Original Cost		Impairment in			New Cost		Unrealized			Fair
	Basis		Retained Earnings			Basis		Gain/(Loss)			Value
Student loans	$	3,500	$	(179	)	$	3,321	$	(168	)	$	3,153
Credit linked notes		13,500		(8,571	)(1)		4,929		4,980			9,909
Preferred stock		5,000		(5,000	)		—		2,000			2,000
Municipals		2,000		(83	)		1,917		(10	)		1,907
Total ARS	$	24,000	$	(13,833	)	$	10,167	$	6,802		$	16,969

(1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $196,000 on non-current investments. Accretion is reclassified from accumulated other comprehensive income and recorded in the condensed consolidated statements of income as non-cash interest income.

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Purchased Intangibles - Schedule of Expected Annual Aggregate Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
Remainder of 2014	$ 785
2015	1,047
2016	1,047
2017	1,047
2018	22
To be determined	8,900
Future amortization	$ 12,848	$ 13,110

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Comprehensive Income

3 Months Ended

Sep. 30, 2013

Equity [Abstract]

Comprehensive Income

12. Comprehensive Income

Our comprehensive income generally consists of net income plus the effect of unrealized gains and losses on our investments, primarily due to temporary changes in market value of certain of our ARS investments. In addition, we recognize the noncredit portion of other-than-temporary impairment on debt securities in other comprehensive income. We recognize foreign currency remeasurement adjustments and transaction gains and losses in our condensed consolidated statements of income as the U.S. dollar is the functional currency of our foreign entities.

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Jun. 30, 2013
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 12,680,000	$ 2,494,000
Effective tax rate	26.60%	29.20%
Gross unrecognized tax benefits	8,400,000		8,200,000
Gross unrecognized tax benefits increased during the year	146,000
Interest and penalties accrued related to unrecognized tax benefits	918,000
Increase in interest and penalties accrued related to unrecognized tax benefits	5,000
Minimum amount of tax refunds subject to mandatory review	$ 2,000,000
Extension period of federal research credit	2 years

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Subsequent Event - Additional Information (Detail) (Validity Sensors, Inc [Member], Subsequent Event [Member], USD $) In Millions, unless otherwise specified	0 Months Ended
	Oct. 09, 2013
Validity Sensors, Inc [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Aggregate base purchase price	$ 92.5
Consideration payments	162.5
Acquisition cost	$ 1.0

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Auction Rate Securities - ARS Investments (Parenthetical) (Detail) (USD $)	Sep. 30, 2013	Jun. 30, 2013
Amortized Cost And Fair Value Debt Securities [Abstract]
Investment securities accretion	$ 415,000	$ 196,000

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Share-Based Compensation (Tables)

3 Months Ended

Sep. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation and Related Tax Benefit Recognized in Consolidated Statements of Income

Share-based compensation and the related tax benefit recognized in our condensed consolidated statements of income were as follows (in thousands):

	Three Months Ended September 30,
	2013		2012
Cost of revenue	$	254	$	243
Research and development		3,927		3,911
Selling, general, and administrative		2,861		4,313
Total	$	7,042	$	8,467
Income tax benefit on share-based compensation	$	1,972	$	2,218

Balance of Outstanding and Exercisable Stock Options

Stock option activity, including stock options granted, exercised, and forfeited, and weighted average exercise prices for options outstanding and exercisable, and the aggregate intrinsic value were as follows:

	Stock Option Awards Outstanding			Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)
Balance at June 30, 2013		6,030,287		$	26.15
Granted		124,535			39.80
Exercised		(337,079	)		22.88
Forfeited		(27,327	)		30.90
Balance at September 30, 2013		5,790,416			26.61	$	97,903
Exercisable at September 30, 2013		4,431,991		$	25.49	$	79,895

Balance and Aggregate Intrinsic Value of DSUs

DSU activity, including DSUs granted, delivered, and forfeited, and the balance and aggregate intrinsic value of DSUs were as follows:

	DSU Awards Outstanding			Aggregate Intrinsic Value (in thousands)
Balance at June 30, 2013		1,005,435
Granted		62,943
Delivered		(125,765	)
Forfeited		(26,734	)
Balance at September 30, 2013		915,879		$	39,859

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Other Accrued Liabilities (Tables)

3 Months Ended

Sep. 30, 2013

Payables And Accruals [Abstract]

Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

	September 30, 2013		June 30, 2013
Customer obligations	$	16,910	$	16,291
Inventory obligations		6,463		6,333
Warranty		1,514		1,696
Other		9,221		7,117
	$	34,108	$	31,437

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Share-Based Compensation - Deferred Stock Units - Additional Information (Detail) (Deferred Stock Units [Member], USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 27, 2013
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of stock option outstanding calculated using the closing price of common stock		$ 43.52
Shares withheld to meet statutory minimum tax withholding requirements	42,094
Shares valued withheld to meet statutory minimum tax withholding requirements	$ 1.7

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Fair Value - Changes in Fair Value of Level 3 Contingent Consideration Liability (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]
Beginning balance	$ 8,247
Accretion and remeasurement	258
Ending balance	$ 8,505

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Other Accrued Liabilities - Other Accrued Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Payables And Accruals [Abstract]
Customer obligations	$ 16,910	$ 16,291
Inventory obligations	6,463	6,333
Warranty	1,514	1,696
Other	9,221	7,117
Other accrued liabilities	$ 34,108	$ 31,437

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Segment, Customers, and Geographic Information - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2013 Product Segment	Sep. 30, 2012
Segment Reporting [Abstract]
Number of segment	1
Number of product	2
Percentage from mobile product market in net revenue	73.00%	51.00%

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Net Income Per Share - Additional Information (Detail) (Stock Compensation Plan [Member])	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based awards	503,115	3,990,394

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Share-Based Compensation - Balance of Outstanding and Exercisable Stock Options (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Awards Outstanding, Balance at June 30, 2013	6,030,287
Stock Option Awards Outstanding, Granted	124,535
Stock Option Awards Outstanding, Exercised	(337,079)
Stock Option Awards Outstanding, Forfeited	(27,327)
Stock Option Awards Outstanding, Balance at September 30, 2013	5,790,416
Stock Option Awards Outstanding, Exercisable at September 30, 2013	4,431,991
Weighted Average Exercise Price, Balance at June 30, 2013	$ 26.15
Weighted Average Exercise Price, Granted	$ 39.80
Weighted Average Exercise Price, Exercised	$ 22.88
Weighted Average Exercise Price, Forfeited	$ 30.90
Weighted Average Exercise Price, Balance at September 30, 2013	$ 26.61
Weighted Average Exercise Price, Exercisable at September 30, 2013	$ 25.49
Aggregate Intrinsic Value of Stock Option Awards, Balance at September 30, 2013	$ 97,903
Aggregate Intrinsic Value of Stock Option Awards, Exercisable at September 30, 2013	$ 79,895

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Inventories (Tables)

3 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market (estimated net realizable value) and consisted of the following (in thousands):

	September 30,		June 30,
	2013		2013
Raw materials	$	46,868	$	38,181
Finished goods		10,425		11,767
	$	57,293	$	49,948

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities
Net income	$ 34,939	$ 6,053
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation costs	7,042	8,467
Depreciation and amortization	3,244	2,462
Acquired intangibles amortization	262	240
Accretion and remeasurement of contingent consideration liability	258	287
Deferred taxes	188	(563)
Non-cash interest income	(219)
Changes in operating assets and liabilities:
Accounts receivable, net	(5,485)	6,100
Inventories	(7,345)	1,840
Prepaid expenses and other current assets	(497)	(580)
Other assets	201	908
Accounts payable	(2,175)	(4,485)
Accrued compensation	(8,654)	(971)
Income taxes	4,502	1,378
Other accrued liabilities	2,659	8,478
Net cash provided by operating activities	28,920	29,614
Cash flows from investing activities
Proceeds from sales of non-current investments		2,000
Acquisition of business, net of cash acquired		(5,000)
Purchases of property and equipment	(10,014)	(16,082)
Net cash used in investing activities	(10,014)	(19,082)
Cash flows from financing activities
Purchases of treasury stock	(49,997)	(2,554)
Proceeds from issuance of shares	7,713	718
Excess tax benefit from share-based compensation	1,329
Payroll taxes for deferred stock units	(1,682)	(812)
Net cash used in financing activities	(42,637)	(2,648)
Net (decrease) increase in cash and cash equivalents	(23,731)	7,884
Cash and cash equivalents at beginning of period	355,303	305,005
Cash and cash equivalents at end of period	331,572	312,889
Supplemental disclosures of cash flow information
Cash paid for income taxes	$ 6,564	$ 1,683

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Revenue Recognition

3 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Revenue Recognition

2. Revenue Recognition

We recognize revenue from product sales when there is persuasive evidence that an arrangement exists, delivery has occurred and title has transferred, the price is fixed or determinable, and collection is reasonably assured, which is generally upon shipment of the product. We accrue for estimated sales returns, incentives, and other allowances at the time we recognize revenue. Our products contain embedded firmware and software that allows for further differentiation and customer integration, which together with our ASIC chip, delivers the essential functionality of our products and, as such, software revenue recognition guidance is not applicable.

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Auction Rate Securities

3 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Auction Rate Securities

5. Auction Rate Securities

Our ARS investments have failed to settle in auctions and are not liquid. In the event we need to access these funds prior to their maturity, we will not be able to do so without a loss of principal, unless redeemed by the issuers or a future auction on these investments is successful. During the three months ended September 30, 2013, none of our ARS investments were redeemed.

As there are currently no active markets for our various failed ARS investments, we have estimated the fair value as of September 30, 2013 using a trinomial discounted cash flow analysis. The analysis considered, among others, the following factors:

• the collateral underlying the security investments;

• the creditworthiness of the counterparty;

• the timing of expected future cash flows;

• the probability of a successful auction in a future period;

• the underlying structure of each investment;

• the present value of future principal and interest payments discounted at rates considered to reflect current market conditions;

• a consideration of the probabilities of default, passing a future auction, or redemption at par for each period; and

• estimates of the recovery rates in the event of default for each investment.

When possible, our failed ARS investments were compared to other observable market data or securities with similar characteristics. Our estimate of the fair value of our ARS investments could change materially from period to period based on future market conditions.

Contractual maturities for our ARS investments are generally greater than five years, with fair value of $12.4 million maturing from calendar years 2015 to 2017, $3.1 million maturing from calendar years 2043 to 2045, and $2.0 million having no maturity date. Of our ARS investments, $5.5 million par value are investment grade, and the remaining $18.5 million par value are below investment grade.

The various types of ARS investments we held as of September 30, 2013, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value, consisted of the following (in thousands):

			Other-than-
			temporary
	Original Cost		Impairment in			New Cost		Unrealized			Fair
	Basis		Retained Earnings			Basis		Gain/(Loss)			Value
Student loans	$	3,500	$	(179	)	$	3,321	$	(172	)	$	3,149
Credit linked notes		13,500		(8,352	)(1)		5,148		5,318			10,466
Preferred stock		5,000		(5,000	)		—		2,000			2,000
Municipals		2,000		(83	)		1,917		4			1,921
Total ARS	$	24,000	$	(13,614	)	$	10,386	$	7,150		$	17,536

(1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $415,000 on non-current investments. Accretion is reclassified from accumulated other comprehensive income and recorded in the condensed consolidated statements of income as non-cash interest income.

The various types of ARS investments we held as of June 30, 2013, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value, consisted of the following (in thousands):

			Other-than-
			temporary
	Original Cost		Impairment in			New Cost		Unrealized			Fair
	Basis		Retained Earnings			Basis		Gain/(Loss)			Value
Student loans	$	3,500	$	(179	)	$	3,321	$	(168	)	$	3,153
Credit linked notes		13,500		(8,571	)(1)		4,929		4,980			9,909
Preferred stock		5,000		(5,000	)		—		2,000			2,000
Municipals		2,000		(83	)		1,917		(10	)		1,907
Total ARS	$	24,000	$	(13,833	)	$	10,167	$	6,802		$	16,969

(1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $196,000 on non-current investments. Accretion is reclassified from accumulated other comprehensive income and recorded in the condensed consolidated statements of income as non-cash interest income.

The ARS investments in each of the above tables with unrealized losses have been in a continuous unrealized loss position for more than 12 months.

We have accounted for all of our ARS investments as non-current as we are not able to reasonably determine when the ARS markets will recover or be restructured. Based on our ability to access our cash and cash equivalents, our expected operating cash flows, and our other sources of cash, we do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before the recovery of the amortized cost basis. We will continue to monitor our ARS investments and evaluate our accounting for these investments quarterly.

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Net Income Per Share

3 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Net Income Per Share

3. Net Income Per Share

The computation of basic and diluted net income per share was as follows (in thousands, except per share data):

	Three Months Ended
	September 30,
	2013		2012
Numerator:
Net income	$	34,939	$	6,053
Denominator:
Shares, basic		32,958		32,941
Effect of dilutive share-based awards		2,062		1,073
Shares, diluted		35,020		34,014
Net income per share:
Basic	$	1.06	$	0.18
Diluted	$	1.00	$	0.18

Our basic net income per share amounts for each period presented have been computed using the weighted average number of shares of common stock outstanding. Our diluted net income per share amounts for each period presented include the weighted average effect of potentially dilutive shares. We use the “treasury stock” method to determine the dilutive effect of our stock options, deferred stock units, or DSUs, market stock units, or MSUs, and convertible notes.

Dilutive net income per share amounts do not include the weighted average effect of 503,115 and 3,990,394 share-based awards that were outstanding during the three months ended September 30, 2013 and 2012, respectively. These share-based awards were not included in the computation of diluted net income per share because their effect would have been antidilutive.

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Product Warranties, Indemnifications, and Contingencies - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2013
Commitments And Contingencies Disclosure [Abstract]
Minimum warranty period of products	12 months

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Segment, Customers, and Geographic Information (Tables)

3 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Net Revenue within Geographic Areas Based on Customers' Locations

Net revenue within geographic areas based on our customers’ locations for the periods presented was as follows (in thousands):

	Three Months Ended
	September 30,
	2013		2012
China	$	107,366	$	84,910
South Korea		69,158		6,372
Taiwan		32,300		15,892
Japan		12,079		13,781
United States		495		5,005
Other		1,209		1,081
	$	222,607	$	127,041

Net Revenue from External Customers

Net revenue from external customers for each group of similar products was as follows (in thousands):

	Three Months Ended
	September 30,
	2013		2012
Mobile product applications	$	162,664	$	64,616
PC product applications		59,943		62,425
	$	222,607	$	127,041

Major Customers' as Percentage of Net Revenue

Net revenue from major customers as a percentage of total net revenue for the periods presented was as follows:

	Three Months Ended
	September 30,
	2013			2012
Customer A		22	%		*
Customer B		10	%		*

* Less than 10%

Major Customer Accounts Receivable as Percentage of Accounts Receivable

Major customer accounts receivable as a percentage of total accounts receivable at the dates presented were as follows:

	September 30,			June 30,
	2013			2013
Customer A		26	%		27	%
Customer B		12	%			*

* Less than 10%

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Fair Value - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $)	Sep. 30, 2013	Jun. 30, 2013
Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	$ 17,536,000	$ 16,969,000
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	326,066,000	350,521,000
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	326,066,000	350,521,000
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	17,536,000	16,969,000
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	17,536,000	16,969,000
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Contingent Consideration Liability Recorded for Business Combination [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability business combination fair value	$ 8,505,000	$ 8,247,000

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Auction Rate Securities - ARS Investments (Detail) (Auction Rate Securities [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Original Cost Basis	$ 24,000	$ 24,000
Other-than- temporary Impairment in Retained Earnings	(13,614)	(13,833)
New Cost Basis	10,386	10,167
Unrealized Gain/(Loss)	7,150	6,802
Fair Value	17,536	16,969
Student Loans [Member]
Schedule of Available-for-sale Securities [Line Items]
Original Cost Basis	3,500	3,500
Other-than- temporary Impairment in Retained Earnings	(179)	(179)
New Cost Basis	3,321	3,321
Unrealized Gain/(Loss)	(172)	(168)
Fair Value	3,149	3,153
Credit Linked Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Original Cost Basis	13,500	13,500
Other-than- temporary Impairment in Retained Earnings	(8,352)	(8,571)
New Cost Basis	5,148	4,929
Unrealized Gain/(Loss)	5,318	4,980
Fair Value	10,466	9,909
Preferred Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Original Cost Basis	5,000	5,000
Other-than- temporary Impairment in Retained Earnings	(5,000)	(5,000)
New Cost Basis
Unrealized Gain/(Loss)	2,000	2,000
Fair Value	2,000	2,000
Municipals [Member]
Schedule of Available-for-sale Securities [Line Items]
Original Cost Basis	2,000	2,000
Other-than- temporary Impairment in Retained Earnings	(83)	(83)
New Cost Basis	1,917	1,917
Unrealized Gain/(Loss)	4	(10)
Fair Value	$ 1,921	$ 1,907

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Purchased Intangibles - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Total amortization expense for intangible assets	$ 262	$ 240

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Segment, Customers, and Geographic Information - Net Revenue within Geographic Areas Based on Customers' Locations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 222,607	$ 127,041
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	107,366	84,910
South Korea [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	69,158	6,372
Taiwan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	32,300	15,892
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	12,079	13,781
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	495	5,005
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 1,209	$ 1,081

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Share-Based Compensation - Balance and Aggregate Intrinsic Value of DSUs (Detail) (Deferred Stock Units [Member], USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2013
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Unit Awards Outstanding, Balance at June 30, 2013	1,005,435
Stock Unit Awards, Granted	62,943
Stock Unit Awards, Delivered	(125,765)
Stock Unit Awards, Forfeited	(26,734)
Stock Unit Awards Outstanding, Balance at September 30, 2013	915,879
Aggregate Intrinsic Value, Balance at September 30, 2013	$ 39,859

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 883	$ 883
Property and equipment, accumulated depreciation	$ 38,577	$ 35,285
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	51,094,508	50,673,758
Common stock, shares outstanding	32,493,672	33,289,826
Common treasury shares	18,600,836	17,383,932

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Product Warranties, Indemnifications, and Contingencies

3 Months Ended

Sep. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Product Warranties, Indemnifications, and Contingencies

8. Product Warranties, Indemnifications, and Contingencies

Product Warranties

We generally warrant our products for a period of 12 months from the date of sale and estimate probable product warranty costs at the time we recognize revenue. Factors that affect our warranty liability include historical and anticipated rates of warranty claims, materials usage, rework, and delivery costs. However, we assess the adequacy of our warranty obligations each reporting period and adjust the accrued warranty liability on the basis of our estimates.

Indemnifications

In connection with certain third-party agreements we have executed in the past, we are obligated to indemnify the third party in connection with any technology infringement by us. We have also entered into indemnification agreements with our officers and directors. Maximum potential future payments cannot be estimated because these agreements do not have a maximum stated liability. However, historical costs related to these indemnification provisions have not been significant. We have not recorded any liability in our consolidated financial statements for such indemnification obligations.

Contingencies

We have in the past and may in the future receive notices from third parties that claim our products infringe their intellectual property rights. We cannot be certain that our technologies and products do not or will not infringe issued patents or other proprietary rights of third parties.

Any infringement claims, with or without merit, could result in significant litigation costs and diversion of management and financial resources, including the payment of damages, which could have a material adverse effect on our business, financial condition, and results of operations.

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 34,939	$ 6,053
Other comprehensive income:
Change in unrealized net gain on investments before reclassifications	567	1,133
Accretion of non-current investments	(219)
Net current-period other comprehensive income	348	1,133
Comprehensive income	$ 35,287	$ 7,186

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Current Assets:
Cash and cash equivalents	$ 331,572	$ 355,303
Accounts receivable, net of allowances of $883 at September 30, 2013 and June 30, 2013	153,939	148,454
Inventories	57,293	49,948
Prepaid expenses and other current assets	7,212	6,715
Total current assets	550,016	560,420
Property and equipment at cost, net of accumulated depreciation of $38,577 and $35,285 at September 30, 2013 and June 30, 2013, respectively	61,225	58,035
Goodwill	20,695	20,695
Purchased intangibles	12,848	13,110
Non-current investments	17,536	16,969
Other assets	21,648	22,037
Total assets	683,968	691,266
Current Liabilities:
Accounts payable	77,955	83,710
Accrued compensation	15,074	23,728
Income taxes payable	15,098	10,751
Other accrued liabilities	34,108	31,437
Total current liabilities	142,235	149,626
Notes payable	2,305	2,305
Other liabilities	17,944	17,480
Stockholders' Equity:
Common stock: $0.001 par value; 120,000,000 shares authorized, 51,094,508 and 50,673,758 shares issued, and 32,493,672 and 33,289,826 shares outstanding, at September 30, 2013 and June 30, 2013, respectively	51	51
Additional paid-in capital	553,509	539,170
Treasury stock: 18,600,836 and 17,383,932 common treasury shares at September 30, 2013 and June 30, 2013, respectively, at cost	(510,157)	(460,160)
Accumulated other comprehensive income	7,150	6,802
Retained earnings	470,931	435,992
Total stockholders' equity	521,484	521,855
Liabilities and stockholders' equity	$ 683,968	$ 691,266

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Segment, Customers, and Geographic Information - Net Revenue from External Customers (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Revenue from External Customer [Line Items]
Net revenue	$ 222,607	$ 127,041
Mobile Product Applications [Member]
Revenue from External Customer [Line Items]
Net revenue	162,664	64,616
PC Product Applications [Member]
Revenue from External Customer [Line Items]
Net revenue	$ 59,943	$ 62,425

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Purchased Intangibles (Tables)

3 Months Ended

Sep. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Life, Gross Carrying Value of Purchased Intangible Assets, and Related Accumulated Amortization

The following table summarizes the life, the gross carrying value of our purchased intangible assets, and the related accumulated amortization as of September 30, 2013 and June 30, 2013 (in thousands):

		September 30,			June 30,
	Life	2013			2013
In-process research and development	To be determined	$	8,900		$	8,900
Customer relationships	5 years		3,800			3,800
Licensed technology and other	5 years		1,335			1,335
Patents	5 years		100			100
			14,135			14,135
Accumulated amortization			(1,287	)		(1,025	)
Purchased intangibles, net		$	12,848		$	13,110

Schedule of Expected Annual Aggregate Amortization Expense

The following table presents expected annual aggregate amortization expense as of September 30, 2013 (in thousands):

Remainder of 2014	$	785
2015		1,047
2016		1,047
2017		1,047
2018		22
To be determined		8,900
Future amortization	$	12,848

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Fair Value (Tables)

3 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy consisted of the following (in thousands):

	September 30,				June 30,
	2013				2013
	Level 1		Level 3		Level 1		Level 3
Assets:
Money market	$	326,066	$	—	$	350,521	$	—
Auction rate securities		—		17,536		—		16,969
Total available-for-sale securities	$	326,066	$	17,536	$	350,521	$	16,969
Liabilities:
Contingent consideration liability recorded for business combination	$	—	$	8,505	$	—	$	8,247

Changes in Fair Value of Level 3 Financial Assets

Changes in fair value of our Level 3 financial assets as of September 30, 2013 were as follows (in thousands):

Balance as of June 30, 2013	$	16,969
Net unrealized gain		567
Balance as of September 30, 2013	$	17,536

Changes in Fair Value of Level 3 Contingent Consideration Liability

Changes in fair value of our Level 3 contingent consideration liability as of September 30, 2013 were as follows (in thousands):

Balance as of June 30, 2013	$	8,247
Accretion and remeasurement		258
Balance as of September 30, 2013	$	8,505

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Share-Based Compensation - Stock Options - Additional Information (Detail) (Stock Options [Member], USD $)	Sep. 27, 2013
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of stock option outstanding calculated using the closing price of common stock	$ 43.52

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Purchased Intangibles - Summary of Life, Gross Carrying Value of Purchased Intangible Assets, and Related Accumulated Amortization (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Jun. 30, 2013
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 14,135	$ 14,135
Accumulated amortization	(1,287)	(1,025)
Future amortization	12,848	13,110
In-process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	8,900	8,900
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years
Intangible assets	3,800	3,800
Licensed Technology and Other [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years
Intangible assets	1,335	1,335
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years
Intangible assets	$ 100	$ 100

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Inventories - Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 46,868	$ 38,181
Finished goods	10,425	11,767
Total Inventories	$ 57,293	$ 49,948

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Fair Value - Additional Information (Detail) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2013 Contingent Consideration Liability Recorded for Business Combination [Member] Other Noncurrent Liabilities [Member]	Jun. 30, 2013 Contingent Consideration Liability Recorded for Business Combination [Member] Other Noncurrent Liabilities [Member]	Sep. 30, 2013 Contingent Consideration Liability Recorded for Business Combination [Member] Other Current Liabilities [Member]	Jun. 30, 2013 Contingent Consideration Liability Recorded for Business Combination [Member] Other Current Liabilities [Member]
Fair Value Disclosures [Line Items]
Contingent consideration liability business combination fair value		$ 8,300,000	$ 8,100,000	$ 196,000	$ 196,000
Settlement of contingent consideration liability	5,000,000
Additional consideration paid to former stockholders based on sales of products, due	10,000,000
Transfer amount of assets or liabilities of level three	0
Transfer amount of assets or liabilities of level one	$ 0

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Auction Rate Securities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of ARS investment	Greater than five years
Auction Rate Securities with fair value maturing from 2015 to 2017	$ 12.4
Auction Rate Securities with fair value maturing from 2043 to 2045	3.1
Auction rate securities with fair value having no stated maturity	2.0
ARS investments, investment grade	5.5
ARS investments, below investment grade	18.5
Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity period one	2015
Maturity period two	2043
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity period one	2017
Maturity period two	2045
Auction Rate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
ARS investments redeemed at par	$ 0

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Other Accrued Liabilities

3 Months Ended

Sep. 30, 2013

Payables And Accruals [Abstract]

Other Accrued Liabilities

7. Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

	September 30, 2013		June 30, 2013
Customer obligations	$	16,910	$	16,291
Inventory obligations		6,463		6,333
Warranty		1,514		1,696
Other		9,221		7,117
	$	34,108	$	31,437

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Net Income Per Share - Basic and Diluted Net Income Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Numerator:
Net income	$ 34,939	$ 6,053
Denominator:
Shares, basic	32,958	32,941
Effect of dilutive share-based awards	2,062	1,073
Shares, diluted	35,020	34,014
Net income per share:
Basic	$ 1.06	$ 0.18
Diluted	$ 1.00	$ 0.18

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Share-Based Compensation - Share-Based Compensation and Related Tax Benefit Recognized in Consolidated Statement of Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	$ 7,042	$ 8,467
Income tax benefit on share-based compensation	1,972	2,218
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	254	243
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	3,927	3,911
Selling, General, and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	$ 2,861	$ 4,313

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Income Taxes

3 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

We account for income taxes under the asset and liability method. We consider the operating earnings of our foreign subsidiaries to be indefinitely invested outside the United States. Accordingly, no provision has been made for the federal, state, or foreign taxes that may result from future remittances of undistributed earnings of our foreign subsidiaries.

The provision for income taxes of $12.7 million and $2.5 million for the three months ended September 30, 2013 and 2012, respectively, represented estimated federal, foreign, and state income taxes. The effective tax rate for the three months ended September 30, 2013 was 26.6% and diverged from the combined federal and state statutory rate primarily because of foreign income taxed at lower tax rates and the federal research credit, partially offset by foreign withholding taxes, and net unrecognized tax benefits associated with qualified stock options. The effective tax rate for the three months ended September 30, 2012 was 29.2% and diverged from the combined federal and state statutory rate primarily because of foreign income taxed at lower tax rates, partially offset by foreign withholding taxes, net unrecognized tax benefit associated with qualified stock options, and a slight increase in the liability for unrecognized tax benefits related to uncertain tax positions.

Unrecognized Tax Benefits

The total liability for gross unrecognized tax benefits increased $146,000 during the three months ended September 30, 2013 to $8.4 million from $8.2 million at June 30, 2013 and is included in other liabilities on our condensed consolidated balance sheets. All of this amount would affect the effective tax rate on income from continuing operations, if recognized. The balance of interest and penalties accrued related to unrecognized tax benefits as of September 30, 2013 was $918,000 and increased by $5,000 from June 30, 2013. We classify interest and penalties as components of income tax expense.

In May 2011, we were notified by the Internal Revenue Service (Service) that our fiscal 2003 through 2006 and fiscal 2008 through 2010 would be subject to examination. The early periods were being audited in connection with a mandatory review of tax refunds in excess of $2.0 million when we carried back our fiscal 2008 net operating loss. In March 2013, we received the Revenue Agent’s Report resolving our examination with the Service and paid an assessment that had no material impact to our condensed consolidated financial statements. Our case is pending review by the Joint Committee of Taxation, which we anticipate to conclude in our fiscal 2014. Any prospective adjustments to our unrecognized tax benefits will be recorded as an increase or decrease to income tax expense and cause a corresponding change to our effective tax rate. Accordingly, our effective tax rate could fluctuate materially from period to period.

On January 2, 2013, President Barack Obama signed into law The American Taxpayer Relief Act of 2013 (The Act). The Act extends the research credit for two years retroactively from January 1, 2012 through December 31, 2013. As such, we will only recognize six months of tax benefit in our current fiscal year.

Our major tax jurisdictions are the United States, California, and Hong Kong SAR, and fiscal 2003 onward remain subject to examination by one or more of these jurisdictions.

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Inventories

3 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

Inventories

6. Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market (estimated net realizable value) and consisted of the following (in thousands):

	September 30,		June 30,
	2013		2013
Raw materials	$	46,868	$	38,181
Finished goods		10,425		11,767
	$	57,293	$	49,948

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Basis of Presentation

3 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC, and U.S. generally accepted accounting principles, or U.S. GAAP. However, certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such SEC rules and regulations. In our opinion, the financial statements include all adjustments, which are of a normal and recurring nature, necessary for the fair presentation of the results of the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future period. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

The consolidated financial statements include our financial statements and those of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

Our fiscal year is the 52- or 53-week period ending on the last Saturday in June. Our fiscal 2014 and 2013 are 52-week periods ending on June 28, 2014 and June 29, 2013, respectively. The quarterly fiscal periods presented in this report were 13-week periods for the three months ended September 28, 2013 and September 29, 2012. For ease of presentation, the accompanying consolidated financial statements have been shown as ending on calendar quarter end dates for all annual, interim, and quarterly financial statement captions, unless otherwise indicated.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, allowance for doubtful accounts, cost of revenue, inventories, loss on purchase commitments, product warranty, share-based compensation costs, provision for income taxes, deferred income tax asset valuation allowances, uncertain tax positions, tax contingencies, goodwill, intangible assets, investments, contingent consideration liability, and loss contingencies. We base our estimates on historical experience, applicable laws and regulations, and various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Recently Issued Accounting Pronouncements

There are no new accounting pronouncements that are expected to have a material impact on our condensed consolidated financial statements.

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Segment, Customers, and Geographic Information - Major Customers' as Percentage of Net Revenue (Detail) (Sales Revenue, Net [Member])	3 Months Ended
	Sep. 30, 2013 Customer A [Member]	Sep. 30, 2013 Customer B [Member]	Sep. 30, 2012 Maximum [Member] Customer A [Member]	Sep. 30, 2012 Maximum [Member] Customer B [Member]
Revenue, Major Customer [Line Items]
Percentage of net revenue	22.00%	10.00%	10.00%	10.00%

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Share-Based Compensation - Market Stock Units - Additional Information (Detail) (Market Stock Units [Member], USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended	3 Months Ended
	Nov. 30, 2012	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, tranche one	1 year
Vesting period, tranche two	2 years
Vesting period, tranche three	3 years
Potential payout range		100.00%
Potential payout adjustment ratio	2
Number of MSUs granted		0
Shares under our MSU awards delivered		0
Shares under our MSU awards forfeited		0
Weighted average grant date fair value for the MSUs granted		$ 25.82
Unrecognized share-based compensation cost		$ 1.3
Unrecognized share-based compensation, period for recognition		1 year
Aggregate intrinsic value of MSUs		$ 2.9
Aggregate intrinsic value of stock option outstanding calculated using the closing price of common stock		$ 43.52
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential payout range	0.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential payout range	200.00%

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Fair Value - Changes in Fair Value of Level 3 Financial Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]
Beginning balance	$ 16,969
Net unrealized gain	567
Ending balance	$ 17,536

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Purchased Intangibles

3 Months Ended

Sep. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Purchased Intangibles

13. Purchased Intangibles

The following table summarizes the life, the gross carrying value of our purchased intangible assets, and the related accumulated amortization as of September 30, 2013 and June 30, 2013 (in thousands):

		September 30,			June 30,
	Life	2013			2013
In-process research and development	To be determined	$	8,900		$	8,900
Customer relationships	5 years		3,800			3,800
Licensed technology and other	5 years		1,335			1,335
Patents	5 years		100			100
			14,135			14,135
Accumulated amortization			(1,287	)		(1,025	)
Purchased intangibles, net		$	12,848		$	13,110

Amortization of the purchased intangibles commenced in fiscal 2013. The total amortization expense for the purchased intangible assets was $262,000 and $240,000 for the three ended September 30, 2013, and 2012, respectively. This amortization expense was included in our condensed consolidated statements of income as acquired intangibles amortization.

The following table presents expected annual aggregate amortization expense as of September 30, 2013 (in thousands):

Remainder of 2014	$	785
2015		1,047
2016		1,047
2017		1,047
2018		22
To be determined		8,900
Future amortization	$	12,848

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Share-Based Compensation

3 Months Ended

Sep. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

9. Share-Based Compensation

Share-based compensation and the related tax benefit recognized in our condensed consolidated statements of income were as follows (in thousands):

	Three Months Ended September 30,
	2013		2012
Cost of revenue	$	254	$	243
Research and development		3,927		3,911
Selling, general, and administrative		2,861		4,313
Total	$	7,042	$	8,467
Income tax benefit on share-based compensation	$	1,972	$	2,218

Historically, we have issued new shares in connection with our share-based compensation plans; however, treasury shares were also available for issuance as of September 30, 2013, including shares repurchased under our common stock repurchase program.

Stock Options

Stock option activity, including stock options granted, exercised, and forfeited, and weighted average exercise prices for options outstanding and exercisable, and the aggregate intrinsic value were as follows:

	Stock Option Awards Outstanding			Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)
Balance at June 30, 2013		6,030,287		$	26.15
Granted		124,535			39.80
Exercised		(337,079	)		22.88
Forfeited		(27,327	)		30.90
Balance at September 30, 2013		5,790,416			26.61	$	97,903
Exercisable at September 30, 2013		4,431,991		$	25.49	$	79,895

The aggregate intrinsic value was determined using the closing price of our common stock on September 27, 2013 of $43.52, and excludes the impact of stock options that were not in-the-money.

Deferred Stock Units

DSU activity, including DSUs granted, delivered, and forfeited, and the balance and aggregate intrinsic value of DSUs were as follows:

	DSU Awards Outstanding			Aggregate Intrinsic Value (in thousands)
Balance at June 30, 2013		1,005,435
Granted		62,943
Delivered		(125,765	)
Forfeited		(26,734	)
Balance at September 30, 2013		915,879		$	39,859

The aggregate intrinsic value was determined using the closing price of our common stock on September 27, 2013 of $43.52.

Of the shares delivered, 42,094 shares valued at $1.7 million were withheld to meet statutory minimum tax withholding requirements.

Market Stock Units

Our Amended and Restated 2010 Incentive Compensation Plan provides for the grant of MSU awards, which are a type of DSU award, to our employees, consultants, and directors. An MSU is a promise to deliver shares of our common stock at a future date based on the achievement of market-based performance requirements in accordance with the terms of the MSU grant agreement. We began granting MSUs in November 2012.

In November 2012, we granted MSUs to our executive officers, which were designed to vest in three tranches with the target quantity for each tranche equal to one-third of the total MSU grant. The first tranche vests based on a one-year performance period; the second tranche vests based on a two-year performance period; and the third tranche vests based on a three-year performance period. Performance is measured based on the achievement of a specified level of total stockholder return, or TSR, relative to the TSR of the Philadelphia Semiconductor Index, or SOX Index. The potential payout ranges from 0% to 200% of the grant target quantity and is adjusted on a two-to-one ratio based on our TSR performance relative to the SOX Index TSR performance using the following formula:

(100% + ([Synaptics TSR - SOX Index TSR] x 2))

Delivery of shares earned, if any, will take place on the dates provided in the applicable MSU grant agreement, assuming the grantee is still an employee, consultant, or director of our company at the end of the applicable performance period. On the delivery date, we withhold shares to cover statutory minimum tax withholding by delivering a net quantity of shares. Until delivery of shares, the grantee has no rights as a stockholder with respect to any shares underlying the MSU award.

During the three months ended September 30, 2013, there were no MSUs granted and there were no shares under our MSU awards delivered or forfeited. We valued the MSUs using the Monte Carlo simulation model and amortize the compensation expense over the three-year performance and service period. The weighted average grant date fair value for the MSUs granted was $25.82. The unrecognized share-based compensation cost for MSUs granted was approximately $1.3 million as of September 30, 2013, which will be recognized over a weighted average period of approximately 1.0 years. As of September 30, 2013, the aggregate intrinsic value of the MSUs was $2.9 million (assuming a 100% payout factor), which was determined using the closing price of our common stock on September 27, 2013 of $43.52.

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Net Income Per Share (Tables)

3 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Basic and Diluted Net Income Per Share

The computation of basic and diluted net income per share was as follows (in thousands, except per share data):

	Three Months Ended
	September 30,
	2013		2012
Numerator:
Net income	$	34,939	$	6,053
Denominator:
Shares, basic		32,958		32,941
Effect of dilutive share-based awards		2,062		1,073
Shares, diluted		35,020		34,014
Net income per share:
Basic	$	1.06	$	0.18
Diluted	$	1.00	$	0.18

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Subsequent Event

3 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

Subsequent Event

14. Subsequent Event

On October 9, 2013, we signed a definitive agreement to acquire a privately held company, Validity Sensors, Inc., or Validity, a leading provider of biometric fingerprint authentication solutions for smartphones, tablets, and notebooks. The transaction has been approved by our board of directors and Validity’s board of directors and is subject to customary closing conditions. There are no financing contingencies related to the acquisition. The transaction is expected to close in the second quarter of fiscal 2014. With this acquisition we expect to gain access to the fast growing biometrics market, significantly expanding our market opportunity and underscoring our commitment to making smart devices easier to use. The acquisition is expected to be completed by acquiring all capital stock and other vested and unvested equity interests of Validity for an aggregate base purchase price of $92.5 million. In addition, we may become obligated to make earn-out consideration payments of up to an additional $162.5 million, which is based primarily on sales, during certain time periods, ending on March 31, 2016, of certain products embodying Validity fingerprint sensor technology. The earn-out consideration will generally be payable in cash, but there are certain conditions that require payout of a portion of the earn-out consideration, if any, in our common stock. Pursuant to the merger agreement we expect to create a merger sub wholly owned by us that will be merged with and into Validity, with Validity surviving as our wholly owned subsidiary, and as part of the same overall transaction, Validity will then merge with and into another merger sub wholly owned by us, with such other merger sub surviving such merger as our wholly owned subsidiary. Pursuant to the Merger, the Company incurred approximately $1.0 million in direct acquisition costs during the September quarter which were expensed as incurred.

The acquisition will be accounted for using the purchase method of accounting in accordance with the business acquisition guidance. Under the purchase accounting method, the total estimated purchase consideration of the acquisition will be allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their relative fair values. The excess of the purchase consideration over the net tangible and identifiable intangible assets acquired and liabilities will be recorded as goodwill.

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Document and Entity Information	3 Months Ended
	Sep. 30, 2013	Oct. 25, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2013
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	SYNAPTICS INC
Entity Central Index Key	0000817720
Current Fiscal Year End Date	--06-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		33,090,816

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Basis of Presentation (Policies)

3 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, allowance for doubtful accounts, cost of revenue, inventories, loss on purchase commitments, product warranty, share-based compensation costs, provision for income taxes, deferred income tax asset valuation allowances, uncertain tax positions, tax contingencies, goodwill, intangible assets, investments, contingent consideration liability, and loss contingencies. We base our estimates on historical experience, applicable laws and regulations, and various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

There are no new accounting pronouncements that are expected to have a material impact on our condensed consolidated financial statements.