Though Synaptics (NASDAQ: SYNA) isn’t new to advanced mobile identification technologies, its recently announced optical-based fingerprint sensors could prove to be a much-needed breakthrough in the fast-growing market.
What makes Synaptics’ new sensor unique is that it is, according the company, “capable of high-resolution scanning through 1mm of full cover glass.” With the positioning of the sensor under a smartphone’s or tablet’s display cover, Synaptics has made it possible to manufacture button-free designs.
Without what are now the requisite button cut-outs for a device’s ID sensor, Synaptics says its upgraded design “excels with wet finger performance, and being protected by glass, is durable, scratchproof, waterproof, and eliminates ESD concerns.” Electrostatic discharge, or ESD, can occur with sensor usage, and can reduce a device’s functionality.
Already the ID FS9100 optical fingerprint sensors are rumored to be the solution of choice in Samsung‘s Galaxy 8 smartphone, which is expected to be released next year. A deal with Samsung wouldn’t be surprising given Synaptics longtime relationship with the world’s leading smartphone manufacturer.
As last quarter demonstrated, mobile sales drive the majority of Synaptics’ revenue. Unfortunately, it doesn’t break out specific smartphone display and ID sensor sales, but last quarter’s$285.4 million in mobile sales — though it represented a year-over-year decline of 33% — was still 88% of its $323.9 million in total revenue. That’s a lot riding on mobile, and much of that is likely from smartphone components. Which makes the success of its new under-the-glass sensor critical for Synaptics if it’s going to get its quarterly revenue declines in the rear-view mirror.
Synaptics stock was trading up 1% at 1:25 p.m. Thursday.
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