Touchscreen chip demand boosts Synaptics results, forecast

Reuters News
Posted: Apr 24, 2014 4:51 PM

(Reuters) - Synaptics Inc <SYNA.O> reported better-than-expected third-quarter results as demand from mobile phone makers for its touchscreen chips surged, sending its shares up more than 12 percent in after-hours trading.

Synaptics, which has gained market share as more and more mobile devices adopt the touch interface, also forecast current-quarter revenue that handily beat Wall Street estimates.

The company, which counts Samsung Electronics Co Ltd <005930.KS> among its top customers, also said it expects revenue to grow 37-40 percent in the year ending June 30, helped by strength in its fingerprint ID business.

Synaptics' fourth-quarter revenue forecast of $275-$295 million was ahead of analysts' average estimate of $231.3 million, according to Thomson Reuters I/B/E/S.

The company reported a net loss of $40.1 million, or $1.12 per share, in the third quarter ended March 31, mainly due the costs related acquisition of touchpad maker Validity Sensors Inc in October. It earned $36.4 million, or $1.07 per share, a year earlier.

Excluding items, the company earned 63 cents per share, beating analysts' average estimate of 57 cents per share.

The company said the fingerprint ID business added to non-GAAP earnings a quarter ahead of schedule.

Revenue rose 25 percent to $204.3 million, also beating analysts' average estimate of $192 million.

The company, which has been reducing its dependence on personal computers, said revenue from PC products fell 9 percent to $53.5 million.

Revenue from mobile customers rose 44 percent to $150.7 million at the company.

Shares were up at $72.00 in extended trading on Thursday. They closed at $64.01 on the Nasdaq.

(Reporting By Lehar Maan and Supantha Mukherjee in Bangalore; Editing by Savio D'Souza)