Strong Quarter Powers Synaptics

Updated from Jan. 20

Shares of

Synaptics

(SYNA) - Get Report

shot higher after the company exceeded earnings estimates and said revenue would come in above current expectations.

Share were recently up $4.77, or 15.8%, to $35 on Instinet.

The maker of computer interface products said second-quarter profit grew to $9.7 million, or 33 cents a share, from $3.5 million, or 13 cents a share, a year earlier.

Revenue rose 65% to $56.5 million from $34.3 million a year earlier.

An analyst survey by Thomson First Call had expected the company to post earnings of 30 cents a share on revenue of $54 million.

"Our results reflect robust demand for portable digital music players during the holiday season as revenue outside of the PC market grew sharply to 43% of total revenue compared with 33% in the immediately preceding quarter," said Francis Lee, president and chief executive.

"Our performance in the notebook segment was also better than anticipated, as total PC revenue grew 26% sequentially, including contributions from our desktop and peripherals initiatives," Lee said.

The company said it was entering its March quarter with a "very strong" backlog of about $35 million and expected third-quarter revenue to be about flat with the second quarter.

However, that suggests revenue will easily beat the current analysts' estimates of $44.8 million.