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Strong Quarter Powers Synaptics

Strong Quarter Powers Synaptics

Revenue surges 65% for the maker of computer interface products.
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Revenue surges 65% for the maker of computer interface products.

Updated from Jan. 20

Shares of

Synaptics

(SYNA)

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.