Synaptics shares jump on strong 1Q results

Synaptics shares surge 10 percent after 1st-quarter earnings exceed expectations

• On 9:25 pm EDT, Thursday October 22, 2009

SANTA CLARA, Calif. (AP) -- Touchscreen technology maker Synaptics said Thursday its first-quarter net income fell 23 percent as a one-time tax charge offset growth in demand for mobile phone screens. But the results beat expectations and shares jumped after-hours.

Synaptic shares climbed $2.52, or 10.6 percent, to $26.19 in after-hours trading, after closing up 93 cents, or 4.1 percent, at $23.66.

Net income for the three months to Sept. 30 fell to $9.8 million, or 27 cents per share, from $12.7 million, or 36 cents per share, a year ago. Excluding items such as the $1.4 million tax charge and $4.8 million in share-based employee compensation, the company said adjusted income totaled 48 cents per share.

Revenue grew 4 percent to $119.6 million.

Analysts surveyed by Thomson Reuters were looking for adjusted earnings of 42 cents per share on revenue of $116 million.

The company said non-personal computer touchscreen revenue rose 39 percent from a year ago to $45 million.

"We saw a sharp year-over-year increase in our mobile touchscreen business," said Chief Executive Tom Tiernan. "We are working with the top handset makers to broaden penetration of capacitive touchscreen phones around the world."

The company maintained its full year fiscal 2010 revenue outlook between $495 million and $525 million, compared with analysts' $507.5 million average estimate.

Buzz up!