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Synaptics Shares Plunge 12% As Q1 Results Miss Estimates(dpa-AFX International Compact Via Acquire Media NewsEdge) WASHINGTON (dpa-AFX) - Shares of Synaptics, Inc. (SYNA) plunged more than 12 percent in extended trade on Thursday after the human interface solutions provider reported results for the first quarter that missed analysts' expectations. The company also reported a profit for the quarter that declined from last year, despite double-digit revenue growth, reflecting lower gross margins and higher expenses. The company also provided revenue guidance for the second quarter, in line with Street view. "Our performance in the first quarter reflected weaker than expected customer demand trends in the mobile market, offset by greater than anticipated demand in the PC market. The resulting overall product mix contributed to gross margins that were below our prior forecast," President and CEO Rick Bergman said in a statement. The Santa Clara, California-based maker of touchscreen pads for smartphones and tablets reported net income of $26.59 million or $0.68 per share for the first quarter, lower than $34.94 million or $1.00 per share in the prior year quarter. Excluding items, adjusted net income for the quarter was $40.88 million or $1.04 per share, compared to $45.91 million or $1.31 per share in the year-ago quarter. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.19 per share for the quarter. Analysts' estimate typically exclude special items. Net revenue for the quarter increased 27 percent to $282.74 million from $222.61 million in the same quarter, but missed sixteen Wall Street analysts' consensus estimate of $288.38 million. Revenue from mobile products, including all touchscreen, video display, and applicable fingerprint ID products, grew 23 to $199.7 million, and revenue from PC products, including applicable fingerprint ID products, increased 38 percent to $83.0 million from the prior-year quarter. Gross margin for the quarter contracted 660 basis points to 42.5 percent from the year-ago quarter. Total operating expenses for the quarter increased to $83.96 million from $62.09 million last year. Looking ahead to the second quarter, the company expects revenues in a range of $415 million to $450 million. Street is looking for quarterly revenues of $435.80 million. The company said December quarter revenue is expected to be up more than double year-over-year, citing the growth of its core business and the addition of Renesas SP Drivers. The company added that it closed the $475 million acquisition of Japanese display chip-maker Renesas SP Drivers, Inc. acquisition in late September, earlier than previously anticipated closure in fourth calendar quarter of 2014. "Considering seasonal market dynamics and customer ramp cycles, we expect downward sequential revenue trends in our core business from the September quarter," Bergman added. SYNA closed Thursday's regular trading session at $73.27, down $0.66 or 0.89% on a volume of 2.0 million shares. The stock plunged a further $9.00 or 12.28% in after hours trading. Copyright RTT News/dpa-AFX |