Synaptics (NASDAQ: SYNA) reported Q3 EPS of $1.49, $0.08 better than the analyst estimate of $1.41. Revenue for the quarter came in at $328.1 million versus the consensus estimate of $332.44 million.

Business Highlights

• GAAP net income and EPS were $5.0 million and $0.14, respectively
• Non-GAAP net income of $52.3 million
• Non-GAAP EPS of $1.49
• Completed the divestiture of mobile LCD TDDI business for $120 million

“Our focus on improving mix and controlling costs led to better than expected profitability in the March quarter despite revenue being slightly lower than anticipated as the initial impact from COVID-19 affected the supply chain and end-demand,” said Michael Hurlston, president and chief executive officer, Synaptics. “We continue to invest in our product portfolio with the goal to further improve margins and expect to remain well positioned with our customers when demand normalizes.”

GUIDANCE:

Synaptics sees Q4 2020 revenue of $260-290 million, versus the consensus of $304.48 million.

Business Outlook Dean Butler, chief financial officer of Synaptics, added, “With the TDDI divestiture completed, we are entering into the June quarter with a backlog of $240 million. Taking into consideration greater market uncertainty due to the ongoing impact from COVID-19, we believe that subsequent bookings, customer forecasts and product sell-in and sell-through patterns will result in revenue for the fourth quarter of fiscal 2020 to be in the range of $260 to $290 million. Based upon this guidance, we expect the revenue mix from mobile, IoT and PC products to be approximately 45 percent, 23 percent and 32 percent respectively.”

For earnings history and earnings-related data on Synaptics (SYNA) click here.