Synaptics (NASDAQ: SYNA) reported Q3 EPS of $2.03, $0.14 better than the analyst estimate of $1.89. Revenue for the quarter came in at $325.8 million versus the consensus estimate of $325.97 million.

Q3’21 Financial Results and Recent Business Highlights

• Revenue of $325.8 million
• GAAP gross margin of 47.7 percent
• Record non-GAAP gross margin of 55.1 percent
• GAAP diluted earnings per share of $0.35
• Non-GAAP diluted earnings per share of $2.03
• Record Cash Flow from Operations of $136.4 million

Net revenue for the third quarter of fiscal 2021 was $325.8 million. GAAP net income for the third quarter of fiscal 2021 was $13.8 million, or $0.35 per diluted share. Non-GAAP net income for the third quarter of fiscal 2021 was $79.3 million, or $2.03 per diluted share.

“Synaptics started 2021 with a strong March quarter, driven by record gross margins, record PC revenue and net income and EPS near the upper end of our guidance range,” said Michael Hurlston, Synaptics’ president and CEO. “Our strategy to shift the company toward our IoT products where we see higher gross and operating margins is fundamentally improving the financial foundation of the company. That foundation enables us to be more aggressive in the market, growing share in our existing base while also engaging new markets and customers, better positioning us to drive revenue and earnings growth over the long haul.”

GUIDANCE:

Synaptics sees Q4 2021 revenue of $310-340 million, versus the consensus of $311.34 million.

Business Outlook

Dean Butler, Chief Financial Officer of Synaptics, added, “For our fourth fiscal quarter, we expect revenue to outperform typical seasonality and our gross margin to strengthen as IoT continues to its growth trajectory. Our backlog remains strong with our customer demand continuing to outpace supply availability; we have factored in the current semiconductor supply chain constraints into our June quarter guidance.”

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