January 22, 2009 / 11:33 PM / 10 years ago

UPDATE 2-Synaptics Q2 profit beats Street, shares rise

* Q2 Adj EPS 84 cents, revenue beats estimates

* Q2 Mobile phone revenue up 14 times

* Sees Q3 adj shr above estimates

* Shares rise more than 11 pct (Adds details from conference call)

Jan 22 (Reuters) - Touchscreen technology maker Synaptics Inc (SYNA.O) reported a better-than-expected quarterly profit and forecast third-quarter profit above expectations on continued growth in its mobile handheld segment, sending its shares up more than 11 percent.

Synaptics has been tapping the mobile phone market as the laptop market, where its technology had seen widespread adoption, began to slow. Touchscreens have gained in popularity since the success of Apple Inc’s (AAPL.O) iPhone.

“Our diversification strategy to penetrate new target markets is clearly working, differentiating us from other PC-driven companies within the current economic and business environment,” Chief Executive Francis Lee said in a conference call.

Second quarter mobile phone revenue rose 14 times, Lee said. Revenue from PC applications fell about 4 percent, reflecting the softness in the notebook market.

Second-quarter ended Dec. 31, net income surged 49 percent to $21.2 million, or 60 cents per share. Revenue rose 43 percent to $141.5 million.

The company expects a third-quarter profit of 27 cents to 37 cents a share, excluding items, while analysts expect earnings of 25 cents a share. Revenue is expected to be $88 million to $98 million.

The company said its ClearPad technology would be used in a NTT DoCoMo (9437.T) mobile phone, marking its first contract win with NEC Mobile.

Synaptics touchscreen technology is also used in Research In Motion’s RIM.TO Blackberry Storm and HTC Corp’s (2498.TW) G1, which uses Google’s (GOOG.O) Android software.

Shares of the company were up at $24.01 in trading after the bell. They closed at $21.58 Thursday on Nasdaq.

For the alerts, double-click [ID:nWNAB2625] [ID:nWNAB2675] (Reporting by S. John Tilak in Bangalore; Editing by Deepak Kannan, Savio D’Souza)

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