Synaptics Boosts Q4 Revenue Outlook

(RTTNews) - Synaptics Inc. (SYNA) on Tuesday raised its fourth quarter revenue guidance, citing better than expected performance for both mobile and PC products.

The company said it now expects to report fourth quarter revenue in the range of $300.0 million to $310.0 million, up from its previous guidance of $275.0 million to $295.0 million.

Revenue for fiscal 2014 is now expected to be $933.0 million to $943.0 million, an increase of 41% to 42% compared to the prior year. Previously, the company expected to achieve top-line growth of 37% to 40% for fiscal 2014.

Analysts polled by Thomson REuters expected the company to post revenue of $285.75 million for the fourth quarter and $918.49 million for the fiscal year 2014.

Separately, Synaptics said that it has agreed to buy all of the outstanding equity of Renesas SP Drivers, Inc., the industry leader in small and medium-sized display driver ICs for smartphones and tablets, for about JPY48.5 billion, or $475 million.

For the year ended March 2014, Renesas SP Drivers' revenue were about $650 million. The combined business of Synaptics and Renesas SP Drivers is expected to create significant revenue and investment scale to drive future growth and operating leverage. The acquisition will be immediately accretive to Synaptics' non-GAAP EPS, excluding transaction related expenses.

The acquisition is expected to close in the fourth calendar quarter of 2014.