Synaptics calls for lower revenue on 'economic slowdown'

Shares of Synaptics Inc. (SYNA) dropped more than 12% in the extended session Wednesday after the maker of human- interface hardware and software such as touchpads reported fiscal third-quarter adjusted earnings and revenue above Wall Street expectations, but called for a weaker current quarter due to "the currrent economic slowdown." Synaptics earned $10.4 million, or 26 cents a share, compared with $65 million, or $1.59 a share, in the year-ago quarter. Adjusted for one-time items, the company earned $1.89 a share. Revenue fell to $326.6 million, from $400 million a year ago. Analysts polled by FactSet expected Synaptics to earn an adjusted $1.86 a share on sales of $325 million. "Customer forecasts are being moderated in response to the current economic slowdown," Chief Financial Officer Dean Butler said. "At the same time, inventories are being worked down across the entire supply chain. As a result, we expect our June quarter revenue to decline sequentially, and we have begun to implement spending controls." The company guided for fiscal fourth-quarter revenue between $210 million and $240 million. The analysts surveyed by FactSet expect fiscal fourth-quarter revenue of $328 million.

-Claudia Assis

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05-03-23 1625ET

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