What happened

Shares of Synaptics (NASDAQ:SYNA) surged on Wednesday after the company reported strong fiscal first-quarter results. Synaptics beat analyst estimates across the board, and it provided solid second-quarter guidance. The stock was up about 15.5% at 12:45 p.m.

So what

Synaptics reported first-quarter revenue of $417.4 million, up 8% year over year and about $19 million higher than the average analyst estimate. Mobile products accounted for about 70% of revenue, with mobile revenue down 7% year over year to $292.9 million. PC products produced $65.3 million of revenue, up 19% year over year, while Internet of Things revenue totaled $59.2 million. IoT revenue includes $20.2 million of revenue formerly classified as mobile revenue.

Synaptics chips.

Image source: Synaptics.

Non-GAAP (generally accepted accounting principles) earnings per share came in at $1.03, up 7% year over year and $0.07 better than analysts expected. Synaptics reported a GAAP net loss of $0.79 per share, mostly due to acquisition-related items.

Synaptics expects to produce second-quarter revenue between $410 million and $450 million, compared to a consensus analyst estimate of $430 million. Mobile products are expected to account for 62% of revenue, with PC products and IoT products accounting for 14% and 24%, respectively.

Now what

Synaptics CEO Rick Bergman commented on the company's IoT push: "We completed two major acquisitions during the period, and our entry into the fast growing consumer IoT market is off to a strong start. Contributions from this new platform are expected to approach a quarter of Synaptics' total revenue in the coming quarter, while also driving increased customer diversification over time."

Shares of Synaptics are still down about 34% from their 52-week high, and they're down 58% since peaking in 2015. A strong first quarter and solid guidance led investors to undo some of the damage, but Synaptics still has a long way to go.