What happened

Shares of Inphi (NASDAQ:IPHI) jumped on Wednesday after the semiconductor components and optical subsystems provider reported its third-quarter results. Inphi beat analyst estimates across the board, and it provided fourth-quarter guidance that was ahead of expectations. The stock was up 19.1% at 12:30 p.m. EDT.

So what

Inphi reported third-quarter revenue of $94.2 million, up 20.8% year over year and about $4.1 million higher than the average analyst estimate. The company pointed to higher demand for long-haul, metro, and data center products as the key growth driver.

A rising stock chart.

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Non-GAAP (adjusted) earnings per share came in at $0.45, up from $0.30 in the prior-year period and $0.08 higher than analysts were expecting. Gross margin rose 0.8 percentage points to 70.2% on an adjusted basis, thanks to favorable changes in product and revenue mix.

"The 50% year-on-year non-GAAP EPS growth in Q3, based on 21% year-on-year revenue growth, demonstrates the leverage in our operating model as we execute on our customer growth strategy," said Inphi CEO Ford Tamer in prepared remarks included in the earnings release.

Now what

Looking ahead, Inphi expects to produce revenue between $97.8 million and $101.8 million in the fourth quarter, along with non-GAAP EPS between $0.40 and $0.50. The revenue guidance range is entirely higher than the $95.35 million analysts were expecting, while the EPS range straddles the average analyst estimate of $0.43.

Including Wednesday's gain, Inphi stock is now up about 120% year to date.