What: Shares of Integrated Device Technology (NASDAQ:IDTI) rose as much as 13.4%, and traded up 8% as of 11:30 a.m. Tuesday after the company announced an acquisition and better-than-expected fiscal-second-quarter 2016 results.

So what: Quarterly revenue rose 24% year over year to $169.5 million, helped by strength in IDT's memory interface products, wireless charging, and a rebound in sales from communications products. That translated to an 11.8% increase in adjusted net income to $53.9 million, and a 12.9% jump in adjusted earnings per share to $0.35.

Analysts, on average, were only anticipating revenue of $166.1 million, and earnings of $0.31 per share.

In addition, IDT's board approved a $300 million increase to its existing share repurchase authorization, adding to its remaining authorization of $231 million as of the end of September. This new authorization will be funded through debt financing, and executed at an accelerated pace.

Integrated Device Technology CEO Greg Waters added, "We remain well-positioned to continue delivering excellent results and increasing returns to shareholders with a solid base of existing business, combined with exciting new product development and design-win traction."

Finally, in a separate press release IDT announced it has agreed to acquire privately held Zentrum Mikroelektronik Dresden AG (ZMDI) for a total consideration of $310 million in cash. Headquartered in Germany, ZMDI specializes in providing sensing and digital power semiconductor products primarily in the automotive and industrial markets. IDT expects to complete the acquisition before the end of calendar 2015. ZMDI is also expected to add $20 million to IDT's quarterly revenue at 57% gross margins, and be immediately accretive to earnings in the first full quarter following closing. 

Now what: During the subsequent conference call, Waters also offered fiscal-third-quarter guidance for revenue of $169 million to $177 million, assuming Communications segment growth of 9%, roughly flat revenue from the Computing end market, an 11% sequential decline form the Consumer end market, and a slight decrease in Wireless Charging due to customer ramp timing. In any case, consensus estimates predicted fiscal Q3 revenue near the bottom end of that range.

All things considered, it's hard to find anything not to like about Integrated Device Technology's latest results. With shares currently trading at a modest 19.3 times next year's expected earnings, it's no surprise the market is bidding IDT stock up today.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.