What: Shares of interface specialist Synaptics (SYNA 5.45%) plunged today, down by 14% as of 12:40 p.m. ET, after the company reported fiscal third-quarter results that fell short of expectations.
So what: Revenue in the third quarter fell 16% to $402.5 million. Adjusted net income dropped 28% to $46 million, or $1.21 per share. Both figures were well below the Street's best guesses, which called for $450 million in top-line sales and $1.51 per share in bottom-line adjusted profits. Mobile continues to dominate Synaptics' business, generating 88% of revenue during the quarter.
Now what: CEO Rick Bergman called the results a "short-term pause" in growth, noting several areas of strength such as record sales of fingerprint authentication products and TDDI products. The company blamed a slowdown in the high-end smartphone market as well as ongoing weaknesses in the PC market. Guidance for the current quarter also disappointed investors, with sales expected in the range of $300 million to $340 million. The market was expecting $480 million in revenue.