* Q3 adj EPS $0.46 vs est $0.42
* Sees Q4 adj shr $0.57-$0.67
* Says approved additional $100 mln stock repurchase
* Shares up 8 pct in extended trade (Recasts; adds analyst comments, conference call details, updates share movement)
BANGALORE, April 22 (Reuters) - Synaptics Inc (SYNA.O) posted better-than-expected quarterly results, said it remains the leader in the notebooks market and forecast a strong fourth quarter, sending the touchscreen technology provider's shares up 8 percent in extended trade.
For the fourth quarter, the company expects earnings of 57 cents to 67 cents a share, excluding items, on revenue of $136 million to $146 million.
Analysts were looking for earnings of 53 cents a share, excluding items, on revenue of $129.3, according to Thomson Reuters I/B/E/S.
"We expect to end fiscal 2010 on a high note based on demand for our product offerings," CEO Tiernan said in a statement.
"Synaptics is benefiting from a very robust demand from the PC and notebook market," Capstone Investments analyst Jeffrey Schreiner said.
Revenue from the PC market rose 44 percent to $72.9 million in the third quarter.
Synaptics' share in the notebook market for touch technology products remains in the 65 percent to 70 percent range, Chief Executive Tom Tiernan said in a conference call with analysts.
The company, which added customers such as Sony Ericsson (ERICb.ST) (6758.T) and Microsoft Corp (MSFT.O) during the quarter, said its revenue from non-PC markets was $43.3 million, with revenue from mobile applications slightly up sequentially as well as year-over-year.
Analyst Schreiner said revenue from handsets was nearly flat sequentially and the company might be continually losing share to rivals Cypress Semiconductor Corp (CY.O) and Atmel Corp (ATML.O).
Schreiner said Synaptics' revenue from handsets amounted to $41.8 million, compared with $41.3 million last quarter.
"I don't think the market is growing flat sequentially," Schreiner said. "This shows that they are starting to see some problems here in terms of market share loss."
Synaptics' share in the touch technology market, especially in handsets, has been under pressure due to rivals such as Cypress Semiconductor Corp (CY.O) and Atmel Corp (ATML.O).
"We see signs that Synaptics will lose quite a bit of share to Cypress and Atmel in this fiscal year and next year as well," Schreiner added.
Synaptics also approved an additional $100 million for the stock repurchase program expiring in April 2012.
For the third quarter, the company earned $11.6 million, or 33 cents a share, compared with $5.4 million, or 15 cents a share, a year ago.
Excluding items, Synaptics earned 46 cents a share.
Revenue rose 16 percent to $116.2 million.
Analysts on average were expecting earnings of 42 cents a share, excluding items, on revenue of $113 million, according to Thomson Reuters I/B/E/S.
Shares of the Santa Clara, California-based company rose 8 percent to $32.99 in trading after the bell. They closed at $30.50 Thursday on Nasdaq. (Reporting by Manasi Phadke in Bangalore; Editing by Anne Pallivathuckal, Unnikrishnan Nair)