Cirrus Logic Inc. (CRUS: Quote) on Thursday reported better-than-expected results for the third quarter on strong demand for its audio products, but forecast revenues for the fourth quarter below analysts’ estimates. The company’s shares gained more than 1 percent in extended trade following the announcement of its third-quarter results.
Austin, Texas-based Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a range of audio and energy markets.
Jason Rhode, president and chief executive officer of Cirrus Logic said, “Q3 was a great quarter for Cirrus Logic as demand for multiple new products in portable audio drove revenue above our expectations. During the quarter, we gained traction with our portable audio and LED lighting products, where we began shipping in additional SKUs and customers.”
The company’s third-quarter net income was $67.86 million or $0.99 per share, up from $16.73 million or $0.25 per share last year.
Adjusted income was $112.80 million or $1.64 per share, compared to adjusted income of $28.85 million or $0.43 per share in the same period last year. On average, eight analysts polled by Thomson Reuters expected the company to earn $1.41 per share for the quarter. Analysts’ estimates typically exclude special items.
Net revenues for the quarter more than doubled to $310.13 million from $122.37 million in the same period last year. Analysts had a consensus revenue estimate of $285.96 million.
The strong revenue growth reflects revenues from Cirrus Logic’s audio products that almost tripled from the prior-year period to $300.01 million. Meanwhile, energy products revenue declined 40 percent to $10.12 million.
The latest quarter’s results include restructuring and other costs of $3.29 million.
Looking ahead to the fourth quarter, Cirrus Logic expects revenues between $200 million and $220 million, up more than 80 percent year-over-year and down more than 35 percent sequentially. Analysts currently estimate revenues of $234.93 million.
The company projects gross margin for the quarter in a range of 50 percent to 52 percent.
Cirrus Logic noted that shipments in late December were higher than anticipated, driving revenue $25 million above the midpoint of its guidance for the third quarter. As a result of the higher revenue base in the third quarter, the company now anticipates the sequential decline in fourth-quarter revenues to be more pronounced.
CEO Rhode said, “Our outlook for the year remains on track, and we are positioned well for further growth in FY14. We continue to see significant opportunities to grow our business with both new and existing customers.”
Cirrus Logic, a key supplier to Apple Inc. (AAPL), said it remained dedicated to diversifying its customer base, though it would take time and resource commitment. The company noted that these efforts were now beginning to pay off in the audio product line where it was now shipping catalog devices to several mobile phone manufacturers.
CRUS closed Thursday’s trading at $26.71, down $3.24 or 10.82 percent on a volume of 9.19 million shares. In after-hours, the stock gained $0.29 or 1.09 percent to $27.00.
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by RTT Staff Writer
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