Cirrus Logic beat Wall Street expectations in its fiscal third quarter, but shares of the chipmaker fell more than 8 percent in after-hours trading.
Earnings were announced after markets closed. Shares of the Austin-based company slid 8.69 percent to $58.40 in after hours trading on Wednesday.
Cirrus Logic makes specialized low-power chips, many of which are incorporated into smartphones, tablets and other portable devices. The company employs about 1,200 people worldwide, with more than 600 in Austin.
The chipmaker is closely tied to Apple Inc. because the company supplies audio and voice chips used in the iPhone. Cirrus typically declines to name its biggest customer, but it is well established within the industry that it is Apple.
“Cirrus Logic delivered outstanding revenue, operating profit and earnings per share growth in the December quarter as demand for certain portable audio products accelerated,” CEO Jason Rhode said in a written statement. “The company is delighted to be on track to deliver our third consecutive year of more than 20 percent annual revenue growth.”
Cirrus reported net income of $122 million for the quarter ended Dec. 24, compared to $41.4 million for the same quarter a year ago.
Adjusted for one-time gains and costs, net income was $1.87 per share. That exceeded the average estimate of $1.63 per share by five analysts surveyed by Zacks Investment Research.
The company posted revenue of $523 million in the period, beating the consensus estimate of $495.2 million.
For its current quarter, Cirrus said it expects revenue of $300 million to $340 million, versus the consensus of $331.9 million.
Cirrus shares have climbed 13 percent since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $63.96, an increase of 83 percent in the last 12 months.