Austin-based chipmaker Cirrus Logic reported higher-than-expected revenue and profit in its fiscal second quarter, in large part due to demand for new Apple smartphones.
CEO Jason Rhode said in a letter to shareholders that the company’s $425 million in revenue in the quarter can be attributed to “accelerating demand for certain portable audio components ahead of new product launches.”
Though the company never publicly states it, Apple Inc. is Cirrus Logic's biggest customer and accounted for 82 percent of its sales in the company's fiscal second quarter. Its other customers include Motorola, Samsung and Sony.
“Our relationship with our largest shareholder remains outstanding, with design activity continuing on various products,” Rhode said.
Cirrus Logic develops low-power voice and audio chips not only for smartphones, but also for tablets and digital headphones.
“(It) was an exciting quarter for the company as a variety of smartphones and digital headsets utilizing our components were introduced and we began sampling many of our new innovative products with target customers,” Rhode said.
The chipmaker is also poised to launch chips in new markets, such as voice biometrics.
“We view voice biometrics as a disruptive technology with the potential to transform how we engage with the electronic devices in our day-to-day environment,” Rhode said. He said the company’s voice biometrics chip has been delivered from the factory and is “functioning as anticipated.”
Cirurs Logic experts to “sample” the product with key customers in its third quarter, which ends in December.
The company’s $425 million in second-quarter revenue was a 1 percent decline from a year ago. But it was higher than analysts had expected.
The chipmaker’s profit was $73.3 million, or $1.10 a share, a 14 percent decrease from a year ago. When accounting for one-time charges and gains, Cirrus Logic reported a profit of $89.9 million, or $1.36 per share.
Cirrus Logic’s share price in after-hours trading increased by over 3 percent, a sign that investors are happy with the company’s prospects for future growth. The company predicted revenue between $510 million and $550 million in its fiscal third quarter.
Cirrus Logic shares have climbed slightly since the beginning of the year, closing at $56.69 on Thursday.
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