CORPORATE EARNINGS

Cirrus  Logic's earnings top expectations, shares soar

Austin company also raises guidance for current quarter.

Posted July 27th, 2016

Shares of Cirrus Logic soared nearly 15 percent after the company exceeded Wall Street expectations for its fiscal first quarter and issued higher sales guidance for the current quarter.

The Austin-based chipmaker is a supplier to Apple Inc., and the earnings report comes ahead of the iPhone 7 release scheduled for September.

The company released the report after markets closed. Shares rose 14.5 percent to $47.82 in after hours trading.

Cirrus Logic is a supplier of audio and voice chips for smartphones and other products, such as headphones. 

The company's biggest customer is Apple Inc., which is experiencing a slowdown in iPhone sales. Apple reported Tuesday that it sold 40.4 million iPhones in the last quarter, 15 percent fewer than a year ago. Cirrus Logic does not disclose who its biggest customer is, but it is well-known within the industry that it is Apple Inc.

For the quarter ended June 25, Cirrus Logic reported $259.4 million in revenue, down 8 percent from a year earlier, and 44 cents per share after one-time charges, down 19 percent from a year earlier. But the results topped analyst expectations of $236.4 million in revenue and 28 cents per share.

The company issued current-quarter sales guidance of $380 million to $410 million. That estimate far exceeded the consensus of analysts polled by Thomson Reuters of $322.6 million.

“We are pleased to have delivered results above the high end of our guidance for the June quarter, and we continue to expect strong growth in (fiscal 2017) driven by new product introductions,” Jason Rhode, Cirrus Logic CEO, said in a written  statement. “Our team has done a great job of developing a compelling portfolio of high performance audio and voice solutions, and we believe the company is well positioned to capitalize on these exciting markets into the future.”

Cirrus Logic is headquartered in downtown Austin and has about 1,300 employees worldwide, with about 700 of those  in Austin.

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