Austin-based Cirrus Logic on Thursday saw its shares surge after the chipmaker beat Wall Street expectations for its fiscal second quarter and boosted its revenue forecast for the rest of the year.
Cirrus Logic executives said strong demand for portable audio products helped drive the company's successful quarter.
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 of those in Austin, company officials say.
Cirrus reported net income of $78.1 million for the quarter, or $1.19 per share. Adjusted for one-time gains and costs, net income was $1.35 per share, the company said. That exceeded Wall Street's expectations, as the average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.
Cirrus Logic reported revenue of $428.6 million in the period, also topping Wall Street forecasts. Six analysts surveyed by Zacks had expected $396.2 million.
“Robust demand for portable audio products drove Cirrus Logic’s revenue above the high end of guidance,” Cirrus Logic president and CEO Jason Rhode said in a written statement. “We are extremely pleased with our progress in the September quarter as we began volume shipments of our new digital headset solution, expanded our share with boosted amplifiers and ramped production in a mid-tier smartphone at another leading customer. With a broad portfolio of components that span the entire audio signal chain we believe we are well positioned to capitalize on a variety of growth vectors in the coming years.”
For the current quarter ending in January, Cirrus Logic said it now expects revenue in the range of $475 million to $515 million. Analysts surveyed by Zacks had expected revenue of $436 million.
Cirrus Logic shares have climbed 75 percent since the beginning of the year. In after-hours trading on Thursday following the earnings report, Cirrus Logic saw its share price rise $3.21, or 6.2 percent, to $55.
Additional material from the Associated Press.
News on Open Source is free and unlimited. Access to the rest of 512tech.com comes with an American-Statesman digital subscription, which also includes myStatesman.com and the ePaper edition. Subscribe at statesman.com/subscribe.