Cirrus Logis Inc.'s (CRUS) fiscal fourth-quarter profit soared
on a sharply higher tax benefit, though margins narrowed due to a
recent production snag.
Shares fell 6.7% to $15.45 as the semiconductor company forecast
current-quarter revenue of $88 million to $94 million, falling
short of the $99 million estimate of analysts polled by Thomson
Reuters.
The supplier of chips used in Apple Inc. (AAPL) devices such as
the iPod and iPad expects gross margin of 51% to 54% for the
current quarter, down from the 57.1% it had reported for the
year-earlier period, reflecting the production issue.
Two weeks ago, Cirrus disclosed manufacturing problems with a
new audio device that entered high-volume production last month,
which resulted in reduced margins and profits for the latest
period. The company has seen strong earnings growth amid sales and
margin growth in recent quarters.
For the quarter ended March 26, Cirrus reported a profit of
$130.4 million, or $1.80 a share, up from $20.4 million, or 31
cents a share, a year earlier. Excluding items such as income-tax
benefits and stock-based compensation, earnings rose to 22 cents
from 16 cents. Analysts had expected a 24-cent profit.
Revenue jumped 46% to $91.4 million, which the company said it
expected when it disclosed the production issue earlier this
month.
Gross margin narrowed to 50.3% from 56.3%, in line with this
month's lowered guidance.
Audio products revenue, which accounted for more than two-thirds
of the total, jumped 65% while energy products revenue increased
11%.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com