By Drew FitzGerald
Cirrus Logic Inc.'s (CRUS) fiscal fourth-quarter profit dropped
48% as a large year-earlier tax benefit masked the effect of
stronger sales of audio components.
The chip maker also affirmed its pessimistic current-quarter
outlook, which projected $150 million to $170 million of revenue
with gross margins between 50% and 52%.
Cirrus last week disappointed investors by delivering that
guidance, cutting its view of fiscal fourth-quarter results and
revealing a $23.3 million net inventory reserve. A major customer
prompted most of the weaker forecast by moving to one of Cirrus's
newer components.
Cirrus supplies analog chips for a wide array of electronics,
including Apple Inc. (AAPL) devices such as the iPad. It also
produces energy-efficiency products such as smart meters.
For the quarter ended March 31, Cirrus posted a profit of $26.4
million, or 39 cents a share, down from $50.8 million, or 75 cents
a share, a year earlier. Excluding stock-based compensation, tax
effects and other items, earnings rose to 59 cents a share from 36
cents. Analysts polled by Thomson Reuters had projected a 58-cent
profit.
Revenue jumped 87% to $206.9 million, in line with last week's
report. Sales of audio products more than doubled to $196.1
million, while the smaller energy-product segment reported sales at
$10.8 million, down 46%.
Gross margin narrowed to 40.4%, as the company projected last
week, from 56.4%.
Shares slipped 1.9% to $19.25 after hours. The stock had
declined 32% this year through Thursday's close.
Write to Drew FitzGerald at andrew.fitzgerald@dowjones.com
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