CRUS Beats Earnings Est, Outlook Modest - Analyst Blog
April 26 2013 - 8:01AM
Zacks
Cirrus Logic Inc.
(CRUS) reported fourth-quarter 2013 adjusted earnings of 50 cents
per share, surpassing the Zacks Consensus Estimate of 48 cents.
Revenue
Total revenue for the fourth
quarter soared 87.0% from the year-ago quarter to $206.9 million.
This apart, the Cirrus also expanded its footprint in the portable
audio segment and launched the company’s new LED lighting
products.
Segment wise, Audio Product
revenues surged 116.6% year over year to $196.1 million, while
Energy product revenues came in at $10.8 million, down 46.4% year
over year.
Operating
Results
Reported gross margin in the
quarter was 40.4% versus 56.4% in the year-ago quarter as a result
of higher costs.
Operating margin was 16.3% versus
18.9% in the year-ago quarter. The company’s total operating
expenses increased 20.1% on a year-over-year basis. Higher
operating expenses were mainly due to 24.8% and 14.3%
year-over-year increases in selling, general and administrative
(SG&A) expenses, and research and development (R&D),
respectively.
Net income on a GAAP basis was
$26.3 million or 39 cents per share compared with $50.9 million or
75 cents in the year-ago quarter.
Excluding the amortization of
acquisition-related intangible assets but including stock-based
compensation expense, non-GAAP net income for the third quarter was
50 per share compared with 31 cents in the year-ago quarter.
Balance Sheet
Cash and short-term investments
were $66.4 million versus $87.5 million in the previous quarter.
The company has no long-term debt.
Outlook
For the first quarter of fiscal
2014, the company expects revenues in the range of $150 million and
$170 million. This apart, gross margin is expected between 50.0%
and 52.0%, while the combined R&D and SG&A expenses are
expected to range between $51.0 million and $55.0 million.
Our Take
Cirrus posted a decent fourth
quarter, with the bottom line comprehensively beating the Zacks
Consensus Estimate. Although revenues were good for the quarter,
gross and operating margin took a hit, as the company was not able
to control expenses in the long run. We remain cautious about the
company, as the current global economic downturn might affect its
business potential going forward. Moreover, the company is faced
with stiff competition from the likes of Texas Instruments
Inc. (TXN), STMicroelectronics (STM),
ON Semiconductor (ONNN) having Zacks Rank#2.
The company has a Zacks Rank #5
(Strong Sell).
CIRRUS LOGIC (CRUS): Free Stock Analysis Report
ON SEMICON CORP (ONNN): Free Stock Analysis Report
STMICROELECTRON (STM): Free Stock Analysis Report
TEXAS INSTRS (TXN): Free Stock Analysis Report
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