Cirrus 2Q sales miss Street view; shares plunge

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AUSTIN, Texas (AP) — Audio chip maker Cirrus Logic Inc. said Wednesday that its fiscal second-quarter net income fell 64 percent as revenue rose slightly but the cost of sales and research and development climbed by more.

The mid-point in the company’s guidance for third-quarter revenue fell short of analysts’ forecasts and Cirrus Logic’s shares tumbled in extended trading.

Net income for the three months to Sept. 24 came to $11.2 million, or 17 cents per share, down from $30.9 million, or 42 cents per share, a year ago.

Excluding stock-based compensation expenses and a provision for income taxes, adjusted earnings per share came to 33 cents, slightly beating the 32 cents expected by analysts polled by FactSet.

Revenue edged up 1 percent to $101.6 million from $100.6 million a year ago. That was short of the $102.7 million expected by analysts.

CEO Jason Rhode said that while the company is seeing softness due to a weak global economy, he expects “significant year-over-year revenue growth” in the current quarter.

The company forecast third-quarter revenue between $102 million and $108 million. Analysts had been expecting $108 million. In last year’s third quarter, Cirrus Logic posted $95.6 million in revenue.

Shares shed $2.24, or 13.2 percent, to $14.77 in after-hours trading, after closing down 99 cents, or 5.5 percent, at $17.01 in the regular session.