AUSTIN, Texas (AP) — Cirrus Logic Inc. on Monday reported a drop in first-quarter earnings but results still edged above expectations and the chipmaker forecast a big increase in second-quarter revenue that blew by analysts' forecasts.
Shares jumped $5.26, or nearly 18 percent, to $35.10 in after-hours trading.
CEO Jason Rhode credited employees with working "incredibly hard" over the past several years to "position the company for a sharp transition to a higher level of revenue."
The company expects revenue for the quarter ending in September will range between $170 million and $190 million — substantially higher than the $130 million predicted by analysts polled by FactSet. That would mark a jump of 70 percent from the latest quarter.
Net income in the three months ended June 30 slipped to $6.9 million, or 10 cents per share, from $9.2 million, or 13 cents per share, a year ago.
Excluding the cost of stock grants to executives, a provision for income taxes and onther items, adjusted earnings came to 22 cents per share, beating the 21 cents expected by analysts.
Revenue rose 7 percent to $99 million, just short of the $101 million expected by analysts.
Cirrus also said it will sell assets associated with its Apex Precision Power business in Tucson, Ariz., for $26 million. The transaction is expected to close within 45 days.