Cirrus Logic shares surge after upbeat 2Q forecast

AP News
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Posted: Jul 30, 2012 5:06 PM
Cirrus Logic shares surge after upbeat 2Q forecast

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.