Cirrus Logic Beats Estimates; Sees Q1 Revenue Decline of 6%

Cirrus Logic says it’s in a ‘strong position’ to weather Covid-19 pandemic.
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Cirrus Logic, Inc.  (CRUS) - Get Report posted better-than-expected revenue and earnings for its fiscal fourth quarter but forecast that fiscal first-quarter revenue will fall 6% from the same period last year.

The maker of chips used in mobile phones and other devices said revenue in the just completed period was $279.3 million. It posted non-GAAP earnings per share of 68 cents.

The company had been expected to report revenue of $258.7 million and earnings of 50 cents a share, based on a FactSet survey of 11 analysts.

In the same period a year ago, the company posted earnings of 37 cents a share on sales of $240.4 million. It reported net income of $29.9 million.

The company said it expects revenue to range from $200 million to $250 million in the current quarter, down 6 percent year over year at the midpoint. The year-over-year decline "reflects lower unit volumes and a reduction in smart codec content in Android, which is partially offset by content gains in several end products," the company said in a statement.  

Cirrus “experienced strong demand for products shipping in smartphones and increased our penetration of tablets, truly wireless headsets and wearables," in its 2020 fiscal year, said Jason Rhode, chief executive officer, in a statement. “With approximately $600 million in cash, no debt and outstanding relationships with the leaders in the markets we serve, Cirrus Logic is in a strong position to weather the storm and maximize our long-term growth opportunities," he added.

Cirrus Logic shares were flat in after-hours trading. The stock rose $1.24, or 1.75%, to $72.07 in the regular session.