Cirrus Logic Rises After Earnings Beat Estimates

Cirrus Logic shares were higher after the chipmaker posted better-than-expected fiscal-second-quarter revenue and earnings.
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Cirrus Logic  (CRUS) - Get Report posted better-than-expected revenue and earnings for its fiscal second quarter and expects revenue to increase more than 25% in the current period.

The company also said President John Forsyth, 47, would add the post of chief executive, effective Jan. 1. Forsyth will succeed Jason Rhode, who becomes an executive fellow.

And the maker of chips used in mobile phones and other devices appointed David Tupman as chairman, also effective Jan. 1. 

Shares of the Austin company at last check were up 9.4% to $72.91.

For the quarter ended Sept. 26 Cirrus posted earnings of $59.4 million, or $1.02 a share, down 22% from $76.2 million, or $1.31 a share, in the year-earlier quarter.

Adjusted earnings were 99 cents a share, down from $1.27 in the year-earlier period.

Revenue dropped 11% to $347.3 million from $388.9 million.

A survey of analysts by FactSet produced consensus estimates of GAAP net income of 63 cents a share, or an adjusted 90 cents, on revenue of $310.2 million.

"Cirrus Logic delivered revenue above the high end of guidance in the September quarter," Rhode said in a statement.

Sales were "[solid] ... across the breadth of our product portfolio, with particularly strong demand for components shipping in smartphones. 

“During the quarter, we were pleased to have expanded the number of smartphones, tablets and wearables that are utilizing our technology. 

"The company also reached several meaningful development milestones" that will diversify the company's products and growth opportunities.

Cirrus Logic expects revenue to rise to between $440 million and $480 million in the fiscal third quarter. FactSet's survey is calling for $450.4 million.

As chairman Tupman succeeds Al Schuele, who is retiring. Tupman joined the Cirrus board in 2015. He owns Details Lab, an adviser to tech companies on product development. He's a former vice president of hardware engineering at Apple.  (AAPL) - Get Report