NEW YORK (TheStreet) -- Shares of Cirrus Logic Inc. (CRUS) - Get Cirrus Logic, Inc. Report are down despite reporting a 10.2% rise in quarterly revenue, helped by strong demand for Apple's (AAPL) - Get Apple Inc. (AAPL) Report iPhone 6 and 6 Plus, which use Cirrus's audio chips, Reuters reports.
The chip maker's revenue rose to $210.2 million in the 2015 fiscal second quarter from $190.7 million a year earlier.
Net income fell to $852,000, or 1 cent per share, from $33.4 million, or 50 cents per share for the same period a year ago, due to acquisition related costs and other operating expenses.
"The second quarter was an outstanding quarter for Cirrus Logic, as strong demand for portable audio products drove revenue above expectations," CEO Jason Rhode said, adding, "The acquisition [of Wolfson Microelectronics] further strengthens Cirrus Logic's position as a market leader and helps accelerate critical R&D programs we believe will fuel revenue growth in the future."
Despite the rise in revenue, shares of Cirrus are down 11.38% to $19.40.
Separately, TheStreet Ratings team rates CIRRUS LOGIC INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CIRRUS LOGIC INC (CRUS) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
You can view the full analysis from the report here: CRUS Ratings Report