Audio chip sales help drive strong quarter for Cirrus Logic

Oct 30, 2013
Austin American Statesman

In its fiscal second quarter, Cirrus Logic Inc.’s audio chip business helped fuel strong quarter-to-quarter growth, the Austin chip company said Tuesday


Cirrus made a profit of $33.4 million, or 50 cents a share, on revenue of $190.7 million for the quarter ended Sept. 28. Those results compared with a profit of $35.5 million, or 51 cents a share, on revenue of $193.8 million in the same quarter last year, when the company had one of its best-ever quarters


However, Cirrus second-quarter numbers were a significant jump from the first quarter of this year, when the company had revenue of $155.1 million and profit of $20.6 million


Sales of audio-related products were more than 94 percent of the total revenue in Cirrus’ just-completed quarter. The results topped analyst estimates for the just-completed quarter


The quarter “was another great quarter for Cirrus Logic as portable audio continued to be a key driver of our success and we made significant progress on our strategic initiatives,” said CEO Jason Rhode. The recent acquisition of Acoustic Technologies, he said, is expected to strengthen Cirrus’ current voice processing capabilities and help build its sales


Cirrus does not discuss its ties with its largest customer, which is widely reported to be Apple Inc. But the company did say it has secured design wins with Asian cell phone makers, which are buying some of the audio chips in its product catalog


The company said its outlook for the current quarter calls for continued growth with revenue between $200 million and $220 million and a gross profit margin of between 45 and 47 percent. That compared with a gross profit of 52 percent in the latest quarter


Cirrus finished the quarter with 678 employees worldwide and 593 in Austin. That compared with 637 worldwide and 534 in Austin at the start of the calendar year


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