WASHINGTON (dpa-AFX) - Shares of Cirrus Logic, Inc. (CRUS) plunged nearly seven percent in Wednesday's extended trading after the semiconductor company reported earnings and revenue for the first quarter that declined from last year. The results also reflected significantly lower operating margins.
However, both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided revenue guidance for the second quarter, in line with Street view.
Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a range of audio and energy markets.
'We are pleased with our Q1 financial results as we experienced strong demand for our custom and general market portable audio products across our customer base,' President and CEO Jason Rhode said in a statement.
The Austin, Texas-based company reported net income of $10.2 million or $0.16 per share for the first quarter, lower than $20.6 million or $0.31 per share in the prior-year quarter.
Excluding special items, adjusted net income for the quarter was $23.6 million or $0.37 per share, compared to $36.8 million or $0.56 per share in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the quarter. Analysts' estimate typically excludes special items.
Net revenues for the quarter declined to $152.57 million from $155.13 million in the same quarter last year, but topped eight Wall Street analysts' consensus estimate of $148.03 million.
The drop in revenue was due mainly to lower audio products sales at $141.16 million, compared to $143.67 million last year. Energy products sales also edged down to $11.40 million from $11.46 million last year.
Operating margin for the quarter contracted a significant 1000 basis points to 10 percent, as gross margin contracted 180 basis points and higher expenses.
Looking ahead to the second quarter, the company expects revenues in a range of $175 million to $195 million, with Street currently looking for revenues of $185.86 million. Gross margin is projected between 47 and 49 percent.
'With a robust pipeline of innovative products and the pending acquisition of Wolfson, we are strengthening the company's position as a market leader in audio with a comprehensive product portfolio, differentiated software capabilities and a top-tier customer base,' Rhode added.
CRUS closed Wednesday's regular trading session at $23.97, down $0.68 or 2.76% on a volume of 2.14 million shares. The stock lost a further $1.61 or 6.72% in after hours trading.
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