Cirrus Logic Buys Acoustic Technologies - Analyst Blog


Analog and digital signal processing components supplier, Cirrus Logic ( CRUS ), has acquired Acoustic Technologies, Inc., an audio solutions provider. The financial details of the deal were not available.

Mesa, Ariz.-based Acoustic Technologies specializes in noise reduction, echo cancelation and voice enhancement technologies and solutions. The company has partnerships with embedded platform providers such as ARM, CSR and Maxim Integrated Products ( MXIM ). The company's applications are used by smartphone manufacturers and are also used in GPS, headsets, portable speakerphones, car speakerphones and car audio products.

The acquisition fetches Cirrus Logic important audio enhancement solutions and also strengthens its voice processing algorithms. Moreover, more than 90.0% of the company's revenues come from audio products, so any additions and enhancements to this segment should have a positive impact on the company's top line.  

Additionally, Cirrus Logic will be able to provide integrated audio solutions to its 2,500-strong customer base across diverse end markets.

Some of the customers include LG, Philips, Samsung, and Sony. Others such as car manufacturer Ford ( F ) and electronics distributor, Avnet, also contribute to Cirrus's revenues. Nonetheless, Apple ( AAPL ) remains the company's major revenue contributor. The increasing demand for Apple's latest iPhone - iPhone 5S - will be good for Cirrus Logic in the near term.

In the last reported quarter, Cirrus Logic's revenues from Audio products surged 77.9% year over year due to strong customer demand for audio enhancement solutions used in mobile phones. Moreover, the company's expansion in the LED lighting products was a positive.

Thus, despite a sluggish macroeconomic environment and competition from its peers, we believe that the company will continue to benefit from its partnership with Apple.  

Currently, Cirrus Logic has a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AAPL , CRUS , F , MXIM

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