Analog and digital signal processing components supplier,
), has acquired Acoustic Technologies, Inc., an audio solutions
provider. The financial details of the deal were not
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
). 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
Additionally, Cirrus Logic will be able to provide integrated
audio solutions to its 2,500-strong customer base across diverse
Some of the customers include LG, Philips, Samsung, and Sony.
Others such as car manufacturer
) and electronics distributor, Avnet, also contribute to Cirrus's
) 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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