Cirrus Logic Inc. ( CRUS ) reported
fourth-quarter 2013 adjusted earnings of 50 cents per share,
surpassing the Zacks Consensus Estimate of 48 cents.
Total revenue for the fourth quarter soared 87.0% from the
year-ago quarter to $206.9 million. This apart, the Cirrus also
expanded its footprint in the portable audio segment and launched
the company's new LED lighting products.
Segment wise, Audio Product revenues surged 116.6% year over
year to $196.1 million, while Energy product revenues came in at
$10.8 million, down 46.4% year over year.
Reported gross margin in the quarter was 40.4% versus 56.4% in
the year-ago quarter as a result of higher costs.
Operating margin was 16.3% versus 18.9% in the year-ago quarter.
The company's total operating expenses increased 20.1% on a
year-over-year basis. Higher operating expenses were mainly due to
24.8% and 14.3% year-over-year increases in selling, general and
administrative (SG&A) expenses, and research and development
Net income on a GAAP basis was $26.3 million or 39 cents per
share compared with $50.9 million or 75 cents in the year-ago
Excluding the amortization of acquisition-related intangible
assets but including stock-based compensation expense, non-GAAP net
income for the third quarter was 50 per share compared with 31
cents in the year-ago quarter.
Cash and short-term investments were $66.4 million versus $87.5
million in the previous quarter. The company has no long-term
For the first quarter of fiscal 2014, the company expects
revenues in the range of $150 million and $170 million. This apart,
gross margin is expected between 50.0% and 52.0%, while the
combined R&D and SG&A expenses are expected to range
between $51.0 million and $55.0 million.
Cirrus posted a decent fourth quarter, with the bottom line
comprehensively beating the Zacks Consensus Estimate. Although
revenues were good for the quarter, gross and operating margin took
a hit, as the company was not able to control expenses in the long
run. We remain cautious about the company, as the current global
economic downturn might affect its business potential going
forward. Moreover, the company is faced with stiff competition from
the likes of Texas Instruments Inc. ( TXN ),
STMicroelectronics ( STM ), ON
Semiconductor ( ONNN ) having Zacks
The company has a Zacks Rank #5 (Strong Sell).CIRRUS LOGIC (CRUS): Free Stock Analysis ReportON SEMICON CORP (ONNN): Free Stock Analysis
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