Wednesday, April 27, 2011

Cirrus Logic Inc. (NASDAQ: CRUS): Q4 Earnings Preview 2011

Cirrus Logic Inc. (NASDAQ: CRUS) is scheduled to release its fiscal fourth-quarter earnings before the opening bell on Thursday, April 28, 2011. Analysts, on average, expect the company to report earnings of 24 cents per share on revenue of $91.60 million. In the year-ago quarter, the company reported earnings of 16 cents per share on revenue of $62.64 million.

Cirrus Logic, Inc. develops high-precision analog and mixed-signal integrated circuits  for a range of audio and energy markets. Cirrus' chips are used in electronics such as DVD players, automobiles' satellite radio systems, professional music mixing machines, and energy exploration equipment.

Cirrus Logic's largest customer is Apple (NASDAQ: AAPL) and the company's growth has been tied in large part to its relationship with Apple. Apple's contribution to the company's revenue jumped to 54 percent in the third quarter from 41 percent a year ago.

In the preceding third-quarter, the Austin, Texas-based company's net income was $24.6 million, or 34 cents per share, compared to $11.05 million, or 17 cents per share, in the same quarter last year. On an adjusted basis, the company 34 cents per share in the fourth quarter. Revenue surged 47 percent to $95.6 million from $65.16 million last year. Analysts, on average, expected the company to report earnings of 32 cents per share on revenue of $91.66 million.

Recently, the company revised its revenue outlook for the fourth quarter, and lowered its gross margin forecast for the quarter. The company cited an one-time charge incurred due to a production issue for the weak outlook. For the fourth quarter, the company now expects revenue of $91.4 million, and gross margin of 50%. Previously , the company estimated revenue of $88 million to $94 million, and gross margin of 54% to 56%. The company noted that its lower-than-expected gross margin for the quarter is the result of a charge of about $4.2 million or $0.06 per share, due to a production issue with a new audio device that entered high volume production in March 2011. The company expects a smaller residual impact to gross margins in the first two quarters of FY2012 as the company works through in line inventory related to this product.

For fiscal year 2011, revenue is expected to be $369.6 million, a 67% increase over $221 million fiscal year 2010 revenue. 

The company's stock currently trades at a forward P/E (fye Mar 27, 2012) of 11.49 and PEG ratio (5 yr expected) of 0.64. In terms of stock performance, CRUS shares have gained nearly 54 percent over the past year.

Full Disclosure: None.

Related Posts with Thumbnails

Wikinvest Wire