Is Cirrus Logic Poised For Continued Success In The Coming Years?

(RTTNews) - Fabless semiconductor company Cirrus Logic Inc. (CRUS) sees weaker-than-expected demand for certain portable audio products. This weakness intensified over the last few weeks of December and is expected to continue to significantly impact the company's revenue in the fourth quarter.

Meanwhile, the company claims it is well positioned to benefit from the rapidly growing demand for innovative audio and voice products in the mobile phone, smart accessory and digital headset markets.

Earlier this month, the company reported preliminary net revenue of about $347 million. Despite this lower outlook for the short term, the company expects its fiscal 2016 results to reflect meaningful year-over-year revenue growth and further foresee strong growth for fiscal 2017, based on several anticipated new product introductions.

The company's third-quarter results are due to be released after the bell on Wednesday, January 27. Analysts' estimate calls for earnings of $0.81 per share and revenue of $346.88 million for the quarter.

While reporting second-quarter results, the company issued financial forecast for the third quarter, expecting revenue in the range of $370 million - $400 million, and GAAP gross margin between $45% and $48%.

The just bygone quarter saw a sharp growth in profit that totaled $34.9 million or $0.53 per share compared to $852 thousand or $0.01 per share last year. This significant growth reflects robust demand for 55-nanometer and 65-nanometer smart codec and boosted amplifiers that drove revenues up 46% year-over-year.

On a non-GAAP basis, net income amounted to $42.9 million or $0.65 per share compared to $43.9 million or $0.68 per share n the prior year period.

Net sales grew to $306.8 million from $210.2 million generated a year ago.