Shares of Cirrus Logic Inc. (CRUS: Quote) gained more than 7 percent in extended trade on Wednesday after its adjusted earnings per share for the fourth quarter beat analysts' estimates and the company forecast "substantial" revenue growth in fiscal 2013.
Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a range of audio and energy markets. The company reported a 61 percent decline in profit for the fourth quarter.
Net income for the fourth quarter was $50.83 million or $0.75 per share, down from $130.41 million or $1.80 per share in the same quarter last year.
However, adjusted earnings per share rose to $0.36 from $0.22 in the year-ago quarter. On average, five analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenue for the quarter grew 21 percent to $110.63 million from $91.43 million in the prior-year quarter. Analysts had consensus revenue estimate for the quarter of $110.08 million.
The company recorded an income tax benefit of $29.76 million in the quarter, compared to $116.51 million in the same period last year.
For fiscal 2012, Cirrus Logic's net income plunged to $87.98 million or $1.29 per share from $203.50 million or $2.82 per share last year. However, adjusted earnings per share rose to $1.36 from $1.24 in the previous year.
Net revenue for the year increased to $426.84 million from $369.57 million in the prior year.
Looking ahead to the first quarter, Cirrus Logic forecasts revenue to grow about 10 percent from the year-ago period, in a range of $96 million to $106 million. Analysts expect revenues for the quarter of $106.62 million.
The company said it expects revenue to "grow substantially" in fiscal 2013 as new audio and energy products hit full production later this year. Analysts expect revenue of $491.56 million for the year.
The company has entered into an unsecured, one-year $100 million revolving credit agreement that provides access to additional working capital the company may need in order to support the production ramps of multiple new products this fall.
Wells Fargo Bank, N.A., is serving as the administrative agent. Wells Fargo Securities, LLC and Barclays Capital served as joint lead arrangers and joint bookrunners for the transaction.
CRUS closed Wednesday's session at $23.09, up $2.29 or 11.01 percent on a volume of 6.59 million shares. In after-hours, the sock further gained $1.81 or 7.84 percent to $24.90.
by RTT Staff Writer
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