Shares of Cirrus Logic Inc. (CRUS: Quote) gained more than 19 percent in extended trade on Monday after the company reported better-than-expected earnings for the first quarter and forecast revenues for the second quarter above analysts' estimates.
Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a range of audio and energy markets. The company reported a 25 percent decline in profit for the first quarter, as higher expenses more than offset an increase in revenues.
Audio products revenue for the quarter grew 14 percent to $80.75 million, while energy products revenue declined 14 percent to $18.26 million.
The company's first-quarter net income decreased to $6.93 million or $0.10 per share from $9.18 million or $0.13 per share in the same period last year.
Adjusted net income for the quarter was $14.81 million or $0.22 per share, down from $16.96 million or $0.24 per share in the year-ago period.
On average, five analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter rose 7 percent to $99.00 million from $92.24 million in the same period last year. Analysts had a consensus revenue estimate of $100.94 million.
Operating expenses increased to $42.97 million from $33.37 million last year. Gross margin expanded to 54 percent from 52 percent in the year-ago period.
Looking ahead to the second quarter, Cirrus Logic forecasts revenues in a range of $170 million to $190 million. Analysts have a consensus estimate for the quarter of $129.65 million.
The company projects gross margin for the quarter to range between 52 percent and 54 percent.
Jason Rhode, president and chief executive officer of Cirrus Logic said, "We expect FY13 to be an outstanding year for Cirrus Logic and our long term shareholders."
In addition, Cirrus Logic announced the sale of assets associated with its Apex Precision Power business in Tucson, Arizona, for $26 million. After the sale, Cirrus Logic will continue to maintain a high voltage/high power IC design team in Tucson. The transaction is expected to close within 45 days.
CRUS closed Monday's regular trade at $29.84, up $0.88 or 3.04 percent on a volume of 6.69 million shares. In after-hours trading, the shares further gained $5.82 or 19.50 percent to $35.66.
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by RTT Staff Writer
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