(RTTNews) - Fabless semiconductor company Cirrus Logic, Inc. (CRUS: News ) reported Tuesday a modest increase in second-quarter profit, helped by the sale of certain patents and the absence of litigation provision that hurt prior-year results as well as higher revenues from audio products. Adjusted earnings came in above estimates by a penny, but declined from the year-ago quarter.

For the second quarter, net income rose to $6.76 million from $6.35 million last year. On a per share basis, earnings were $0.10, flat with previous year.

The results of the latest quarter included $1.4 million pertaining to the sale of certain patents as well as $165 thousand in facilities restructuring credits. The prior-year results included provision for litigation expenses of $1.77 million. Stock based compensation expense increased year-over-year to $1.38 million from $1.23 million.

Excluding items, earnings declined to $6.98 million or $0.11 a share from $9.68 million or $0.15 a share in the year-ago period. On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share in the second quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew to $55.67 million from $53.28 million last year. Four analysts were expecting revenue of $55.65 million for the second quarter.

Revenue from audio products increased to $41.27 million from $30.60 million, while revenue from energy products slid to $14.40 million from $22.67 million in the year-ago quarter.
Gross margin was 52%, down from 56% in the prior-year period, as gross profit decreased to $28.97 million from $29.98 million.

For the first half of the year, net income dipped to $6.98 million or $0.11 per share from $8.49 million or $0.13 per share in the past year. Adjusted earnings dropped to $6.19 million or $0.10 a share from $13.43 million or $0.20 a share in the prior year. Net revenue came down to $93.18 million from $97.29 million in the same period in fiscal 2009.

For the third quarter, the company expects revenue to range between $58 million and $62 million. Analysts currently expect the company to post revenue of $53.96 million for the quarter.

CRUS is currently trading at $5.69, down $0.13 or 2.90%, on the NASDAQ.

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by RTT Staff Writer

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