Tags: Cirrus | Logic | Shares | Stock

Cirrus Logic Shares Plunge 16% on Weak Guidance

Wednesday, 17 Apr 2013 11:34 AM

Shares of Cirrus Logic Inc. tumbled 16 percent Wednesday after the chipmaker forecast lower-than-expected fiscal fourth-quarter revenue.

Cirrus said late Tuesday that it expects revenue for the quarter ended March 30 to be about $206.9 million. Analysts, on average, expected $209.8 million, according to FactSet.

The company also projected fiscal first-quarter revenue of $150 million to $170 million, below analysts' predictions of $190.9 million.

Austin, Texas-based Cirrus makes chips used in audio and energy products. The company's stock has tumbled to nearly half of its value in the months since it reported its fiscal second-quarter results in late October.

Cirrus also said Tuesday that higher-than-expected inventories of some products will mean lower-than-expected profitability for the quarter. But the company thinks profitability will return to previously projected levels in the fiscal first quarter of this year.

Stifel Nicolaus analyst Tore Svanberg said that while he was a little surprised by the timing of the news, the announcement could actually help the company grow by resetting investor expectations. He kept a "buy" rating on the stock.

Cirrus shares ended down $3.36 at $18.05, after trading as low as $17.87 earlier in the session to a new 52-week low amid a broader market sell-off.

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Shares of Cirrus Logic Inc. tumbled 16 percent Wednesday after the chipmaker forecast lower-than-expected fiscal fourth-quarter revenue.
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2013-34-17
Wednesday, 17 Apr 2013 11:34 AM
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