Apple supplier Cirrus forecasts weak revenue; shares slide
(Reuters) - Cirrus Logic Inc (CRUS.O), whose audio chips are used in Apple Inc's (AAPL.O) iPhones and iPads, forecast current-quarter revenue that missed analysts' average estimate, sending its shares down 5 percent after the bell.
Shares of Cirrus Logic and other Apple suppliers closed lower in regular trading on Tuesday, after the world's most valuable technology company forecast weak revenue for the current quarter.
Apple accounted for 82 percent of Cirrus Logic's revenue in fiscal 2013.
Cirrus Logic forecast revenue of between $130 million and $150 million for the March quarter, lower than the $173.8 million analysts on average were expecting.
The company reported revenue of $207 million for the fourth quarter last year.
The forecast decline in revenue from the same quarter last year is primarily due to a shift of mix in products with lower average selling prices and changes in pricing structure, the company said in a letter to shareholders. (r.reuters.com/waq46v)
Cirrus has a lower content in the iPhone 5S and the iPhone 5C and these are the units that would be selling in the March quarter, Stifel Nicolaus analyst Tore Svanberg told Reuters. Cirrus had a high content in the discontinued iPhone 5.
Net income fell to $41.5 million, or 63 cents per share, in the third quarter, from $67.9 million, or 99 cents per share, a year earlier.
Revenue fell 29 percent to $218.9 million.
On an adjusted basis, earnings were 89 cents per share.
Analysts on average had expected earnings of 77 cents per share on revenue of $213.3 million, according to Thomson Reuters
Cirrus Logic's shares fell to a low of $17.70 in extended trading. They closed 4.5 percent lower on the Nasdaq. The stock had lost 33 percent of its value in the past year.
(Reporting by Chandni Doulatramani and Aurindom Mukherjee in Bangalore; Editing by Maju Samuel and Sriraj Kalluvila)