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Apple supplier Cirrus plunges after disappointing results

Feb 5 (Reuters) - Cirrus Logic Inc, whose chips are used in Apple’s iPhones, reported quarterly revenue and profit below estimates due to weakness in smartphone sales in late December, sending its shares down 11 percent.

The results come days after Apple gave a disappointing revenue outlook for the current quarter and sold fewer iPhones in the holiday quarter than expected.

Cirrus’ third-quarter revenue fell nearly 8 percent to $482.7 million, well below the average analyst estimate of $529.4 million, according to Thomson Reuters I/B/E/S.

“Unanticipated weakness in smartphone demand that materialized in late December drove our Q3 results below expectations and further impacted our Q4 guidance,” Chief Executive Jason Rhode said.

The company also said the decline in revenue was due to lower average selling price of components at a key Android phone manufacturer.

It forecast current quarter revenue in the range of $300 million to $340 million, well short of the analyst estimate of $372.1 million.

In contrast, fellow Apple supplier Skyworks beat profit expectations on strong demand for its wireless chips and technology that powers Internet of Things. Its shares rose 3 percent in extended trading.

Skyworks earned $2 per share excluding items, beating the estimate of $1.92. Revenue rose 15 percent to $1.05 billion, in line with analysts’ expectation.

However, net income fell to $70.4 million, or 38 cents per share, for the first quarter ended Dec. 29, due to a $315.2 million income tax provision.

The supplier of radio frequency chips for Apple also announced a new $1 billion stock repurchase program that runs into January 2020. (Reporting by Shariq Khan and Aishwarya Venugopal in Bengaluru; Editing by Anil D’Silva and Saumyadeb Chakrabarty)