CRUS ( $26-$20.50) P/E 14 sees loss ahead, reports EPS of $0.10
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 5:54 PM ET July 23, 2001
AUSTIN (CBS.MW) - Cirrus Logic shares fell 15 percent after the communications chipmaker reported pro forma earnings at the bottom of a targeted range and said it will report a loss during the next quarter.
The company reported a first quarter net loss of $23 million, or 31 cents a share, on revenue of $179.7 million. During the same quarter last year, net income was $98.8 million, or $1.27, on revenue of $181.4 million.
Shares (CRUS: news, chart, profile) fell 15 percent in late trading on Monday to $20.50. Ahead of the news, Cirrus closed regular trading down 8.3 percent at $24.03.
Excluding one-time gains and special charges but including an excess inventory charge, pro forma net income was $7.5 million, or 10 cents a share, compared with $10.1 million, or 15 cents a share, during the same quarter last year.
Analysts expected Cirrus Logic to earn 11 cents a share, on average, on a pro forma basis. On May 2, Cirrus said to expect pro forma earnings of 10 cents to 15 cents a share. Also on May 2, Cirrus said revenue was expected to decline 10 percent to 15 percent. Sales actually declined 10 percent from $199.7 million sold in the previous quarter.
During the second quarter, Cirrus said it will report a pro forma loss of 15 cents to 20 cents a share on revenue of $75 million to $85 million.
The decrease in revenue will be a result of Cirrus' previously announced intentions to leave the magnetic storage business, which accounted for $120 million of revenue in the just completed quarter.
Analysts had expected earnings of 13 cents a share, on average.
"Looking at Q2, our Analog & Internet Solutions business backlog is up over first quarter levels, our book-to-bill ratio is strong and design win activity is high," said CEO David French, according to a statement. "But in the short term, as with most everyone else in the industry, we remain cautious about the market environment, and we will continue to manage our expenses and resources very carefully."
Chris Kraeuter is a reporter for CBS.MarketWatch.com in San Francisco.
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