Cirrus Logic Inc ( CRUS Quick Quote CRUS - Free Report) delivered strong first-quarter fiscal 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate and increasing year over year. The company reported adjusted earnings of $1.12 per share, beating the Zacks Consensus Estimate by 31.8%. The bottom line rose 107% from the prior-year quarter’s 54 cents.
Total revenues of $394 million surpassed the Zacks Consensus Estimate by 6.3% and increased 42% year over year. The perfromance was driven by increasing demand for flagship devices, noted the company.
The Texas-based company rearranged its reportable segments and created a separate category in fourth-quarter fiscal 2021, High-Performance Mixed-Signal and Audio. Cirrus Logic is expanding into other applications such as laptops, gaming, tablets and AR/VR.
Cirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 35% to total revenues in the fiscal first quarter. Revenues from the same division surged 132% year over year to $139.1 million on higher mixed-signal content gains along with a higher average selling price. The Audio segment’s sales increased 17.1% to $254.5 million and contributed 65% to the total revenues. Margins
Non-GAAP gross margin was 51.5% which expanded 90 basis points (bps) on a year-over-year basis.
Cirrus Logic’s non-GAAP operating expenses rose 15.9% year over year to $119.5 million. Non-GAAP operating income of $83.4 million increased 125% year over year. Moreover, the non-GAAP operating profit margin increased to 21.2% from 13.4% reported in the year-ago quarter. Balance Sheet and Cash Flow
The company exited the fiscal first quarter with cash and marketable securities of $379.3 million compared with the $369.8 million as of Mar 26, 2022.
As of Jun 25, 2022, Accounts receivables were $206.3 million compared with $240 million recorded as of Mar 26, 2022. In the fiscal first quarter, the company reported $74.4 million as net cash provided from operations. The company repurchased 724,871 shares worth $56.4 million in the quarter under review. As of Jun 25, 2022, the company has $136.1 million worth of shares remaining under its existing share repurchase authorization. The company also announced an additional share buyback worth $500 million. Outlook
For second-quarter 2023, the company projects revenues between $450 million and $490 million. R&D and SG&A are projected to be between $154 million and $160 million. The gross margin is expected to be 49-51%.
Zacks Rank & Key Picks
Cirrus Logic currently carries a Zacks Rank #3 (Hold).
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