Cirrus Logic's 3Q earnings drop 34 percent

Cirrus Logic Inc. said Wednesday that its earnings dropped 34 percent in the third quarter but topped Wall Street's expectations as the chip maker partially offset a decline in revenue by reducing operating expenses.

Cirrus Logic shares jumped 17 cents, or 6.3 percent, to $2.87 in aftermarket trading, after losing 6 cents, or 2.2 percent, to $2.70 during the regular session. The stock has traded between $2.16 and $7.63 during the past 52 weeks.

For the quarter ended Dec. 27, earnings fell to $2.75 million, or 4 cents per share, from $4.2 million, or 5 cents per share, in the same quarter year ago.

Excluding stock-based compensation and the amortization of intangibles related to an acquisition, adjusted earnings totaled $4.4 million, or 7 cents per share.

Revenue fell 10 percent to $43.8 million from $48.9 million.

Analysts polled by Thomson Reuters, who generally exclude one-time items from their estimates, forecast earnings of 4 cents per share on revenue of $42.8 million.

Partially offsetting the drop in revenue, Cirrus Logic reduced its operating expenses during the quarter by 16 percent to roughly $22 million, from $26.1 million in same period a year before.

"Our third-quarter financial results reflect the sudden decrease in the bookings rate midway through the quarter as a result of the global economic downturn," said President and Chief Executive Jason Rhode in a statement. "Despite these difficult global economic conditions, Cirrus Logic remains financially solid with a strong balance sheet, and we continue to have robust design win activity for new products."

For the fourth quarter ending March 28, Cirrus Logic predicted that revenue will range between $31 million and $36 million. Analysts forecast quarterly revenue of $37.9 million.