Cirrus Logic’s fourth quarter and full-year report surpassed analyst expectations. However, the Texas-based maker of audio components is looking to expand on its already impressive portfolio as well as acquire more clients.
Wall Street estimated Cirrus would hit $0.47 per share during the fourth quarter, which would put the company’s total sales at around $232 million. Cirrus exceeded those expectations when it released its fourth quarter earnings: $0.66 per share, with revenue of $255 million. The company saw a 70% year over year growth thanks in part to its acquisition of Wolfson Electronics, which contributed $54.5 million to the company’s total earnings.
Apple, as in years past, remained Cirrus’ largest client, amounting to about 65% of the company’s overall revenue. This chunk of the pie is actually a bit smaller than last year, when Apple made up nearly 78% of Cirrus’ revenue.
In the recent earnings report, Cirrus stated that its second-largest client is helping the company earn 15% of its overall revenue, but did not mention any specific names due to customer relationship issues. Many suspect that Cirrus’ second-largest client is actually Samsung, and that the South Korea-based Apple competitor will only continue to source more products from Cirrus.
According to a company statement, Cirrus is looking to expand into the mid-range smartphone audio market. Strategically, Cirrus wants to keep its margin consistent, and with a client like Samsung to back it up, that’s feasible.
Additionally, Cirrus will likely explore the car audio and home audio system niches, as the smart home and Internet of Things trends continue.
