AUSTIN, Texas - Cirrus Logic, Inc. (NASDAQ:CRUS) reported better-than-expected second quarter fiscal 2025 results on Thursday, but shares fell 7% in after-hours trading as the company's third quarter revenue guidance came in below analyst expectations.
The audio chip maker posted adjusted earnings per share of $2.25, surpassing the analyst estimate of $2.02. Revenue for the quarter reached $541.9 million, exceeding the consensus forecast of $520.53 million and marking a record for the company.
Despite the strong Q2 performance, Cirrus Logic's outlook for the third quarter disappointed investors. The company expects Q3 revenue between $480 million and $540 million, falling short of the $592.6 million analyst consensus.
John Forsyth, Cirrus Logic's president and CEO, attributed the robust Q2 results to "strong demand for products shipping into smartphones." He noted that the company began shipping its next-generation custom boosted amplifier and first 22-nanometer smart codec in recently launched smartphones during the quarter.
Cirrus Logic also reported progress in the laptop market, securing its first high-volume mainstream design win with its latest PC codec and commencing shipments of its first power product in multiple tier-one customers' devices.
The company's Q2 gross margin stood at 52.2% on both a GAAP and non-GAAP basis. Operating expenses were $150.7 million on a GAAP basis and $126.8 million on a non-GAAP basis.
For the third quarter, Cirrus Logic anticipates a gross margin between 51% and 53% on a GAAP basis.
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