In Tuesday premarket trading, shares of Cirrus Logic Inc. (CRUS, Financial) fell on the back of the company posting its financial results for the third quarter of fiscal 2018 on Monday. For the quarter ended Dec. 30, 2017, the company reported an annual net sales decline of 7.7% to $482.74 million, while its earnings advanced to $1.59 per share. Moreover, results fell short of analysts’ earnings estimates by 19 cents and revenue expectations by $46.63 million.
President and CEO Jason Rhode explained the bad numbers.
“Unanticipated weakness in smartphone demand that materialized in late December drove our Q3 results below expectations and further impacted our fourth quarter guidance,” he said. “Despite these near-term challenges, our design position remains strong at our top customers and our wide range of new and existing products are expected to drive exciting opportunities in audio and voice applications across the smartphone, digital headset and smart home markets over the next several years.”
In addition, the company's board of directors authorized the repurchase of an additional $200 million worth of common stock. Cirrus has $60.2 million remaining under its previous share repurchase program.
Looking ahead to the fourth quarter, the company expects revenue to be between $300 million and $340 million. The GAAP gross margin is expected to be between 48% and 50%, and combined GAAP R&D and SG&A expenses are expected to be about $130 million and $136 million, including $13 million in share-based compensation and $13 million in amortization of acquired intangibles.
In other news, shares of Lululemon Athletica Inc. (LULU, Financial) lost ground after the company announced CEO Laurent Potdevin resigned. The reason for his departure, according to the company, is that he "fell short" of some standards of conduct in regard to his treatment of employees as well as his integrity.Ă‚
As severance, he will receive a lump-sum cash payment of $3.35 million, along with $1.65 million paid in equal installments over 18 months.
Disclosure: The author holds no positions in any stocks mentioned.
