"the unexpected weakness in smartphone demand in late December led to lower-than-expected third-quarter results, which further affected our 4th quarter results," said Jason Rhodec, chief executive of the company.
It is reported that the Apple CorpIPhoneThe income contribution of Cirrus Logic company is the greatest. Prior to Cirrus Logic's release, the Apple Corp issued financial statements that the holiday season iPhone shipments were less than expected and were not optimistic about the season.
According to the documents submitted by the company, iPhone manufacturers have signed contracts related to iPhone production with multiple manufacturers, but in the last quarter, the total contract accounts for about 86% of the total sales of Cirrus Logic.
The company said that although Samsung Electronics accounted for about 15% of the total sales in fiscal year 2016, the sales of other end customers in the fiscal season did not exceed 10% of net sales.
At the end of last year, it was reported that Samsung had switched to lower priced components, which meant that Samsung's demand for Cirrus Logic audio chips dropped.
Cirrus attributed the decline in revenue to a key Android handset maker that has lowered the average price of mobile phone components.
However, Rhodes says, from a pricing point of view, its top customers are as usual. "I would say there is not much fluctuation in this area."
In addition to smartphones, Cirrus Logic audio chips are also used for tablet computers, wearable devices, digital headphones and smart home products.
The company forecast revenue of $300 million to $340 million this quarter, much lower than analysts' expected $372 million 100 thousand.
Among them, the sales of the portable audio product, which occupies most of the company's business, fell by 9%, about $438 million 700 thousand.
In addition to special projects, Cirrus Logic's net profit per share was $1.59 per share, less than $1.69 per share estimated by analysts.
In contrast, Skyworks Solutions Inc, an industry competitor and apple supplier, is beyond its profit expectation because of its strong demand for wireless chips and Internet of things technology. The stock of the company rose by 2% in the aftermath.
In addition to special projects, Skyworks per share was $2 per share, up from $1.92 estimated by analysts. Its revenue in the quarter was up 15%, about $1 billion 50 million, in line with analysts' expectations. (Han ice)