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Income slides at Cirrus as Wolfson deal edges closer

SEMICONDUCTOR maker Cirrus Logic, which is close to wrapping up a £291 million deal for Scottish firm Wolfson, has seen income dip in the first quarter of its financial year.

NASDAQ-listed Cirrus, which has its headquarters in Austin, Texas, showed sales of $152.6 million (£90 million) in the three months to June 28.

That was slightly behind the $155.1 million booked in the same period in 2013 but ahead of the $149,659 million posted for the quarter to March 29 this year.

Net income before tax in the latest quarter was $15.9 million which is down from the $20.3 million booked in the first three months of this year and almost half $31.6 million recorded a year ago.

However, quarter on quarter research and development costs went up from $35.5 million to $39.8 million with selling and administrative costs also rising from $17.8 million to $19.7 million.

Jason Rhode, president and chief executive officer, said: "We are pleased with our [first quarter] financial results as we experienced strong demand for our custom and general market portable audio products across our customer base.

"With a robust pipeline of innovative products and the pending acquisition of Wolfson, we are strengthening the company's position as a market leader in audio with a comprehensive product portfolio, differentiated software capabilities and a top-tier customer base."

The deal for Wolfson, which is still being run by Mike Hickey, has been backed by shareholders and is formally expected to complete by this autumn.

Cirrus supplies the likes of Apple, Sony and Ford with audio products while Wolfson's components go into devices for companies such as Samsung, LG and Sharp.

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