Cirrus Logic shares jump on improved 2Q sales view

Shares of chip company Cirrus Logic after increase to fiscal 2nd-quarter sales outlook

• On 12:51 pm EDT, Tuesday October 6, 2009

NEW YORK (AP) -- Shares of Cirrus Logic Inc. rose sharply Tuesday after the chip designer boosted its fiscal second-quarter sales outlook.

The stock jumped 59 cents, or 12 percent, to $5.72 in afternoon trading. The stock has ranged from $2.16 to $6.22 over the past year.

Late Monday, the company said it expects to report sales of $55.7 million for the three-month period ended Sept. 26, up from a previous forecast of $48 million to $52 million.

Analysts expected revenue of $49.8 million, according to a Thomson Reuters survey.

Jefferies analyst Adam Benjamin told clients in a note he was encouraged by the company's "ability to drive growth in its portable audio segment ... without sacrificing significant gross margin or raising" costs.

Benjamin kept a "Hold" rating on the stock, however, cautioning investors to wait until consumer spending becomes more predictable.

Based in Austin, Texas, Cirrus makes chips for audio and other functions in electronics such as the Apple Inc. iPod.