(Bloomberg) -- Cirrus Logic Inc. joined a growing list of Apple Inc. suppliers in cutting its revenue forecast for the holiday quarter.
The Austin, Texas-based chipmaker cited "recent weaknesses in the smartphone market" in reducing sales projections for the current quarter to a range of $300 million to $340 million. That's down from the $360 million to $400 million Cirrus projected on Nov. 1 and compares with the average analyst estimate of $367 million, according to data compiled by Bloomberg. The stock fell as much as 9.2 percent in extended trading.
Cirrus, which makes audio chips used in the iPhone, is one of the most heavily exposed suppliers to Apple. The Cupertino, California-based company accounted for about 82 percent of Cirrus net sales in the second quarter of its latest fiscal year, according to a recent regulatory filing.
"If you compare that with other Apple suppliers that have cut guidance, it's in line with a lot of them," said Woo Jin Ho, a senior analyst with Bloomberg Intelligence. The lowered guidance suggests a reduction in iPhone unit output of about 10 million to 14 million units, he said.
Broadcom Inc., another major Apple supplier, reports earnings on Thursday.
Read about other Apple suppliers cutting their forecasts recently.
To contact the reporter on this story: Jeran Wittenstein in San Francisco at jwittenstei1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Alistair Barr, Andrew Pollack
©2018 Bloomberg L.P.
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