According to Thomson Reuters, Cirrus's third-quarter revenue fell nearly 8% to approximately $ 482.7 million, well below analyst expectations of an average of $ 529.4 million.
Jason Rhode, chief executive, said: "The unexpected weakness in smartphone demand late in December led to lower-than-expected third-quarter results, further affecting our fourth quarter Expected earnings.
It is reported that Apple's iPhone contributes most to Cirrus Logic Inc. Before Cirrus Logic released its earnings, Apple released its earnings report that the iPhone shipments in the holiday season were lower than expected, but not optimistic about the outlook for the quarter.
According to the company's filings, the iPhone maker will contract with multiple manufacturers about the production of iPhone products, and in the most recent quarter it accounted for about 86% of Cirrus Logic's total sales.
The company said that although Samsung Electronics (005930.KS) accounted for about 15% of total sales in FY16, sales of other end-users for the quarter did not exceed 10% of net sales.
Late last year, there were reports that Samsung had switched to lower-priced components, signaling a decline in demand for Cirrus Logic audio chips from Samsung.
Cirrus's revenue decline was largely attributed to the average selling price of handset components pulled down by a key Android handset maker.
However, Rhodes said that from top of its pricing perspective, its top customers are as usual. "I would say there is not much volatility in this regard."
In addition to smartphones, Cirrus Logic audio chips are used in tablets, wearable devices, digital headphones and smart home products.
The company forecast revenues for the quarter to 300 million to 340 million US dollars, far lower than analysts expected 372.1 million US dollars.
Sales of portable audio products, which make up most of the company's business, fell 9% to about $ 438.7 million.
Exceptionally, Cirrus Logic posted a net profit of $ 1.59 per share, below analyst estimates of $ 1.69 a share.
In contrast, peer-to-peer Apple supplier Skyworks Solutions Inc. surpassed earnings estimates due to strong demand for wireless chips and IoT technology, and shares in the company rose 2% after-hours.
Excluding special projects, Skyworks' net income per share is $ 2, up from analysts' estimate of $ 1.92 and its quarterly revenue is up 15% to $ 1.05 billion, in line with analysts' expectations.