Cirrus Logic (CRUS) comments on the DVD player/recorder market

| About: Cirrus Logic, (CRUS)

All quotes are from the CCBN StreetEvents transcripts:

… sales of audio digital to analog converters or D/A converters for DVD player applications and sales of video integrated circuits to DVD recorder manufacturers were lower than we had expected… we believe that a number of DVD player manufacturers ordered ahead of demand for certain integrated circuits during the March and June quarters...

Secondly, we suspect that tightening of bank lending practices in China during the summer months made it difficult for some manufacturers to obtain needed financing, resulting in a narrowing of the manufacturing base there. And… third … a more aggressive posture by certain companies to enforce intellectual property rights against companies in China. These issues, in total, contributed to an 18% decline in our audio converter revenue… compared with the prior quarter.

Our net revenue… was 51.3 million, compared with… 50.1 million… a year ago… analog revenue was 46.3 million… a 10% increase... video IC revenue totaled 5 million… compared to 8.4 million in the June quarter. Our international sales declined… due to weakening demand from Chinese DVD player manufacturers and the slower-than-expected ramp of new DVD recorders.