BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims against Cirrus Logic, Inc. (“Cirrus” or the “Company”) (NASDAQ:CRUS) concerning possible violations of federal securities laws. The investigation focuses on allegations that certain statements issued by the Company between July 31, 2012 and October 31, 2012 regarding the Company’s business and financial prospects were false and misleading.
Cirrus develops signal-processing integrated circuits for audio and energy markets. The investigation is related to allegations that the Company misrepresented or failed to disclose that: (1) the Company’s dependence for revenues on its biggest customer -- Apple, Inc. -- was increasing rather than diminishing; (2) the Company’s sales growth was declining rather than increasing; (3) difficulties in its supply chain and at its vendors were increasing Cirrus’s costs and diminishing the Company’s profit margins; (4) the launch of several models of Cirrus’s new LED lighting had been delayed; and (5) as a result, Cirrus’s increased fiscal 2013 guidance was not attainable.
On October 31, 2012, Cirrus announced financial guidance for its fiscal year 2013 that was significantly below market expectations, modeling revenues to be down 15% sequentially for its fiscal fourth quarter. Following this news, the price of Cirrus stock dropped $4.64 per share, to a closing price of $36.14 per share on November 1, 2012, on heavy volume of more than 17 million shares traded.
If you purchased Cirrus common stock between July 31, 2012 and October 31, 2012, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.