Cirrus Logic Reports December Quarter Revenue Up 153 Percent Year-Over-Year to $310 Million

  Cirrus Logic Reports December Quarter Revenue Up 153 Percent Year-Over-Year
  to $310 Million

 Company Guides March Quarter Revenue Up More than 80 Percent Year-Over-Year

Business Wire

AUSTIN, Texas -- January 24, 2013

Cirrus Logic, Inc. (Nasdaq: CRUS),  a leader in high-precision analog and
digital signal processing components, today posted on its investor relations
website at http://investor.cirrus.com the quarterly Shareholder Letter that
contains the complete financial results for the third quarter of fiscal year
2013, which ended Dec. 29, as well as the company’s current business outlook.

“Q3 was a great quarter for Cirrus Logic as demand for multiple new products
in portable audio drove revenue above our expectations,” said Jason Rhode,
president and chief executive officer. “During the quarter, we gained traction
with our portable audio and LED lighting products, where we began shipping in
additional SKUs and customers. Our outlook for the year remains on track, and
we are positioned well for further growth in FY14. We continue to see
significant opportunities to grow our business with both new and existing
customers.”

Reported Financial Results – Third Quarter FY2013

  *Revenue of $310 million;
  *Gross margin of 51 percent;
  *GAAP operating expenses of $52 million and non-GAAP operating expenses of
    $43 million;
  *GAAP diluted earnings per share of $ 0.99 and non-GAAP diluted earnings
    per share of $1.64.

A reconciliation of the non-GAAP charges is included in the tables
accompanying this press release.

Business Outlook – Fourth Quarter FY2013

  *Revenue is expected to range between $200 million and $220 million;
  *Gross margin is expected to be between 50 percent and 52 percent;
  *Combined R&D and SG&A expenses are expected to range between $49 million
    and $51 million, which includes approximately $6 million in share-based
    compensation.

Cirrus Logic will host a live Q&A session at 5 p.m. EST today to answer
questions related to its financial results and business outlook. Participants
may listen to the conference call on the Cirrus Logic website. Participants
who would like to submit a question to be addressed during the call are
requested to email investor.relations@cirrus.com. A replay of the webcast can
be accessed on the Cirrus Logic website approximately two hours following its
completion, or by calling (404) 537-3406, or toll-free at (855) 859-2056
(Access Code: 86031084).

Cirrus Logic, Inc.

Cirrus Logic develops high-precision, analog and mixed-signal integrated
circuits for a broad range of innovative customers. Building on its diverse
analog and signal-processing patent portfolio, Cirrus Logic delivers highly
optimized products for a variety of audio and energy-related applications. The
company operates from headquarters in Austin, Texas, with offices in Europe,
Japan and Asia. More information about Cirrus Logic is available at
www.cirrus.com.

Use of non-GAAP Financial Information

To supplement Cirrus Logic's financial statements presented on a GAAP basis,
Cirrus has provided non-GAAP financial information, including operating
expenses, net income, operating margin and diluted earnings per share. A
reconciliation of the adjustments to GAAP results is included in the tables
below. Non-GAAP financial information is not meant as a substitute for GAAP
results, but is included because management believes such information is
useful to our investors for informational and comparative purposes. In
addition, certain non-GAAP financial information is used internally by
management to evaluate and manage the company. The non-GAAP financial
information used by Cirrus Logic may differ from that used by other companies.
These non-GAAP measures should be considered in addition to, and not as a
substitute for, the results prepared in accordance with GAAP.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in
this news release contain forward-looking statements, including our estimates
of fourth quarter fiscal year 2013 revenue, gross margin, combined research
and development and selling, general and administrative expense levels, and
share-based compensation expense, as well as estimates for our fiscal year
2014 revenue growth. In some cases, forward-looking statements are identified
by words such as “expect,” “anticipate,” “target,” “project,” “believe,”
“goals,” “opportunity,” “estimates,” “intend,” and variations of these types
of words and similar expressions. In addition, any statements that refer to
our plans, expectations, strategies or other characterizations of future
events or circumstances are forward-looking statements. These forward-looking
statements are based on our current expectations, estimates and assumptions
and are subject to certain risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties include, but are
not limited to, the following: the level of orders and shipments during the
fourth quarter and complete fiscal year 2013, as well as customer
cancellations of orders, or the failure to place orders consistent with
forecasts; our ability to introduce and ramp production of new products in a
timely manner; and the risk factors listed in our Form 10-K for the year ended
March 31, 2012, and in our other filings with the Securities and Exchange
Commission, which are available at www.sec.gov. The foregoing information
concerning our business outlook represents our outlook as of the date of this
news release, and we undertake no obligation to update or revise any
forward-looking statements, whether as a result of new developments or
otherwise.

Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc.

CRUS-F

                       Summary financial data follows:


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
                                                                        
                 Three Months Ended                                Nine Months Ended
                 Dec. 29,        Sep. 29,        Dec. 31,          Dec. 29,        Dec. 31,
                 2012            2012            2011              2012            2011
                 Q3'13           Q2'13           Q3'12             Q3'13           Q3'12
Audio products   $ 300,010       $ 177,915       $ 105,418         $ 558,671       $ 260,220
Energy            10,123        15,859        16,950          44,242        55,992  
products
Net revenue       310,133       193,774       122,368         602,913       316,212 
Cost of sales     152,083       93,687        56,338          291,336       148,118 
Gross Profit       158,050         100,087         66,030            311,577         168,094
                                                                                   
Research and       29,608          29,468          23,143            83,986          61,592
development
Selling,
general and        19,021          20,194          16,488            57,274          47,854
administrative
Restructuring
and other         3,292         -             -               3,292         -       
costs
Total
operating         51,921        49,662        39,631          144,552       109,446 
expenses
                                                                                   
Operating          106,129         50,425          26,399            167,025         58,648
income
                                                                                   
Interest           76              131             112               334             378
income, net
Other expense,    (31     )      (40     )      (71     )        (94     )      (115    )
net
Income before      106,174         50,516          26,440            167,265         58,911
income taxes
Provision for     38,312        15,067        9,709           57,027        21,755  
income taxes
Net income       $ 67,862       $ 35,449       $ 16,731         $ 110,238      $ 37,156  
                                                                                   
Basic earnings   $ 1.04          $ 0.55          $ 0.26            $ 1.70          $ 0.57
per share:
Diluted
earnings per     $ 0.99          $ 0.51          $ 0.25            $ 1.60          $ 0.55
share:
                                                                                   
Weighted
average number
of shares:
Basic              65,055          64,924          63,957            64,859          65,161
Diluted            68,866          69,207          66,989            68,946          68,099
                                                                                   
See notes to Consolidated Condensed Statement of Operations
Prepared in accordance with Generally Accepted Accounting Principles



CIRRUS LOGIC, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(unaudited, in thousands, except per share data)
(not prepared in accordance with GAAP)
                                                                      
Non-GAAP financial information is not meant as a substitute for GAAP results, but is
included because management believes such information is useful to our investors for
informational and comparative purposes. In addition, certain non-GAAP financial information
is used internally by management to evaluate and manage the company. As a note, the non-GAAP
financial information used by Cirrus Logic may differ from that used by other companies.
These non-GAAP measures should be considered in addition to, and not as a substitute for,
the results prepared in accordance with GAAP.
                                                                                 
                                                                                 
                                                                                 
                 Three Months Ended                              Nine Months Ended
                 Dec. 29,        Sep. 29,       Dec. 31,         Dec. 29,        Dec. 31,
                 2012            2012           2011             2012            2011
Net Income       Q3'13           Q2'13          Q3'12            Q3'13           Q3'12
Reconciliation
GAAP Net         $ 67,862        $ 35,449       $ 16,731         $ 110,238       $ 37,156
Income
Amortization
of acquisition     -               251            353              604             1,059
intangibles
Stock based
compensation       6,026           5,563          2,769            15,762          8,728
expense
Restructuring
and other          3,245           -              -                3,245           622
costs, net **
Provision for     35,667        13,580       8,992          52,602        20,139  
income taxes
Non-GAAP Net     $ 112,800      $ 54,843      $ 28,845        $ 182,451      $ 67,704  
Income
                                                                                 
Earnings Per
Share
Reconciliation
*
GAAP Diluted
earnings per     $ 0.99          $ 0.51         $ 0.25           $ 1.60          $ 0.55
share
Effect of
Amortization       -               -              0.01             0.01            0.02
of acquisition
intangibles
Effect of
Stock based        0.09            0.08           0.04             0.23            0.13
compensation
expense
Effect of
Restructuring      0.05            -              -                0.05            -
and other
costs, net **
Effect of
Provision for     0.51          0.20         0.13           0.76          0.29    
income taxes
Non-GAAP
Diluted          $ 1.64         $ 0.79        $ 0.43          $ 2.65         $ 0.99    
earnings per
share
                                                                                 
Operating
Income
Reconciliation
GAAP Operating   $ 106,129       $ 50,425       $ 26,399         $ 167,025       $ 58,648
Income
GAAP Operating     34      %       26     %       22     %         28      %       19      %
Margin
Amortization
of acquisition     -               251            353              604             1,059
intangibles
Stock
compensation       218             119            92               455             285
expense - COGS
Stock
compensation       3,234           2,097          1,613            7,574           3,837
expense - R&D
Stock
compensation       2,574           3,347          1,064            7,733           4,606
expense - SG&A
Restructuring
and other         3,245         -            -              3,245         622     
costs, net **
Non-GAAP
Operating        $ 115,400      $ 56,239      $ 29,521        $ 186,636      $ 69,057  
Income
Non-GAAP
Operating          37      %       29     %       24     %         31      %       22      %
Margin
                                                                                 
Operating
Expense
Reconciliation
GAAP Operating   $ 51,921        $ 49,662       $ 39,631         $ 144,552       $ 109,446
Expenses
Amortization
of acquisition     -               (251   )       (353   )         (604    )       (1,059  )
intangibles
Stock
compensation       (3,234  )       (2,097 )       (1,613 )         (7,574  )       (3,837  )
expense - R&D
Stock
compensation       (2,574  )       (3,347 )       (1,064 )         (7,733  )       (4,606  )
expense - SG&A
Restructuring
and other         (3,245  )      -            -              (3,245  )      (622    )
costs, net **
Non-GAAP
Operating        $ 42,868       $ 43,967      $ 36,601        $ 125,396      $ 99,322  
Expenses
                                                                                 
* Certain YTD numbers may not tie to individual quarter presentation due to YTD share count
dilution
** Other expenses (proceeds) may contain certain items such as litigation expenses, proceeds
from a patent agreement, restructuring items, sales reorganizations, asset gains and
impairments of non-marketable securities.


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands
                           
                            Dec. 29,        Sep. 29,        Dec. 31,
                             2012              2012              2011
ASSETS
Current assets
Cash and cash equivalents    $ 87,452          $ 67,846          $ 38,010
Restricted investments         -                 -                 2,898
Marketable securities          60,717            66,731            99,342
Accounts receivable, net       170,683           130,870           54,512
Inventories                    135,023           144,881           58,079
Deferred tax asset             53,140            53,144            30,798
Other current assets          21,775          19,845          16,116    
Total Current Assets           528,790           483,317           299,755
                                                                 
Long-term marketable           -                 -                 20,092
securities
Property and equipment,        100,534           86,992            57,263
net
Intangibles, net               4,920             5,208             18,596
Goodwill                       6,027             6,027             6,027
Deferred tax asset             36,466            72,150            82,071
Other assets                  15,761          21,402          10,813    
Total Assets                 $ 692,498        $ 675,096        $ 494,617   
                                                                 
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable             $ 95,493          $ 103,366         $ 45,104
Accrued salaries and           13,752            15,594            11,539
benefits
Other accrued liabilities      13,992            14,218            14,259
Deferred income on            5,579           6,580           8,511     
shipments to distributors
Total Current Liabilities      128,816           139,758           79,413
                                                                 
Other long-term                10,131            10,042            6,494
obligations
                                                                 
Stockholders' equity:
Capital stock                  1,033,549         1,025,272         1,001,967
Accumulated deficit            (479,225  )       (499,233  )       (592,436  )
Accumulated other             (773      )      (743      )      (821      )
comprehensive loss
Total Stockholders' Equity    553,551         525,296         408,710   
Total Liabilities and        $ 692,498        $ 675,096        $ 494,617   
Stockholders' Equity
                                                                 
Prepared in accordance with Generally Accepted Accounting Principles

Contact:

Cirrus Logic, Inc.
Thurman K. Case, 512-851-4125
Chief Financial Officer
Investor.Relations@cirrus.com
 
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