Cirrus Logic Reports June Quarter Revenue Up 57 Percent Year Over Year to $155 Million

  Cirrus Logic Reports June Quarter Revenue Up 57 Percent Year Over Year to
  $155 Million

          Operating Profit Increases Year Over Year and Sequentially

Business Wire

AUSTIN, Texas -- July 25, 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 first quarter fiscal year
2014, which ended June 29, as well as the company’s current business outlook.

“We are pleased to have delivered strong operating profit growth year over
year and sequentially,” said Jason Rhode, president and chief executive
officer. “During the quarter, we added new customers in portable audio and
expanded into more SKUs in LED lighting. We are especially excited about the
lineup of custom and general market products we currently have in
development.”

Reported Financial Results – First Quarter FY14

  *Revenue of $155 million;
  *Gross margin of 51.2 percent;
  *GAAP operating expenses of $48 million and non-GAAP operating expenses of
    $42 million; and
  *GAAP diluted earnings per share of $0.31 and non-GAAP diluted earnings per
    share of $0.56.

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

Business Outlook – Second Quarter FY14

  *Revenue is expected to range between $170 million and $190 million;
  *Gross margin is expected to be between 46 percent and 48 percent; and
  *Combined R&D and SG&A expenses are expected to range between $49 million
    and $53 million, which includes approximately $7 million in share-based
    compensation.

Cirrus Logic will host a live Q&A session at 5 p.m. EDT 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: 99347958).

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 profit 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 second quarter fiscal year 2014 revenue, gross margin, combined research
and development and selling, general and administrative expense levels, and
share-based compensation expense. 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 second quarter of fiscal year 2014, as well as customer
cancellations of orders, or the failure to place orders consistent with
forecasts; and the risk factors listed in our Form 10-K for the year ended
March 30, 2013, 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.


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
                                                              
                                      Three Months Ended
                                      Jun. 29,        Mar. 30,      Jun. 30,
                                      2013            2013          2012
                                      Q1'14           Q4'13         Q1'13
Audio products                        $ 143,666       $ 196,098     $ 80,747
Energy products                        11,459        10,775       18,259 
Net revenue                            155,125       206,873      99,006 
Cost of sales                          75,627        123,259      45,566 
Gross Profit                            79,498          83,614        53,440
                                                                    
Research and development                28,530          30,085        24,910
Selling, general and administrative     19,198          19,724        18,059
Other expenses, net *                  265           -            -      
Total operating expenses               47,993        49,809       42,969 
                                                                    
Operating income                        31,505          33,805        10,471
                                                                    
Interest income, net                    158             106           127
Other income (expense), net            (17     )      14           (23    )
Income before income taxes              31,646          33,925        10,575
Provision (benefit) for income         11,004        7,565        3,648  
taxes
Net income                            $ 20,642       $ 26,360      $ 6,927  
                                                                    
Basic earnings per share:             $ 0.33          $ 0.41        $ 0.11
Diluted earnings per share:           $ 0.31          $ 0.39        $ 0.10
                                                                    
Weighted average number of shares:
Basic                                   63,363          63,877        64,470
Diluted                                 66,188          67,138        68,529

Prepared in accordance with Generally Accepted Accounting Principles


* Other expenses, net 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.
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
                                      Jun. 29,     Mar. 30,       Jun. 30,
                                      2013           2013           2012
Net Income Reconciliation             Q1'14          Q4'13          Q1'13
GAAP Net Income                       $ 20,642       $ 26,360       $ 6,927
Amortization of acquisition             -              -              353
intangibles
Stock based compensation expense        5,774          5,734          4,173
International sales reorganization      -              442            -
charges
Restructuring and other costs           (430   )       -              -
Patent settlements, net                 695            -              -
Provision (benefit) for income         10,161       7,372        3,355  
taxes
Non-GAAP Net Income                   $ 36,842      $ 39,908      $ 14,808 
                                                                    
Earnings Per Share Reconciliation
GAAP Diluted earnings per share       $ 0.31         $ 0.39         $ 0.10
Effect of Amortization of               -              -              0.01
acquisition intangibles
Effect of Stock based compensation      0.09           0.09           0.06
expense
Effect of International sales           -              0.01           -
reorganization charges
Effect of Patent settlements, net       0.01           -              -
Effect of Provision (benefit) for      0.15         0.10         0.05   
income taxes
Non-GAAP Diluted earnings per share   $ 0.56        $ 0.59        $ 0.22   
                                                                    
Operating Income Reconciliation
GAAP Operating Income                 $ 31,505       $ 33,805       $ 10,471
GAAP Operating Profit                   20     %       16     %       11     %
Amortization of acquisition             -              -              353
intangibles
Stock compensation expense - COGS       6              296            118
Stock compensation expense - R&D        2,854          2,976          2,243
Stock compensation expense - SG&A       2,914          2,462          1,812
International sales reorganization      -              442            -
charges
Restructuring and other costs           (430   )       -              -
Patent settlements, net                695          -            -      
Non-GAAP Operating Income             $ 37,544      $ 39,981      $ 14,997 
Non-GAAP Operating Profit               24     %       19     %       15     %
                                                                    
Operating Expense Reconciliation
GAAP Operating Expenses               $ 47,993       $ 49,809       $ 42,969
Amortization of acquisition             -              -              (353   )
intangibles
Stock compensation expense - R&D        (2,854 )       (2,976 )       (2,243 )
Stock compensation expense - SG&A       (2,914 )       (2,462 )       (1,812 )
International sales reorganization      -              (442   )       -
charges
Restructuring and other costs           430            -              -
Patent settlements, net                (695   )      -            -      
Non-GAAP Operating Expenses           $ 41,960      $ 43,929      $ 38,561 
                                                                             


CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands)

                            Jun. 29,        Mar. 30,        Jun. 30,
                             2013              2013              2012
                             (unaudited)                         (unaudited)
ASSETS
Current assets
Cash and cash equivalents    $ 67,170          $ 66,402          $ 84,312
Restricted investments         -                 -                 -
Marketable securities          165,540           105,235           82,359
Accounts receivable, net       63,642            69,289            49,262
Inventories                    110,624           119,300           96,790
Deferred tax asset             54,774            64,937            53,139
Other current assets          20,810          19,371          14,574    
Total Current Assets           482,560           444,534           380,436
                                                                 
Long-term marketable           39,408            64,910            -
securities
Property and equipment,        99,169            100,623           85,337
net
Intangibles, net               4,714             4,650             18,457
Goodwill                       6,027             6,027             6,027
Deferred tax asset             16,732            16,671            85,721
Other assets                  11,289          13,932          9,300     
Total Assets                 $ 659,899        $ 651,347        $ 585,278   
                                                                 
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable             $ 47,341          $ 60,827          $ 75,507
Accrued salaries and           13,476            16,592            10,956
benefits
Other accrued liabilities      9,532             10,704            9,498
Deferred income on            4,419           4,956           7,158     
shipments to distributors
Total Current Liabilities      74,768            93,079            103,119
                                                                 
Other long-term                9,706             10,094            4,159
obligations
                                                                 
Stockholders' equity:
Capital stock                  1,048,497         1,041,834         1,013,442
Accumulated deficit            (472,180  )       (492,741  )       (534,682  )
Accumulated other             (892      )      (919      )      (760      )
comprehensive loss
Total Stockholders' Equity    575,425         548,174         478,000   
Total Liabilities and        $ 659,899        $ 651,347        $ 585,278   
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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