Cirrus Logic Reports September Quarter Revenue Up 23 Percent Sequentially to $190.7 Million

  Cirrus Logic Reports September Quarter Revenue Up 23 Percent Sequentially to
  $190.7 Million

  Delivers Strong Sequential Earnings Per Share and Operating Profit Growth

Business Wire

AUSTIN, Texas -- October 29, 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 second quarter fiscal year
2014, which ended Sept. 28, as well as the company’s current business outlook.

“Q2 was another great quarter for Cirrus Logic as portable audio continued to
be a key driver of our success and we made significant progress on our
strategic initiatives,” said Jason Rhode, president and chief executive
officer. “We are especially pleased with the addition of Acoustic Technologies
to the Cirrus Logic team as they are expected to accelerate our progress
toward our vision of being the preferred supplier of signal processing
components.”

Reported Financial Results – Second Quarter FY14

  *Revenue of $190.7 million;
  *Gross margin of 52 percent;
  *GAAP operating expenses of $48.8 million and non-GAAP operating expenses
    of $43.4 million; and
  *GAAP diluted earnings per share of $0.50 and non-GAAP diluted earnings per
    share of $0.84.

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

Business Outlook – Third Quarter FY14

  *Revenue is expected to range between $200 million and $220 million;
  *Gross margin is expected to be between 45 percent and 47 percent; and
  *Combined R&D and SG&A expenses are expected to range between $50 million
    and $54 million, which includes approximately $7 million in share-based
    compensation and acquisition related items.

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: 76914741).

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 Phoenix,
Ariz., 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 third quarter fiscal year 2014 revenue, gross margin, combined research and
development and selling, general and administrative expense levels,
share-based compensation expense and acquisition related items. 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 third 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                        Six Months Ended
                                                                         
                 Sep. 28,      Jun. 29,      Sep. 29,      Sep. 28,      Sep. 29,
                 2013          2013          2012          2013          2012
                 Q2'14         Q1'14         Q2'13         Q2'14         Q2'13
Audio products   $ 179,912     $ 143,666     $ 177,915     $ 323,578     $ 258,662
Energy            10,759      11,459      15,859      22,218      34,118  
products
Net revenue       190,671     155,125     193,774     345,796     292,780 
Cost of sales     91,223      75,627      93,687      166,850     139,253 
Gross Profit       99,448        79,498        100,087       178,946       153,527
Gross Margin       52.2    %     51.2    %     51.7    %     51.7    %     52.4    %
                                                                         
Research and       29,722        28,530        29,468        58,252        54,378
development
Selling,
general and        19,215        19,198        20,194        38,413        38,253
administrative
Restructuring
and other          (154    )     (430    )     -             (584    )     -
costs
Patent
settlements,      -           695         -           695         -       
net
Total
operating         48,783      47,993      49,662      96,776      92,631  
expenses
                                                                         
Operating          50,665        31,505        50,425        82,170        60,896
income
                                                                         
Interest           201           158           131           359           258
income, net
Other expense,    (38     )    (17     )    (40     )    (55     )    (63     )
net
Income before      50,828        31,646        50,516        82,474        61,091
income taxes
Provision for     17,461      11,004      15,067      28,465      18,715  
income taxes
Net income       $ 33,367     $ 20,642     $ 35,449     $ 54,009     $ 42,376  
                                                                         
Basic earnings   $ 0.53        $ 0.33        $ 0.55        $ 0.85        $ 0.65
per share:
Diluted
earnings per     $ 0.50        $ 0.31        $ 0.51        $ 0.82        $ 0.61
share:
                                                                         
Weighted
average number
of shares:
Basic              63,217        63,363        64,924        63,329        64,697
Diluted            66,125        66,188        69,207        66,203        68,920



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                     Six Months Ended
                 Sep. 28,    Jun. 29,    Sep. 29,     Sep. 28,    Sep. 29,
                 2013         2013         2012         2013         2012
Net Income       Q2'14        Q1'14        Q2'13        Q2'14        Q2'13
Reconciliation
GAAP Net         $ 33,367     $ 20,642     $ 35,449     $ 54,009     $ 42,376
Income
Amortization
of acquisition     -            -            251          -            604
intangibles
Stock based
compensation       5,739        5,774        5,563        11,513       9,736
expense
Restructuring
and other          (154   )     (430   )     -            (584   )     -
costs, net
Patent
settlements,       -            695          -            695          -
net
Provision for     16,378     10,161     13,580     26,539     16,935 
income taxes
Non-GAAP Net     $ 55,330    $ 36,842    $ 54,843    $ 92,172    $ 69,651 
Income
                                                                     
Earnings Per
Share
Reconciliation
GAAP Diluted
earnings per     $ 0.50       $ 0.31       $ 0.51       $ 0.82       $ 0.61
share
Effect of
Amortization       -            -            -            -            0.01
of acquisition
intangibles
Effect of
Stock based        0.09         0.09         0.08         0.17         0.14
compensation
expense
Effect of
Restructuring      -            -            -            (0.01  )     -
and other
costs, net
Effect of
Patent             -            0.01         -            0.01         -
settlements,
net
Effect of
Provision for     0.25       0.15       0.20       0.40       0.25   
income taxes
Non-GAAP
Diluted          $ 0.84      $ 0.56      $ 0.79      $ 1.39      $ 1.01   
earnings per
share
                                                                     
Operating
Income
Reconciliation
GAAP Operating   $ 50,665     $ 31,505     $ 50,425     $ 82,170     $ 60,896
Income
GAAP Operating     27     %     20     %     26     %     24     %     21     %
Profit
Amortization
of acquisition     -            -            251          -            604
intangibles
Stock
compensation       239          6            119          245          237
expense - COGS
Stock
compensation       2,158        2,854        2,097        5,012        4,340
expense - R&D
Stock
compensation       3,342        2,914        3,347        6,256        5,159
expense - SG&A
Restructuring
and other          (154   )     (430   )     -            (584   )     -
costs, net
Patent
settlements,      -          695        -          695        -      
net
Non-GAAP
Operating        $ 56,250    $ 37,544    $ 56,239    $ 93,794    $ 71,236 
Income
Non-GAAP
Operating          30     %     24     %     29     %     27     %     24     %
Profit
                                                                     
Operating
Expense
Reconciliation
GAAP Operating   $ 48,783     $ 47,993     $ 49,662     $ 96,776     $ 92,631
Expenses
Amortization
of acquisition     -            -            (251   )     -            (604   )
intangibles
Stock
compensation       (2,158 )     (2,854 )     (2,097 )     (5,012 )     (4,340 )
expense - R&D
Stock
compensation       (3,342 )     (2,914 )     (3,347 )     (6,256 )     (5,159 )
expense - SG&A
Restructuring
and other          154          430          -            584          -
costs, net
Patent
settlements,      -          (695   )    -          (695   )    -      
net
Non-GAAP
Operating        $ 43,437    $ 41,960    $ 43,967    $ 85,397    $ 82,528 
Expenses



CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands)
                Sep. 28,       Jun. 29,       Mar. 30,       Sep. 29,
                 2013            2013            2013            2012
                 (unaudited)     (unaudited)                     (unaudited)
ASSETS
Current assets
Cash and cash    $ 68,886        $ 67,170        $ 66,402        $ 67,846
equivalents
Marketable         199,423         165,540         105,235         66,731
securities
Accounts
receivable,        97,640          63,642          69,289          130,870
net
Inventories        91,247          110,624         119,300         144,881
Deferred tax       38,398          54,774          64,937          53,144
asset
Other current     23,978        20,810        19,371        19,845    
assets
Total Current      519,572         482,560         444,534         483,317
Assets
                                                                 
Long-term
marketable         40,254          39,408          64,910          -
securities
Property and       101,885         99,169          100,623         86,992
equipment, net
Intangibles,       4,734           4,714           4,650           5,208
net
Goodwill           6,027           6,027           6,027           6,027
Deferred tax       16,638          16,732          16,671          72,150
asset
Other assets      10,051        11,289        13,932        21,402    
Total Assets     $ 699,161      $ 659,899      $ 651,347      $ 675,096   
                                                                 
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Current
liabilities
Accounts         $ 56,868        $ 47,341        $ 60,827        $ 103,366
payable
Accrued
salaries and       16,894          13,476          16,592          15,594
benefits
Other accrued      6,313           9,532           10,704          14,218
liabilities
Deferred
income on         4,858         4,419         4,956         6,580     
shipments to
distributors
Total Current      84,933          74,768          93,079          139,758
Liabilities
                                                                 
Other
long-term          11,231          9,706           10,094          10,042
obligations
                                                                 
Stockholders'
equity:
Capital stock      1,055,256       1,048,497       1,041,834       1,025,272
Accumulated        (451,532  )     (472,180  )     (492,741  )     (499,233  )
deficit
Accumulated
other             (727      )    (892      )    (919      )    (743      )
comprehensive
loss
Total
Stockholders'     602,997       575,425       548,174       525,296   
Equity
Total
Liabilities
and              $ 699,161      $ 659,899      $ 651,347      $ 675,096   
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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