Cirrus Logic Reports December Quarter Revenue Up 15 Percent Sequentially to $218.9 Million

  Cirrus Logic Reports December Quarter Revenue Up 15 Percent Sequentially to
  $218.9 Million

  Completes Acquisition of Leading Voice-Based Technology Supplier Acoustic
                                 Technologies

Business Wire

AUSTIN, Texas -- January 28, 2014

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 fiscal year
2014, which ended Dec. 28, as well as the company’s current business outlook.

“We delivered strong revenue, operating profit and EPS results for the third
quarter,” said Jason Rhode, president and chief executive officer. “While our
business is typically driven by product cycles that weight our revenue more
heavily towards the September and December quarters, we expect to exceed our
operating profit goal of 20 percent in FY14 and we remain committed to this
long-term target. We are extremely excited to be taping out a wave of new
products in advanced geometries this year as we look to capitalize on
strategic opportunities in audio with new and existing customers, especially
the growing trend of voice as a powerful interface to a wide variety of
devices. We anticipate these products will contribute to future revenue growth
as early as calendar year 2015.”

Reported Financial Results – Third Quarter FY14

  *Revenue of $218.9 million;
  *Gross margin of 47.4 percent;
  *GAAP operating expenses of $51 million and non-GAAP operating expenses of
    $45 million; and
  *GAAP diluted earnings per share of $0.63 and non-GAAP diluted earnings per
    share of $0.89.

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

Business Outlook – Fourth Quarter FY14

  *Revenue is expected to range between $130 million and $150 million;
  *Gross margin is expected to be between 47 percent and 49 percent; and
  *Combined R&D and SG&A expenses are expected to range between $51 million
    and $55 million, which includes approximately $6 million in share-based
    compensation and amortization of acquired intangibles.

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: 27210276).

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 fourth quarter fiscal year 2014 revenue, gross margin, combined research
and development and selling, general and administrative expense levels,
share-based compensation expense and amortization of acquired intangibles. 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
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.

                       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. 28,      Sep. 28,      Dec. 29,      Dec. 28,      Dec. 29,
                   2013          2013          2012          2013          2012
                   Q3'14         Q2'14         Q3'13         Q3'14         Q3'13
Audio products     $ 206,388     $ 179,912     $ 300,010     $ 529,966     $ 558,671
Energy              12,495      10,759      10,123      34,713      44,242  
products
Net revenue         218,883     190,671     310,133     564,679     602,913 
Cost of sales       115,034     91,223      152,083     281,884     291,336 
Gross Profit         103,849       99,448        158,050       282,795       311,577
Gross Margin         47.4    %     52.2    %     51.0    %     50.1    %     51.7    %
                                                                           
Research and         32,426        29,722        29,608        90,678        83,986
development
Selling,
general and          18,625        19,215        19,021        57,038        57,274
administrative
Restructuring
and other            12            (154    )     3,539         (572    )     3,539
costs
Gain on sale         -             -             (247    )     -             (247    )
of asset
Patent
settlements,        -           -           -           695         -       
net
Total
operating           51,063      48,783      51,921      147,839     144,552 
expenses
                                                                           
Operating            52,786        50,665        106,129       134,956       167,025
income
                                                                           
Interest             222           201           76            581           334
income, net
Other income        (45     )    (38     )    (31     )    (100    )    (94     )
(expense), net
Income before        52,963        50,828        106,174       135,437       167,265
income taxes
Provision
(benefit) for       11,463      17,461      38,312      39,928      57,027  
income taxes
Net income         $ 41,500     $ 33,367     $ 67,862     $ 95,509     $ 110,238 
                                                                           
Basic earnings     $ 0.66        $ 0.53        $ 1.04        $ 1.51        $ 1.70
per share:
Diluted
earnings per       $ 0.63        $ 0.50        $ 0.99        $ 1.45        $ 1.60
share:
                                                                           
Weighted
average number
of shares:
Basic                62,854        63,217        65,055        63,170        64,859
Diluted              65,368        66,125        68,866        65,894        68,946
                                                                           
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. 28,     Sep. 28,     Dec. 29,      Dec. 28,    Dec. 29,
                   2013         2013         2012          2013        2012
Net Income         Q3'14        Q2'14        Q3'13         Q3'14       Q3'13
Reconciliation
GAAP Net           $ 41,500     $ 33,367     $ 67,862      $ 95,509    $ 110,238
Income
Amortization
of acquisition       275          -            -             275         604
intangibles
Stock based
compensation         6,016        5,739        6,026         17,529      15,762
expense
International
sales                -            -            (47     )     -           (47     )
reorganization
charges
Restructuring
and other            12           (154   )     3,539         (572    )   3,539
costs, net
Gain on asset        -            -            (247    )     -           (247    )
sale
Patent
settlements,         -            -            -             695         -
net
Provision
(benefit) for       10,300     16,378     35,667      36,839    52,602  
income taxes
Non-GAAP Net       $ 58,103    $ 55,330    $ 112,800    $ 150,275  $ 182,451 
Income
                                                                       
Earnings Per
Share
Reconciliation
GAAP Diluted
earnings per       $ 0.63       $ 0.50       $ 0.99        $ 1.45      $ 1.60
share
Effect of
Amortization         -            -            -             -           0.01
of acquisition
intangibles
Effect of
Stock based          0.10         0.09         0.09          0.27        0.23
compensation
expense
Effect of
Restructuring        -            -            0.05          (0.01   )   0.05
and other
costs, net
Effect of
Patent               -            -            -             0.01        -
settlements,
net
Effect of
Provision            0.16         0.25         0.51          0.56        0.76
(benefit) for
income taxes
                                                                   
Non-GAAP
Diluted            $ 0.89      $ 0.84      $ 1.64       $ 2.28     $ 2.65    
earnings per
share
                                                                       
Operating
Income
Reconciliation
GAAP Operating     $ 52,786     $ 50,665     $ 106,129     $ 134,956   $ 167,025
Income
GAAP Operating       24     %     27     %     34      %     24      %   28      %
Profit
Amortization
of acquisition       275          -            -             275         604
intangibles
Stock
compensation         332          239          218           577         455
expense - COGS
Stock
compensation         2,834        2,158        3,234         7,846       7,574
expense - R&D
Stock
compensation         2,850        3,342        2,574         9,106       7,733
expense - SG&A
International
sales                -            -            (47     )     -           (47     )
reorganization
charges
Restructuring
and other            12           (154   )     3,539         (572    )   3,539
costs, net
Gain on asset        -            -            (247    )     -           (247    )
sale
Patent
settlements,        -          -          -           695       -       
net
Non-GAAP
Operating          $ 59,089    $ 56,250    $ 115,400    $ 152,883  $ 186,636 
Income
Non-GAAP
Operating            27     %     30     %     37      %     27      %   31      %
Profit
                                                                       
Operating
Expense
Reconciliation
GAAP Operating     $ 51,063     $ 48,783     $ 51,921      $ 147,839   $ 144,552
Expenses
Amortization
of acquisition       (275   )     -            -             (275    )   (604    )
intangibles
Stock
compensation         (2,834 )     (2,158 )     (3,234  )     (7,846  )   (7,574  )
expense - R&D
Stock
compensation         (2,850 )     (3,342 )     (2,574  )     (9,106  )   (7,733  )
expense - SG&A
International
sales                -            -            47            -           47
reorganization
charges
Restructuring
and other            (12    )     154          (3,539  )     572         (3,539  )
costs, net
Gain on asset        -            -            247           -           247
sale
Patent
settlements,        -          -          -           (695    )  -       
net
Non-GAAP
Operating          $ 45,092    $ 43,437    $ 42,868     $ 130,489  $ 125,396 
Expenses

                                                            
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands

                                 Dec. 28,        Sep. 28,        Dec. 29,
                                 2013            2013            2012
ASSETS
Current assets
Cash and cash equivalents        $ 74,690        $ 68,886        $ 87,452
Restricted investments             -               -               -
Marketable securities              215,792         199,423         60,717
Accounts receivable, net           109,535         97,640          170,683
Inventories                        69,985          91,247          135,023
Deferred tax asset                 33,155          38,398          53,140
Other current assets              25,662        23,978        21,775    
Total Current Assets               528,819         519,572         528,790
                                                                 
Long-term marketable               37,115          40,254          -
securities
Property and equipment, net        102,542         101,885         100,534
Intangibles, net                   13,427          4,734           4,920
Goodwill                           16,335          6,027           6,027
Deferred tax asset                 17,354          16,638          36,466
Other assets                      6,848         10,051        15,761    
Total Assets                     $ 722,440      $ 699,161      $ 692,498   
                                                                 
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                 $ 60,493        $ 56,868        $ 95,493
Accrued salaries and               13,937          16,894          13,752
benefits
Other accrued liabilities          12,881          6,313           13,992
Deferred income on shipments      4,998         4,858         5,579     
to distributors
Total Current Liabilities          92,309          84,933          128,816
                                                                 
Other long-term obligations        5,108           11,231          10,131
                                                                 
Stockholders' equity:
Capital stock                      1,069,113       1,055,256       1,033,549
Accumulated deficit                (443,322  )     (451,532  )     (479,225  )
Accumulated other                 (768      )    (727      )    (773      )
comprehensive loss
Total Stockholders' Equity        625,023       602,997       553,551   
Total Liabilities and            $ 722,440      $ 699,161      $ 692,498   
Stockholders' Equity
                                                                 
Prepared in accordance with Generally Accepted Accounting Principles

Contact:

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