Cirrus Logic Reports Q4 Revenue of $149.7 Million and Full FY14 Revenue of $714.3 Million

  Cirrus Logic Reports Q4 Revenue of $149.7 Million and Full FY14 Revenue of
  $714.3 Million

 Delivers Annual Operating Profit of 22 Percent GAAP and 25 Percent Non-GAAP

Jefferies 2014 Global TMT Conference

Business Wire

AUSTIN, Texas -- April 24, 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 fourth quarter and full fiscal
year 2014, which ended March 29, as well as the company’s current business
outlook.

“Cirrus Logic is entering into FY15 with a robust pipeline of innovative
products, a compelling roadmap pairing our best in class hardware with
embedded SoundClear^® software and solid relationships with leading players in
our target markets,” said Jason Rhode, president and chief executive officer.
“Many of our new developments are now under way in more advanced process
geometries, allowing our engineers to add meaningful signal processing
capabilities to our products and significantly enhance the value we add for
our customers.”

Reported Financial Results – Fourth Quarter FY14

  *Revenue of $149.7 million;
  *Gross margin of 49 percent;
  *GAAP operating expenses of $53.3 million and non-GAAP operating expenses
    of $47.9 million; and
  *GAAP diluted earnings per share of $0.20 and non-GAAP diluted earnings per
    share of $0.41.

Reported Financial Results – Complete FY14

  *Revenue of $714.3 million;
  *Gross margin of 50 percent;
  *GAAP operating expenses of $201.1 million and non-GAAP operating expenses
    of $178.3 million; and
  *GAAP diluted earnings per share of $1.65 and non-GAAP diluted earnings per
    share of $2.69.

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

Business Outlook – First Quarter FY15

  *Revenue is expected to range between $135 million and $155 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 $57 million
    and $62 million, which includes approximately $7 million in share-based
    compensation and amortization of acquired intangibles.

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: 23057089).

Upcoming Investor Conference

Cirrus Logic CEO Jason Rhode will present at the Jefferies 2014 Global
Technology, Media and Telecom Conference in Miami on May 6 at 12:00 pm EDT. A
live webcast of the presentation will be available on the company's investor
relations website http://investor.cirrus.com. An archived replay of the
webcast will be available for 90 days on the website following the event.

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 first quarter fiscal year 2015 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 first quarter
of fiscal year 2015, 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, Cirrus and SoundClear are registered 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                        Twelve Months Ended
                   Mar. 29,      Dec. 28,      Mar. 30,      Mar. 29,      Mar. 30,
                   2014          2013          2013          2014          2013
                   Q4'14         Q3'14         Q4'13         Q4'14         Q4'13
Audio products     $ 137,773     $ 206,388     $ 196,098     $ 667,739     $ 754,769
Energy              11,886      12,495      10,775      46,599      55,017  
products
Net revenue         149,659     218,883     206,873     714,338     809,786 
Cost of sales       76,291      115,034     123,259     358,175     414,595 
Gross Profit         73,368        103,849       83,614        356,163       395,191
Gross Margin         49.0    %     47.4    %     40.4    %     49.9    %     48.8    %
                                                                           
Research and         35,511        32,426        30,085        126,189       114,071
development
Selling,
general and          17,823        18,625        19,724        74,861        76,998
administrative
Restructuring
and other            (26     )     12            -             (598    )     3,539
costs
Gain on sale         -             -             -             -             (247    )
of asset
Patent
settlements,        -           -           -           695         -       
net
Total
operating           53,308      51,063      49,809      201,147     194,361 
expenses
                                                                           
Operating            20,060        52,786        33,805        155,016       200,830
income
                                                                           
Interest             267           222           106           848           440
income, net
Other income        (27     )    (45     )    14          (127    )    (80     )
(expense), net
Income before        20,300        52,963        33,925        155,737       201,190
income taxes
Provision for       7,698       11,463      7,565       47,626      64,592  
income taxes
Net income         $ 12,602     $ 41,500     $ 26,360     $ 108,111    $ 136,598 
                                                                           
Basic earnings     $ 0.20        $ 0.66        $ 0.41        $ 1.72        $ 2.12
per share:
Diluted
earnings per       $ 0.20        $ 0.63        $ 0.39        $ 1.65        $ 2.00
share:
                                                                           
Weighted
average number
of shares:
Basic                62,215        62,854        63,877        62,926        64,580
Diluted              64,545        65,368        67,138        65,535        68,454
                                                                           
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. Certain modifications to prior year
non-GAAP presentation has been made and had no material effect on the results
of operations.

                                                      
                   Three Months Ended                     Twelve Months Ended
                   Mar. 29,    Dec. 28,    Mar. 30,     Mar. 29,     Mar. 30,
                   2014         2013         2013         2014          2013
Net Income         Q4'14        Q3'14        Q4'13        Q4'14         Q4'13
Reconciliation
GAAP Net           $ 12,602     $ 41,500     $ 26,360     $ 108,111     $ 136,598
Income
Amortization
of acquisition       217          275          -            492           604
intangibles
Stock based
compensation         5,545        6,016        5,734        23,074        21,496
expense
International
sales                -            -            442          -             395
reorganization
charges
Restructuring
and other            (26    )     12           -            (598    )     3,539
costs, net
Gain on asset        -            -            -            -             (247    )
sale
Patent
settlements,         -            -            -            695           -
net
Provision for       7,808      10,300     7,041      44,647      59,643  
income taxes
Non-GAAP Net       $ 26,146    $ 58,103    $ 39,577    $ 176,421    $ 222,028 
Income
                                                                        
Earnings Per
Share
Reconciliation
GAAP Diluted
earnings per       $ 0.20       $ 0.63       $ 0.39       $ 1.65        $ 2.00
share
Effect of
Amortization         -            -            -            0.01          0.01
of acquisition
intangibles
Effect of
Stock based          0.09         0.10         0.09         0.35          0.31
compensation
expense
Effect of
International
sales                -            -            0.01         -             -
reorganization
charges
Effect of
Restructuring        -            -            -            (0.01   )     0.05
and other
costs, net
Effect of
Patent               -            -            -            0.01          -
settlements,
net
Effect of
Provision for       0.12       0.16       0.10       0.68        0.87    
income taxes
Non-GAAP
Diluted            $ 0.41      $ 0.89      $ 0.59      $ 2.69       $ 3.24    
earnings per
share
                                                                        
Operating
Income
Reconciliation
GAAP Operating     $ 20,060     $ 52,786     $ 33,805     $ 155,016     $ 200,830
Income
GAAP Operating       13     %     24     %     16     %     22      %     25      %
Profit
Amortization
of acquisition       217          275          -            492           604
intangibles
Stock
compensation         287          332          296          864           751
expense - COGS
Stock
compensation         2,546        2,834        2,976        10,392        10,550
expense - R&D
Stock
compensation         2,712        2,850        2,462        11,818        10,195
expense - SG&A
International
sales                -            -            442          -             395
reorganization
charges
Restructuring
and other            (26    )     12           -            (598    )     3,539
costs, net
Gain on asset        -            -            -            -             (247    )
sale
Patent
settlements,        -          -          -          695         -       
net
Non-GAAP
Operating          $ 25,796    $ 59,089    $ 39,981    $ 178,679    $ 226,617 
Income
Non-GAAP
Operating            17     %     27     %     19     %     25      %     28      %
Profit
                                                                        
Operating
Expense
Reconciliation
GAAP Operating     $ 53,308     $ 51,063     $ 49,809     $ 201,147     $ 194,361
Expenses
Amortization
of acquisition       (217   )     (275   )     -            (492    )     (604    )
intangibles
Stock
compensation         (2,546 )     (2,834 )     (2,976 )     (10,392 )     (10,550 )
expense - R&D
Stock
compensation         (2,712 )     (2,850 )     (2,462 )     (11,818 )     (10,195 )
expense - SG&A
International
sales                -            -            (442   )     -             (395    )
reorganization
charges
Restructuring
and other            26           (12    )     -            598           (3,539  )
costs, net
Gain on asset        -            -            -            -             247
sale
Patent
settlements,        -          -          -          (695    )    -       
net
Non-GAAP
Operating          $ 47,859    $ 45,092    $ 43,929    $ 178,348    $ 169,325 
Expenses

                                                            
                                                                 
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands
                                                                 
                                 Mar. 29,        Dec. 28,        Mar. 30,
                                 2014            2013            2013
ASSETS
Current assets
Cash and cash equivalents        $ 31,850        $ 74,690        $ 66,402
Restricted investments             -               -               -
Marketable securities              263,417         215,792         105,235
Accounts receivable, net           63,220          109,535         69,289
Inventories                        69,743          69,985          119,300
Deferred tax asset                 22,024          33,155          64,937
Other current assets              25,079        25,662        19,371    
Total Current Assets               475,333         528,819         444,534
                                                                 
Long-term marketable               89,243          37,115          64,910
securities
Property and equipment, net        103,650         102,542         100,623
Intangibles, net                   11,999          13,427          4,650
Goodwill                           16,367          16,335          6,027
Deferred tax asset                 25,065          17,354          16,671
Other assets                      3,087         6,848         13,932    
Total Assets                     $ 724,744      $ 722,440      $ 651,347   
                                                                 
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                 $ 51,932        $ 60,493        $ 60,827
Accrued salaries and               13,388          13,937          16,592
benefits
Other accrued liabilities          11,572          12,881          10,704
Deferred income on shipments      5,631         4,998         4,956     
to distributors
Total Current Liabilities          82,523          92,309          93,079
                                                                 
Other long-term obligations        4,863           5,108           10,094
                                                                 
Stockholders' equity:
Capital stock                      1,078,878       1,069,113       1,041,834
Accumulated deficit                (440,634  )     (443,322  )     (492,741  )
Accumulated other                 (886      )    (768      )    (919      )
comprehensive loss
Total Stockholders' Equity        637,358       625,023       548,174   
Total Liabilities and            $ 724,744      $ 722,440      $ 651,347   
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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