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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