Cirrus Logic Reports December Quarter Revenue Up 153 Percent Year-Over-Year to $310 Million

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Cirrus Logic Reports December Quarter Revenue Up 153 Percent Year-Over-Year to $310 Million

Company Guides March Quarter Revenue Up More than 80 Percent Year-Over-Year

AUSTIN, Texas--(BUSINESS WIRE)-- Cirrus Logic, Inc. (NAS: 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 of fiscal year 2013, which ended Dec. 29, as well as the company's current business outlook.


"Q3 was a great quarter for Cirrus Logic as demand for multiple new products in portable audio drove revenue above our expectations," said Jason Rhode, president and chief executive officer. "During the quarter, we gained traction with our portable audio and LED lighting products, where we began shipping in additional SKUs and customers. Our outlook for the year remains on track, and we are positioned well for further growth in FY14. We continue to see significant opportunities to grow our business with both new and existing customers."

Reported Financial Results - Third Quarter FY2013

  • Revenue of $310 million;
  • Gross margin of 51 percent;
  • GAAP operating expenses of $52 million and non-GAAP operating expenses of $43 million;
  • GAAP diluted earnings per share of $ 0.99 and non-GAAP diluted earnings per share of $1.64.

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

Business Outlook - Fourth Quarter FY2013

  • Revenue is expected to range between $200 million and $220 million;
  • Gross margin is expected to be between 50 percent and 52 percent;
  • Combined R&D and SG&A expenses are expected to range between $49 million and $51 million, which includes approximately $6 million in share-based compensation.

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: 86031084).

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 margin 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 2013 revenue, gross margin, combined research and development and selling, general and administrative expense levels, and share-based compensation expense, as well as estimates for our fiscal year 2014 revenue growth. 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 and complete fiscal year 2013, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; our ability to introduce and ramp production of new products in a timely manner; and the risk factors listed in our Form 10-K for the year ended March 31, 2012, and in our other filings with the Securities and Exchange Commission, which are available atwww.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.

CRUS-F

Summary financial data follows:

 
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
          
Three Months EndedNine Months Ended
Dec. 29,Sep. 29,Dec. 31,Dec. 29,Dec. 31,
20122012201120122011
Q3'13Q2'13Q3'12Q3'13Q3'12
Audio products$300,010$177,915$105,418$558,671$260,220
Energy products 10,123  15,859  16,950  44,242  55,992 
Net revenue 310,133  193,774  122,368  602,913  316,212 
Cost of sales 152,083  93,687  56,338  291,336  148,118 
Gross Profit158,050100,08766,030311,577168,094
 
Research and development29,60829,46823,14383,98661,592
Selling, general and administrative19,02120,19416,48857,27447,854
Restructuring and other costs 3,292  -  -  3,292  - 
Total operating expenses 51,921  49,662  39,631  144,552  109,446 
 
Operating income106,12950,42526,399167,02558,648
 
Interest income, net76131112334378
Other expense, net (31) (40) (71) (94) (115)
Income before income taxes106,17450,51626,440167,26558,911
Provision for income taxes 38,312  15,067  9,709  57,027  21,755 
Net income$67,862 $35,449 $16,731 $110,238 $37,156 
 
Basic earnings per share:$1.04$0.55$0.26$1.70$0.57
Diluted earnings per share:$0.99$0.51$0.25$1.60$0.55
 
Weighted average number of shares:
Basic65,05564,92463,95764,85965,161
Diluted68,86669,20766,98968,94668,099
 
See notes to Consolidated Condensed Statement of Operations
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 EndedNine Months Ended
Dec. 29,Sep. 29,Dec. 31,Dec. 29,Dec. 31,
20122012201120122011
Net Income ReconciliationQ3'13Q2'13Q3'12Q3'13Q3'12
GAAP Net Income$67,862$35,449$16,731$110,238$37,156
Amortization of acquisition intangibles-2513536041,059
Stock based compensation expense6,0265,5632,76915,7628,728
Restructuring and other costs, net **3,245--3,245622
Provision for income taxes 35,667  13,580  8,992  52,602  20,139 
Non-GAAP Net Income$112,800 $54,843 $28,845 $182,451 $67,704 
 
Earnings Per Share Reconciliation *
GAAP Diluted earnings per share$0.99$0.51$0.25$1.60$0.55
Effect of Amortization of acquisition intangibles--0.010.010.02
Effect of Stock based compensation expense0.090.080.040.230.13
Effect of Restructuring and other costs, net **0.05--0.05-
Effect of Provision for income taxes 0.51  0.20  0.13  0.76  0.29 
Non-GAAP Diluted earnings per share$1.64 $0.79 $0.43 $2.65 $0.99 
 
Operating Income Reconciliation
GAAP Operating Income$106,129$50,425$26,399$167,025$58,648
GAAP Operating Margin34%26%22%28%19%
Amortization of acquisition intangibles-2513536041,059
Stock compensation expense - COGS21811992 Read Full Story

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