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

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 Ended

Nine Months Ended

Dec. 29,

Sep. 29,

Dec. 31,

Dec. 29,

Dec. 31,

2012

2012

2011

2012

2011

Q3'13

Q2'13

Q3'12

Q3'13

Q3'12

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 Profit

158,050

100,087

66,030

311,577

168,094

Research and development

29,608

29,468

23,143

83,986

61,592

Selling, general and administrative

19,021

20,194

16,488

57,274

47,854

Restructuring and other costs

3,292

-

-

3,292

-

Total operating expenses

51,921

49,662

39,631

144,552

109,446

Operating income

106,129

50,425

26,399

167,025

58,648

Interest income, net

76

131

112

334

378

Other expense, net

(31

)

(40

)

(71

)

(94

)

(115

)

Income before income taxes

106,174

50,516

26,440

167,265

58,911

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:

Basic

65,055

64,924

63,957

64,859

65,161

Diluted

68,866

69,207

66,989

68,946

68,099

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 Ended

Nine Months Ended

Dec. 29,

Sep. 29,

Dec. 31,

Dec. 29,

Dec. 31,

2012

2012

2011

2012

2011

Net Income Reconciliation

Q3'13

Q2'13

Q3'12

Q3'13

Q3'12

GAAP Net Income

$

67,862

$

35,449

$

16,731

$

110,238

$

37,156

Amortization of acquisition intangibles

-

251

353

604

1,059

Stock based compensation expense

6,026

5,563

2,769

15,762

8,728

Restructuring and other costs, net **

3,245

-

-

3,245

622

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

-

-

0.01

0.01

0.02

Effect of Stock based compensation expense

0.09

0.08

0.04

0.23

0.13

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 Margin

34

%

26

%

22

%

28

%

19

%

Amortization of acquisition intangibles

-

251

353

604

1,059

Stock compensation expense - COGS

218

119

92