Cirrus Logic Reports June Quarter Revenue Up 57 Percent Year Over Year to $155 Million

Cirrus Logic Reports June Quarter Revenue Up 57 Percent Year Over Year to $155 Million

Operating Profit Increases Year Over Year and Sequentially

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 first quarter fiscal year 2014, which ended June 29, as well as the company's current business outlook.


"We are pleased to have delivered strong operating profit growth year over year and sequentially," said Jason Rhode, president and chief executive officer. "During the quarter, we added new customers in portable audio and expanded into more SKUs in LED lighting. We are especially excited about the lineup of custom and general market products we currently have in development."

Reported Financial Results - First Quarter FY14

  • Revenue of $155 million;
  • Gross margin of 51.2 percent;
  • GAAP operating expenses of $48 million and non-GAAP operating expenses of $42 million; and
  • GAAP diluted earnings per share of $0.31 and non-GAAP diluted earnings per share of $0.56.

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

Business Outlook - Second Quarter FY14

  • Revenue is expected to range between $170 million and $190 million;
  • Gross margin is expected to be between 46 percent and 48 percent; and
  • Combined R&D and SG&A expenses are expected to range between $49 million and $53 million, which includes approximately $7 million in share-based compensation.

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: 99347958).

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 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 second quarter fiscal year 2014 revenue, gross margin, combined research and development and selling, general and administrative expense levels, and share-based compensation expense. 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 second 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 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.

 
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
     
Three Months Ended
Jun. 29,Mar. 30,Jun. 30,
201320132012
Q1'14Q4'13Q1'13
Audio products$143,666$196,098$80,747
Energy products 11,459  10,775 18,259 
Net revenue 155,125  206,873 99,006 
Cost of sales 75,627  123,259 45,566 
Gross Profit79,49883,61453,440
 
Research and development28,53030,08524,910
Selling, general and administrative19,19819,72418,059
Other expenses, net * 265  - - 
Total operating expenses 47,993  49,809 42,969 
 
Operating income31,50533,80510,471
 
Interest income, net158106127
Other income (expense), net (17) 14 (23)
Income before income taxes31,64633,92510,575
Provision (benefit) for income taxes 11,004  7,565 3,648 
Net income$20,642 $26,360$6,927 
 
Basic earnings per share:$0.33$0.41$0.11
Diluted earnings per share:$0.31$0.39$0.10
 
Weighted average number of shares:
Basic63,36363,87764,470
Diluted66,18867,13868,529
 

Prepared in accordance with Generally Accepted Accounting Principles

 

* Other expenses, net may contain certain items such as litigation expenses, proceeds from a patent agreement, restructuring items, sales reorganizations, asset gains and impairments of non-marketable securities.

 
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
Jun. 29,  Mar. 30,Jun. 30,
201320132012
Net Income ReconciliationQ1'14Q4'13Q1'13
GAAP Net Income$20,642$26,360$6,927
Amortization of acquisition intangibles--353
Stock based compensation expense5,7745,7344,173
International sales reorganization charges-442-
Restructuring and other costs(430)--
Patent settlements, net695--
Provision (benefit) for income taxes 10,161  7,372  3,355 
Non-GAAP Net Income$36,842 $39,908 $14,808 
 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$0.31$0.39$0.10
Effect of Amortization of acquisition intangibles--0.01
Effect of Stock based compensation expense0.090.090.06
Effect of International sales reorganization charges-0.01-
Effect of Patent settlements, net0.01--
Effect of Provision (benefit) for income taxes 0.15  0.10  0.05 
Non-GAAP Diluted earnings per share$0.56 $0.59 $0.22 
 
Operating Income Reconciliation
GAAP Operating Income$31,505$33,805$10,471
GAAP Operating Profit20%16%11%
Amortization of acquisition intangibles--353
Stock compensation expense - COGS6296118
Stock compensation expense - R&D2,8542,9762,243
Stock compensation expense - SG&A2,9142,4621,812
International sales reorganization charges-442-
Restructuring and other costs(430)--
Patent settlements, net 695  -  - 
Non-GAAP Operating Income$37,544 $39,981 $14,997 
Non-GAAP Operating Profit24%19%15%
 
Operating Expense Reconciliation
GAAP Operating Expenses$47,993$49,809$42,969
Amortization of acquisition intangibles--(353)
Stock compensation expense - R&D(2,854)(2,976)(2,243)
Stock compensation expense - SG&A(2,914)(2,462)(1,812)
International sales reorganization charges-(442)-
Restructuring and other costs430--
Patent settlements, net (695) -  - 
Non-GAAP Operating Expenses$41,960 $43,929 $38,561 
 

 
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands)
 
 Jun. 29,  Mar. 30,  Jun. 30,
201320132012
(unaudited)(unaudited)
ASSETS
Current assets
Cash and cash equivalents$67,170$66,402$84,312
Restricted investments---
Marketable securities165,540105,23582,359
Accounts receivable, net63,64269,28949,262
Inventories110,624119,30096,790
Deferred tax asset54,77464,93753,139
Other current assets 20,810  19,371  14,574 
Total Current Assets482,560444,534380,436
 
Long-term marketable securities Read Full Story

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