CIRRUS LOGIC, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 26, 2012

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Exhibit 99.1

Cirrus Logic Reports $122.4 Million in Revenue and $0.43 Non-GAAP Diluted EPS ($0.25 GAAP) in Q3 FY12

Forecasts Q4 Year-Over-Year Revenue Growth in Excess of 18 Percent

AUSTIN, Texas--(BUSINESS WIRE)--January 26, 2012--Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing components, today posted its third quarter, fiscal year 2012 financial results and business outlook on its investor relations website at http://investor.cirrus.com.

Reported Financial Results

  • Revenue of $122.4 million
  • Gross margin of 54 percent
  • GAAP operating expenses of $39.6 million
  • Non-GAAP operating expenses of $36.6 million

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

“Q3 was an outstanding quarter for Cirrus Logic as we recorded revenue growth of 28 percent year-over-year, exceeding our initial expectations,” said Jason Rhode, president and chief executive officer, Cirrus Logic. “Our continuing growth in revenues and gross profit and the operating cash flow generated during fiscal 2012 have enabled us to continue to make the substantial and increasing investments in research and development that are so critically important to our product development efforts. With several new products expected to hit the market in Q4 and a number of new devices being readied for production in the upcoming quarters, we are excited about the extraordinary opportunities coming this year.”

Outlook for Fourth Quarter FY 2012 (ending March 31, 2012):

  • Revenue is expected to range between $108 million and $112 million;
  • Gross margin is expected to be between 54 percent and 56 percent; and
  • Combined R&D and SG&A expenses are expected to range between $39 million and $41 million, which includes approximately $3 million in share-based compensation and amortization of acquisition-related intangibles expenses.

Cirrus Logic will host a live Q&A session at 6:00 p.m. ET on Thursday, Jan. 26, 2012, to answer questions related to its financial results and business outlook. Shareholders who would like to submit a question to be addressed during the call are requested to email investor.relations@cirrus.com.

A live webcast of the Q&A session can be accessed on the Cirrus Logic website, and a replay will be available approximately one hour following its completion, or by calling (303) 590-3030, or toll-free at (800) 406-7325 (Access Code: 4503802).

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 Tucson, 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 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. 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.

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 2012 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense, and amortization of acquired intangible expenses. 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 of fiscal year 2012, 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 26, 2011, 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 and Cirrus are trademarks of Cirrus Logic Inc.

CRUS-F

 
 
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
             
Three Months Ended Nine Months Ended
 
Dec. 31, Sep. 24, Dec. 25, Dec. 31, Dec. 25,
  2011     2011     2010     2011     2010  
Q3'12 Q2'12 Q3'11 Q3'12 Q3'11
Audio products $ 105,418 $ 83,683 $ 72,716 $ 260,220 $ 197,875
Energy products   16,950     17,919     22,909     55,992     80,263  
Net revenue   122,368     101,602     95,625     316,212     278,138  
Cost of sales   56,338     47,247     43,163     148,118     122,161  
Gross Profit 66,030 54,355 52,462 168,094 155,977
 
Research and development 23,143 19,682 16,348 61,592 46,890
Selling, general and administrative 16,488 16,760 13,431 47,854 42,814
Restructuring and other costs - - (395 ) - 6
Impairment of non-marketable securities - - - - 500
Provision for litigation expenses - - (30 ) - 105
Patent agreement, net   -     -     -     -     (4,000 )
Total operating expenses   39,631     36,442     29,354     109,446     86,315  
 
Operating income 26,399 17,913 23,108 58,648 69,662
Operating income (loss) as a percent of revenue 21.6 % 17.6 % 24.2 % 18.5 % 25.0 %
 
Interest income, net 112 112 212 378 673
Other income (expense), net   (71 )   (27 )   (31 )   (115 )   (13 )
Income before income taxes 26,440 17,998 23,289 58,911 70,322
Provision (benefit) for income taxes   9,709     6,751     (1,332 )   21,755     (2,775 )
Net income $ 16,731   $ 11,247   $ 24,621   $ 37,156   $ 73,097  
 
Basic income per share: $ 0.26 $ 0.17 $ 0.36 $ 0.57 $ 1.08
Diluted income per share: $ 0.25 $ 0.17 $ 0.34 $ 0.55 $ 1.02
 
Weighted average number of shares:
Basic 63,957 64,426 68,074 65,161 67,731
Diluted 66,989 67,265 71,695 68,099 71,868
 
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. 31, Sep. 24, Dec. 25, Dec. 31, Dec. 25,
  2011     2011     2010     2011     2010  
Net Income Reconciliation Q3'12 Q2'12 Q3'11 Q3'12 Q3'11
GAAP Net Income $ 16,731 $ 11,247 $ 24,621 $ 37,156 $ 73,097
Amortization of acquisition intangibles 353 353 353 1,059 1,076
Stock based compensation expense 2,769 3,517 1,467 8,728 5,848
Facility Related adjustments - - - - (96 )
International sales reorganization charges - 622 - 622 790
Provision for litigation expenses and settlements - - (30 ) - 105
Restructuring and other costs, net - - (395 ) - 6
Charge from non-marketable securities - - - - 500
Patent purchase agreement, net - - - - (4,000 )
Provision (benefit) for income taxes   8,992     6,163     (1,847 )   20,139     (4,076 )
Non-GAAP Net Income $ 28,845   $ 21,902   $ 24,169   $ 67,704   $ 73,250  
 
Earnings Per Share Reconciliation
GAAP Diluted income per share $ 0.25 $ 0.17 $ 0.34 $ 0.55 $ 1.02
Effect of Amortization of acquisition intangibles 0.01 0.01 - 0.02 0.02
Effect of Stock based compensation expense 0.04 0.05 0.02 0.12 0.08
Effect of Facility Related adjustments - - - - -
Effect of International sales reorganization charges - 0.01 - 0.01 0.01
Effect of Provision for litigation expenses and settlements - - - - -
Effect of Restructuring and other costs, net - - - - -
Effect of Charge from non-marketable securities - - - - 0.01
Effect of Patent purchase agreement, net - - - - (0.06 )
Effect of Provision (benefit) for income taxes 0.13 0.09 (0.02 ) 0.29 (0.06 )
         
Non-GAAP Diluted income per share $ 0.43   $ 0.33   $ 0.34   $ 0.99   $ 1.02  
 
Operating Income Reconciliation
GAAP Operating Income $ 26,399 $ 17,913 $ 23,108 $ 58,648 $ 69,662
GAAP Operating Margin 22 % 18 % 24 % 19 % 25 %
Amortization of acquisition intangibles 353 353 353 1,059 1,076
Stock compensation expense - COGS 92 104 46 285 165
Stock compensation expense - R&D 1,613 1,181 579 3,837 1,717
Stock compensation expense - SG&A 1,064 2,232 842 4,606 3,966
Facility Related adjustments - - - - (96 )
International sales reorganization charges - 622 - 622 790
Provision for litigation expenses and settlements - - (30 ) - 105
Restructuring and other costs, net - - (395 ) - 6
Charge from non-marketable securities - - - - 500
Patent purchase agreement, net   -     -     -     -     (4,000 )
Non-GAAP Operating Income $ 29,521   $ 22,405   $ 24,503   $ 69,057   $ 73,891  
Non-GAAP Operating Margin 24 % 22 % 26 % 22 % 27 %
 
Operating Expense Reconciliation
GAAP Operating Expenses $ 39,631 $ 36,442 $ 29,354 $ 109,446 $ 86,315
Amortization of acquisition intangibles (353 ) (353 ) (353 ) (1,059 ) (1,076 )
Stock compensation expense - R&D (1,613 ) (1,181 ) (579 ) (3,837 ) (1,717 )
Stock compensation expense - SG&A (1,064 ) (2,232 ) (842 ) (4,606 ) (3,966 )
Facility Related adjustments - - - - 96
International sales reorganization charges - (622 ) - (622 ) (790 )
Provision for litigation expenses and settlements - - 30 - (105 )
Restructuring and other costs, net - - 395 - (6 )
Charge from non-marketable securities - - - - (500 )
Patent purchase agreement, net   -     -     -     -     4,000  
Non-GAAP Operating Expenses $ 36,601   $ 32,054   $ 28,005   $ 99,322   $ 82,251  
 
 
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands
 
    Dec. 31,   Sep. 24,   Dec. 25,
  2011     2011     2010  
ASSETS
Current assets
Cash and cash equivalents $ 38,010 $ 39,268 $ 28,491
Restricted investments 2,898 2,898 5,755
Marketable securities 99,342 100,130 156,052
Accounts receivable, net 54,512 44,898 37,266
Inventories 58,079 49,552 40,196
Other current assets   46,914     41,668     22,612  
Total Current Assets 299,755 278,414 290,372
 
Long-term marketable securities 20,092 8,703 -
Property and equipment, net 57,263 50,102 32,919
Intangibles, net 18,596 18,905 20,688
Goodwill 6,027 6,027 6,027
Deferred tax asset 82,071 90,995 360
Other assets   10,813     7,517     1,618  

Total Assets

$ 494,617   $ 460,663   $ 351,984  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 45,104 $ 35,256 $ 25,371
Accrued salaries and benefits 11,539 10,942 9,509
Other accrued liabilities 14,259 10,105 5,034
Deferred income on shipments to distributors   8,511     9,334     7,108  
Total Current Liabilities 79,413 65,637 47,022
 
Long-term restructuring accrual - - 179
Other long-term obligations 6,494 6,505 6,113
 
Stockholders' equity:
Capital stock 1,001,967 998,572 982,610
Accumulated deficit (592,436 ) (609,167 ) (683,220 )
Accumulated other comprehensive loss   (821 )   (884 )   (720 )
Total Stockholders' Equity   408,710     388,521     298,670  
Total Liabilities and Stockholders' Equity $ 494,617   $ 460,663   $ 351,984  
 
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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