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

AUSTIN, Texas--(BUSINESS WIRE)--July 25, 2013--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 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.”

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

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 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.

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.

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 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, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)

	Three Months Ended
	Jun. 29,			Mar. 30,		Jun. 30,
	2013			2013		2012
	Q1'14			Q4'13		Q1'13
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 Profit		79,498			83,614		53,440

Research and development		28,530			30,085		24,910
Selling, general and administrative		19,198			19,724		18,059
Other expenses, net *		265			-		-
Total operating expenses		47,993			49,809		42,969

Operating income		31,505			33,805		10,471

Interest income, net		158			106		127
Other income (expense), net		(17	)		14		(23	)
Income before income taxes		31,646			33,925		10,575
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:
Basic		63,363			63,877		64,470
Diluted		66,188			67,138		68,529

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.

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,
	2013			2013			2012
Net Income Reconciliation	Q1'14			Q4'13			Q1'13
GAAP Net Income	$	20,642		$	26,360		$	6,927
Amortization of acquisition intangibles		-			-			353
Stock based compensation expense		5,774			5,734			4,173
International sales reorganization charges		-			442			-
Restructuring and other costs		(430	)		-			-
Patent settlements, net		695			-			-
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 expense		0.09			0.09			0.06
Effect of International sales reorganization charges		-			0.01			-
Effect of Patent settlements, net		0.01			-			-
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 Profit		20	%		16	%		11	%
Amortization of acquisition intangibles		-			-			353
Stock compensation expense - COGS		6			296			118
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 costs		(430	)		-			-
Patent settlements, net		695			-			-
Non-GAAP Operating Income	$	37,544		$	39,981		$	14,997
Non-GAAP Operating Profit		24	%		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 costs		430			-			-
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,
	2013			2013			2012
	(unaudited)						(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	67,170		$	66,402		$	84,312
Restricted investments		-			-			-
Marketable securities		165,540			105,235			82,359
Accounts receivable, net		63,642			69,289			49,262
Inventories		110,624			119,300			96,790
Deferred tax asset		54,774			64,937			53,139
Other current assets		20,810			19,371			14,574
Total Current Assets		482,560			444,534			380,436

Long-term marketable securities		39,408			64,910			-
Property and equipment, net		99,169			100,623			85,337
Intangibles, net		4,714			4,650			18,457
Goodwill		6,027			6,027			6,027
Deferred tax asset		16,732			16,671			85,721
Other assets		11,289			13,932			9,300
Total Assets	$	659,899		$	651,347		$	585,278

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	47,341		$	60,827		$	75,507
Accrued salaries and benefits		13,476			16,592			10,956
Other accrued liabilities		9,532			10,704			9,498
Deferred income on shipments to distributors		4,419			4,956			7,158
Total Current Liabilities		74,768			93,079			103,119

Other long-term obligations		9,706			10,094			4,159

Stockholders' equity:
Capital stock		1,048,497			1,041,834			1,013,442
Accumulated deficit		(472,180	)		(492,741	)		(534,682	)
Accumulated other comprehensive loss		(892	)		(919	)		(760	)
Total Stockholders' Equity		575,425			548,174			478,000
Total Liabilities and Stockholders' Equity	$	659,899		$	651,347		$	585,278

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