Exhibit 99.1
 
Cirrus Logic Reports Fiscal Second Quarter Revenue of $101.6M
 
Letter to the Shareholders Available on Company Website
 
AUSTIN, Texas--(BUSINESS WIRE)--October 19, 2011--Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing components, today posted its second quarter, fiscal year 2012 financial results and business outlook on its investor relations website at http://investor.cirrus.com.
 
Cirrus Logic will host a live Q&A session at 6:00 p.m. EDT on Wednesday, Oct. 19, 2011, 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: 4478182).
 
Reported Financial Results
 
 
·
Revenue of $101.6 million
 
 
·
Gross margin of 53.5 percent
 
 
·
GAAP operating expenses were $36.4 million
 
 
·
Non-GAAP operating expenses of $32.1 million
 
A reconciliation of the non-GAAP charges is included in the tables accompanying this press release.
 
“We're very pleased with the culture we've developed, the strategy we're pursuing, the talent and passion of our employees, and the relationships we have with some of the best companies in the world,” said Jason Rhode, president and chief executive officer, Cirrus Logic. “While we are seeing softness in some areas of our business due to issues in the global economy, we still expect significant year over year revenue growth in Q3, and we are well positioned to capitalize on some extraordinary growth opportunities that we believe will enable Cirrus Logic to be a great company for many years.”
 
Outlook for Third Quarter FY 2012 (ending December 31, 2011):
 
 
·
Revenue is expected to range between $102 million and $108 million;
 
 
·
Gross margin is expected to be between 53 percent and 55 percent; and
 
 
·
Combined R&D and SG&A expenses are expected to range between $37 million and $39 million, which includes approximately $3 million in share-based compensation and amortization of acquisition-related intangibles expenses.
 
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 third 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 third 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
  
Six Months Ended
                     
   
Sep. 24,
  
Jun. 25,
  
Sep. 25,
  
Sep. 24,
  
Sep. 25,
     
2011
      
2011
      
2010
      
2011
      
2010
  
   
Q2'12
  
Q1'12
  
Q2'11
  
Q2'12
  
Q2'11
Audio products
  
$
83,683
    
$
71,119
    
$
71,171
    
$
154,802
    
$
125,159
  
Energy products
    
17,919
      
21,123
      
29,427
      
39,042
      
57,354
  
Net revenue
    
101,602
      
92,242
      
100,598
      
193,844
      
182,513
  
Cost of sales
    
47,247
      
44,533
      
43,818
      
91,780
      
78,998
  
Gross Profit
    
54,355
      
47,709
      
56,780
      
102,064
      
103,515
  
                     
Research and development
    
19,682
      
18,767
      
15,450
      
38,449
      
30,542
  
Selling, general and administrative
    
16,760
      
14,606
      
15,372
      
31,366
      
29,383
  
Restructuring and other costs
    
-
      
-
      
401
      
-
      
401
  
Impairment of non-marketable securities
    
-
      
-
      
500
      
-
      
500
  
Provision for litigation expenses
    
-
      
-
      
-
      
-
      
135
  
Patent agreement, net
    
-
      
-
      
(4,000
)
    
-
      
(4,000
)
Total operating expenses
    
36,442
      
33,373
      
27,723
      
69,815
      
56,961
  
                     
Operating income
    
17,913
      
14,336
      
29,057
      
32,249
      
46,554
  
                     
Interest income, net
    
112
      
154
      
233
      
266
      
461
  
Other income (expense), net
    
(27
)
    
(17
)
    
(14
)
    
(44
)
    
18
  
Income before income taxes
    
17,998
      
14,473
      
29,276
      
32,471
      
47,033
  
Provision (benefit) for income taxes
    
6,751
      
5,295
      
(1,598
)
    
12,046
      
(1,443
)
Net income
  
$
11,247
    
$
9,178
    
$
30,874
    
$
20,425
    
$
48,476
  
                     
Basic income per share:
  
$
0.17
    
$
0.14
    
$
0.45
    
$
0.31
    
$
0.72
  
Diluted income per share:
  
$
0.17
    
$
0.13
    
$
0.42
    
$
0.30
    
$
0.67
  
                     
Weighted average number of shares:
                    
Basic
    
64,426
      
67,099
      
68,513
      
65,763
      
67,576
  
Diluted
    
67,265
      
70,445
      
72,878
      
68,657
      
71,971
  
                     
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
  
Six Months Ended
                     
   
Sep. 24,
  
Jun. 25,
  
Sep. 25,
  
Sep. 24,
  
Sep. 25,
     
2011
      
2011
      
2010
      
2011
      
2010
  
Net Income Reconciliation
  
Q2'12
  
Q1'12
  
Q2'11
  
Q2'12
  
Q2'11
GAAP Net Income
  
$
11,247
    
$
9,178
    
$
30,874
    
$
20,425
    
$
48,476
  
Amortization of acquisition intangibles
    
353
      
353
      
353
      
706
      
723
  
Stock based compensation expense
    
3,517
      
2,442
      
3,025
      
5,959
      
4,381
  
Facility Related adjustments
    
-
      
-
      
(100
)
    
-
      
(96
)
International sales reorganization charges
    
622
      
-
      
-
      
622
      
790
  
Provision for litigation expenses and settlements
    
-
      
-
      
-
      
-
      
135
  
Restructuring and other costs, net
    
-
      
-
      
401
      
-
      
401
  
Charge from non-marketable securities
    
-
      
-
      
500
      
-
      
500
  
Patent purchase agreement, net
    
-
      
-
      
(4,000
)
    
-
      
(4,000
)
Provision (benefit) for income taxes
    
6,163
      
4,984
      
(2,229
)
    
11,147
      
(2,229
)
Non-GAAP Net Income
  
$
21,902
    
$
16,957
    
$
28,824
    
$
38,859
    
$
49,081
  
                     
Earnings Per Share Reconciliation
                    
GAAP Diluted income per share
  
$
0.17
    
$
0.13
    
$
0.42
    
$
0.30
    
$
0.67
  
Effect of Amortization of acquisition intangibles
    
0.01
      
0.01
      
-
      
0.01
      
0.01
  
Effect of Stock based compensation expense
    
0.05
      
0.03
      
0.04
      
0.09
      
0.06
  
Effect of International sales reorganization charges
    
0.01
      
-
      
-
      
0.01
      
0.01
  
Effect of Restructuring and other costs, net
    
-
      
-
      
0.01
      
-
      
0.01
  
Effect of Charge from non-marketable securities
    
-
      
-
      
0.01
      
-
      
0.01
  
Effect of Patent purchase agreement, net
    
-
      
-
      
(0.05
)
    
-
      
(0.06
)
Effect of Provision (benefit) for income taxes
    
0.09
      
0.07
      
(0.03
)
    
0.16
      
(0.03
)
                     
Non-GAAP Diluted income per share
  
$
0.33
    
$
0.24
    
$
0.40
    
$
0.57
    
$
0.68
  
                     
Operating Income Reconciliation
                    
GAAP Operating Income
  
$
17,913
    
$
14,336
    
$
29,057
    
$
32,249
    
$
46,554
  
GAAP Operating Margin
    
18
%
    
16
%
    
29
%
    
17
%
    
26
%
Amortization of acquisition intangibles
    
353
      
353
      
353
      
706
      
723
  
Stock compensation expense - COGS
    
104
      
89
      
64
      
193
      
119
  
Stock compensation expense - R&D
    
1,181
      
1,043
      
617
      
2,224
      
1,138
  
Stock compensation expense - SG&A
    
2,232
      
1,310
      
2,344
      
3,542
      
3,124
  
Facility Related adjustments
    
-
      
-
      
(100
)
    
-
      
(96
)
International sales reorganization charges
    
622
      
-
      
-
      
622
      
790
  
Provision for litigation expenses and settlements
    
-
      
-
      
-
      
-
      
135
  
Restructuring and other costs, net
    
-
      
-
      
401
      
-
      
401
  
Charge from non-marketable securities
    
-
      
-
      
500
      
-
      
500
  
Patent purchase agreement, net
    
-
      
-
      
(4,000
)
    
-
      
(4,000
)
Non-GAAP Operating Income
  
$
22,405
    
$
17,131
    
$
29,236
    
$
39,536
    
$
49,388
  
Non-GAAP Operating Margin
    
22
%
    
19
%
    
29
%
    
20
%
    
27
%
                     
Operating Expense Reconciliation
                    
GAAP Operating Expenses
  
$
36,442
    
$
33,373
    
$
27,723
    
$
69,815
    
$
56,961
  
Amortization of acquisition intangibles
    
(353
)
    
(353
)
    
(353
)
    
(706
)
    
(723
)
Stock compensation expense - R&D
    
(1,181
)
    
(1,043
)
    
(617
)
    
(2,224
)
    
(1,138
)
Stock compensation expense - SG&A
    
(2,232
)
    
(1,310
)
    
(2,344
)
    
(3,542
)
    
(3,124
)
Facility Related adjustments
    
-
      
-
      
100
      
-
      
96
  
International sales reorganization charges
    
(622
)
    
-
      
-
      
(622
)
    
(790
)
Provision for litigation expenses and settlements
    
-
      
-
      
-
      
-
      
(135
)
Restructuring and other costs, net
    
-
      
-
      
(401
)
    
-
      
(401
)
Charge from non-marketable securities
    
-
      
-
      
(500
)
    
-
      
(500
)
Patent purchase agreement, net
    
-
      
-
      
4,000
      
-
      
4,000
  
Non-GAAP Operating Expenses
  
$
32,054
    
$
30,667
    
$
27,608
    
$
62,721
    
$
54,246
  
 
 
 
 
 
 
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited
(in thousands)
                     
           
Sep. 24,
  
Jun. 25,
  
Sep. 25,
             
2011
      
2011
      
2010
  
ASSETS
                  
Current assets
                
 
Cash and cash equivalents
  
$
39,268
    
$
41,490
    
$
19,837
  
 
Restricted investments
        
2,898
      
5,755
      
5,755
  
 
Marketable securities
        
100,130
      
107,016
      
153,797
  
 
Accounts receivable, net
      
44,898
      
41,967
      
48,451
  
 
Inventories
        
49,552
      
46,851
      
41,963
  
 
Other current assets
        
41,668
      
38,842
      
21,094
  
 
Total Current Assets
      
278,414
      
281,921
      
290,897
  
                     
Long-term marketable securities
    
8,703
      
1,334
      
3,000
  
Property and equipment, net
    
50,102
      
42,465
      
32,471
  
Intangibles, net
        
18,905
      
19,505
      
21,042
  
Goodwill
          
6,027
      
6,027
      
6,027
  
Deferred tax asset
        
90,995
      
97,152
      
356
  
Other assets
        
7,517
      
8,566
      
1,503
  
 
Total Assets
      
$
460,663
    
$
456,970
    
$
355,296
  
                     
LIABILITIES AND STOCKHOLDERS' EQUITY
            
Current liabilities
                
 
Accounts payable
      
$
35,256
    
$
31,063
    
$
29,070
  
 
Accrued salaries and benefits
    
10,942
      
8,120
      
12,754
  
 
Other accrued liabilities
      
10,105
      
7,505
      
6,330
  
 
Deferred income on shipments to distributors
    
9,334
      
9,745
      
7,749
  
 
Total Current Liabilities
    
65,637
      
56,433
      
55,903
  
                     
Long-term restructuring accrual
    
-
      
45
      
395
  
Other long-term obligations
      
6,505
      
6,621
      
6,143
  
                     
Stockholders' equity:
                
 
Capital stock
        
998,572
      
994,746
      
978,554
  
 
Accumulated deficit
        
(609,167
)
    
(600,126
)
    
(685,077
)
 
Accumulated other comprehensive loss
    
(884
)
    
(749
)
    
(622
)
 
Total Stockholders' Equity
    
388,521
      
393,871
      
292,855
  
 
Total Liabilities and Stockholders' Equity
  
$
460,663
    
$
456,970
    
$
355,296
  
 
                       
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