EX-99.1 2 a50357636ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Cirrus Logic Guides September Quarter Revenue Up More than 70 Percent Sequentially

Reports Fiscal Q1 Non-GAAP EPS of $0.22 ($0.10 GAAP) on revenue of $99 million

AUSTIN, Texas--(BUSINESS WIRE)--July 30, 2012--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, which ended June 30, 2012, as well as the company’s current business outlook.

“I would like to take this opportunity to publicly thank all of the Cirrus Logic employees who have worked incredibly hard over the past several years to position the company for this sharp transition to a higher level of revenue," said Jason Rhode, president and chief executive officer. "This team's ability to formulate and execute a strategy is truly remarkable and gives us great confidence as we continue to increase our R&D investment in order to support our customers and pursue further growth opportunities. We expect FY13 to be an outstanding year for Cirrus Logic and our long term shareholders.”

Reported Financial Results – First Quarter FY2013

- Revenue of $99 million;
- Gross margin of 54 percent;
- GAAP operating expenses of $43 million;
- Non-GAAP operating expenses of $38.6 million.

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

Business Outlook – Second Quarter FY2013

- Revenue is expected to range between $170 million and $190 million;
- Gross margin is expected to be between 52 percent and 54 percent;
- Combined R&D and SG&A expenses are expected to range between $49 million and $53 million, which includes approximately $6 million in share-based compensation and amortization of acquisition-related intangibles expenses.

In addition, the company is announcing the sale of assets associated with its Apex Precision Power business in Tucson, Ariz., for $26 million. After the sale, Cirrus Logic will continue to maintain a high voltage/high power IC design team in Tucson. This transaction is expected to close within 45 days, subject to certain standard closing conditions. More information is included in our quarterly Shareholder Letter.

Cirrus Logic will host a live Q&A session at 5 p.m. EDT on Monday, July 30, 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 two hours after the completion of the call, or by dialing (719) 457-0820, or toll-free at (888) 203-1112 (Access Code: 98762608).

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. 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 2013 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense, amortization of acquired intangible expenses, and inventory increases. 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 and third 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 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

Summary financial data follows:

CIRRUS LOGIC, INC. |
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS |
(unaudited) |
(in thousands, except per share data) |
|  |  |  |  | Three Months Ended |
|  |  |  |  | Jun. 30, |  |  | Mar. 31, |  |  | Jun. 25, |
|  |  |  |  | 2012 |  |  | 2012 |  |  | 2011 |
|  |  |  |  | Q1'13 |  |  | Q4'12 |  |  | Q1'12 |
Audio products |  |  |  |  | $ | 80,747 |  |  |  | $ | 90,522 |  |  |  | $ | 71,120 |  |
Energy products |  |  |  |  |  | 18,259 |  |  |  |  | 20,109 |  |  |  |  | 21,122 |  |
Net revenue |  |  |  |  |  | 99,006 |  |  |  |  | 110,631 |  |  |  |  | 92,242 |  |
Cost of sales |  |  |  |  |  | 45,566 |  |  |  |  | 48,284 |  |  |  |  | 44,533 |  |
Gross Profit |  |  |  |  |  | 53,440 |  |  |  |  | 62,347 |  |  |  |  | 47,709 |  |
Research and development |  |  |  |  |  | 24,910 |  |  |  |  | 24,105 |  |  |  |  | 18,767 |  |
Selling, general and administrative |  |  |  |  |  | 18,059 |  |  |  |  | 17,254 |  |  |  |  | 14,606 |  |
Other expenses (proceeds) |  |  |  |  |  | - |  |  |  |  | 100 |  |  |  |  | - |  |
Total operating expenses |  |  |  |  |  | 42,969 |  |  |  |  | 41,459 |  |  |  |  | 33,373 |  |
Operating income |  |  |  |  |  | 10,471 |  |  |  |  | 20,888 |  |  |  |  | 14,336 |  |
Interest income, net |  |  |  |  |  | 127 |  |  |  |  | 139 |  |  |  |  | 154 |  |
Other income (expense), net |  |  |  |  |  | (23 | ) |  |  |  | 45 |  |  |  |  | (17 | ) |
Income before income taxes |  |  |  |  |  | 10,575 |  |  |  |  | 21,072 |  |  |  |  | 14,473 |  |
Provision (benefit) for income taxes |  |  |  |  |  | 3,648 |  |  |  |  | (29,755 | ) |  |  |  | 5,295 |  |
Net income |  |  |  |  | $ | 6,927 |  |  |  | $ | 50,827 |  |  |  | $ | 9,178 |  |
Basic income per share: |  |  |  |  | $ | 0.11 |  |  |  | $ | 0.79 |  |  |  | $ | 0.14 |  |
Diluted income per share: |  |  |  |  | $ | 0.10 |  |  |  | $ | 0.75 |  |  |  | $ | 0.13 |  |
Weighted average number of shares: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  |  |  |  | 64,470 |  |  |  |  | 64,213 |  |  |  |  | 67,099 |  |
Diluted |  |  |  |  |  | 68,529 |  |  |  |  | 67,913 |  |  |  |  | 70,445 |  |
See notes to Consolidated Condensed Statement of Operations |
Prepared in accordance with Generally Accepted Accounting Principles |

CIRRUS LOGIC, INC. |
CONSOLIDATED CONDENSED BALANCE SHEET |
(in thousands) |
|  |  |  |  |  | Jun. 30, |  |  |  | Mar. 31, |
|  |  |  |  |  | 2012 |  |  |  | 2012 |
|  |  |  |  |  | (unaudited) |  |  |  |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  | $ | 84,312 |  |  |  |  | $ | 65,997 |  |
Restricted investments |  |  |  |  |  |  | - |  |  |  |  |  | - |  |
Marketable securities |  |  |  |  |  |  | 82,359 |  |  |  |  |  | 115,877 |  |
Accounts receivable, net |  |  |  |  |  |  | 49,262 |  |  |  |  |  | 44,153 |  |
Inventories |  |  |  |  |  |  | 96,790 |  |  |  |  |  | 55,915 |  |
Deferred tax asset |  |  |  |  |  |  | 53,139 |  |  |  |  |  | 53,137 |  |
Other current assets |  |  |  |  |  |  | 14,574 |  |  |  |  |  | 16,508 |  |
Total Current Assets |  |  |  |  |  |  | 380,436 |  |  |  |  |  | 351,587 |  |
Long-term marketable securities |  |  |  |  |  |  | - |  |  |  |  |  | 2,914 |  |
Property and equipment, net |  |  |  |  |  |  | 85,337 |  |  |  |  |  | 66,978 |  |
Intangibles, net |  |  |  |  |  |  | 18,457 |  |  |  |  |  | 18,241 |  |
Goodwill |  |  |  |  |  |  | 6,027 |  |  |  |  |  | 6,027 |  |
Deferred tax asset |  |  |  |  |  |  | 85,721 |  |  |  |  |  | 89,071 |  |
Other assets |  |  |  |  |  |  | 9,300 |  |  |  |  |  | 9,644 |  |
Total Assets |  |  |  |  |  | $ | 585,278 |  |  |  |  | $ | 544,462 |  |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  |  |  |  | $ | 75,507 |  |  |  |  | $ | 38,108 |  |
Accrued salaries and benefits |  |  |  |  |  |  | 10,956 |  |  |  |  |  | 13,634 |  |
Other accrued liabilities |  |  |  |  |  |  | 9,498 |  |  |  |  |  | 14,015 |  |
Deferred income on shipments to distributors |  |  |  |  |  |  | 7,158 |  |  |  |  |  | 7,228 |  |
Total Current Liabilities |  |  |  |  |  |  | 103,119 |  |  |  |  |  | 72,985 |  |
Long-term restructuring accrual |  |  |  |  |  |  | - |  |  |  |  |  | - |  |
Other long-term obligations |  |  |  |  |  |  | 4,159 |  |  |  |  |  | 5,620 |  |
Stockholders' equity: |  |  |  |  |  |  |  |  |  |  |
Capital stock |  |  |  |  |  |  | 1,013,442 |  |  |  |  |  | 1,008,228 |  |
Accumulated deficit |  |  |  |  |  |  | (534,682 | ) |  |  |  |  | (541,609 | ) |
Accumulated other comprehensive loss |  |  |  |  |  |  | (760 | ) |  |  |  |  | (762 | ) |
Total Stockholders' Equity |  |  |  |  |  |  | 478,000 |  |  |  |  |  | 465,857 |  |
Total Liabilities and Stockholders' Equity |  |  |  |  |  | $ | 585,278 |  |  |  |  | $ | 544,462 |  |
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 |
|  |  |  |  |  | Jun. 30, |  |  |  | Mar. 31, |  |  |  | Jun. 25, |
|  |  |  |  |  | 2012 |  |  |  | 2012 |  |  |  | 2011 |
Net Income Reconciliation |  |  |  |  |  | Q1'13 |  |  |  | Q4'12 |  |  |  | Q1'12 |
GAAP Net Income |  |  |  |  |  | $ | 6,927 |  |  |  |  | $ | 50,827 |  |  |  |  | $ | 9,178 |  |
Amortization of acquisition intangibles |  |  |  |  |  |  | 353 |  |  |  |  |  | 353 |  |  |  |  |  | 353 |  |
Stock based compensation expense |  |  |  |  |  |  | 4,173 |  |  |  |  |  | 3,451 |  |  |  |  |  | 2,442 |  |
Other expenses (proceeds) * |  |  |  |  |  |  | - |  |  |  |  |  | 263 |  |  |  |  |  | - |  |
Provision (benefit) for income taxes |  |  |  |  |  |  | 3,355 |  |  |  |  |  | (30,310 | ) |  |  |  |  | 4,984 |  |
Non-GAAP Net Income |  |  |  |  |  | $ | 14,808 |  |  |  |  | $ | 24,584 |  |  |  |  | $ | 16,957 |  |
Earnings Per Share Reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP Diluted income per share |  |  |  |  |  | $ | 0.10 |  |  |  |  | $ | 0.75 |  |  |  |  | $ | 0.13 |  |
Effect of Amortization of acquisition intangibles |  |  |  |  |  |  | 0.01 |  |  |  |  |  | 0.01 |  |  |  |  |  | 0.01 |  |
Effect of Stock based compensation expense |  |  |  |  |  |  | 0.06 |  |  |  |  |  | 0.05 |  |  |  |  |  | 0.03 |  |
Effect of Other expenses (proceeds) * |  |  |  |  |  |  | - |  |  |  |  |  | - |  |  |  |  |  | - |  |
Effect of Provision (benefit) for income taxes |  |  |  |  |  |  | 0.05 |  |  |  |  |  | (0.45 | ) |  |  |  |  | 0.07 |  |
Non-GAAP Diluted income per share |  |  |  |  |  | $ | 0.22 |  |  |  |  | $ | 0.36 |  |  |  |  | $ | 0.24 |  |
Operating Income Reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP Operating Income |  |  |  |  |  | $ | 10,471 |  |  |  |  | $ | 20,888 |  |  |  |  | $ | 14,336 |  |
GAAP Operating Margin |  |  |  |  |  |  | 11 | % |  |  |  |  | 19 | % |  |  |  |  | 16 | % |
Amortization of acquisition intangibles |  |  |  |  |  |  | 353 |  |  |  |  |  | 353 |  |  |  |  |  | 353 |  |
Stock compensation expense - COGS |  |  |  |  |  |  | 118 |  |  |  |  |  | 113 |  |  |  |  |  | 89 |  |
Stock compensation expense - R&D |  |  |  |  |  |  | 2,243 |  |  |  |  |  | 1,753 |  |  |  |  |  | 1,043 |  |
Stock compensation expense - SG&A |  |  |  |  |  |  | 1,812 |  |  |  |  |  | 1,585 |  |  |  |  |  | 1,310 |  |
Other expenses (proceeds) * |  |  |  |  |  |  | - |  |  |  |  |  | 263 |  |  |  |  |  | - |  |
Non-GAAP Operating Income |  |  |  |  |  | $ | 14,997 |  |  |  |  | $ | 24,955 |  |  |  |  | $ | 17,131 |  |
Non-GAAP Operating Margin |  |  |  |  |  |  | 15 | % |  |  |  |  | 23 | % |  |  |  |  | 19 | % |
Operating Expense Reconciliation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GAAP Operating Expenses |  |  |  |  |  | $ | 42,969 |  |  |  |  | $ | 41,459 |  |  |  |  | $ | 33,373 |  |
Amortization of acquisition intangibles |  |  |  |  |  |  | (353 | ) |  |  |  |  | (353 | ) |  |  |  |  | (353 | ) |
Stock compensation expense - R&D |  |  |  |  |  |  | (2,243 | ) |  |  |  |  | (1,753 | ) |  |  |  |  | (1,043 | ) |
Stock compensation expense - SG&A |  |  |  |  |  |  | (1,812 | ) |  |  |  |  | (1,585 | ) |  |  |  |  | (1,310 | ) |
Other expenses (proceeds) * |  |  |  |  |  |  | - |  |  |  |  |  | (263 | ) |  |  |  |  | - |  |
Non-GAAP Operating Expenses |  |  |  |  |  | $ | 38,561 |  |  |  |  | $ | 37,505 |  |  |  |  | $ | 30,667 |  |
* Other expenses (proceeds) may contain certain items such as litigation expenses, proceeds from a patent agreement, restructuring items, and impairments of non-marketable securities. |

CONTACT:
Investors:
Cirrus Logic, Inc.
Thurman K. Case, 512-851-4125
Chief Financial Officer
Investor.Relations@cirrus.com