EX-99.1 2 a51089480ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

Cirrus Logic Reports Q4 Revenue of $255.2 Million and FY15 Revenue of $916.6 Million

Strong Demand for Portable Audio Products Drives Revenue Above Expectations

AUSTIN, Texas--(BUSINESS WIRE)--April 28, 2015--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 fourth quarter and full fiscal year 2015, which ended March 28, 2015, as well as the company’s current business outlook.

“FY15 was a tremendous year for Cirrus Logic. We are extremely pleased to have delivered strong revenue growth, achieved our long-term non-GAAP operating profit target of 20 percent, significantly expanded our product portfolio, and strengthened our business through the acquisition of Wolfson Microelectronics,” said Jason Rhode, president and chief executive officer. “As we move into FY16, we expect revenue to grow year-over-year as shipments of products designed for audio and voice applications in mobile devices accelerate.”

Reported Financial Results – Fourth Quarter FY15

- Revenue of $255.2 million;
- GAAP and non-GAAP gross margin of 46.6 percent;
- GAAP operating expenses of $88.6 million and non-GAAP operating expenses of $73.7 million; and
- GAAP diluted earnings per share of $0.32 and non-GAAP diluted earnings per share of $0.66.

Reported Financial Results – Full Year FY15

- Revenue of $916.6 million;
- GAAP gross margin of 46.5 percent and non-GAAP gross margin of 47.4 percent;
- GAAP operating expenses of $317 million and non-GAAP operating expenses of $253.2 million; and
- GAAP diluted earnings per share of $0.85 and non-GAAP diluted earnings per share of $2.67.

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

Business Outlook – First Quarter FY16

- Revenue is expected to range between $260 million and $280 million;
- GAAP gross margin is expected to be between 45 percent and 47 percent; and
- Combined R&D and SG&A expenses are expected to range between $93 million and $97 million, which includes approximately $8 million in share-based compensation and $7 million in amortization of acquired intangibles.

Cirrus Logic will host a live Q&A session at 5 p.m. EST 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: 21372109).

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, industrial and energy-related applications. The company operates from headquarters in Austin, Texas, with offices in the United States, United Kingdom, Australia, 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 gross margins, operating expenses, net income, operating profit and income, 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 expectations for growth in fiscal year 2016 and our estimates of first quarter fiscal year 2016 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense and amortization of acquired intangibles. 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 first quarter of fiscal year 2016, 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 29, 2014, 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, Cirrus and Wolfson are registered trademarks of Cirrus Logic, Inc. or its subsidiaries. All other company or product names noted herein may be trademarks of their respective holders.

Summary financial data follows:

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
|  | Three Months Ended |  | Twelve Months Ended
|  | Mar. 28, |  | Dec. 27, |  | Mar. 29, |  | Mar. 28, |  | Mar. 29,
|  | 2015 |  | 2014 |  | 2014 |  | 2015 |  | 2014
|  | Q4'15 |  | Q3'15 |  | Q4'14 |  | Q4'15 |  | Q4'14
Portable audio products |  | $ 210,814 |  | $ 253,355 |  | $ 113,413 |  | $ 740,301 |  | $ 562,718
Non-portable audio and other products |  | 44,369 |  | 45,251 |  | 36,246 |  | 176,267 |  | 151,620
Net sales |  | 255,183 |  | 298,606 |  | 149,659 |  | 916,568 |  | 714,338
Cost of sales |  | 136,208 |  | 167,775 |  | 76,291 |  | 490,820 |  | 358,175
Gross profit |  | 118,975 |  | 130,831 |  | 73,368 |  | 425,748 |  | 356,163
Gross margin |  | 46.6% |  | 43.8% |  | 49.0% |  | 46.5% |  | 49.9%
Research and development |  | 58,070 |  | 55,474 |  | 35,511 |  | 197,878 |  | 126,189
Selling, general and administrative |  | 30,498 |  | 27,783 |  | 17,823 |  | 99,509 |  | 74,861
Acquisition related costs |  | - |  | 3,200 |  | - |  | 18,137 |  | -
Restructuring and other |  | - |  | - |  | (26) |  | 1,455 |  | (598)
Patent infringement settlements, net |  | - |  | - |  | - |  | - |  | 695
Total operating expenses |  | 88,568 |  | 86,457 |  | 53,308 |  | 316,979 |  | 201,147
Income from operations |  | 30,407 |  | 44,374 |  | 20,060 |  | 108,769 |  | 155,016
Interest income (expense), net |  | (869) |  | (1,042) |  | 267 |  | (5,048) |  | 848
Other expense |  | 392 |  | (1,071) |  | (27) |  | (12,172) |  | (127)
Income before income taxes |  | 29,930 |  | 42,261 |  | 20,300 |  | 91,549 |  | 155,737
Provision for income taxes |  | 8,581 |  | 19,532 |  | 7,698 |  | 36,371 |  | 47,626
Net income |  | $ 21,349 |  | $ 22,729 |  | $ 12,602 |  | $ 55,178 |  | $ 108,111
Basic earnings per share: |  | $ 0.34 |  | $ 0.36 |  | $ 0.20 |  | $ 0.88 |  | $ 1.72
Diluted earnings per share: |  | $ 0.32 |  | $ 0.35 |  | $ 0.20 |  | $ 0.85 |  | $ 1.65
Weighted average number of shares: |  |  |  |  |  |  |  |  |  |
Basic |  | 62,852 |  | 62,885 |  | 62,215 |  | 62,503 |  | 62,926
Diluted |  | 65,815 |  | 65,214 |  | 64,545 |  | 65,235 |  | 65,535
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. Certain modifications to prior year non-GAAP presentation has been made and had no material effect on the results of operations.

|  | Three Months Ended |  | Twelve Months Ended
|  | Mar. 28, |  | Dec. 27, |  | Mar. 29, |  | Mar. 28, |  | Mar. 29,
|  |  | 2015 |  |  |  | 2014 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2014 |
Net Income Reconciliation |  | Q4'15 |  | Q3'15 |  | Q4'14 |  | Q4'15 |  | Q4'14
GAAP Net Income |  | $ | 21,349 |  |  | $ | 22,729 |  |  | $ | 12,602 |  |  | $ | 55,178 |  |  | $ | 108,111 |
Amortization of acquisition intangibles |  |  | 7,141 |  |  |  | 5,151 |  |  |  | 217 |  |  |  | 15,062 |  |  |  | 492 |
Stock based compensation expense |  |  | 7,735 |  |  |  | 7,815 |  |  |  | 5,545 |  |  |  | 27,668 |  |  |  | 23,074 |
Provision for litigation expenses and settlements |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 695 |
Restructuring and other costs, net |  |  | - |  |  |  | - |  |  |  | (26 | ) |  |  | 1,455 |  |  |  | (598 | )
Wolfson acquisition items |  |  | - |  |  |  | 9,903 |  |  |  | - |  |  |  | 43,082 |  |  |  | - |
Provision (benefit) for income taxes |  |  | 7,230 |  |  |  | 17,714 |  |  |  | 7,808 |  |  |  | 31,934 |  |  |  | 44,647 |
Non-GAAP Net Income |  | $ | 43,455 |  |  | $ | 63,312 |  |  | $ | 26,146 |  |  | $ | 174,379 |  |  | $ | 176,421 |
Earnings Per Share Reconciliation |  |  |  |  |  |  |  |  |  |
GAAP Diluted earnings per share |  | $ | 0.32 |  |  | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.85 |  |  | $ | 1.65 |
Effect of Amortization of acquisition intangibles |  |  | 0.11 |  |  |  | 0.08 |  |  |  | - |  |  |  | 0.23 |  |  |  | 0.01 |
Effect of Stock based compensation expense |  |  | 0.12 |  |  |  | 0.12 |  |  |  | 0.09 |  |  |  | 0.42 |  |  |  | 0.35 |
Effect of Provision for litigation expenses and settlements |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0.01 |
Effect of Restructuring and other costs, net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0.02 |  |  |  | (0.01 | )
Effect of Wolfson acquisition items |  |  | - |  |  |  | 0.15 |  |  |  | - |  |  |  | 0.66 |  |  |  | - |
Effect of Provision (benefit) for income taxes |  |  | 0.11 |  |  |  | 0.27 |  |  |  | 0.12 |  |  |  | 0.49 |  |  |  | 0.68 |
Non-GAAP Diluted earnings per share |  | $ | 0.66 |  |  | $ | 0.97 |  |  | $ | 0.41 |  |  | $ | 2.67 |  |  | $ | 2.69 |
Operating Income Reconciliation |  |  |  |  |  |  |  |  |  |
GAAP Operating Income |  | $ | 30,407 |  |  | $ | 44,374 |  |  | $ | 20,060 |  |  | $ | 108,769 |  |  | $ | 155,016 |
GAAP Operating Profit |  |  | 12 | % |  |  | 15 | % |  |  | 13 | % |  |  | 12 | % |  |  | 22 | %
Amortization of acquisition intangibles |  |  | 7,141 |  |  |  | 5,151 |  |  |  | 217 |  |  |  | 15,062 |  |  |  | 492 |
Stock compensation expense - COGS |  |  | (10 | ) |  |  | 273 |  |  |  | 287 |  |  |  | 747 |  |  |  | 864 |
Stock compensation expense - R&D |  |  | 2,994 |  |  |  | 2,904 |  |  |  | 2,546 |  |  |  | 11,222 |  |  |  | 10,392 |
Stock compensation expense - SG&A |  |  | 4,751 |  |  |  | 4,638 |  |  |  | 2,712 |  |  |  | 15,699 |  |  |  | 11,818 |
Provision for litigation expenses and settlements |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 695 |
Restructuring and other costs, net |  |  | - |  |  |  | - |  |  |  | (26 | ) |  |  | 1,455 |  |  |  | (598 | )
Wolfson acquisition items |  |  | - |  |  |  | 9,903 |  |  |  | - |  |  |  | 28,642 |  |  |  | - |
Non-GAAP Operating Income |  | $ | 45,283 |  |  | $ | 67,243 |  |  | $ | 25,796 |  |  | $ | 181,596 |  |  | $ | 178,679 |
Non-GAAP Operating Profit |  |  | 18 | % |  |  | 23 | % |  |  | 17 | % |  |  | 20 | % |  |  | 25 | %
Operating Expense Reconciliation |  |  |  |  |  |  |  |  |  |
GAAP Operating Expenses |  | $ | 88,568 |  |  | $ | 86,457 |  |  | $ | 53,308 |  |  | $ | 316,979 |  |  | $ | 201,147 |
Amortization of acquisition intangibles |  |  | (7,141 | ) |  |  | (5,151 | ) |  |  | (217 | ) |  |  | (15,062 | ) |  |  | (492 | )
Stock compensation expense - R&D |  |  | (2,994 | ) |  |  | (2,904 | ) |  |  | (2,546 | ) |  |  | (11,222 | ) |  |  | (10,392 | )
Stock compensation expense - SG&A |  |  | (4,751 | ) |  |  | (4,638 | ) |  |  | (2,712 | ) |  |  | (15,699 | ) |  |  | (11,818 | )
Provision for litigation expenses and settlements |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (695 | )
Restructuring and other costs, net |  |  | - |  |  |  | - |  |  |  | 26 |  |  |  | (1,455 | ) |  |  | 598 |
Wolfson acquisition items |  |  | - |  |  |  | (3,200 | ) |  |  | - |  |  |  | (20,329 | ) |  |  | - |
Non-GAAP Operating Expenses |  | $ | 73,682 |  |  | $ | 70,564 |  |  | $ | 47,859 |  |  | $ | 253,212 |  |  | $ | 178,348 |
Gross Margin/Profit Reconciliation |  |  |  |  |  |  |  |  |  |
GAAP Gross Margin |  | $ | 118,975 |  |  | $ | 130,831 |  |  | $ | 73,368 |  |  | $ | 425,748 |  |  | $ | 356,163 |
GAAP Gross Profit |  |  | 46.6 | % |  |  | 43.8 | % |  |  | 49.0 | % |  |  | 46.5 | % |  |  | 49.9 | %
Wolfson acquisition items |  |  | - |  |  |  | 6,703 |  |  |  | - |  |  |  | 8,313 |  |  |  | - |
Stock compensation expense - COGS |  |  | (10 | ) |  |  | 273 |  |  |  | 287 |  |  |  | 747 |  |  |  | 864 |
Non-GAAP Gross Margin |  | $ | 118,965 |  |  | $ | 137,807 |  |  | $ | 73,655 |  |  | $ | 434,808 |  |  | $ | 357,027 |
Non-GAAP Gross Profit |  |  | 46.6 | % |  |  | 46.2 | % |  |  | 49.2 | % |  |  | 47.4 | % |  |  | 50.0 | %

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands
|  | Mar. 28, |  | Dec. 27, |  | Mar. 29,
|  |  | 2015 |  |  |  | 2014 |  |  |  | 2014 |
ASSETS |  |  |  |  |  |
Current assets |  |  |  |  |  |
Cash and cash equivalents |  | $ | 76,401 |  |  | $ | 66,607 |  |  | $ | 31,850 |
Marketable securities |  |  | 124,246 |  |  |  | 106,061 |  |  |  | 263,417 |
Accounts receivable, net |  |  | 112,608 |  |  |  | 148,386 |  |  |  | 63,220 |
Inventories |  |  | 84,196 |  |  |  | 73,896 |  |  |  | 69,743 |
Deferred tax asset |  |  | 18,559 |  |  |  | 14,143 |  |  |  | 22,024 |
Other current assets |  |  | 35,903 |  |  |  | 27,081 |  |  |  | 25,079 |
Total current Assets |  |  | 451,913 |  |  |  | 436,174 |  |  |  | 475,333 |
Long-term marketable securities |  |  | 60,072 |  |  |  | 3,404 |  |  |  | 89,243 |
Property and equipment, net |  |  | 144,346 |  |  |  | 137,291 |  |  |  | 103,650 |
Intangibles, net |  |  | 175,743 |  |  |  | 181,675 |  |  |  | 11,999 |
Goodwill |  |  | 263,115 |  |  |  | 264,879 |  |  |  | 16,367 |
Deferred tax asset |  |  | 25,593 |  |  |  | 24,991 |  |  |  | 25,065 |
Other assets |  |  | 27,996 |  |  |  | 16,654 |  |  |  | 3,087 |
Total assets |  | $ | 1,148,778 |  |  | $ | 1,065,068 |  |  | $ | 724,744 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |
Current liabilities |  |  |  |  |  |
Accounts payable |  | $ | 112,213 |  |  | $ | 77,195 |  |  | $ | 51,932 |
Accrued salaries and benefits |  |  | 24,132 |  |  |  | 20,164 |  |  |  | 13,388 |
Deferred income |  |  | 6,105 |  |  |  | 5,417 |  |  |  | 5,631 |
Other accrued liabilities |  |  | 34,128 |  |  |  | 27,402 |  |  |  | 11,572 |
Total current liabilities |  |  | 176,578 |  |  |  | 130,178 |  |  |  | 82,523 |
Long-term debt |  |  | 180,439 |  |  |  | 200,439 |  |  |  | - |
Other long-term liabilities |  |  | 34,990 |  |  |  | 21,073 |  |  |  | 4,863 |
Stockholders' equity: |  |  |  |  |  |
Capital stock |  |  | 1,159,494 |  |  |  | 1,135,719 |  |  |  | 1,078,878 |
Accumulated deficit |  |  | (400,613 | ) |  |  | (421,514 | ) |  |  | (440,634 | )
Accumulated other comprehensive loss |  |  | (2,110 | ) |  |  | (827 | ) |  |  | (886 | )
Total stockholders' equity |  |  | 756,771 |  |  |  | 713,378 |  |  |  | 637,358 |
Total liabilities and stockholders' equity |  | $ | 1,148,778 |  |  | $ | 1,065,068 |  |  | $ | 724,744 |
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