Delivers Strong Sequential Earnings Per Share and Operating Profit
Growth
AUSTIN, Texas--(BUSINESS WIRE)--
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://cirrus2016ir.q4web.com
the quarterly Shareholder Letter that contains the complete financial
results for the second quarter fiscal year 2014, which ended Sept. 28,
as well as the company’s current business outlook.
“Q2 was another great quarter for Cirrus Logic as portable audio
continued to be a key driver of our success and we made significant
progress on our strategic initiatives,” said Jason Rhode, president and
chief executive officer. “We are especially pleased with the addition of
Acoustic Technologies to the Cirrus Logic team as they are expected to
accelerate our progress toward our vision of being the preferred
supplier of signal processing components.”
Reported Financial Results – Second Quarter FY14
-
Revenue of $190.7 million;
-
Gross margin of 52 percent;
-
GAAP operating expenses of $48.8 million and non-GAAP operating
expenses of $43.4 million; and
-
GAAP diluted earnings per share of $0.50 and non-GAAP diluted earnings
per share of $0.84.
A reconciliation of the non-GAAP charges is included in the tables
accompanying this press release.
Business Outlook – Third Quarter FY14
-
Revenue is expected to range between $200 million and $220 million;
-
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 $50
million and $54 million, which includes approximately $7 million in
share-based compensation and acquisition related items.
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: 76914741).
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 Phoenix, 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 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.
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 2014 revenue, gross margin,
combined research and development and selling, general and
administrative expense levels, share-based compensation expense and
acquisition related items. 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 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 and Cirrus are trademarks of Cirrus Logic, Inc.
|
|
CIRRUS LOGIC, INC.
|
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
|
(unaudited)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep. 28,
|
|
Jun. 29,
|
|
Sep. 29,
|
|
Sep. 28,
|
|
Sep. 29,
|
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
Q2'14
|
|
Q1'14
|
|
Q2'13
|
|
Q2'14
|
|
Q2'13
|
Audio products
|
|
$
|
179,912
|
|
|
$
|
143,666
|
|
|
$
|
177,915
|
|
|
$
|
323,578
|
|
|
$
|
258,662
|
|
Energy products
|
|
|
10,759
|
|
|
|
11,459
|
|
|
|
15,859
|
|
|
|
22,218
|
|
|
|
34,118
|
|
Net revenue
|
|
|
190,671
|
|
|
|
155,125
|
|
|
|
193,774
|
|
|
|
345,796
|
|
|
|
292,780
|
|
Cost of sales
|
|
|
91,223
|
|
|
|
75,627
|
|
|
|
93,687
|
|
|
|
166,850
|
|
|
|
139,253
|
|
Gross Profit
|
|
|
99,448
|
|
|
|
79,498
|
|
|
|
100,087
|
|
|
|
178,946
|
|
|
|
153,527
|
|
Gross Margin
|
|
|
52.2
|
%
|
|
|
51.2
|
%
|
|
|
51.7
|
%
|
|
|
51.7
|
%
|
|
|
52.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
29,722
|
|
|
|
28,530
|
|
|
|
29,468
|
|
|
|
58,252
|
|
|
|
54,378
|
|
Selling, general and administrative
|
|
|
19,215
|
|
|
|
19,198
|
|
|
|
20,194
|
|
|
|
38,413
|
|
|
|
38,253
|
|
Restructuring and other costs
|
|
|
(154
|
)
|
|
|
(430
|
)
|
|
|
-
|
|
|
|
(584
|
)
|
|
|
-
|
|
Patent settlements, net
|
|
|
-
|
|
|
|
695
|
|
|
|
-
|
|
|
|
695
|
|
|
|
-
|
|
Total operating expenses
|
|
|
48,783
|
|
|
|
47,993
|
|
|
|
49,662
|
|
|
|
96,776
|
|
|
|
92,631
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
50,665
|
|
|
|
31,505
|
|
|
|
50,425
|
|
|
|
82,170
|
|
|
|
60,896
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
201
|
|
|
|
158
|
|
|
|
131
|
|
|
|
359
|
|
|
|
258
|
|
Other expense, net
|
|
|
(38
|
)
|
|
|
(17
|
)
|
|
|
(40
|
)
|
|
|
(55
|
)
|
|
|
(63
|
)
|
Income before income taxes
|
|
|
50,828
|
|
|
|
31,646
|
|
|
|
50,516
|
|
|
|
82,474
|
|
|
|
61,091
|
|
Provision for income taxes
|
|
|
17,461
|
|
|
|
11,004
|
|
|
|
15,067
|
|
|
|
28,465
|
|
|
|
18,715
|
|
Net income
|
|
$
|
33,367
|
|
|
$
|
20,642
|
|
|
$
|
35,449
|
|
|
$
|
54,009
|
|
|
$
|
42,376
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
$
|
0.53
|
|
|
$
|
0.33
|
|
|
$
|
0.55
|
|
|
$
|
0.85
|
|
|
$
|
0.65
|
|
Diluted earnings per share:
|
|
$
|
0.50
|
|
|
$
|
0.31
|
|
|
$
|
0.51
|
|
|
$
|
0.82
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
63,217
|
|
|
|
63,363
|
|
|
|
64,924
|
|
|
|
63,329
|
|
|
|
64,697
|
|
Diluted
|
|
|
66,125
|
|
|
|
66,188
|
|
|
|
69,207
|
|
|
|
66,203
|
|
|
|
68,920
|
|
|
|
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. 28,
|
|
Jun. 29,
|
|
Sep. 29,
|
|
Sep. 28,
|
|
Sep. 29,
|
|
|
2013
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Net Income Reconciliation
|
|
Q2'14
|
|
Q1'14
|
|
Q2'13
|
|
Q2'14
|
|
Q2'13
|
GAAP Net Income
|
|
$
|
33,367
|
|
|
$
|
20,642
|
|
|
$
|
35,449
|
|
|
$
|
54,009
|
|
|
$
|
42,376
|
|
Amortization of acquisition intangibles
|
|
|
-
|
|
|
|
-
|
|
|
|
251
|
|
|
|
-
|
|
|
|
604
|
|
Stock based compensation expense
|
|
|
5,739
|
|
|
|
5,774
|
|
|
|
5,563
|
|
|
|
11,513
|
|
|
|
9,736
|
|
Restructuring and other costs, net
|
|
|
(154
|
)
|
|
|
(430
|
)
|
|
|
-
|
|
|
|
(584
|
)
|
|
|
-
|
|
Patent settlements, net
|
|
|
-
|
|
|
|
695
|
|
|
|
-
|
|
|
|
695
|
|
|
|
-
|
|
Provision for income taxes
|
|
|
16,378
|
|
|
|
10,161
|
|
|
|
13,580
|
|
|
|
26,539
|
|
|
|
16,935
|
|
Non-GAAP Net Income
|
|
$
|
55,330
|
|
|
$
|
36,842
|
|
|
$
|
54,843
|
|
|
$
|
92,172
|
|
|
$
|
69,651
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted earnings per share
|
|
$
|
0.50
|
|
|
$
|
0.31
|
|
|
$
|
0.51
|
|
|
$
|
0.82
|
|
|
$
|
0.61
|
|
Effect of Amortization of acquisition intangibles
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Effect of Stock based compensation expense
|
|
|
0.09
|
|
|
|
0.09
|
|
|
|
0.08
|
|
|
|
0.17
|
|
|
|
0.14
|
|
Effect of Restructuring and other costs, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
Effect of Patent settlements, net
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
Effect of Provision for income taxes
|
|
|
0.25
|
|
|
|
0.15
|
|
|
|
0.20
|
|
|
|
0.40
|
|
|
|
0.25
|
|
Non-GAAP Diluted earnings per share
|
|
$
|
0.84
|
|
|
$
|
0.56
|
|
|
$
|
0.79
|
|
|
$
|
1.39
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
|
|
$
|
50,665
|
|
|
$
|
31,505
|
|
|
$
|
50,425
|
|
|
$
|
82,170
|
|
|
$
|
60,896
|
|
GAAP Operating Profit
|
|
|
27
|
%
|
|
|
20
|
%
|
|
|
26
|
%
|
|
|
24
|
%
|
|
|
21
|
%
|
Amortization of acquisition intangibles
|
|
|
-
|
|
|
|
-
|
|
|
|
251
|
|
|
|
-
|
|
|
|
604
|
|
Stock compensation expense - COGS
|
|
|
239
|
|
|
|
6
|
|
|
|
119
|
|
|
|
245
|
|
|
|
237
|
|
Stock compensation expense - R&D
|
|
|
2,158
|
|
|
|
2,854
|
|
|
|
2,097
|
|
|
|
5,012
|
|
|
|
4,340
|
|
Stock compensation expense - SG&A
|
|
|
3,342
|
|
|
|
2,914
|
|
|
|
3,347
|
|
|
|
6,256
|
|
|
|
5,159
|
|
Restructuring and other costs, net
|
|
|
(154
|
)
|
|
|
(430
|
)
|
|
|
-
|
|
|
|
(584
|
)
|
|
|
-
|
|
Patent settlements, net
|
|
|
-
|
|
|
|
695
|
|
|
|
-
|
|
|
|
695
|
|
|
|
-
|
|
Non-GAAP Operating Income
|
|
$
|
56,250
|
|
|
$
|
37,544
|
|
|
$
|
56,239
|
|
|
$
|
93,794
|
|
|
$
|
71,236
|
|
Non-GAAP Operating Profit
|
|
|
30
|
%
|
|
|
24
|
%
|
|
|
29
|
%
|
|
|
27
|
%
|
|
|
24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense Reconciliation
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Expenses
|
|
$
|
48,783
|
|
|
$
|
47,993
|
|
|
$
|
49,662
|
|
|
$
|
96,776
|
|
|
$
|
92,631
|
|
Amortization of acquisition intangibles
|
|
|
-
|
|
|
|
-
|
|
|
|
(251
|
)
|
|
|
-
|
|
|
|
(604
|
)
|
Stock compensation expense - R&D
|
|
|
(2,158
|
)
|
|
|
(2,854
|
)
|
|
|
(2,097
|
)
|
|
|
(5,012
|
)
|
|
|
(4,340
|
)
|
Stock compensation expense - SG&A
|
|
|
(3,342
|
)
|
|
|
(2,914
|
)
|
|
|
(3,347
|
)
|
|
|
(6,256
|
)
|
|
|
(5,159
|
)
|
Restructuring and other costs, net
|
|
|
154
|
|
|
|
430
|
|
|
|
-
|
|
|
|
584
|
|
|
|
-
|
|
Patent settlements, net
|
|
|
-
|
|
|
|
(695
|
)
|
|
|
-
|
|
|
|
(695
|
)
|
|
|
-
|
|
Non-GAAP Operating Expenses
|
|
$
|
43,437
|
|
|
$
|
41,960
|
|
|
$
|
43,967
|
|
|
$
|
85,397
|
|
|
$
|
82,528
|
|
|
|
CIRRUS LOGIC, INC.
|
CONSOLIDATED CONDENSED BALANCE SHEET
|
(in thousands)
|
|
|
Sep. 28,
|
|
Jun. 29,
|
|
Mar. 30,
|
|
Sep. 29,
|
|
|
2013
|
|
2013
|
|
2013
|
|
2012
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
68,886
|
|
|
$
|
67,170
|
|
|
$
|
66,402
|
|
|
$
|
67,846
|
|
Marketable securities
|
|
|
199,423
|
|
|
|
165,540
|
|
|
|
105,235
|
|
|
|
66,731
|
|
Accounts receivable, net
|
|
|
97,640
|
|
|
|
63,642
|
|
|
|
69,289
|
|
|
|
130,870
|
|
Inventories
|
|
|
91,247
|
|
|
|
110,624
|
|
|
|
119,300
|
|
|
|
144,881
|
|
Deferred tax asset
|
|
|
38,398
|
|
|
|
54,774
|
|
|
|
64,937
|
|
|
|
53,144
|
|
Other current assets
|
|
|
23,978
|
|
|
|
20,810
|
|
|
|
19,371
|
|
|
|
19,845
|
|
Total Current Assets
|
|
|
519,572
|
|
|
|
482,560
|
|
|
|
444,534
|
|
|
|
483,317
|
|
|
|
|
|
|
|
|
|
|
Long-term marketable securities
|
|
|
40,254
|
|
|
|
39,408
|
|
|
|
64,910
|
|
|
|
-
|
|
Property and equipment, net
|
|
|
101,885
|
|
|
|
99,169
|
|
|
|
100,623
|
|
|
|
86,992
|
|
Intangibles, net
|
|
|
4,734
|
|
|
|
4,714
|
|
|
|
4,650
|
|
|
|
5,208
|
|
Goodwill
|
|
|
6,027
|
|
|
|
6,027
|
|
|
|
6,027
|
|
|
|
6,027
|
|
Deferred tax asset
|
|
|
16,638
|
|
|
|
16,732
|
|
|
|
16,671
|
|
|
|
72,150
|
|
Other assets
|
|
|
10,051
|
|
|
|
11,289
|
|
|
|
13,932
|
|
|
|
21,402
|
|
Total Assets
|
|
$
|
699,161
|
|
|
$
|
659,899
|
|
|
$
|
651,347
|
|
|
$
|
675,096
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
56,868
|
|
|
$
|
47,341
|
|
|
$
|
60,827
|
|
|
$
|
103,366
|
|
Accrued salaries and benefits
|
|
|
16,894
|
|
|
|
13,476
|
|
|
|
16,592
|
|
|
|
15,594
|
|
Other accrued liabilities
|
|
|
6,313
|
|
|
|
9,532
|
|
|
|
10,704
|
|
|
|
14,218
|
|
Deferred income on shipments to distributors
|
|
|
4,858
|
|
|
|
4,419
|
|
|
|
4,956
|
|
|
|
6,580
|
|
Total Current Liabilities
|
|
|
84,933
|
|
|
|
74,768
|
|
|
|
93,079
|
|
|
|
139,758
|
|
|
|
|
|
|
|
|
|
|
Other long-term obligations
|
|
|
11,231
|
|
|
|
9,706
|
|
|
|
10,094
|
|
|
|
10,042
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Capital stock
|
|
|
1,055,256
|
|
|
|
1,048,497
|
|
|
|
1,041,834
|
|
|
|
1,025,272
|
|
Accumulated deficit
|
|
|
(451,532
|
)
|
|
|
(472,180
|
)
|
|
|
(492,741
|
)
|
|
|
(499,233
|
)
|
Accumulated other comprehensive loss
|
|
|
(727
|
)
|
|
|
(892
|
)
|
|
|
(919
|
)
|
|
|
(743
|
)
|
Total Stockholders' Equity
|
|
|
602,997
|
|
|
|
575,425
|
|
|
|
548,174
|
|
|
|
525,296
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
699,161
|
|
|
$
|
659,899
|
|
|
$
|
651,347
|
|
|
$
|
675,096
|
|
|
|
|
|
|
|
|
|
|
Prepared in accordance with Generally Accepted Accounting
Principles
|
Source: Cirrus Logic, Inc.