NASDAQ: CRUS

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Oct 02, 2023 04:00 PM Pricing delayed 20 minutes

Cirrus Logic Reports Fiscal Fourth Quarter Revenue of $372.8 Million and Full Fiscal Year 2023 Revenue of $1.90 Billion

May 04, 2023

Record Fiscal Year 2023 Revenue Driven By Higher Sales of Components Shipping in Smartphones

Cirrus Logic, Inc. (NASDAQ: CRUS)today posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the fourth quarter and full fiscal year 2023, which ended March 25, 2023, as well as the company’s current business outlook.

“We delivered solid financial results in FY23 as higher sales of products shipping in smartphones drove seven percent year-over-year revenue growth,” said John Forsyth, Cirrus Logic president and chief executive officer. “Additionally, the company made significant progress in our strategy of driving product diversification through our high-performance mixed-signal products, with revenue derived from these solutions increasing to 38 percent of total sales. With an extensive portfolio of existing products and a pipeline of innovations in development, we look forward to capitalizing on the many opportunities ahead of us to further broaden our technology and market reach.”

Reported Financial Results – Fourth Quarter FY23

  • Revenue of $372.8 million;
  • GAAP and non-GAAP gross margin of 50.0 percent and 50.1 percent;
  • GAAP operating expenses of $249.2 million and non-GAAP operating expenses of $119.8 million; and
  • GAAP loss per share of $(0.97) and non-GAAP earnings per share of $0.92.

Reported Financial Results – Full Year FY23

  • Revenue of $1.90 billion;
  • GAAP and non-GAAP gross margin of 50.4 percent and 50.5 percent;
  • GAAP operating expenses of $707.9 million and non-GAAP operating expenses of $486.4 million; and
  • GAAP earnings per share of $3.09 and non-GAAP earnings per share of $6.42.

GAAP operating expense for Q4 FY23 and the full fiscal year 2023 included $85.8 million in intangibles impairment and $10.6 million in lease impairments and restructuring costs.

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

Business Outlook – First Quarter FY24

  • Revenue is expected to range between $260 million and $320 million;
  • GAAP gross margin is forecasted to be between 49 percent and 51 percent; and
  • Combined GAAP R&D and SG&A expenses are anticipated to range between $142 million and $148 million, including approximately $23 million in stock-based compensation expense, $2 million in amortization of acquired intangibles, and $3 million in acquisition-related costs.

Cirrus Logic will host a live Q&A session at 6 p.m. EDT today to discuss its financial results and business outlook. Participants may listen to the conference call on the investor relations website at investor.cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion or by calling (647) 362-9199, or toll-free at (800) 770-2030 (Access Code: 95424).

About Cirrus Logic, Inc.

Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world’s top mobile and consumer applications. With headquarters in Austin, Texas, Cirrus Logic is recognized globally for its award-winning corporate culture.

Cirrus Logic, Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders.

Use of non-GAAP Financial Information

To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, diluted share count, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. 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 statements about our ability to drive product diversification through high-performance mixed-signal; our ability to capitalize on the many opportunities ahead and broaden our technology and market reach; and our estimates for the first quarter fiscal year 2024 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock compensation expense, amortization of acquired intangibles and acquisition-related costs. 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, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the effects of the global COVID-19 outbreak and the measures taken to limit the spread of COVID-19, including any disruptions to our business that could result from measures to contain the outbreak that may be taken by governmental authorities in the jurisdictions in which we and our supply chain operate; the susceptibility of the markets we address to economic downturns, including as a result of the COVID-19 outbreak and the actions taken to mitigate the spread of COVID-19; increased industry-wide capacity constraints that may impact our ability to meet current customer demand, which could cause an unanticipated decline in our sales and damage our existing customer relationships and our ability to establish new customer relationships; the potential for increased prices due to capacity constraints in our supply chain, which, if we are unable to increase our selling price to our customers, could result in lower revenues and margins that could adversely affect our financial results; recent significant increases in inflation in the U.S and overseas; the level and timing of orders and shipments during the first quarter of fiscal year 2024, customer cancellations of orders, or the failure to place orders consistent with forecasts, along with the risk factors listed in our Form 10-K for the year ended March 26, 2022 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 expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(in thousands, except per share data; unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

Mar. 25,

 

Dec. 24,

 

Mar. 26,

 

Mar. 25,

 

Mar. 26,

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

Q4'23

 

Q3'23

 

Q4'22

 

Q4'23

 

Q4'22

Audio

$

232,402

 

 

$

347,297

 

 

$

327,099

 

 

$

1,172,007

 

 

$

1,187,126

 

High-Performance Mixed-Signal

 

140,420

 

 

 

243,285

 

 

 

162,873

 

 

 

725,610

 

 

 

594,334

 

Net sales

 

372,822

 

 

 

590,582

 

 

 

489,972

 

 

 

1,897,617

 

 

 

1,781,460

 

Cost of sales

 

186,468

 

 

 

293,877

 

 

 

231,243

 

 

 

940,638

 

 

 

857,819

 

Gross profit

 

186,354

 

 

 

296,705

 

 

 

258,729

 

 

 

956,979

 

 

 

923,641

 

Gross margin

 

50.0

%

 

 

50.2

%

 

 

52.8

%

 

 

50.4

%

 

 

51.8

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

115,162

 

 

 

118,063

 

 

 

111,394

 

 

 

458,412

 

 

 

406,307

 

Selling, general and administrative

 

37,642

 

 

 

37,262

 

 

 

39,470

 

 

 

153,144

 

 

 

150,996

 

Lease impairments and restructuring

 

10,632

 

 

 

 

 

 

 

 

 

10,632

 

 

 

 

Intangibles impairment

 

85,760

 

 

 

 

 

 

 

 

 

85,760

 

 

 

 

Total operating expenses

 

249,196

 

 

 

155,325

 

 

 

150,864

 

 

 

707,948

 

 

 

557,303

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

(62,842

)

 

 

141,380

 

 

 

107,865

 

 

 

249,031

 

 

 

366,338

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense)

 

4,720

 

 

 

2,777

 

 

 

(103

)

 

 

9,087

 

 

 

615

 

Other income (expense)

 

(464

)

 

 

(3,716

)

 

 

180

 

 

 

(3,379

)

 

 

1,710

 

Income (loss) before income taxes

 

(58,586

)

 

 

140,441

 

 

 

107,942

 

 

 

254,739

 

 

 

368,663

 

Provision for income taxes

 

(4,917

)

 

 

36,964

 

 

 

11,528

 

 

 

78,036

 

 

 

42,308

 

Net income (loss)

$

(53,669

)

 

$

103,477

 

 

$

96,414

 

 

$

176,703

 

 

$

326,355

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

$

(0.97

)

 

$

1.87

 

 

$

1.69

 

 

$

3.18

 

 

$

5.70

 

Diluted earnings (loss) per share:

$

(0.97

)

 

$

1.83

 

 

$

1.64

 

 

$

3.09

 

 

$

5.52

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

Basic

 

55,219

 

 

 

55,239

 

 

 

56,993

 

 

 

55,614

 

 

 

57,278

 

Diluted

 

55,219

 

 

 

56,583

 

 

 

58,625

 

 

 

57,226

 

 

 

59,143

 

 

 

 

 

 

 

 

 

 

 

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION

(in thousands, except per share data; unaudited)

(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

 

Twelve Months Ended

 

Mar. 25,

 

Dec. 24,

 

Mar. 26,

 

Mar. 25,

 

Mar. 26,

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net Income (Loss) Reconciliation

Q4'23

 

Q3'23

 

Q4'22

 

Q4'23

 

Q4'22

GAAP Net Income (Loss)

$

(53,669

)

 

$

103,477

 

 

$

96,414

 

 

$

176,703

 

 

$

326,355

 

Amortization of acquisition intangibles

 

7,657

 

 

 

8,807

 

 

 

7,882

 

 

 

32,086

 

 

 

27,017

 

Stock-based compensation expense

 

22,533

 

 

 

20,487

 

 

 

17,024

 

 

 

81,641

 

 

 

66,392

 

Lease impairments and restructuring

 

10,632

 

 

 

 

 

 

 

 

 

10,632

 

 

 

 

Intangibles impairment

 

85,760

 

 

 

 

 

 

 

 

 

85,760

 

 

 

 

Acquisition-related costs

 

3,166

 

 

 

3,176

 

 

 

3,164

 

 

 

12,670

 

 

 

12,153

 

Investment write off

 

 

 

 

2,746

 

 

 

 

 

 

2,746

 

 

 

 

Adjustment to income taxes

 

(23,461

)

 

 

(2,936

)

 

 

(6,778

)

 

 

(34,832

)

 

 

(23,675

)

Non-GAAP Net Income

$

52,618

 

 

$

135,757

 

 

$

117,706

 

 

$

367,406

 

 

$

408,242

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Diluted earnings (loss) per share

$

(0.97

)

 

$

1.83

 

 

$

1.64

 

 

$

3.09

 

 

$

5.52

 

Effect of Amortization of acquisition intangibles

 

0.14

 

 

 

0.15

 

 

 

0.14

 

 

 

0.56

 

 

 

0.46

 

Effect of Stock-based compensation expense

 

0.40

 

 

 

0.36

 

 

 

0.29

 

 

 

1.43

 

 

 

1.12

 

Effect of Lease impairments and restructuring

 

0.19

 

 

 

 

 

 

 

 

 

0.18

 

 

 

 

Effect of Intangibles impairment

 

1.51

 

 

 

 

 

 

 

 

 

1.50

 

 

 

 

Effect of Acquisition-related costs

 

0.06

 

 

 

0.06

 

 

 

0.05

 

 

 

0.22

 

 

 

0.20

 

Effect of Investment write off

 

 

 

 

0.05

 

 

 

 

 

 

0.05

 

 

 

 

Effect of Adjustment to income taxes

 

(0.41

)

 

 

(0.05

)

 

 

(0.11

)

 

 

(0.61

)

 

 

(0.40

)

Non-GAAP Diluted earnings per share

$

0.92

 

 

$

2.40

 

 

$

2.01

 

 

$

6.42

 

 

$

6.90

 

 

 

 

 

 

 

 

 

 

 

Diluted Shares Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Diluted shares

 

55,219

 

 

 

56,583

 

 

 

58,625

 

 

 

57,226

 

 

 

59,143

 

Effect of weighted dilutive shares

 

1,821

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Diluted shares

 

57,040

 

 

 

56,583

 

 

 

58,625

 

 

 

57,226

 

 

 

59,143

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss) Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Operating Income (Loss)

$

(62,842

)

 

$

141,380

 

 

$

107,865

 

 

$

249,031

 

 

$

366,338

 

GAAP Operating Profit (Loss)

 

(16.9

)%

 

 

23.9

%

 

 

22.0

%

 

 

13.1

%

 

 

20.6

%

Amortization of acquisition intangibles

 

7,657

 

 

 

8,807

 

 

 

7,882

 

 

 

32,086

 

 

 

27,017

 

Stock-based compensation expense - COGS

 

372

 

 

 

309

 

 

 

261

 

 

 

1,270

 

 

 

1,024

 

Stock-based compensation expense - R&D

 

15,782

 

 

 

14,710

 

 

 

11,786

 

 

 

57,312

 

 

 

44,154

 

Stock-based compensation expense - SG&A

 

6,379

 

 

 

5,468

 

 

 

4,977

 

 

 

23,059

 

 

 

21,214

 

Lease impairments and restructuring

 

10,632

 

 

 

 

 

 

 

 

 

10,632

 

 

 

 

Intangibles impairment

 

85,760

 

 

 

 

 

 

 

 

 

85,760

 

 

 

 

Acquisition-related costs

 

3,166

 

 

 

3,176

 

 

 

3,164

 

 

 

12,670

 

 

 

12,153

 

Non-GAAP Operating Income

$

66,906

 

 

$

173,850

 

 

$

135,935

 

 

$

471,820

 

 

$

471,900

 

Non-GAAP Operating Profit

 

17.9

%

 

 

29.4

%

 

 

27.7

%

 

 

24.9

%

 

 

26.5

%

 

 

 

 

 

 

 

 

 

 

Operating Expense Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Operating Expenses

$

249,196

 

 

$

155,325

 

 

$

150,864

 

 

$

707,948

 

 

$

557,303

 

Amortization of acquisition intangibles

 

(7,657

)

 

 

(8,807

)

 

 

(7,882

)

 

 

(32,086

)

 

 

(27,017

)

Stock-based compensation expense - R&D

 

(15,782

)

 

 

(14,710

)

 

 

(11,786

)

 

 

(57,312

)

 

 

(44,154

)

Stock-based compensation expense - SG&A

 

(6,379

)

 

 

(5,468

)

 

 

(4,977

)

 

 

(23,059

)

 

 

(21,214

)

Lease impairments and restructuring

 

(10,632

)

 

 

 

 

 

 

 

 

(10,632

)

 

 

 

Intangibles impairment

 

(85,760

)

 

 

 

 

 

 

 

 

(85,760

)

 

 

 

Acquisition-related costs

 

(3,166

)

 

 

(3,176

)

 

 

(3,164

)

 

 

(12,670

)

 

 

(8,692

)

Non-GAAP Operating Expenses

$

119,820

 

 

$

123,164

 

 

$

123,055

 

 

$

486,429

 

 

$

456,226

 

 

 

 

 

 

 

 

 

 

 

Gross Margin/Profit Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Gross Profit

$

186,354

 

 

$

296,705

 

 

$

258,729

 

 

$

956,979

 

 

$

923,641

 

GAAP Gross Margin

 

50.0

%

 

 

50.2

%

 

 

52.8

%

 

 

50.4

%

 

 

51.8

%

Acquisition-related costs

 

 

 

 

 

 

 

 

 

 

 

 

 

3,461

 

Stock-based compensation expense - COGS

 

372

 

 

 

309

 

 

 

261

 

 

 

1,270

 

 

 

1,024

 

Non-GAAP Gross Profit

$

186,726

 

 

$

297,014

 

 

$

258,990

 

 

$

958,249

 

 

$

928,126

 

Non-GAAP Gross Margin

 

50.1

%

 

 

50.3

%

 

 

52.9

%

 

 

50.5

%

 

 

52.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

Mar. 25,

 

Dec. 24,

 

Mar. 26,

 

Mar. 25,

 

Mar. 26,

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Effective Tax Rate Reconciliation

Q4'23

 

Q3'23

 

Q4'22

 

Q4'23

 

Q4'22

GAAP Tax Expense (Benefit)

$

(4,917

)

 

$

36,964

 

 

$

11,528

 

 

$

78,036

 

 

$

42,308

 

GAAP Effective Tax Rate

 

8.4

%

 

 

26.3

%

 

 

10.7

%

 

 

30.6

%

 

 

11.5

%

Adjustments to income taxes

 

23,461

 

 

 

2,936

 

 

 

6,778

 

 

 

34,832

 

 

 

23,675

 

Non-GAAP Tax Expense

$

18,544

 

 

$

39,900

 

 

$

18,306

 

 

$

112,868

 

 

$

65,983

 

Non-GAAP Effective Tax Rate

 

26.1

%

 

 

22.7

%

 

 

13.5

%

 

 

23.5

%

 

 

13.9

%

 

 

 

 

 

 

 

 

 

 

Tax Impact to EPS Reconciliation

 

 

 

 

 

 

 

 

 

GAAP Tax Expense (Benefit)

$

(0.09

)

 

$

0.65

 

 

$

0.20

 

 

$

1.36

 

 

$

0.72

 

Adjustments to income taxes

 

0.41

 

 

 

0.05

 

 

 

0.11

 

 

 

0.61

 

 

 

0.40

 

Non-GAAP Tax Expense

$

0.32

 

 

$

0.70

 

 

$

0.31

 

 

$

1.97

 

 

$

1.12

 

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands; unaudited)

 

 

 

 

 

 

 

 

 

Mar. 25,

 

Dec. 24,

 

Mar. 26,

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

445,784

 

 

$

434,544

 

 

$

369,814

 

Marketable securities

 

 

34,978

 

 

 

28,373

 

 

 

10,601

 

Accounts receivable, net

 

 

150,473

 

 

 

270,493

 

 

 

240,264

 

Inventories

 

 

233,450

 

 

 

152,426

 

 

 

138,436

 

Prepaid wafers

 

 

60,638

 

 

 

40,425

 

 

 

 

Other current assets

 

 

92,533

 

 

 

87,224

 

 

 

80,900

 

Total current Assets

 

 

1,017,856

 

 

 

1,013,485

 

 

 

840,015

 

 

 

 

 

 

 

 

Long-term marketable securities

 

 

36,509

 

 

 

44,784

 

 

 

63,749

 

Right-of-use lease assets

 

 

128,145

 

 

 

150,938

 

 

 

171,003

 

Property and equipment, net

 

 

162,972

 

 

 

156,602

 

 

 

157,077

 

Intangibles, net

 

 

38,876

 

 

 

133,032

 

 

 

158,145

 

Goodwill

 

 

435,936

 

 

 

435,936

 

 

 

435,791

 

Deferred tax asset

 

 

35,580

 

 

 

8,630

 

 

 

11,068

 

Long-term prepaid wafers

 

 

134,363

 

 

 

154,575

 

 

 

195,000

 

Other assets

 

 

73,729

 

 

 

67,907

 

 

 

91,552

 

Total assets

 

$

2,063,966

 

 

$

2,165,889

 

 

$

2,123,400

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

81,462

 

 

$

117,406

 

 

$

115,417

 

Accrued salaries and benefits

 

 

50,606

 

 

 

42,187

 

 

 

65,261

 

Lease liability

 

 

18,442

 

 

 

14,024

 

 

 

14,680

 

Acquisition-related liabilities

 

 

21,361

 

 

 

18,195

 

 

 

30,964

 

Other accrued liabilities

 

 

44,469

 

 

 

36,737

 

 

 

38,461

 

Total current liabilities

 

 

216,340

 

 

 

228,549

 

 

 

264,783

 

 

 

 

 

 

 

 

Non-current lease liability

 

 

122,631

 

 

 

143,252

 

 

 

163,162

 

Non-current income taxes

 

 

59,013

 

 

 

72,267

 

 

 

73,383

 

Long-term acquisition-related liabilities

 

 

 

 

 

 

 

 

8,692

 

Other long-term liabilities

 

 

7,700

 

 

 

5,501

 

 

 

13,563

 

Total long-term liabilities

 

 

189,344

 

 

 

221,020

 

 

 

258,800

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Capital stock

 

 

1,670,141

 

 

 

1,639,056

 

 

 

1,578,427

 

Accumulated earnings (deficit)

 

 

(9,320

)

 

 

80,865

 

 

 

23,435

 

Accumulated other comprehensive loss

 

 

(2,539

)

 

 

(3,601

)

 

 

(2,045

)

Total stockholders' equity

 

 

1,658,282

 

 

 

1,716,320

 

 

 

1,599,817

 

Total liabilities and stockholders' equity

 

$

2,063,966

 

 

$

2,165,889

 

 

$

2,123,400

 

 

 

 

 

 

 

 

Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

(in thousands; unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

Mar. 25,

 

Mar. 26,

 

 

 

2023

 

 

 

2022

 

 

 

Q4'23

 

Q4'22

Cash flows from operating activities:

 

 

 

 

Net income (loss)

 

$

(53,669

)

 

$

96,414

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

18,844

 

 

 

16,905

 

Stock-based compensation expense

 

 

22,533

 

 

 

17,024

 

Deferred income taxes

 

 

(40,943

)

 

 

(6,759

)

Loss on retirement or write-off of long-lived assets

 

 

350

 

 

 

115

 

Other non-cash charges

 

 

85

 

 

 

88

 

Lease impairments and restructuring

 

 

10,632

 

 

 

 

Intangibles impairment

 

 

85,760

 

 

 

 

Net change in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

120,020

 

 

 

85,868

 

Inventories

 

 

(81,024

)

 

 

10,089

 

Other assets

 

 

(2,664

)

 

 

8,576

 

Accounts payable and other accrued liabilities

 

 

(32,260

)

 

 

27,711

 

Income taxes payable

 

 

(2,564

)

 

 

(963

)

Acquisition-related liabilities

 

 

3,166

 

 

 

3,163

 

Net cash provided by operating activities

 

 

48,266

 

 

 

258,231

 

Cash flows from investing activities:

 

 

 

 

Maturities and sales of available-for-sale marketable securities

 

 

8,337

 

 

 

4,963

 

Purchases of available-for-sale marketable securities

 

 

(5,830

)

 

 

(5,307

)

Purchases of property, equipment and software

 

 

(11,326

)

 

 

(8,048

)

Investments in technology

 

 

(309

)

 

 

(408

)

Net cash used in investing activities

 

 

(9,128

)

 

 

(8,800

)

Cash flows from financing activities:

 

 

 

 

Issuance of common stock, net of shares withheld for taxes

 

 

8,621

 

 

 

4,658

 

Repurchase of stock to satisfy employee tax withholding obligations

 

 

(1,519

)

 

 

(4,397

)

Repurchase and retirement of common stock

 

 

(35,000

)

 

 

(74,999

)

Net cash used in financing activities

 

 

(27,898

)

 

 

(74,738

)

Net increase in cash and cash equivalents

 

 

11,240

 

 

 

174,693

 

Cash and cash equivalents at beginning of period

 

 

434,544

 

 

 

195,121

 

Cash and cash equivalents at end of period

 

$

445,784

 

 

$

369,814

 

 

 

 

 

 

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION

(in thousands; unaudited)

 

 

 

 

 

 

 

 

 

 

 

Free cash flow, a non-GAAP financial measure, is GAAP cash flow from operations (or cash provided by operating activities) less capital expenditures. Capital expenditures include purchases of property, equipment and software as well as investments in technology, as presented within our GAAP Consolidated Condensed Statement of Cash Flows. Free cash flow margin represents free cash flow divided by revenue.

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve
Months
Ended

 

Three Months Ended

 

 

Mar. 25,

 

Mar. 25,

 

Dec. 24,

 

Sep. 24,

 

Jun. 25,

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

Q4'23

 

Q4'23

 

Q3'23

 

Q2'23

 

Q1'23

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities (GAAP)

 

$

339,568

 

 

$

48,266

 

 

$

180,948

 

 

$

35,989

 

 

$

74,365

 

Capital expenditures

 

 

(36,714

)

 

 

(11,635

)

 

 

(7,608

)

 

 

(10,247

)

 

 

(7,224

)

Free Cash Flow (Non-GAAP)

 

$

302,854

 

 

$

36,631

 

 

$

173,340

 

 

$

25,742

 

 

$

67,141

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow from Operations as a Percentage of Revenue (GAAP)

 

 

18

%

 

 

13

%

 

 

31

%

 

 

7

%

 

 

19

%

Capital Expenditures as a Percentage of Revenue (GAAP)

 

 

2

%

 

 

3

%

 

 

1

%

 

 

2

%

 

 

2

%

Free Cash Flow Margin (Non-GAAP)

 

 

16

%

 

 

10

%

 

 

29

%

 

 

5

%

 

 

17

%

 

Investor Contact:
Chelsea Heffernan
Vice President, Investor Relations
Cirrus Logic, Inc.
(512) 851-4125
Investor@cirrus.com

 

Source: Cirrus Logic, Inc.

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