Cirrus Logic Reports Fiscal Second Quarter Revenue Of $101.6M

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

Copyright Business Wire 2010

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