CRUS Cirrus Logic Inc

Cirrus Logic Inc. (Nasdaq:CRUS) announced that today it has filed with the Securities and Exchange Commission (SEC) an amended Annual Report on Form 10-K/A for the fiscal year ended March 25, 2006, its amended Quarterly Report on Form 10-Q/A for the quarter ended June 24, 2006, and its Quarterly Reports on Form 10-Q for the quarters ended Sept. 23, 2006 and Dec. 30, 2006. The Form 10-K/A filed today includes restated financial statements for fiscal years 2002 through 2006, with adjustments for fiscal years 1997 through 2001 reflected in the opening balances in the restated fiscal year 2002 financial statements. The total additional non-cash, stock-based compensation expenses recorded for fiscal years 1997 through the first quarter of fiscal year 2007 were approximately $32 million. The company previously reported on March 2, 2007 that it estimated these charges would range between $22 million and $24 million. Although no additional changes to option measurement dates were identified, after further review of the accounting treatment of certain option grants, the company determined that additional non-cash stock-based compensation expenses should be recorded. With today�s filings, the company is now current in its SEC reporting obligations and believes that it has satisfied all of the conditions of the NASDAQ Listing Qualifications Panel for the continued listing of its common stock on the NASDAQ Global Select Market. Q4 Financial Results and Conference Call Cirrus Logic will hold its quarterly conference call to discuss fourth quarter fiscal 2007 financial results on Wednesday, May 9, 2007 at 5 p.m. EDT. Cirrus Logic will release the company's financial results at approximately 4 p.m. EDT on the same day. To listen to the live conference call, please dial (303) 262-2131 (Passcode: Cirrus Logic) by 4:50 p.m. EDT on May 9. A replay of the call will also be available, starting one hour after the completion of the call, until May 16, 2007. To access the recording, dial (303) 590-3000 (Passcode: 11088085#). Additionally, the conference call will be webcast live on the company�s website. Cirrus Logic, Inc. Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of consumer and industrial markets. Building on its diverse analog mixed-signal patent portfolio, Cirrus Logic delivers highly optimized products for consumer and commercial audio, automotive entertainment and industrial applications. The company operates from headquarters in Austin, Texas, with offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com. Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements, including our beliefs with regards to the status of the Company�s current SEC reporting obligations and the satisfaction of all of the conditions of the NASDAQ Listing Qualifications Panel for the continued listing of its common stock on the NASDAQ Global Select Market. In some cases, forward-looking statements are identified by words such as we �expect,� �anticipate,� �target,� �project,� �believe,� �goals,� �estimates,� and �intend,� variations of these types of words and similar expressions are intended to identify these 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 on-going SEC inquiry relating to the Company�s historical stock option grants and practices, and the risk factors listed in our Form 10-K/A for the year ended March 25, 2006, and in our other filings with the SEC, which are available at www.sec.gov. Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc. Summary financial data follows: CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) � Three Months Ended Jun. 24, Sep. 23, Dec. 30, 2006� 2006� 2006� � Net revenue $ 45,181� $ 48,179� $ 45,297� Cost of sales 18,021� 20,014� 17,886� Gross Margin 27,160� 28,165� 27,411� � Gross Margin % 60.1% 58.5% 60.5% � Operating expenses: Research and development 11,670� 10,103� 11,190� Selling, general and administrative 11,091� 12,389� 13,478� Restructuring and other costs -� (428) 1,013� Acquired in process research and development -� -� 1,925� Total operating expenses 22,761� 22,064� 27,606� � Total operating expenses as a percentage of revenue 50.4% 45.8% 60.9% � Income (loss) from operations 4,399� 6,101� (195) � Realized gain on marketable equity securities 193� -� -� Interest income, net 2,965� 3,154� 3,615� Other income (expense), net 55� (25) 76� Income (loss) before income taxes 7,612� 9,230� 3,496� Provision (benefit) for income taxes (213) (97) 32� � Net income (loss) $ 7,825� $ 9,327� $ 3,464� � Basic income per share: $ 0.09� $ 0.11� $ 0.04� Diluted income per share: $ 0.09� $ 0.11� $ 0.04� � Basic weighted average common shares outstanding 87,196� 87,553� 87,756� Diluted weighted average common shares outstanding 88,759� 88,499� 88,725� � 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) � Jun. 24, Sep. 23, Dec. 30, 2006� 2006� 2006� We use these non-GAAP financial numbers to assist us in the management of the Company because we believe that this information provides a more consistent and complete understanding of the underlying results and trends of the business. � GAAP net income $ 7,825� $ 9,327� $ 3,464� Non-GAAP adjustments: Stock-based compensation expense 1,208� 1,766� 1,404� Restructuring costs -� (428) 1,013� Stock Option Special Committee expenses -� -� 1,583� Acquired in process R&D -� -� 1,925� Realized gain on marketable securities (193) -� -� Other non-recurring items (259) 58� -� � Non-GAAP net income 8,581� 10,723� 9,389� � GAAP diluted earnings per share $ 0.09� $ 0.11� $ 0.04� Non-GAAP adjustments: Effect of the stock-based compensation expense 0.01� $ 0.02� $ 0.02� Effect of restructuring costs -� (0.01) 0.01� Effect of Special Committee expenses -� -� 0.02� Effect of acquired in process R&D -� -� 0.02� Effect of realized gain on marketable securities -� -� -� Effect of other non-recurring items -� -� -� � Non-GAAP diluted earnings per share $ 0.10� $ 0.12� $ 0.11� � Summary of stock-based compensation expense recorded during each quarter of fiscal year 2007 included above as a reconciling item to GAAP net income. � Jun. 24, Sep. 23, Dec. 30, 2006� 2006� 2006� � Cost of sales 13� 17� 17� Research and development 472� 642� 488� Selling, general and administrative 723� 1,107� 899� � Effect on Income from continuing operations (before taxes) 1,208� 1,766� 1,404� Income Tax -� (2) -� � Total stock-based compensation expense (net of taxes) 1,208� 1,764� 1,404� CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED BALANCE SHEET (in thousands) � Jun. 24, Sep. 23, Dec. 30, 2006� 2006� 2006� ASSETS Current assets Cash and cash equivalents $ 103,053� $ 96,140� $ 81,885� Restricted cash 5,755� 5,755� 5,755� Marketable securities 137,123� 158,817� 176,527� Accounts receivable, net 21,518� 21,924� 16,585� Inventories 21,391� 21,427� 20,331� Other current assets 5,634� 5,949� 6,654� Total Current Assets 294,474� 310,012� 307,737� � Long-term marketable securities 5,972� 992� -� Property and equipment, net 13,263� 12,845� 12,324� Intangibles, net 2,593� 2,894� 9,039� Goodwill -� -� 6,146� Non-marketable securities 7,947� 7,947� 7,947� Other assets 3,293� 3,347� 3,253� Total Assets $ 327,542� $338,037� $346,446� � LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 11,943� $ 10,824� $ 12,142� Accrued salaries and benefits 6,813� 7,038� 6,349� Other accrued liabilities 9,704� 9,565� 12,425� Deferred income on shipments to distributors 6,199� 6,427� 4,907� Income taxes payable 1,990� 2,079� 2,091� Total Current Liabilities 36,649� 35,933� 37,914� � Long-term restructuring accrual 4,469� 3,621� 3,367� Other long-term obligations 9,536� 9,155� 9,763� � Stockholders' equity: Capital stock 919,339� 922,086� 924,665� Accumulated deficit (641,250) (631,923) (628,459) Accumulated other comprehensive income (loss) (1,201) (835) (804) Total Stockholders' Equity 276,888� 289,328� 295,402� Total Liabilities and Stockholders' Equity $ 327,542� $338,037� $346,446� � Prepared in accordance with Generally Accepted Accounting Principles