Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-precision
analog and digital signal processing components, today announced
financial results for the first quarter of fiscal year 2012, which
ended June 25, 2011.
Revenue for the quarter was $92.2 million, up 13 percent
compared to $81.9 million in the same quarter a year ago, and up
slightly from $91.4 million in the previous quarter.
Gross margin for the quarter was 52 percent, compared to 57
percent in the quarter a year ago, and 50 percent in the previous
quarter. The year-over-year decrease was primarily driven by the
residual impact of the production issue the company disclosed on
April 14, 2011. The company expects the effect of this production
issue to be fully resolved during the second fiscal quarter.
Total GAAP operating expenses for the quarter were $33.4
million, compared to $32.4 million in the previous quarter.
Non-GAAP operating expenses for the quarter were $30.7 million,
compared to $29.7 million in the previous quarter.
GAAP operating margin was 16 percent for the June quarter, while
non-GAAP operating margin was 19 percent.
GAAP net income for the quarter was $9.2 million, or $0.13 per
share, based on 70.4 million average diluted shares outstanding.
Non-GAAP net income for the quarter was $17.0 million, or $0.24 per
diluted share. A reconciliation of the non-GAAP charges is included
in a table below.
“Q1 marks a great first quarter in what we expect to be an
outstanding year for Cirrus Logic, highlighted by both
year-over-year and sequential growth in our audio business,” said
Jason Rhode, president and chief executive officer, Cirrus Logic.
“With meaningful new product introductions from multiple customers
coming later this year, we believe that fiscal year 2012 will be
successful both financially and strategically as new products in
both our Audio and Energy product lines continue to be well
received by key customers.”
Outlook for Second Quarter FY 2012 (ending September
24, 2011):
- Revenue is expected to range between
$101 million and $105 million;
- Gross margin is expected to be between
52 percent and 54 percent; and
- Combined R&D and SG&A expenses
are expected to range between $34.5 million and $37.5 million,
which includes approximately $3.8 million in share-based
compensation and amortization of acquisition-related intangibles
expenses.
Other Highlights and Company News
- A new three chip portable audio
solution, which includes a new audio DSP, recently began production
shipments in the first fiscal quarter.
- The company repurchased approximately
3.5 million shares during the quarter at an average price of
$15.94, leaving approximately $20 million authorized and approved
for additional repurchases.
- Total employee headcount during the
quarter increased to 608 employees, a net increase of 38
employees.
Conference Call
Cirrus Logic management will hold a conference call to discuss
the company’s results for the first quarter of fiscal year 2012, on
July 21, at 10:30 a.m. EDT. The conference call will be simulcast
over the Internet in the Investor Relations section of the company
website at http://investor.cirrus.com. A replay of the conference
call will be available on the website listed above beginning one
hour following the completion of the call, or by calling (303)
590-3030, or toll-free at (800) 406-7325 (Access Code:
4455476).
Shareholders who would like to submit a question to be addressed
during the call are requested to email
investor.relations@cirrus.com.
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 second 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 second quarter of fiscal year 2012, as
well as customer cancellations of orders, or the failure to place
orders consistent with forecasts; the loss of a key customer; 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
Jun. 25, Mar. 26, Jun. 26,
2011 2011 2010
Q1'12 Q4'11 Q1'11 Audio products $ 71,119 $
66,965 $ 53,988 Energy products 21,123 24,468
27,927
Net revenue 92,242
91,433 81,915 Cost of sales
44,533 45,415 35,180
Gross
Profit 47,709 46,018 46,735
Research and development 18,767 17,044 15,092 Selling, general and
administrative 14,606 15,252 14,011 Provision for litigation
expenses - 57 135 Total
operating expenses 33,373 32,353
29,238
Operating income 14,336 13,665
17,497 Interest income, net 154 187 228 Other income
(expense), net (17 ) 40 32
Income
before income taxes 14,473 13,892 17,757
Provision (benefit) for income taxes 5,295
(116,514 ) 155
Net income $ 9,178
$ 130,406 $ 17,602
Basic income per share: $ 0.14 $ 1.91 $ 0.26 Diluted income per
share: $ 0.13 $ 1.80 $ 0.25 Weighted average number of
shares: Basic 67,099 68,164 66,639 Diluted 70,445 72,344 70,755
Prepared in accordance with Generally Accepted Accounting
Principles
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET (in thousands)
Jun. 25, Mar. 26, Jun. 26, 2011
2011 2010 ASSETS
Current assets Cash and cash equivalents $ 41,490 $ 37,039 $ 46,158
Restricted investments 5,755 5,786 6,355 Marketable securities
107,016 159,528 96,148 Accounts receivable, net 41,967 39,098
34,536 Inventories 46,851 40,497 42,415 Other current assets
38,842 37,522 18,656
Total Current Assets
281,921 319,470 244,268 Long-term marketable securities
1,334 12,702 13,008 Property and equipment, net 42,465 34,563
21,306 Intangibles, net 19,505 20,125 21,402 Goodwill 6,027 6,027
6,027 Deferred tax asset 97,152 102,136 337 Other assets
8,566 1,598 1,529 Total Assets $
456,970 $ 496,621 $ 307,877 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $
31,063 $ 27,639 $ 28,088 Accrued salaries and benefits 8,120 12,402
8,685 Other accrued liabilities 7,505 5,169 5,845 Deferred income
9,745 6,844 8,561 Total
Current Liabilities 56,433 52,054 51,179 Long-term
restructuring accrual 45 113 497 Other long-term obligations 6,621
6,075 6,487 Stockholders' equity: Capital stock 994,746
991,947 966,414 Accumulated deficit (600,126 ) (552,814 ) (715,951
) Accumulated other comprehensive loss (749 ) (754 )
(749 ) Total Stockholders' Equity 393,871
438,379 249,714 Total Liabilities and
Stockholders' Equity $ 456,970 $ 496,621 $ 307,877
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 Jun.
25, Mar. 26, Jun. 26, 2011
2011 2010 Net Income
Reconciliation
Q1'12 Q4'11 Q1'11 GAAP Net
Income $ 9,178 $ 130,406 $
17,602 Amortization of acquisition intangibles 353 353 370
Stock based compensation expense 2,442 2,294 1,356 Facility Related
adjustments - - 4 International sales reorganization charges - -
790 Provision for litigation expenses and settlements - 57 135
Provision (benefit) for income taxes 4,984
(117,078 ) -
Non-GAAP Net Income $
16,957 $ 16,032 $
20,257 Earnings Per Share Reconciliation
GAAP Diluted income per share $ 0.13 $
1.80 $ 0.25 Effect of Amortization of
acquisition intangibles 0.01 - 0.01 Effect of Stock based
compensation expense 0.03 0.03 0.02 Effect of Facility Related
adjustments - - - Effect of International sales reorganization
charges - - 0.01 Effect of Provision (benefit) for income taxes
0.07 (1.61 ) -
Non-GAAP Diluted income per
share $ 0.24 $ 0.22
$ 0.29 Operating Income Reconciliation
GAAP Operating Income $ 14,336 $
13,665 $ 17,497 GAAP Operating Margin 16 % 15
% 21 % Amortization of acquisition intangibles 353 353 370 Stock
compensation expense - COGS 89 78 55 Stock compensation expense -
R&D 1,043 924 521 Stock compensation expense - SG&A 1,310
1,292 780 Facility Related adjustments - - 4 International sales
reorganization charges - - 790 Provision for litigation expenses
and settlements - 57 135
Non-GAAP Operating Income $ 17,131
$ 16,369 $ 20,152
Non-GAAP Operating Margin 19 % 18 % 25 % Operating Expense
Reconciliation
GAAP Operating Expenses $
33,373 $ 32,353 $ 29,238
Amortization of acquisition intangibles (353 ) (353 ) (370 ) Stock
compensation expense - R&D (1,043 ) (924 ) (521 ) Stock
compensation expense - SG&A (1,310 ) (1,292 ) (780 ) Facility
Related adjustments - - (4 ) International sales reorganization
charges - - (790 ) Provision for litigation expenses and
settlements - (57 ) (135 )
Non-GAAP
Operating Expenses $ 30,667 $
29,727 $ 26,638
Cirrus Logic (NASDAQ:CRUS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cirrus Logic (NASDAQ:CRUS)
Historical Stock Chart
From Jul 2023 to Jul 2024