CRUS Cirrus Logic Inc

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://investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the fourth quarter and fiscal year 2012, which ended March 31, 2012, as well as the company’s current business outlook.

“We expect revenue to grow substantially in FY ’13 as new audio and energy products hit full production later this year,” said Jason Rhode, president and chief executive officer. “Our product development team has done an excellent job developing innovative new components and our supply chain team now has the task of supporting what we expect to be a significant ramp of a wide range of products. Combined with our strong balance sheet, the new credit facility gives us additional flexibility as we transition to a significantly higher run rate for our business. We are very excited about our outlook for FY ’13.”

Reported Financial Results

Fourth Quarter FY2012

• Revenue of $110.6 million
• Gross margin of 56 percent
• GAAP operating expenses of $41.5 million
• Non-GAAP operating expenses of $37.5 million

Due to recent financial performance, as well as further improvements to its business outlook, the company revalued the deferred tax asset to the full value it expects to use, which resulted in a non-cash, net tax benefit of approximately $30 million in Q4, or $0.45 per share, based on 67.9 million diluted shares.

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

While the company expects to grow revenue substantially during FY ’13, year-over-year revenue in Q1 is currently forecasted to grow approximately 10 percent. Due to the timing of various product introductions later this year, the company expects to transition to a sharply higher level of revenue beginning in the September quarter. In connection with this transition, the company also announced that it has entered into an unsecured, one-year $100 million revolving credit agreement that provides access to additional working capital the company may need in order to support the production ramps of multiple new products this fall. Wells Fargo Bank, N.A., is serving as the Administrative Agent. Wells Fargo Securities, LLC and Barclays Capital served as Joint Lead Arrangers and Joint Bookrunners for this transaction.

Business Outlook

First Quarter FY2013

• Revenue is expected to range between $96 million and $106 million;
• Gross margin is expected to be between 53 percent and 55 percent;
• Combined R&D and SG&A expenses are expected to range between $43 million and $45 million, which includes approximately $4 million in share-based compensation and amortization of acquisition-related intangibles expenses; and
• Ending inventory is expected to roughly double.

Cirrus Logic management will host a live Q&A session at 5:00 p.m. EDT on Wednesday, April 25, 2012, 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: 4531962).

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. 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 first quarter fiscal year 2013 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense, amortization of acquired intangible expenses, and ending inventory, as well as estimates for fiscal year 2013 annual revenue growth rate, operating expenses, and inventory increases. 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 first quarter and complete fiscal year 2013, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; our ability to introduce and ramp production of new products in a timely manner; 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

Summary financial data follows:

            CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited; in thousands, except per share data)   Three Months Ended Fiscal Year Ended   Mar. 31, Dec. 31, Mar. 26, Mar. 31, Mar. 26, 2012 2011 2011 2012 2011 Q4'12 Q3'12 Q4'11 Q4'12 Q4'11 Audio products $ 90,522 $ 105,418 $ 66,965 $ 350,742 $ 264,840 Energy products   20,109     16,950     24,468     76,101     104,731   Net revenue   110,631     122,368     91,433     426,843     369,571   Cost of sales   48,284     56,338     45,415     196,402     167,576   Gross Profit 62,347 66,030 46,018 230,441 201,995   Research and development 24,105 23,143 17,044 85,697 63,934 Selling, general and administrative 17,254 16,488 15,252 65,108 58,066 Other expenses (proceeds) *   100    

-

    57     100     (3,332 ) Total operating expenses   41,459     39,631     32,353     150,905     118,668     Operating income 20,888 26,399 13,665 79,536 83,327   Interest income, net 139 112 187 517 860 Other income (expense), net   45     (71 )   40     (70 )   27   Income before income taxes 21,072 26,440 13,892 79,983 84,214 Provision (benefit) for income taxes   (29,755 )   9,709     (116,514 )   (8,000 )   (119,289 ) Net income $ 50,827   $ 16,731   $ 130,406   $ 87,983   $ 203,503     Basic income per share: $ 0.79 $ 0.26 $ 1.91 $ 1.35 $ 3.00 Diluted income per share: $ 0.75 $ 0.25 $ 1.80 $ 1.29 $ 2.82   Weighted average number of shares: Basic 64,213 63,957 68,164 64,934 67,857 Diluted 67,913 66,989 72,344 68,064 72,103   * Other expenses (proceeds) contains certain litigation expenses settled during the applicable time period as well as proceeds from a patent agreement and an impairment of non-marketable securities during fiscal year 2011.   Prepared in accordance with Generally Accepted Accounting Principles         CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED BALANCE SHEETS

(unaudited; in thousands)

  Mar. 31, Dec. 31, Mar. 26, 2012 2011 2011 ASSETS Current assets Cash and cash equivalents $ 65,997 $ 38,010 $ 37,039 Restricted investments - 2,898 5,786 Marketable securities 115,877 99,342 159,528 Accounts receivable, net 44,153 54,512 39,098 Inventories 55,915 58,079 40,497 Deferred tax asset 53,137 30,798 30,797 Other current assets   16,508     16,116     6,725   Total Current Assets 351,587 299,755 319,470   Long-term marketable securities 2,914 20,092 12,702 Property and equipment, net 66,978 57,263 34,563 Intangibles, net 18,241 18,596 20,125 Goodwill 6,027 6,027 6,027 Deferred tax asset 89,071 82,071 102,136 Other assets   9,644     10,813     1,598   Total Assets $ 544,462   $ 494,617   $ 496,621     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 38,108 $ 45,104 $ 27,639 Accrued salaries and benefits 13,634 11,539 12,402 Other accrued liabilities 14,015 14,259 5,169 Deferred income on shipments to distributors   7,228     8,511     6,844   Total Current Liabilities 72,985 79,413 52,054   Long-term restructuring accrual - - 113 Other long-term obligations 5,620 6,494 6,075   Stockholders' equity: Capital stock 1,008,228 1,001,967 991,947 Accumulated deficit (541,609 ) (592,436 ) (552,814 ) Accumulated other comprehensive loss   (762 )   (821 )   (754 ) Total Stockholders' Equity   465,857     408,710     438,379   Total Liabilities and Stockholders' Equity $ 544,462   $ 494,617   $ 496,621     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. 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 Fiscal Year Ended   Mar. 31, Dec. 31, Mar. 26, Mar. 31, Mar. 26, 2012 2011 2011 2012 2011 Q4'12 Q3'12 Q4'11 Q4'12 Q4'11 Net Income Reconciliation GAAP Net Income $ 50,827 $ 16,731 $ 130,406 $ 87,983 $ 203,503 Amortization of acquisition intangibles 353 353 353 1,412 1,429 Stock-based compensation expense 3,451 2,769 2,294 12,179 8,142 Other adjustments ** 263 - 57 885 (2,638 ) Provision (benefit) for income taxes   (30,310 )   8,992     (117,078 )   (10,171 )   (121,154 ) Non-GAAP Net Income $ 24,584   $ 28,845   $ 16,032   $ 92,288   $ 89,282     Earnings Per Share Reconciliation GAAP Diluted income per share $ 0.75 $ 0.25 $ 1.80 $ 1.29 $ 2.82 Effect of Amortization of acquisition intangibles 0.01 0.01 - 0.02 0.02 Effect of Stock-based compensation expense 0.05 0.04 0.03 0.18 0.11 Effect of Other adjustments ** - - - 0.01 (0.03 ) Effect of Provision (benefit) for income taxes   (0.45 )   0.13     (1.61 )   (0.14 )   (1.68 ) Non-GAAP Diluted income per share $ 0.36   $ 0.43   $ 0.22   $ 1.36   $ 1.24     Operating Income Reconciliation GAAP Operating Income $ 20,888 $ 26,399 $ 13,665 $ 79,536 $ 83,327 Amortization of acquisition intangibles 353 353 353 1,412 1,429 Stock compensation expense - COGS 113 92 78 398 243 Stock compensation expense - R&D 1,753 1,613 924 5,590 2,641 Stock compensation expense - SG&A 1,585 1,064 1,292 6,191 5,258 Other adjustments **   263     -     57     885     (2,638 ) Non-GAAP Operating Income $ 24,955   $ 29,521   $ 16,369   $ 94,012   $ 90,260     Operating Expense Reconciliation GAAP Operating Expenses $ 41,459 $ 39,631 $ 32,353 $ 150,905 $ 118,668 Amortization of acquisition intangibles (353 ) (353 ) (353 ) (1,412 ) (1,429 ) Stock compensation expense - R&D (1,753 ) (1,613 ) (924 ) (5,590 ) (2,641 ) Stock compensation expense - SG&A (1,585 ) (1,064 ) (1,292 ) (6,191 ) (5,258 ) Other adjustments **   (263 )   -     (57 )   (885 )   2,638   Non-GAAP Operating Expenses $ 37,505   $ 36,601   $ 29,727   $ 136,827   $ 111,978     ** Other adjustments may include certain litigation expenses, facility charges, patent agreements, international sales reorganizations, or other.