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 first quarter fiscal year 2014, which ended June
29, as well as the company’s current business outlook.
“We are pleased to have delivered strong operating profit growth
year over year and sequentially,” said Jason Rhode, president and
chief executive officer. “During the quarter, we added new
customers in portable audio and expanded into more SKUs in LED
lighting. We are especially excited about the lineup of custom and
general market products we currently have in development.”
Reported Financial Results – First Quarter FY14
- Revenue of $155 million;
- Gross margin of 51.2 percent;
- GAAP operating expenses of $48 million
and non-GAAP operating expenses of $42 million; and
- GAAP diluted earnings per share of
$0.31 and non-GAAP diluted earnings per share of $0.56.
A reconciliation of the non-GAAP charges is included in the
tables accompanying this press release.
Business Outlook – Second Quarter FY14
- Revenue is expected to range between
$170 million and $190 million;
- Gross margin is expected to be between
46 percent and 48 percent; and
- Combined R&D and SG&A expenses
are expected to range between $49 million and $53 million, which
includes approximately $7 million in share-based compensation.
Cirrus Logic will host a live Q&A session at 5 p.m. EDT
today to answer questions related to its financial results and
business outlook. Participants may listen to the conference call on
the Cirrus Logic website. Participants who would like to submit a
question to be addressed during the call are requested to email
investor.relations@cirrus.com. A replay of the webcast can be
accessed on the Cirrus Logic website approximately two hours
following its completion, or by calling (404) 537-3406, or
toll-free at (855) 859-2056 (Access Code: 99347958).
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
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 profit 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 second quarter fiscal year 2014 revenue,
gross margin, combined research and development and selling,
general and administrative expense levels, and share-based
compensation expense. 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 2014, 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 30, 2013, 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.
CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED
STATEMENT OF OPERATIONS (unaudited) (in thousands,
except per share data)
Three Months Ended Jun. 29, Mar. 30, Jun.
30, 2013 2013 2012 Q1'14
Q4'13 Q1'13 Audio products $ 143,666 $ 196,098 $
80,747 Energy products 11,459 10,775
18,259
Net revenue 155,125
206,873 99,006 Cost of sales
75,627 123,259 45,566
Gross
Profit 79,498 83,614 53,440
Research and development 28,530 30,085 24,910 Selling, general and
administrative 19,198 19,724 18,059 Other expenses, net *
265 - - Total operating expenses
47,993 49,809 42,969
Operating income 31,505 33,805 10,471
Interest income, net 158 106 127 Other income (expense), net
(17 ) 14 (23 )
Income before income
taxes 31,646 33,925 10,575 Provision
(benefit) for income taxes 11,004 7,565
3,648
Net income $ 20,642
$ 26,360 $ 6,927 Basic
earnings per share: $ 0.33 $ 0.41 $ 0.11 Diluted earnings per
share: $ 0.31 $ 0.39 $ 0.10 Weighted average number of
shares: Basic 63,363 63,877 64,470 Diluted 66,188 67,138 68,529
Prepared in accordance with Generally
Accepted Accounting Principles
* Other expenses, net may contain certain items such as
litigation expenses, proceeds from a patent agreement,
restructuring items, sales reorganizations, asset gains and
impairments of non-marketable securities.
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. 29,
Mar. 30, Jun. 30, 2013
2013 2012 Net Income Reconciliation
Q1'14
Q4'13 Q1'13 GAAP Net Income $
20,642 $ 26,360 $ 6,927
Amortization of acquisition intangibles - - 353 Stock based
compensation expense 5,774 5,734 4,173 International sales
reorganization charges - 442 - Restructuring and other costs (430 )
- - Patent settlements, net 695 - - Provision (benefit) for income
taxes 10,161 7,372 3,355
Non-GAAP Net Income $ 36,842 $
39,908 $ 14,808 Earnings
Per Share Reconciliation
GAAP Diluted earnings per share
$ 0.31 $ 0.39 $ 0.10
Effect of Amortization of acquisition intangibles - - 0.01 Effect
of Stock based compensation expense 0.09 0.09 0.06 Effect of
International sales reorganization charges - 0.01 - Effect of
Patent settlements, net 0.01 - - Effect of Provision (benefit) for
income taxes 0.15 0.10 0.05
Non-GAAP Diluted earnings per share $
0.56 $ 0.59 $ 0.22
Operating Income Reconciliation
GAAP Operating
Income $ 31,505 $ 33,805 $
10,471 GAAP Operating Profit 20 % 16 % 11 % Amortization of
acquisition intangibles - - 353 Stock compensation expense - COGS 6
296 118 Stock compensation expense - R&D 2,854 2,976 2,243
Stock compensation expense - SG&A 2,914 2,462 1,812
International sales reorganization charges - 442 - Restructuring
and other costs (430 ) - - Patent settlements, net 695
- -
Non-GAAP Operating
Income $ 37,544 $ 39,981
$ 14,997 Non-GAAP Operating Profit 24 %
19 % 15 % Operating Expense Reconciliation
GAAP Operating
Expenses $ 47,993 $ 49,809 $
42,969 Amortization of acquisition intangibles - - (353 )
Stock compensation expense - R&D (2,854 ) (2,976 ) (2,243 )
Stock compensation expense - SG&A (2,914 ) (2,462 ) (1,812 )
International sales reorganization charges - (442 ) - Restructuring
and other costs 430 - - Patent settlements, net (695 )
- -
Non-GAAP Operating Expenses
$ 41,960 $ 43,929
$ 38,561 CIRRUS LOGIC,
INC. CONSOLIDATED CONDENSED BALANCE SHEET (in
thousands) Jun. 29, Mar.
30, Jun. 30, 2013 2013
2012 (unaudited) (unaudited) ASSETS Current assets Cash and
cash equivalents $ 67,170 $ 66,402 $ 84,312 Restricted investments
- - - Marketable securities 165,540 105,235 82,359 Accounts
receivable, net 63,642 69,289 49,262 Inventories 110,624 119,300
96,790 Deferred tax asset 54,774 64,937 53,139 Other current assets
20,810 19,371 14,574
Total Current Assets 482,560 444,534 380,436 Long-term
marketable securities 39,408 64,910 - Property and equipment, net
99,169 100,623 85,337 Intangibles, net 4,714 4,650 18,457 Goodwill
6,027 6,027 6,027 Deferred tax asset 16,732 16,671 85,721 Other
assets 11,289 13,932 9,300
Total Assets $ 659,899 $ 651,347 $ 585,278
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities Accounts payable $ 47,341 $ 60,827 $ 75,507 Accrued
salaries and benefits 13,476 16,592 10,956 Other accrued
liabilities 9,532 10,704 9,498 Deferred income on shipments to
distributors 4,419 4,956 7,158
Total Current Liabilities 74,768 93,079 103,119 Other
long-term obligations 9,706 10,094 4,159 Stockholders'
equity: Capital stock 1,048,497 1,041,834 1,013,442 Accumulated
deficit (472,180 ) (492,741 ) (534,682 ) Accumulated other
comprehensive loss (892 ) (919 ) (760 ) Total
Stockholders' Equity 575,425 548,174
478,000 Total Liabilities and Stockholders' Equity $
659,899 $ 651,347 $ 585,278 Prepared in
accordance with Generally Accepted Accounting Principles
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