CRUS Cirrus Logic Inc

Delivers Annual Operating Profit of 22 Percent GAAP and 25 Percent Non-GAAP

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 full fiscal year 2014, which ended March 29, as well as the company’s current business outlook.

“Cirrus Logic is entering into FY15 with a robust pipeline of innovative products, a compelling roadmap pairing our best in class hardware with embedded SoundClear® software and solid relationships with leading players in our target markets,” said Jason Rhode, president and chief executive officer. “Many of our new developments are now under way in more advanced process geometries, allowing our engineers to add meaningful signal processing capabilities to our products and significantly enhance the value we add for our customers.”

Reported Financial Results – Fourth Quarter FY14

• Revenue of $149.7 million;
• Gross margin of 49 percent;
• GAAP operating expenses of $53.3 million and non-GAAP operating expenses of $47.9 million; and
• GAAP diluted earnings per share of $0.20 and non-GAAP diluted earnings per share of $0.41.

Reported Financial Results – Complete FY14

• Revenue of $714.3 million;
• Gross margin of 50 percent;
• GAAP operating expenses of $201.1 million and non-GAAP operating expenses of $178.3 million; and
• GAAP diluted earnings per share of $1.65 and non-GAAP diluted earnings per share of $2.69.

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

Business Outlook – First Quarter FY15

• Revenue is expected to range between $135 million and $155 million;
• Gross margin is expected to be between 47 percent and 49 percent; and
• Combined R&D and SG&A expenses are expected to range between $57 million and $62 million, which includes approximately $7 million in share-based compensation and amortization of acquired intangibles.

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: 23057089).

Upcoming Investor Conference

Cirrus Logic CEO Jason Rhode will present at the Jefferies 2014 Global Technology, Media and Telecom Conference in Miami on May 6 at 12:00 pm EDT. A live webcast of the presentation will be available on the company's investor relations website http://investor.cirrus.com. An archived replay of the webcast will be available for 90 days on the website following the event.

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 Phoenix, 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 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 first quarter fiscal year 2015 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense and amortization of acquired intangibles. 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 of fiscal year 2015, 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, Cirrus and SoundClear are registered trademarks of Cirrus Logic, Inc.

Summary financial data follows:

              CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (unaudited) (in thousands, except per share data)   Three Months Ended Twelve Months Ended Mar. 29, Dec. 28, Mar. 30, Mar. 29, Mar. 30, 2014 2013 2013 2014 2013 Q4'14 Q3'14 Q4'13 Q4'14 Q4'13 Audio products $ 137,773 $ 206,388 $ 196,098 $ 667,739 $ 754,769 Energy products   11,886     12,495     10,775     46,599     55,017   Net revenue   149,659     218,883     206,873     714,338     809,786   Cost of sales   76,291     115,034     123,259     358,175     414,595   Gross Profit 73,368 103,849 83,614 356,163 395,191 Gross Margin 49.0 % 47.4 % 40.4 % 49.9 % 48.8 %   Research and development 35,511 32,426 30,085 126,189 114,071 Selling, general and administrative 17,823 18,625 19,724 74,861 76,998 Restructuring and other costs (26 ) 12 - (598 ) 3,539 Gain on sale of asset - - - - (247 ) Patent settlements, net   -     -     -     695     -   Total operating expenses   53,308     51,063     49,809     201,147     194,361     Operating income 20,060 52,786 33,805 155,016 200,830   Interest income, net 267 222 106 848 440 Other income (expense), net   (27 )   (45 )   14     (127 )   (80 ) Income before income taxes 20,300 52,963 33,925 155,737 201,190 Provision for income taxes   7,698     11,463     7,565     47,626     64,592   Net income $ 12,602   $ 41,500   $ 26,360   $ 108,111   $ 136,598     Basic earnings per share: $ 0.20 $ 0.66 $ 0.41 $ 1.72 $ 2.12 Diluted earnings per share: $ 0.20 $ 0.63 $ 0.39 $ 1.65 $ 2.00   Weighted average number of shares: Basic 62,215 62,854 63,877 62,926 64,580 Diluted 64,545 65,368 67,138 65,535 68,454   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. Certain modifications to prior year non-GAAP presentation has been made and had no material effect on the results of operations.       Three Months Ended Twelve Months Ended Mar. 29,   Dec. 28,   Mar. 30, Mar. 29,   Mar. 30, 2014 2013 2013 2014 2013 Net Income Reconciliation Q4'14 Q3'14 Q4'13 Q4'14 Q4'13 GAAP Net Income $ 12,602 $ 41,500 $ 26,360 $ 108,111 $ 136,598 Amortization of acquisition intangibles 217 275 - 492 604 Stock based compensation expense 5,545 6,016 5,734 23,074 21,496 International sales reorganization charges - - 442 - 395 Restructuring and other costs, net (26 ) 12 - (598 ) 3,539 Gain on asset sale - - - - (247 ) Patent settlements, net - - - 695 - Provision for income taxes   7,808     10,300     7,041     44,647     59,643   Non-GAAP Net Income $ 26,146   $ 58,103   $ 39,577   $ 176,421   $ 222,028     Earnings Per Share Reconciliation GAAP Diluted earnings per share $ 0.20 $ 0.63 $ 0.39 $ 1.65 $ 2.00 Effect of Amortization of acquisition intangibles - - - 0.01 0.01 Effect of Stock based compensation expense 0.09 0.10 0.09 0.35 0.31 Effect of International sales reorganization charges - - 0.01 - - Effect of Restructuring and other costs, net - - - (0.01 ) 0.05 Effect of Patent settlements, net - - - 0.01 - Effect of Provision for income taxes   0.12     0.16     0.10     0.68     0.87   Non-GAAP Diluted earnings per share $ 0.41   $ 0.89   $ 0.59   $ 2.69   $ 3.24     Operating Income Reconciliation GAAP Operating Income $ 20,060 $ 52,786 $ 33,805 $ 155,016 $ 200,830 GAAP Operating Profit 13 % 24 % 16 % 22 % 25 % Amortization of acquisition intangibles 217 275 - 492 604 Stock compensation expense - COGS 287 332 296 864 751 Stock compensation expense - R&D 2,546 2,834 2,976 10,392 10,550 Stock compensation expense - SG&A 2,712 2,850 2,462 11,818 10,195 International sales reorganization charges - - 442 - 395 Restructuring and other costs, net (26 ) 12 - (598 ) 3,539 Gain on asset sale - - - - (247 ) Patent settlements, net   -     -     -     695     -   Non-GAAP Operating Income $ 25,796   $ 59,089   $ 39,981   $ 178,679   $ 226,617   Non-GAAP Operating Profit 17 % 27 % 19 % 25 % 28 %   Operating Expense Reconciliation GAAP Operating Expenses $ 53,308 $ 51,063 $ 49,809 $ 201,147 $ 194,361 Amortization of acquisition intangibles (217 ) (275 ) - (492 ) (604 ) Stock compensation expense - R&D (2,546 ) (2,834 ) (2,976 ) (10,392 ) (10,550 ) Stock compensation expense - SG&A (2,712 ) (2,850 ) (2,462 ) (11,818 ) (10,195 ) International sales reorganization charges - - (442 ) - (395 ) Restructuring and other costs, net 26 (12 ) - 598 (3,539 ) Gain on asset sale - - - - 247 Patent settlements, net   -     -     -     (695 )   -   Non-GAAP Operating Expenses $ 47,859   $ 45,092   $ 43,929   $ 178,348   $ 169,325             CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED BALANCE SHEET unaudited; in thousands   Mar. 29, Dec. 28, Mar. 30, 2014 2013 2013 ASSETS Current assets Cash and cash equivalents $ 31,850 $ 74,690 $ 66,402 Restricted investments - - - Marketable securities 263,417 215,792 105,235 Accounts receivable, net 63,220 109,535 69,289 Inventories 69,743 69,985 119,300 Deferred tax asset 22,024 33,155 64,937 Other current assets   25,079     25,662     19,371   Total Current Assets 475,333 528,819 444,534   Long-term marketable securities 89,243 37,115 64,910 Property and equipment, net 103,650 102,542 100,623 Intangibles, net 11,999 13,427 4,650 Goodwill 16,367 16,335 6,027 Deferred tax asset 25,065 17,354 16,671 Other assets   3,087     6,848     13,932   Total Assets $ 724,744   $ 722,440   $ 651,347     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 51,932 $ 60,493 $ 60,827 Accrued salaries and benefits 13,388 13,937 16,592 Other accrued liabilities 11,572 12,881 10,704 Deferred income on shipments to distributors   5,631     4,998     4,956   Total Current Liabilities 82,523 92,309 93,079   Other long-term obligations 4,863 5,108 10,094   Stockholders' equity: Capital stock 1,078,878 1,069,113 1,041,834 Accumulated deficit (440,634 ) (443,322 ) (492,741 ) Accumulated other comprehensive loss   (886 )   (768 )   (919 ) Total Stockholders' Equity   637,358     625,023     548,174   Total Liabilities and Stockholders' Equity $ 724,744   $ 722,440   $ 651,347     Prepared in accordance with Generally Accepted Accounting Principles

Cirrus Logic, Inc.Thurman K. Case, 512-851-4125Chief Financial OfficerInvestor.Relations@cirrus.com