Content Gains in High-Performance Mixed-Signal
Expected to Fuel Strong Year-Over-Year Revenue Growth in Q2
FY22
Cirrus Logic, Inc. (Nasdaq: CRUS) today posted on its website at
http://investor.cirrus.com the quarterly Shareholder Letter that
contains the complete financial results for the first quarter
fiscal year 2022, which ended June 26, 2021, as well as the
company’s current business outlook.
“In the past quarter, Cirrus Logic accelerated both sales
momentum and execution of our growth strategy. We grew revenue by
14 percent year on year, increased penetration of the Android
market, began shipments with a leading laptop OEM, ramped new
content in anticipation of product launches in the latter half of
the year and advanced the development of a number of new components
that are expected to drive future revenue growth,” said John
Forsyth, Cirrus Logic president and chief executive officer. “The
company’s recent investments in power-related products, including
the acquisition of Lion Semiconductor, are expected to meaningfully
expand our addressable market and continue the exciting progress we
have been making in building new and strategic areas of our
business. With a strong pipeline of audio and high-performance
mixed-signal products ramping in the coming months, we are upbeat
about the next several quarters and continue to anticipate
accelerated revenue growth in FY22.”
Reported Financial Results – First Quarter FY22
- Revenue of $277.3 million;
- GAAP gross margin of 50.5 percent and non-GAAP gross margin of
50.6 percent;
- GAAP operating expenses of $120.8 million and non-GAAP
operating expenses of $103.1 million; and
- GAAP earnings per share of $0.29 and non-GAAP earnings per
share of $0.54.
A reconciliation of GAAP to non-GAAP financial information is
included in the tables accompanying this press release.
Business Outlook – Second Quarter FY22
- Revenue is expected to range between $430 million and $470
million;
- GAAP gross margin is forecasted to be between 50 percent and 52
percent; and
- Combined GAAP R&D and SG&A expenses are anticipated to
range between $135 million and $141 million, including
approximately $17 million in stock-based compensation expense and
$3 million in amortization of acquired intangibles.
The company has entered into a long-term Capacity Reservation
and Wafer Supply Commitment Agreement with GlobalFoundries, a
foundry partner for many of our strategic products. This will
expand our ability to address unprecedented market demand and
provide customers with much-needed supply assurance. Given our
anticipated strong cash generation, we believe this agreement is a
good use of our financial resources: it secures supplier
commitments to capacity expansion in support of our sales growth,
alleviates some of the supply uncertainty currently affecting the
company and its customers, and ensures supplier investment in
additional technologies for future products.
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@cirrus.com. A replay of the webcast can be accessed on the
Cirrus Logic website approximately two hours following its
completion, or by calling (416) 621-4642, or toll-free at (800)
585-8367 (Access Code: 9238026).
Cirrus Logic, Inc.
Cirrus Logic is a leader in low-power, high-precision
mixed-signal processing solutions that create innovative user
experiences for the world’s top mobile and consumer applications.
With headquarters in Austin, Texas, Cirrus Logic is recognized
globally for its award-winning corporate culture. Check us out at
www.cirrus.com.
Cirrus Logic, Cirrus and the Cirrus Logic logo are registered
trademarks of Cirrus Logic, Inc. All other company or product names
noted herein may be trademarks of their respective holders.
Use of non-GAAP Financial Information
To supplement Cirrus Logic's financial statements presented on a
GAAP basis, the company has provided non-GAAP financial
information, including non-GAAP net income, diluted earnings per
share, operating income and profit, operating expenses, gross
margin and profit, tax expense, tax expense impact on earnings per
share, and effective tax rate. 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 statements about the company’s expectations for
accelerated revenue growth in FY22; our ability to develop products
that are expected to drive future revenue growth; our expectation
that the company’s recent investments in power-related products,
including the acquisition of Lion Semiconductor, will meaningfully
expand our addressable market and continue our progress in building
new and strategic areas of our business; our belief that the
Capacity Reservation and Wafer Supply Commitment Agreement with
GlobalFoundries will expand our ability to address unprecedented
market demand and provide customers with much-needed supply
assurance; our ability to secure supplier commitments to capacity
expansion in support of our sales growth and alleviate some of the
supply uncertainty currently affecting the company and its
customers; and our estimates for the second quarter fiscal year
2022 revenue, gross margin, combined research and development and
selling, general and administrative expense levels, stock
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 and readers should not place
undue reliance on such statements. These risks and uncertainties
include, but are not limited to, the following: the effects of the
global COVID-19 outbreak and the measures taken to limit the spread
of COVID-19, including any disruptions to our business that could
result from measures to contain the outbreak that may be taken by
governmental authorities in the jurisdictions in which we and our
supply chain operate; the susceptibility of the markets we address
to economic downturns, including as a result of the COVID-19
outbreak and the actions taken to mitigate the spread of COVID-19;
the risks of doing business internationally, including increased
import/export restrictions and controls (e.g., the effect of the
U.S. Bureau of Industry and Security of the U.S. Department of
Commerce placing Huawei Technologies Co., Ltd. and certain of its
affiliates on the Bureau’s Entity List), imposition of trade
protection measures (e.g., tariffs or taxes), security and health
risks, possible disruptions in transportation networks, and other
economic, social, military and geo-political conditions in the
countries in which we, our customers or our suppliers operate;
recent increased industry-wide capacity constraints that may impact
our ability to meet current customer demand, which could cause an
unanticipated decline in our sales and damage our existing customer
relationships and our ability to establish new customer
relationships; the potential for increased prices due to capacity
constraints in our supply chain, which, if we are unable to
increase our selling price to our customers, could result in lower
revenues and margins that could adversely affect our financial
results; the level of orders and shipments during the second
quarter of fiscal year 2022, customer cancellations of orders, or
the failure to place orders consistent with forecasts, along with
the risk factors listed in our Form 10-K for the year ended March
28, 2021 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 expressly disclaim any
obligation to update or revise any forward-looking statements,
whether as a result of new developments or otherwise.
Summary financial data follows:
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited) (in thousands, except per share data)
Three Months Ended Jun. 26, Mar.
27, Jun. 27,
2021
2021
2020
Q1'22 Q4'21 Q1'21 Audio
$
217,355
$
235,821
$
206,449
High-Performance Mixed-Signal
59,898
57,716
36,124
Net sales
277,253
293,537
242,573
Cost of sales
137,307
145,418
115,101
Gross profit
139,946
148,119
127,472
Gross margin
50.5%
50.5%
52.6%
Research and development
85,696
89,773
78,741
Selling, general and administrative
35,147
33,642
29,704
Restructuring costs
-
-
352
Total operating expenses
120,843
123,415
108,797
Income from operations
19,103
24,704
18,675
Interest income
761
1,064
1,576
Other income (expense)
(242)
2,152
111
Income before income taxes
19,622
27,920
20,362
Provision for income taxes
2,413
2,639
2,153
Net income
$
17,209
$
25,281
$
18,209
Basic earnings per share:
$
0.30
$
0.44
$
0.31
Diluted earnings per share:
$
0.29
$
0.42
$
0.30
Weighted average number of shares: Basic
57,582
57,899
58,313
Diluted
59,513
59,922
60,280
Prepared in accordance with Generally Accepted Accounting
Principles
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. 26, Mar. 27, Jun.
27,
2021
2021
2020
Net Income Reconciliation
Q1'22 Q4'21
Q1'21 GAAP Net Income
$
17,209
$
25,281
$
18,209
Amortization of acquisition intangibles
2,998
2,998
2,998
Stock-based compensation expense
14,984
14,693
13,306
Restructuring costs
-
-
352
Adjustment to income taxes
(2,949)
(3,251)
(2,982)
Non-GAAP Net Income
$
32,242
$
39,721
$
31,883
Earnings Per Share Reconciliation
GAAP Diluted earnings per share
$
0.29
$
0.42
$
0.30
Effect of Amortization of acquisition intangibles
0.05
0.05
0.05
Effect of Stock-based compensation expense
0.25
0.24
0.22
Effect of Restructuring costs
-
-
0.01
Effect of Adjustment to income taxes
(0.05)
(0.05)
(0.05)
Non-GAAP Diluted earnings per share
$
0.54
$
0.66
$
0.53
Operating Income Reconciliation
GAAP
Operating Income
$
19,103
$
24,704
$
18,675
GAAP Operating Profit
6.9%
8.4%
7.7%
Amortization of acquisition intangibles
2,998
2,998
2,998
Stock-based compensation expense - COGS
246
260
207
Stock-based compensation expense - R&D
9,612
10,069
8,653
Stock-based compensation expense - SG&A
5,126
4,364
4,446
Restructuring costs
-
-
352
Non-GAAP Operating Income
$
37,085
$
42,395
$
35,331
Non-GAAP Operating Profit
13.4%
14.4%
14.6%
Operating Expense Reconciliation
GAAP Operating Expenses
$
120,843
$
123,415
$
108,797
Amortization of acquisition intangibles
(2,998)
(2,998)
(2,998)
Stock-based compensation expense - R&D
(9,612)
(10,069)
(8,653)
Stock-based compensation expense - SG&A
(5,126)
(4,364)
(4,446)
Restructuring costs
-
-
(352)
Non-GAAP Operating Expenses
$
103,107
$
105,984
$
92,348
Gross Margin/Profit Reconciliation
GAAP Gross Profit
$
139,946
$
148,119
$
127,472
GAAP Gross Margin
50.5%
50.5%
52.6%
Stock-based compensation expense - COGS
246
260
207
Non-GAAP Gross Profit
$
140,192
$
148,379
$
127,679
Non-GAAP Gross Margin
50.6%
50.5%
52.6%
Effective Tax Rate Reconciliation
GAAP Tax Expense
$
2,413
$
2,639
$
2,153
GAAP Effective Tax Rate
12.3%
9.5%
10.6%
Adjustments to income taxes
2,949
3,251
2,982
Non-GAAP Tax Expense
$
5,362
$
5,890
$
5,135
Non-GAAP Effective Tax Rate
14.3%
12.9%
13.9%
Tax Impact to EPS Reconciliation
GAAP Tax Expense
$
0.04
$
0.04
$
0.04
Adjustments to income taxes
0.05
0.05
0.05
Non-GAAP Tax Expense
$
0.09
$
0.09
$
0.09
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands Jun. 26, Mar.
27, Jun. 27,
2021
2021
2020
ASSETS Current assets Cash and cash equivalents
$
385,127
$
442,164
$
285,922
Marketable securities
60,503
55,697
29,943
Accounts receivable, net
136,534
108,712
136,539
Inventories
192,722
173,263
199,332
Other current assets
64,458
62,683
38,231
Total current Assets
839,344
842,519
689,967
Long-term marketable securities
311,643
312,759
290,186
Right-of-use lease assets
131,446
133,548
139,492
Property and equipment, net
158,451
154,942
154,286
Intangibles, net
18,429
22,031
31,185
Goodwill
287,518
287,518
287,399
Deferred tax asset
19,482
9,977
6,970
Other assets
47,693
67,320
44,554
Total assets
$
1,814,006
$
1,830,614
$
1,644,039
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts
payable
$
95,232
$
102,744
$
95,523
Accrued salaries and benefits
37,220
54,849
28,768
Lease liability
14,662
14,573
13,887
Other accrued liabilities
39,387
41,444
24,866
Total current liabilities
186,501
213,610
163,044
Non-current lease liability
126,442
127,883
129,627
Non-current income taxes
64,245
64,020
69,130
Other long-term liabilities
30,087
36,096
9,949
Stockholders' equity: Capital stock
1,514,549
1,498,819
1,451,297
Accumulated deficit
(109,754)
(112,689)
(184,049)
Accumulated other comprehensive income
1,936
2,875
5,041
Total stockholders' equity
1,406,731
1,389,005
1,272,289
Total liabilities and stockholders' equity
$
1,814,006
$
1,830,614
$
1,644,039
Prepared in accordance with Generally
Accepted Accounting Principles
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210728005904/en/
Investor Contact: Thurman K. Case Chief Financial Officer
Cirrus Logic, Inc. (512) 851-4125 Investor@cirrus.com
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