High-Performance Mixed-Signal Content Gains
Drove 34 Percent Year-Over-Year Revenue Growth
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 second quarter
fiscal year 2022, which ended Sept. 25, 2021, as well as the
company’s current business outlook.
“Cirrus Logic reported record revenue and EPS for the September
quarter and delivered solid year-over-year operating profit
growth,” said John Forsyth, Cirrus Logic president and chief
executive officer. “During the quarter we made great progress on
the company’s strategy to diversify beyond audio. In our
high-performance mixed-signal product line, we brought our new
power conversion and control IC to market, increased the attach
rate of our camera controllers in smartphones and sampled new
fast-charging products to our general market customers. This
represents a significant expansion of Cirrus Logic’s technology and
product mix, with our high-performance mixed-signal business
delivering 30 percent of total revenue in the first half fiscal
year 2022, up 117 percent year over year. We continue to be excited
about the opportunities these new technologies offer for further
growth and diversification in the future.”
Reported Financial Results – Second Quarter FY22
- Revenue of $465.9 million;
- GAAP gross margin of 50.5 percent and non-GAAP gross margin of
51.3 percent;
- GAAP operating expenses of $140.2 million and non-GAAP
operating expenses of $114.5 million; and
- GAAP earnings per share of $1.43 and non-GAAP earnings per
share of $1.82.
A reconciliation of GAAP to non-GAAP financial information is
included in the tables accompanying this press release.
Business Outlook – Third Quarter FY22
- Revenue is expected to range between $490 million and $530
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 $141 million and $147 million, including
approximately $19 million in stock-based compensation expense, $9
million in amortization of acquired intangibles and $3 million in
acquisition-related costs.
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: 3476036).
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 our opportunities for further growth
and diversification in the future, and our estimates for the third
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 third 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
Six Months Ended
Sep. 25,
Jun. 26,
Sep. 26,
Sep. 25,
Sep. 26,
2021
2021
2020
2021
2020
Q2'22
Q1'22
Q2'21
Q2'22
Q2'21
Audio
$
300,775
$
217,355
$
279,905
$
518,130
$
486,354
High-Performance Mixed-Signal
165,111
59,898
67,420
225,009
103,544
Net sales
465,886
277,253
347,325
743,139
589,898
Cost of sales
230,442
137,307
167,115
367,749
282,216
Gross profit
235,444
139,946
180,210
375,390
307,682
Gross margin
50.5
%
50.5
%
51.9
%
50.5
%
52.2
%
Research and development
102,116
85,696
84,810
187,812
163,551
Selling, general and administrative
38,132
35,147
31,247
73,279
60,951
Restructuring costs
-
-
-
-
352
Total operating expenses
140,248
120,843
116,057
261,091
224,854
Income from operations
95,196
19,103
64,153
114,299
82,828
Interest income
35
761
1,378
796
2,954
Other income (expense)
1,859
(242
)
784
1,617
895
Income before income taxes
97,090
19,622
66,315
116,712
86,677
Provision for income taxes
11,994
2,413
6,829
14,407
8,982
Net income
$
85,096
$
17,209
$
59,486
$
102,305
$
77,695
Basic earnings per share:
$
1.48
$
0.30
$
1.02
$
1.78
$
1.33
Diluted earnings per share:
$
1.43
$
0.29
$
0.99
$
1.72
$
1.29
Weighted average number of shares: Basic
57,364
57,582
58,191
57,473
58,252
Diluted
59,451
59,513
60,127
59,485
60,203
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
Six Months Ended
Sep. 25,
Jun. 26,
Sep. 26,
Sep. 25,
Sep. 26,
2021
2021
2020
2021
2020
Net Income Reconciliation
Q2'22 Q1'22 Q2'21
Q2'22 Q2'21 GAAP Net Income
$
85,096
$
17,209
$
59,486
$
102,305
$
77,695
Amortization of acquisition intangibles
7,054
2,998
2,998
10,052
5,996
Stock-based compensation expense
16,551
14,984
15,476
31,535
28,782
Restructuring costs
-
-
-
-
352
Acquisition-related costs
5,834
-
-
5,834
-
Adjustment to income taxes
(6,045
)
(2,949
)
(2,293
)
(8,994
)
(5,275
)
Non-GAAP Net Income
$
108,490
$
32,242
$
75,667
$
140,732
$
107,550
Earnings Per Share Reconciliation
GAAP Diluted earnings
per share
$
1.43
$
0.29
$
0.99
$
1.72
$
1.29
Effect of Amortization of acquisition intangibles
0.12
0.05
0.05
0.17
0.10
Effect of Stock-based compensation expense
0.28
0.25
0.26
0.53
0.48
Effect of Restructuring costs
-
-
-
-
0.01
Effect of Acquisition-related costs
0.09
-
-
0.09
-
Effect of Adjustment to income taxes
(0.10
)
(0.05
)
(0.04
)
(0.14
)
(0.09
)
Non-GAAP Diluted earnings per share
$
1.82
$
0.54
$
1.26
$
2.37
$
1.79
Operating Income Reconciliation
GAAP Operating Income
$
95,196
$
19,103
$
64,153
$
114,299
$
82,828
GAAP Operating Profit
20.4
%
6.9
%
18.5
%
15.4
%
14.0
%
Amortization of acquisition intangibles
7,054
2,998
2,998
10,052
5,996
Stock-based compensation expense - COGS
272
246
197
518
404
Stock-based compensation expense - R&D
10,496
9,612
9,235
20,108
17,888
Stock-based compensation expense - SG&A
5,783
5,126
6,044
10,909
10,490
Restructuring costs
-
-
-
-
352
Acquisition-related costs
5,834
-
-
5,834
-
Non-GAAP Operating Income
$
124,635
$
37,085
$
82,627
$
161,720
$
117,958
Non-GAAP Operating Profit
26.8
%
13.4
%
23.8
%
21.8
%
20.0
%
Operating Expense Reconciliation
GAAP Operating
Expenses
$
140,248
$
120,843
$
116,057
$
261,091
$
224,854
Amortization of acquisition intangibles
(7,054
)
(2,998
)
(2,998
)
(10,052
)
(5,996
)
Stock-based compensation expense - R&D
(10,496
)
(9,612
)
(9,235
)
(20,108
)
(17,888
)
Stock-based compensation expense - SG&A
(5,783
)
(5,126
)
(6,044
)
(10,909
)
(10,490
)
Restructuring costs
-
-
-
-
(352
)
Acquisition-related costs
(2,373
)
-
-
(2,373
)
-
Non-GAAP Operating Expenses
$
114,542
$
103,107
$
97,780
$
217,649
$
190,128
Gross Margin/Profit Reconciliation
GAAP Gross Profit
$
235,444
$
139,946
$
180,210
$
375,390
$
307,682
GAAP Gross Margin
50.5
%
50.5
%
51.9
%
50.5
%
52.2
%
Acquisition-related costs
3,461
-
-
3,461
-
Stock-based compensation expense - COGS
272
246
197
518
404
Non-GAAP Gross Profit
$
239,177
$
140,192
$
180,407
$
379,369
$
308,086
Non-GAAP Gross Margin
51.3
%
50.6
%
51.9
%
51.0
%
52.2
%
Effective Tax Rate Reconciliation
GAAP Tax Expense
$
11,994
$
2,413
$
6,829
$
14,407
$
8,982
GAAP Effective Tax Rate
12.4
%
12.3
%
10.3
%
12.3
%
10.4
%
Adjustments to income taxes
6,045
2,949
2,293
8,994
5,275
Non-GAAP Tax Expense
$
18,039
$
5,362
$
9,122
$
23,401
$
14,257
Non-GAAP Effective Tax Rate
14.3
%
14.3
%
10.8
%
14.3
%
11.7
%
Tax Impact to EPS Reconciliation
GAAP Tax Expense
$
0.20
$
0.04
$
0.11
$
0.24
$
0.15
Adjustments to income taxes
0.10
0.05
0.04
0.14
0.09
Non-GAAP Tax Expense
$
0.30
$
0.09
$
0.15
$
0.38
$
0.24
CONSOLIDATED CONDENSED BALANCE SHEET unaudited; in
thousands
Sep. 25,
Mar. 27,
Sep. 26,
2021
2021
2020
ASSETS Current assets Cash and cash equivalents
$
386,741
$
442,164
$
247,536
Marketable securities
8,152
55,697
36,641
Accounts receivable, net
280,967
108,712
181,496
Inventories
188,360
173,263
209,050
Other current assets
84,836
62,683
34,508
Total current Assets
949,056
842,519
709,231
Long-term marketable securities
67,726
312,759
328,255
Right-of-use lease assets
129,298
133,548
137,045
Property and equipment, net
159,480
154,942
153,640
Intangibles, net
174,852
22,031
27,898
Goodwill
437,783
287,518
287,673
Deferred tax asset
10,073
9,977
7,899
Long-term prepaid wafers
195,000
-
-
Other assets
102,892
67,320
48,223
Total assets
$
2,226,160
$
1,830,614
$
1,699,864
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities
Accounts payable
$
386,699
$
102,744
$
99,105
Accrued salaries and benefits
54,919
54,849
41,707
Lease liability
14,359
14,573
13,994
Other accrued liabilities
44,404
41,444
23,237
Total current liabilities
500,381
213,610
178,043
Non-current lease liability
122,815
127,883
128,570
Non-current income taxes
79,727
64,020
66,503
Long-term acquisition-related liabilities
33,329
-
-
Other long-term liabilities
21,818
36,096
9,917
Stockholders' equity: Capital stock
1,533,557
1,498,819
1,466,978
Accumulated deficit
(65,672)
(112,689)
(155,260)
Accumulated other comprehensive income
205
2,875
5,113
Total stockholders' equity
1,468,090
1,389,005
1,316,831
Total liabilities and stockholders' equity
$
2,226,160
$
1,830,614
$
1,699,864
Prepared in accordance with Generally Accepted Accounting
Principles
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211101005296/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 Sep 2024 to Oct 2024
Cirrus Logic (NASDAQ:CRUS)
Historical Stock Chart
From Oct 2023 to Oct 2024