Cirrus Logic, Inc. (NASDAQ: CRUS) today posted on its website at
investor.cirrus.com the quarterly Shareholder Letter that contains
the complete financial results for the fourth quarter and full
fiscal year 2024, which ended March 30, 2024, as well as the
company’s current business outlook.
“Cirrus Logic made excellent progress in FY24. During the year,
we introduced a third-generation camera controller, ramped new
products in support of our growing momentum in the laptop market,
and completed development of our next-generation custom boosted
amplifier and first 22-nanometer smart codec, while also making
significant investments in future products and intellectual
property,” said John Forsyth, Cirrus Logic president and chief
executive officer. “Additionally, the company’s disciplined
execution helped deliver a year-over-year increase in non-GAAP
earnings per share. We appreciate the support and trust of our
customers, employees, and shareholders and continue to be excited
about the opportunities we see for growth and product
diversification in the future.”
Reported Financial Results – Fourth Quarter FY24
- Revenue of $371.8 million;
- GAAP and non-GAAP gross margin of 51.8 percent and 51.9
percent;
- GAAP operating expenses of $140.2 million and non-GAAP
operating expenses of $116.5 million; and
- GAAP earnings per share of $0.81 and non-GAAP earnings per
share of $1.24.
Reported Financial Results – Full Fiscal Year 2024
- Revenue of $1.79 billion;
- GAAP and non-GAAP gross margin of 51.2 percent and 51.3
percent;
- GAAP operating expenses of $572.6 million and non-GAAP
operating expenses of $470.4 million; and
- GAAP earnings per share of $4.90 and non-GAAP earnings per
share of $6.59.
A reconciliation of GAAP to non-GAAP financial information is
included in the tables accompanying this press release.
Business Outlook – First Quarter FY25
- Revenue is expected to range between $290 million and $350
million;
- GAAP gross margin is forecasted to be between 49 percent and 51
percent; and
- Combined GAAP R&D and SG&A expenses are anticipated to
range between $142 million and $148 million, including
approximately $22 million in stock-based compensation expense and
$2 million in amortization of acquired intangibles, resulting in a
non-GAAP operating expense range between $118 million and $124
million.
Cirrus Logic will host a live Q&A session at 5 p.m. EDT
today to discuss its financial results and business outlook.
Participants may listen to the conference call on the investor
relations website at 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 (609) 800-9909 or toll-free
at (800) 770-2030 (Access Code: 95424).
About 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.
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, diluted share count, operating income and profit, operating
expenses, gross margin and profit, tax expense, tax expense impact
on earnings per share, effective tax rate, free cash flow, and free
cash flow margin. 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 ability to capitalize on
opportunities for growth and product diversification in the future;
and our estimates for the first quarter fiscal year 2025 revenue,
gross margin, combined research and development and selling,
general and administrative expense levels, stock compensation
expense, amortization of acquired intangibles and
acquisition-related costs. 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; 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; recent significant
increases in inflation in the U.S and overseas; the level and
timing of orders and shipments during the first quarter of fiscal
year 2025, 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 25, 2023 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
(in thousands, except per
share data; unaudited)
Three Months Ended
Twelve Months Ended
Mar. 30,
Dec. 30,
Mar. 25,
Mar. 30,
Mar. 25,
2024
2023
2023
2024
2023
Q4'24
Q3'24
Q4'23
Q4'24
Q4'23
Audio
$
226,681
$
378,597
$
232,402
$
1,083,939
$
1,172,007
High-Performance Mixed-Signal
145,146
240,387
140,420
704,951
725,610
Net sales
371,827
618,984
372,822
1,788,890
1,897,617
Cost of sales
179,202
301,520
186,468
872,818
940,638
Gross profit
192,625
317,464
186,354
916,072
956,979
Gross margin
51.8
%
51.3
%
50.0
%
51.2
%
50.4
%
Research and development
103,383
112,672
115,162
426,475
458,412
Selling, general and administrative
36,866
37,604
37,642
144,172
153,144
Restructuring
—
(360
)
10,632
1,959
10,632
Intangibles impairment
—
—
85,760
—
85,760
Total operating expenses
140,249
149,916
249,196
572,606
707,948
Income (loss) from operations
52,376
167,548
(62,842
)
343,466
249,031
Interest income (expense)
7,360
4,889
4,720
20,578
9,087
Other income (expense)
(78
)
(337
)
(464
)
(108
)
(3,379
)
Income (loss) before income
taxes
59,658
172,100
(58,586
)
363,936
254,739
Provision (benefit) for income taxes
14,816
33,377
(4,917
)
89,364
78,036
Net income (loss)
$
44,842
$
138,723
$
(53,669
)
$
274,572
$
176,703
Basic earnings (loss) per share
$
0.83
$
2.57
$
(0.97
)
$
5.06
$
3.18
Diluted earnings (loss) per share:
$
0.81
$
2.50
$
(0.97
)
$
4.90
$
3.09
Weighted average number of shares:
Basic
53,739
54,016
55,219
54,290
55,614
Diluted
55,559
55,592
55,219
56,021
57,226
Prepared in accordance with
Generally Accepted Accounting Principles
RECONCILIATION BETWEEN GAAP
AND NON-GAAP FINANCIAL INFORMATION
(in thousands, except per
share data; unaudited)
(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
Twelve Months Ended
Mar. 30,
Dec. 30,
Mar. 25,
Mar. 30,
Mar. 25,
2024
2023
2023
2024
2023
Net Income (Loss) Reconciliation
Q4'24
Q3'24
Q4'23
Q4'24
Q4'23
GAAP Net Income (Loss)
$
44,842
$
138,723
$
(53,669
)
$
274,572
$
176,703
Amortization of acquisition
intangibles
1,973
1,972
7,657
8,285
32,086
Stock-based compensation expense
22,158
23,067
22,533
89,271
81,641
Restructuring
—
(360
)
10,632
1,959
10,632
Intangibles impairment
—
—
85,760
—
85,760
Acquisition-related costs
—
—
3,166
4,105
12,670
Investment write off
—
—
—
—
2,746
Adjustment to income taxes
75
(2,769
)
(23,461
)
(8,926
)
(34,832
)
Non-GAAP Net Income
$
69,048
$
160,633
$
52,618
$
369,266
$
367,406
Earnings (Loss) Per Share
Reconciliation
GAAP Diluted earnings (loss) per
share
$
0.81
$
2.50
$
(0.97
)
$
4.90
$
3.09
Effect of Amortization of acquisition
intangibles
0.03
0.04
0.14
0.15
0.56
Effect of Stock-based compensation
expense
0.40
0.41
0.40
1.59
1.43
Effect of Restructuring
—
(0.01
)
0.19
0.04
0.18
Effect of Intangibles impairment
—
—
1.51
—
1.50
Effect of Acquisition-related costs
—
—
0.06
0.07
0.22
Effect of Investment write off
—
—
—
—
0.05
Effect of Adjustment to income taxes
—
(0.05
)
(0.41
)
(0.16
)
(0.61
)
Non-GAAP Diluted earnings per
share
$
1.24
$
2.89
$
0.92
$
6.59
$
6.42
Diluted Shares Reconciliation
GAAP Diluted shares
55,559
55,592
55,219
56,021
57,226
Effect of weighted dilutive shares
—
—
1,821
—
—
Non-GAAP Diluted shares
55,559
55,592
57,040
56,021
57,226
Operating Income (Loss) Reconciliation
GAAP Operating Income (Loss)
$
52,376
$
167,548
$
(62,842
)
$
343,466
$
249,031
GAAP Operating Profit (Loss)
14.1
%
27.1
%
(16.9
)%
19.2
%
13.1
%
Amortization of acquisition
intangibles
1,973
1,972
7,657
8,285
32,086
Stock-based compensation expense -
COGS
362
395
372
1,403
1,270
Stock-based compensation expense -
R&D
15,483
16,771
15,782
63,678
57,312
Stock-based compensation expense -
SG&A
6,313
5,901
6,379
24,190
23,059
Restructuring
—
(360
)
10,632
1,959
10,632
Intangibles impairment
—
—
85,760
—
85,760
Acquisition-related costs
—
—
3,166
4,105
12,670
Non-GAAP Operating Income
$
76,507
$
192,227
$
66,906
$
447,086
$
471,820
Non-GAAP Operating Profit
20.6
%
31.1
%
17.9
%
25.0
%
24.9
%
Operating Expense Reconciliation
GAAP Operating Expenses
$
140,249
$
149,916
$
249,196
$
572,606
$
707,948
Amortization of acquisition
intangibles
(1,973
)
(1,972
)
(7,657
)
(8,285
)
(32,086
)
Stock-based compensation expense -
R&D
(15,483
)
(16,771
)
(15,782
)
(63,678
)
(57,312
)
Stock-based compensation expense -
SG&A
(6,313
)
(5,901
)
(6,379
)
(24,190
)
(23,059
)
Restructuring
—
360
(10,632
)
(1,959
)
(10,632
)
Intangibles impairment
—
—
(85,760
)
—
(85,760
)
Acquisition-related costs
—
—
(3,166
)
(4,105
)
(12,670
)
Non-GAAP Operating Expenses
$
116,480
$
125,632
$
119,820
$
470,389
$
486,429
Gross Margin/Profit Reconciliation
GAAP Gross Profit
$
192,625
$
317,464
$
186,354
$
916,072
$
956,979
GAAP Gross Margin
51.8
%
51.3
%
50.0
%
51.2
%
50.4
%
Stock-based compensation expense -
COGS
362
395
372
1,403
1,270
Non-GAAP Gross Profit
$
192,987
$
317,859
$
186,726
$
917,475
$
958,249
Non-GAAP Gross Margin
51.9
%
51.4
%
50.1
%
51.3
%
50.5
%
Three Months Ended
Twelve Months Ended
Mar. 30,
Dec. 30,
Mar. 25,
Mar. 30,
Mar. 25,
2024
2023
2023
2024
2023
Effective Tax Rate Reconciliation
Q4'24
Q3'24
Q4'23
Q4'24
Q4'23
GAAP Tax Expense (Benefit)
$
14,816
$
33,377
$
(4,917
)
$
89,364
$
78,036
GAAP Effective Tax Rate
24.8
%
19.4
%
8.4
%
24.6
%
30.6
%
Adjustments to income taxes
(75
)
2,769
23,461
8,926
34,832
Non-GAAP Tax Expense
$
14,741
$
36,146
$
18,544
$
98,290
$
112,868
Non-GAAP Effective Tax Rate
17.6
%
18.4
%
26.1
%
21.0
%
23.5
%
Tax Impact to EPS Reconciliation
GAAP Tax Expense (Benefit)
$
0.27
$
0.60
$
(0.09
)
$
1.60
$
1.36
Adjustments to income taxes
—
0.05
0.41
0.16
0.61
Non-GAAP Tax Expense
$
0.27
$
0.65
$
0.32
$
1.76
$
1.97
CONSOLIDATED CONDENSED BALANCE
SHEET
(in thousands;
unaudited)
Mar. 30,
Dec. 30,
Mar. 25,
2024
2023
2023
ASSETS
Current assets
Cash and cash equivalents
$
502,764
$
483,931
$
445,784
Marketable securities
23,778
32,842
34,978
Accounts receivable, net
162,478
217,269
150,473
Inventories
227,248
256,675
233,450
Prepaid wafers
86,679
84,854
60,638
Other current assets
103,245
109,814
92,533
Total current Assets
1,106,192
1,185,385
1,017,856
Long-term marketable securities
173,374
70,260
36,509
Right-of-use lease assets
138,288
140,993
128,145
Property and equipment, net
170,175
167,579
162,972
Intangibles, net
29,578
31,677
38,876
Goodwill
435,936
435,936
435,936
Deferred tax asset
48,649
34,116
35,580
Long-term prepaid wafers
60,750
73,492
134,363
Other assets
68,634
77,675
73,729
Total assets
$
2,231,576
$
2,217,113
$
2,063,966
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
55,545
$
56,231
$
81,462
Accrued salaries and benefits
47,612
44,352
50,606
Lease liability
20,640
19,906
18,442
Acquisition-related liabilities
—
—
21,361
Other accrued liabilities
62,596
58,105
44,469
Total current liabilities
186,393
178,594
216,340
Non-current lease liability
134,576
138,415
122,631
Non-current income taxes
52,013
52,247
59,013
Other long-term liabilities
41,580
47,097
7,700
Total long-term liabilities
228,169
237,759
189,344
Stockholders' equity:
Capital stock
1,760,701
1,735,824
1,670,141
Accumulated earnings (deficit)
58,916
66,633
(9,320
)
Accumulated other comprehensive loss
(2,603
)
(1,697
)
(2,539
)
Total stockholders' equity
1,817,014
1,800,760
1,658,282
Total liabilities and stockholders'
equity
$
2,231,576
$
2,217,113
$
2,063,966
Prepared in accordance with
Generally Accepted Accounting Principles
CONSOLIDATED CONDENSED
STATEMENT OF CASH FLOWS
(in thousands;
unaudited)
Three Months Ended
Mar. 30,
Mar. 25,
2024
2023
Q4'24
Q4'23
Cash flows from operating activities:
Net income (loss)
$
44,842
$
(53,669
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
12,009
18,844
Stock-based compensation expense
22,158
22,533
Deferred income taxes
(14,426
)
(40,943
)
Loss on retirement or write-off of
long-lived assets
2
350
Other non-cash charges
86
85
Restructuring
—
10,632
Intangibles impairment
—
85,760
Net change in operating assets and
liabilities:
Accounts receivable, net
54,791
120,020
Inventories
29,427
(81,024
)
Prepaid wafers
10,917
—
Other assets
6,621
(2,664
)
Accounts payable and other accrued
liabilities
(2,411
)
(32,260
)
Income taxes payable
6,510
(2,564
)
Acquisition-related liabilities
—
3,166
Net cash provided by operating
activities
170,526
48,266
Cash flows from investing activities:
Maturities and sales of available-for-sale
marketable securities
13,614
8,337
Purchases of available-for-sale marketable
securities
(108,174
)
(5,830
)
Purchases of property, equipment and
software
(7,057
)
(11,326
)
Investments in technology
(638
)
(309
)
Net cash used in investing activities
(102,255
)
(9,128
)
Cash flows from financing activities:
Issuance of common stock, net of shares
withheld for taxes
2,719
8,621
Repurchase of stock to satisfy employee
tax withholding obligations
(2,165
)
(1,519
)
Repurchase and retirement of common
stock
(49,992
)
(35,000
)
Net cash used in financing activities
(49,438
)
(27,898
)
Net increase in cash and cash
equivalents
18,833
11,240
Cash and cash equivalents at beginning of
period
483,931
434,544
Cash and cash equivalents at end of
period
$
502,764
$
445,784
Prepared in accordance with
Generally Accepted Accounting Principles
RECONCILIATION BETWEEN GAAP
AND NON-GAAP FINANCIAL INFORMATION
(in thousands;
unaudited)
Free cash flow, a non-GAAP financial
measure, is GAAP cash flow from operations (or cash provided by
operating activities) less capital expenditures. Capital
expenditures include purchases of property, equipment and software
as well as investments in technology, as presented within our GAAP
Consolidated Condensed Statement of Cash Flows. Free cash flow
margin represents free cash flow divided by revenue.
Twelve Months Ended
Three Months Ended
Mar. 30,
Mar. 30,
Dec. 30,
Sep. 23,
Jun. 24,
2024
2024
2023
2023
2023
Q4'24
Q4'24
Q3'24
Q2'24
Q1'24
Net cash provided by operating activities
(GAAP)
$
421,674
$
170,526
$
313,692
$
(22,731
)
$
(39,813
)
Capital expenditures
(38,345
)
(7,695
)
(9,813
)
(8,527
)
(12,310
)
Free Cash Flow (Non-GAAP)
$
383,329
$
162,831
$
303,879
$
(31,258
)
$
(52,123
)
Cash Flow from Operations as a
Percentage of Revenue (GAAP)
24
%
46
%
51
%
(5
)%
(13
)%
Capital Expenditures as a Percentage of
Revenue (GAAP)
2
%
2
%
2
%
2
%
4
%
Free Cash Flow Margin
(Non-GAAP)
21
%
44
%
49
%
(6
)%
(16
)%
RECONCILIATION BETWEEN GAAP
AND NON-GAAP FINANCIAL INFORMATION
(in millions;
unaudited)
(not prepared in accordance
with GAAP)
Q1 FY25
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses
$142 - 148
Stock-based compensation expense
(22)
Amortization of acquisition
intangibles
(2)
Non-GAAP Operating Expenses
$118 - 124
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507635755/en/
Investor Contact: Chelsea Heffernan Vice President,
Investor Relations Cirrus Logic, Inc. (512) 851-4125
Investor@cirrus.com
Cirrus Logic (NASDAQ:CRUS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cirrus Logic (NASDAQ:CRUS)
Historical Stock Chart
From Sep 2023 to Sep 2024