Cirrus Logic (CRUS)

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$CRUS - Press Release: Cirrus Logic Reports September Quarter Revenue Up 23 Percent Sequentially to $190.7 Million

4:00 PM ET 10/29/13 | Dow Jones

Cirrus Logic Reports September Quarter Revenue Up 23 Percent Sequentially to $190.7 Million Delivers Strong Sequential Earnings Per Share and Operating Profit Growth

AUSTIN, Texas--(BUSINESS WIRE)--October 29, 2013--

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 second quarter fiscal year 2014, which ended Sept. 28, as well as the company's current business outlook.

"Q2 was another great quarter for Cirrus Logic as portable audio continued to be a key driver of our success and we made significant progress on our strategic initiatives," said Jason Rhode, president and chief executive officer. "We are especially pleased with the addition of Acoustic Technologies to the Cirrus Logic team as they are expected to accelerate our progress toward our vision of being the preferred supplier of signal processing components."

Reported Financial Results -- Second Quarter FY14

-- Revenue of $190.7 million;

-- Gross margin of 52 percent;

-- GAAP operating expenses of $48.8 million and non-GAAP operating expenses

of $43.4 million; and

-- GAAP diluted earnings per share of $0.50 and non-GAAP diluted earnings

per share of $0.84.

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

Business Outlook -- Third Quarter FY14

-- Revenue is expected to range between $200 million and $220 million;

-- Gross margin is expected to be between 45 percent and 47 percent; and

-- Combined R&D and SG&A expenses are expected to range between $50 million

and $54 million, which includes approximately $7 million in share-based

compensation and acquisition related items.

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 [e-mail]. A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion, or by calling [phone], or toll-free at [phone] (Access Code: 76914741).

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 third quarter fiscal year 2014 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense and acquisition related items. 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 third 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 Six Months Ended

---------------------------------------- --------------------------

Sep. 28, Jun. 29, Sep. 29, Sep. 28, Sep. 29,

2013 2013 2012 2013 2012

------------ ------------ ------------ ------------ ------------

Q2'14 Q1'14 Q2'13 Q2'14 Q2'13

------------ ------------ ------------ ------------ ------------

Audio products $179,912 $143,666 $177,915 $323,578 $258,662

Energy products 10,759 11,459 15,859 22,218 34,118

------- ------- ------- ------- -------

Net revenue 190,671 155,125 193,774 345,796 292,780

------- ------- ------- ------- -------

Cost of sales 91,223 75,627 93,687 166,850 139,253

------- ------- ------- ------- -------

Gross Profit 99,448 79,498 100,087 178,946 153,527

Gross Margin 52.2% 51.2% 51.7% 51.7% 52.4%

Research and

development 29,722 28,530 29,468 58,252 54,378

Selling,

general and

administrative 19,215 19,198 20,194 38,413 38,253

Restructuring

and other

costs (154) (430) - (584) -

Patent

settlements,

net - 695 - 695 -

------- ------- ------- ------- -------

Total

operating

expenses 48,783 47,993 49,662 96,776 92,631

------- ------- ------- ------- -------

Operating income 50,665 31,505 50,425 82,170 60,896

Interest income,

net 201 158 131 359 258

Other expense,

net (38) (17) (40) (55) (63)

------- ------- ------- ------- -------

Income before

income taxes 50,828 31,646 50,516 82,474 61,091

Provision for

income taxes 17,461 11,004 15,067 28,465 18,715

------- ------- ------- ------- -------

Net income $ 33,367 $ 20,642 $ 35,449 $ 54,009 $ 42,376

======= ======= ======= ======= =======

Basic earnings

per share: $ 0.53 $ 0.33 $ 0.55 $ 0.85 $ 0.65

Diluted earnings

per share: $ 0.50 $ 0.31 $ 0.51 $ 0.82 $ 0.61

Weighted average

number of

shares:

Basic 63,217 63,363 64,924 63,329 64,697

Diluted 66,125 66,188 69,207 66,203 68,920





CIRRUS LOGIC, INC.

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION

(unaudited, in thousands, except per share data)

(not prepared in accordance with GAAP)



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