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 first quarter fiscal year 2015, which ended June 28,
2014, as well as the company’s current business outlook.
“We are pleased with our Q1 financial results as we experienced strong
demand for our custom and general market portable audio products across
our customer base,” said Jason Rhode, president and chief executive
officer. “With a robust pipeline of innovative products and the pending
acquisition of Wolfson, we are strengthening the company’s position as a
market leader in audio with a comprehensive product portfolio,
differentiated software capabilities and a top-tier customer base.”
Reported Financial Results – First Quarter FY15
-
Revenue of $152.6 million;
-
Gross margin of 49 percent;
-
GAAP operating expenses of $59.5 million and non-GAAP operating
expenses of $51.6 million; and
-
GAAP diluted earnings per share of $0.16 and non-GAAP diluted earnings
per share of $0.37.
A reconciliation of the non-GAAP charges is included in the tables
accompanying this press release.
Business Outlook – Second Quarter FY15
Guidance for the September quarter excludes any potential financial
contributions or expenses associated with the Wolfson acquisition.
-
Revenue is expected to range between $175 million and $195 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 $58
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: 66089509).
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 second 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 second 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 29, 2014, 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
|
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 29,
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
Q1'15
|
|
Q4'14
|
|
Q1'14
|
Audio products
|
|
|
$
|
141,161
|
|
|
$
|
137,773
|
|
|
$
|
143,666
|
|
Energy products
|
|
|
|
11,404
|
|
|
|
11,886
|
|
|
|
11,459
|
|
Net revenue
|
|
|
|
152,565
|
|
|
|
149,659
|
|
|
|
155,125
|
|
Cost of sales
|
|
|
|
77,190
|
|
|
|
76,291
|
|
|
|
75,627
|
|
Gross Profit
|
|
|
|
75,375
|
|
|
|
73,368
|
|
|
|
79,498
|
|
Gross Margin
|
|
|
|
49.4
|
%
|
|
|
49.0
|
%
|
|
|
51.2
|
%
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
39,777
|
|
|
|
35,511
|
|
|
|
28,530
|
|
Selling, general and administrative
|
|
|
|
19,683
|
|
|
|
17,823
|
|
|
|
19,198
|
|
Restructuring and other costs
|
|
|
|
-
|
|
|
|
(26
|
)
|
|
|
(430
|
)
|
Patent infringement settlements, net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
695
|
|
Total operating expenses
|
|
|
|
59,460
|
|
|
|
53,308
|
|
|
|
47,993
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
15,915
|
|
|
|
20,060
|
|
|
|
31,505
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
|
(467
|
)
|
|
|
267
|
|
|
|
158
|
|
Other income (expense), net
|
|
|
|
501
|
|
|
|
(27
|
)
|
|
|
(17
|
)
|
Income before income taxes
|
|
|
|
15,949
|
|
|
|
20,300
|
|
|
|
31,646
|
|
Provision (benefit) for income taxes
|
|
|
|
5,701
|
|
|
|
7,698
|
|
|
|
11,004
|
|
Net income
|
|
|
$
|
10,248
|
|
|
$
|
12,602
|
|
|
$
|
20,642
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
$
|
0.17
|
|
|
$
|
0.20
|
|
|
$
|
0.33
|
|
Diluted earnings per share:
|
|
|
$
|
0.16
|
|
|
$
|
0.20
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
62,032
|
|
|
|
62,215
|
|
|
|
63,363
|
|
Diluted
|
|
|
|
64,688
|
|
|
|
64,545
|
|
|
|
66,188
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 29,
|
|
|
|
2014
|
|
2014
|
|
2013
|
Net Income Reconciliation
|
|
|
Q1'15
|
|
Q4'14
|
|
Q1'14
|
GAAP Net Income
|
|
|
$
|
10,248
|
|
|
$
|
12,602
|
|
|
$
|
20,642
|
|
Amortization of acquisition intangibles
|
|
|
|
246
|
|
|
|
217
|
|
|
|
-
|
|
Stock based compensation expense
|
|
|
|
5,622
|
|
|
|
5,545
|
|
|
|
5,774
|
|
Provision for litigation expenses and settlements
|
|
|
|
-
|
|
|
|
-
|
|
|
|
695
|
|
Restructuring and other costs, net
|
|
|
|
-
|
|
|
|
(26
|
)
|
|
|
(430
|
)
|
Wolfson acquisition items
|
|
|
|
2,304
|
|
|
|
-
|
|
|
|
-
|
|
Provision (benefit) for income taxes
|
|
|
|
5,226
|
|
|
|
7,808
|
|
|
|
10,161
|
|
Non-GAAP Net Income
|
|
|
$
|
23,646
|
|
|
$
|
26,146
|
|
|
$
|
36,842
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Reconciliation
|
|
|
|
|
|
|
|
GAAP Diluted earnings per share
|
|
|
$
|
0.16
|
|
|
$
|
0.20
|
|
|
$
|
0.31
|
|
Effect of Stock based compensation expense
|
|
|
|
0.09
|
|
|
|
0.09
|
|
|
|
0.09
|
|
Effect of Provision for litigation expenses and settlements
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Effect of Wolfson acquisition items
|
|
|
|
0.04
|
|
|
|
-
|
|
|
|
-
|
|
Effect of Provision (benefit) for income taxes
|
|
|
|
0.08
|
|
|
|
0.12
|
|
|
|
0.15
|
|
Non-GAAP Diluted earnings per share
|
|
|
$
|
0.37
|
|
|
$
|
0.41
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
Operating Income Reconciliation
|
|
|
|
|
|
|
|
GAAP Operating Income
|
|
|
$
|
15,915
|
|
|
$
|
20,060
|
|
|
$
|
31,505
|
|
GAAP Operating Profit
|
|
|
|
10
|
%
|
|
|
13
|
%
|
|
|
20
|
%
|
Amortization of acquisition intangibles
|
|
|
|
246
|
|
|
|
217
|
|
|
|
-
|
|
Stock compensation expense - COGS
|
|
|
|
231
|
|
|
|
287
|
|
|
|
6
|
|
Stock compensation expense - R&D
|
|
|
|
2,543
|
|
|
|
2,546
|
|
|
|
2,854
|
|
Stock compensation expense - SG&A
|
|
|
|
2,848
|
|
|
|
2,712
|
|
|
|
2,914
|
|
Provision for litigation expenses and settlements
|
|
|
|
-
|
|
|
|
-
|
|
|
|
695
|
|
Restructuring and other costs, net
|
|
|
|
-
|
|
|
|
(26
|
)
|
|
|
(430
|
)
|
Wolfson acquisition items
|
|
|
|
2,192
|
|
|
|
-
|
|
|
|
-
|
|
Non-GAAP Operating Income
|
|
|
$
|
23,975
|
|
|
$
|
25,796
|
|
|
$
|
37,544
|
|
Non-GAAP Operating Profit
|
|
|
|
16
|
%
|
|
|
17
|
%
|
|
|
24
|
%
|
|
|
|
|
|
|
|
|
Operating Expense Reconciliation
|
|
|
|
|
|
|
|
GAAP Operating Expenses
|
|
|
$
|
59,460
|
|
|
$
|
53,308
|
|
|
$
|
47,993
|
|
Amortization of acquisition intangibles
|
|
|
|
(246
|
)
|
|
|
(217
|
)
|
|
|
-
|
|
Stock compensation expense - R&D
|
|
|
|
(2,543
|
)
|
|
|
(2,546
|
)
|
|
|
(2,854
|
)
|
Stock compensation expense - SG&A
|
|
|
|
(2,848
|
)
|
|
|
(2,712
|
)
|
|
|
(2,914
|
)
|
Provision for litigation expenses and settlements
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(695
|
)
|
Restructuring and other costs, net
|
|
|
|
-
|
|
|
|
26
|
|
|
|
430
|
|
Wolfson acquisition items
|
|
|
|
(2,192
|
)
|
|
|
-
|
|
|
|
-
|
|
Non-GAAP Operating Expenses
|
|
|
$
|
51,631
|
|
|
$
|
47,859
|
|
|
$
|
41,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIRRUS LOGIC, INC.
|
CONSOLIDATED CONDENSED BALANCE SHEET
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Jun. 28,
|
|
Mar. 29,
|
|
Jun. 29,
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
268,544
|
|
|
$
|
31,850
|
|
|
$
|
67,170
|
|
Restricted investments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Marketable securities
|
|
|
|
75,198
|
|
|
|
263,417
|
|
|
|
165,540
|
|
Accounts receivable, net
|
|
|
|
77,219
|
|
|
|
63,220
|
|
|
|
63,642
|
|
Inventories
|
|
|
|
92,002
|
|
|
|
69,743
|
|
|
|
110,624
|
|
Deferred tax asset
|
|
|
|
19,921
|
|
|
|
22,024
|
|
|
|
54,774
|
|
Other current assets
|
|
|
|
40,469
|
|
|
|
25,079
|
|
|
|
20,810
|
|
Total Current Assets
|
|
|
|
573,353
|
|
|
|
475,333
|
|
|
|
482,560
|
|
|
|
|
|
|
|
|
|
Long-term marketable securities
|
|
|
|
39,952
|
|
|
|
89,243
|
|
|
|
39,408
|
|
Property and equipment, net
|
|
|
|
102,765
|
|
|
|
103,650
|
|
|
|
99,169
|
|
Intangibles, net
|
|
|
|
11,341
|
|
|
|
11,999
|
|
|
|
4,714
|
|
Goodwill
|
|
|
|
16,367
|
|
|
|
16,367
|
|
|
|
6,027
|
|
Deferred tax asset
|
|
|
|
25,034
|
|
|
|
25,065
|
|
|
|
16,732
|
|
Other assets
|
|
|
|
1,007
|
|
|
|
3,087
|
|
|
|
11,289
|
|
Total Assets
|
|
|
$
|
769,819
|
|
|
$
|
724,744
|
|
|
$
|
659,899
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
75,695
|
|
|
$
|
51,932
|
|
|
$
|
47,341
|
|
Accrued salaries and benefits
|
|
|
|
11,598
|
|
|
|
13,388
|
|
|
|
13,476
|
|
Other accrued liabilities
|
|
|
|
14,080
|
|
|
|
11,572
|
|
|
|
9,532
|
|
Deferred income on shipments to distributors
|
|
|
|
7,398
|
|
|
|
5,631
|
|
|
|
4,419
|
|
Total Current Liabilities
|
|
|
|
108,771
|
|
|
|
82,523
|
|
|
|
74,768
|
|
|
|
|
|
|
|
|
|
Other long-term obligations
|
|
|
|
4,039
|
|
|
|
4,863
|
|
|
|
9,706
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Capital stock
|
|
|
|
1,088,493
|
|
|
|
1,078,878
|
|
|
|
1,048,497
|
|
Accumulated deficit
|
|
|
|
(430,663
|
)
|
|
|
(440,634
|
)
|
|
|
(472,180
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(821
|
)
|
|
|
(886
|
)
|
|
|
(892
|
)
|
Total Stockholders' Equity
|
|
|
|
657,009
|
|
|
|
637,358
|
|
|
|
575,425
|
|
Total Liabilities and Stockholders' Equity
|
|
|
$
|
769,819
|
|
|
$
|
724,744
|
|
|
$
|
659,899
|
|
|
|
|
|
|
|
|
|
Prepared in accordance with Generally Accepted Accounting
Principles
|
Copyright Business Wire 2014