Welcome!

News Feed Item

Cirrus Logic Reports Q1 Revenue of $152.6 Million

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 [email protected]. 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

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
"We have several customers now running private clouds. They're not as large as they should be but it's getting there. The adoption challenge has been pretty simple. Look at the world today of virtualization vs cloud," stated Nara Rajagopalan, CEO of Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.