EX-99.1 2 q4fy24pressrelease.htm EX-99.1 Document
Exhibit 99.1
    
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FINANCIAL NEWS

    


Cirrus Logic Reports Fiscal Fourth Quarter Revenue of $371.8 Million and Full Fiscal Year 2024 Revenue of $1.79 Billion


AUSTIN, Texas – May 7, 2024 – 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.

Investor Contact:                            
Chelsea Heffernan
Vice President, Investor Relations
Cirrus Logic, Inc.                            
(512) 851-4125                            
Investor@cirrus.com




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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.
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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,
20242023202320242023
Q4'24Q3'24Q4'23Q4'24Q4'23
Audio$226,681 $378,597 $232,402 $1,083,939 $1,172,007 
High-Performance Mixed-Signal145,146 240,387 140,420 704,951 725,610 
Net sales371,827 618,984 372,822 1,788,890 1,897,617 
Cost of sales179,202 301,520 186,468 872,818 940,638 
Gross profit192,625 317,464 186,354 916,072 956,979 
Gross margin51.8 %51.3 %50.0 %51.2 %50.4 %
Research and development103,383 112,672 115,162 426,475 458,412 
Selling, general and administrative36,866 37,604 37,642 144,172 153,144 
Restructuring— (360)10,632 1,959 10,632 
Intangibles impairment— — 85,760 — 85,760 
Total operating expenses140,249 149,916 249,196 572,606 707,948 
Income (loss) from operations52,376 167,548 (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 taxes59,658 172,100 (58,586)363,936 254,739 
Provision (benefit) for income taxes14,816 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:
Basic53,739 54,016 55,219 54,290 55,614 
Diluted55,559 55,592 55,219 56,021 57,226 
Prepared in accordance with Generally Accepted Accounting Principles

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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,
20242023202320242023
Net Income (Loss) ReconciliationQ4'24Q3'24Q4'23Q4'24Q4'23
GAAP Net Income (Loss)$44,842 $138,723 $(53,669)$274,572 $176,703 
Amortization of acquisition intangibles1,973 1,972 7,657 8,285 32,086 
Stock-based compensation expense22,158 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 taxes75 (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 intangibles0.03 0.04 0.14 0.15 0.56 
Effect of Stock-based compensation expense0.40 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 shares55,559 55,592 55,219 56,021 57,226 
Effect of weighted dilutive shares— — 1,821 — — 
Non-GAAP Diluted shares55,559 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 intangibles1,973 1,972 7,657 8,285 32,086 
Stock-based compensation expense - COGS362 395 372 1,403 1,270 
Stock-based compensation expense - R&D15,483 16,771 15,782 63,678 57,312 
Stock-based compensation expense - SG&A6,313 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 Profit20.6 %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 Margin51.8 %51.3 %50.0 %51.2 %50.4 %
Stock-based compensation expense - COGS362 395 372 1,403 1,270 
Non-GAAP Gross Profit$192,987 $317,859 $186,726 $917,475 $958,249 
Non-GAAP Gross Margin51.9 %51.4 %50.1 %51.3 %50.5 %
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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands, except per share data; unaudited)
(not prepared in accordance with GAAP)
Three Months EndedTwelve Months Ended
Mar. 30,Dec. 30,Mar. 25,Mar. 30,Mar. 25,
20242023202320242023
Effective Tax Rate ReconciliationQ4'24Q3'24Q4'23Q4'24Q4'23
GAAP Tax Expense (Benefit)$14,816 $33,377 $(4,917)$89,364 $78,036 
GAAP Effective Tax Rate24.8 %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 Rate17.6 %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 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Mar. 30,Dec. 30,Mar. 25,
202420232023
ASSETS
Current assets
Cash and cash equivalents$502,764 $483,931 $445,784 
Marketable securities23,778 32,842 34,978 
Accounts receivable, net162,478 217,269 150,473 
Inventories227,248 256,675 233,450 
Prepaid wafers86,679 84,854 60,638 
Other current assets103,245 109,814 92,533 
Total current Assets1,106,192 1,185,385 1,017,856 
Long-term marketable securities173,374 70,260 36,509 
Right-of-use lease assets138,288 140,993 128,145 
Property and equipment, net170,175 167,579 162,972 
Intangibles, net29,578 31,677 38,876 
Goodwill435,936 435,936 435,936 
Deferred tax asset48,649 34,116 35,580 
Long-term prepaid wafers60,750 73,492 134,363 
Other assets68,634 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 benefits47,612 44,352 50,606 
Lease liability20,640 19,906 18,442 
Acquisition-related liabilities— — 21,361 
Other accrued liabilities62,596 58,105 44,469 
Total current liabilities186,393 178,594 216,340 
Non-current lease liability134,576 138,415 122,631 
Non-current income taxes52,013 52,247 59,013 
Other long-term liabilities41,580 47,097 7,700 
Total long-term liabilities228,169 237,759 189,344 
Stockholders' equity:
Capital stock1,760,701 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' equity1,817,014 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


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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
Mar. 30,Mar. 25,
20242023
Q4'24Q4'23
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 amortization12,009 18,844 
Stock-based compensation expense22,158 22,533 
Deferred income taxes(14,426)(40,943)
Loss on retirement or write-off of long-lived assets2 350 
Other non-cash charges86 85 
Restructuring— 10,632 
Intangibles impairment— 85,760 
Net change in operating assets and liabilities:
Accounts receivable, net54,791 120,020 
Inventories29,427 (81,024)
Prepaid wafers10,917 — 
Other assets6,621 (2,664)
Accounts payable and other accrued liabilities(2,411)(32,260)
Income taxes payable6,510 (2,564)
Acquisition-related liabilities— 3,166 
Net cash provided by operating activities170,526 48,266 
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities13,614 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 taxes2,719 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 equivalents18,833 11,240 
Cash and cash equivalents at beginning of period483,931 434,544 
Cash and cash equivalents at end of period$502,764 $445,784 
Prepared in accordance with Generally Accepted Accounting Principles
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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 EndedThree Months Ended
Mar. 30,Mar. 30,Dec. 30,Sep. 23,Jun. 24,
20242024202320232023
Q4'24Q4'24Q3'24Q2'24Q1'24
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)%

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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
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