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

    


Cirrus Logic Reports Fiscal First Quarter Revenue of $374.0 Million


AUSTIN, Texas – August 6, 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 first quarter of fiscal year 2025, which ended June 29, 2024, as well as the company’s current business outlook.
“Cirrus Logic delivered revenue above the top end of our guidance range in the June quarter driven by stronger-than-expected shipments into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “In addition to these strong results, during the quarter we began ramping production of our custom boosted amplifier and first 22-nanometer smart codec ahead of new smartphone launches that are expected later this year. We also executed against our growth strategy to drive product and end-market diversification as we saw strong design activity in laptops and introduced the latest products in a series of data converters targeting professional audio, consumer, and industrial applications. With a compelling roadmap of products and an outstanding track record of execution, we believe we are well-positioned to grow long-term shareholder value.”

Reported Financial Results – First Quarter FY25
•Revenue of $374.0 million;
•GAAP and non-GAAP gross margin of 50.5 percent and 50.6 percent;
•GAAP operating expenses of $142.1 million and non-GAAP operating expenses of $118.0 million; and
•GAAP earnings per share of $0.76 and non-GAAP earnings per share of $1.12.

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


Business Outlook – Second Quarter FY25
•Revenue is expected to range between $490 million and $550 million;
•GAAP gross margin is forecasted to be between 50 percent and 52 percent; and
•Combined GAAP R&D and SG&A expenses are anticipated to range between $149 million and $155 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 $125 million and $131 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, 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 expectation for new smartphone launches later this year; our belief that we are well-positioned to grow long-term shareholder value; and our estimates for the second quarter fiscal year 2025 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-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, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the second 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 30, 2024 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
Jun. 29,Mar. 30,Jun. 24,
202420242023
Q1'25Q4'24Q1'24
Audio$218,970 $226,681 $195,806 
High-Performance Mixed-Signal155,056 145,146 121,210 
Net sales374,026 371,827 317,016 
Cost of sales185,101 179,202 157,629 
Gross profit188,925 192,625 159,387 
Gross margin50.5 %51.8 %50.3 %
Research and development105,363 103,383 106,215 
Selling, general and administrative36,770 36,866 35,379 
Total operating expenses142,133 140,249 141,594 
Income from operations46,792 52,376 17,793 
Interest income8,202 7,360 4,600 
Other income (expense)1,609 (78)377 
Income before income taxes56,603 59,658 22,770 
Provision for income taxes14,508 14,816 7,170 
Net income $42,095 $44,842 $15,600 
Basic earnings per share$0.79 $0.83 $0.28 
Diluted earnings per share:$0.76 $0.81 $0.28 
Weighted average number of shares:
Basic53,433 53,739 54,862 
Diluted55,665 55,559 56,631 
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
Jun. 29,Mar. 30,Jun. 24,
202420242023
Net Income ReconciliationQ1'25Q4'24Q1'24
GAAP Net Income$42,095 $44,842 $15,600 
Amortization of acquisition intangibles1,972 1,973 2,170 
Stock-based compensation expense21,385 22,158 22,715 
Lease impairment1,019 — — 
Acquisition-related costs— — 3,166 
Adjustment to income taxes(4,105)75 (5,628)
Non-GAAP Net Income$62,366 $69,048 $38,023 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$0.76 $0.81 $0.28 
Effect of Amortization of acquisition intangibles0.03 0.03 0.04 
Effect of Stock-based compensation expense0.38 0.40 0.40 
Effect of Lease impairment0.02 — — 
Effect of Acquisition-related costs— — 0.05 
Effect of Adjustment to income taxes(0.07)— (0.10)
Non-GAAP Diluted earnings per share$1.12 $1.24 $0.67 
Operating Income Reconciliation
GAAP Operating Income$46,792 $52,376 $17,793 
GAAP Operating Profit 12.5 %14.1 %5.6 %
Amortization of acquisition intangibles1,972 1,973 2,170 
Stock-based compensation expense - COGS266 362 285 
Stock-based compensation expense - R&D15,763 15,483 15,952 
Stock-based compensation expense - SG&A5,356 6,313 6,478 
Lease impairment1,019 — — 
Acquisition-related costs— — 3,166 
Non-GAAP Operating Income$71,168 $76,507 $45,844 
Non-GAAP Operating Profit19.0 %20.6 %14.5 %
Operating Expense Reconciliation
GAAP Operating Expenses$142,133 $140,249 $141,594 
Amortization of acquisition intangibles(1,972)(1,973)(2,170)
Stock-based compensation expense - R&D(15,763)(15,483)(15,952)
Stock-based compensation expense - SG&A(5,356)(6,313)(6,478)
Lease impairment1,019 — — 
Acquisition-related costs— — (3,166)
Non-GAAP Operating Expenses$118,023 $116,480 $113,828 
Gross Margin/Profit Reconciliation
GAAP Gross Profit$188,925 $192,625 $159,387 
GAAP Gross Margin50.5 %51.8 %50.3 %
Stock-based compensation expense - COGS266 362 285 
Non-GAAP Gross Profit$189,191 $192,987 $159,672 
Non-GAAP Gross Margin50.6 %51.9 %50.4 %
GAAP Tax Expense$14,508 $14,816 $7,170 
GAAP Effective Tax Rate25.6 %24.8 %31.5 %
Adjustments to income taxes4,105 (75)5,628 
Non-GAAP Tax Expense$18,613 $14,741 $12,798 
Non-GAAP Effective Tax Rate23.0 %17.6 %25.2 %
Tax Impact to EPS Reconciliation
GAAP Tax Expense $0.26 $0.27 $0.13 
Adjustments to income taxes0.07 — 0.10 
Non-GAAP Tax Expense$0.33 $0.27 $0.23 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Jun. 29,Mar. 30,Jun. 24,
202420242023
ASSETS
Current assets
Cash and cash equivalents$491,351 $502,764 $352,346 
Marketable securities25,680 23,778 35,765 
Accounts receivable, net190,079 162,478 186,033 
Inventories232,566 227,248 300,956 
Prepaid wafers84,700 86,679 84,739 
Other current assets77,365 103,245 88,829 
Total current Assets1,101,741 1,106,192 1,048,668 
Long-term marketable securities227,527 173,374 38,029 
Right-of-use lease assets136,295 138,288 125,538 
Property and equipment, net170,953 170,175 167,238 
Intangibles, net27,624 29,578 36,447 
Goodwill435,936 435,936 435,936 
Deferred tax asset54,622 48,649 44,991 
Long-term prepaid wafers50,375 60,750 110,262 
Other assets60,552 68,634 49,483 
 Total assets$2,265,625 $2,231,576 $2,056,592 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$77,562 $55,545 $75,941 
Accrued salaries and benefits41,101 47,612 36,465 
Lease liability22,058 20,640 19,903 
Acquisition-related liabilities— — 24,527 
Other accrued liabilities61,021 62,596 46,018 
Total current liabilities201,742 186,393 202,854 
Non-current lease liability132,016 134,576 125,071 
Non-current income taxes52,704 52,013 59,587 
Other long-term liabilities31,533 41,580 12,286 
Total long-term liabilities216,253 228,169 196,944 
Stockholders' equity:
Capital stock1,792,283 1,760,701 1,693,420 
Accumulated earnings (deficit)58,591 58,916 (33,621)
Accumulated other comprehensive loss(3,244)(2,603)(3,005)
Total stockholders' equity1,847,630 1,817,014 1,656,794 
Total liabilities and stockholders' equity$2,265,625 $2,231,576 $2,056,592 
    
Prepared in accordance with Generally Accepted Accounting Principles


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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
Jun. 29,Jun. 24,
20242023
Q1'25Q1'24
Cash flows from operating activities:
Net income$42,095 $15,600 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization12,359 11,941 
Stock-based compensation expense21,385 22,715 
Deferred income taxes(5,897)(9,411)
Loss on retirement or write-off of long-lived assets— 6 
Other non-cash charges1,104 1,334 
Net change in operating assets and liabilities:
Accounts receivable, net(27,601)(35,560)
Inventories(5,318)(67,506)
Prepaid wafers12,354 — 
Other assets(5,459)8,101 
Accounts payable and other accrued liabilities12,037 (10,278)
Income taxes payable30,102 20,079 
Acquisition-related liabilities— 3,166 
Net cash provided by (used in) operating activities87,161 (39,813)
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities12,646 11,048 
Purchases of available-for-sale marketable securities(69,060)(13,372)
Purchases of property, equipment and software(9,990)(12,310)
Investments in technology(155)— 
Net cash used in investing activities(66,559)(14,634)
Cash flows from financing activities:
Net proceeds from the issuance of common stock
10,196 560 
Repurchase of stock to satisfy employee tax withholding obligations(1,219)(1,047)
Repurchase and retirement of common stock(40,992)(38,504)
Net cash used in financing activities(32,015)(38,991)
Net decrease in cash and cash equivalents(11,413)(93,438)
Cash and cash equivalents at beginning of period502,764 445,784 
Cash and cash equivalents at end of period$491,351 $352,346 
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
Jun. 29,Jun. 29,Mar. 30,Dec. 30,Sep. 23,
20242024202420232023
Q1'25Q1'25Q4'24Q3'24Q2'24
Net cash provided by (used in) operating activities (GAAP)$548,648 $87,161 $170,526 $313,692 $(22,731)
Capital expenditures(36,180)(10,145)(7,695)(9,813)(8,527)
Free Cash Flow (Non-GAAP)$512,468 $77,016 $162,831 $303,879 $(31,258)
Cash Flow from Operations as a Percentage of Revenue (GAAP)30 %23 %46 %51 %(5)%
Capital Expenditures as a Percentage of Revenue (GAAP)2 %3 %2 %2 %2 %
Free Cash Flow Margin (Non-GAAP)28 %21 %44 %49 %(6)%

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
Q2 FY25
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses$149 - 155
Stock-based compensation expense(22)
Amortization of acquisition intangibles(2)
Non-GAAP Operating Expenses$125 - 131
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