10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 25, 2011

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                      to                     

Commission File Number 0-17795

CIRRUS LOGIC, INC.

DELAWARE	2901 Via Fortuna, Austin, TX 78746	77-0024818
(State of incorporation)		(I.R.S. ID)

Registrant’s telephone number, including area code:
(512) 851-4000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. YES þ NO o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO þ

The number of shares of the registrant’s common stock, $0.001 par value, outstanding as of July 20, 2011 was 65,201,100.

CIRRUS LOGIC, INC.

FORM 10-Q QUARTERLY REPORT

QUARTERLY PERIOD ENDED JUNE 25, 2011

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets — June 25, 2011 (unaudited) and March 26, 2011	3
Consolidated Condensed Statements of Operations (unaudited) — Three Months Ended June 25, 2011 and June 26, 2010	4
Consolidated Condensed Statements of Cash Flows (unaudited) — Three Months Ended June 25, 2011 and June 26, 2010	5
Notes to the Consolidated Condensed Financial Statements (unaudited)	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3. Quantitative and Qualitative Disclosures about Market Risk	17
Item 4. Controls and Procedures	17
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	17
Item 1A. Risk Factors	17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 6. Exhibits	19
Signature	20
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

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Part I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CIRRUS LOGIC, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

	June 25,			March 26,
	2011			2011
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	41,490		$	37,039
Restricted investments		5,755			5,786
Marketable securities		107,016			159,528
Accounts receivable, net		41,967			39,098
Inventories		46,851			40,497
Deferred tax assets		30,800			30,797
Other current assets		8,042			6,725
Total current assets		281,921			319,470
Long-term marketable securities		1,334			12,702
Property and equipment, net		42,465			34,563
Goodwill and intangibles, net		25,532			26,152
Deferred tax assets		97,152			102,136
Other assets		8,566			1,598
Total assets	$	456,970		$	496,621
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	31,063		$	27,639
Accrued salaries and benefits		8,120			12,402
Other accrued liabilities		7,505			5,169
Deferred income		9,745			6,844
Total current liabilities		56,433			52,054
Long-term obligations		6,666			6,188
Stockholders’ equity:
Capital stock		994,746			991,947
Accumulated deficit		(600,126	)		(552,814	)
Accumulated other comprehensive loss		(749	)		(754	)
Total stockholders’ equity		393,871			438,379
Total liabilities and stockholders’ equity	$	456,970		$	496,621

The accompanying notes are an integral part of these consolidated condensed financial statements.

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CIRRUS LOGIC, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts; unaudited)

	Three Months Ended
	June 25,			June 26,
	2011			2010
Net sales	$	92,242		$	81,915
Cost of sales		44,533			35,180
Gross margin		47,709			46,735
Operating expenses:
Research and development		18,767			15,092
Selling, general and administrative		14,606			14,011
Provision for litigation expenses and settlements		—			135
Total operating expenses		33,373			29,238
Income from operations		14,336			17,497
Interest income, net		154			228
Other income (expense), net		(17	)		32
Income before income taxes		14,473			17,757
Provision for income taxes		5,295			155
Net income	$	9,178		$	17,602
Basic income per share:	$	0.14		$	0.26
Diluted income per share:	$	0.13		$	0.25
Basic weighted average common shares outstanding:		67,099			66,639
Diluted weighted average common shares outstanding:		70,445			70,755

The accompanying notes are an integral part of these consolidated condensed financial statements.

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CIRRUS LOGIC, INC.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)

	Three Months Ended
	June 25,			June 26,
	2011			2010
Cash flows from operating activities:
Net income	$	9,178		$	17,602
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,262			1,921
Stock compensation expense		2,442			1,356
Deferred income taxes		4,981			—
Loss on retirement or writeoff of long-lived assets		2			53
Other non-cash charges		—			7
Net change in operating assets and liabilities:
Accounts receivable, net		(2,869	)		(10,573	)
Inventories		(6,354	)		(7,019	)
Other assets		(2,794	)		(517	)
Accounts payable and other accrued liabilities		675			6,946
Deferred income		2,901			2,073
Income taxes payable		193			54
Net cash provided by operating activities		10,617			11,903
Cash flows from investing activities:
Additions to property, equipment and software		(8,162	)		(3,720	)
Investments in technology		(6,095	)		(307	)
Purchase of marketable securities		(34,066	)		(7,786	)
Proceeds from sale and maturity of marketable securities		97,951			18,192
Decrease (increase) in restricted investments		31			(500	)
Decrease in deposits and other assets		308			12
Net cash provided by investing activities		49,967			5,891
Cash flows from financing activities:
Repurchase and retirement of common stock		(56,493	)		—
Net proceeds from the issuance of common stock		360			12,255
Net cash provided by (used in) financing activities		(56,133	)		12,255
Net increase in cash and cash equivalents		4,451			30,049
Cash and cash equivalents at beginning of period		37,039			16,109
Cash and cash equivalents at end of period	$	41,490		$	46,158

The accompanying notes are an integral part of these consolidated condensed financial statements.

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CIRRUS LOGIC, INC.

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(unaudited)

1. Basis of Presentation

The consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. (“we,” “us,” “our,” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“Commission”). The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations. As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 26, 2011, included in our Annual Report on Form 10-K filed with the Commission on May 25, 2011. In our opinion, the financial statements reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows, for those periods presented. The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses, as well as disclosure of contingent assets and liabilities. Actual results could differ from those estimates and assumptions. Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain reclassifications have been made to the 2011 fiscal year presentation to conform to the fiscal year 2012 presentation. This reclassification had no effect on the results of operations or stockholders’ equity.

2. Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04, Fair Value Measurement (Accounting Standards Codification (“ASC”) Topic 820) — Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this ASU result in common fair value measurement and disclosure requirements in U.S. GAAP and international financial reporting standards (“IFRS”). Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. To improve consistency in application across jurisdictions some changes in wording are necessary to ensure that U.S. GAAP and IFRS fair value measurement and disclosure requirements are described in the same way. The ASU also provides for certain changes in current GAAP disclosure requirements, for example with respect to the measurement of level 3 assets and for measuring the fair value of an instrument classified in a reporting entity’s shareholders’ equity. The amendments in this ASU are to be applied prospectively, and are effective during interim and annual periods beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

In May 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (ASC Topic 220) — Presentation of Comprehensive Income. The amendments from this update will result in more converged guidance on how comprehensive income is presented under both U.S. GAAP and IFRS. With this update to ASC 220, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income, nor does it affect how earnings per share is calculated or presented. Current U.S. GAAP allows reporting entities three alternatives for presenting other comprehensive income and its components in financial statements. One of those presentation options is to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. This update eliminates that option. The amendments in this ASU should be applied retrospectively, and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

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3. Fair Value of Financial Instruments

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

• Level 1 — Quoted prices in active markets for identical assets or liabilities.

• Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

As of June 25, 2011, the Company’s cash and cash equivalents and restricted investments of $47.2 million, and short and long-term investments of $108.4 million, were valued using quoted prices generated by market transactions involving identical assets, or Level 1 assets, as defined under FASB ASC Topic 820.

The following table summarizes the carrying amount and fair value of the Company’s financial instruments (in thousands):

	June 25, 2011				March 26, 2011
	Carrying				Carrying
Financial instruments	Amount		Fair Value		Amount		Fair Value
Cash and cash equivalents	$	41,490	$	41,490	$	37,039	$	37,039
Restricted investments		5,755		5,755		5,786		5,786
Marketable securities		107,016		107,016		159,528		159,528
Long-term marketable securities		1,334		1,334		12,702		12,702
	$	155,595	$	155,595	$	215,055	$	215,055

Financial assets with carrying amounts approximating fair value include cash and cash equivalents, restricted investments, and marketable securities. The carrying amount of these financial assets approximates fair value because of their short maturity. The fair values of long-term marketable securities are valued using quoted prices generated by market transactions involving identical assets.

The Company’s investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with ASC Topic 320 — “Investments — Debt and Equity Securities.” Marketable securities are categorized on the consolidated condensed balance sheet as restricted investments and marketable securities, as appropriate.

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The following table is a summary of available-for-sale securities at June 25, 2011 (in thousands):

								Estimated
			Gross		Gross			Fair Value
	Amortized		Unrealized		Unrealized			(Net Carrying
	Cost		Gains		Losses			Amount)
Corporate securities — U.S.	$	43,723	$	26	$	(30	)	$	43,719
U.S. Government securities		21,485		9		—			21,494
Agency discount notes		10,841		6		—			10,847
Commercial paper		32,280		10		—			32,290
Total securities	$	108,329	$	51	$	(30	)	$	108,350

The Company’s specifically identified gross unrealized losses of $30 thousand relates to ten different securities with amortized costs of approximately $21.5 million at June 25, 2011. The securities with gross unrealized losses have been in a continuous unrealized loss position for less than 12 months as of June 25, 2011.

The following table is a summary of available-for-sale securities at March 26, 2011 (in thousands):

								Estimated
			Gross		Gross			Fair Value
	Amortized		Unrealized		Unrealized			(Net Carrying
	Cost		Gains		Losses			Amount)
Corporate securities — U.S.	$	64,228	$	22	$	(38	)	$	64,212
U.S. Government securities		35,268		13		—			35,281
Agency discount notes		16,588		5		(2	)		16,591
Commercial paper		56,130		23		(7	)		56,146
Total securities	$	172,214	$	63	$	(47	)	$	172,230

The Company’s specifically identified gross unrealized losses of $47 thousand relates to 28 different securities with a total amortized cost of approximately $61.8 million at March 26, 2011. The securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 26, 2011.

4. Accounts Receivable, net

The following are the components of accounts receivable, net (in thousands):

	June 25,			March 26,
	2011			2011
Gross accounts receivable	$	42,399		$	39,519
Allowance for doubtful accounts		(432	)		(421	)
	$	41,967		$	39,098

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5. Inventories

Inventories are comprised of the following (in thousands):

	June 25,		March 26,
	2011		2011
Work in process	$	24,989	$	22,048
Finished goods		21,862		18,449
	$	46,851	$	40,497

The increase in inventory balances at June 25, 2011, as compared to March 26, 2011, is primarily related to the expected increased demand for our products, and reflects planned inventory builds.

6. Income Taxes

We recorded income tax expense of $5.3 million, primarily a non-cash charge, on pre-tax income of $14.5 million for the first quarter of fiscal year 2012, yielding an effective tax rate of 36.6 percent. Our income tax expense for the first quarter of fiscal year 2012 is based on an estimated effective tax rate derived from an estimate of consolidated earnings before taxes, adjusted for nondeductible expenses and other permanent differences for fiscal year 2012. The estimated effective tax rate was impacted primarily by the worldwide mix of consolidated earnings before taxes. Our income tax expense for the first quarter of fiscal year 2012 was slightly above the federal statutory rate primarily due to the effect of state income taxes and nondeductible expenses.

We recorded income tax expense of $155 thousand for the first quarter of fiscal year 2011, yielding an effective tax rate of 0.9 percent. Our income tax expense for the first quarter of fiscal year 2011 was based on an estimated effective tax rate, which was derived from an estimate of consolidated earnings before taxes for fiscal year 2011. The estimated effective tax rate was impacted primarily by the worldwide mix of consolidated earnings before taxes and an assessment regarding the ability to realize our deferred tax assets. Our income tax expense for the first quarter of fiscal year 2011 was less than the federal statutory rate primarily as a result of the utilization of a portion of our U.S. deferred tax asset and related valuation allowance.

We had no unrecognized tax benefits as of June 25, 2011. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. As of June 25, 2011, the balance of accrued interest and penalties was zero. No interest or penalties were incurred during the first quarter of fiscal year 2012.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. Fiscal years 2008 through 2011 remain open to examination by the major taxing jurisdictions to which we are subject.

7. Net Income Per Share

Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive items outstanding.

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The weighted average outstanding options excluded from our diluted calculation for the quarters ended June 25, 2011, and June 26, 2010, were 901,000, and 620,000, respectively, as the strike price of the options exceeded the average market price during the respective periods.

8. Legal Matters

During the first quarter of fiscal year 2011, the Company incurred $135 thousand in settlement costs related to a dispute with a former distributor of the Company’s products. This transaction is reflected as a separate line item on the consolidated condensed statement of operations in operating expenses under the caption “Provision for litigation expenses and settlements.”

From time to time, other various claims, charges and litigation are asserted or commenced against us arising from, or related to, contractual matters, intellectual property, employment disputes, as well as other issues. Frequent claims and litigation involving these types of issues are not uncommon in our industry. As to any of these claims or litigation, we cannot predict the ultimate outcome with certainty.

9. Stockholder’s Equity

Common Stock

The Company issued 0.1 million and 2.0 million shares of common stock, respectively, for the three month periods ending June 25, 2011, and June 26, 2010, in connection with stock option exercises during the periods.

Comprehensive Income

The components of comprehensive income, net of tax, are as follows (in thousands):

	Three Months Ended
	June 25,		June 26,
	2011		2010
Net income	$	9,178	$	17,602
Adjustments to arrive at comprehensive income:
Change in unrealized gain on marketable securities		5		(100	)
Comprehensive income	$	9,183	$	17,502

Share Repurchase Program

On November 4, 2010, we announced that a new $80 million share repurchase program had been approved by our Board of Directors. In the third quarter of fiscal year 2011, 216 thousand shares were repurchased at a cost of $2.8 million, or an average price of $12.80 per share. In the first quarter of fiscal year 2012, the Company completed the repurchase of approximately 3.5 million shares of the Company’s stock, at a total cost of $56.5 million, or an average cost of $15.94 per share. As of June 25, 2011, approximately $20.7 million remains available for share repurchases under this $80 million share repurchase program. All shares of our common stock that were repurchased were cancelled and retired.

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10. Segment Information

We determine our operating segments in accordance with FASB ASC Topic 280, “Segment Reporting.” Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker as defined by FASB ASC Topic 280.

The Company operates and tracks its results in one reportable segment based on the aggregation of activity from its two product lines under ASC Topic 280. Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level. Additionally, our product lines have similar characteristics and customers. They share operations support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology. Therefore, there is no complete, discrete financial information maintained for these product lines.

Revenue from our product lines are as follows (in thousands):

	Three Months Ended
	June 25,		June 26,
	2011		2010
Audio Products	$	71,119	$	53,988
Energy Products		21,123		27,927
	$	92,242	$	81,915

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read along with the unaudited consolidated condensed financial statements and notes thereto included in Item 1 of this Quarterly Report on Form 10-Q, as well as the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations for the fiscal year ended March 26, 2011, contained in our fiscal year 2011 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“Commission”) on May 25, 2011. We maintain a web site at investor.cirrus.com, which makes available free of charge our most recent annual report and all other filings we have made with the SEC. This Management’s Discussion and Analysis of Financial Condition and Results of Operations and certain information incorporated herein by reference contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates, forecasts and projections and the beliefs and assumptions of our management. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “estimates,” “intend,” and variations of these types of words and similar expressions which are intended to identify these forward-looking statements. In addition, any statements that refer to our plans, expectations, strategies or other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Among the important factors that could cause actual results to differ materially from those indicated by our forward-looking statements are those discussed in “Item 1A — Risk Factors Affecting our Business and Prospects” in our 2011 Annual Report on Form 10-K filed with the Commission on May 25, 2011. Readers should carefully review these risk factors, as well as those identified in other documents filed by us with the Commission.

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Overview

Cirrus Logic, Inc. (“Cirrus Logic,” “Cirrus,” “We,” “Us,” “Our,” or the “Company”) develops high-precision, analog and mixed-signal integrated circuits (“ICs”) for a broad range of audio and energy markets. Building on our diverse analog mixed-signal patent portfolio, Cirrus Logic delivers highly optimized products for consumer and commercial audio, automotive entertainment and targeted industrial and energy-related applications. We develop ICs, board-level modules and hybrids for high-power amplifier applications branded as the Apex Precision Power™ (“Apex”) line of products and provide complete system reference designs based on our technology that enable our customers to bring products to market in a timely and cost-effective manner.

Critical Accounting Policies

Our discussion and analysis of the Company’s financial condition and results of operations are based upon the unaudited consolidated condensed financial statements included in this report, which have been prepared in accordance with U. S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts. We evaluate the estimates on an on-going basis. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.

There were no material changes in the first quarter of fiscal year 2012 to the information provided under the heading “Critical Accounting Policies” included in our Annual Report on Form 10-K for the fiscal year ended March 26, 2011, which was filed with the Commission on May 25, 2011.

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Results of Operations

The following table summarizes the results of our operations for the first quarter of fiscal years 2012 and 2011 as a percent of net sales. All percentage amounts were calculated using the underlying data in thousands, unaudited:

	Percentage of Net Sales
	Three Months Ended
	June 25,			June 26,
	2011			2010
Audio products		77	%		66	%
Energy products		23	%		34	%
Net sales		100	%		100	%
Cost of sales		48	%		43	%
Gross margin		52	%		57	%
Research and development		20	%		18	%
Selling, general and administrative		16	%		17	%
Provision for litigation expenses and settlements		—			1	%
Total operating expenses		36	%		36	%
Income from operations		16	%		21	%
Interest income, net		0	%		1	%
Other income (expense), net		0	%		0	%
Income before income taxes		16	%		22	%
Provision for income taxes		6	%		1	%
Net income		10	%		21	%

Net Sales

Net sales for the first quarter of fiscal year 2012 increased $10.3 million, or 13 percent, to $92.2 million from $81.9 million for the first quarter of fiscal year 2011. Net sales from our audio products increased $17.1 million, or 32 percent, as compared to the comparable period from the prior fiscal year and were attributable to increased sales in our portable products. Energy product sales decreased $6.8 million, or 24 percent, during the first quarter of fiscal year 2012 versus the comparable quarter of the prior fiscal year. These decreases were attributable to sales reductions across various products within the energy product line and in particular certain end of life products.

Export sales, principally to Asia, including sales to U.S.-based customers with manufacturing plants overseas, were 86 percent and 80 percent of net sales during the first quarter of fiscal years 2012 and 2011, respectively. Our sales are denominated primarily in U.S. dollars. As a result, we have not entered into foreign currency forward exchange and option contracts.

Since the components we produce are largely proprietary and generally not available from second sources, we consider our end customer to be the entity specifying the use of our component in their design. These end customers may then purchase our products directly from us, from an external sales representative or distributor, or through a third party manufacturer contracted to produce their designs. For the first quarter of fiscal years 2012 and 2011, our ten largest end customers represented approximately 68 percent and 54 percent of our sales, respectively.

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Sales to one end customer, Apple Inc., which purchased through multiple contract manufacturers, represented approximately 53 percent and 34 percent of the Company’s total sales for the first quarter of fiscal years 2012 and 2011, respectively.

We had one distributor, Avnet Inc., which represented 20 percent and 29 percent of our sales for the first quarter of fiscal years 2012 and 2011, respectively.

No other end customer or distributor represented more than 10 percent of net sales for the three month periods ending June 25, 2011 or June 26, 2010.

Gross Margin

Gross margin was 51.7 percent in the first quarter of fiscal year 2012, down from 57.1 percent in the first quarter of fiscal year 2011. Gross margin during the current fiscal quarter was reduced by the residual effects of the production issue disclosed in our 2011 Form 10-K pertaining to the new audio device that ramped into high volume production in March 2011. Further, gross margin year over year was effected by a change in product mix primarily to higher revenue in our Audio products combined with a reduction in revenue from our Energy products.

Research and Development Expense

Research and development expense for the first quarter of fiscal year 2012 was $18.8 million, an increase of $3.7 million, or 24.4 percent, from $15.1 million in the first quarter of fiscal year 2011. This increase was primarily due to a 21 percent increase in research and development headcount and the associated employee related expenses including salaries and wages and equity expenses, coupled with higher integrated circuit design tool expenses and equipment.

Selling, General and Administrative Expense

Selling, general and administrative (“SG&A”) expense in the first quarter of fiscal year 2012 was $14.6 million, an increase of $0.6 million, or 4.2 percent, from $14.0 million in the first quarter of fiscal year 2011. The increase was primarily attributable to employee related expenses and higher amortization related to purchased software.

Provision for Litigation Expenses and Settlements

During the first quarter of fiscal year 2011, the Company incurred $135 thousand in settlement costs related to a dispute with a former distributor of the Company’s products. This transaction is reflected as a separate line item on the consolidated condensed statement of operations in operating expenses under the caption “Provision for litigation expenses and settlements.”

Interest Income

Interest income in the first quarter of fiscal years 2012 and 2011 was $0.2 million and $0.2 million, respectively. The average invested capital balances on which interest was earned for the quarterly periods ending June 25, 2011, and June 26, 2010, was $185.3 million and $151.6 million, respectively.

Income Taxes

We recorded income tax expense of $5.3 million, primarily a non-cash charge, on pre-tax income of $14.5 million for the first quarter of fiscal year 2012, yielding an effective tax rate of 36.6 percent. Our income tax expense for the first quarter of fiscal year 2012 is based on an estimated effective tax rate derived from an estimate of consolidated earnings before taxes, adjusted for nondeductible expenses and other permanent differences for fiscal year 2012. The estimated effective tax rate was impacted primarily by the worldwide mix of consolidated earnings before taxes. Our income tax expense for the first quarter of fiscal year 2012 was slightly above the federal statutory rate primarily due to the effect of state income taxes and nondeductible expenses.

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We recorded income tax expense of $155 thousand for the first quarter of fiscal year 2011, yielding an effective tax rate of 0.9 percent. Our income tax expense for the first quarter of fiscal year 2011 was based on an estimated effective tax rate, which was derived from an estimate of consolidated earnings before taxes for fiscal year 2011. The estimated effective tax rate was impacted primarily by the worldwide mix of consolidated earnings before taxes and an assessment regarding the ability to realize our deferred tax assets. Our income tax expense for the first quarter of fiscal year 2011 was less than the federal statutory rate primarily as a result of the utilization of a portion of our U.S. deferred tax asset and related valuation allowance.

Recently Issued Accounting Pronouncements

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (ASC Topic 820) — Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this ASU result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRS. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. To improve consistency in application across jurisdictions some changes in wording are necessary to ensure that U.S. GAAP and IFRS fair value measurement and disclosure requirements are described in the same way. The ASU also provides for certain changes in current GAAP disclosure requirements, for example with respect to the measurement of level 3 assets and for measuring the fair value of an instrument classified in a reporting entity’s shareholders’ equity. The amendments in this ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

In May 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (ASC Topic 220) — Presentation of Comprehensive Income. The amendments from this update will result in more converged guidance on how comprehensive income is presented under both U.S. GAAP and IFRS. With this update to ASC 220, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income, nor does it affect how earnings per share is calculated or presented. Current U.S. GAAP allows reporting entities three alternatives for presenting other comprehensive income and its components in financial statements. One of those presentation options is to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. This update eliminates that option. The amendments in this ASU should be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

Liquidity and Capital Resources

We require cash to fund our operating expenses and working capital requirements, including outlays for research and development, to make capital expenditures, repurchase our stock, make investments in marketable securities, and for strategic acquisitions. Our principal sources of liquidity are cash on hand, cash generated from operations, cash generated from the sale and maturity of marketable securities, and funds from equity issuances.

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Cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain current assets and current liabilities. Our operational cash flows are affected by the ability of our operations to generate cash, and our management of our assets and liabilities, including both working capital and long-term assets and liabilities. Net cash provided by operating activities was $10.6 million for the first quarter of fiscal year 2012 as compared to $11.9 million for the corresponding period of fiscal year 2011. The primary source of cash from operations during the current quarter was related to the cash components of our net income, which was partially offset by an $8.2 million increase in working capital. Working capital fluctuates depending on end-market demand and our management of certain items such as receivables, inventory and payables. In times of escalating demand, our working capital requirements may increase as we purchase additional manufacturing materials and increase production. Our working capital, including cash, was $225.5 million at June 25, 2011 and $267.4 million at March 26, 2011.

Net cash provided by investing activities was $50.0 million during the first quarter of fiscal year 2012 as compared to $5.9 million during the first quarter of fiscal year 2011, primarily as a result of a net $63.9 million received from the sale and maturity of marketable securities. Further, we utilized $14.3 million for the purchase of property, equipment, software, and technology assets, including $5.8 million in integrated circuit design tool technology, $3.3 million for the purchase of additional land adjacent to our new headquarters facility currently under construction, and approximately $3.0 million in facility construction costs.

Net cash used in financing activities was $56.1 million during the first quarter of fiscal year 2012 as compared to $12.3 million provided by financing activities during the first quarter of fiscal year 2011. The use of cash was primarily attributable to the use of $56.5 million to repurchase 3.5 million shares of the Company’s common stock at an average price of $15.94 during the first quarter, as discussed previously in Note 9 — Stockholder’s Equity of the Notes to Consolidated Condensed Financial Statements contained in Item 1. This use of cash in financing activities was partially offset by the issuance of 62 thousand shares of common stock in connection with option exercises during the current quarterly period, which resulted in proceeds of $0.4 million. The cash generation during the first quarter of fiscal year 2011 was primarily attributable to the issuance of 2.0 million shares of common stock in connection with option exercises.

As of June 25, 2011, we had restricted cash of $5.8 million, which primarily secures certain obligations under our lease agreement for the headquarters and engineering facility in Austin, Texas. The cash restriction for this lease agreement is reduced to $2.6 million in September 2011 and expires in May 2012.

The Company commenced construction of our new headquarters facility in Austin, Texas during the fourth quarter of fiscal year 2011, with completion expected in the summer of calendar year 2012. We estimate that total facility construction costs will be approximately $30 million and will generally occur ratably throughout the construction process. As of June 25, 2011, approximately $4.7 million of these estimated expenditures have been incurred. In addition, we estimate that we will incur an additional $9 million in furniture, fixtures, and equipment in order to fully move our headquarters employees into this new facility. It is anticipated that the project will be funded internally from existing and future cash flows.

We have not paid cash dividends on our common stock and currently intend to continue our policy of retaining any earnings for reinvestment in our business. Although we cannot give assurance that we will be able to generate cash in the future, we anticipate that our existing capital resources and cash flow generated from future operations will enable us to maintain our current level of operations for at least the next 12 months.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risks associated with interest rates on our debt securities, currency movements on non-U.S. dollar denominated assets and liabilities, and the effect of market factors on the value of our non-marketable equity securities and marketable securities. We assess these risks on a regular basis and have established policies that are designed to protect against the adverse effects of these and other potential exposures. For a description of our market risks, see “Part II — Item 7A — Quantitative and Qualitative Disclosures about Market Risk” in our 2011 Form 10-K. There have been no significant changes to our exposure to market risks since we filed our 2011 Annual Report on Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 of the Exchange Act. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of June 25, 2011, our disclosure controls and procedures were effective at providing reasonable assurance that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and that our controls and procedures are effective in timely alerting them to material information required to be included in this report.

Changes in control over financial reporting

There has been no change in our internal control over financial reporting that occurred during our most recent fiscal quarter that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, various claims, charges and litigation are asserted or commenced against us arising from, or related to, contractual matters, intellectual property, employment disputes, as well as other issues. Frequent claims and litigation involving these types of issues are not uncommon in our industry. As to any of these claims or litigation, we cannot predict the ultimate outcome with certainty.

ITEM 1A. RISK FACTORS

In evaluating all forward-looking statements, readers should specifically consider risk factors that may cause actual results to vary from those contained in the forward-looking statements. Various risk factors associated with our business are included in our Annual Report on Form 10-K for the fiscal year ended March 26, 2011, as filed with the U.S. Securities and Exchange Commission (“Commission”) on May 25, 2011 and available at www.sec.gov. Other than as set forth below, there have been no material changes to those risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended March 26, 2011.

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We depend on a limited number of customers and distributors for a substantial portion of our sales, and the loss of, or a significant reduction in orders from, any key customer or distributor could significantly reduce our sales.

While we generate sales from a broad base of customers worldwide, the loss of any of our key customers, or a significant reduction in sales to any one of them, would significantly reduce our sales and adversely affect our business. For the first quarter of fiscal years 2012 and 2011, our ten largest end customers represented approximately 68 percent and 54 percent of our sales, respectively. We had one end customer, Apple Inc. that purchased through multiple contract manufacturers and represented approximately 53 percent and 34 percent of the Company’s total sales for the first quarter of fiscal years 2012 and 2011, respectively.

We had one distributor, Avnet Inc., which represented 20 percent and 29 percent of our sales for the first quarter of fiscal years 2012 and 2011, respectively. No other end customer or distributor represented more than 10 percent of net sales for the three month periods ending June 25, 2011 or June 26, 2010.

We may not be able to maintain or increase sales to certain of our key customers for a variety of reasons, including the following:

• most of our customers can stop incorporating our products into their own products with limited notice to us and suffer little or no penalty;

• our agreements with our customers typically do not require them to purchase a minimum quantity of our products;

• many of our customers have pre-existing or concurrent relationships with our current or potential competitors that may affect the customers’ decisions to purchase our products;

• our customers face intense competition from other manufacturers that do not use our products; and

• our customers regularly evaluate alternative sources of supply in order to diversify their supplier base, which increases their negotiating leverage with us and their ability to obtain components from alternative sources.

These relationships often require us to develop new products that may involve significant technological challenges. Our customers frequently place considerable pressure on us to meet their tight development schedules. Accordingly, we may have to devote a substantial amount of resources to strategic relationships, which could detract from or delay our completion of other important development projects or the development of next generation products and technologies. Delays in development could impair our relationships with strategic customers and negatively impact sales of the products under development.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides information about purchases of equity securities that are registered by us pursuant to Section 12 of the Exchange Act during the three months ended June 25, 2011 (in thousands, except per share amounts):

					Total Number of		Approximate Dollar
					Shares Purchased as		Value of Shares That
	Total Number				Part of Publicly		May Yet be Purchased
	of Shares		Average Price		Announced Plans or		Under the Plan or
Monthly Period	Purchased		Paid per Share		Programs		Programs (1)
March 27, 2011 – April 23, 2011		—		—		—		—
April 24, 2011 – May 21, 2011		1,919	$	15.96		1,919	$	46,599
May 22, 2011 – June 25, 2011		1,625	$	15.91		1,625	$	20,742
Total		3,544				3,544

(1) In November 2010, our Board of Directors approved a common stock repurchase program that authorized us to purchase up to $80.0 million in common stock. The repurchases will be funded from existing cash and will be effected from time to time in accordance with applicable securities laws through the open market or in privately negotiated transactions. The timing of the repurchases and the actual amount purchased will depend on a variety of factors including the market price of the Company’s shares, general market and economic conditions, and other corporate considerations. The program does not have an expiration date, does not obligate the Company to repurchase any particular amount of common stock, and may be modified or suspended at any time at the Company’s discretion. As of June 25, 2011, 3.8 million shares have been repurchased at a cost of $59.3 million, or an average price of $15.76 per share, under this program.

ITEM 6. EXHIBITS

The following exhibits are filed as part of or incorporated by reference into this Report:

3.1		Certificate of Incorporation of Registrant, filed with the Delaware Secretary of State on August 26, 1998. (1)
3.2		Amended and Restated Bylaws of Registrant. (2)
31.1	*	Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	*	Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	*#	Certification of Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	*#	Certification of Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*	Filed with this Form 10-Q.
#	Not considered to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.
(1)	Incorporated by reference to exhibit 3.1 from Registrant’s Report on Form 10-K for the fiscal year ended March 31, 2001, filed with the Commission on June 22, 2001.
(2)	Incorporated by reference to exhibit 3.1 from Registrant’s Report of Form 8-K filed with the Commission on May 26, 2011.

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The exhibits required to be filed pursuant to the requirements of Item 601 of Regulation S-K are set forth in the Exhibit Index accompanying this report and are incorporated herein by reference.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CIRRUS LOGIC, INC.
Date: July 25, 2011	By:	/s/ Thurman K. Case
		Thurman K. Case
		Chief Financial Officer and Principal Accounting Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jason P. Rhode, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cirrus Logic, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 25, 2011	/s/ Jason P. Rhode
	Jason P. Rhode
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Thurman K. Case, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cirrus Logic, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 25, 2011	/s/ Thurman K. Case
	Thurman K. Case
	Chief Financial Officer and Principal Accounting Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Cirrus Logic, Inc. (the “Company”) on Form 10-Q for the period ended June 25, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, Jason P. Rhode, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Date: July 25, 2011	/s/ Jason P. Rhode
	Jason P. Rhode
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Cirrus Logic, Inc. (the “Company”) on Form 10-Q for the period ended June 25, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, Thurman K. Case, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Date: July 25, 2011	/s/ Thurman K. Case
	Thurman K. Case
	Chief Financial Officer and Principal Accounting Officer

XML



Document And Entity Information	3 Months Ended
	Jun. 25, 2011	Jul. 20, 2011
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Entity Registrant Name	CIRRUS LOGIC INC
Entity Central Index Key	0000772406
Entity Filer Category	Large Accelerated Filer
Document Period End Date	Jun. 25, 2011
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		65,201,100

XML



Income Taxes

3 Months Ended

Jun. 25, 2011

Income Taxes

Income Taxes

6.    Income Taxes

We recorded income tax expense of $5.3 million, primarily a non-cash charge, on pre-tax income of $14.5 million for the first quarter of fiscal year 2012, yielding an effective tax rate of 36.6 percent.  Our income tax expense for the first quarter of fiscal year 2012 is based on an estimated effective tax rate derived from an estimate of consolidated earnings before taxes, adjusted for nondeductible expenses and other permanent differences for fiscal year 2012.  The estimated effective tax rate was impacted primarily by the worldwide mix of consolidated earnings before taxes.  Our income tax expense for the first quarter of fiscal year 2012 was slightly above the federal statutory rate primarily due to the effect of state income taxes and nondeductible expenses.

We recorded income tax expense of $155 thousand for the first quarter of fiscal year 2011, yielding an effective tax rate of 0.9 percent.  Our income tax expense for the first quarter of fiscal year 2011 was based on an estimated effective tax rate, which was derived from an estimate of consolidated earnings before taxes for fiscal year 2011.  The estimated effective tax rate was impacted primarily by the worldwide mix of consolidated earnings before taxes and an assessment regarding the ability to realize our deferred tax assets.  Our income tax expense for the first quarter of fiscal year 2011 was less than the federal statutory rate primarily as a result of the utilization of a portion of our U.S. deferred tax asset and related valuation allowance.

        We had no unrecognized tax benefits as of June 25, 2011.  We do not expect our unrecognized tax benefits to change significantly over the next 12 months.  Our policy is to recognize interest and penalties related to income tax matters in income tax expense. As of June 25, 2011, the balance of accrued interest and penalties was zero. No interest or penalties were incurred during the first quarter of fiscal year 2012. 

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions.  Fiscal years 2008 through 2011 remain open to examination by the major taxing jurisdictions to which we are subject.

XML



Net Income Per Share

3 Months Ended

Jun. 25, 2011

Net Income Per Share

Net Income Per Share

7.      Net Income Per Share

Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period.  Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive items outstanding. 

         The weighted average outstanding options excluded from our diluted calculation for the quarters ended June 25, 2011, and June 26, 2010, were 901,000, and 620,000, respectively, as the strike price of the options exceeded the average market price during the respective periods.

XML



Legal Matters

3 Months Ended

Jun. 25, 2011

Legal Matters

Legal Matters

8.    Legal Matters

During the first quarter of fiscal year 2011, the Company incurred $135 thousand in settlement costs related to a dispute with a former distributor of the Company's products.  This transaction is reflected as a separate line item on the consolidated condensed statement of operations in operating expenses under the caption "Provision for litigation expenses and settlements."  

      From time to time, other various claims, charges and litigation are asserted or commenced against us arising from, or related to, contractual matters, intellectual property, employment disputes, as well as other issues.  Frequent claims and litigation involving these types of issues are not uncommon in our industry.  As to any of these claims or litigation, we cannot predict the ultimate outcome with certainty.

XML



Stockholder's Equity

3 Months Ended

Jun. 25, 2011

Stockholder's Equity

Stockholder's Equity

9.    Stockholder's Equity

Common Stock

        The Company issued 0.1 million and 2.0 million shares of common stock, respectively, for the three month periods ending June 25, 2011 and June 26, 2010, in connection with stock option exercises during the periods.

Comprehensive Income

        The components of comprehensive income, net of tax, are as follows (in thousands):

		Three Months Ended
		June 25,	June 26,
		2011	2010
Net income		$                  9,178	$                17,602
Adjustments to arrive at comprehensive income:
	Change in unrealized gain on marketable securities	5	(100)
Comprehensive income		$                  9,183	$                17,502

Share Repurchase Program

On November 4, 2010, we announced that a new $80 million share repurchase program had been approved by our Board of Directors. In the third quarter of fiscal year 2011, 216 thousand shares were repurchased at a cost of $2.8 million, or an average price of $12.80 per share. In the first quarter of fiscal year 2012, the Company completed the repurchase of approximately 3.5 million shares of the Company's stock, at a total cost of $56.5 million, or an average cost of $15.94 per share. As of June 25, 2011, approximately $20.7 million remains available for share repurchases under this $80 million share repurchase program. All shares of our common stock that were repurchased were cancelled and retired.  

XML



Segment Information

3 Months Ended

Jun. 25, 2011

Segment Information

Segment Information

10.  Segment Information

We determine our operating segments in accordance with FASB ASC Topic 280, "Segment Reporting."  Our Chief Executive Officer ("CEO") has been identified as the chief operating decision maker as defined by FASB ASC Topic 280. 

The Company operates and tracks its results in one reportable segment based on the aggregation of activity from its two product lines under ASC Topic 280. Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level.  Additionally, our product lines have similar characteristics and customers.  They share operations support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology.  Therefore, there is no complete, discrete financial information maintained for these product lines.

Revenue from our product lines are as follows (in thousands):

	Three Months Ended
	June 25,	June 26,
	2011	2010
Audio Products	$           71,119	$           53,988
Energy Products	21,123	27,927
	$           92,242	$           81,915

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Fair Value Of Financial Instruments (Tables)

3 Months Ended

12 Months Ended

Jun. 25, 2011

Mar. 26, 2011

Fair Value Of Financial Instruments

Schedule Of Carrying Amount And Fair Value Of Financial Instruments

	June 25, 2011		March 26, 2011
Financial instruments	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Cash and cash equivalents	$           41,490	$          41,490	$           37,039	$           37,039
Restricted investments	5,755	5,755	5,786	5,786
Marketable securities	107,016	107,016	159,528	159,528
Long-term marketable securities	1,334	1,334	12,702	12,702
	$         155,595	$        155,595	$         215,055	$         215,055

Schedule Of Available-For-Sale Securities

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value (Net Carrying Amount)
Corporate securities – U.S.	$          43,723	$                 26	$                 (30)	$                  43,719
U.S. Government securities	21,485	9	-	21,494
Agency discount notes	10,841	6	-	10,847
Commercial paper	32,280	10	-	32,290
Total securities	$        108,329	$                 51	$                 (30)	$                108,350

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value (Net Carrying Amount)
Corporate securities – U.S.	$          64,228	$                 22	$                 (38)	$                  64,212
U.S. Government securities	35,268	13	-	35,281
Agency discount notes	16,588	5	(2)	16,591
Commercial paper	56,130	23	(7)	56,146
Total securities	$        172,214	$                 63	$                 (47)	$                172,230

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Accounts Receivable, Net (Tables)

3 Months Ended

Jun. 25, 2011

Accounts Receivable, Net

Components Of Accounts Receivable, Net

	June 25,	March 26,
	2011	2011
Gross accounts receivable	$              42,399	$                39,519
Allowance for doubtful accounts	(432)	(421)
	$              41,967	$                39,098

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Inventories (Tables)

3 Months Ended

Jun. 25, 2011

Inventories

Schedule Of Inventory

	June 25,	March 26,
	2011	2011
Work in process	$              24,989	$                22,048
Finished goods	21,862	18,449
	$              46,851	$                40,497

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Stockholder's Equity (Tables)

3 Months Ended

Jun. 25, 2011

Stockholder's Equity

Components Of Comprehensive Income

		Three Months Ended
		June 25,	June 26,
		2011	2010
Net income		$                  9,178	$                17,602
Adjustments to arrive at comprehensive income:
	Change in unrealized gain on marketable securities	5	(100)
Comprehensive income		$                  9,183	$                17,502

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Segment Information (Tables)

3 Months Ended

Jun. 25, 2011

Segment Information

Schedule Of Segment Revenue From Product Lines

	Three Months Ended
	June 25,	June 26,
	2011	2010
Audio Products	$           71,119	$           53,988
Energy Products	21,123	27,927
	$           92,242	$           81,915

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Consolidated Condensed Balance Sheets (USD $) In Thousands	Jun. 25, 2011	Mar. 26, 2011
Assets
Cash and cash equivalents	$ 41,490	$ 37,039
Restricted investments	5,755	5,786
Marketable securities	107,016	159,528
Accounts receivable, net	41,967	39,098
Inventories	46,851	40,497
Deferred tax assets	30,800	30,797
Other current assets	8,042	6,725
Total current assets	281,921	319,470
Long-term marketable securities	1,334	12,702
Property and equipment, net	42,465	34,563
Goodwill and intangibles, net	25,532	26,152
Deferred tax assets	97,152	102,136
Other assets	8,566	1,598
Total assets	456,970	496,621
Liabilities and Stockholders' Equity
Accounts payable	31,063	27,639
Accrued salaries and benefits	8,120	12,402
Other accrued liabilities	7,505	5,169
Deferred income	9,745	6,844
Total current liabilities	56,433	52,054
Long-term obligations	6,666	6,188
Stockholders' equity:
Capital stock	994,746	991,947
Accumulated deficit	(600,126)	(552,814)
Accumulated other comprehensive loss	(749)	(754)
Total stockholders' equity	393,871	438,379
Total liabilities and stockholders' equity	$ 456,970	$ 496,621

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Fair Value Of Financial Instruments (Narrative) (Details) (USD $)	3 Months Ended
	Jun. 25, 2011	Mar. 26, 2011
Cash and cash equivalents and restricted investments	$ 47,200,000
Minimum maturity period of investments to be classified as available for sale securities, days	90
Gross unrealized losses	30,000	47,000
Amortized costs	108,329,000	172,214,000
Fair Value, Inputs, Level 1 [Member]
Short and long-term investments	108,400,000
Ten Different Securities [Member]
Gross unrealized losses	30,000
Amortized costs	21,500,000
Number of securities	10
Twenty Eight Different Securities [Member]
Gross unrealized losses		47,000
Amortized costs		$ 61,800,000
Number of securities		28

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Fair Value Of Financial Instruments (Schedule Of Carrying Amount And Fair Value Of Financial Instruments) (Details) (USD $) In Thousands	Jun. 25, 2011	Mar. 26, 2011	Jun. 26, 2010	Mar. 27, 2010
Fair Value Of Financial Instruments
Cash and cash equivalents, Carrying Amount	$ 41,490	$ 37,039	$ 46,158	$ 16,109
Restricted investments, Carrying Amount	5,755	5,786
Marketable securities, Carrying Amount	107,016	159,528
Long-term marketable securities, Carrying Amount	1,334	12,702
Financial instruments, Carrying Amount	155,595	215,055
Cash and cash equivalents, Fair Value	41,490	37,039
Restricted investments, Fair Value	5,755	5,786
Marketable securities, Fair Value	107,016	159,528
Long-term marketable securities, Fair Value	1,334	12,702
Financial instruments, Fair Value	$ 155,595	$ 215,055

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Fair Value Of Financial Instruments (Schedule Of Available-For-Sale Securities) (Details) (USD $) In Thousands	Jun. 25, 2011	Mar. 26, 2011
Amortized Costs	$ 108,329	$ 172,214
Gross Unrealized Gains	51	63
Gross Unrealized Losses	(30)	(47)
Estimated Fair Value (Net Carrying Amount)	108,350	172,230
Corporate Securities - U.S. [Member]
Amortized Costs	43,723	64,228
Gross Unrealized Gains	26	22
Gross Unrealized Losses	(30)	(38)
Estimated Fair Value (Net Carrying Amount)	43,719	64,212
Commercial Paper [Member]
Amortized Costs	32,280	56,130
Gross Unrealized Gains	10	23
Gross Unrealized Losses		(7)
Estimated Fair Value (Net Carrying Amount)	32,290	56,146
U.S. Government Securities [Member]
Amortized Costs	21,485	35,268
Gross Unrealized Gains	9	13
Gross Unrealized Losses
Estimated Fair Value (Net Carrying Amount)	21,494	35,281
Agency Discount Notes [Member]
Amortized Costs	10,841	16,588
Gross Unrealized Gains	6	5
Gross Unrealized Losses		(2)
Estimated Fair Value (Net Carrying Amount)	$ 10,847	$ 16,591

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Accounts Receivable, Net (Details) (USD $) In Thousands	Jun. 25, 2011	Mar. 26, 2011
Accounts Receivable, Net
Gross accounts receivable	$ 42,399	$ 39,519
Allowance for doubtful accounts	(432)	(421)
Accounts receivable, net	$ 41,967	$ 39,098

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Inventories (Details) (USD $) In Thousands	Jun. 25, 2011	Mar. 26, 2011
Inventories
Work in process	$ 24,989	$ 22,048
Finished goods	21,862	18,449
Total inventory	$ 46,851	$ 40,497

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 25, 2011	Jun. 26, 2010
Income Taxes
Income tax expense	$ 5,295	$ 155
Pre-tax income expense	14,473	17,757
Effective tax rate	36.60%	0.90%
Unrecognized tax benefit	0
Accrued interest and penalties	0
Interest and penalties incurred during period	$ 0

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Net Income Per Share (Details)	3 Months Ended
	Jun. 25, 2011	Jun. 26, 2010
Net Income Per Share
Weighted average outstanding options excluded from diluted calculation	901,000	620,000

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Legal Matters (Details) (USD $) In Thousands	3 Months Ended
	Jun. 26, 2010
Legal Matters
Provision for litigation expenses and settlements	$ 135

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Stockholder's Equity (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended
	Nov. 04, 2010	Jun. 25, 2011	Dec. 25, 2010	Jun. 26, 2010
Stockholder's Equity
Shares of common stock issued for stock option exercises		100,000		2,000,000
Share repurchase program, amount approved	$ 80,000,000
Shares repurchased		3,500,000	216,000
Average cost per share repurchased		$ 15.94	$ 12.80
Average cost of shares repurchased		56,493,000	2,800,000
Remaining amount available for share repurchases under stock repurchase program		$ 20,700,000

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Stockholder's Equity (Components of Comprehensive Income) (Details) (USD $) In Thousands	3 Months Ended
	Jun. 25, 2011	Jun. 26, 2010
Stockholder's Equity
Net income	$ 9,178	$ 17,602
Change in unrealized gain on marketable securities	5	(100)
Comprehensive income	$ 9,183	$ 17,502

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Consolidated Condensed Statements Of Operations (USD $) In Thousands, except Per Share data	3 Months Ended
	Jun. 25, 2011	Jun. 26, 2010
Consolidated Condensed Statements of Operations
Net sales	$ 92,242	$ 81,915
Cost of sales	44,533	35,180
Gross margin	47,709	46,735
Operating expenses:
Research and development	18,767	15,092
Selling, general and administrative	14,606	14,011
Provision for litigation expenses and settlements		135
Total operating expenses	33,373	29,238
Income from operations	14,336	17,497
Interest income, net	154	228
Other income (expense), net	(17)	32
Income before income taxes	14,473	17,757
Provision for income taxes	5,295	155
Net income	$ 9,178	$ 17,602
Basic income per share:	$ 0.14	$ 0.26
Diluted income per share:	$ 0.13	$ 0.25
Basic weighted average common shares outstanding:	67,099	66,639
Diluted weighted average common shares outstanding:	70,445	70,755

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Segment Information (Details) (USD $) In Thousands	3 Months Ended
	Jun. 25, 2011	Jun. 26, 2010
Product revenue	$ 92,242	$ 81,915
Audio Products [Member]
Product revenue	71,119	53,988
Energy Products [Member]
Product revenue	$ 21,123	$ 27,927

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Consolidated Condensed Statements Of Cash Flows (USD $) In Thousands	3 Months Ended
	Jun. 25, 2011	Jun. 26, 2010
Cash flows from operating activities:
Net income	$ 9,178	$ 17,602
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,262	1,921
Stock compensation expense	2,442	1,356
Deferred income taxes	4,981
Loss on retirement or writeoff of long-lived assets	2	53
Other non-cash charges		7
Net change in operating assets and liabilities:
Accounts receivable, net	(2,869)	(10,573)
Inventories	(6,354)	(7,019)
Other assets	(2,794)	(517)
Accounts payable and other accrued liabilities	675	6,946
Deferred income	2,901	2,073
Income taxes payable	193	54
Net cash provided by operating activities	10,617	11,903
Cash flows from investing activities:
Additions to property, equipment and software	(8,162)	(3,720)
Investments in technology	(6,095)	(307)
Purchase of marketable securities	(34,066)	(7,786)
Proceeds from sale and maturity of marketable securities	97,951	18,192
Decrease (increase) in restricted investments	31	(500)
Decrease in deposits and other assets	308	12
Net cash used in investing activities	49,967	5,891
Cash flows from financing activities:
Repurchase and retirement of common stock	(56,493)
Net proceeds from the issuance of common stock	360	12,255
Net cash provided by (used in) financing activities	(56,133)	12,255
Net increase in cash and cash equivalents	4,451	30,049
Cash and cash equivalents at beginning of period	37,039	16,109
Cash and cash equivalents at end of period	$ 41,490	$ 46,158

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Basis Of Presentation

3 Months Ended

Jun. 25, 2011

Basis Of Presentation

Basis Of Presentation

1.    Basis of Presentation

The consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. ("we," "us," "our," or the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission").  The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations.  As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 26, 2011, included in our Annual Report on Form 10-K filed with the Commission on May 25, 2011. In our opinion, the financial statements reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows, for those periods presented.  The preparation of financial statements in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses, as well as disclosure of contingent assets and liabilities.  Actual results could differ from those estimates and assumptions.  Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain reclassifications have been made to the 2011 fiscal year presentation to conform to the fiscal year 2012 presentation. This reclassification had no effect on the results of operations or stockholders' equity.

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Recently Issued Accounting Pronouncements

3 Months Ended

Jun. 25, 2011

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

2.    Recently Issued Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-04, Fair Value Measurement (Accounting Standards Codification ("ASC") Topic 820) — Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this ASU result in common fair value measurement and disclosure requirements in U.S. GAAP and international financial reporting standards ("IFRS"). Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. To improve consistency in application across jurisdictions some changes in wording are necessary to ensure that U.S. GAAP and IFRS fair value measurement and disclosure requirements are described in the same way. The ASU also provides for certain changes in current GAAP disclosure requirements, for example with respect to the measurement of level 3 assets and for measuring the fair value of an instrument classified in a reporting entity's shareholders' equity. The amendments in this ASU are to be applied prospectively, and are effective during interim and annual periods beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

In May 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (ASC Topic 220) — Presentation of Comprehensive Income. The amendments from this update will result in more converged guidance on how comprehensive income is presented under both U.S. GAAP and IFRS. With this update to ASC 220, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income, nor does it affect how earnings per share is calculated or presented. Current U.S. GAAP allows reporting entities three alternatives for presenting other comprehensive income and its components in financial statements. One of those presentation options is to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. This update eliminates that option. The amendments in this Update should be applied retrospectively, and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

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Fair Value Of Financial Instruments

3 Months Ended

Jun. 25, 2011

Fair Value Of Financial Instruments

Fair Value Of Financial Instruments

3.     Fair Value of Financial Instruments

The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

As of June 25, 2011, the Company's cash and cash equivalents and restricted investments of $47.2 million, and short and long-term investments of $108.4 million, were valued using quoted prices generated by market transactions involving identical assets, or Level 1 assets, as defined under FASB ASC Topic 820.

The following table summarizes the carrying amount and fair value of the Company's financial instruments (in thousands):

	June 25, 2011		March 26, 2011
Financial instruments	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Cash and cash equivalents	$           41,490	$          41,490	$           37,039	$           37,039
Restricted investments	5,755	5,755	5,786	5,786
Marketable securities	107,016	107,016	159,528	159,528
Long-term marketable securities	1,334	1,334	12,702	12,702
	$         155,595	$        155,595	$         215,055	$         215,055

Financial assets with carrying amounts approximating fair value include cash and cash equivalents, restricted investments, and marketable securities.  The carrying amount of these financial assets approximates fair value because of their short maturity.  The fair values of long-term marketable securities are valued using quoted prices generated by market transactions involving identical assets.

The Company's investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with ASC Topic 320 - "Investments – Debt and Equity Securities."  Marketable securities are categorized on the consolidated condensed balance sheet as restricted investments and marketable securities, as appropriate.

        The following table is a summary of available-for-sale securities at June 25, 2011 (in thousands):

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value (Net Carrying Amount)
Corporate securities – U.S.	$          43,723	$                 26	$                 (30)	$                  43,719
U.S. Government securities	21,485	9	-	21,494
Agency discount notes	10,841	6	-	10,847
Commercial paper	32,280	10	-	32,290
Total securities	$        108,329	$                 51	$                 (30)	$                108,350

The Company's specifically identified gross unrealized losses of $30 thousand relates to ten different securities with amortized costs of approximately $21.5 million at June 25, 2011.  The securities with gross unrealized losses have been in a continuous unrealized loss position for less than 12 months as of June 25, 2011.

The following table is a summary of available-for-sale securities at March 26, 2011 (in thousands):

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Fair Value (Net Carrying Amount)
Corporate securities – U.S.	$          64,228	$                 22	$                 (38)	$                  64,212
U.S. Government securities	35,268	13	-	35,281
Agency discount notes	16,588	5	(2)	16,591
Commercial paper	56,130	23	(7)	56,146
Total securities	$        172,214	$                 63	$                 (47)	$                172,230

The Company's specifically identified gross unrealized losses of $47 thousand relates to 28 different securities with a total amortized cost of approximately $61.8 million at March 26, 2011.  The securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 26, 2011.

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Accounts Receivable, Net

3 Months Ended

Jun. 25, 2011

Accounts Receivable, Net

Accounts Receivable, Net

4.     Accounts Receivable, net

         The following are the components of accounts receivable, net (in thousands):

        

	June 25,	March 26,
	2011	2011
Gross accounts receivable	$              42,399	$                39,519
Allowance for doubtful accounts	(432)	(421)
	$              41,967	$                39,098

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Inventories

3 Months Ended

Jun. 25, 2011

Inventories

Inventories

5.    Inventories

        Inventories are comprised of the following (in thousands):

	June 25,	March 26,
	2011	2011
Work in process	$              24,989	$                22,048
Finished goods	21,862	18,449
	$              46,851	$                40,497

The increase in inventory balances at June 25, 2011, as compared to March 26, 2011, is primarily related to the expected increased demand for our products, and reflects planned inventory builds.