U.S. markets open in 14 minutes
  • S&P Futures

    3,433.25
    +1.00 (+0.03%)
     
  • Dow Futures

    28,171.00
    -11.00 (-0.04%)
     
  • Nasdaq Futures

    11,666.00
    +5.25 (+0.05%)
     
  • Russell 2000 Futures

    1,615.30
    +0.50 (+0.03%)
     
  • Crude Oil

    41.02
    -0.68 (-1.63%)
     
  • Gold

    1,927.80
    +12.40 (+0.65%)
     
  • Silver

    25.25
    +0.27 (+1.10%)
     
  • EUR/USD

    1.1857
    +0.0028 (+0.24%)
     
  • 10-Yr Bond

    0.8130
    +0.0160 (+2.01%)
     
  • Vix

    30.49
    +1.31 (+4.49%)
     
  • GBP/USD

    1.3092
    +0.0145 (+1.12%)
     
  • USD/JPY

    104.5900
    -0.8800 (-0.83%)
     
  • BTC-USD

    12,397.80
    +1,340.79 (+12.13%)
     
  • CMC Crypto 200

    248.53
    +9.61 (+4.02%)
     
  • FTSE 100

    5,802.38
    -86.84 (-1.47%)
     
  • Nikkei 225

    23,639.46
    +72.42 (+0.31%)
     

Cirrus Logic Reports Q1 FY21 Revenue of $242.6 Million

·11 mins read

Results Reflect Strong Demand for Products Shipping in Certain Tablets and Smartphones

Cirrus Logic, Inc. (Nasdaq: CRUS) today posted on its website at http://investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the first quarter fiscal year 2021, which ended June 27, 2020, as well as the company’s current business outlook.

"We are pleased with our results in the June quarter as we experienced robust demand for certain products shipping in tablets and smartphones," said Jason Rhode, chief executive officer. "Despite the continuing challenges and adverse economic effects associated with COVID-19, design activity and new product development efforts were encouraging during the quarter. The company remains focused on leveraging our strong customer relationships and mixed-signal processing expertise to broaden our penetration in audio, voice and other mixed-signal domains and position the company for growth in the coming years."

Reported Financial Results – First Quarter FY21

  • Revenue of $242.6 million;

  • GAAP and non-GAAP gross margin of 52.6 percent;

  • GAAP operating expenses of $108.8 million and non-GAAP operating expenses of $92.4 million;

  • GAAP earnings per share of $0.30 and non-GAAP earnings per share of $0.53.

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

Business Outlook – Second Quarter FY21

  • Revenue is expected to range between $290 million and $330 million;

  • GAAP gross margin to be between 51 percent and 53 percent; and

  • Combined GAAP R&D and SG&A expenses to range between $114 million and $120 million, including approximately $15 million in stock-based compensation expense and $3 million in amortization of acquired intangibles.

Cirrus Logic will host a live Q&A session at 5 p.m. EDT today to answer questions related to its financial results and business outlook. Participants may listen to the conference call on the Cirrus Logic website. Participants who would like to submit a question to be addressed during the call are requested to email investor.relations@cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion, or by calling (416) 621-4642, or toll-free at (800) 585-8367 (Access Code: 1899640).

Cirrus Logic, Inc.

Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world’s top mobile and consumer applications. With headquarters in Austin, Texas, Cirrus Logic is recognized globally for its award-winning corporate culture. Check us out at www.cirrus.com.

Cirrus Logic, Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders.

Use of non-GAAP Financial Information

To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, and effective tax rate. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements including our statements about broadening our penetration in audio, voice, and other domains, and positioning the company for growth in the coming years, along with estimates for the second quarter fiscal year 2021 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock compensation expense and amortization of acquired intangibles. In some cases, forward-looking statements are identified by words such as "expect," "anticipate," "target," "project," "believe," "goals," "opportunity," "estimates," "intend," and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the effects of the global COVID-19 outbreak and the measures taken to limit the spread of COVID-19, including any disruptions to our business that could result from measures to contain the outbreak that may be taken by governmental authorities in the jurisdictions in which we and our supply chain operate; the susceptibility of the markets we address to economic downturns, including as a result of the COVID-19 outbreak and the actions taken to mitigate the spread of COVID-19; the risks of doing business internationally, including increased import/export restrictions and controls (e.g., the effect of the U.S. Bureau of Industry and Security of the U.S. Department of Commerce placing Huawei Technologies Co., Ltd. and certain of its affiliates on the Bureau’s Entity List), imposition of trade protection measures (e.g., tariffs or taxes), security and health risks, possible disruptions in transportation networks, and other economic, social, military and geo-political conditions in the countries in which we, our customers or our suppliers operate; the level of orders and shipments during the second quarter of fiscal year 2021, customer cancellations of orders, or the failure to place orders consistent with forecasts, along with the risk factors listed in our Form 10-K for the year ended March 28, 2020 and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Summary financial data follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(unaudited)

(in thousands, except per share data)

Three Months Ended

Jun. 27,

Mar. 28,

Jun. 29,

2020

2020

2019

Q1'21

Q4'20

Q1'20

Portable products

$

210,661

$

249,731

$

202,938

Non-portable and other products

31,912

29,560

35,315

Net sales

242,573

279,291

238,253

Cost of sales

115,101

133,056

115,759

Gross profit

127,472

146,235

122,494

Gross margin

52.6

%

52.4

%

51.4

%

Research and development

78,741

81,865

88,830

Selling, general and administrative

29,704

32,464

29,520

Restructuring costs

352

21,925

-

Total operating expenses

108,797

136,254

118,350

Income from operations

18,675

9,981

4,144

Interest income

1,576

2,474

2,285

Other income (expense)

111

(106

)

(378

)

Income before income taxes

20,362

12,349

6,051

Provision for income taxes

2,153

2,191

1,433

Net income

$

18,209

$

10,158

$

4,618

Basic earnings per share:

$

0.31

$

0.17

$

0.08

Diluted earnings per share:

$

0.30

$

0.17

$

0.08

Weighted average number of shares:

Basic

58,313

58,527

58,540

Diluted

60,280

60,683

60,258

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(unaudited, in thousands, except per share data)
(not prepared in accordance with GAAP)

Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Three Months Ended

Jun. 27,

Mar. 28,

Jun. 29,

2020

2020

2019

Net Income Reconciliation

Q1'21

Q4'20

Q1'20

GAAP Net Income

$

18,209

$

10,158

$

4,618

Amortization of acquisition intangibles

2,998

3,000

7,228

Stock-based compensation expense

13,306

14,052

11,786

Restructuring costs

352

20,602

-

Adjustment to income taxes

(2,982

)

(6,320

)

(2,803

)

Non-GAAP Net Income

$

31,883

$

41,492

$

20,829

Earnings Per Share Reconciliation

GAAP Diluted earnings per share

$

0.30

$

0.17

$

0.08

Effect of Amortization of acquisition intangibles

0.05

0.05

0.12

Effect of Stock-based compensation expense

0.22

0.23

0.20

Effect of Restructuring costs

0.01

0.34

-

Effect of Adjustment to income taxes

(0.05

)

(0.11

)

(0.05

)

Non-GAAP Diluted earnings per share

$

0.53

$

0.68

$

0.35

Operating Income Reconciliation

GAAP Operating Income

$

18,675

$

9,981

$

4,144

GAAP Operating Profit

7.7

%

3.6

%

1.7

%

Amortization of acquisition intangibles

2,998

3,000

7,228

Stock-based compensation expense - COGS

207

213

241

Stock-based compensation expense - R&D

8,653

9,446

7,240

Stock-based compensation expense - SG&A

4,446

4,393

4,305

Restructuring costs

352

20,602

-

Non-GAAP Operating Income

$

35,331

$

47,635

$

23,158

Non-GAAP Operating Profit

14.6

%

17.1

%

9.7

%

Operating Expense Reconciliation

GAAP Operating Expenses

$

108,797

$

136,254

$

118,350

Amortization of acquisition intangibles

(2,998

)

(3,000

)

(7,228

)

Stock-based compensation expense - R&D

(8,653

)

(9,446

)

(7,240

)

Stock-based compensation expense - SG&A

(4,446

)

(4,393

)

(4,305

)

Restructuring costs

(352

)

(20,724

)

-

Non-GAAP Operating Expenses

$

92,348

$

98,691

$

99,577

Gross Margin/Profit Reconciliation

GAAP Gross Profit

$

127,472

$

146,235

$

122,494

GAAP Gross Margin

52.6

%

52.4

%

51.4

%

Stock-based compensation expense - COGS

207

213

241

Restructuring costs - COGS

-

(122

)

-

Non-GAAP Gross Profit

$

127,679

$

146,326

$

122,735

Non-GAAP Gross Margin

52.6

%

52.4

%

51.5

%

Effective Tax Rate Reconciliation

GAAP Tax Expense

$

2,153

$

2,191

$

1,433

GAAP Effective Tax Rate

10.6

%

17.7

%

23.7

%

Adjustments to income taxes

2,982

6,320

2,803

Non-GAAP Tax Expense

$

5,135

$

8,511

$

4,236

Non-GAAP Effective Tax Rate

13.9

%

17.0

%

16.9

%

Tax Impact to EPS Reconciliation

GAAP Tax Expense

$

0.04

$

0.04

$

0.02

Adjustments to income taxes

0.05

0.11

0.05

Non-GAAP Tax Expense

$

0.09

$

0.15

$

0.07

CONSOLIDATED CONDENSED BALANCE SHEET

unaudited; in thousands

Jun. 27,

Mar. 28,

Jun. 29,

2020

2020

2019

ASSETS

Current assets

Cash and cash equivalents

$

285,922

$

292,119

$

198,077

Marketable securities

29,943

22,008

52,350

Accounts receivable, net

136,539

153,998

111,497

Inventories

199,332

146,725

146,317

Other current assets

38,231

35,346

55,834

Total current Assets

689,967

650,196

564,075

Long-term marketable securities

290,186

283,573

205,079

Right-of-use lease assets

139,492

141,274

146,035

Property and equipment, net

154,286

158,244

182,042

Intangibles, net

31,185

34,430

62,496

Goodwill

287,399

287,088

286,370

Deferred tax asset

6,970

10,052

9,394

Other assets

44,554

27,820

14,625

Total assets

$

1,644,039

$

1,592,677

$

1,470,116

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

95,523

$

78,412

$

60,408

Accrued salaries and benefits

28,768

42,439

23,416

Current lease liability

13,887

13,580

14,517

Other accrued liabilities

24,866

24,206

32,865

Total current liabilities

163,044

158,637

131,206

Non-current lease liability

129,627

129,312

137,180

Non-current income taxes

69,130

71,143

79,484

Other long-term liabilities

9,949

3,806

4,996

Stockholders' equity:

Capital stock

1,451,297

1,434,929

1,375,777

Accumulated deficit

(184,049

)

(201,681

)

(258,899

)

Accumulated other comprehensive income (loss)

5,041

(3,469

)

372

Total stockholders' equity

1,272,289

1,229,779

1,117,250

Total liabilities and stockholders' equity

$

1,644,039

$

1,592,677

$

1,470,116

Prepared in accordance with Generally Accepted Accounting Principles

View source version on businesswire.com: https://www.businesswire.com/news/home/20200803005446/en/

Contacts

Thurman K. Case
Chief Financial Officer
Cirrus Logic, Inc.
(512) 851-4125
Investor.Relations@cirrus.com