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

    


Cirrus Logic Reports Fiscal Second Quarter Revenue of $541.9 Million


AUSTIN, Texas – November 4, 2024 – Cirrus Logic, Inc. (NASDAQ: CRUS) today posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the second quarter of fiscal year 2025, which ended September 28, 2024, as well as the company’s current business outlook.
“Cirrus Logic reported record revenue and earnings per share for the September quarter. Revenue was near the top end of our guidance range due to strong demand for products shipping into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “In addition to our outstanding financial results, during the quarter, we started shipping our next-generation custom boosted amplifier and first 22-nanometer smart codec in recently launched smartphones. We also made excellent progress in the laptop market as we secured our first high-volume mainstream design win with our latest PC codec and began shipping our first power product in multiple tier-one customers’ devices. With an extensive product portfolio and a compelling roadmap of future products, we believe Cirrus Logic is well-positioned to capitalize on the many opportunities ahead of us to further broaden our technology and market reach.”

Reported Financial Results – Second Quarter FY25
•Revenue of $541.9 million;
•GAAP and non-GAAP gross margin of 52.2 percent;
•GAAP operating expenses of $150.7 million and non-GAAP operating expenses of $126.8 million; and
•GAAP earnings per share of $1.83 and non-GAAP earnings per share of $2.25.

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


Business Outlook – Third Quarter FY25
•Revenue is expected to range between $480 million and $540 million;
•GAAP gross margin is forecasted to be between 51 percent and 53 percent; and
•Combined GAAP R&D and SG&A expenses are anticipated to range between $148 million and $154 million, including approximately $22 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $124 million and $130 million.

Cirrus Logic will host a live Q&A session at 5 p.m. EST today to discuss its financial results and business outlook. Participants may listen to the conference call on the investor relations website at investor.cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion or by calling (609) 800-9909 or toll-free at (800) 770-2030 (Access Code: 95424).

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

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

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





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

Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements including our statement about our belief that we are well-positioned to capitalize on the many opportunities ahead of us; and our estimates for the third quarter fiscal year 2025 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, and amortization of acquired intangibles. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “opportunity,” “estimates,” “intend,” and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the third quarter of fiscal year 2025, customer cancellations of orders, or the failure to place orders consistent with forecasts, along with the risk factors listed in our Form 10-K for the year ended March 30, 2024 and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.
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Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
Three Months Ended
Six Months Ended
Sep. 28,Jun. 29,Sep. 23,Sep. 28,Sep. 23,
20242024202320242023
Q2'25Q1'25Q2'24Q2'25Q2'24
Audio$316,588 $218,970 $282,855 $535,558 $478,661 
High-Performance Mixed-Signal225,269 155,056 198,208 380,325 319,418 
Net sales541,857 374,026 481,063 915,883 798,079 
Cost of sales259,267 185,101 234,467 444,368 392,096 
Gross profit282,590 188,925 246,596 471,515 405,983 
Gross margin52.2 %50.5 %51.3 %51.5 %50.9 %
Research and development112,925 105,363 104,205 218,288 210,420 
Selling, general and administrative37,813 36,770 34,323 74,583 69,702 
Restructuring costs— — 2,319 — 2,319 
Total operating expenses150,738 142,133 140,847 292,871 282,441 
Income from operations131,852 46,792 105,749 178,644 123,542 
Interest income8,134 8,202 3,729 16,336 8,329 
Other income (expense)19 1,609 (70)1,628 307 
Income before income taxes140,005 56,603 109,408 196,608 132,178 
Provision for income taxes37,865 14,508 34,001 52,373 41,171 
Net income $102,140 $42,095 $75,407 $144,235 $91,007 
Basic earnings per share$1.92 $0.79 $1.38 $2.70 $1.66 
Diluted earnings per share:$1.83 $0.76 $1.34 $2.59 $1.61 
Weighted average number of shares:
Basic53,275 53,433 54,503 53,354 54,683 
Diluted55,800 55,665 56,278 55,753 56,453 
Prepared in accordance with Generally Accepted Accounting Principles

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands, except per share data; unaudited)
(not prepared in accordance with GAAP)
Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.
Three Months Ended
Six Months Ended
Sep. 28,Jun. 29,Sep. 23,Sep. 28,Sep. 23,
20242024202320242023
Net Income ReconciliationQ2'25Q1'25Q2'24Q2'25Q2'24
GAAP Net Income$102,140 $42,095 $75,407 $144,235 $91,007 
Amortization of acquisition intangibles1,864 1,972 2,170 3,836 4,340 
Stock-based compensation expense22,447 21,385 21,331 43,832 44,046 
Lease impairment— 1,019 — 1,019 — 
Restructuring costs— — 2,319 — 2,319 
Acquisition-related costs— — 939 — 4,105 
Adjustment to income taxes(1,162)(4,105)(604)(5,267)(6,232)
Non-GAAP Net Income$125,289 $62,366 $101,562 $187,655 $139,585 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$1.83 $0.76 $1.34 $2.59 $1.61 
Effect of Amortization of acquisition intangibles0.04 0.03 0.04 0.07 0.08 
Effect of Stock-based compensation expense0.40 0.38 0.38 0.79 0.78 
Effect of Lease impairment— 0.02 — 0.02 — 
Effect of Restructuring costs— — 0.04 — 0.04 
Effect of Acquisition-related costs— — 0.01 — 0.07 
Effect of Adjustment to income taxes(0.02)(0.07)(0.01)(0.10)(0.11)
Non-GAAP Diluted earnings per share$2.25 $1.12 $1.80 $3.37 $2.47 
Operating Income Reconciliation
GAAP Operating Income$131,852 $46,792 $105,749 $178,644 $123,542 
GAAP Operating Profit 24.3 %12.5 %22.0 %19.5 %15.5 %
Amortization of acquisition intangibles1,864 1,972 2,170 3,836 4,340 
Stock-based compensation expense - COGS355 266 361 621 646 
Stock-based compensation expense - R&D15,844 15,763 15,472 31,607 31,424 
Stock-based compensation expense - SG&A6,248 5,356 5,498 11,604 11,976 
Lease impairment— 1,019 — 1,019 — 
Restructuring costs— — 2,319 — 2,319 
Acquisition-related costs— — 939 — 4,105 
Non-GAAP Operating Income$156,163 $71,168 $132,508 $227,331 $178,352 
Non-GAAP Operating Profit28.8 %19.0 %27.5 %24.8 %22.3 %
Operating Expense Reconciliation
GAAP Operating Expenses$150,738 $142,133 $140,847 $292,871 $282,441 
Amortization of acquisition intangibles(1,864)(1,972)(2,170)(3,836)(4,340)
Stock-based compensation expense - R&D(15,844)(15,763)(15,472)(31,607)(31,424)
Stock-based compensation expense - SG&A(6,248)(5,356)(5,498)(11,604)(11,976)
Lease impairment— 1,019 — 1,019 — 
Restructuring costs— — (2,319)— (2,319)
Acquisition-related costs— — (939)— (4,105)
Non-GAAP Operating Expenses$126,782 $118,023 $114,449 $244,805 $228,277 
Gross Margin/Profit Reconciliation
GAAP Gross Profit$282,590 $188,925 $246,596 $471,515 $405,983 
GAAP Gross Margin52.2 %50.5 %51.3 %51.5 %50.9 %
Stock-based compensation expense - COGS355 266 361 621 646 
Non-GAAP Gross Profit$282,945 $189,191 $246,957 $472,136 $406,629 
Non-GAAP Gross Margin52.2 %50.6 %51.3 %51.5 %51.0 %
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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands, except per share data; unaudited)
(not prepared in accordance with GAAP)
Three Months Ended
Six Months Ended
Sep. 28,Jun. 29,Sep. 23,Sep. 28,Sep. 23,
20242024202320242023
Effective Tax Rate ReconciliationQ2'25Q1'25Q2'24Q2'25Q2'24
GAAP Tax Expense$37,865 $14,508 $34,001 $52,373 $41,171 
GAAP Effective Tax Rate27.0 %25.6 %31.1 %26.6 %31.1 %
Adjustments to income taxes1,162 4,105 604 5,267 6,232 
Non-GAAP Tax Expense$39,027 $18,613 $34,605 $57,640 $47,403 
Non-GAAP Effective Tax Rate23.8 %23.0 %25.4 %23.5 %25.4 %
Tax Impact to EPS Reconciliation
GAAP Tax Expense $0.68 $0.26 $0.60 $0.94 $0.73 
Adjustments to income taxes0.02 0.07 0.01 0.10 0.11 
Non-GAAP Tax Expense$0.70 $0.33 $0.61 $1.04 $0.84 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Sep. 28,Mar. 30,Sep. 23,
202420242023
ASSETS
Current assets
Cash and cash equivalents$445,759 $502,764 $277,805 
Marketable securities32,499 23,778 34,636 
Accounts receivable, net324,098 162,478 271,894 
Inventories271,765 227,248 328,930 
Prepaid wafers71,740 86,679 79,468 
Other current assets79,044 103,245 104,138 
Total current Assets1,224,905 1,106,192 1,096,871 
Long-term marketable securities228,302 173,374 40,042 
Right-of-use lease assets133,316 138,288 144,104 
Property and equipment, net168,265 170,175 171,047 
Intangibles, net25,700 29,578 33,801 
Goodwill435,936 435,936 435,936 
Deferred tax asset48,619 48,649 44,126 
Long-term prepaid wafers37,804 60,750 94,474 
Other assets53,292 68,634 44,052 
 Total assets$2,356,139 $2,231,576 $2,104,453 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$91,899 $55,545 $87,340 
Accrued salaries and benefits51,861 47,612 46,504 
Lease liability22,800 20,640 19,859 
Other accrued liabilities62,716 62,596 47,487 
Total current liabilities229,276 186,393 201,190 
Non-current lease liability129,806 134,576 136,042 
Non-current income taxes42,683 52,013 51,589 
Other long-term liabilities26,247 41,580 7,277 
Total long-term liabilities198,736 228,169 194,908 
Stockholders' equity:
Capital stock1,819,589 1,760,701 1,712,710 
Accumulated earnings (deficit)107,233 58,916 (1,213)
Accumulated other comprehensive income (loss)
1,305 (2,603)(3,142)
Total stockholders' equity1,928,127 1,817,014 1,708,355 
Total liabilities and stockholders' equity$2,356,139 $2,231,576 $2,104,453 
    
Prepared in accordance with Generally Accepted Accounting Principles


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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
Sep. 28,Sep. 23,
20242023
Q2'25Q2'24
Cash flows from operating activities:
Net income$102,140 $75,407 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization12,618 11,610 
Stock-based compensation expense22,447 21,331 
Deferred income taxes4,984 810 
Loss on retirement or write-off of long-lived assets12 58 
Other non-cash charges87 274 
Restructuring costs— 2,319 
Net change in operating assets and liabilities:
Accounts receivable, net(134,019)(86,046)
Inventories(39,199)(27,974)
Prepaid wafers25,531 21,058 
Other assets(341)(14,392)
Accounts payable and other accrued liabilities27,268 10,200 
Income taxes payable(13,297)(12,859)
Acquisition-related liabilities— (24,527)
Net cash provided by (used in) operating activities8,231 (22,731)
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities835 7,194 
Purchases of available-for-sale marketable securities(3,577)(7,819)
Purchases of property, equipment and software(2,670)(8,470)
Investments in technology(70)(57)
Net cash used in investing activities(5,482)(9,152)
Cash flows from financing activities:
Net proceeds from the issuance of common stock
4,859 — 
Repurchase of stock to satisfy employee tax withholding obligations(3,207)(2,082)
Repurchase and retirement of common stock(49,993)(40,576)
Net cash used in financing activities(48,341)(42,658)
Net decrease in cash and cash equivalents(45,592)(74,541)
Cash and cash equivalents at beginning of period491,351 352,346 
Cash and cash equivalents at end of period$445,759 $277,805 
Prepared in accordance with Generally Accepted Accounting Principles
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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands; unaudited)
Free cash flow, a non-GAAP financial measure, is GAAP cash flow from operations (or cash provided by operating activities) less capital expenditures. Capital expenditures include purchases of property, equipment and software as well as investments in technology, as presented within our GAAP Consolidated Condensed Statement of Cash Flows. Free cash flow margin represents free cash flow divided by revenue.
Twelve Months EndedThree Months Ended
Sep. 28,Sep. 28,Jun. 29,Mar. 30,Dec. 30,
20242024202420242023
Q2'25Q2'25Q1'25Q4'24Q3'24
Net cash provided by operating activities (GAAP)
$579,610 $8,231 $87,161 $170,526 $313,692 
Capital expenditures(30,393)(2,740)(10,145)(7,695)(9,813)
Free Cash Flow (Non-GAAP)$549,217 $5,491 $77,016 $162,831 $303,879 
Cash Flow from Operations as a Percentage of Revenue (GAAP)30 %2 %23 %46 %51 %
Capital Expenditures as a Percentage of Revenue (GAAP)2 %1 %3 %2 %2 %
Free Cash Flow Margin (Non-GAAP)29 %1 %21 %44 %49 %

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
Q3 FY25
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses$148 - 154
Stock-based compensation expense(22)
Amortization of acquisition intangibles(2)
Non-GAAP Operating Expenses$124 - 130
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