EX-99.1 3 pressrelease.htm EX-99.1 Document
Exhibit 99.1
    
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FINANCIAL NEWS


    
Cirrus Logic Reports Fiscal Third Quarter Revenue of $555.7 Million


AUSTIN, Texas – February 4, 2025 – 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 third quarter of fiscal year 2025, which ended December 28, 2024, as well as the company’s current business outlook.
“Cirrus Logic delivered revenue significantly above the top end of our guidance range in the December quarter as shipments into smartphones exceeded our expectations,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we experienced strong demand for our smartphone audio components, including our latest-generation custom boosted amplifier and first 22-nanometer smart codec. Additionally, we gained momentum in our laptop business as we were featured as part of the Intel Arrow Lake reference design, began sampling our latest amplifier and codec specifically designed for laptops, and expanded our breadth of content across a variety of devices. With a compelling roadmap of products and a proven track record of execution, we believe Cirrus Logic is well-positioned to grow long-term shareholder value.”

Reported Financial Results – Third Quarter FY25
•Revenue of $555.7 million;
•GAAP and non-GAAP gross margin of 53.6 percent;
•GAAP operating expenses of $152.0 million and non-GAAP operating expenses of $129.2 million; and
•GAAP earnings per share of $2.11 and non-GAAP earnings per share of $2.51.

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



Business Outlook – Fourth Quarter FY25
•Revenue is expected to range between $350 million and $410 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 $141 million and $147 million, including approximately $20 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $119 million and $125 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 grow long-term shareholder value; and our estimates for the fourth 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 fourth 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 Nine Months Ended
Dec. 28,Sep. 28,Dec. 30,Dec. 28,Dec. 30,
20242024202320242023
Q3'25Q2'25Q3'24Q3'25Q3'24
Audio$346,272 $316,588 $378,597 $881,830 $857,258 
High-Performance Mixed-Signal209,466 225,269 240,387 589,791 559,805 
Net sales555,738 541,857 618,984 1,471,621 1,417,063 
Cost of sales257,951 259,267 301,520 702,319 693,616 
Gross profit297,787 282,590 317,464 769,302 723,447 
Gross margin53.6 %52.2 %51.3 %52.3 %51.1 %
Research and development112,976 112,925 112,672 331,264 323,092 
Selling, general and administrative39,042 37,813 37,604 113,625 107,306 
Restructuring costs— — (360)— 1,959 
Total operating expenses152,018 150,738 149,916 444,889 432,357 
Income from operations145,769 131,852 167,548 324,413 291,090 
Interest income8,146 8,134 4,889 24,482 13,218 
Other income (expense)(214)19 (337)1,414 (30)
Income before income taxes153,701 140,005 172,100 350,309 304,278 
Provision for income taxes37,696 37,865 33,377 90,069 74,548 
Net income $116,005 $102,140 $138,723 $260,240 $229,730 
Basic earnings per share$2.19 $1.92 $2.57 $4.89 $4.22 
Diluted earnings per share:$2.11 $1.83 $2.50 $4.69 $4.09 
Weighted average number of shares:
Basic53,081 53,275 54,016 53,263 54,449 
Diluted55,076 55,800 55,592 55,529 56,160 
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 Nine Months Ended
Dec. 28,Sep. 28,Dec. 30,Dec. 28,Dec. 30,
20242024202320242023
Net Income ReconciliationQ3'25Q2'25Q3'24Q3'25Q3'24
GAAP Net Income$116,005 $102,140 $138,723 $260,240 $229,730 
Amortization of acquisition intangibles1,647 1,864 1,972 5,483 6,312 
Stock-based compensation expense20,823 22,447 23,067 64,655 67,113 
Lease impairment661 — — 1,680 — 
Restructuring costs— — (360)— 1,959 
Acquisition-related costs— — — — 4,105 
Adjustment to income taxes(827)(1,162)(2,769)(6,094)(9,001)
Non-GAAP Net Income$138,309 $125,289 $160,633 $325,964 $300,218 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$2.11 $1.83 $2.50 $4.69 $4.09 
Effect of Amortization of acquisition intangibles0.03 0.04 0.04 0.10 0.11 
Effect of Stock-based compensation expense0.38 0.40 0.41 1.16 1.20 
Effect of Lease impairment0.01 — — 0.03 — 
Effect of Restructuring costs— — (0.01)— 0.04 
Effect of Acquisition-related costs— — — — 0.07 
Effect of Adjustment to income taxes(0.02)(0.02)(0.05)(0.11)(0.16)
Non-GAAP Diluted earnings per share$2.51 $2.25 $2.89 $5.87 $5.35 
Operating Income Reconciliation
GAAP Operating Income$145,769 $131,852 $167,548 $324,413 $291,090 
GAAP Operating Profit 26.2 %24.3 %27.1 %22.0 %20.5 %
Amortization of acquisition intangibles1,647 1,864 1,972 5,483 6,312 
Stock-based compensation expense - COGS351 355 395 972 1,041 
Stock-based compensation expense - R&D14,498 15,844 16,771 46,105 48,195 
Stock-based compensation expense - SG&A5,974 6,248 5,901 17,578 17,877 
Lease impairment661 — — 1,680 — 
Restructuring costs— — (360)— 1,959 
Acquisition-related costs— — — — 4,105 
Non-GAAP Operating Income$168,900 $156,163 $192,227 $396,231 $370,579 
Non-GAAP Operating Profit30.4 %28.8 %31.1 %26.9 %26.2 %
Operating Expense Reconciliation
GAAP Operating Expenses$152,018 $150,738 $149,916 $444,889 $432,357 
Amortization of acquisition intangibles(1,647)(1,864)(1,972)(5,483)(6,312)
Stock-based compensation expense - R&D(14,498)(15,844)(16,771)(46,105)(48,195)
Stock-based compensation expense - SG&A(5,974)(6,248)(5,901)(17,578)(17,877)
Lease impairment661 — — 1,680 — 
Restructuring costs— — 360 — (1,959)
Acquisition-related costs— — — — (4,105)
Non-GAAP Operating Expenses$129,238 $126,782 $125,632 $374,043 $353,909 
Gross Margin/Profit Reconciliation
GAAP Gross Profit$297,787 $282,590 $317,464 $769,302 $723,447 
GAAP Gross Margin53.6 %52.2 %51.3 %52.3 %51.1 %
Stock-based compensation expense - COGS351 355 395 972 1,041 
Non-GAAP Gross Profit$298,138 $282,945 $317,859 $770,274 $724,488 
Non-GAAP Gross Margin53.6 %52.2 %51.4 %52.3 %51.1 %
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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 EndedNine Months Ended
Dec. 28,Sep. 28,Dec. 30,Dec. 28,Dec. 30,
20242024202320242023
Effective Tax Rate ReconciliationQ3'25Q2'25Q3'24Q3'25Q3'24
GAAP Tax Expense$37,696 $37,865 $33,377 $90,069 $74,548 
GAAP Effective Tax Rate24.5 %27.0 %19.4 %25.7 %24.5 %
Adjustments to income taxes827 1,162 2,769 6,094 9,001 
Non-GAAP Tax Expense$38,523 $39,027 $36,146 $96,163 $83,549 
Non-GAAP Effective Tax Rate21.8 %23.8 %18.4 %22.8 %21.8 %
Tax Impact to EPS Reconciliation
GAAP Tax Expense $0.68 $0.68 $0.60 $1.62 $1.33 
Adjustments to income taxes0.02 0.02 0.05 0.11 0.16 
Non-GAAP Tax Expense$0.70 $0.70 $0.65 $1.73 $1.49 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Dec. 28,Mar. 30,Dec. 30,
202420242023
ASSETS
Current assets
Cash and cash equivalents$526,444 $502,764 $483,931 
Marketable securities37,535 23,778 32,842 
Accounts receivable, net261,943 162,478 217,269 
Inventories275,558 227,248 256,675 
Prepaid wafers66,113 86,679 84,854 
Other current assets82,857 103,245 109,814 
Total current Assets1,250,450 1,106,192 1,185,385 
Long-term marketable securities252,594 173,374 70,260 
Right-of-use lease assets129,597 138,288 140,993 
Property and equipment, net163,837 170,175 167,579 
Intangibles, net23,957 29,578 31,677 
Goodwill435,936 435,936 435,936 
Deferred tax asset40,895 48,649 34,116 
Long-term prepaid wafers23,020 60,750 73,492 
Other assets42,954 68,634 77,675 
 Total assets$2,363,240 $2,231,576 $2,217,113 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$77,907 $55,545 $56,231 
Accrued salaries and benefits48,029 47,612 44,352 
Lease liability21,858 20,640 19,906 
Other accrued liabilities63,119 62,596 58,105 
Total current liabilities210,913 186,393 178,594 
Non-current lease liability124,622 134,576 138,415 
Non-current income taxes43,401 52,013 52,247 
Other long-term liabilities21,506 41,580 47,097 
Total long-term liabilities189,529 228,169 237,759 
Stockholders' equity:
Capital stock1,840,791 1,760,701 1,735,824 
Accumulated earnings
124,101 58,916 66,633 
Accumulated other comprehensive loss
(2,094)(2,603)(1,697)
Total stockholders' equity1,962,798 1,817,014 1,800,760 
Total liabilities and stockholders' equity$2,363,240 $2,231,576 $2,217,113 
    
Prepared in accordance with Generally Accepted Accounting Principles


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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
Dec. 28,Dec. 30,
20242023
Q3'25Q3'24
Cash flows from operating activities:
Net income$116,005 $138,723 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization12,824 12,732 
Stock-based compensation expense20,823 23,067 
Deferred income taxes8,379 9,723 
Loss on retirement or write-off of long-lived assets369 10 
Other non-cash charges(379)668 
Restructuring costs— (360)
Net change in operating assets and liabilities:
Accounts receivable, net62,155 54,048 
Inventories(3,793)72,257 
Prepaid wafers20,411 15,596 
Other assets1,720 17,973 
Accounts payable and other accrued liabilities(21,556)(32,123)
Income taxes payable1,630 1,378 
Net cash provided by operating activities
218,588 313,692 
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities12,423 5,176 
Purchases of available-for-sale marketable securities(44,868)(32,334)
Purchases of property, equipment and software(6,687)(9,813)
Net cash used in investing activities(39,132)(36,971)
Cash flows from financing activities:
Net proceeds from the issuance of common stock
378 50 
Repurchase of stock to satisfy employee tax withholding obligations(29,112)(13,722)
Repurchase and retirement of common stock(70,037)(56,923)
Net cash used in financing activities(98,771)(70,595)
Net increase in cash and cash equivalents
80,685 206,126 
Cash and cash equivalents at beginning of period445,759 277,805 
Cash and cash equivalents at end of period$526,444 $483,931 
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
Dec. 28,Dec. 28,Sep. 28,Jun. 29,Mar. 30,
20242024202420242024
Q3'25Q3'25Q2'25Q1'25Q4'24
Net cash provided by operating activities (GAAP)
$484,506 $218,588 $8,231 $87,161 $170,526 
Capital expenditures(27,267)(6,687)(2,740)(10,145)(7,695)
Free Cash Flow (Non-GAAP)$457,239 $211,901 $5,491 $77,016 $162,831 
Cash Flow from Operations as a Percentage of Revenue (GAAP)26 %39 %2 %23 %46 %
Capital Expenditures as a Percentage of Revenue (GAAP)1 %1 %1 %3 %2 %
Free Cash Flow Margin (Non-GAAP)25 %38 %1 %21 %44 %

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
Q4 FY25
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses$141 - 147
Stock-based compensation expense(20)
Amortization of acquisition intangibles(2)
Non-GAAP Operating Expenses$119 - 125
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