Sign In  |  Register  |  About San Rafael  |  Contact Us

San Rafael, CA
September 01, 2020 1:37pm
7-Day Forecast | Traffic
  • Search Hotels in San Rafael

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Cirrus Logic Reports Q1 FY20 Revenue of $238.3 Million

Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-performance, low-power ICs for audio, voice and other signal-processing applications, 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 2020, which ended June 29, 2019, as well as the company’s current business outlook.

“Cirrus Logic reported revenue for the June quarter at the high-end of guidance as we experienced solid demand for amplifiers and smart codecs shipping in handsets,” said Jason Rhode, president and chief executive officer. “We remain focused on product development execution, increasing penetration of new and existing customers and continuing to capitalize on demand for low-power, low-latency audio, voice and other signal-processing components, which we believe will position the company for long-term success.”

Reported Financial Results – First Quarter FY20

  • Revenue of $238.3 million;
  • GAAP and non-GAAP gross margin of 51.4 percent and 51.5 percent, respectively;
  • GAAP operating expenses of $118.4 million and non-GAAP operating expenses of $99.6 million; and
  • GAAP earnings per share of $0.08 and non-GAAP earnings per share of $0.35.

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

Business Outlook – Second Quarter FY20

  • Revenue is expected to range between $300 million and $340 million;
  • GAAP gross margin is expected to be between 51 percent and 53 percent; and
  • Combined GAAP R&D and SG&A expenses are expected to range between $118 million and $124 million, which includes approximately $13 million in stock-based compensation and $7 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: 8745219).

Cirrus Logic, Inc.

Cirrus Logic is a leader in high-performance, low-power ICs for audio, voice and other signal-processing applications. Cirrus Logic’s products span the entire audio signal chain, from capture to playback, providing innovative products for the world’s top smartphones, tablets, digital headsets, wearables and emerging smart home 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, Cirrus has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, diluted share count, operating income and profit, operating expenses, gross margin and profit, tax expense and effective tax rate 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 our future growth opportunities, along with estimates for the second quarter fiscal year 2020 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. These risks and uncertainties include, but are not limited to, the following: the level of orders and shipments during the second quarter of fiscal year 2020, 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, 2019 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 undertake no 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. 29,

Mar. 30,

Jun. 30,

2019

2019

2018

Q1'20Q4'19Q1'19
Portable products

$

202,938

$

207,099

$

212,260

Non-portable and other products

35,315

33,342

42,223

Net sales

238,253

240,441

254,483

Cost of sales

115,759

115,802

129,924

Gross profit

122,494

124,639

124,559

Gross margin

51.4

%

51.8

%

48.9

%

 
Research and development

88,830

92,251

97,932

Selling, general and administrative

29,520

30,194

32,784

Gain on sale of assets

-

(4,913

)

-

Total operating expenses

118,350

117,532

130,716

 
Income (loss) from operations

4,144

7,107

(6,157

)

 
Interest income

2,285

2,248

1,447

Other (expense) income

(378

)

(150

)

210

Income (loss) before income taxes

6,051

9,205

(4,500

)

Provision (benefit) for income taxes

1,433

3,048

(228

)

Net income (loss)

$

4,618

$

6,157

$

(4,272

)

 
Basic earnings (loss) per share:

$

0.08

$

0.10

$

(0.07

)

Diluted earnings (loss) per share:

$

0.08

$

0.10

$

(0.07

)

 
Weighted average number of shares:
Basic

58,540

59,031

61,462

Diluted

60,258

60,199

61,462

 

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. 29,

Mar. 30,

Jun. 30,

2019

2019

2018

Net Income (Loss) Reconciliation

Q1'20

Q4'19

Q1'19

GAAP Net Income (Loss)

$

4,618

$

6,157

$

(4,272

)

Amortization of acquisition intangibles

7,228

7,228

13,266

Stock-based compensation expense

11,786

12,583

12,794

Gain on asset sale

-

(4,913

)

-

Adjustment to income taxes

(2,803

)

1,202

(3,926

)

Non-GAAP Net Income

$

20,829

$

22,257

$

17,862

 

Earnings (Loss) Per Share Reconciliation

GAAP Diluted earnings (loss) per share

$

0.08

$

0.10

$

(0.07

)

Effect of Amortization of acquisition intangibles

0.12

0.12

0.21

Effect of Stock-based compensation expense

0.20

0.21

0.20

Effect of Gain on asset sale

-

(0.08

)

-

Effect of Adjustment to income taxes

(0.05

)

0.02

(0.06

)

Non-GAAP Diluted earnings per share

$

0.35

$

0.37

$

0.28

 

Diluted Shares Reconciliation

GAAP Diluted shares

60,258

60,199

61,462

Effect of weighted dilutive shares

-

-

1,723

 

Non-GAAP Diluted shares

60,258

60,199

63,185

 

Operating Income (Loss) Reconciliation

GAAP Operating Income (Loss)

$

4,144

$

7,107

$

(6,157

)

GAAP Operating Profit (Loss)

2

%

3

%

-2

%

Amortization of acquisition intangibles

7,228

7,228

13,266

Stock-based compensation expense - COGS

241

288

199

Stock-based compensation expense - R&D

7,240

8,270

7,250

Stock-based compensation expense - SG&A

4,305

4,025

5,345

Gain on asset sale

-

(4,913

)

-

Non-GAAP Operating Income

$

23,158

$

22,005

$

19,903

Non-GAAP Operating Profit

10

%

9

%

8

%

 

Operating Expense Reconciliation

GAAP Operating Expenses

$

118,350

$

117,532

$

130,716

Amortization of acquisition intangibles

(7,228

)

(7,228

)

(13,266

)

Stock-based compensation expense - R&D

(7,240

)

(8,270

)

(7,250

)

Stock-based compensation expense - SG&A

(4,305

)

(4,025

)

(5,345

)

Gain on asset sale

-

4,913

-

Non-GAAP Operating Expenses

$

99,577

$

102,922

$

104,855

 

Gross Margin/Profit Reconciliation

GAAP Gross Profit

$

122,494

$

124,639

$

124,559

GAAP Gross Margin

51.4

%

51.8

%

48.9

%

Stock-based compensation expense - COGS

241

288

199

Non-GAAP Gross Profit

$

122,735

$

124,927

$

124,758

Non-GAAP Gross Margin

51.5

%

52.0

%

49.0

%

 

Effective Tax Rate Reconciliation

GAAP Tax Expense (Benefit)

$

1,433

$

3,048

$

(228

)

GAAP Effective Tax Rate

23.7

%

33.1

%

5.1

%

Adjustments to income taxes

2,803

(1,202

)

3,926

Non-GAAP Tax Expense

$

4,236

$

1,846

$

3,698

Non-GAAP Effective Tax Rate

16.9

%

7.7

%

17.2

%

 

Tax Impact to EPS Reconciliation

GAAP Tax Expense

$

0.02

$

0.05

$

-

Adjustments to income taxes

0.05

(0.02

)

0.06

Non-GAAP Tax Expense

$

0.07

$

0.03

$

0.06

CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands

Jun. 29,

Mar. 30,

Jun. 30,

2019

2019

2018

ASSETS
Current assets
Cash and cash equivalents

$

198,077

$

216,172

$

186,459

Marketable securities

52,350

70,183

39,877

Accounts receivable, net

111,497

120,656

126,604

Inventories

146,317

164,733

173,063

Other current assets

55,834

53,239

49,118

Total current Assets

564,075

624,983

575,121

 
Long-term marketable securities

205,079

158,968

159,334

Right-of-use lease assets

146,035

-

-

Property and equipment, net

182,042

186,185

195,804

Intangibles, net

62,496

67,847

99,366

Goodwill

286,370

286,241

287,042

Deferred tax asset

9,394

8,727

15,985

Other assets

14,625

19,689

34,151

Total assets

$

1,470,116

$

1,352,640

$

1,366,803

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable

$

60,408

$

48,398

$

53,655

Accrued salaries and benefits

23,416

29,289

22,924

Other accrued liabilities

47,382

37,853

42,065

Total current liabilities

131,206

115,540

118,644

 
Non-current lease liability

137,180

-

-

Non-current income taxes

79,484

78,309

94,612

Other long-term liabilities

4,996

18,551

26,451

 
Stockholders' equity:
Capital stock

1,375,777

1,363,736

1,325,287

Accumulated deficit

(258,899

)

(222,430

)

(184,673

)

Accumulated other comprehensive income (loss)

372

(1,066

)

(13,518

)

Total stockholders' equity

1,117,250

1,140,240

1,127,096

Total liabilities and stockholders' equity

$

1,470,116

$

1,352,640

$

1,366,803

 
Prepared in accordance with Generally Accepted Accounting Principles

Contacts:

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

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanRafael.com & California Media Partners, LLC. All rights reserved.