Cirrus Logic Reports Fiscal First Quarter Revenue of $374.0 Million

AUSTIN, Texas--()--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 first quarter of fiscal year 2025, which ended June 29, 2024, as well as the company’s current business outlook.

Cirrus Logic delivered revenue above the top end of our guidance range in the June quarter driven by stronger-than-expected shipments into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “In addition to these strong results, during the quarter we began ramping production of our custom boosted amplifier and first 22-nanometer smart codec ahead of new smartphone launches that are expected later this year. We also executed against our growth strategy to drive product and end-market diversification as we saw strong design activity in laptops and introduced the latest products in a series of data converters targeting professional audio, consumer, and industrial applications. With a compelling roadmap of products and an outstanding track record of execution, we believe we are well-positioned to grow long-term shareholder value.”

Reported Financial Results – First Quarter FY25

  • Revenue of $374.0 million;
  • GAAP and non-GAAP gross margin of 50.5 percent and 50.6 percent;
  • GAAP operating expenses of $142.1 million and non-GAAP operating expenses of $118.0 million; and
  • GAAP earnings per share of $0.76 and non-GAAP earnings per share of $1.12.

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

Business Outlook – Second Quarter FY25

  • Revenue is expected to range between $490 million and $550 million;
  • GAAP gross margin is forecasted to be between 50 percent and 52 percent; and
  • Combined GAAP R&D and SG&A expenses are anticipated to range between $149 million and $155 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 $125 million and $131 million.

Cirrus Logic will host a live Q&A session at 5 p.m. EDT 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.

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 statements about our expectation for new smartphone launches later this year; our belief that we are well-positioned to grow long-term shareholder value; and our estimates for the second 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 second 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.

Summary Financial Data Follows:

 
 
 

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(in thousands, except per share data; unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Jun. 29,

 

Mar. 30,

 

Jun. 24,

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

Q1'25

 

Q4'24

 

Q1'24

Audio

$

218,970

 

 

$

226,681

 

 

$

195,806

 

High-Performance Mixed-Signal

 

155,056

 

 

 

145,146

 

 

 

121,210

 

Net sales

 

374,026

 

 

 

371,827

 

 

 

317,016

 

Cost of sales

 

185,101

 

 

 

179,202

 

 

 

157,629

 

Gross profit

 

188,925

 

 

 

192,625

 

 

 

159,387

 

Gross margin

 

50.5

%

 

 

51.8

%

 

 

50.3

%

 

 

 

 

 

 

Research and development

 

105,363

 

 

 

103,383

 

 

 

106,215

 

Selling, general and administrative

 

36,770

 

 

 

36,866

 

 

 

35,379

 

Total operating expenses

 

142,133

 

 

 

140,249

 

 

 

141,594

 

 

 

 

 

 

 

Income from operations

 

46,792

 

 

 

52,376

 

 

 

17,793

 

 

 

 

 

 

 

Interest income

 

8,202

 

 

 

7,360

 

 

 

4,600

 

Other income (expense)

 

1,609

 

 

 

(78

)

 

 

377

 

Income before income taxes

 

56,603

 

 

 

59,658

 

 

 

22,770

 

Provision for income taxes

 

14,508

 

 

 

14,816

 

 

 

7,170

 

Net income

$

42,095

 

 

$

44,842

 

 

$

15,600

 

 

 

 

 

 

 

Basic earnings per share

$

0.79

 

 

$

0.83

 

 

$

0.28

 

Diluted earnings per share:

$

0.76

 

 

$

0.81

 

 

$

0.28

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

Basic

 

53,433

 

 

 

53,739

 

 

 

54,862

 

Diluted

 

55,665

 

 

 

55,559

 

 

 

56,631

 

 

 

 

 

 

 

Prepared in accordance with Generally Accepted Accounting Principles

 
 
 
 

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

 

Jun. 29,

 

Mar. 30,

 

Jun. 24,

 

 

2024

 

 

 

2024

 

 

 

2023

 

Net Income Reconciliation

Q1'25

 

Q4'24

 

Q1'24

GAAP Net Income

$

42,095

 

 

$

44,842

 

 

$

15,600

 

Amortization of acquisition intangibles

 

1,972

 

 

 

1,973

 

 

 

2,170

 

Stock-based compensation expense

 

21,385

 

 

 

22,158

 

 

 

22,715

 

Lease impairment

 

1,019

 

 

 

 

 

 

 

Acquisition-related costs

 

 

 

 

 

 

 

3,166

 

Adjustment to income taxes

 

(4,105

)

 

 

75

 

 

 

(5,628

)

Non-GAAP Net Income

$

62,366

 

 

$

69,048

 

 

$

38,023

 

 

 

 

 

 

 

Earnings Per Share Reconciliation

 

 

 

 

 

GAAP Diluted earnings per share

$

0.76

 

 

$

0.81

 

 

$

0.28

 

Effect of Amortization of acquisition intangibles

 

0.03

 

 

 

0.03

 

 

 

0.04

 

Effect of Stock-based compensation expense

 

0.38

 

 

 

0.40

 

 

 

0.40

 

Effect of Lease impairment

 

0.02

 

 

 

 

 

 

 

Effect of Acquisition-related costs

 

 

 

 

 

 

 

0.05

 

Effect of Adjustment to income taxes

 

(0.07

)

 

 

 

 

 

(0.10

)

Non-GAAP Diluted earnings per share

$

1.12

 

 

$

1.24

 

 

$

0.67

 

 

 

 

 

 

 

Operating Income Reconciliation

 

 

 

 

 

GAAP Operating Income

$

46,792

 

 

$

52,376

 

 

$

17,793

 

GAAP Operating Profit

 

12.5

%

 

 

14.1

%

 

 

5.6

%

Amortization of acquisition intangibles

 

1,972

 

 

 

1,973

 

 

 

2,170

 

Stock-based compensation expense - COGS

 

266

 

 

 

362

 

 

 

285

 

Stock-based compensation expense - R&D

 

15,763

 

 

 

15,483

 

 

 

15,952

 

Stock-based compensation expense - SG&A

 

5,356

 

 

 

6,313

 

 

 

6,478

 

Lease impairment

 

1,019

 

 

 

 

 

 

 

Acquisition-related costs

 

 

 

 

 

 

 

3,166

 

Non-GAAP Operating Income

$

71,168

 

 

$

76,507

 

 

$

45,844

 

Non-GAAP Operating Profit

 

19.0

%

 

 

20.6

%

 

 

14.5

%

 

 

 

 

 

 

Operating Expense Reconciliation

 

 

 

 

 

GAAP Operating Expenses

$

142,133

 

 

$

140,249

 

 

$

141,594

 

Amortization of acquisition intangibles

 

(1,972

)

 

 

(1,973

)

 

 

(2,170

)

Stock-based compensation expense - R&D

 

(15,763

)

 

 

(15,483

)

 

 

(15,952

)

Stock-based compensation expense - SG&A

 

(5,356

)

 

 

(6,313

)

 

 

(6,478

)

Lease impairment

 

1,019

 

 

 

 

 

 

 

Acquisition-related costs

 

 

 

 

 

 

 

(3,166

)

Non-GAAP Operating Expenses

$

118,023

 

 

$

116,480

 

 

$

113,828

 

 

 

 

 

 

 

Gross Margin/Profit Reconciliation

 

 

 

 

 

GAAP Gross Profit

$

188,925

 

 

$

192,625

 

 

$

159,387

 

GAAP Gross Margin

 

50.5

%

 

 

51.8

%

 

 

50.3

%

Stock-based compensation expense - COGS

 

266

 

 

 

362

 

 

 

285

 

Non-GAAP Gross Profit

$

189,191

 

 

$

192,987

 

 

$

159,672

 

Non-GAAP Gross Margin

 

50.6

%

 

 

51.9

%

 

 

50.4

%

 

 

 

 

 

 

GAAP Tax Expense

$

14,508

 

 

$

14,816

 

 

$

7,170

 

GAAP Effective Tax Rate

 

25.6

%

 

 

24.8

%

 

 

31.5

%

Adjustments to income taxes

 

4,105

 

 

 

(75

)

 

 

5,628

 

Non-GAAP Tax Expense

$

18,613

 

 

$

14,741

 

 

$

12,798

 

Non-GAAP Effective Tax Rate

 

23.0

%

 

 

17.6

%

 

 

25.2

%

 

 

 

 

 

 

Tax Impact to EPS Reconciliation

 

 

 

 

 

GAAP Tax Expense

$

0.26

 

 

$

0.27

 

 

$

0.13

 

Adjustments to income taxes

 

0.07

 

 

 

 

 

 

0.10

 

Non-GAAP Tax Expense

$

0.33

 

 

$

0.27

 

 

$

0.23

 

 
 
 
 

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands; unaudited)

 

 

 

 

 

 

 

 

 

Jun. 29,

 

Mar. 30,

 

Jun. 24,

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

491,351

 

 

$

502,764

 

 

$

352,346

 

Marketable securities

 

 

25,680

 

 

 

23,778

 

 

 

35,765

 

Accounts receivable, net

 

 

190,079

 

 

 

162,478

 

 

 

186,033

 

Inventories

 

 

232,566

 

 

 

227,248

 

 

 

300,956

 

Prepaid wafers

 

 

84,700

 

 

 

86,679

 

 

 

84,739

 

Other current assets

 

 

77,365

 

 

 

103,245

 

 

 

88,829

 

Total current Assets

 

 

1,101,741

 

 

 

1,106,192

 

 

 

1,048,668

 

 

 

 

 

 

 

 

Long-term marketable securities

 

 

227,527

 

 

 

173,374

 

 

 

38,029

 

Right-of-use lease assets

 

 

136,295

 

 

 

138,288

 

 

 

125,538

 

Property and equipment, net

 

 

170,953

 

 

 

170,175

 

 

 

167,238

 

Intangibles, net

 

 

27,624

 

 

 

29,578

 

 

 

36,447

 

Goodwill

 

 

435,936

 

 

 

435,936

 

 

 

435,936

 

Deferred tax asset

 

 

54,622

 

 

 

48,649

 

 

 

44,991

 

Long-term prepaid wafers

 

 

50,375

 

 

 

60,750

 

 

 

110,262

 

Other assets

 

 

60,552

 

 

 

68,634

 

 

 

49,483

 

Total assets

 

$

2,265,625

 

 

$

2,231,576

 

 

$

2,056,592

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

77,562

 

 

$

55,545

 

 

$

75,941

 

Accrued salaries and benefits

 

 

41,101

 

 

 

47,612

 

 

 

36,465

 

Lease liability

 

 

22,058

 

 

 

20,640

 

 

 

19,903

 

Acquisition-related liabilities

 

 

 

 

 

 

 

 

24,527

 

Other accrued liabilities

 

 

61,021

 

 

 

62,596

 

 

 

46,018

 

Total current liabilities

 

 

201,742

 

 

 

186,393

 

 

 

202,854

 

 

 

 

 

 

 

 

Non-current lease liability

 

 

132,016

 

 

 

134,576

 

 

 

125,071

 

Non-current income taxes

 

 

52,704

 

 

 

52,013

 

 

 

59,587

 

Other long-term liabilities

 

 

31,533

 

 

 

41,580

 

 

 

12,286

 

Total long-term liabilities

 

 

216,253

 

 

 

228,169

 

 

 

196,944

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Capital stock

 

 

1,792,283

 

 

 

1,760,701

 

 

 

1,693,420

 

Accumulated earnings (deficit)

 

 

58,591

 

 

 

58,916

 

 

 

(33,621

)

Accumulated other comprehensive loss

 

 

(3,244

)

 

 

(2,603

)

 

 

(3,005

)

Total stockholders' equity

 

 

1,847,630

 

 

 

1,817,014

 

 

 

1,656,794

 

Total liabilities and stockholders' equity

 

$

2,265,625

 

 

$

2,231,576

 

 

$

2,056,592

 

 

 

 

 

 

 

 

Prepared in accordance with Generally Accepted Accounting Principles

 
 
 
 

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

(in thousands; unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

Jun. 29,

 

Jun. 24,

 

 

 

2024

 

 

 

2023

 

 

 

Q1'25

 

Q1'24

Cash flows from operating activities:

 

 

 

 

Net income

 

$

42,095

 

 

$

15,600

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation and amortization

 

 

12,359

 

 

 

11,941

 

Stock-based compensation expense

 

 

21,385

 

 

 

22,715

 

Deferred income taxes

 

 

(5,897

)

 

 

(9,411

)

Loss on retirement or write-off of long-lived assets

 

 

 

 

 

6

 

Other non-cash charges

 

 

1,104

 

 

 

1,334

 

Net change in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

(27,601

)

 

 

(35,560

)

Inventories

 

 

(5,318

)

 

 

(67,506

)

Prepaid wafers

 

 

12,354

 

 

 

 

Other assets

 

 

(5,459

)

 

 

8,101

 

Accounts payable and other accrued liabilities

 

 

12,037

 

 

 

(10,278

)

Income taxes payable

 

 

30,102

 

 

 

20,079

 

Acquisition-related liabilities

 

 

 

 

 

3,166

 

Net cash provided by (used in) operating activities

 

 

87,161

 

 

 

(39,813

)

Cash flows from investing activities:

 

 

 

 

Maturities and sales of available-for-sale marketable securities

 

 

12,646

 

 

 

11,048

 

Purchases of available-for-sale marketable securities

 

 

(69,060

)

 

 

(13,372

)

Purchases of property, equipment and software

 

 

(9,990

)

 

 

(12,310

)

Investments in technology

 

 

(155

)

 

 

 

Net cash used in investing activities

 

 

(66,559

)

 

 

(14,634

)

Cash flows from financing activities:

 

 

 

 

Net proceeds from the issuance of common stock

 

 

10,196

 

 

 

560

 

Repurchase of stock to satisfy employee tax withholding obligations

 

 

(1,219

)

 

 

(1,047

)

Repurchase and retirement of common stock

 

 

(40,992

)

 

 

(38,504

)

Net cash used in financing activities

 

 

(32,015

)

 

 

(38,991

)

Net decrease in cash and cash equivalents

 

 

(11,413

)

 

 

(93,438

)

Cash and cash equivalents at beginning of period

 

 

502,764

 

 

 

445,784

 

Cash and cash equivalents at end of period

 

$

491,351

 

 

$

352,346

 

 

 

 

 

 

Prepared in accordance with Generally Accepted Accounting Principles

 
 
 
 

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

Ended

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun. 29,

 

Jun. 29,

 

Mar. 30,

 

Dec. 30,

 

Sep. 23,

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

Q1'25

 

Q1'25

 

Q4'24

 

Q3'24

 

Q2'24

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities (GAAP)

 

$

548,648

 

 

$

87,161

 

 

$

170,526

 

 

$

313,692

 

 

$

(22,731

)

Capital expenditures

 

 

(36,180

)

 

 

(10,145

)

 

 

(7,695

)

 

 

(9,813

)

 

 

(8,527

)

Free Cash Flow (Non-GAAP)

 

$

512,468

 

 

$

77,016

 

 

$

162,831

 

 

$

303,879

 

 

$

(31,258

)

 

 

 

 

 

 

 

 

 

 

 

Cash Flow from Operations as a Percentage of Revenue (GAAP)

 

 

30

%

 

 

23

%

 

 

46

%

 

 

51

%

 

 

(5

)%

Capital Expenditures as a Percentage of Revenue (GAAP)

 

 

2

%

 

 

3

%

 

 

2

%

 

 

2

%

 

 

2

%

Free Cash Flow Margin (Non-GAAP)

 

 

28

%

 

 

21

%

 

 

44

%

 

 

49

%

 

 

(6

)%

 
 
 
 

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION

(in millions; unaudited)

(not prepared in accordance with GAAP)

 

 

 

 

 

Q2 FY25

 

 

Guidance

Operating Expense Reconciliation

 

 

GAAP Operating Expenses

 

$

149 - 155

 

Stock-based compensation expense

 

 

(22

)

Amortization of acquisition intangibles

 

 

(2

)

Non-GAAP Operating Expenses

 

$

125 - 131

 

 
 

 

Contacts

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

 

Contacts

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