AUSTIN, Texas – July 19, 2000 – Cirrus Logic Inc. (NASDAQ:CRUS) today announced its financial results for the first quarter of fiscal 2001, ended June 24, 2000. Fiscal first quarter net revenues were $181.4 million, up 50 percent from the $120.6 million reported in the first fiscal quarter a year ago. The $181.4 million includes a one-time increase in sales of $10.6 million from accounting changes that took effect in the quarter. Excluding the accounting changes, revenues from the company’s continuing businesses increased 17 percent over the fiscal 2000 fourth quarter.

Net income for the first quarter grew 59 percent to $98.9 million, or earnings of $1.27 per diluted share outstanding, compared with $62.1 million, or earnings of $0.82 per diluted share in the fourth quarter of fiscal 2000. Pro forma net income was $10.1 million in the first quarter, an increase of 174 percent from $3.7 million pro forma net income in the prior quarter.

Pro forma diluted earnings per share were $0.15, net of a 10 percent provision for income taxes, compared with pro forma diluted earnings of $0.05 per share reported in the fiscal 2000 fourth quarter. Pro forma results for the first fiscal quarter exclude gains related to the sale of investments, net of restructuring credits, the one time effects of accounting changes, an extraordinary gain on the repurchase of the company’s convertible notes and amortization related to acquired intangible assets.

“I am pleased we achieved our quarterly gross margin improvement objectives, bringing us in line with our model. In addition to the resulting earnings benefit, we also improved shareholder equity by more than $100 million,” said David French, president and chief executive officer. “Our Crystal^® analog product businesses saw strong margin improvement and continued design-win momentum, while our magnetic storage business saw strong unit and revenue growth. Most impressive were our Internet Solutions businesses that grew revenues sequentially by more than 50 percent, driven primarily by our Maverick™ line of Internet audio processors, which began ramping into volume production.

“We believe that the second fiscal quarter will also be strong as we build momentum across all product lines and as we continue to improve gross margin percentages,” French said.

Other highlights within the quarter included:

Analog Products Group

• Revenues increased 10 percent sequentially
  
  
• Gross margins improved to more than 50 percent
  
  
• Communications products showed year-on-year growth of more than 150 percent
  
  

Magnetic Storage Group

• Revenues increased 31 percent sequentially
  
  
• Design wins for 3Ci platform ramped into high volume production
  
  

Internet Solutions Group

• Revenues grew 51 percent sequentially
  
  
• Announced a breakthrough solution with its Maverick chip enabling a home Internet audio jukebox without the use of a PC
  
  
• Developed a new CD-RW drive device that sets a new double density standard and provides the fastest write (16x) and read (48x) speeds
  
  

About Cirrus Logic

Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for Internet entertainment electronics. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal^®, Maverick™, and 3Ci™ brands as well as its own name. Founded in 1984 in Silicon Valley, Cirrus Logic operates from headquarters in Austin, Texas and major sites located in Fremont, California and Broomfield, Colorado as well as offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that are dependent on certain risks and uncertainties including such factors, among others, as overall conditions in the semiconductor market, customer cancellations of orders, or the failure to place orders consistent with forecasts, unforeseen manufacturing difficulties, or hardware or software deficiencies, or delays in customer qualification of key new products, achieving high utilization of the company's manufacturing resources, final determination of appropriate inventory write-downs based on the outlook at the end of each quarter, actual operational spending, obtaining financing sufficient to meet the company's needs and the risk factors listed in the company's Form 10-K for the year ended March 25, 2000, and in other filings with the Securities and Exchange Commission.

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