AUSTIN, Texas – Oct. 22, 2008 – Cirrus Logic Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing components, today announced financial results for the second quarter of fiscal year 2009, which ended Sept. 27, 2008.
[Summary financial data appears below.]
Revenue for the quarter was $53.3 million and represents a 13 percent increase compared to $47.0 million during the second quarter of fiscal year 2008 and a 21 percent increase compared to $44.0 million in the previous quarter. Gross margin for the quarter was 56 percent, compared with 57 percent for the second quarter of fiscal year 2008 and 56 percent in the previous quarter.
Total GAAP operating expenses for the quarter were $24.2 million, which included $1.8 million in legal fees associated with derivative lawsuits related to the Company’s past stock option practices. Additionally, GAAP operating expenses included stock-based compensation and acquisition-related amortization of intangibles charges of approximately $1.5 million. Income from operations on a GAAP basis was $5.8 million, or 11 percent. Excluding the items noted above, the non-GAAP income from operations was $9.1 million or 17 percent.
Cirrus Logic reported second quarter GAAP net income of $6.4 million, or $0.10 per share based on 65.3 million average diluted shares outstanding. Excluding the items noted above, non-GAAP net income was $9.7 million, or $0.15 earnings per share.
“Q2 represents great progress toward Cirrus Logic’s long-term financial model. Revenues were up 13 percent versus last year driven primarily by strong growth in new product sales. Additionally, expenses were down and we delivered a substantial increase in earnings per share,” said Jason Rhode, president and chief executive officer. “While we are concerned about overall macroeconomic conditions, we believe that our strong financial position, recent product introductions, and success in portable audio enable us to make further progress towards our strategic objectives and grow our overall long-term market share.”
Outlook for Third Quarter FY 2009 (ending Dec. 27, 2008):
Conference Call
Cirrus Logic management will hold a conference call to discuss the company’s results for the second quarter of fiscal year 2009, on Oct. 22, 2008, at 5:00 p.m. EDT. Those wishing to join should call (303) 205-0033 (passcode: Cirrus Logic) at approximately 4:50 p.m. EDT. A replay of the conference call will also be available beginning one hour after the completion of the call, until Oct. 29, 2008. To access the recording, call (303) 590-3000 (passcode: 11121033#). A live and an archived webcast of the conference call will also be available
Cirrus Logic Inc.
Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of consumer and industrial markets. Building on its diverse analog and signal-processing patent portfolio, Cirrus Logic delivers highly optimized products for consumer and commercial audio, automotive entertainment, and industrial and aerospace applications. The company operates from headquarters in Austin, Texas, with offices in Tucson, Ariz., Europe, Japan and Asia.
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Use of non-GAAP Financial Information
To supplement Cirrus Logic’s financial statements presented on a GAAP basis, Cirrus has provided, non-GAAP net earnings, non-GAAP income from operations, and non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter 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. 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.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements, including our estimates of third quarter fiscal year 2009 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense, and amortization of acquired intangible expenses. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “opportunity,” “estimates,” and “intend,” variations of these types of words and similar expressions are intended to identify these forward-looking statements. 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: overall economic pressures and general market and economic conditions; overall conditions in the semiconductor market; the level of orders and shipments during the third quarter of fiscal year 2009, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; the loss of a key customer; pricing pressures; and the risk factors listed in our Form 10-K for the year ended March 29, 2008, 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.
Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc.
Summary financial data follows:
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Thurman Case Chief Financial Officer (512) 851-4125 |
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