AUSTIN, Texas – January 28, 2010 – Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing components, today announced financial results for the third quarter of fiscal year 2010, which ended Dec. 26, 2009.
[Summary financial data appears below.]
Revenue for the quarter was $65.2 million, up 49 percent compared to $43.8 million during the third quarter of fiscal year 2009 and $55.7 million in the previous quarter. Gross margin for the quarter was 54 percent, down from 55 percent in the quarter a year ago and up sequentially from 52 percent for the previous quarter.
Total GAAP operating expenses for the quarter were approximately $24.0 million, up from $22.5 million in the previous quarter. GAAP operating expenses in the third quarter included a net benefit of $500,000 in proceeds from the sale of non-marketable securities that had been previously written off, as well as an additional $289,000 in net facility related credits. GAAP operating expenses also include charges of $1,342,000 for stock-based compensation, $404,000 in acquisition-related amortization of intangibles, and $135,000 related to a litigation settlement taken during the quarter. Non-GAAP operating expenses for the quarter were approximately $22.9 million, compared to $22.4 million for the September quarter.
Income from operations on a GAAP basis was approximately $10.9 million or 17 percent operating margin. Excluding the items noted above, non-GAAP income from operations was $12.1 million, or 19 percent operating margin.
Cirrus Logic reported third quarter GAAP net income of approximately $11.1 million, or $0.17 per share based on 65.6 million average diluted shares outstanding. Excluding the items noted above, on a non-GAAP basis the company reported net income of $12.2 million, or $0.19 per diluted share.
“We are extremely pleased with our Q3 results. Continued market share gains in portable audio drove our overall year-over-year growth, and strength across many of our product lines allowed revenue to exceed our initial projections for the quarter. We shipped more than a million units of our newest power meter family for the first time, and a general recovery of our traditional industrial business contributed to our improved margins,” said Jason Rhode, president and chief executive officer, Cirrus Logic. “We expect this progress to continue through FY11, and we are now focusing on our plans to drive growth in FY12 and beyond.”
Outlook for Fourth Quarter FY 2010 (ending March 27, 2010):
Conference Call
Cirrus Logic management will hold a conference call to discuss the company’s results for the third quarter of fiscal year 2010, on Jan. 28, 2010 at 10:30 a.m. EST. Those wishing to join should call (480) 629-9866, or (877) 549-7750 (Conference ID: 4198207) at approximately 10:20 a.m. EST. A replay of the conference call will also be available beginning one hour after the completion of the call, until Feb. 4, 2010. To access the recording, dial (303) 590-3030, or toll-free at (800) 406-7325 (Conference ID: 4198207). 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 innovative customers. Building on its diverse analog and signal-processing patent portfolio, Cirrus Logic delivers highly optimized products for a variety of audio and energy-related 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 financial information, including non-GAAP operating expenses, non-GAAP net income, non-GAAP net income from operations, and non-GAAP diluted earnings per share. 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. 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 fourth quarter fiscal year 2010 revenue, year-over-year revenue growth, 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,” “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: overall economic pressures and general market and economic conditions; overall conditions in the semiconductor market; the level of orders and shipments during the fourth quarter of fiscal year 2010, 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 28, 2009, 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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