Cirrus Logic Reports Fiscal Fourth Quarter Revenue of $371.8 Million and Full Fiscal Year 2024 Revenue of $1.79 Billion

AUSTIN, Texas, May 07, 2024--(BUSINESS WIRE)--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 fourth quarter and full fiscal year 2024, which ended March 30, 2024, as well as the company’s current business outlook.

"Cirrus Logic made excellent progress in FY24. During the year, we introduced a third-generation camera controller, ramped new products in support of our growing momentum in the laptop market, and completed development of our next-generation custom boosted amplifier and first 22-nanometer smart codec, while also making significant investments in future products and intellectual property," said John Forsyth, Cirrus Logic president and chief executive officer. "Additionally, the company’s disciplined execution helped deliver a year-over-year increase in non-GAAP earnings per share. We appreciate the support and trust of our customers, employees, and shareholders and continue to be excited about the opportunities we see for growth and product diversification in the future."

Reported Financial Results – Fourth Quarter FY24

• Revenue of $371.8 million;

• GAAP and non-GAAP gross margin of 51.8 percent and 51.9 percent;

• GAAP operating expenses of $140.2 million and non-GAAP operating expenses of $116.5 million; and

• GAAP earnings per share of $0.81 and non-GAAP earnings per share of $1.24.

Reported Financial Results – Full Fiscal Year 2024

• Revenue of $1.79 billion;

• GAAP and non-GAAP gross margin of 51.2 percent and 51.3 percent;

• GAAP operating expenses of $572.6 million and non-GAAP operating expenses of $470.4 million; and

• GAAP earnings per share of $4.90 and non-GAAP earnings per share of $6.59.

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

Business Outlook – First Quarter FY25

• Revenue is expected to range between $290 million and $350 million;

• GAAP gross margin is forecasted to be between 49 percent and 51 percent; and

• Combined GAAP R&D and SG&A expenses are anticipated to range between $142 million and $148 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 $118 million and $124 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, diluted share count, 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 ability to capitalize on opportunities for growth and product diversification in the future; and our estimates for the first quarter fiscal year 2025 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock compensation expense, amortization of acquired intangibles and acquisition-related costs. 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 effects of the global COVID-19 outbreak and the measures taken to limit the spread of COVID-19, including any disruptions to our business that could result from measures to contain the outbreak that may be taken by governmental authorities in the jurisdictions in which we and our supply chain operate; the susceptibility of the markets we address to economic downturns, including as a result of the COVID-19 outbreak and the actions taken to mitigate the spread of COVID-19; increased industry-wide capacity constraints that may impact our ability to meet current customer demand, which could cause an unanticipated decline in our sales and damage our existing customer relationships and our ability to establish new customer relationships; the potential for increased prices due to capacity constraints in our supply chain, which, if we are unable to increase our selling price to our customers, could result in lower revenues and margins that could adversely affect our financial results; recent significant increases in inflation in the U.S and overseas; the level and timing of orders and shipments during the first 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 25, 2023 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												Twelve Months Ended
	Mar. 30,				Dec. 30,				Mar. 25,				Mar. 30,				Mar. 25,
		2024				2023				2023				2024				2023
	Q4'24				Q3'24				Q4'23				Q4'24				Q4'23
Audio	$	226,681			$	378,597			$	232,402			$	1,083,939			$	1,172,007
High-Performance Mixed-Signal		145,146				240,387				140,420				704,951				725,610
Net sales		371,827				618,984				372,822				1,788,890				1,897,617
Cost of sales		179,202				301,520				186,468				872,818				940,638
Gross profit		192,625				317,464				186,354				916,072				956,979
Gross margin		51.8	%			51.3	%			50.0	%			51.2	%			50.4	%
Research and development		103,383				112,672				115,162				426,475				458,412
Selling, general and administrative		36,866				37,604				37,642				144,172				153,144
Restructuring		—				(360	)			10,632				1,959				10,632
Intangibles impairment		—				—				85,760				—				85,760
Total operating expenses		140,249				149,916				249,196				572,606				707,948
Income (loss) from operations		52,376				167,548				(62,842	)			343,466				249,031
Interest income (expense)		7,360				4,889				4,720				20,578				9,087
Other income (expense)		(78	)			(337	)			(464	)			(108	)			(3,379	)
Income (loss) before income taxes		59,658				172,100				(58,586	)			363,936				254,739
Provision (benefit) for income taxes		14,816				33,377				(4,917	)			89,364				78,036
Net income (loss)	$	44,842			$	138,723			$	(53,669	)		$	274,572			$	176,703
Basic earnings (loss) per share	$	0.83			$	2.57			$	(0.97	)		$	5.06			$	3.18
Diluted earnings (loss) per share:	$	0.81			$	2.50			$	(0.97	)		$	4.90			$	3.09
Weighted average number of shares:
Basic		53,739				54,016				55,219				54,290				55,614
Diluted		55,559				55,592				55,219				56,021				57,226
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												Twelve Months Ended
	Mar. 30,				Dec. 30,				Mar. 25,				Mar. 30,				Mar. 25,
		2024				2023				2023				2024				2023
Net Income (Loss) Reconciliation	Q4'24				Q3'24				Q4'23				Q4'24				Q4'23
GAAP Net Income (Loss)	$	44,842			$	138,723			$	(53,669	)		$	274,572			$	176,703
Amortization of acquisition intangibles		1,973				1,972				7,657				8,285				32,086
Stock-based compensation expense		22,158				23,067				22,533				89,271				81,641
Restructuring		—				(360	)			10,632				1,959				10,632
Intangibles impairment		—				—				85,760				—				85,760
Acquisition-related costs		—				—				3,166				4,105				12,670
Investment write off		—				—				—				—				2,746
Adjustment to income taxes		75				(2,769	)			(23,461	)			(8,926	)			(34,832	)
Non-GAAP Net Income	$	69,048			$	160,633			$	52,618			$	369,266			$	367,406
Earnings (Loss) Per Share Reconciliation
GAAP Diluted earnings (loss) per share	$	0.81			$	2.50			$	(0.97	)		$	4.90			$	3.09
Effect of Amortization of acquisition intangibles		0.03				0.04				0.14				0.15				0.56
Effect of Stock-based compensation expense		0.40				0.41				0.40				1.59				1.43
Effect of Restructuring		—				(0.01	)			0.19				0.04				0.18
Effect of Intangibles impairment		—				—				1.51				—				1.50
Effect of Acquisition-related costs		—				—				0.06				0.07				0.22
Effect of Investment write off		—				—				—				—				0.05
Effect of Adjustment to income taxes		—				(0.05	)			(0.41	)			(0.16	)			(0.61	)
Non-GAAP Diluted earnings per share	$	1.24			$	2.89			$	0.92			$	6.59			$	6.42
Diluted Shares Reconciliation
GAAP Diluted shares		55,559				55,592				55,219				56,021				57,226
Effect of weighted dilutive shares		—				—				1,821				—				—
Non-GAAP Diluted shares		55,559				55,592				57,040				56,021				57,226
Operating Income (Loss) Reconciliation
GAAP Operating Income (Loss)	$	52,376			$	167,548			$	(62,842	)		$	343,466			$	249,031
GAAP Operating Profit (Loss)		14.1	%			27.1	%			(16.9	)%			19.2	%			13.1	%
Amortization of acquisition intangibles		1,973				1,972				7,657				8,285				32,086
Stock-based compensation expense - COGS		362				395				372				1,403				1,270
Stock-based compensation expense - R&D		15,483				16,771				15,782				63,678				57,312
Stock-based compensation expense - SG&A		6,313				5,901				6,379				24,190				23,059
Restructuring		—				(360	)			10,632				1,959				10,632
Intangibles impairment		—				—				85,760				—				85,760
Acquisition-related costs		—				—				3,166				4,105				12,670
Non-GAAP Operating Income	$	76,507			$	192,227			$	66,906			$	447,086			$	471,820
Non-GAAP Operating Profit		20.6	%			31.1	%			17.9	%			25.0	%			24.9	%
Operating Expense Reconciliation
GAAP Operating Expenses	$	140,249			$	149,916			$	249,196			$	572,606			$	707,948
Amortization of acquisition intangibles		(1,973	)			(1,972	)			(7,657	)			(8,285	)			(32,086	)
Stock-based compensation expense - R&D		(15,483	)			(16,771	)			(15,782	)			(63,678	)			(57,312	)
Stock-based compensation expense - SG&A		(6,313	)			(5,901	)			(6,379	)			(24,190	)			(23,059	)
Restructuring		—				360				(10,632	)			(1,959	)			(10,632	)
Intangibles impairment		—				—				(85,760	)			—				(85,760	)
Acquisition-related costs		—				—				(3,166	)			(4,105	)			(12,670	)
Non-GAAP Operating Expenses	$	116,480			$	125,632			$	119,820			$	470,389			$	486,429
Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	192,625			$	317,464			$	186,354			$	916,072			$	956,979
GAAP Gross Margin		51.8	%			51.3	%			50.0	%			51.2	%			50.4	%
Stock-based compensation expense - COGS		362				395				372				1,403				1,270
Non-GAAP Gross Profit	$	192,987			$	317,859			$	186,726			$	917,475			$	958,249
Non-GAAP Gross Margin		51.9	%			51.4	%			50.1	%			51.3	%			50.5	%
	Three Months Ended												Twelve Months Ended
	Mar. 30,				Dec. 30,				Mar. 25,				Mar. 30,				Mar. 25,
		2024				2023				2023				2024				2023
Effective Tax Rate Reconciliation	Q4'24				Q3'24				Q4'23				Q4'24				Q4'23
GAAP Tax Expense (Benefit)	$	14,816			$	33,377			$	(4,917	)		$	89,364			$	78,036
GAAP Effective Tax Rate		24.8	%			19.4	%			8.4	%			24.6	%			30.6	%
Adjustments to income taxes		(75	)			2,769				23,461				8,926				34,832
Non-GAAP Tax Expense	$	14,741			$	36,146			$	18,544			$	98,290			$	112,868
Non-GAAP Effective Tax Rate		17.6	%			18.4	%			26.1	%			21.0	%			23.5	%
Tax Impact to EPS Reconciliation
GAAP Tax Expense (Benefit)	$	0.27			$	0.60			$	(0.09	)		$	1.60			$	1.36
Adjustments to income taxes		—				0.05				0.41				0.16				0.61
Non-GAAP Tax Expense	$	0.27			$	0.65			$	0.32			$	1.76			$	1.97

CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)
		Mar. 30,				Dec. 30,				Mar. 25,
			2024				2023				2023
ASSETS
Current assets
Cash and cash equivalents		$	502,764			$	483,931			$	445,784
Marketable securities			23,778				32,842				34,978
Accounts receivable, net			162,478				217,269				150,473
Inventories			227,248				256,675				233,450
Prepaid wafers			86,679				84,854				60,638
Other current assets			103,245				109,814				92,533
Total current Assets			1,106,192				1,185,385				1,017,856
Long-term marketable securities			173,374				70,260				36,509
Right-of-use lease assets			138,288				140,993				128,145
Property and equipment, net			170,175				167,579				162,972
Intangibles, net			29,578				31,677				38,876
Goodwill			435,936				435,936				435,936
Deferred tax asset			48,649				34,116				35,580
Long-term prepaid wafers			60,750				73,492				134,363
Other assets			68,634				77,675				73,729
Total assets		$	2,231,576			$	2,217,113			$	2,063,966
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	55,545			$	56,231			$	81,462
Accrued salaries and benefits			47,612				44,352				50,606
Lease liability			20,640				19,906				18,442
Acquisition-related liabilities			—				—				21,361
Other accrued liabilities			62,596				58,105				44,469
Total current liabilities			186,393				178,594				216,340
Non-current lease liability			134,576				138,415				122,631
Non-current income taxes			52,013				52,247				59,013
Other long-term liabilities			41,580				47,097				7,700
Total long-term liabilities			228,169				237,759				189,344
Stockholders' equity:
Capital stock			1,760,701				1,735,824				1,670,141
Accumulated earnings (deficit)			58,916				66,633				(9,320	)
Accumulated other comprehensive loss			(2,603	)			(1,697	)			(2,539	)
Total stockholders' equity			1,817,014				1,800,760				1,658,282
Total liabilities and stockholders' equity		$	2,231,576			$	2,217,113			$	2,063,966
Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
		Three Months Ended
		Mar. 30,				Mar. 25,
			2024				2023
		Q4'24				Q4'23
Cash flows from operating activities:
Net income (loss)		$	44,842			$	(53,669	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			12,009				18,844
Stock-based compensation expense			22,158				22,533
Deferred income taxes			(14,426	)			(40,943	)
Loss on retirement or write-off of long-lived assets			2				350
Other non-cash charges			86				85
Restructuring			—				10,632
Intangibles impairment			—				85,760
Net change in operating assets and liabilities:
Accounts receivable, net			54,791				120,020
Inventories			29,427				(81,024	)
Prepaid wafers			10,917				—
Other assets			6,621				(2,664	)
Accounts payable and other accrued liabilities			(2,411	)			(32,260	)
Income taxes payable			6,510				(2,564	)
Acquisition-related liabilities			—				3,166
Net cash provided by operating activities			170,526				48,266
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities			13,614				8,337
Purchases of available-for-sale marketable securities			(108,174	)			(5,830	)
Purchases of property, equipment and software			(7,057	)			(11,326	)
Investments in technology			(638	)			(309	)
Net cash used in investing activities			(102,255	)			(9,128	)
Cash flows from financing activities:
Issuance of common stock, net of shares withheld for taxes			2,719				8,621
Repurchase of stock to satisfy employee tax withholding obligations			(2,165	)			(1,519	)
Repurchase and retirement of common stock			(49,992	)			(35,000	)
Net cash used in financing activities			(49,438	)			(27,898	)
Net increase in cash and cash equivalents			18,833				11,240
Cash and cash equivalents at beginning of period			483,931				434,544
Cash and cash equivalents at end of period		$	502,764			$	445,784
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
		Mar. 30,				Mar. 30,				Dec. 30,				Sep. 23,				Jun. 24,
			2024				2024				2023				2023				2023
		Q4'24				Q4'24				Q3'24				Q2'24				Q1'24
Net cash provided by operating activities (GAAP)		$	421,674			$	170,526			$	313,692			$	(22,731	)		$	(39,813	)
Capital expenditures			(38,345	)			(7,695	)			(9,813	)			(8,527	)			(12,310	)
Free Cash Flow (Non-GAAP)		$	383,329			$	162,831			$	303,879			$	(31,258	)		$	(52,123	)
Cash Flow from Operations as a Percentage of Revenue (GAAP)			24	%			46	%			51	%			(5	)%			(13	)%
Capital Expenditures as a Percentage of Revenue (GAAP)			2	%			2	%			2	%			2	%			4	%
Free Cash Flow Margin (Non-GAAP)			21	%			44	%			49	%			(6	)%			(16	)%

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
		Q1 FY25
		Guidance
Operating Expense Reconciliation
GAAP Operating Expenses		$142 - 148
Stock-based compensation expense		(22)
Amortization of acquisition intangibles		(2)
Non-GAAP Operating Expenses		$118 - 124

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Contacts

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