Cirrus Logic 8K Reports Fiscal Second Quarter Revenue of $101.6M | CRUS 19 Oct 11

Exhibit 99.1

Cirrus Logic Reports Fiscal Second Quarter Revenue of $101.6M

Letter to the Shareholders Available on Company Website

AUSTIN, Texas--(BUSINESS WIRE)--October 19, 2011--Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing components, today posted its second quarter, fiscal year 2012 financial results and business outlook on its investor relations website at http://investor.cirrus.com.

Cirrus Logic will host a live Q&A session at 6:00 p.m. EDT on Wednesday, Oct. 19, 2011, to answer questions related to its financial results and business outlook. Shareholders who would like to submit a question to be addressed during the call are requested to email investor.relations@cirrus.com.

A live webcast of the Q&A session can be accessed on the Cirrus Logic website, and a replay will be available approximately one hour following its completion, or by calling (303) 590-3030, or toll-free at (800) 406-7325 (Access Code: 4478182).

Reported Financial Results

Revenue of $101.6 million

Gross margin of 53.5 percent

GAAP operating expenses were $36.4 million

Non-GAAP operating expenses of $32.1 million

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

“We're very pleased with the culture we've developed, the strategy we're pursuing, the talent and passion of our employees, and the relationships we have with some of the best companies in the world,” said Jason Rhode, president and chief executive officer, Cirrus Logic. “While we are seeing softness in some areas of our business due to issues in the global economy, we still expect significant year over year revenue growth in Q3, and we are well positioned to capitalize on some extraordinary growth opportunities that we believe will enable Cirrus Logic to be a great company for many years.”

Outlook for Third Quarter FY 2012 (ending December 31, 2011):

Revenue is expected to range between $102 million and $108 million;

Gross margin is expected to be between 53 percent and 55 percent; and

Combined R&D and SG&A expenses are expected to range between $37 million and $39 million, which includes approximately $3 million in share-based compensation and amortization of acquisition-related intangibles expenses.

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. More information about Cirrus Logic is available at www.cirrus.com.

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 operating expenses, net income, operating margin and 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 third quarter fiscal year 2012 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,” “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: the level of orders and shipments during the third quarter of fiscal year 2012, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; and the risk factors listed in our Form 10-K for the year ended March 26, 2011, 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.

CRUS-F

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)

	Three Months Ended									Six Months Ended

	Sep. 24,			Jun. 25,			Sep. 25,			Sep. 24,			Sep. 25,
		2011			2011			2010			2011			2010
	Q2'12			Q1'12			Q2'11			Q2'12			Q2'11
Audio products	$	83,683		$	71,119		$	71,171		$	154,802		$	125,159
Energy products		17,919			21,123			29,427			39,042			57,354
Net revenue		101,602			92,242			100,598			193,844			182,513
Cost of sales		47,247			44,533			43,818			91,780			78,998
Gross Profit		54,355			47,709			56,780			102,064			103,515

Research and development		19,682			18,767			15,450			38,449			30,542
Selling, general and administrative		16,760			14,606			15,372			31,366			29,383
Restructuring and other costs		-			-			401			-			401
Impairment of non-marketable securities		-			-			500			-			500
Provision for litigation expenses		-			-			-			-			135
Patent agreement, net		-			-			(4,000	)		-			(4,000	)
Total operating expenses		36,442			33,373			27,723			69,815			56,961

Operating income		17,913			14,336			29,057			32,249			46,554

Interest income, net		112			154			233			266			461
Other income (expense), net		(27	)		(17	)		(14	)		(44	)		18
Income before income taxes		17,998			14,473			29,276			32,471			47,033
Provision (benefit) for income taxes		6,751			5,295			(1,598	)		12,046			(1,443	)
Net income	$	11,247		$	9,178		$	30,874		$	20,425		$	48,476

Basic income per share:	$	0.17		$	0.14		$	0.45		$	0.31		$	0.72
Diluted income per share:	$	0.17		$	0.13		$	0.42		$	0.30		$	0.67

Weighted average number of shares:
Basic		64,426			67,099			68,513			65,763			67,576
Diluted		67,265			70,445			72,878			68,657			71,971

Prepared in accordance with Generally Accepted Accounting Principles

CIRRUS LOGIC, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(unaudited, in thousands, except per share data)
(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									Six Months Ended

	Sep. 24,			Jun. 25,			Sep. 25,			Sep. 24,			Sep. 25,
		2011			2011			2010			2011			2010
Net Income Reconciliation	Q2'12			Q1'12			Q2'11			Q2'12			Q2'11
GAAP Net Income	$	11,247		$	9,178		$	30,874		$	20,425		$	48,476
Amortization of acquisition intangibles		353			353			353			706			723
Stock based compensation expense		3,517			2,442			3,025			5,959			4,381
Facility Related adjustments		-			-			(100	)		-			(96	)
International sales reorganization charges		622			-			-			622			790
Provision for litigation expenses and settlements		-			-			-			-			135
Restructuring and other costs, net		-			-			401			-			401
Charge from non-marketable securities		-			-			500			-			500
Patent purchase agreement, net		-			-			(4,000	)		-			(4,000	)
Provision (benefit) for income taxes		6,163			4,984			(2,229	)		11,147			(2,229	)
Non-GAAP Net Income	$	21,902		$	16,957		$	28,824		$	38,859		$	49,081

Earnings Per Share Reconciliation
GAAP Diluted income per share	$	0.17		$	0.13		$	0.42		$	0.30		$	0.67
Effect of Amortization of acquisition intangibles		0.01			0.01			-			0.01			0.01
Effect of Stock based compensation expense		0.05			0.03			0.04			0.09			0.06
Effect of International sales reorganization charges		0.01			-			-			0.01			0.01
Effect of Restructuring and other costs, net		-			-			0.01			-			0.01
Effect of Charge from non-marketable securities		-			-			0.01			-			0.01
Effect of Patent purchase agreement, net		-			-			(0.05	)		-			(0.06	)
Effect of Provision (benefit) for income taxes		0.09			0.07			(0.03	)		0.16			(0.03	)

Non-GAAP Diluted income per share	$	0.33		$	0.24		$	0.40		$	0.57		$	0.68

Operating Income Reconciliation
GAAP Operating Income	$	17,913		$	14,336		$	29,057		$	32,249		$	46,554
GAAP Operating Margin		18	%		16	%		29	%		17	%		26	%
Amortization of acquisition intangibles		353			353			353			706			723
Stock compensation expense - COGS		104			89			64			193			119
Stock compensation expense - R&D		1,181			1,043			617			2,224			1,138
Stock compensation expense - SG&A		2,232			1,310			2,344			3,542			3,124
Facility Related adjustments		-			-			(100	)		-			(96	)
International sales reorganization charges		622			-			-			622			790
Provision for litigation expenses and settlements		-			-			-			-			135
Restructuring and other costs, net		-			-			401			-			401
Charge from non-marketable securities		-			-			500			-			500
Patent purchase agreement, net		-			-			(4,000	)		-			(4,000	)
Non-GAAP Operating Income	$	22,405		$	17,131		$	29,236		$	39,536		$	49,388
Non-GAAP Operating Margin		22	%		19	%		29	%		20	%		27	%

Operating Expense Reconciliation
GAAP Operating Expenses	$	36,442		$	33,373		$	27,723		$	69,815		$	56,961
Amortization of acquisition intangibles		(353	)		(353	)		(353	)		(706	)		(723	)
Stock compensation expense - R&D		(1,181	)		(1,043	)		(617	)		(2,224	)		(1,138	)
Stock compensation expense - SG&A		(2,232	)		(1,310	)		(2,344	)		(3,542	)		(3,124	)
Facility Related adjustments		-			-			100			-			96
International sales reorganization charges		(622	)		-			-			(622	)		(790	)
Provision for litigation expenses and settlements		-			-			-			-			(135	)
Restructuring and other costs, net		-			-			(401	)		-			(401	)
Charge from non-marketable securities		-			-			(500	)		-			(500	)
Patent purchase agreement, net		-			-			4,000			-			4,000
Non-GAAP Operating Expenses	$	32,054		$	30,667		$	27,608		$	62,721		$	54,246

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited
(in thousands)

		Sep. 24,			Jun. 25,			Sep. 25,
			2011			2011			2010
ASSETS
Current assets
	Cash and cash equivalents	$	39,268		$	41,490		$	19,837
	Restricted investments		2,898			5,755			5,755
	Marketable securities		100,130			107,016			153,797
	Accounts receivable, net		44,898			41,967			48,451
	Inventories		49,552			46,851			41,963
	Other current assets		41,668			38,842			21,094
	Total Current Assets		278,414			281,921			290,897

Long-term marketable securities			8,703			1,334			3,000
Property and equipment, net			50,102			42,465			32,471
Intangibles, net			18,905			19,505			21,042
Goodwill			6,027			6,027			6,027
Deferred tax asset			90,995			97,152			356
Other assets			7,517			8,566			1,503
	Total Assets	$	460,663		$	456,970		$	355,296

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
	Accounts payable	$	35,256		$	31,063		$	29,070
	Accrued salaries and benefits		10,942			8,120			12,754
	Other accrued liabilities		10,105			7,505			6,330
	Deferred income on shipments to distributors		9,334			9,745			7,749
	Total Current Liabilities		65,637			56,433			55,903

Long-term restructuring accrual			-			45			395
Other long-term obligations			6,505			6,621			6,143

Stockholders' equity:
	Capital stock		998,572			994,746			978,554
	Accumulated deficit		(609,167	)		(600,126	)		(685,077	)
	Accumulated other comprehensive loss		(884	)		(749	)		(622	)
	Total Stockholders' Equity		388,521			393,871			292,855
	Total Liabilities and Stockholders' Equity	$	460,663		$	456,970		$	355,296

Prepared in accordance with Generally Accepted Accounting Principles

CONTACT:

Cirrus Logic, Inc.

Thurman K. Case, 512-851-4125

Chief Financial Officer

Investor.Relations@cirrus.com

Cirrus Logic (CRUS) 8-KCirrus Logic Reports Fiscal Second Quarter Revenue of $101.6M