Cirrus Logic 8K Reports Q2 Revenue of $428.6 Million | CRUS 27 Oct 16

Exhibit 99.1

Cirrus Logic Reports Q2 Revenue of $428.6 Million

Strong Demand for Portable Audio Products Expected to Fuel Continued Growth in Q3

AUSTIN, Texas--(BUSINESS WIRE)--October 27, 2016--Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing products, today posted on its investor relations website at http://investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the second quarter of fiscal year 2017, which ended Sept. 24, 2016, as well as the company’s current business outlook.

“Robust demand for portable audio products drove Cirrus Logic’s revenue above the high end of guidance,” said Jason Rhode, president and chief executive officer. “We are extremely pleased with our progress in the September quarter as we began volume shipments of our new digital headset solution, expanded our share with boosted amplifiers and ramped production in a mid-tier smartphone at another leading customer. With a broad portfolio of components that span the entire audio signal chain we believe we are well positioned to capitalize on a variety of growth vectors in the coming years.”

Reported Financial Results – Second Quarter FY17

Revenue of $428.6 million;
GAAP and non-GAAP gross margin of 49.4 percent;
GAAP operating expenses of $107.8 million and non-GAAP operating expenses of $93.3 million; and
GAAP diluted earnings per share of $1.19 and non-GAAP diluted earnings per share of $1.35.

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

Business Outlook – Third Quarter FY17

Revenue is expected to range between $475 million and $515 million;
GAAP gross margin is expected to be between 47 percent and 49 percent; and
Combined GAAP R&D and SG&A expenses are expected to range between $107 million and $113 million, which includes approximately $11 million in share-based compensation and $8 million in amortization of acquired intangibles.

Cirrus Logic will host a live Q&A session at 5:30 p.m. EDT today to answer questions related to its financial results and business outlook. Participants may listen to the conference call on the Cirrus Logic website. Participants who would like to submit a question to be addressed during the call are requested to email investor.relations@cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion, or by calling (404) 537-3406, or toll-free at (855) 859-2056 (Access Code: 90417574).

Cirrus Logic, Inc.

Cirrus Logic is a leader in high performance, low-power ICs for audio and voice signal processing applications. Cirrus Logic’s products span the entire audio signal chain, from capture to playback, providing innovative products for the world’s top smartphones, tablets, digital headsets, wearables and emerging smart home applications. With headquarters in Austin, Texas, Cirrus Logic is recognized globally for its award-winning corporate culture. Check us out 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 gross margins, operating expenses, net income, operating profit and income, tax expenses 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. 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 future growth opportunities and our estimates of third quarter fiscal year 2017 revenue, gross margin, combined research and development and selling, general and administrative expense levels, share-based compensation expense and amortization of acquired intangibles. 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 2017, customer cancellations of orders, or the failure to place orders consistent with forecasts, along with the timing and success of new product ramps; and the risk factors listed in our Form 10-K for the year ended March 26, 2016, 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 registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders.

Summary financial data follows:



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. 26,			Sep. 24,			Sep. 26,
		2016			2016			2015			2016			2015
	Q2'17			Q1'17			Q2'16			Q2'17			Q2'16
Portable audio products	$	383,410		$	216,068		$	257,152		$	599,478		$	493,018
Non-portable audio and other products		45,209			43,360			49,604			88,569			96,371
Net sales		428,619			259,428			306,756			688,047			589,389
Cost of sales		216,920			132,743			164,535			349,663			314,714
Gross profit		211,699			126,685			142,221			338,384			274,675
Gross margin		49.4	%		48.8	%		46.4	%		49.2	%		46.6	%

Research and development		75,673			73,934			67,258			149,607			133,093
Selling, general and administrative		32,089			30,540			30,103			62,629			59,222
Patent agreement and other		-			-			752			-			(11,748	)
Total operating expenses		107,762			104,474			98,113			212,236			180,567

Income from operations		103,937			22,211			44,108			126,148			94,108

Interest expense, net		(1,003	)		(689	)		(709	)		(1,692	)		(1,454	)
Other income (expense), net		(261	)		147			(416	)		(114	)		(173	)
Income before income taxes		102,673			21,669			42,983			124,342			92,481
Provision for income taxes		24,608			5,805			8,103			30,413			24,247
Net income	$	78,065		$	15,864		$	34,880		$	93,929		$	68,234

Basic earnings per share:	$	1.24		$	0.25		$	0.55		$	1.50		$	1.08
Diluted earnings per share:	$	1.19		$	0.24		$	0.53		$	1.43		$	1.03

Weighted average number of shares:
Basic		62,787			62,450			63,346			62,618			63,310
Diluted		65,717			65,232			66,329			65,521			66,378

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. Certain modifications to prior year non-GAAP presentation has been made and had no material effect on the results of operations.

	Three Months Ended									Six Months Ended

	Sep. 24,			Jun. 25,			Sep. 26,			Sep. 24,			Sep. 26,
		2016			2016			2015			2016			2015
Net Income Reconciliation	Q2'17			Q1'17			Q2'16			Q2'17			Q2'16
GAAP Net Income	$	78,065		$	15,864		$	34,880		$	93,929		$	68,234
Amortization of acquisition intangibles		8,326			8,363			8,133			16,689			15,274
Stock based compensation expense		9,925			9,310			8,688			19,235			16,959
Patent agreement and other		-			-			752			-			(11,748	)
Acquisition-related items		(3,566	)		-			-			(3,566	)		-
Adjustment to income taxes		(4,277	)		(4,639	)		(9,492	)		(8,916	)		(9,667	)
Non-GAAP Net Income	$	88,473		$	28,898		$	42,961		$	117,371		$	79,052

Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	1.19		$	0.24		$	0.53		$	1.43		$	1.03
Effect of Amortization of acquisition intangibles		0.13			0.13			0.12			0.26			0.23
Effect of Stock based compensation expense		0.15			0.14			0.13			0.29			0.26
Effect of Patent agreement and other		-			-			0.01			-			(0.18	)
Effect of Acquisition-related items		(0.05	)		-			-			(0.05	)		-
Effect of Adjustment to income taxes		(0.07	)		(0.07	)		(0.14	)		(0.14	)		(0.15	)

Non-GAAP Diluted earnings per share	$	1.35		$	0.44		$	0.65		$	1.79		$	1.19

Operating Income Reconciliation
GAAP Operating Income	$	103,937		$	22,211		$	44,108		$	126,148		$	94,108
GAAP Operating Profit		24	%		9	%		14	%		18	%		16	%
Amortization of acquisition intangibles		8,326			8,363			8,133			16,689			15,274
Stock compensation expense - COGS		235			230			380			465			705
Stock compensation expense - R&D		4,905			5,216			4,126			10,121			7,994
Stock compensation expense - SG&A		4,785			3,864			4,182			8,649			8,260
Patent agreement and other		-			-			752			-			(11,748	)
Acquisition-related items		(3,566	)		-			-			(3,566	)		-
Non-GAAP Operating Income	$	118,622		$	39,884		$	61,681		$	158,506		$	114,593
Non-GAAP Operating Profit		28	%		15	%		20	%		23	%		19	%

Operating Expense Reconciliation
GAAP Operating Expenses	$	107,762		$	104,474		$	98,113		$	212,236		$	180,567
Amortization of acquisition intangibles		(8,326	)		(8,363	)		(8,133	)		(16,689	)		(15,274	)
Stock compensation expense - R&D		(4,905	)		(5,216	)		(4,126	)		(10,121	)		(7,994	)
Stock compensation expense - SG&A		(4,785	)		(3,864	)		(4,182	)		(8,649	)		(8,260	)
Patent agreement and other		-			-			(752	)		-			11,748
Acquisition-related items		3,566			-			-			3,566			-
Non-GAAP Operating Expenses	$	93,312		$	87,031		$	80,920		$	180,343		$	160,787

Gross Margin/Profit Reconciliation
GAAP Gross Margin	$	211,699		$	126,685		$	142,221		$	338,384		$	274,675
GAAP Gross Profit		49.4	%		48.8	%		46.4	%		49.2	%		46.6	%
Stock compensation expense - COGS		235			230			380			465			705
Non-GAAP Gross Margin	$	211,934		$	126,915		$	142,601		$	338,849		$	275,380
Non-GAAP Gross Profit		49.4	%		48.9	%		46.5	%		49.2	%		46.7	%

Effective Tax Rate Reconciliation
GAAP Tax Expense	$	24,608		$	5,805		$	8,103		$	30,413		$	24,247
GAAP Effective Tax Rate		24.0	%		26.8	%		18.9	%		24.5	%		26.2	%
Adjustments to income taxes		4,277			4,639			9,492			8,916			9,667
Non-GAAP Tax Expense	$	28,885		$	10,444		$	17,595		$	39,329		$	33,914
Non-GAAP Effective Tax Rate		24.6	%		26.5	%		29.1	%		25.1	%		30.0	%

Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.37		$	0.09		$	0.12		$	0.46		$	0.37
Adjustments to income taxes		0.07			0.07			0.14			0.14			0.15
Non-GAAP Tax Expense	$	0.44		$	0.16		$	0.26		$	0.60		$	0.52



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

	Sep. 24,			Mar. 26,			Sep. 26,
		2016			2016			2015
ASSETS	(unaudited)						(unaudited)
Current assets
Cash and cash equivalents	$	113,264		$	168,793		$	56,333
Marketable securities		116,087			60,582			86,460
Accounts receivable, net		269,559			88,532			169,423
Inventories		161,254			142,015			143,867
Deferred tax asset		-			-			8,502
Other current assets		35,788			46,207			51,329
Total current assets		695,952			506,129			515,914

Long-term marketable securities		2,004			20,631			22,393
Property and equipment, net		164,029			162,656			158,529
Intangibles, net		150,108			162,832			179,816
Goodwill		287,518			287,518			289,565
Deferred tax asset		28,009			25,772			25,603
Other assets		17,914			16,345			20,474
Total assets	$	1,345,534		$	1,181,883		$	1,212,294

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	130,458		$	71,619		$	111,023
Accrued salaries and benefits		30,257			21,239			29,156
Deferred income		-			-			5,582
Other accrued liabilities		29,394			35,266			42,181
Total current liabilities		190,109			128,124			187,942

Long-term debt		140,000			160,439			160,439
Other long-term liabilities		46,277			33,837			34,990

Stockholders' equity:
Capital stock		1,236,492			1,203,496			1,183,262
Accumulated deficit		(267,887	)		(344,345	)		(352,374	)
Accumulated other comprehensive income (loss)		543			332			(1,965	)
Total stockholders' equity		969,148			859,483			828,923
Total liabilities and stockholders' equity	$	1,345,534		$	1,181,883		$	1,212,294

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 Q2 Revenue of $428.6 Million