Cirrus Logic (CRUS) 8-K Cirrus Logic Reports Q4 Revenue of $327.9 Million and $1.5 Billion for FY17

Exhibit 99.1

Cirrus Logic Reports Q4 Revenue of $327.9 Million and $1.5 Billion for FY17

Significant Revenue Growth in FY17 Fueled by Demand for Portable Audio Products

AUSTIN, Texas--(BUSINESS WIRE)--May 3, 2017--Cirrus Logic, Inc. (Nasdaq: CRUS), a leader in high performance, low-power ICs for audio and voice signal processing applications, today posted on its investor relations website at http://investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the fourth quarter and full fiscal year 2017, which ended Mar. 25, 2017, as well as the company’s current business outlook.

“We are extremely pleased with Cirrus Logic’s FY17 financial performance as we delivered outstanding revenue, operating profit and earnings per share growth,” said Jason Rhode, president and chief executive officer. “With a growing product line spanning the complete audio signal chain, Cirrus Logic expects to leverage our solid customer relationships and engineering execution to capitalize on our rapidly expanding growth opportunities.”

Reported Financial Results – Fourth Quarter FY17

• Revenue of $327.9 million;
• GAAP gross margin of 50.1 percent and non-GAAP gross margin of 50.2 percent;
• GAAP operating expenses of $119.6 million and non-GAAP operating expenses of $90.9 million; and
• GAAP diluted earnings per share of $0.52 and non-GAAP diluted earnings per share of $0.85.

Reported Financial Results – Full Year FY17

• Revenue of $1.5 billion;
• GAAP gross margin of 49.2 percent and non-GAAP gross margin of 49.3 percent;
• GAAP operating expenses of $440.8 million and non-GAAP operating expenses of $362.7 million; and
• GAAP diluted earnings per share of $3.92 and non-GAAP diluted earnings per share of $4.49.

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

Business Outlook – First Quarter FY18

• Revenue is expected to range between $300 million and $340 million;
• GAAP gross margin is expected to be between 48 percent and 50 percent; and
• Combined GAAP R&D and SG&A expenses are expected to range between $118 million and $124 million, which includes approximately $11 million in share-based compensation and $10 million in amortization of acquired intangibles.

Cirrus Logic will host a live Q&A session at 5 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 (416) 621-4642, or toll-free at (800) 585-8367 (Access Code: 2452447).

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 non-GAAP net income, diluted earnings per share, operating income, operating expenses, gross margins, tax expenses and tax expense impact on 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 statements about our future ability to leverage our solid customer relationships and engineering execution to capitalize on our rapidly expanding growth opportunities, and our estimates of first quarter fiscal year 2018 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 first quarter of fiscal year 2018, 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, as amended, 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:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
	Three Months Ended									Twelve Months Ended
	Mar. 25,			Dec. 24,			Mar. 26,			Mar. 25,			Mar. 26,
	2017			2016			2016			2017			2016
	Q4'17			Q3'17			Q4'16			Q4'17			Q4'16
Portable audio products	$	290,658		$	483,712		$	187,280		$	1,373,848		$	989,101
Non-portable audio and other products		37,206			39,317			44,719			165,092			180,150
Net sales		327,864			523,029			231,999			1,538,940			1,169,251
Cost of sales		163,585			267,877			116,745			781,125			614,411
Gross profit		164,279			255,152			115,254			757,815			554,840
Gross margin		50.1	%		48.8	%		49.7	%		49.2	%		47.5	%
Research and development		77,972			76,079			65,834			303,658			269,217
Selling, general and administrative		31,752			32,884			27,228			127,265			117,082
Asset impairment		9,842			-			-			9,842			-
Patent agreement and other		-			-			-			-			(11,670	)
Total operating expenses		119,566			108,963			93,062			440,765			374,629
Income from operations		44,713			146,189			22,192			317,050			180,211
Interest income (expense), net		118			(350	)		(709	)		(1,924	)		(2,861	)
Other income (expense), net		82			(47	)		(370	)		(79	)		(1,361	)
Income before income taxes		44,913			145,792			21,113			315,047			175,989
Provision for income taxes		9,855			23,751			7,101			53,838			52,359
Net income	$	35,058		$	122,041		$	14,012		$	261,209		$	123,630
Basic earnings per share:	$	0.55		$	1.91		$	0.22		$	4.12		$	1.96
Diluted earnings per share:	$	0.52		$	1.83		$	0.21		$	3.92		$	1.87
Weighted average number of shares:
Basic		64,232			63,837			62,843			63,329			63,197
Diluted		67,062			66,748			65,398			66,561			65,993
Prepared in accordance with Generally Accepted Accounting Principles

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									Twelve Months Ended
	Mar. 25,			Dec. 24,			Mar. 26,			Mar. 25,			Mar. 26,
		2017			2016			2016			2017			2016
Net Income Reconciliation	Q4'17			Q3'17			Q4'16			Q4'17			Q4'16
GAAP Net Income	$	35,058		$	122,041		$	14,012		$	261,209		$	123,630
Amortization of acquisition intangibles		8,255			8,308			8,363			33,252			32,271
Stock based compensation expense		10,888			9,471			8,858			39,594			33,578
Patent agreement and other		-			-			-			-			(11,670	)
Restructuring and other costs, net		-			-			(3,667	)		-			(3,667	)
Acquisition-related items		-			-			-			(3,566	)		-
Asset impairment		9,842			-			-			9,842			-
Adjustment to income taxes		(7,289	)		(15,094	)		(2,658	)		(41,480	)		(16,062	)
Non-GAAP Net Income	$	56,754		$	124,726		$	24,908		$	298,851		$	158,080
Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	0.52		$	1.83		$	0.21		$	3.92		$	1.87
Effect of Amortization of acquisition intangibles		0.13			0.13			0.13			0.50			0.49
Effect of Stock based compensation expense		0.16			0.14			0.14			0.59			0.51
Effect of Patent agreement and other		-			-			-			-			(0.18	)
Effect of Restructuring and other costs, net		-			-			(0.06	)		-			(0.05	)
Effect of Acquisition-related items		-			-			-			(0.05	)		-
Effect of Asset impairment		0.15			-			-			0.15			-
Effect of Adjustment to income taxes		(0.11	)		(0.23	)		(0.04	)		(0.62	)		(0.24	)
Non-GAAP Diluted earnings per share	$	0.85		$	1.87		$	0.38		$	4.49		$	2.40
Operating Income Reconciliation
GAAP Operating Income	$	44,713		$	146,189		$	22,192		$	317,050		$	180,211
GAAP Operating Profit		14	%		28	%		10	%		21	%		15	%
Amortization of acquisition intangibles		8,255			8,308			8,363			33,252			32,271
Stock compensation expense - COGS		324			282			233			1,071			1,151
Stock compensation expense - R&D		5,987			5,078			4,996			21,186			17,173
Stock compensation expense - SG&A		4,577			4,111			3,629			17,337			15,254
Patent agreement and other		-			-			-			-			(11,670	)
Restructuring and other costs, net		-			-			(3,667	)		-			(3,667	)
Acquisition-related items		-			-			-			(3,566	)		-
Asset impairment		9,842			-			-			9,842			-
Non-GAAP Operating Income	$	73,698		$	163,968		$	35,746		$	396,172		$	230,723
Non-GAAP Operating Profit		22	%		31	%		15	%		26	%		20	%
Operating Expense Reconciliation
GAAP Operating Expenses	$	119,566		$	108,963		$	93,062		$	440,765		$	374,629
Amortization of acquisition intangibles		(8,255	)		(8,308	)		(8,363	)		(33,252	)		(32,271	)
Stock compensation expense - R&D		(5,987	)		(5,078	)		(4,996	)		(21,186	)		(17,173	)
Stock compensation expense - SG&A		(4,577	)		(4,111	)		(3,629	)		(17,337	)		(15,254	)
Patent agreement and other		-			-			-			-			11,670
Restructuring and other costs, net		-			-			3,667			-			3,667
Acquisition-related items		-			-			-			3,566			-
Asset impairment		(9,842	)		-			-			(9,842	)		-
Non-GAAP Operating Expenses	$	90,905		$	91,466		$	79,741		$	362,714		$	325,268
Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	164,279		$	255,152		$	115,254		$	757,815		$	554,840
GAAP Gross Margin		50.1	%		48.8	%		49.7	%		49.2	%		47.5	%
Acquisition-related items		-			-			-			-			-
Stock compensation expense - COGS		324			282			233			1,071			1,151
Non-GAAP Gross Profit	$	164,603		$	255,434		$	115,487		$	758,886		$	555,991
Non-GAAP Gross Margin		50.2	%		48.8	%		49.8	%		49.3	%		47.6	%
Effective Tax Rate Reconciliation
GAAP Tax Expense	$	9,855		$	23,751		$	7,101		$	53,838		$	52,359
GAAP Effective Tax Rate		21.9	%		16.3	%		33.6	%		17.1	%		29.8	%
Adjustments to income taxes		7,289			15,094			2,658			41,480			16,062
Non-GAAP Tax Expense	$	17,144		$	38,845		$	9,759		$	95,318		$	68,421
Non-GAAP Effective Tax Rate		23.2	%		23.7	%		28.2	%		24.2	%		30.2	%
Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.15		$	0.36		$	0.11		$	0.81		$	0.79
Adjustments to income taxes		0.11			0.23			0.04			0.62			0.24
Non-GAAP Tax Expense	$	0.26		$	0.59		$	0.15		$	1.43		$	1.03

CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands
	Mar. 25,			Dec. 24,			Mar. 26,
		2017			2016			2016
ASSETS
Current assets
Cash and cash equivalents	$	351,166		$	310,375		$	168,793
Marketable securities		99,813			72,342			60,582
Accounts receivable, net		119,974			246,630			88,532
Inventories		167,895			154,128			142,015
Other current assets		37,080			41,747			46,207
Total current Assets		775,928			825,222			506,129
Property and equipment, net		168,139			167,933			162,656
Intangibles, net		135,188			144,005			162,832
Goodwill		286,767			287,518			287,518
Deferred tax asset		32,841			34,737			25,772
Other assets		14,607			13,990			16,345
Total assets	$	1,413,470		$	1,473,405		$	1,181,883
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	73,811		$	154,930		$	71,619
Accrued salaries and benefits		40,190			33,122			21,239
Other accrued liabilities		30,074			24,687			35,266
Total current liabilities		144,075			212,739			128,124
Long-term debt		60,000			100,000			160,439
Other long-term liabilities		57,703			56,631			33,837
Stockholders' equity:
Capital stock		1,259,279			1,247,191			1,203,496
Accumulated deficit		(107,014	)		(141,027	)		(344,345	)
Accumulated other comprehensive income (loss)		(573	)		(2,129	)		332
Total stockholders' equity		1,151,692			1,104,035			859,483
Total liabilities and stockholders' equity	$	1,413,470		$	1,473,405		$	1,181,883
Prepared in accordance with Generally Accepted Accounting Principles

CONTACT:
Investor Contact:
Cirrus Logic, Inc.
Thurman K. Case, 512-851-4125
Chief Financial Officer
Investor.Relations@cirrus.com