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Cirrus Logic Reports Fiscal Fourth Quarter Revenue of $371.8 Million and Full Fiscal Year 2024 Revenue of $1.79 Billion
"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
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
192,625 317,464 186,354 916,072 956,979
Gross profit
51.8 % 51.3 % 50.0 % 51.2 % 50.4 %
Gross margin
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
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
140,249 149,916 249,196 572,606 707,948
Total operating expenses
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
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:
53,739 54,016 55,219 54,290 55,614
Basic
55,559 55,592 55,219 56,021 57,226
Diluted
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
---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ---------------------------- ----------------------------
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)
Mar. 30, Dec. 30, Mar. 25,
2024 2023 2023
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
ASSETS
Current assets
$ 502,764 $ 483,931 $ 445,784
Cash and cash equivalents
23,778 32,842 34,978
Marketable securities
162,478 217,269 150,473
Accounts receivable, net
227,248 256,675 233,450
Inventories
86,679 84,854 60,638
Prepaid wafers
103,245 109,814 92,533
Other current assets
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
1,106,192 1,185,385 1,017,856
Total current Assets
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
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------- --------------------
$ 2,231,576 $ 2,217,113 $ 2,063,966
Total assets
==================== ============== ==================== ==================== ============== ==================== ==================== ========= ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
$ 55,545 $ 56,231 $ 81,462
Accounts payable