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

About this update from Cirrus Logic, Inc.

AUSTIN, Texas --(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 View source version on businesswire.com : https://www.businesswire.com/news/home/20240507635755/en/ Investor Contact: Chelsea Heffernan Vice President, Investor Relations Cirrus Logic, Inc. (512) 851-4125 [email protected] Source: Cirrus Logic, Inc.

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