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

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

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Contacts

Investor Contact:

Chelsea Heffernan

Vice President, Investor Relations

Cirrus Logic, Inc.

(512) 851-4125

Investor@cirrus.com