Cirrus Logic Reports Q1 FY22 Revenue of $277.3 Million

Summary financial data follows:


CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)

	Three Months Ended

	Jun. 26,		Mar. 27,		Jun. 27,
	2021		2021		2020
	Q1'22		Q4'21		Q1'21
Audio	$	217,355	$	235,821	$	206,449
High-Performance Mixed-Signal		59,898		57,716		36,124
Net sales		277,253		293,537		242,573
Cost of sales		137,307		145,418		115,101
Gross profit		139,946		148,119		127,472
Gross margin		50.5%		50.5%		52.6%

Research and development		85,696		89,773		78,741
Selling, general and administrative		35,147		33,642		29,704
Restructuring costs		-		-		352
Total operating expenses		120,843		123,415		108,797

Income from operations		19,103		24,704		18,675

Interest income		761		1,064		1,576
Other income (expense)		(242)		2,152		111
Income before income taxes		19,622		27,920		20,362
Provision for income taxes		2,413		2,639		2,153
Net income	$	17,209	$	25,281	$	18,209

Basic earnings per share:	$	0.30	$	0.44	$	0.31
Diluted earnings per share:	$	0.29	$	0.42	$	0.30

Weighted average number of shares:
Basic		57,582		57,899		58,313
Diluted		59,513		59,922		60,280

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

	Jun. 26,		Mar. 27,		Jun. 27,
	2021		2021		2020
Net Income Reconciliation	Q1'22		Q4'21		Q1'21
GAAP Net Income	$	17,209	$	25,281	$	18,209
Amortization of acquisition intangibles		2,998		2,998		2,998
Stock-based compensation expense		14,984		14,693		13,306
Restructuring costs		-		-		352
Adjustment to income taxes		(2,949)		(3,251)		(2,982)
Non-GAAP Net Income	$	32,242	$	39,721	$	31,883

Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	0.29	$	0.42	$	0.30
Effect of Amortization of acquisition intangibles		0.05		0.05		0.05
Effect of Stock-based compensation expense		0.25		0.24		0.22
Effect of Restructuring costs		-		-		0.01
Effect of Adjustment to income taxes		(0.05)		(0.05)		(0.05)
Non-GAAP Diluted earnings per share	$	0.54	$	0.66	$	0.53

Operating Income Reconciliation
GAAP Operating Income	$	19,103	$	24,704	$	18,675
GAAP Operating Profit		6.9%		8.4%		7.7%
Amortization of acquisition intangibles		2,998		2,998		2,998
Stock-based compensation expense - COGS		246		260		207
Stock-based compensation expense - R&D		9,612		10,069		8,653
Stock-based compensation expense - SG&A		5,126		4,364		4,446
Restructuring costs		-		-		352
Non-GAAP Operating Income	$	37,085	$	42,395	$	35,331
Non-GAAP Operating Profit		13.4%		14.4%		14.6%

Operating Expense Reconciliation
GAAP Operating Expenses	$	120,843	$	123,415	$	108,797
Amortization of acquisition intangibles		(2,998)		(2,998)		(2,998)
Stock-based compensation expense - R&D		(9,612)		(10,069)		(8,653)
Stock-based compensation expense - SG&A		(5,126)		(4,364)		(4,446)
Restructuring costs		-		-		(352)
Non-GAAP Operating Expenses	$	103,107	$	105,984	$	92,348

Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	139,946	$	148,119	$	127,472
GAAP Gross Margin		50.5%		50.5%		52.6%
Stock-based compensation expense - COGS		246		260		207
Non-GAAP Gross Profit	$	140,192	$	148,379	$	127,679
Non-GAAP Gross Margin		50.6%		50.5%		52.6%

Effective Tax Rate Reconciliation
GAAP Tax Expense	$	2,413	$	2,639	$	2,153
GAAP Effective Tax Rate		12.3%		9.5%		10.6%
Adjustments to income taxes		2,949		3,251		2,982
Non-GAAP Tax Expense	$	5,362	$	5,890	$	5,135
Non-GAAP Effective Tax Rate		14.3%		12.9%		13.9%

Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.04	$	0.04	$	0.04
Adjustments to income taxes		0.05		0.05		0.05
Non-GAAP Tax Expense	$	0.09	$	0.09	$	0.09


CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands


		Jun. 26,		Mar. 27,		Jun. 27,
		2021		2021		2020
ASSETS
Current assets
	Cash and cash equivalents	$	385,127	$	442,164	$	285,922
	Marketable securities		60,503		55,697		29,943
	Accounts receivable, net		136,534		108,712		136,539
	Inventories		192,722		173,263		199,332
	Other current assets		64,458		62,683		38,231
	Total current Assets		839,344		842,519		689,967

Long-term marketable securities			311,643		312,759		290,186
Right-of-use lease assets			131,446		133,548		139,492
Property and equipment, net			158,451		154,942		154,286
Intangibles, net			18,429		22,031		31,185
Goodwill			287,518		287,518		287,399
Deferred tax asset			19,482		9,977		6,970
Other assets			47,693		67,320		44,554
	Total assets	$	1,814,006	$	1,830,614	$	1,644,039

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
	Accounts payable	$	95,232	$	102,744	$	95,523
	Accrued salaries and benefits		37,220		54,849		28,768
	Lease liability		14,662		14,573		13,887
	Other accrued liabilities		39,387		41,444		24,866
	Total current liabilities		186,501		213,610		163,044

Non-current lease liability			126,442		127,883		129,627
Non-current income taxes			64,245		64,020		69,130
Other long-term liabilities			30,087		36,096		9,949

Stockholders' equity:
	Capital stock		1,514,549		1,498,819		1,451,297
	Accumulated deficit		(109,754)		(112,689)		(184,049)
	Accumulated other comprehensive income		1,936		2,875		5,041
	Total stockholders' equity		1,406,731		1,389,005		1,272,289
	Total liabilities and stockholders' equity	$	1,814,006	$	1,830,614	$	1,644,039


Prepared in accordance with Generally Accepted Accounting Principles

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