Cirrus Logic Reports Q4 FY21 Revenue of $293.5 Million

Rhea-AI Summary

Cirrus Logic (Nasdaq: CRUS) reported solid financial results for Q4 and FY21, with Q4 revenue of $293.5 million and full-year revenue of $1.37 billion. The company achieved a GAAP gross margin of 50.5% and EPS of $0.42 for Q4, while FY21 EPS was $3.62. Despite supply constraints affecting Q4 results and the Q1 outlook, the firm anticipates revenue growth in FY22, backed by new product launches in audio and mixed-signal technologies. Upcoming Q1 revenue is projected between $240 million and $280 million.

Positive

• Q4 FY21 revenue reached $293.5 million, reflecting robust demand.
• FY21 total revenue was $1.37 billion, with a GAAP gross margin of 51.7%.
• GAAP EPS for FY21 was $3.62, indicating strong profitability.
• New product pipeline is expected to drive revenue growth in FY22.

Negative

• Supply constraints impacted Q4 revenue results and Q1 outlook.

Cirrus Logic, Inc. (Nasdaq: CRUS) today posted on its website at http://investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the fourth quarter and full fiscal year 2021, which ended March 27, 2021, as well as the company’s current business outlook.

“In FY21 the company delivered solid revenue, operating profit and EPS growth, driven by both content gains and higher unit volumes,” said John Forsyth, chief executive officer. “In the past year we increased the penetration of our audio solutions in smartphones, expanded the range of end products containing our audio and haptic components and made significant progress diversifying our mixed-signal product portfolio with key product launches in new areas. While supply constraints had some impact on our Q4 revenue results and Q1 outlook, we have a really exciting pipeline of new components ramping this year, and expect revenue growth to accelerate in FY22.”

Reported Financial Results – Fourth Quarter FY21

• Revenue of $293.5 million;
• GAAP and non-GAAP gross margin of 50.5 percent;
• GAAP operating expenses of $123.4 million and non-GAAP operating expenses of $106.0 million; and
• GAAP earnings per share of $0.42 and non-GAAP earnings per share of $0.66.

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

Reported Financial Results – Full Year FY21

• Revenue of $1.37 billion;
• GAAP and non-GAAP gross margin of 51.7 percent;
• GAAP operating expenses of $470.1 million and non-GAAP operating expenses of $401.9 million; and
• GAAP earnings per share of $3.62 and non-GAAP earnings per share of $4.58.

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

Business Outlook – First Quarter FY22

• Revenue is expected to range between $240 million and $280 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 $120 million and $126 million, including approximately $15 million in stock-based compensation expense and $3 million in amortization of acquired intangibles.

Beginning this quarter, we are adjusting how we report product line revenue to better represent our business and strategic focus. Sales will be designated in two categories: audio and high-performance mixed-signal. While we continue to see new opportunities in audio, we believe our investment in high-performance mixed-signal technologies will drive product diversification and fuel exciting avenues of growth in the coming years. Additional details relating to these product lines are provided in the Q4 FY21 Shareholder Letter. Prior periods in the statement of operations below have been retrospectively adjusted to reflect revenue in these new product lines.

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@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: 5783516).

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. Check us out at www.cirrus.com.

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, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, and effective tax rate. 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 the company’s expectations of accelerating revenue growth in FY22, our ability to ramp new components this year, and our opportunities to drive product diversification and growth in the coming years, along with estimates for the first quarter fiscal year 2022 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock 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 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; the risks of doing business internationally, including increased import/export restrictions and controls (e.g., the effect of the U.S. Bureau of Industry and Security of the U.S. Department of Commerce placing Huawei Technologies Co., Ltd. and certain of its affiliates on the Bureau’s Entity List), imposition of trade protection measures (e.g., tariffs or taxes), security and health risks, possible disruptions in transportation networks, and other economic, social, military and geo-political conditions in the countries in which we, our customers or our suppliers operate; recent 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; the level of orders and shipments during the first quarter of fiscal year 2022, 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 28, 2020 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
(unaudited)
(in thousands, except per share data)
	Three Months Ended												Twelve Months Ended
	Mar. 27,				Dec. 26,				Mar. 28,				Mar. 27,				Mar. 28,
	2021				2020				2020				2021				2020
	Q4'21				Q3'21				Q4'20				Q4'21				Q4'20
Audio	$	235,821			$	381,885			$	238,330			$	1,104,060			$	1,109,958
High-Performance Mixed-Signal		57,716				103,910				40,961				265,170				171,166
Net sales		293,537				485,795				279,291				1,369,230				1,281,124
Cost of sales		145,418				234,295				133,056				661,929				606,957
Gross profit		148,119				251,500				146,235				707,301				674,167
Gross margin		50.5%				51.8%				52.4%				51.7%				52.6%
Research and development		89,773				89,435				81,865				342,759				347,647
Selling, general and administrative		33,642				32,415				32,464				127,008				131,115
Restructuring costs		-				-				21,925				352				21,925
Total operating expenses		123,415				121,850				136,254				470,119				500,687
Income from operations		24,704				129,650				9,981				237,182				173,480
Interest income		1,064				1,206				2,474				5,224				9,401
Other income (expense)		2,152				(207	)			(106	)			2,840				(1,615	)
Income before income taxes		27,920				130,649				12,349				245,246				181,266
Provision for income taxes		2,639				16,281				2,191				27,902				21,768
Net income	$	25,281			$	114,368			$	10,158			$	217,344			$	159,498
Basic earnings per share:	$	0.44			$	1.97			$	0.17			$	3.74			$	2.74
Diluted earnings per share:	$	0.42			$	1.91			$	0.17			$	3.62			$	2.64
Weighted average number of shares:
Basic		57,899				58,024				58,527				58,106				58,317
Diluted		59,922				59,963				60,683				60,060				60,462
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. 27,				Dec. 26,				Mar. 28,				Mar. 27,				Mar. 28,
	2021				2020				2020				2021				2020
Net Income Reconciliation	Q4'21				Q3'21				Q4'20				Q4'21				Q4'20
GAAP Net Income	$	25,281			$	114,368			$	10,158			$	217,344			$	159,498
Amortization of acquisition intangibles		2,998				2,998				3,000				11,992				23,420
Stock-based compensation expense		14,693				13,287				14,052				56,762				53,757
Restructuring costs		-				-				20,602				352				21,925
Adjustment to income taxes		(3,251	)			(2,897	)			(6,320	)			(11,423	)			(17,411	)
Non-GAAP Net Income	$	39,721			$	127,756			$	41,492			$	275,027			$	241,189
Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	0.42			$	1.91			$	0.17			$	3.62			$	2.64
Effect of Amortization of acquisition intangibles		0.05				0.05				0.05				0.20				0.39
Effect of Stock-based compensation expense		0.24				0.22				0.23				0.94				0.89
Effect of Restructuring costs		-				-				0.34				0.01				0.36
Effect of Adjustment to income taxes		(0.05	)			(0.05	)			(0.11	)			(0.19	)			(0.29	)
Non-GAAP Diluted earnings per share	$	0.66			$	2.13			$	0.68			$	4.58			$	3.99
Operating Income Reconciliation
GAAP Operating Income	$	24,704			$	129,650			$	9,981			$	237,182			$	173,480
GAAP Operating Profit		8.4%				26.7%				3.6%				17.3%				13.5%
Amortization of acquisition intangibles		2,998				2,998				3,000				11,992				23,420
Stock-based compensation expense - COGS		260				236				213				900				908
Stock-based compensation expense - R&D		10,069				9,526				9,446				37,483				33,859
Stock-based compensation expense - SG&A		4,364				3,525				4,393				18,379				18,990
Restructuring costs		-				-				20,602				352				21,925
Non-GAAP Operating Income	$	42,395			$	145,935			$	47,635			$	306,288			$	272,582
Non-GAAP Operating Profit		14.4%				30.0%				17.1%				22.4%				21.3%
Operating Expense Reconciliation
GAAP Operating Expenses	$	123,415			$	121,850			$	136,254			$	470,119			$	500,687
Amortization of acquisition intangibles		(2,998	)			(2,998	)			(3,000	)			(11,992	)			(23,420	)
Stock-based compensation expense - R&D		(10,069	)			(9,526	)			(9,446	)			(37,483	)			(33,859	)
Stock-based compensation expense - SG&A		(4,364	)			(3,525	)			(4,393	)			(18,379	)			(18,990	)
Restructuring costs		-				-				(20,724	)			(352	)			(21,925	)
Non-GAAP Operating Expenses	$	105,984			$	105,801			$	98,691			$	401,913			$	402,493
Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	148,119			$	251,500			$	146,235			$	707,301			$	674,167
GAAP Gross Margin		50.5%				51.8%				52.4%				51.7%				52.6%
Stock-based compensation expense - COGS		260				236				213				900				908
Restructuring costs - COGS		-				-				(122	)			-				-
Non-GAAP Gross Profit	$	148,379			$	251,736			$	146,326			$	708,201			$	675,075
Non-GAAP Gross Margin		50.5%				51.8%				52.4%				51.7%				52.7%
Effective Tax Rate Reconciliation
GAAP Tax Expense	$	2,639			$	16,281			$	2,191			$	27,902			$	21,768
GAAP Effective Tax Rate		9.5%				12.5%				17.7%				11.4%				12.0%
Adjustments to income taxes		3,251				2,897				6,320				11,423				17,411
Non-GAAP Tax Expense	$	5,890			$	19,178			$	8,511			$	39,325			$	39,179
Non-GAAP Effective Tax Rate		12.9%				13.1%				17.0%				12.5%				14.0%
Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.04			$	0.27			$	0.04			$	0.46			$	0.36
Adjustments to income taxes		0.05				0.05				0.11				0.19				0.29
Non-GAAP Tax Expense	$	0.09			$	0.32			$	0.15			$	0.65			$	0.65

CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands
	Mar. 27,				Dec. 26,				Mar. 28,
	2021				2020				2020
ASSETS
Current assets
Cash and cash equivalents	$	442,164			$	327,294			$	292,119
Marketable securities		55,697				43,289				22,008
Accounts receivable, net		108,712				244,803				153,998
Inventories		173,263				142,689				146,725
Other current assets		62,683				45,469				35,346
Total current Assets		842,519				803,544				650,196
Long-term marketable securities		312,759				326,491				283,573
Right-of-use lease assets		133,548				135,719				141,274
Property and equipment, net		154,942				154,312				158,244
Intangibles, net		22,031				24,322				34,430
Goodwill		287,518				287,518				287,088
Deferred tax asset		9,977				7,277				10,052
Other assets		67,320				86,446				27,820
Total assets	$	1,830,614			$	1,825,629			$	1,592,677
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	102,744			$	90,814			$	78,412
Accrued salaries and benefits		54,849				39,367				42,439
Lease liability		14,573				14,539				13,580
Other accrued liabilities		41,444				40,135				24,206
Total current liabilities		213,610				184,855				158,637
Non-current lease liability		127,883				129,583				129,312
Non-current income taxes		64,020				70,866				71,143
Other long-term liabilities		36,096				39,968				3,806
Stockholders' equity:
Capital stock		1,498,819				1,483,567				1,434,929
Accumulated deficit		(112,689	)			(88,238	)			(201,681	)
Accumulated other comprehensive income (loss)		2,875				5,028				(3,469	)
Total stockholders' equity		1,389,005				1,400,357				1,229,779
Total liabilities and stockholders' equity	$	1,830,614			$	1,825,629			$	1,592,677
Prepared in accordance with Generally Accepted Accounting Principles

 

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FAQ

What were Cirrus Logic's Q4 FY21 earnings and revenue?

Cirrus Logic reported Q4 FY21 revenue of $293.5 million and GAAP earnings per share of $0.42.

What is the revenue forecast for Cirrus Logic in Q1 FY22?

Cirrus Logic expects Q1 FY22 revenue to range between $240 million and $280 million.

How did Cirrus Logic perform in FY21?

In FY21, Cirrus Logic achieved total revenue of $1.37 billion with GAAP earnings per share of $3.62.

What challenges did Cirrus Logic face in Q4 FY21?

Cirrus Logic experienced supply constraints that affected Q4 revenue results and the Q1 outlook.

What are Cirrus Logic's growth expectations for FY22?

Cirrus Logic anticipates revenue growth in FY22, driven by new product launches and increased market penetration.