Cirrus Logic Reports Fiscal Q1 2009 Financial Results

Reports 7% Revenue Growth Year Over Year
AUSTIN, Texas--(Business Wire)--
Cirrus Logic Inc. (Nasdaq: CRUS), a leader in high-precision
analog and digital signal processing components, today announced
financial results for the first quarter of fiscal year 2009, which
ended June 28, 2008.

The company reported first quarter fiscal year 2009 revenue of
$44.0 million, compared with $41.1 million during the first quarter of
fiscal year 2008 and $44.8 million in the previous quarter. Gross
margin for the quarter was 56 percent compared with 59 percent for the
first quarter of fiscal year 2008 and 55 percent in the previous
quarter. These first quarter results included approximately $700,000
of revenue and approximately $200,000 in costs of sales associated
primarily with the shipment of end of life products from Caretta
Integrated Circuits.

Total GAAP operating expenses for the quarter were $23.6 million,
which included stock-based compensation, acquisition-related
amortization of intangibles, and vacated facility-related charges of
approximately $2.1 million. Cirrus Logic reported first quarter GAAP
net income of $2.1 million, or $0.03 per share based on 67.2 million
average diluted shares outstanding. Excluding the items noted above,
non-GAAP net income was $3.7 million, or $0.06 earnings per share.

Total cash and marketable securities at the end of the first
fiscal quarter was $103 million, compared with $187 million at the end
of the prior fiscal quarter. As previously announced, during the first
quarter the company completed its $150 million share repurchase
program.

Outlook for Second Quarter FY 2009 (ending September 27, 2008):

-- Revenue is expected to range between $50 million and $54
million;

-- Gross margin is expected to be between 53 percent and 55
percent; and

-- Combined R&D and SG&A expenses are expected to range between
$23 million and $25 million, which include approximately $2.0
million in share-based compensation and amortization of
acquisition-related intangibles expenses.

"We're pleased with our financial performance in Q1, especially in
light of current challenging market conditions. Revenues were up year
over year and we continue to drive operating expenses down," said
Jason Rhode, president and chief executive officer. "Our guidance for
the September quarter reflects our expectation for meaningful revenue
growth in the second half of this calendar year, driven by strong
demand for our portable audio products."

Conference Call

Cirrus Logic management will hold a conference call to discuss the
company's results for the first quarter of fiscal year 2009, on July
23, 2008, at 5:00 p.m. EDT. Those wishing to join should call
303-205-0066 (passcode: Cirrus Logic) at approximately 4:50 p.m. EDT.
A replay of the conference call will also be available beginning one
hour after the completion of the call, until July 30, 2008. To access
the recording, call 303-590-3000 (passcode: 11117098#). A live and an
archived webcast of the conference call will also be available via the
investor section of company's Web site at www.cirrus.com.

Cirrus Logic, Inc.

Cirrus Logic develops high-precision, analog and mixed-signal
integrated circuits for a broad range of consumer and industrial
markets. Building on its diverse analog and signal-processing patent
portfolio, Cirrus Logic delivers highly optimized products for
consumer and commercial audio, automotive entertainment, and
industrial and aerospace applications. The company operates from
headquarters in Austin, Texas, with offices in Tucson, Ariz., Europe,
Japan and Asia. More information about Cirrus Logic is available at
www.cirrus.com.

Use of non-GAAP Financial Information

To supplement Cirrus Logic's financial statements presented on a
GAAP basis, Cirrus has provided non-GAAP net earnings, and non-GAAP
diluted earnings per share. A reconciliation of the adjustments to
GAAP results for this quarter 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. 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.

Safe Harbor Statement

Except for historical information contained herein, the matters
set forth in this news release contain forward-looking statements,
including our projections for revenue growth and market share gains,
and estimates of second quarter fiscal year 2009 revenue, gross
margin, combined research and development and selling, general and
administrative expense levels, and share-based compensation expense.
In some cases, forward-looking statements are identified by words such
as "expect," "anticipate," "target," "project," "believe," "goals,"
"opportunity," "estimates," and "intend," variations of these types of
words and similar expressions are intended to identify these
forward-looking statements. 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.
These risks and uncertainties include, but are not limited to, the
following: overall economic pressures and general market and economic
conditions; overall conditions in the semiconductor market; our
ability to introduce new products on a timely basis and to deliver
products that perform as anticipated; risks associated with
international sales and international operations; the level of orders
and shipments during the second quarter of fiscal year 2009, as well
as customer cancellations of orders, or the failure to place orders
consistent with forecasts; pricing pressures; hardware or software
deficiencies; our dependence on subcontractors for assembly,
manufacturing, packaging and testing functions; our ability to make
continued sufficient investments in research and development; foreign
currency fluctuations; the retention of key employees; expenses
associated with on-going litigation related to the Company's stock
option program; and the risk factors listed in our Form 10-K for the
year ended March 29, 2008, 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
undertake no obligation to update or revise any forward-looking
statements, whether as a result of new developments or otherwise.

Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc.

Summary financial data follows:

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CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)

Quarter Ended
-------------------------------

Jun. 28, Mar. 29, Jun. 30,
2008 2008 2007
---------- ---------- ---------

Net revenue $ 44,011 $ 44,822 $ 41,124
Cost of sales 19,360 20,115 16,759
---------- ---------- ---------
Gross Margin 24,651 24,707 24,365
---------- ---------- ---------
Gross Margin Percentage 56.0% 55.1% 59.2%

Operating expenses:
Research and development 11,605 12,326 10,913
Selling, general and administrative 12,003 13,304 12,981
Restructuring and other costs - 12,095 -
---------- ---------- ---------
Total operating expenses 23,608 37,725 23,894
---------- ---------- ---------

Income (loss) from operations 1,043 (13,018) 471

Interest income, net 936 2,411 3,507
Other income (expense), net 195 (73) 26
---------- ---------- ---------
Income (loss) before income taxes 2,174 (10,680) 4,004
Provision for income taxes 36 3,005 15
---------- ---------- ---------
Net income (loss) $ 2,138 $ (13,685) $ 3,989
========== ========== =========

Basic income (loss) per share: $ 0.03 $ (0.16) $ 0.05
Diluted income (loss) per share: $ 0.03 $ (0.16) $ 0.04

Basic weighted average common shares
outstanding 66,622 85,310 88,490
Diluted weighted average common
shares outstanding 67,213 85,310 89,669

Prepared in accordance with Generally Accepted Accounting Principles
*T

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CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands

Jun. 28, Mar. 29, Jun. 30,
2008 2008 2007
---------- ---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 41,405 $ 56,614 $ 97,566
Restricted investments 5,755 5,755 5,755
Marketable securities 55,747 125,129 174,242
Accounts receivable, net 21,554 22,652 19,428
Inventories 24,006 22,464 17,512
Other current assets 8,973 10,041 14,138
---------- ---------- ----------
Total Current Assets 157,440 242,655 328,641

Property and equipment, net 20,332 20,961 10,508
Intangibles, net 25,212 26,044 11,246
Goodwill 6,194 6,194 6,461
Investment in Magnum Semiconductor - - 3,657
Other assets 2,393 2,452 1,900
---------- ---------- ----------
Total Assets $ 211,571 $ 298,306 $ 362,413
========== ========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 15,235 $ 16,164 $ 11,643
Accrued salaries and benefits 6,159 7,085 6,565
Other accrued liabilities 8,686 18,081 9,890
Deferred income on shipments to
distributors 5,809 6,584 5,362
Income taxes payable 84 76 6
---------- ---------- ----------
Total Current Liabilities 35,973 47,990 33,466

Long-term restructuring accrual 1,554 1,818 2,995
Other long-term obligations 7,321 7,563 9,664

Stockholders' equity:
Capital stock 940,702 937,716 932,689
Accumulated deficit (773,288) (696,557) (615,616)
Accumulated other comprehensive
loss (691) (224) (785)
---------- ---------- ----------
Total Stockholders' Equity 166,723 240,935 316,288
---------- ---------- ----------
Total Liabilities and
Stockholders' Equity $ 211,571 $ 298,306 $ 362,413
========== ========== ==========

Prepared in accordance with Generally Accepted Accounting Principles
*T

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CIRRUS LOGIC, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(unaudited, in thousands, except per share data)
(not prepared in accordance with GAAP)

We use these Non-GAAP financial numbers to assist us in the management
of the Company because we believe that this information provides a
more consistent and complete understanding of the underlying results
and trends of the ongoing business due to the uniqueness of these
charges.

Quarter Ended
-------------

Jun. 28,
2008
-------------
Net Income Reconciliation
GAAP net income $ 2,138
Non-GAAP adjustments:
Adjust:
Stock compensation expense 1,538
Amortization of acquisition intangibles 364
Facility and other related adjustments 261
Net revenue impact related to Caretta (692)
Costs of sales associated with Caretta during the
quarter 132

-------------
Non-GAAP net income $ 3,741
=============

EPS Reconciliation
GAAP diluted earnings per share $ 0.03
Non-GAAP adjustments:
Effect of stock compensation expense 0.03
Effect of amortization of acquisition intangibles 0.01
Effect of facility and other related adjustments -
Effect of revenue impact related to Caretta (0.01)
Effect of cost of sales related to Caretta -

-------------
Non-GAAP diluted earnings per share $ 0.06
=============

Operating Expense Reconciliation
GAAP Operating Expenses $ 23,608
Non-GAAP adjustments:
Less:
Stock compensation expense 1,473
Amortization of acquisition intangibles 364
Facility adjustments on subleases 261

-------------
Non-GAAP Operating Expenses $ 21,510
=============
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Cirrus Logic, Inc., Austin
Investor Contact:
Thurman K. Case, 512-851-4125
Chief Financial Officer
InvestorRelations@cirrus.com

Copyright Business Wire 2008