Cirrus logic reports q2 fy20 revenue of $388.9 million
Austin, texas--(business wire)--cirrus logic, inc. (nasdaq: crus), a leader in high-performance, low-power ics for audio, voice and other signal-processing applications, today posted on its website at http://investor.cirrus.com the quarterly shareholder letter that contains the complete financial results for the second quarter fiscal year 2020, which ended sept. 28, 2019, as well as the company’s current business outlook. “cirrus logic reported revenue for the september quarter significantly above the high end of guidance as we experienced stronger-than-anticipated demand for certain components,” said jason rhode, president and chief executive officer. “the company continues to experience increased demand for products that solve complex analog and digital signal-processing challenges. leveraging solid relationships with many of the leaders in the markets we target, a robust product portfolio and meaningful investments in innovative technologies, we are excited about our opportunities for growth in the coming years.” reported financial results – second quarter fy20 revenue of $388.9 million; gaap and non-gaap gross margin are 53.5 percent; gaap operating expenses of $121.2 million and non-gaap operating expenses of $101 million; and gaap earnings per share of $1.27 and non-gaap earnings per share of $1.55. a reconciliation of gaap to non-gaap financial information is included in the tables accompanying this press release. business outlook – third quarter fy20 revenue is expected to range between $325 million and $365 million; gaap gross margin is expected to be between 51 percent and 53 percent; and combined gaap r&d and sg&a expenses are expected to range between $118 million and $124 million, which includes approximately $13 million in stock-based compensation and $7 million in amortization of acquired intangibles. cirrus logic will host a live q&a session at 5:30 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.relations@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: 6988221). cirrus logic, inc. cirrus logic is a leader in high-performance, low-power ics for audio, voice and other signal-processing applications. cirrus logic’s products span the entire audio signal chain, from capture to playback, providing innovative products for the world’s top smartphones, tablets, digital headsets, wearables and emerging smart home 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, cirrus 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 and effective tax rate 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 our future growth opportunities, along with estimates for the third quarter fiscal year 2020 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. these risks and uncertainties include, but are not limited to, the following: the level of orders and shipments during the third quarter of fiscal year 2020, 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 30, 2019 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. summary financial data follows: consolidated condensed statement of operations (unaudited) (in thousands, except per share data) three months ended six months ended sep. 28, jun. 29, sep. 29, sep. 28, sep. 29, 2019 2019 2018 2019 2018 q2'20 q1'20 q2'19 q2'20 q2'19 portable products $ 349,379 $ 202,938 $ 324,049 $ 552,317 $ 536,309 non-portable and other products 39,533 35,315 42,256 74,848 84,479 net sales 388,912 238,253 366,305 627,165 620,788 cost of sales 180,979 115,759 181,186 296,738 311,110 gross profit 207,933 122,494 185,119 330,427 309,678 gross margin 53.5 % 51.4 % 50.5 % 52.7 % 49.9 % research and development 88,239 88,830 96,381 177,069 194,313 selling, general and administrative 33,018 29,520 33,160 62,538 65,944 total operating expenses 121,257 118,350 129,541 239,607 260,257 income from operations 86,676 4,144 55,578 90,820 49,421 interest income 2,250 2,285 1,525 4,535 2,972 other (expense) income (568 ) (378 ) (378 ) (946 ) (168 ) income before income taxes 88,358 6,051 56,725 94,409 52,225 provision (benefit) for income taxes 12,148 1,433 (1,448 ) 13,581 (1,676 ) net income $ 76,210 $ 4,618 $ 58,173 $ 80,828 $ 53,901 basic earnings per share: $ 1.31 $ 0.08 $ 0.96 $ 1.39 $ 0.88 diluted earnings per share: $ 1.27 $ 0.08 $ 0.93 $ 1.34 $ 0.86 weighted average number of shares: basic 58,011 58,540 60,472 58,276 60,967 diluted 60,213 60,258 62,431 60,260 62,810 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 six months ended sep. 28, jun. 29, sep. 29, sep. 28, sep. 29, 2019 2019 2018 2019 2018 net income reconciliation q2'20 q1'20 q2'19 q2'20 q2'19 gaap net income $ 76,210 $ 4,618 $ 58,173 $ 80,828 $ 53,901 amortization of acquisition intangibles 6,722 7,228 12,867 13,950 26,133 stock-based compensation expense 13,759 11,786 13,131 25,545 25,925 adjustment to income taxes (3,417 ) (2,803 ) (17,054 ) (6,220 ) (20,980 ) non-gaap net income $ 93,274 $ 20,829 $ 67,117 $ 114,103 $ 84,979 earnings per share reconciliation gaap diluted earnings per share $ 1.27 $ 0.08 $ 0.93 $ 1.34 $ 0.86 effect of amortization of acquisition intangibles 0.11 0.12 0.21 0.23 0.42 effect of stock-based compensation expense 0.23 0.20 0.21 0.42 0.41 effect of adjustment to income taxes (0.06 ) (0.05 ) (0.27 ) (0.10 ) (0.34 ) non-gaap diluted earnings per share $ 1.55 $ 0.35 $ 1.08 $ 1.89 $ 1.35 operating income reconciliation gaap operating income $ 86,676 $ 4,144 $ 55,578 $ 90,820 $ 49,421 gaap operating profit 22 % 2 % 15 % 14 % 8 % amortization of acquisition intangibles 6,722 7,228 12,867 13,950 26,133 stock-based compensation expense - cogs 254 241 170 495 369 stock-based compensation expense - r&d 7,830 7,240 6,834 15,070 14,084 stock-based compensation expense - sg&a 5,675 4,305 6,127 9,980 11,472 non-gaap operating income $ 107,157 $ 23,158 $ 81,576 $ 130,315 $ 101,479 non-gaap operating profit 28 % 10 % 22 % 21 % 16 % operating expense reconciliation gaap operating expenses $ 121,257 $ 118,350 $ 129,541 $ 239,607 $ 260,257 amortization of acquisition intangibles (6,722 ) (7,228 ) (12,867 ) (13,950 ) (26,133 ) stock-based compensation expense - r&d (7,830 ) (7,240 ) (6,834 ) (15,070 ) (14,084 ) stock-based compensation expense - sg&a (5,675 ) (4,305 ) (6,127 ) (9,980 ) (11,472 ) non-gaap operating expenses $ 101,030 $ 99,577 $ 103,713 $ 200,607 $ 208,568 gross margin/profit reconciliation gaap gross profit $ 207,933 $ 122,494 $ 185,119 $ 330,427 $ 309,678 gaap gross margin 53.5 % 51.4 % 50.5 % 52.7 % 49.9 % stock-based compensation expense - cogs 254 241 170 495 369 non-gaap gross profit $ 208,187 $ 122,735 $ 185,289 $ 330,922 $ 310,047 non-gaap gross margin 53.5 % 51.5 % 50.6 % 52.8 % 49.9 % effective tax rate reconciliation gaap tax expense (benefit) $ 12,148 $ 1,433 $ (1,448 ) $ 13,581 $ (1,676 ) gaap effective tax rate 13.7 % 23.7 % -2.6 % 14.4 % -3.2 % adjustments to income taxes 3,417 2,803 17,054 6,220 20,980 non-gaap tax expense $ 15,565 $ 4,236 $ 15,606 $ 19,801 $ 19,304 non-gaap effective tax rate 14.3 % 16.9 % 18.9 % 14.8 % 18.5 % tax impact to eps reconciliation gaap tax expense $ 0.20 $ 0.02 $ (0.02 ) $ 0.23 $ (0.03 ) adjustments to income taxes 0.06 0.05 0.27 0.10 0.34 non-gaap tax expense $ 0.26 $ 0.07 $ 0.25 $ 0.33 $ 0.31 consolidated condensed balance sheet unaudited; in thousands sep. 28, mar. 30, sep. 29, 2019 2019 2018 $ 221,937 $ 216,172 $ 195,857 22,563 70,183 48,701 217,962 120,656 206,789 144,829 164,733 142,315 44,729 53,239 48,910 652,020 624,983 642,572 238,741 158,968 151,207 142,834 - - 178,420 186,185 193,218 54,780 67,847 86,769 285,321 286,241 287,368 9,026 8,727 13,733 22,489 19,689 29,527 $ 1,583,631 $ 1,352,640 $ 1,404,394 $ 109,374 $ 48,398 $ 88,473 34,870 29,289 30,154 48,552 37,853 37,275 192,796 115,540 155,902 133,105 - - 76,847 78,309 79,127 2,258 18,551 26,390 1,392,650 1,363,736 1,338,586 (213,274 ) (222,430 ) (182,453 ) (751 ) (1,066 ) (13,158 ) 1,178,625 1,140,240 1,142,975 $ 1,583,631 $ 1,352,640 $ 1,404,394 prepared in accordance with generally accepted accounting principles
