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CEO sees substantial growth in FY 2013. Looks like a very bright future with a slew of new revenue generating products. Stock should much higher from here.



Cirrus Logic, Inc. (CRUS - News), a leader in high-precision analog and digital signal processing components, today posted on its investor relations website at the quarterly Shareholder Letter that contains the complete financial results for the fourth quarter and fiscal year 2012, which ended March 31, 2012, as well as the company’s current business outlook.

“We expect revenue to grow substantially in FY ’13 as new audio and energy products hit full production later this year,” said Jason Rhode, president and chief executive officer. “Our product development team has done an excellent job developing innovative new components and our supply chain team now has the task of supporting what we expect to be a significant ramp of a wide range of products. Combined with our strong balance sheet, the new credit facility gives us additional flexibility as we transition to a significantly higher run rate for our business. We are very excited about our outlook for FY ’13.”

Reported Financial Results

Fourth Quarter FY2012

•Revenue of $110.6 million
•Gross margin of 56 percent
•GAAP operating expenses of $41.5 million
•Non-GAAP operating expenses of $37.5 million
Due to recent financial performance, as well as further improvements to its business outlook, the company revalued the deferred tax asset to the full value it expects to use, which resulted in a non-cash, net tax benefit of approximately $30 million in Q4, or $0.45 per share, based on 67.9 million diluted shares.

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

While the company expects to grow revenue substantially during FY ’13, year-over-year revenue in Q1 is currently forecasted to grow approximately 10 percent. Due to the timing of various product introductions later this year, the company expects to transition to a sharply higher level of revenue beginning in the September quarter. In connection with this transition, the company also announced that it has entered into an unsecured, one-year $100 million revolving credit agreement that provides access to additional working capital the company may need in order to support the production ramps of multiple new products this fall. Wells Fargo Bank, N.A., is serving as the Administrative Agent. Wells Fargo Securities, LLC and Barclays Capital served as Joint Lead Arrangers and Joint Bookrunners for this transaction.

Business Outlook

First Quarter FY2013

•Revenue is expected to range between $96 million and $106 million;
•Gross margin is expected to be between 53 percent and 55 percent;
•Combined R&D and SG&A expenses are expected to range between $43 million and $45 million, which includes approximately $4 million in share-based compensation and amortization of acquisition-related intangibles expenses; and
•Ending inventory is expected to roughly double.
Cirrus Logic management will host a live Q&A session at 5:00 p.m. EDT on Wednesday, April 25, 2012, to answer questions related to its financial results and business outlook. Shareholders who would like to submit a question to be addressed during the call are requested to email

A live webcast of the Q&A session can be accessed on the Cirrus Logic website, and a replay will be available approximately one hour following its completion, or by calling (303) 590-3030, or toll-free at (800) 406-7325 (Access Code: 4531962).
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