Cirrus Logic : Fact Sheet Q3 FY21

Fact Sheet - Q3 FY21

PROFILE:

• Founded 1984
• Listed on NASDAQ: CRUS
• Core technology: analog and digital signal processing
• Extensive IP portfolio (over 3,580 pending/ issued patents)
• One customer contributed 87% revenue in Q3 FY21
• Portable accounted for 93% of total revenue, Non-Portable & Other contributed 7%

CORE STRENGTHS:

• Ultra-lowpower, low-latency analog and mixed- signal processing components and the associated software algorithms
• Execution and supply chain management
• Strong customer relationships
• Focused on market leading customers. Currently shipping in:
• • Smartphones: Top 7 OEMs
  • Tablets: 3 of the top 5 OEMs
  • Truly wireless headsets: 2 of the top 3 brands
  • Wearables: 2 of the top 5 brands
  • Laptops: 2 of the top 5 OEMs

PRODUCTS & APPLICATIONS:

• Audio amplifiers
• Camera controllers
• Haptic driver and sensing solutions
• Smart codecs
• Applications: flagship/mid-tier smartphones, tablets, truly wireless headsets, wearables, laptops and AR/VR headsets

GROWTH STRATEGY:

1. Strengthening our position as the leading audio supplier in smartphones
2. Increasing sales of audio components in applications beyond smartphones
3. • Tablets, wearables, truly wireless headsets, laptops and AR/VR headsets
4. Drawing on our extensive mixed-signal engineering expertise to develop technology in new product areas that we believe will drive diversification beyond the audio domain
5. • Haptic driver and sensing solutions, camera controllers, a power conversion and control IC and other high-performancemixed-signal opportunities

Q4 FY21 OUTLOOK

Revenue: $280 to $320M

Gross Margin: 50 - 52%

R&D and SG&A: $121 to $127M

(includes $15M stock-based comp, $3M amortization of acquisition intangibles)

Q3 FY21 RESULTS

Revenue: $485.8M

Gross Margin: 51.8%

GAAP EPS: $1.91

Non-GAAP EPS: $2.13

FY20 RESULTS

Revenue: $1.28B

Gross Margin: 52.6%

GAAP EPS: $2.64

Non-GAAP EPS: $3.99

USE OF CASH

Priorities include R&D, M&A and share repurchases

$697M in cash, no debt

In FY20, we used $120M to repurchase ~2M shares at an average price of $56.32

~$55M remaining in current repurchase program

The Board of Directors recently authorized an additional $350M for share repurchases

SAFE HARBOR STATEMENT

Except for historical information contained herein, the matters set forth in this document contain forward-looking statements, including statements about our ability to strengthen our position as the leading audio supplier in smartphones; our ability to increase sales of audio components in applications beyond smartphones; our ability to develop new product areas that will drive diversification beyond audio; along with estimates for the fourth quarter fiscal year 2021 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, and amortization of acquired intangibles. 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 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; the level of orders and shipments during the fourth quarter of fiscal year 2021, 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.

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.

					Fiscal
	Three Months			Year
		Ended			Ended
		Dec. 26,			Mar. 28,
		2020			2020
Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	1.91	$	2.64
Effect of Amortization of acquisition intangibles		0.05			0.39
Effect of Stock-based compensation expense		0.22			0.89
Effect of Restructuring costs		-			0.36
Effect of Adjustment to income taxes		(0.05)			(0.29)
Non-GAAP Diluted earnings per share	$	2.13		$	3.99

*Complete GAAP to non-GAAP reconciliation also available at investor.cirrus.com