SlideShare a Scribd company logo
Advanced Signal Processing Products
Investor Presentation
As of February 1, 2017
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this
presentation contain forward-looking statements, including industry market
projections; our revenue growth opportunities; our forecasted revenue, gross
margin and R&D and SG&A expenses; and our estimate for our FY17 effective
tax rate. 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 from our current
expectations, estimates and assumptions and the forward-looking statements
made in this presentation. These risks and uncertainties include, but are not
limited to, the risk factors listed in our Form 10-K for the year ended March 26,
2016, as amended, and in other filings with the Securities and Exchange
Commission. The foregoing information concerning our business outlook
represents our outlook as of the date of this presentation, and we undertake no
obligation to update or revise any forward-looking statements, whether as a
result of new developments or otherwise.
2
Cirrus Logic at a Glance
3
PROFILE
Founded in 1984
Listed on NASDAQ: CRUS
FY16 revenue: $1.2B
Headquarters in Austin, Texas
~1400 employees worldwide
PRODUCTS
Audio codecs and DSPs
Amplifiers
MEMS microphones
SoundClear® embedded software
Product applications: mobile,
consumer, automotive, industrial
CORE
STRENGTHS
Analog and digital signal processing
for audio and voice
Engineering execution
World-class customer support and
application expertise
Supply chain management and
quality
Extensive IP portfolio (over 2,450
pending & issued patents worldwide)
Compelling Business Strategy
4
LEVERAGE BEST IN
CLASS IP
TARGET FAST
GROWING MARKETS
ENGAGE TIER-ONE
MARKET LEADERS
DEVELOP
MEANINGFUL
ENGINEERING
RELATIONSHIPS
DESIGN BEST-IN-
CLASS CUSTOM,
SEMI-CUSTOM &
GENERAL MARKET
PRODUCTS
EXPAND WITH MORE
CONTENT, MORE
BOXES
HIGH OPERATING
MARGINS
STRONG CASH
FLOW
LEADING SUPPLIER
OF COMPLETE
AUDIO SIGNAL
CHAIN
Continuous Investment in Innovation
More than 900 Engineers Focused on
Execution:
• Accelerating product development
• Identifying and targeting new market
opportunities
• Broadening IP portfolio
• Best-in-class quality control and
supply chain management
$64
$86
$114
$126
$198
$269
FY11 FY12 FY13 FY14 FY15 FY16
R&D Spend FY11-FY16
33% CAGR
5
$195 $194 $182 $182 $175
$221
$370
$427
$810
$714
$917
$1,169
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Cirrus Logic Revenue (M)
Long-Term Track Record of Growth
6
• 10-year CAGR of 20% fueled by
strong demand for portable audio
products
• FY16 revenue up 28% Y/Y to $1.2B
• FY17 revenue expected to exceed
15% Y/Y long-term corporate
growth model
Focus on Tier One Customers
7
• Approximately 3,200 customers worldwide
• In Q3 FY17, our top customer represented 85% of total revenue
• Majority of products sold through direct sales channels
Unique Corporate Culture
8
“Best Places to Work”
2011-2016
9
Market &
Product
Overview
Opportunities in Key Markets Are Growing
• Demand for Audio & Voice in
Smartphones Continues to Expand
• Content expansion in flagship models
• Penetration of mid-tier models accelerating
• Interest from China OEMs increasing
• Rapid Growth for Smart Accessories
• Headset market transitioning to digital
connectivity
• Hi-Fi playback and ANC becoming important
features
• New form factors and use cases driving
innovation
• Exciting New Markets & Technology
• Smart Home, AR/VR, Connected Car
emerging
• Proliferation of voice as interface
• Secure, user identification & authentication
Smart
Accessories
Market TAM in units
- 500,000 1,000,000 1,500,000 2,000,000
2020
2016
Smartphones
&
Tablets
10
Source: Counterpoint and Company estimates
25% 21% 25% 28% 25% 30%
26%
27%
26% 24% 28%
27%
14%
14%
17% 14% 12% 11%
10% 11%
8% 8% 8% 9%
25% 27% 24% 26% 27%
23%
0%
20%
40%
60%
80%
100%
Q1/CY15 Q2/CY15 Q3/CY15 Q4/CY15 Q1/CY16 Q2/CY16
~99 100~199 200~299 300~399 400~
• Flagship Trends Fueling Demand
• Ultra-low power complex signal processing
to enable audio and voice use cases
• Increasing channel count for audio and
voice I/O
• Growing Beyond Flagship
• Increased penetration of new phone
platforms
• Optimized feature sets and cost to enable
new features on new platforms: always-on
control, boosted speaker amplifiers with
protection
• Advanced R&D Driving Long-Term
Innovation
• Always-on computing & context awareness
• Secure, biometric voice ID & authentication
• Advanced Hi-Fi, wired and wireless
connectivity features
Smartphone SAM Continues to Increase
11
~25%
of market
Smartphone Market Volume by Price Band
Source: Counterpoint and Company estimates
~30%
of market
• Improving Phone Design
• Consolidates on a single modern connector,
enables industrial design improvements
• Removal of 3.5mm jack opens up valuable
space inside the handset for other features
(battery, camera, other)
• Digital Connectivity Advantages
• Enables ‘smart’ headsets without a battery
• Delivers new features and innovation platform
• Hi-Fi audio playback & dynamic equalization
• Adaptive ANC and ambient awareness
• Crystal clear voice quality
• Integration with motion, biometric, control
sensors
Digital Headsets Are Here
Estimated total market of >1
billion units within 3 years
New Form
Factors
New
Features
Improved
Audio
Performance
Source: Counterpoint and Company estimates
12
Hi-Fi
Smart
Codec
MEMS
Cirrus Logic’s Digital Headset Solutions
ANC
Smart
Codec
From Capture to Playback: Our Product Offerings
13
åß
Audio
Codec
Audio
Amplifiers
Audio
DSP
MEMS
Mics
Audio
Software
Cirrus Logic is a Leading Supplier of Comprehensive
Hardware & Software Solutions Spanning the Entire Audio Signal Chain
SMART CODEC
CODEC + DSP + Embedded
Software
SoundClear Software Platform
14
CONTROL
ASR
PRE-PROCESSING
VOICE WAKE AND
SIMULTANEOUS
MULTI-TRIGGER
SEAMLESS VOICE
COMMAND
SPEAKER
IDENTIFICATION
SECURE VOICE
AUTHENTICATION
PLAYBACK
MUSIC/AUDIO
ENHANCEMENT
VIRTUAL
SURROUND
POST
PROCESSING
AUDIO DECODING
SPEAKER
PROTECTION
ACTIVE NOISE
CANCELLING
RECORD
MULTI-MIC
RECORD
INTELLIGENT GAIN
CONTROL
AUDIO ZOOM
AMBIENT,
MICROPHONE,
WIND AND MOTOR
NOISE REDUCTION
VOICE
MULTI-MIC
NOISE REDUCTION
ECHO
CANCELLATION
FULL-DUPLEX
VOICE
ENHANCEMENT
Scalable Portfolio Drives New Opportunity
Mobile
Smart
Accessories
Mid-Tier
Smart Codecs
ASP ~$1.00 -
$1.50
Flagship
Smart Codecs
ASP ~$2.00 -
$3.00
Boosted
Amplifiers
~$0.50 - $0.75
• New Solutions to Enable Mid-Tier
Mobile
• Optimizing features, use cases and cost
• Enabling new features in mid-tier
• Always on voice activation and control
• Boosted speaker amplifiers with protection
• Hi-Fi audio playback and capture
• Cross-Selling Entire Portfolio with
World-Class Design Support Services
• Incremental Opportunity in Smart
Accessories
• Hi-Fi codecs & MEMS for mainstream digital
headsets
• Smart Codecs & MEMS for high-end headsets
MEMS
Microphones
~$0.25 - $0.45
Flagship Digital
Headset
Codecs
ASP ~$2.00 -
$3.00
Hi-Fi Digital
Headset
Codecs
ASP ~$1.00 -
$1.50
MEMS
Microphones
~$0.25 - $0.45
15
Positioning the Company for Long-Term Growth
• Multiple Vectors for Content Expansion
• Use cases/features fueling need for ultra-low power sophisticated signal processing
products in wide range of mobile, accessory and consumer devices
• Scalable platforms with hardware and software solutions that target broader market
• Leveraging technology developed for smartphones into digital headsets, wearables,
smart mobile accessories, connected home and automotive markets
• Accelerating R&D Investment in Key Projects
• Heavily investing in new ventures, including digital headsets and voice biometrics
• Expanding our portfolio of innovative boosted amplifiers, smart codecs, MEMS
microphones and software capabilities
16
Financials
17
Financial Highlights
• $382.7M total cash, up $151.3M from the September quarter
• $100M debt, down $40M from the prior quarter
• Q3 ending inventory $154.1M, down from the prior quarter
BALANCE SHEET
• As of December 24, 2016 we have $175.8M remaining in our repurchase
program
• Repurchased 8.7M shares of common stock since November 2012
BUYBACK
• FY17 worldwide effective tax rate expected to range from ~ 24% to 26%
• Expect rate to gradually decrease on an annual basis going forwardTAXES
18
Cash Flow
• Over last 5 years
• Generated $790.9M of Cash Flow from
Operations
• Generated $592.2M of Free Cash Flow
• Returned 48% of Free Cash Flow to investors
in the form of share repurchases
Cash Position
• Ended Q3 FY17 with $382.7M Cash and
Investments
• Strong liquidity both domestically and
globally
Potential Use of Cash
• Increased investment in R&D
• Acquisitions
• Share repurchase
• Repayment of debt
• Infrastructure improvements
Strong Cash Generation
19
Operating Margin Profile
20
*GAAP to non-GAAP reconciliations available on slide 22 and at www.cirrus.com
15%
12%
18%
14%
18%
10%
9%
24%
28%
23%
18%
19%
20%
23%
15% 15%
28%
31%
0%
5%
10%
15%
20%
25%
30%
35%
Q3/FY15 Q4/FY15 Q1/FY16 Q2/FY16 Q3/FY16 Q4/FY16 Q1/FY17 Q2/FY17 Q3/FY17
GAAP Non-GAAP*
Financial Results and Outlook
21
Dec Quarter Results (Q3)
• Revenue: $523M
• Gross Margin: 48.8%
• OpEx: $109M (incl. $9.2M in stock
comp, $8.3M in amort.)
Mar Quarter Guidance (Q4)*
• Revenue: $300M - $340M
• Gross Margin GAAP 48% - 50%
• R&D and SG&A: $110M - $116M (incl.
$11M in stock comp and $8M in
amort.)
*Forecast as of February 1, 2017
**GAAP to non-GAAP reconciliations available on slide 22 and at
www.cirrus.com
$299
$255
$283
$307
$348
$232
$259
$429
$523
$320*
Q3/FY15 Q4/FY15 Q1/FY16 Q2/FY16 Q3/FY16 Q4/FY16 Q1/FY17 Q2/FY17 Q3/FY17 Q4/FY17
Q3/FY15 Q4/FY15 Q1/FY16 Q2/FY16 Q3/FY16 Q4/FY16 Q1/FY17 Q2/FY17 Q3/FY17
$0.35
$0.97
$0.32
$0.66
$0.50
$0.54
$0.53
$0.65
$0.63
$0.82
$0.21
$0.38
$0.27
$0.44
$1.30
$1.33
$1.83 $1.87
GAAP to Non-GAAP Reconciliation
22
Net Income Reconciliation
GAAP Net Income***
Amortization & other acquisition related items
Stock based compensation expense
Other expenses **
Adjustment for income taxes***
(unaudited, in thousands, except per share data, not prepared in accordance with GAAP)
We use these Non-GAAP financial numbers to assist us in the management of the Company because we believe that this information provides a more consistent and complete understanding of the
underlying results and trends of the ongoing business due to the uniqueness of these charges.
Dec. 24, Sep. 24, Jun. 25, Mar. 26, Dec. 26, Sep. 26, Jun. 27, Mar. 28, Dec. 27,
2016 2016 2016 2016 2015 2015 2015 2015 2014
Q3'17 Q2'17 Q1'17 Q4'16 Q3'16 Q2'16 Q1'16 Q4'15 Q3'15
122,041$ 86,039$ 18,071$ 14,012$ 41,384$ 34,880$ 33,354$ 21,349$ 22,729$
8,308 8,326 8,363 8,363 8,634 8,133 7,141 7,141 5,151
9,471 9,925 9,310 8,858 7,761 8,688 8,271 7,735 7,815
- (3,566) - (3,667) 78 752 (12,500) - 9,903
(15,094) (12,251) (6,846) (2,658) (3,737) (9,492) (175) 7,230 17,714
(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.
(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.
Non-GAAP Net Income
Earnings Per Share reconciliation*
GAAP Diluted earnings per share***
Effect of Amortization & other acquisition related items
Effect of Stock based compensation expense
Effect of Other expenses **
Effect of Adjustment for income taxes***
Non-GAAP Diluted earnings per share***
Operating Income Reconciliation
GAAP Operating Income
GAAP Operating Margin
Amortization & other acquisition related items
Stock compensation expense - COGS
Stock compensation expense - R&D
Stock compensation expense - SG&A
Other expenses **
Non-GAAP Operating Income
Non-GAAP Operating Margin
Operating Expense Reconciliation
GAAP Operating Expenses
Amortization & other acquisition related items
Stock compensation expense - R&D
Stock compensation expense - SG&A
Other expenses **
Non-GAAP Operating Expenses
Gross Margin/Profit Reconciliation
GAAP Gross Margin
GAAP Gross Profit
124,726$ 88,473$ 28,898$ 24,908$ 54,120$ 42,961$ 36,091$ 43,455$ 63,312$
1.83$ 1.30$ 0.27$ 0.21$ 0.63$ 0.53$ 0.50$ 0.32$ 0.35$
0.13 0.12 0.13 0.13 0.13 0.12 0.11 0.11 0.08
0.14 0.15 0.14 0.14 0.12 0.13 0.12 0.12 0.12
- (0.05) - (0.06) - 0.01 (0.19) - 0.15
(0.23) (0.19) (0.10) (0.04) (0.06) (0.14) - 0.11 0.27
1.87$ 1.33$ 0.44$ 0.38$ 0.82$ 0.65$ 0.54$ 0.66$ 0.97$
146,189$ 103,937$ 22,211$ 22,192$ 63,911$ 44,108$ 50,000$ 30,407$ 44,374$
28% 24% 9% 10% 18% 14% 18% 12% 15%
8,308 8,326 8,363 8,363 8,634 8,133 7,141 7,141 5,151
282 235 230 233 213 380 325 (10) 273
5,078 4,905 5,216 4,996 4,183 4,126 3,868 2,994 2,904
4,111 4,785 3,864 3,629 3,365 4,182 4,078 4,751 4,638
- (3,566) - (3,667) 78 752 (12,500) - 9,903
163,968$ 118,622$ 39,884$ 35,746$ 80,384$ 61,681$ 52,912$ 45,283$ 67,243$
31% 28% 15% 15% 23% 20% 19% 18% 23%
108,963$ 107,762$ 104,474$ 93,062$ 101,000$ 98,113$ 82,454$ 88,568$ 86,457$
(8,308) (8,326) (8,363) (8,363) (8,634) (8,133) (7,141) (7,141) (5,151)
(5,078) (4,905) (5,216) (4,996) (4,183) (4,126) (3,868) (2,994) (2,904)
(4,111) (4,785) (3,864) (3,629) (3,365) (4,182) (4,078) (4,751) (4,638)
- 3,566 - 3,667 (78) (752) 12,500 - (3,200)
91,466$ 93,312$ 87,031$ 79,741$ 84,740$ 80,920$ 79,867$ 73,682$ 70,564$
48.8% 49.4% 48.8% 49.7% 47.4% 46.4% 46.9% 46.6% 43.8%
255,152$ 211,699$ 126,685$ 115,254$ 164,911$ 142,221$ 132,454$ 118,975$ 130,831$
Stock compensation expense - COGS
Non-GAAP Gross Margin
Non-GAAP Gross Profit
Effective Tax Rate Reconciliation
GAAP Tax Expense***
GAAP Effective Tax Rate
Adjustments to income taxes***
Non-GAAP Tax Expense
Non-GAAP Effective Tax Rate
282 235 230 233 213 380 325 (10) 273
255,434$ 211,934$ 126,915$ 115,487$ 165,124$ 142,601$ 132,779$ 118,965$ 137,807$
48.8% 49.4% 48.9% 49.8% 47.5% 46.5% 47.0% 46.6% 46.2%
23,751$ 16,634$ 3,598$ 7,101$ 21,011$ 8,103$ 16,144$ 8,581$ 19,532$
16.3% 16.2% 16.6% 33.6% 33.7% 18.9% 32.6% 28.7% 46.2%
15,094 12,251 6,846 2,658 3,737 9,492 175 (7,230) (17,714)
38,845$ 28,885$ 10,444$ 9,759$ 24,748$ 17,595$ 16,319$ 1,351$ 1,818$
23.7% 24.6% 26.5% 28.2% 31.4% 29.1% 31.1% 3.0% 2.8%
Tax Impact to EPS Reconciliation
GAAP Tax Expense***
Adjustments to income taxes***
Non-GAAP Tax Expense
* Certain YTD numbers may not tie to individual quarter presentation due to YTD share count dilution
0.36$ 0.25$ 0.05$ 0.11$ 0.32$ 0.12$ 0.24$ 0.13$ 0.30$
0.23 0.19 0.10 0.04 0.06 0.14 - (0.11) (0.27)
0.59$ 0.44$ 0.15$ 0.15$ 0.38$ 0.26$ 0.24$ 0.02$ 0.03$
* Certain YTD numbers may not tie to individual quarter presentation due to YTD share count dilution
***Q2 and Q3 FY17 results have been updated since our last quarterly report to reflect Cirrus Logic’s adoption of Accounting Standards Update (ASU) 2016-09,Compensation - Stock Compensation (Topic 718):
Improvements to Employee Share-Based Payment Accounting. The adoption of this new guidance impacted our previously reported quarterly results.
** Other expenses may contain certain items such as acquisition expenses, litigation expenses , proceeds from a patent agreement, restructuring items, sales reorganizations, asset gains and impairments of non-marketable securities. GAAP to non-GAAP
reconciliations also available at www.cirrus.com.
***Q2 and Q3 FY17 results have been updated since our last quarterly report to reflect Cirrus Logic’s adoption of Accounting Standards Update (ASU) 2016-09,Compensation - Stock Compensation (Topic 718):
Improvements to Employee Share-Based Payment Accounting. The adoption of this new guidance impacted our previously reported quarterly results.
** Other expenses may contain certain items such as acquisition expenses, litigation expenses , proceeds from a patent agreement, restructuring items, sales reorganizations, asset gains and impairments of non-marketable securities. GAAP to non-GAAP
reconciliations also available at www.cirrus.com.
** Other expenses may contain certain items such as acquisition expenses, litigation expenses , proceeds from a patent agreement, restructuring items, sales reorganizations, asset gains and impairments of non-marketable securities. GAAP to non-GAAP
reconciliations also available at www.cirrus.com.
Cirrus Logic February 2017 Investor Presentation

More Related Content

Similar to Cirrus Logic February 2017 Investor Presentation

Rok overview 2017 april
Rok overview 2017 aprilRok overview 2017 april
Rok overview 2017 april
RockwellAutomationIR
 
Rok overview 2017 july
Rok overview 2017 julyRok overview 2017 july
Rok overview 2017 july
RockwellAutomationIR
 
Rockwell Automation Company Overview February 2017
Rockwell Automation Company Overview February 2017Rockwell Automation Company Overview February 2017
Rockwell Automation Company Overview February 2017
RockwellAutomationIR
 
MIND Revenue Release Q3 2023
MIND Revenue Release Q3 2023MIND Revenue Release Q3 2023
MIND Revenue Release Q3 2023
MIND CTI
 
MIND Revenue Release Q2 2022
MIND Revenue Release Q2 2022MIND Revenue Release Q2 2022
MIND Revenue Release Q2 2022
MIND CTI
 
Investor deck january 2017 final
Investor deck january 2017 finalInvestor deck january 2017 final
Investor deck january 2017 final
synacor2016ir
 
Investor deck november 2017 final
Investor deck november 2017 finalInvestor deck november 2017 final
Investor deck november 2017 final
synacor2016ir
 
2018 UBS Global Industrials and Transportation Conference Presentation
2018 UBS Global Industrials and Transportation Conference Presentation2018 UBS Global Industrials and Transportation Conference Presentation
2018 UBS Global Industrials and Transportation Conference Presentation
ingersollrand2016
 
Investor deck march 2017 sidoti v2
Investor deck march 2017 sidoti v2Investor deck march 2017 sidoti v2
Investor deck march 2017 sidoti v2
synacor2016ir
 
Rockwell Automation - August 2016
Rockwell Automation - August 2016Rockwell Automation - August 2016
Rockwell Automation - August 2016
investorsrockwell
 
Rockwell Automation - Q3 2016 Presentation
Rockwell Automation - Q3 2016 PresentationRockwell Automation - Q3 2016 Presentation
Rockwell Automation - Q3 2016 Presentation
investorsrockwell
 
Marc
MarcMarc
May 2018 investor presentation
May 2018 investor presentationMay 2018 investor presentation
May 2018 investor presentation
ingersollrand2016
 
Investor deck march 2017 sidoti
Investor deck march 2017 sidotiInvestor deck march 2017 sidoti
Investor deck march 2017 sidoti
synacor2016ir
 
Investor deck march 2017 final
Investor deck march 2017 finalInvestor deck march 2017 final
Investor deck march 2017 final
synacor2016ir
 
Investor deck march 2017 sidoti
Investor deck march 2017 sidotiInvestor deck march 2017 sidoti
Investor deck march 2017 sidoti
synacor2016ir
 
April/May 2018 Investor Presentation
April/May 2018 Investor PresentationApril/May 2018 Investor Presentation
April/May 2018 Investor Presentation
ingersollrand2016
 
Rok overview 2018 august d sv3
Rok overview 2018 august d sv3Rok overview 2018 august d sv3
Rok overview 2018 august d sv3
RockwellAutomationIR
 
Mind revenue release q3 2021
Mind revenue release q3 2021Mind revenue release q3 2021
Mind revenue release q3 2021
MIND CTI
 
MIND Revenue Release Q1 2022
MIND Revenue Release Q1 2022MIND Revenue Release Q1 2022
MIND Revenue Release Q1 2022
MIND CTI
 

Similar to Cirrus Logic February 2017 Investor Presentation (20)

Rok overview 2017 april
Rok overview 2017 aprilRok overview 2017 april
Rok overview 2017 april
 
Rok overview 2017 july
Rok overview 2017 julyRok overview 2017 july
Rok overview 2017 july
 
Rockwell Automation Company Overview February 2017
Rockwell Automation Company Overview February 2017Rockwell Automation Company Overview February 2017
Rockwell Automation Company Overview February 2017
 
MIND Revenue Release Q3 2023
MIND Revenue Release Q3 2023MIND Revenue Release Q3 2023
MIND Revenue Release Q3 2023
 
MIND Revenue Release Q2 2022
MIND Revenue Release Q2 2022MIND Revenue Release Q2 2022
MIND Revenue Release Q2 2022
 
Investor deck january 2017 final
Investor deck january 2017 finalInvestor deck january 2017 final
Investor deck january 2017 final
 
Investor deck november 2017 final
Investor deck november 2017 finalInvestor deck november 2017 final
Investor deck november 2017 final
 
2018 UBS Global Industrials and Transportation Conference Presentation
2018 UBS Global Industrials and Transportation Conference Presentation2018 UBS Global Industrials and Transportation Conference Presentation
2018 UBS Global Industrials and Transportation Conference Presentation
 
Investor deck march 2017 sidoti v2
Investor deck march 2017 sidoti v2Investor deck march 2017 sidoti v2
Investor deck march 2017 sidoti v2
 
Rockwell Automation - August 2016
Rockwell Automation - August 2016Rockwell Automation - August 2016
Rockwell Automation - August 2016
 
Rockwell Automation - Q3 2016 Presentation
Rockwell Automation - Q3 2016 PresentationRockwell Automation - Q3 2016 Presentation
Rockwell Automation - Q3 2016 Presentation
 
Marc
MarcMarc
Marc
 
May 2018 investor presentation
May 2018 investor presentationMay 2018 investor presentation
May 2018 investor presentation
 
Investor deck march 2017 sidoti
Investor deck march 2017 sidotiInvestor deck march 2017 sidoti
Investor deck march 2017 sidoti
 
Investor deck march 2017 final
Investor deck march 2017 finalInvestor deck march 2017 final
Investor deck march 2017 final
 
Investor deck march 2017 sidoti
Investor deck march 2017 sidotiInvestor deck march 2017 sidoti
Investor deck march 2017 sidoti
 
April/May 2018 Investor Presentation
April/May 2018 Investor PresentationApril/May 2018 Investor Presentation
April/May 2018 Investor Presentation
 
Rok overview 2018 august d sv3
Rok overview 2018 august d sv3Rok overview 2018 august d sv3
Rok overview 2018 august d sv3
 
Mind revenue release q3 2021
Mind revenue release q3 2021Mind revenue release q3 2021
Mind revenue release q3 2021
 
MIND Revenue Release Q1 2022
MIND Revenue Release Q1 2022MIND Revenue Release Q1 2022
MIND Revenue Release Q1 2022
 

Recently uploaded

Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024
Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024
Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024
Osisko Gold Royalties Ltd
 
一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理
一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理
一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理
ufomhev
 
UnityNet World Environment Day Abraham Project 2024 Press Release
UnityNet World Environment Day Abraham Project 2024 Press ReleaseUnityNet World Environment Day Abraham Project 2024 Press Release
UnityNet World Environment Day Abraham Project 2024 Press Release
LHelferty
 
Corporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdfCorporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdf
Probe Gold
 
Cadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdf
Cadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdfCadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdf
Cadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdf
kboyd6
 
Voyager Space_Management Presentation_Final
Voyager Space_Management Presentation_FinalVoyager Space_Management Presentation_Final
Voyager Space_Management Presentation_Final
kboyd6
 
YieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdf
YieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdfYieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdf
YieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdf
kboyd6
 
Therus network compañía de Liderazgo y banca digital
Therus network  compañía de Liderazgo y banca digitalTherus network  compañía de Liderazgo y banca digital
Therus network compañía de Liderazgo y banca digital
Rafael Mauro Duarte Morel
 
一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理
一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理
一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理
ybjk9iyd
 
一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理
一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理
一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理
gyucof
 
REVA_IOI_Gain Fund-CASH_11-14-23_digital.pdf
REVA_IOI_Gain Fund-CASH_11-14-23_digital.pdfREVA_IOI_Gain Fund-CASH_11-14-23_digital.pdf
REVA_IOI_Gain Fund-CASH_11-14-23_digital.pdf
kboyd6
 
Cove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdf
Cove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdfCove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdf
Cove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdf
kboyd6
 
Protecting Privacy in CDR Analysis: Best Practices from Experts
Protecting Privacy in CDR Analysis: Best Practices from ExpertsProtecting Privacy in CDR Analysis: Best Practices from Experts
Protecting Privacy in CDR Analysis: Best Practices from Experts
Milind Agarwal
 
Solaris Resources - June 2024 - FINAL-Public.pdf
Solaris Resources - June 2024 - FINAL-Public.pdfSolaris Resources - June 2024 - FINAL-Public.pdf
Solaris Resources - June 2024 - FINAL-Public.pdf
JacquelineWagenaar1
 
PPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdf
PPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdfPPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdf
PPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdf
kboyd6
 
Corporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdfCorporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdf
Probe Gold
 
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
nupyb
 
Corporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdfCorporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdf
Probe Gold
 
Collective Mining | Corporate Presentation - June 2024
Collective Mining  | Corporate Presentation - June 2024Collective Mining  | Corporate Presentation - June 2024
Collective Mining | Corporate Presentation - June 2024
CollectiveMining1
 

Recently uploaded (19)

Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024
Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024
Osisko Gold Royalties Ltd - Corporate Presentation, June 12, 2024
 
一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理
一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理
一比一原版(uvic毕业证书)加拿大维多利亚大学毕业证如何办理
 
UnityNet World Environment Day Abraham Project 2024 Press Release
UnityNet World Environment Day Abraham Project 2024 Press ReleaseUnityNet World Environment Day Abraham Project 2024 Press Release
UnityNet World Environment Day Abraham Project 2024 Press Release
 
Corporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdfCorporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdf
 
Cadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdf
Cadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdfCadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdf
Cadre Direct Access Fund II - Institutional Investor Teaser Q1 2024.pdf
 
Voyager Space_Management Presentation_Final
Voyager Space_Management Presentation_FinalVoyager Space_Management Presentation_Final
Voyager Space_Management Presentation_Final
 
YieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdf
YieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdfYieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdf
YieldStreet-Alternative-Income-Fund-Annual-Report-12-31-2023.pdf
 
Therus network compañía de Liderazgo y banca digital
Therus network  compañía de Liderazgo y banca digitalTherus network  compañía de Liderazgo y banca digital
Therus network compañía de Liderazgo y banca digital
 
一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理
一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理
一比一原版(Carleton毕业证)加拿大卡尔顿大学毕业证如何办理
 
一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理
一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理
一比一原版格罗宁根大学毕业证(RUG毕业证书)学历如何办理
 
REVA_IOI_Gain Fund-CASH_11-14-23_digital.pdf
REVA_IOI_Gain Fund-CASH_11-14-23_digital.pdfREVA_IOI_Gain Fund-CASH_11-14-23_digital.pdf
REVA_IOI_Gain Fund-CASH_11-14-23_digital.pdf
 
Cove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdf
Cove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdfCove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdf
Cove Multifamily Income Fund 28 LLC IOI 3.3.2021 (1).pdf
 
Protecting Privacy in CDR Analysis: Best Practices from Experts
Protecting Privacy in CDR Analysis: Best Practices from ExpertsProtecting Privacy in CDR Analysis: Best Practices from Experts
Protecting Privacy in CDR Analysis: Best Practices from Experts
 
Solaris Resources - June 2024 - FINAL-Public.pdf
Solaris Resources - June 2024 - FINAL-Public.pdfSolaris Resources - June 2024 - FINAL-Public.pdf
Solaris Resources - June 2024 - FINAL-Public.pdf
 
PPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdf
PPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdfPPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdf
PPMB_Cove Fund 75_DIGITAL_2023_3-16 (3).pdf
 
Corporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdfCorporate Presentation Probe June 2024.pdf
Corporate Presentation Probe June 2024.pdf
 
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
一比一原版(UAL毕业证)伦敦艺术大学毕业证如何办理
 
Corporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdfCorporate Presentation Probe June 19, 2024.pdf
Corporate Presentation Probe June 19, 2024.pdf
 
Collective Mining | Corporate Presentation - June 2024
Collective Mining  | Corporate Presentation - June 2024Collective Mining  | Corporate Presentation - June 2024
Collective Mining | Corporate Presentation - June 2024
 

Cirrus Logic February 2017 Investor Presentation

  • 1. Advanced Signal Processing Products Investor Presentation As of February 1, 2017
  • 2. Safe Harbor Statement Except for historical information contained herein, the matters set forth in this presentation contain forward-looking statements, including industry market projections; our revenue growth opportunities; our forecasted revenue, gross margin and R&D and SG&A expenses; and our estimate for our FY17 effective tax rate. 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 from our current expectations, estimates and assumptions and the forward-looking statements made in this presentation. These risks and uncertainties include, but are not limited to, the risk factors listed in our Form 10-K for the year ended March 26, 2016, as amended, and in other filings with the Securities and Exchange Commission. The foregoing information concerning our business outlook represents our outlook as of the date of this presentation, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise. 2
  • 3. Cirrus Logic at a Glance 3 PROFILE Founded in 1984 Listed on NASDAQ: CRUS FY16 revenue: $1.2B Headquarters in Austin, Texas ~1400 employees worldwide PRODUCTS Audio codecs and DSPs Amplifiers MEMS microphones SoundClear® embedded software Product applications: mobile, consumer, automotive, industrial CORE STRENGTHS Analog and digital signal processing for audio and voice Engineering execution World-class customer support and application expertise Supply chain management and quality Extensive IP portfolio (over 2,450 pending & issued patents worldwide)
  • 4. Compelling Business Strategy 4 LEVERAGE BEST IN CLASS IP TARGET FAST GROWING MARKETS ENGAGE TIER-ONE MARKET LEADERS DEVELOP MEANINGFUL ENGINEERING RELATIONSHIPS DESIGN BEST-IN- CLASS CUSTOM, SEMI-CUSTOM & GENERAL MARKET PRODUCTS EXPAND WITH MORE CONTENT, MORE BOXES HIGH OPERATING MARGINS STRONG CASH FLOW LEADING SUPPLIER OF COMPLETE AUDIO SIGNAL CHAIN
  • 5. Continuous Investment in Innovation More than 900 Engineers Focused on Execution: • Accelerating product development • Identifying and targeting new market opportunities • Broadening IP portfolio • Best-in-class quality control and supply chain management $64 $86 $114 $126 $198 $269 FY11 FY12 FY13 FY14 FY15 FY16 R&D Spend FY11-FY16 33% CAGR 5
  • 6. $195 $194 $182 $182 $175 $221 $370 $427 $810 $714 $917 $1,169 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Cirrus Logic Revenue (M) Long-Term Track Record of Growth 6 • 10-year CAGR of 20% fueled by strong demand for portable audio products • FY16 revenue up 28% Y/Y to $1.2B • FY17 revenue expected to exceed 15% Y/Y long-term corporate growth model
  • 7. Focus on Tier One Customers 7 • Approximately 3,200 customers worldwide • In Q3 FY17, our top customer represented 85% of total revenue • Majority of products sold through direct sales channels
  • 8. Unique Corporate Culture 8 “Best Places to Work” 2011-2016
  • 10. Opportunities in Key Markets Are Growing • Demand for Audio & Voice in Smartphones Continues to Expand • Content expansion in flagship models • Penetration of mid-tier models accelerating • Interest from China OEMs increasing • Rapid Growth for Smart Accessories • Headset market transitioning to digital connectivity • Hi-Fi playback and ANC becoming important features • New form factors and use cases driving innovation • Exciting New Markets & Technology • Smart Home, AR/VR, Connected Car emerging • Proliferation of voice as interface • Secure, user identification & authentication Smart Accessories Market TAM in units - 500,000 1,000,000 1,500,000 2,000,000 2020 2016 Smartphones & Tablets 10 Source: Counterpoint and Company estimates
  • 11. 25% 21% 25% 28% 25% 30% 26% 27% 26% 24% 28% 27% 14% 14% 17% 14% 12% 11% 10% 11% 8% 8% 8% 9% 25% 27% 24% 26% 27% 23% 0% 20% 40% 60% 80% 100% Q1/CY15 Q2/CY15 Q3/CY15 Q4/CY15 Q1/CY16 Q2/CY16 ~99 100~199 200~299 300~399 400~ • Flagship Trends Fueling Demand • Ultra-low power complex signal processing to enable audio and voice use cases • Increasing channel count for audio and voice I/O • Growing Beyond Flagship • Increased penetration of new phone platforms • Optimized feature sets and cost to enable new features on new platforms: always-on control, boosted speaker amplifiers with protection • Advanced R&D Driving Long-Term Innovation • Always-on computing & context awareness • Secure, biometric voice ID & authentication • Advanced Hi-Fi, wired and wireless connectivity features Smartphone SAM Continues to Increase 11 ~25% of market Smartphone Market Volume by Price Band Source: Counterpoint and Company estimates ~30% of market
  • 12. • Improving Phone Design • Consolidates on a single modern connector, enables industrial design improvements • Removal of 3.5mm jack opens up valuable space inside the handset for other features (battery, camera, other) • Digital Connectivity Advantages • Enables ‘smart’ headsets without a battery • Delivers new features and innovation platform • Hi-Fi audio playback & dynamic equalization • Adaptive ANC and ambient awareness • Crystal clear voice quality • Integration with motion, biometric, control sensors Digital Headsets Are Here Estimated total market of >1 billion units within 3 years New Form Factors New Features Improved Audio Performance Source: Counterpoint and Company estimates 12 Hi-Fi Smart Codec MEMS Cirrus Logic’s Digital Headset Solutions ANC Smart Codec
  • 13. From Capture to Playback: Our Product Offerings 13 åß Audio Codec Audio Amplifiers Audio DSP MEMS Mics Audio Software Cirrus Logic is a Leading Supplier of Comprehensive Hardware & Software Solutions Spanning the Entire Audio Signal Chain SMART CODEC CODEC + DSP + Embedded Software
  • 14. SoundClear Software Platform 14 CONTROL ASR PRE-PROCESSING VOICE WAKE AND SIMULTANEOUS MULTI-TRIGGER SEAMLESS VOICE COMMAND SPEAKER IDENTIFICATION SECURE VOICE AUTHENTICATION PLAYBACK MUSIC/AUDIO ENHANCEMENT VIRTUAL SURROUND POST PROCESSING AUDIO DECODING SPEAKER PROTECTION ACTIVE NOISE CANCELLING RECORD MULTI-MIC RECORD INTELLIGENT GAIN CONTROL AUDIO ZOOM AMBIENT, MICROPHONE, WIND AND MOTOR NOISE REDUCTION VOICE MULTI-MIC NOISE REDUCTION ECHO CANCELLATION FULL-DUPLEX VOICE ENHANCEMENT
  • 15. Scalable Portfolio Drives New Opportunity Mobile Smart Accessories Mid-Tier Smart Codecs ASP ~$1.00 - $1.50 Flagship Smart Codecs ASP ~$2.00 - $3.00 Boosted Amplifiers ~$0.50 - $0.75 • New Solutions to Enable Mid-Tier Mobile • Optimizing features, use cases and cost • Enabling new features in mid-tier • Always on voice activation and control • Boosted speaker amplifiers with protection • Hi-Fi audio playback and capture • Cross-Selling Entire Portfolio with World-Class Design Support Services • Incremental Opportunity in Smart Accessories • Hi-Fi codecs & MEMS for mainstream digital headsets • Smart Codecs & MEMS for high-end headsets MEMS Microphones ~$0.25 - $0.45 Flagship Digital Headset Codecs ASP ~$2.00 - $3.00 Hi-Fi Digital Headset Codecs ASP ~$1.00 - $1.50 MEMS Microphones ~$0.25 - $0.45 15
  • 16. Positioning the Company for Long-Term Growth • Multiple Vectors for Content Expansion • Use cases/features fueling need for ultra-low power sophisticated signal processing products in wide range of mobile, accessory and consumer devices • Scalable platforms with hardware and software solutions that target broader market • Leveraging technology developed for smartphones into digital headsets, wearables, smart mobile accessories, connected home and automotive markets • Accelerating R&D Investment in Key Projects • Heavily investing in new ventures, including digital headsets and voice biometrics • Expanding our portfolio of innovative boosted amplifiers, smart codecs, MEMS microphones and software capabilities 16
  • 18. Financial Highlights • $382.7M total cash, up $151.3M from the September quarter • $100M debt, down $40M from the prior quarter • Q3 ending inventory $154.1M, down from the prior quarter BALANCE SHEET • As of December 24, 2016 we have $175.8M remaining in our repurchase program • Repurchased 8.7M shares of common stock since November 2012 BUYBACK • FY17 worldwide effective tax rate expected to range from ~ 24% to 26% • Expect rate to gradually decrease on an annual basis going forwardTAXES 18
  • 19. Cash Flow • Over last 5 years • Generated $790.9M of Cash Flow from Operations • Generated $592.2M of Free Cash Flow • Returned 48% of Free Cash Flow to investors in the form of share repurchases Cash Position • Ended Q3 FY17 with $382.7M Cash and Investments • Strong liquidity both domestically and globally Potential Use of Cash • Increased investment in R&D • Acquisitions • Share repurchase • Repayment of debt • Infrastructure improvements Strong Cash Generation 19
  • 20. Operating Margin Profile 20 *GAAP to non-GAAP reconciliations available on slide 22 and at www.cirrus.com 15% 12% 18% 14% 18% 10% 9% 24% 28% 23% 18% 19% 20% 23% 15% 15% 28% 31% 0% 5% 10% 15% 20% 25% 30% 35% Q3/FY15 Q4/FY15 Q1/FY16 Q2/FY16 Q3/FY16 Q4/FY16 Q1/FY17 Q2/FY17 Q3/FY17 GAAP Non-GAAP*
  • 21. Financial Results and Outlook 21 Dec Quarter Results (Q3) • Revenue: $523M • Gross Margin: 48.8% • OpEx: $109M (incl. $9.2M in stock comp, $8.3M in amort.) Mar Quarter Guidance (Q4)* • Revenue: $300M - $340M • Gross Margin GAAP 48% - 50% • R&D and SG&A: $110M - $116M (incl. $11M in stock comp and $8M in amort.) *Forecast as of February 1, 2017 **GAAP to non-GAAP reconciliations available on slide 22 and at www.cirrus.com $299 $255 $283 $307 $348 $232 $259 $429 $523 $320* Q3/FY15 Q4/FY15 Q1/FY16 Q2/FY16 Q3/FY16 Q4/FY16 Q1/FY17 Q2/FY17 Q3/FY17 Q4/FY17 Q3/FY15 Q4/FY15 Q1/FY16 Q2/FY16 Q3/FY16 Q4/FY16 Q1/FY17 Q2/FY17 Q3/FY17 $0.35 $0.97 $0.32 $0.66 $0.50 $0.54 $0.53 $0.65 $0.63 $0.82 $0.21 $0.38 $0.27 $0.44 $1.30 $1.33 $1.83 $1.87
  • 22. GAAP to Non-GAAP Reconciliation 22 Net Income Reconciliation GAAP Net Income*** Amortization & other acquisition related items Stock based compensation expense Other expenses ** Adjustment for income taxes*** (unaudited, in thousands, except per share data, not prepared in accordance with GAAP) We use these Non-GAAP financial numbers to assist us in the management of the Company because we believe that this information provides a more consistent and complete understanding of the underlying results and trends of the ongoing business due to the uniqueness of these charges. Dec. 24, Sep. 24, Jun. 25, Mar. 26, Dec. 26, Sep. 26, Jun. 27, Mar. 28, Dec. 27, 2016 2016 2016 2016 2015 2015 2015 2015 2014 Q3'17 Q2'17 Q1'17 Q4'16 Q3'16 Q2'16 Q1'16 Q4'15 Q3'15 122,041$ 86,039$ 18,071$ 14,012$ 41,384$ 34,880$ 33,354$ 21,349$ 22,729$ 8,308 8,326 8,363 8,363 8,634 8,133 7,141 7,141 5,151 9,471 9,925 9,310 8,858 7,761 8,688 8,271 7,735 7,815 - (3,566) - (3,667) 78 752 (12,500) - 9,903 (15,094) (12,251) (6,846) (2,658) (3,737) (9,492) (175) 7,230 17,714 (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. (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. Non-GAAP Net Income Earnings Per Share reconciliation* GAAP Diluted earnings per share*** Effect of Amortization & other acquisition related items Effect of Stock based compensation expense Effect of Other expenses ** Effect of Adjustment for income taxes*** Non-GAAP Diluted earnings per share*** Operating Income Reconciliation GAAP Operating Income GAAP Operating Margin Amortization & other acquisition related items Stock compensation expense - COGS Stock compensation expense - R&D Stock compensation expense - SG&A Other expenses ** Non-GAAP Operating Income Non-GAAP Operating Margin Operating Expense Reconciliation GAAP Operating Expenses Amortization & other acquisition related items Stock compensation expense - R&D Stock compensation expense - SG&A Other expenses ** Non-GAAP Operating Expenses Gross Margin/Profit Reconciliation GAAP Gross Margin GAAP Gross Profit 124,726$ 88,473$ 28,898$ 24,908$ 54,120$ 42,961$ 36,091$ 43,455$ 63,312$ 1.83$ 1.30$ 0.27$ 0.21$ 0.63$ 0.53$ 0.50$ 0.32$ 0.35$ 0.13 0.12 0.13 0.13 0.13 0.12 0.11 0.11 0.08 0.14 0.15 0.14 0.14 0.12 0.13 0.12 0.12 0.12 - (0.05) - (0.06) - 0.01 (0.19) - 0.15 (0.23) (0.19) (0.10) (0.04) (0.06) (0.14) - 0.11 0.27 1.87$ 1.33$ 0.44$ 0.38$ 0.82$ 0.65$ 0.54$ 0.66$ 0.97$ 146,189$ 103,937$ 22,211$ 22,192$ 63,911$ 44,108$ 50,000$ 30,407$ 44,374$ 28% 24% 9% 10% 18% 14% 18% 12% 15% 8,308 8,326 8,363 8,363 8,634 8,133 7,141 7,141 5,151 282 235 230 233 213 380 325 (10) 273 5,078 4,905 5,216 4,996 4,183 4,126 3,868 2,994 2,904 4,111 4,785 3,864 3,629 3,365 4,182 4,078 4,751 4,638 - (3,566) - (3,667) 78 752 (12,500) - 9,903 163,968$ 118,622$ 39,884$ 35,746$ 80,384$ 61,681$ 52,912$ 45,283$ 67,243$ 31% 28% 15% 15% 23% 20% 19% 18% 23% 108,963$ 107,762$ 104,474$ 93,062$ 101,000$ 98,113$ 82,454$ 88,568$ 86,457$ (8,308) (8,326) (8,363) (8,363) (8,634) (8,133) (7,141) (7,141) (5,151) (5,078) (4,905) (5,216) (4,996) (4,183) (4,126) (3,868) (2,994) (2,904) (4,111) (4,785) (3,864) (3,629) (3,365) (4,182) (4,078) (4,751) (4,638) - 3,566 - 3,667 (78) (752) 12,500 - (3,200) 91,466$ 93,312$ 87,031$ 79,741$ 84,740$ 80,920$ 79,867$ 73,682$ 70,564$ 48.8% 49.4% 48.8% 49.7% 47.4% 46.4% 46.9% 46.6% 43.8% 255,152$ 211,699$ 126,685$ 115,254$ 164,911$ 142,221$ 132,454$ 118,975$ 130,831$ Stock compensation expense - COGS Non-GAAP Gross Margin Non-GAAP Gross Profit Effective Tax Rate Reconciliation GAAP Tax Expense*** GAAP Effective Tax Rate Adjustments to income taxes*** Non-GAAP Tax Expense Non-GAAP Effective Tax Rate 282 235 230 233 213 380 325 (10) 273 255,434$ 211,934$ 126,915$ 115,487$ 165,124$ 142,601$ 132,779$ 118,965$ 137,807$ 48.8% 49.4% 48.9% 49.8% 47.5% 46.5% 47.0% 46.6% 46.2% 23,751$ 16,634$ 3,598$ 7,101$ 21,011$ 8,103$ 16,144$ 8,581$ 19,532$ 16.3% 16.2% 16.6% 33.6% 33.7% 18.9% 32.6% 28.7% 46.2% 15,094 12,251 6,846 2,658 3,737 9,492 175 (7,230) (17,714) 38,845$ 28,885$ 10,444$ 9,759$ 24,748$ 17,595$ 16,319$ 1,351$ 1,818$ 23.7% 24.6% 26.5% 28.2% 31.4% 29.1% 31.1% 3.0% 2.8% Tax Impact to EPS Reconciliation GAAP Tax Expense*** Adjustments to income taxes*** Non-GAAP Tax Expense * Certain YTD numbers may not tie to individual quarter presentation due to YTD share count dilution 0.36$ 0.25$ 0.05$ 0.11$ 0.32$ 0.12$ 0.24$ 0.13$ 0.30$ 0.23 0.19 0.10 0.04 0.06 0.14 - (0.11) (0.27) 0.59$ 0.44$ 0.15$ 0.15$ 0.38$ 0.26$ 0.24$ 0.02$ 0.03$ * Certain YTD numbers may not tie to individual quarter presentation due to YTD share count dilution ***Q2 and Q3 FY17 results have been updated since our last quarterly report to reflect Cirrus Logic’s adoption of Accounting Standards Update (ASU) 2016-09,Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The adoption of this new guidance impacted our previously reported quarterly results. ** Other expenses may contain certain items such as acquisition expenses, litigation expenses , proceeds from a patent agreement, restructuring items, sales reorganizations, asset gains and impairments of non-marketable securities. GAAP to non-GAAP reconciliations also available at www.cirrus.com. ***Q2 and Q3 FY17 results have been updated since our last quarterly report to reflect Cirrus Logic’s adoption of Accounting Standards Update (ASU) 2016-09,Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The adoption of this new guidance impacted our previously reported quarterly results. ** Other expenses may contain certain items such as acquisition expenses, litigation expenses , proceeds from a patent agreement, restructuring items, sales reorganizations, asset gains and impairments of non-marketable securities. GAAP to non-GAAP reconciliations also available at www.cirrus.com. ** Other expenses may contain certain items such as acquisition expenses, litigation expenses , proceeds from a patent agreement, restructuring items, sales reorganizations, asset gains and impairments of non-marketable securities. GAAP to non-GAAP reconciliations also available at www.cirrus.com.