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Dec 28, 2019
Cirrus Logic Q3 2020 Earnings Report
Cirrus Logic's revenue exceeded expectations due to higher smartphone component volumes and development activities progressed across existing and new product categories.
Key Takeaways
Cirrus Logic reported Q3 FY20 revenue of $374.7 million, exceeding guidance due to higher smartphone component volumes. GAAP earnings per share were $1.13, and non-GAAP earnings per share were $1.41.
Revenue for the December quarter exceeded guidance.
Experienced higher-than-anticipated volumes for certain components shipping into smartphones.
Development activities across existing and new product categories progressed.
The company continued to execute on key strategic initiatives.
Cirrus Logic
Cirrus Logic
Forward Guidance
For the fourth quarter of fiscal year 2020, revenue is expected to range between $250 million and $290 million.
Positive Outlook
- GAAP gross margin to be between 51 percent and 53 percent
- Combined GAAP R&D and SG&A expenses to range between $115 million and $121 million
- Includes approximately $14 million in stock-based compensation expense
- Includes $3 million in amortization of acquired intangibles
- Company is well positioned for long term success
Challenges Ahead
- GAAP operating expense is expected to include a restructuring charge of approximately $22 million.
- The level of orders and shipments during the fourth quarter of fiscal year 2020
- Customer cancellations of orders
- The failure to place orders consistent with forecasts
- Risks and uncertainties