cirrus logic september quarter fiscal year 2011 investor update

Cirrus LogicSeptember Quarter Fiscal Year 2011 Investor Update

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; future product releases; and forecasted revenue, gross margin, and R&D and SG&A expenses. 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 27, 2010, 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.

More than 3,000 active customers with 700 innovative products

~534 Worldwide

1984 – Headquarters in Austin, Texas

~$182 Million in cash, with no debt

~ 1,100 patents

Founded

Fabless pioneer since early ’80s

Cirrus Logic Overview (NASDAQ: CRUS)

September Quarter Update

+81%Revenue Growth Sep.’10 vs.

Sep. ’09 Quarter

High Growth

Strong Margin

56%Gross Margin Sep. Quarter ’10

29%GAAP Operating Profit

Sep. Quarter ’10 Improved

Profit

$0.42 GAAP diluted income per share

Sep. Quarter ’10 Increased

Earnings

Diverse Applications - Similar Technologies

TabletsMediaPlayers

Media PCHome

Theater

MusicInstruments

Car Amplifiers

Weigh Scale

MotorControl

Digital Utility Meters

BluetoothHeadsets

Soundbar

HomeAudio

Pro & AutoAudio

Energy Control

EnergyIndustri

alMeas.

PFC (Power Factor

Correction)

Seismic Sensors

Portable

AudioSmart Phone

http://www.elymer.com/static_meters.htm

Our Vision

Be the first choice in high-performance analog and mixed-signal

components

Focus on key tier one customers

Tier One Customer Base

#1Customer

Focus on Tier One Customers Highly innovative custom ICs Building strong engineering relationships Focus on winning multiple designs

Driven by Custom ICs 100% share at Itron for power meters More custom ICs for Japanese and automotive

customers coming soon Best Long-Term Growth Opportunity

Focus on the best customers in select key growth markets

Our #1 Customer

#1Customer

As Percentage of Total Revenue

34%

Q2FY11

Q3FY10

Q4FY10

Q1FY11

34%

39%44%

Five Custom ICs to Date and Growing Best-in-class for audio quality and power

consumption Strong Engineering Relationship

Track record of exceptional execution Multiple Designs

Shipping the critical audio component in all major product lines

Phones, portable devices and computers Expanded from initial, single design win in

2005

Our Long-Term Growth Drivers

2010 2011 & Beyond 2009

Power Meter

Portable Audio

Soundbars

Meters & Monitors

EnergyControl

Unique Corporate Culture

Our “Rockstar” Team Over 65% of all employees are engineers

~50% have master degrees and PhDs Inspired and focused employees

Core for our long-term sustainable success

Attracting the Best Talent Recognized as a “Best Companies” to work for

Currently 94% of employees think “Cirrus is a great place to work”, up from 83% in ‘08

Well below industry average turnover rate

25 Years of Mixed-Signal Innovation

Proprietary Products Broad IP Portfolio

New digital energy Audio and Delta Sigma converters Apex Precision Power products Magnetic storage, graphics, etc.

Valuable Assets ~1,000 patents Strong patent portfolio protects

our market position August 2010: sold several patents

for $4MNetworkInterface

Video and Graphics

Mass Storage

and Memory

AudioAnalog/Mixed Signal

Energy Other

65

250

115

375

10

50

150

Pioneer of the Fabless Semiconductor Model

5 Foundries, 4 Assembly, and 6 Test Partners

205,000,000 ICs Shipped in 2009

Over 75% of assembly and test is under the same roof

0.25um to 0.18um technology sweet spot

Focus on lowering costs and cycle time

Tight controls over channel inventory

http://www.charteredsemi.com/

Our Global Customer Base

North America

EU

Japan & Korea

China & Asia

= Customer Design Location

= Location of Consumption

= Device Manufacturing Location

Design locations are key for driving revenue success Source: Based on Cirrus Logic estimates

Total Market Share 2008: 5% 2009: 7% (estimate)

Target Market Share #2 in portable audio

converters #3 in home audio

converters and interface #3 in car amplifier

converters $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2008 2009 2010 2011 2012 2013 2014

Portable Audio

Computer Audio

Home Audio

Automotive Audio

Other Audio

Audio Market: $2B and Growing

Source: The World Market for Audio ICs - 2009

In millions

Growth in Home Audio Applications

Total System Solution Offers High Content

Opportunity (~$5)

Audio DSP, Audio Converters and

Audio Amplifier Technology

Soundbars

Blu-ray Players

Automotive Audio Applications

Car Amplifiers

Satellite Radio

Ford SYNC

Developing New Custom Audio Chipset for Amplifiers

Tier-1 Customers: Bose, Harman, Ford, Sirius XM

Smartphones: Fast Growing Market

2009 2010 2011 2012 2013 2014

497Mu

439Mu

384Mu

322Mu

247Mu

182Mu

Source: Mobile Handset Q1 2010 Market Tracker

+22%CAGR 2009-2014

Our New Smartphone Products

CS42L73Low-power Smart Audio Codec

reduces system power consumption

CS35L01Low-power analog input hybrid

Class D audio amplifier

Our Focus

1st Lower Power Consumption

2nd Smaller Board Space

3rd Best-in-Class Audio Quality

Portable Audio Applications

AudioCODECs

Smartphone Tablets BluetoothHeadsets

Media Players

AudioAmplifiers

Audio DSP

Our Ultra Lower Power Audio Products

65% Less Space*

Generations of Smaller Board Space

1st Gen (287 mm2 area)

30% Less Space++

60%Less Space+

Highest audio

quality across all

generations

2nd Gen (110 mm2 area)

3rd Gen (77 mm2 area)

*vs. Competitors +vs. Our 1st Generation ++vs. Our 2nd Generation

Competition(at market entry)

10% Less Power*

Generations of Lower Power Consumption

40% Less Power++

60%Less Power+

3rd Gen (xx mm2

area)

1st Gen (13 mW)

2nd Gen ( 5 mW)

3rd Gen (3 mW )

Competition (at market entry)

*vs. Competitors +vs. Our 1st Generation ++vs. Our 2nd Generation

Highest audio

quality across all

generations

Key Customer Focused

Innovation Longer Battery Life Lower System Cost Smaller Footprint Fewer External Components Higher Audio Quality Simpler Design

Deep Applications Knowledge

~ 1,000 Patents 25 Years of Mixed-Signal

Innovation

Our Sustainable Advantage

Energy Overview

Foundational Industrial and

Energy

Power Meter

Power FactorCorrection (PFC)

LED Lighting, Motor Control

Power Meter: The Smart Grid Interface

Energy Measurement ICs (ADC) Since 1999

Smart Grid Upgrades Drive Growth

Focus on Key Customers and Emerging Markets

Energy Monitoring: New Emerging Market

Strong portfolio of measurement ADCs

2010 2011 2012 2013 2014

Source: Company Estimates and IMS WW Metering

= SmartMeters

= Monitoring

2014

100Mu

White Goods

ServerPower

Supplies

HomeEnergy

Monitors

50Mu

200Mu

150Mu

= BasicMeters

DIGITAL PFC

Switching Power

Supplies

AC/DC Adapters

Lighting Ballasts

The First Digital PFC that Beats Analog

• Better Light Load Efficiency• Lower System Cost• Higher Reliability

First Design WinsFall 2010

PFC: Big and Growing Market

2008 2009 2010 2011 2012

$100M

$200M

$300M

$400M

Source; IMS Power ICs 2009

2013

1,200,000,000Annual Units

Digital Energy Control is the Future Our Strategy

High innovation for PFCs which are a common building block in AC power

Expanding to more integrated ICs Focus on innovation for key customers

Digital Control Leverage our mixed-signal expertise for

digital energy (EXL Core) Over 2 years in development Over 53 patents and patents pending

Best-in-class performanceDigital control allows for intelligent shaping EMI which reduces filter

requirements, leading to significant lower system cost

Digital Energy Products Roadmap

PFC LED Lighting

Brushless DC Motor Controller

Power Meters &Monitoring

Growth Driver in 2010

Financials

Revenue Growth 118%

Q3FY10

Q4FY10

Q1FY11

87%

49%

Year-Over-Year RevenueGrowth

Q2FY11

81%

*Guidance as of October 21st , 2010

35%+

Q3FY11

(Forecast*)

Power Meter

Energy Base Business

Multiple Sources of Growth

Portable Audio

Q1FY10

Q2FY10

Q3FY11

(Forecast*)

Q4FY09

$82M

$56M

$88M+

$34M$38M

Revenue and Financials

Q3FY10

$65M

September Quarter (Q2) Revenue: $100.6M

(up 81% y/y)

GM: 56% R&D/SGA: $27.7M

(incl. $3M in stock comp and other)

December Guidance (Q3)(as of October 21, 2010)

Revenue: $88-$94M(up over 35% y/y)

GM: 54%-56% R&D and SG&A: $28M-$30M

(incl. $2.5M in stock comp and other)

$63M

Q4FY10

Q1FY11

$101M

Q2FY11

*Guidance as of October 21st , 2010

Growth Driven by New Products

“New” Products: less than 3 years since

market introduction

“Prime” Products: more than 3 years and less than 7 years since market

introduction

“Legacy” Products: more than 7 years since

market introduction

Q1FY10

Q2FY10

Q3FY09

Q2FY09

Q1FY09

Q4FY09

Q3FY10

52%52%

55%

55%

56%

56%54%

Revenue split between Audio and Energy

Cirrus Logic Gross Margins

Strong Margins

50% 57% 59% 56% 66% 74%

50% 43% 41% 44% 34% 26%

Q4FY10

56%

27%

73%

35%

65%

Q1FY11

Q2FY11

35%

67%

57%56%

33%

71%

29%

Q1FY10

Q2FY10

Q3FY09

Q2FY10

Q4FY09

Earnings and Operating Profit

Q3FY10

Operating Margins*

Q4FY10

0.420.40

0.04

0.07

0.31

0.16

(0.01)

0.11

0.170.19

Q1FY11

(0.01)

(0.12)

= GAAP EPS

= Non-GAAP EPS *

0.00

0.10

FY10 GAAP Non GAAP

FY10 Q2 12% 12%

FY10 Q3 17% 18%

FY10 Q4 13% 17%

FY11 Q1 21% 25%

FY11 Q2 29% 29%

* GAAP to non-GAAP reconciliations available on slide40 and at www.cirrus.com

0.25

0.30

$460M+ Federal NOLs No federal tax expense

No Debt

Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 $-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

7%

16%

13%15%

24%

Cash Flow from Operations

Cash Flow as a % of Revenue

Financial Strength Cash Generation Investing our Cash

Backend capacity IT Infrastructure Key Technology Investments

Strong Cash Generation $24.2M cash flow from operations in

Q2FY11 $182.4M in total cash $58.4M in actual cash generation the

last 4 quarters (19% of revenue)

GAAP to Non-GAAP ReconciliationJun. 28, Sep. 27, Dec. 27, Mar. 28, Jun. 27, Sep. 26, Dec. 26, Mar. 27, Jun. 26, Sep. 25,

2008 2008 2008 2009 2009 2009 2009 2010 2010 2010Net Income Reconciliation Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11GAAP Net Income (Loss) 2,138$ 6,355$ 2,750$ (7,768)$ 221$ 6,764$ 11,055$ 20,358$ 17,602$ 30,874$ Amortization and other acquisition related items (328) 364 364 404 404 404 404 404 370 353 Stock based compensation expense 1,670 1,230 1,310 1,089 1,353 1,383 1,397 1,181 1,356 3,025 Facility and other related adjustments 250 (34) (36) 115 (22) - (375) - 4 (100) International sales reorganization charges - - - - - - - - 790 - Provision for litigation expenses and settlements - 1,771 - 434 (2,745) - 135 - 135 - Restructuring and other costs, net - - - - - (165) 86 572 - 401 Charge (proceeds) from non-marketable securities & other 11 - - 2,144 - - (500) - - 500 Patent agreement, net - - - - - (1,400) - - - (4,000) Provision (benefit) for income taxes - - - 2,683 - - - (11,838) - (2,229) Non-GAAP Net Income (Loss) 3,741$ 9,686$ 4,388$ (899)$ (789)$ 6,986$ 12,202$ 10,677$ 20,257$ 28,824$

Earnings Per Share reconciliation *

GAAP Diluted income (loss) per share 0.03$ 0.10$ 0.04$ (0.12)$ -$ 0.10$ 0.17$ 0.31$ 0.25$ 0.42$ Effect of Amortization and other acquisition related items - - 0.01 0.01 0.01 0.01 0.01 - 0.01 - Effect of Stock based compensation expense 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.04 Effect of Facility and other related adjustments - - - - - - - - - - Effect of International sales reorganization charges - - - - - - - - 0.01 - Effect of Provision for lit igation expenses and settlements - 0.03 - 0.01 (0.04) - - - - - Effect of Restructuring and other costs, net - - - - - - - 0.01 - 0.01 Effect of Charge (proceeds) from non-marketable securities & other - - - 0.03 - - (0.01) - - 0.01 Effect of Patent agreement, net - - - - - (0.02) - - - (0.05) Effect of Provision (benefit) for income taxes - - - 0.04 - - - (0.18) - (0.03)

Non-GAAP Diluted income (loss) per share 0.06$ 0.15$ 0.07$ (0.01)$ (0.01)$ 0.11$ 0.19$ 0.16$ 0.29$ 0.40$

Operating Income ReconciliationGAAP Operating Income (Loss) 1,043$ 5,754$ 2,127$ (5,708)$ (247)$ 6,438$ 10,903$ 8,310$ 17,497$ 29,057$ GAAP Operating Income (Loss) Margin 2.4% 10.8% 4.9% -17.0% -0.7% 11.6% 16.7% 13.3% 21.4% 28.9%Amortization and other acquisition related items (328) 364 364 404 404 404 404 404 370 353 Stock compensation expense - COGS 197 48 55 44 52 43 55 61 55 64 Stock compensation expense - R&D 577 446 522 378 514 428 438 501 521 617 Stock compensation expense - SG&A 896 736 733 667 787 912 904 619 780 2,344 Facility and other related adjustments 250 (34) (36) 115 (22) - (375) - 4 (100) International sales reorganization charges - - - - - - - - 790 - Provision for litigation expenses and settlements - 1,771 - 434 (2,745) - 135 - 135 - Restructuring and other costs, net - - - - - (165) 86 572 - 401 Charge (proceeds) from non-marketable securities & other 11 - - 2,144 - - (500) - - 500 Patent agreement, net - - - - - (1,400) - - - (4,000) Non-GAAP Operating Income (Loss) 2,646$ 9,085$ 3,765$ (1,522)$ (1,257)$ 6,660$ 12,050$ 10,467$ 20,152$ 29,236$

Non-GAAP Operating Income (Loss) Margin 6.0% 17.1% 8.6% -4.5% -3.4% 12.0% 18.5% 16.7% 24.6% 29.1%

Operating Expense ReconciliationGAAP Operating Expenses 23,608$ 24,232$ 21,951$ 24,177$ 19,834$ 22,536$ 23,983$ 26,974$ 29,238$ 27,723$ Amortization and other acquisition related items 328 (364) (364) (404) (404) (404) (404) (404) (370) (353) Stock compensation expense - R&D (577) (446) (522) (378) (514) (428) (438) (501) (521) (617) Stock compensation expense - SG&A (896) (736) (733) (667) (787) (912) (904) (619) (780) (2,344) Facility and other related adjustments (250) 34 36 (115) 22 - 375 - (4) 100 International sales reorganization charges - - - - - - - - (790) - Provision for litigation expenses and settlements - (1,771) - (434) 2,745 - (135) - (135) - Restructuring and other costs, net - - - - - 165 (86) (572) - (401) Charge (proceeds) from non-marketable securities & other (11) - - (2,144) - - 500 - - (500) Patent agreement, net - - - - - 1,400 - - - 4,000 Non-GAAP Operating Expenses 22,202$ 20,949$ 20,368$ 20,035$ 20,896$ 22,357$ 22,891$ 24,878$ 26,638$ 27,608$

* Certain YTD numbers may not tie to individual quarter presentation due to YTD share count dilution

Quarterly

Summary

Strong Revenue Growth Today

Multiple Revenue Growth Opportunities

cirrus logic september quarter fiscal year 2011 investor update

Documents

investor update slide

quarter update

best customers

increased earnings slide

forwardlooking statements

innovative custom ics

audio quality

automotive customers