Cirrus Announces Preliminary September Quarter Results.

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Sept. 30, 2002

Cirrus Logic Inc. (Nasdaq:CRUS) today announced that it estimates revenues for its second fiscal quarter, ended Sept. 28, 2002, to be between $72 million and $73 million, down approximately 4-5 percent from the first fiscal quarter and from the company's original guidance issued on July 22, 2002.

The company expects pro forma gross margins to be in the range of 47 percent to 49 percent as originally guided, and the pro forma loss per share to be $0.08 to $0.10, also within the original guidance range. Pro forma results primarily exclude restructuring costs and acquisition-related amortization of intangibles and compensation charges.

"We continue to hold a leadership position in high-end audio components, and we believe we are well positioned to gain share in other investment areas, including DVD video controllers and video compression technology," said David D. French, president and CEO of Cirrus Logic. "While the current climate has constrained top-line growth opportunities even more than we had anticipated, we are pleased that our value added application focus and our diverse analog and DSP product portfolio have allowed us to maintain our gross margin outlook even in this difficult environment. We remain cautious on the outlook for consumer spending during the upcoming holiday season and anticipate that our revenue in the December quarter will be comparable to the level we estimate for the September quarter," he said.

October 23 Conference Call

Cirrus Logic will hold its regularly scheduled conference call to discuss the company's financial results for the second quarter of fiscal 2003. The call will be on Wednesday, Oct. 23 at 4 p.m. Central Time (CT) / 5 p.m. Eastern Time (ET). Cirrus Logic will release the company's second quarter 2003 results at approximately 3 p.m. CT/4 p.m. ET on Oct. 23. To listen to the conference call, please dial 712/271-3012 by 3:50 p.m. CT. You will need to reference the pass code "Cirrus Logic." A replay of the call will be available starting one hour after the completion of the call until Oct. 30. To access the recording, dial 402/220-3503. A live and archived webcast of the conference call will also be available via the company's Web site at www.cirrus.com.

About Cirrus Logic

Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for consumer entertainment electronics that allow people to see, hear, connect and enjoy digital entertainment. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets mainstream audio, video and Internet entertainment applications in the consumer entertainment market. Cirrus Logic operates from headquarters in Austin, Texas, with offices in California, Colorado, Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.

Except for historical information contained herein, the matters set forth in this news release, including our estimates of second fiscal quarter revenues, pro forma loss per share, expected gross margin levels, our anticipation of third fiscal quarter revenues, and our belief that we are well positioned to gain market share, are forward-looking statements that are dependent on certain risks and uncertainties including such factors, among others, as the results of a more thorough analysis of our second fiscal quarter revenues, cost of goods sold and operating expenses; and risks associated with gaining market share, included but not limited to overall conditions in the semiconductor market; the expansion of the consumer digital entertainment electronics market; the ability of the Company to introduce new products on a timely basis and to deliver products that perform as anticipated; customer cancellations of orders, or the failure to place orders consistent with forecasts; and the additional risk factors listed in the company's Form 10-K for the year ended March 30, 2002, and in other filings with the Securities and Exchange Commission. The foregoing information concerning Cirrus Logic's business outlook represents our outlook as of the date of this news release, and Cirrus Logic undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise, except as required by law.

Cirrus Logic is a trademark of Cirrus Logic Inc.