Cirrus Logic Aligns Video Recording Resources; Further Reduction in Operating Costs

AUSTIN, Texas--Oct. 29, 2003--Cirrus Logic Inc. today announced that it has curtailed further investment in R&D for standalone DVD players and will reduce headcount by 24 positions in Broomfield, Colo., over the course of its third fiscal quarter. As a result of this action, the company expects to reduce its annual R&D expenses by approximately $4.0 million to $5.0 million beginning in its fourth quarter. The company also said it expects to incur a cash charge of less than $1 million related to severance to be paid in the third quarter, and a charge of $2 million to $3 million related to facilities consolidation. As noted in Cirrus Logic's fiscal year 2004 Q2 press release on Oct. 22, 2003, the company implemented targeted expense reductions earlier in this quarter, which included the elimination of 38 positions, primarily in Austin, Texas.

Guidance

As stated in its Oct. 22, 2003, press release, the company's guidance for its third fiscal quarter ending Dec. 2, 20037, 2003, is as follows:

-- Revenue is expected to be $53 million to $56 million.

-- Gross margins are expected to be 50 percent to 52 percent.

-- Combined R&D and SG&A expenses are expected to total $31 million to $33 million.

-- Total cash at the end of the third quarter is expected to be in the range of $172 million to $177 million, an increase of $45 million to $50 million, and reflects the receipt earlier this month of $9 million from the settlement with ATI Technologies recorded in the second quarter and $45 million for the previously announced litigation settlement with Western Digital Corporation.

"Today's action reflects our continuing commitment to reduce our cost structure and focus on higher-margin analog and mixed-signal opportunities and DVD recording applications. We remain encouraged by the growth we are experiencing with our digital video recording product line," said David D. French, president and CEO of Cirrus Logic.

About Cirrus Logic Inc.

Cirrus Logic is a premier supplier of high-performance analog, mixed-signal and digital processing solutions for consumer entertainment electronics, automotive entertainment and industrial product applications. Building on its global market leadership in audio ICs and its rich mixed-signal patent portfolio, Cirrus Logic targets audio, video and precision mixed-signal applications in these growing markets. The company 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.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this news release, including our estimates of our annual R&D expenses and restructuring charges, third fiscal quarter revenues, combined research and development and selling, general and administrative expense levels, gross margin and cash levels, and expectations regarding our revenue growth opportunities, are forward-looking statements. These forward-looking statements are based on our current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from our current expectations and the forward-looking statements made in this press release. These risks and uncertainties include, but are not limited to, the following: overall conditions in the semiconductor market; the expansion of the consumer digital entertainment electronics market; our ability to introduce new products on a timely basis and to deliver products that perform as anticipated; risks associated with international sales and international operations; the level of orders and shipments during the third fiscal quarter of 2004, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; our expectations regarding our potential cost savings and the benefits of the ChipPAC outsourcing transaction, as well as a successful transition of this outsourcing; pricing pressures; hardware or software deficiencies; a shortage of manufacturing capacity; our ability to make continued substantial investments in research and development; foreign currency fluctuations; the retention of key employees; the impact of restructuring and other costs, such as work force reductions and facility consolidations; asset impairment charges; and the risk factors listed in our Form 10-K for the year ended March 29, 2003, 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 news release, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc. All other product names noted herein may be trademarks of their respective holders.