Thanks, Sherman,
Here is the entire release:
<<<Cirrus Logic Reports First Quarter Fiscal 2000 Results
FREMONT, Calif.--(BUSINESS WIRE)--July 21, 1999--Cirrus Logic
Inc. (Nasdaq:CRUS) today announced financial results for the first
quarter of fiscal 2000, which ended June 26, 1999.
Net revenues were $120.6 million and, excluding charges related
to the restructuring of the joint venture wafer fab agreements with
IBM and Lucent Technologies and other charges included in Cost of
Sales, net income was $0.5 million and diluted earnings per share were
$0.01. Including restructuring and other charges totaling $128.2
million, the company reported a net loss of $127.7 million and a
diluted per share loss of $2.12.
"Our first fiscal quarter marks our success in formally reducing
joint venture capacity obligations with MiCRUS and Cirent
Semiconductor, which supports our re-sized business model of reduced
fixed manufacturing costs and operating expenses," said David French,
president and chief executive officer of Cirrus Logic. "I believe that
virtually all critical actions required to re-engineer Cirrus Logic
are now largely behind us, and that our company is well positioned to
participate in the next cycle of semiconductor industry growth."
As a result of the agreements to restructure the joint venture
wafer fabs, Cirrus Logic has recorded a fiscal Q1 charge of
approximately $128.2 million, of which approximately $127.2 million is
included in Restructuring Costs, and approximately $1.0 million is
included in Cost of Sales. Following are further details related to
this restructuring:
-- The approximate $128.2 million charge taken in fiscal Q1, when
added to the $212.2 million in charges taken in prior periods,
brings the total charges relating directly to the joint venture
restructuring agreements to about $340.2 million.
-- As a result of the restructuring, Cirrus Logic does not
anticipate any further significant charges related to capacity
underutilization.
-- Also related to these restructuring agreements, Cirrus Logic will
pay approximately $150 million in cash during fiscal Q2, and to
place in escrow Common Stock valued at $32 million in settlement
of the agreements.
0-
Cirrus Logic is a premier supplier of high-performance analog
circuits and advanced mixed-signal chip solutions. The company's
products, sold under its own name and the Crystal product brand,
enable system-level applications in mass storage, audio and precision
data conversion. Additional information about Cirrus Logic is
available at www.cirrus.com.
Except for historical information contained herein, the matters
set forth in this news release are forward-looking statements that are
dependent on certain risks and uncertainties including such factors,
among others, as overall conditions in the semiconductor market,
customer cancellations of orders, or the failure to place orders
consistent with forecasts, unforeseen manufacturing difficulties, or
hardware or software deficiencies, or delays in customer qualification
of key new products, achieving high utilization of the company's
manufacturing resources, final determination of appropriate inventory
write-downs based on the outlook at the end of each quarter, actual
operational spending, obtaining financing sufficient to meet the
company's needs and the risk factors listed in the company's Form 10-K
for the year ended March 27, 1999.
Note to Editors: Cirrus Logic news releases may be obtained by
fax by dialing 1-800-359-6414, or by dialing 510/249-4200 from outside
the United States.
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
(Unaudited)
CONDENSED STATEMENTS OF OPERATIONS
Quarter Ended
-----------------------
June 26, June 27,
1999 1998
---------- ----------
Net sales $ 120,553 $ 177,931
Costs and expenses:
Cost of sales 71,386 117,819
Research and development 26,694 35,522
Selling, general and administrative 22,663 27,090
Restructuring costs, gain on
sale of assets and other, net 127,210 (3,006)
--------- ---------
Total costs and expenses 247,953 177,425
Income (loss) from operations (127,400) 506
Interest and other
(expense) income, net (346) 306
Income (loss) before provision
for income taxes (127,746) 812
Provision (benefit) for income taxes -- 296
Net income (loss) $(127,746) $ 516
========= =========
Net income (loss) per share:
Basic $ (2.12) $ 0.01
========= =========
Diluted $ (2.12) $ 0.01
========= =========
Weighted average common
shares outstanding:
Basic 60,171 66,650
Diluted 60,171 67,461
Amounts in thousands, except per share amounts
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
(Unaudited)
CONDENSED BALANCE SHEETS
June 26, March 27,
1999 1999
--------- -----------
Current assets:
Cash, cash equivalents and
short term investments $ 259,135 $ 305,350
Accounts receivable, net 67,431 66,063
Inventories 45,409 40,262
Other current assets 44,385 19,039
--------- ---------
Total current assets 416,360 430,714
Property and equipment, net 47,732 48,024
Manufacturing agreements, net
and investment in joint ventures -- 14,000
Deposits and other assets 37,278 39,892
--------- ---------
Total assets $ 501,370 $ 532,630
========= =========
Current liabilities:
Accounts payable, accrued liabilities
and restructuring accrual $ 310,088 $ 207,033
Obligations under equipment loans
and capital leases, current 18,840 23,076
Income taxes payable 35,980 36,593
--------- ---------
Total current liabilities $ 364,908 266,702
Long term obligations and
convertible subordinated notes 319,235 323,648
Stockholders' equity (net capital
deficiency):
Capital stock 328,878 326,185
Retained earnings (accumulated deficit) (511,651) (383,905)
--------- ---------
Total stockholders' equity
(net capital deficiency) (182,773) (57,720)
--------- ---------
Total liabilities and
stockholders' equity (net
capital deficiency) $ 501,370 $ 532,630
========= =========
Amounts in thousands
CONTACT:
Cirrus Logic, Inc.
Glenn Jones, 510/226-2257 (VP, Chief Financial Officer)
gjones@corp.cirrus.com
Tom Rigoli, 510/226-2259 (VP, Corporate Communications)
trigoli@corp.cirrus.com
KEYWORD: CALIFORNIA
BW0522 JUL 21,1999
13:56 PACIFIC
16:56 EASTERN>>> |
