CRUS
(.02) vs estimated (.04)
10% growth
nice 'war chest' ... with surprise investment in PHCM !!
<<<Wednesday October 20, 4:17 pm Eastern Time
Company Press Release
Cirrus Logic Reports Second Quarter Fiscal 2000 Results
Net Revenues Grow 10 Percent Over Prior Quarter
AudioLogic Acquisition Strengthens Audio Market Leadership Position
FREMONT, Calif.--(BUSINESS WIRE)--Oct. 20, 1999--Cirrus Logic Inc. (Nasdaq: CRUS - news) today announced financial results for the second quarter of fiscal 2000, which ended September 25, 1999.
Net revenues grew sequentially to $132.8 million and, excluding charges that related to the acquisition of AudioLogic Inc. during the quarter, operating income was $2.6 million. Including one-time charges totaling $8.0 million related to the AudioLogic acquisition for in-process research and development expenses, the company reported a net loss of $9.4 million and a diluted per share loss of $0.15. On a pro-forma basis, excluding the one-time acquisition costs, the net loss after interest expense was approximately $.02 loss per share.
'With our quarterly increase in both sales and operating profit, we have begun to show tangible progress in building the new Cirrus Logic,' said David D. French, president and chief executive officer. French pointed to the recent AudioLogic acquisition as a good example of how the new Cirrus Logic is strengthening its position in key growth markets. 'Just as extended battery life, expanding feature sets and miniaturization have driven explosive demand for cellular phones, AudioLogic's technology in tandem with our Crystal® audio portfolio promise to revolutionize the market for portable entertainment devices by enabling longer battery life, shorter time-to-market and smaller form factors.'
Cirrus Logic's quarter end balance sheet reported $100.3 million in cash, as well as the valuation of its investment in Phone.com, Inc.(Nasdaq: PHCM - news), which recently became a publicly held company. Cirrus Logic's stock holdings in Phone.com were valued at approximately $81.9 million at the close of the fiscal second quarter.
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, and in other filings with the Securities and Exchange Commission.
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
Unaudited
(in thousands, except per share data)
CONDENSED STATEMENTS OF OPERATIONS
Quarter Ended
Sept. 25, June 26, Sept. 26,
1999 1999 1998
Net sales $ 132,842 $ 120,553 $ 169,689
Costs and expenses:
Cost of sales 79,637 71,386 155,611
Research and
development 27,940 26,694 34,145
Selling, general
and administrative 22,647 22,663 26,810
Restructuring costs,
gain on sale of
assets and other, net -- 127,210 28,522
Acquired in-process
research and
development
expenses (Note 1) 8,013 -- --
Total costs and
expenses 138,237 247,953 245,088
Loss from operations (5,395) (127,400) (75,399)
Interest and other
income (expense), net (3,959) (346) 792
Loss before provision
for income taxes (9,354) (127,746) (74,607)
Provision for income
taxes -- -- 46,402
Net loss $ (9,354) $(127,746) $(121,009)
Net loss per share:
Basic (0.15) (2.12) (1.90)
Diluted (0.15) (2.12) (1.90)
Weighted average
common shares
outstanding:
Basic 61,353 60,171 63,748
Diluted 61,353 60,171 63,748
Two Quarters Ended
Sept. 25, Sept. 26,
1999 1998
Net sales $ 253,395 $ 347,620
Costs and expenses:
Cost of sales 151,023 273,430
Research and
development 54,634 69,667
Selling, general
and administrative 45,310 53,900
Restructuring costs,
gain on sale of
assets and other, net 127,210 25,516
Acquired in-process
research and
development
expenses (Note 1) 8,013 --
Total costs and
expenses 386,190 422,513
Loss from operations (132,795) (74,893)
Interest and other
income (expense), net (4,305) 1,098
Loss before provision
for income taxes (137,100) (73,795)
Provision for income
taxes -- 46,698
Net loss $(137,100) $(120,493)
Net loss per share:
Basic (2.26) (1.85)
Diluted (2.26) (1.85)
Weighted average
common shares
outstanding:
Basic 60,762 65,199
Diluted 60,762 65,199
(Note 1) The Company incurred a one-time charge of $8.0 million during
the second quarter of fiscal 2000 due to the write-off of
in-process research & development expenses associated with the
acquisition of AudioLogic, Inc.
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
(Unaudited)
(in thousands)
CONDENSED BALANCE SHEETS
Sept. 25, March 27,
1999 1999
-------------- --------------
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 41,521 $ 144,457
Restricted cash 58,733 86,277
Short-term investments -- 74,616
Marketable equity securities (Note 2) 81,940 --
Accounts receivable, net 78,296 66,063
Inventories, net 47,613 40,262
Other current assets 37,051 19,039
--------- ---------
--------- ---------
Total current assets 345,154 430,714
Property and equipment, net 39,126 48,024
Investment in joint venture -- 14,000
Deposits and other assets 63,137 39,892
--------- ---------
========= =========
$ 447,417 $ 532,630
========= =========
========= =========
LIABILITIES AND NET CAPITAL DEFICIENCY
Current liabilities:
Accounts payable
and accrued liabilities $ 119,797 $ 201,669
Restructuring accrual 8,043 5,364
Current maturities of long-term debt
and capital lease obligations 18,148 23,076
Income taxes payable 37,454 36,593
--------- ---------
--------- ---------
Total current liabilities 183,442 266,702
Long term obligations and
convertible subordinated notes 315,500 323,648
Commitments and contingencies
Net capital deficiency:
Capital stock 388,290 326,185
Unrealized gain on
marketable equity securities 81,190 --
Accumulated deficit (521,005) (383,905)
--------- ---------
--------- ---------
Total net capital deficiency (51,525) (57,720)
--------- ---------
========= =========
$ 447,417 $ 532,630
========= =========
========= =========
(Note 2) Investment in marketable equity securities relates to
the Company's investment in Phone.com, Inc. (Nasdaq: PHCM - news)
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.>>> |
