Cirrus Logic Reports Fiscal Q1 2005 Financial Results; Revenue Up 18 Percent Sequentially and 45 Percent Year Over Year
AUSTIN, Texas--(BUSINESS WIRE)--07/21/2004--Cirrus Logic Inc. (Nasdaq:CRUS) today announced financial results for the first quarter of fiscal year 2005, ended June 26, 2004.
The company reported first quarter fiscal year 2005 revenue of $59.1 million, up from $50.2 million in the prior quarter and $40.7 million reported in the first quarter of fiscal year 2004. First quarter gross margin was 53.6 percent, an improvement from 52.4 percent in the prior quarter, and 48.5 percent in the first quarter one year ago. First quarter fiscal year 2005 combined research and development and selling, general and administrative expenses were $31.2 million, compared with $31.5 million in the prior quarter, and $33.2 million in the first fiscal quarter of 2004.
Net loss in the first quarter fiscal year 2005 was $3.4 million, or a loss of $0.04 per share. The first quarter results included $5.7 million of expense for acquisition- and restructuring-related items, primarily amortization of acquired intangibles. First quarter results also included a $669,000 realized gain on the sale of marketable securities. In comparison, the company reported a net income of $10.3 million, or $0.12 per diluted share, in the prior quarter. The fourth quarter results included a benefit to net income from a net expense reduction of $17.0 million related to a transaction with Broadcom Corporation for certain U.S. and foreign patents associated with a business that Cirrus Logic exited several years ago, as well as a $2.0 million realized gain on the sale of marketable securities. The company's fourth quarter results also included $4.5 million of expense for acquisition- and restructuring-related items, primarily amortization of acquired intangibles. The company reported a net loss of $24.3 million, or a loss of $0.29 per share, in the first quarter of fiscal year 2004. The first quarter of fiscal year 2004 results included $12.9 million of expense for acquisition- and restructuring-related items.
Total cash, marketable securities and other investments at the end of the first quarter of fiscal year 2005 was approximately $198 million, compared with $200 million at the end of the prior quarter and $116 million at the end of the first quarter of fiscal year 2004.
"We are encouraged by the growing demand for our analog semiconductors, which are used in a wide array of consumer entertainment and targeted industrial applications," said David D. French, president and CEO of Cirrus Logic Inc. "Sales of these semiconductors totaled $50.7 million in the June quarter, up 12 percent from the March quarter. Our video encoding and decoding ICs, which are used in DVD recorders, DVD receivers, DVD players and USB peripherals, also experienced increased demand as our expanding video customer base began to ramp production of new models. Sales of our video ICs in the June quarter totaled $8.4 million, a 65 percent increase over the prior quarter."
Outlook and Guidance
"Going into the seasonally stronger second half of calendar 2004, we increased our wafer starts and inventories during the June quarter. We expect to see higher sales in the September quarter across all of our major product lines. With 45 percent year-over-year revenue growth in the June quarter, we are off to a good start for the fiscal year and we remain confident that our strong and expanding product portfolio with its core analog and mixed-signal offerings will enable us to achieve strong year-over-year revenue growth," said French.
Second Quarter FY 05 (ending Sept. 25, 2004)
-- Revenue is expected to be between $61 million and $68 million,
with the following revenue contribution by product category:
-- Analog, which is primarily composed of audio converters
and analog ICs used in industrial applications, is
expected to be between $51 million to $53 million, up from
$50.7 million in the June quarter and $45.1 million in the
March quarter; and
-- Video, with its high degree of variability due in part to
uncertainty about North American consumer confidence and
spending, could range between $10 million to $15 million,
which compares with $8.4 million in the June quarter and
$5.1 million in the March quarter.
-- Gross margin is expected to be in the range of 52 percent to
54 percent.
-- Combined R&D and SG&A expenses are expected to total $30
million to $32 million.
Conference Call
Cirrus Logic management will hold a conference call to discuss these results today, July 21, at 4 p.m. Central Time. Those wishing to join should dial 201-689-8044 at approximately 3:50 p.m. Central Time. A replay of the call will be available starting one hour after the completion of the call until Aug. 4, 2004. To access the replay, dial 201-612-7415 (account no.: 2445; conference no.: 110273). A live and an archived webcast of the conference call will also be available via the company's Web site at www.cirrus.com.
Upcoming Investor Conferences
Cirrus Logic management will be presenting at two upcoming conferences in Boston, Mass.: the 24th Annual Adams Harkness Summer Seminar on Aug. 5 and the 32nd Annual SG Cowen Fall Technology Conference on Sept. 10. Those wishing to listen to management's presentation can hear a live and/or an archived webcast of these events at www.cirrus.com.
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 second quarter fiscal year 2005 revenues, combined research and development and selling, general and administrative expense levels, gross margin, and expectations regarding our revenue growth and operating profit opportunities, are forward-looking statements. 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 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 results of any potential and pending litigation matters; the level of orders and shipments during the second quarter of fiscal year 2005, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; pricing pressures; hardware or software deficiencies; our dependence on subcontractors for assembly, manufacturing, packaging and testing functions; 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; and the risk factors listed in our Form 10-K for the year ended March 27, 2004, 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.
CONTACT:Cirrus Logic Inc., Austin David H. Allen, 512-851-4122 david.allen@cirrus.com
SOURCE: Cirrus Logic Inc. |
