Cirrus Logic Announces Fourth Quarter and Fiscal Year 1998 Results
Business Wire - April 22, 1998 16:28
biz.yahoo.com
FREMONT, Calif.--(BUSINESS WIRE)--April 22, 1998--Cirrus Logic Inc. (NASDAQ:CRUS) today announced net revenues for the fiscal year ended March 28, 1998, were $954.3 million, a year-to-year increase of 4 percent from $917.2 for fiscal 1997.
Net income was $36.5 million, or $0.52 per share compared to a net loss of $46.2 million, or $0.71 per share for fiscal 1997.
Net revenues for the fourth quarter of fiscal 1998 were $287.8 million, up 35 percent from $212.9 million for the corresponding quarter a year ago. Net income was $12.1 million, or $0.18 per share, compared with a net loss of $51.9 million, or $0.79 per share, for the year-ago quarter.
The results for the fourth quarter of fiscal 1998 include revenues related to certain licensing agreements totaling $60 million as well as charges of $53 million included in cost of sales which are related to anticipated manufacturing capacity variances due largely to reduced production in graphics chips. Without these events, and their related tax effects, net revenues would have been $227.8 million, net income would have been $9.2 million and diluted earnings would have been $0.13 per share.
"Fiscal 1998 was a turning-point year for Cirrus Logic," said Michael L. Hackworth, president and chief executive officer of the company. "We successfully returned the company to profitability in the first quarter and experienced sequential growth throughout the year with the exception of the seasonally weak fourth quarter. It also marked the year we focused our product development efforts on storage, communications, and mixed-signal linear integrated circuits.
"Year-over-year improvement in key financial indicators including a $133 million increase in cash, a 17 percent reduction in operating expenses, and increased revenue per employee for the year to $538,000, from $359,000 each provide evidence that we are operating under a markedly improved financial model."
New product development was strong during the year as Cirrus Logic announced more than 25 new products. Significant introductions include the recently announced highly integrated single chip solution for the DVD-ROM drive and DVD-Player markets and expansion of ARM-based system-on-a-chip solutions for the emerging Internet appliance market.
The company also introduced the industry's first multi-standard audio decoder for DTS and Dolby Digital, showcasing its strength in mixed-signal consumer applications.
"These introductions all support our ongoing strategy to pursue growth opportunities within the Mass Storage, Communications and Mixed-Signal markets, which leverage our deep algorithmic expertise and proven strength in high integration silicon solutions," said Hackworth.
"While we continue to make selective investments in mixed-signal intensive PC peripheral functions where we add value, our research and development activities now center around high volume market opportunities beyond the PC motherboard."
Hackworth noted that key products within the Mass Storage Division are currently sampling and on target for introduction later in the year. "The product transition to third generation read-channel products within our Mass Storage division is proceeding as expected and all indications suggest a return to growth for that division by the end of the year," he said.
CIRRUS LOGIC INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
(Unaudited)
CONDENSED STATEMENTS OF OPERATIONS
Amounts in thousands, except per share amounts
Fiscal Year
Quarter Ended Ended
March 28, March 29, March 28, March 29,
1998 1997 1998 1997
Net sales $287,844 $212,917 $954,270 $917,154
Costs and expenses and
gain on sale of assets
and other, net:
Cost of sales 201,380 163,905 605,484 598,795
Research and development 42,989 51,249 179,552 230,786
Selling, general and
administrative 30,128 33,745 117,273 126,722
Restructuring costs and
other, net -- 20,954 14,464 20,954
Gain on sale of assets,
net (4,700) 7 (20,781) (18,915)
Total costs and expenses,
gain on sale of assets
and other, net 269,797 269,860 895,992 958,342
Income (loss) from
operations 18,047 (56,943) 58,278 (41,188)
Interest and other
(expense) income, net 3,179 (2,653) (2,275) (10,431)
Income (loss) before
provision for income
taxes 21,226 (59,596) 56,003 (51,619)
Provision (benefit) for
income taxes 9,077 (7,737) 19,510 (5,463)
Net income (loss) $ 12,149 $ (51,859) $ 36,493 ($ 46,156)
Net income (loss) per
share:
Basic $ 0.18 ($ 0.79) $ 0.54 ($ 0.71)
Diluted $ 0.18 ($ 0.79) $ 0.52 ($ 0.71)
Weighted average common
shares outstanding:
Basic 68,092 65,917 67,333 65,007
Diluted 69,241 65,917 69,548 65,007
CIRRUS LOGIC INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
(Unaudited)
CONDENSED BALANCE SHEETS
Amounts in thousands
March 28, March 29,
1998 1997
Current assets:
Cash and cash equivalents $ 347,421 $ 151,540
Short-term investments 125,378 188,215
Accounts receivable, net 103,073 173,743
Inventories 103,703 127,252
Other current assets 136,618 154,252
Total current assets 816,193 795,002
Property and equipment, net 99,364 130,855
Manufacturing agreements, net and
investment in joint ventures 166,953 151,675
Deposits and other assets 55,032 59,289
Total assets $1,137,542 $1,136,821
Current liabilities:
Accounts payable and
accrued liabilities $ 275,432 $ 304,074
Obligations under equipment loans
and capital leases, current 26,554 30,999
Income taxes payable 38,053 31,259
Total current liabilities 340,039 366,332
Long-term obligations and
convertible subordinated notes 341,160 366,292
Shareholders' equity:
Capital stock 366,914 351,261
Retained earnings 89,429 52,936
Total shareholders' equity 456,343 404,197
Total liabilities
and shareholders' equity $1,137,542 $1,136,821
CONTACT: Cirrus Logic Inc., Fremont
Ronald K. Shelton, 510/623-8300
Bonnie McBride, 510/226-2112
invest@corp.cirrus.com |
