Exhibit 99.1
Cirrus Logic Reports Fiscal Q1 2004 Financial Results;
Company Sees Improved Orders and Higher Revenue in Q2
AUSTIN, Texas--(BUSINESS WIRE)--July 23, 2003--Cirrus Logic Inc.
(Nasdaq:CRUS) today announced financial results in line with its April
30, 2003, guidance for the first quarter of fiscal 2004, ended June
28, 2003.
The company reported first quarter revenue of $40.7 million, down
22 percent from $52.1 million reported in the fourth quarter. First
quarter gross margin was 48.5 percent, down from 50.6 percent in the
fourth quarter. First quarter combined research and development and
selling, general and administrative expenses were $33.2 million, down
$1.6 million from $34.8 million in the prior quarter.
In the first quarter, the company incurred a charge of $7.6
million for restructuring and other related costs primarily relating
to facility consolidations in Texas and California. Including this
charge, the first quarter net loss was $24.3 million, compared with a
net loss of $152.8 million in the fourth quarter; net loss per share
was $0.29, compared with a net loss per share of $1.82 in the prior
quarter.
Total cash at the end of the first quarter was $115.5 million, in
line with the company's guidance. Total cash at the end of the fourth
quarter was $122.8 million.
"Overall business conditions are improving, and we have greater
visibility than we had at this time last quarter," said David D.
French, president and CEO of Cirrus Logic Inc. "Demand for our audio
products is increasing as distributors and retailers begin to
replenish and seasonally build their inventory levels, and as our OEM
customers introduce new audio models. We are also seeing increased
demand for our video products and are actively engaged with a number
of customers in the DVD and hard disk drive-based digital video
recording markets with our high-performance CS98200 decoder family and
CS92288 encoder product. Video recording customer design wins include
Apex, BBK, Digitech, Mustek, Sampo, Samsung, Sony and others. These
video recording products are expected to be in production or on retail
shelves by this holiday season."
The company also recently announced that it entered into a
strategic relationship with ChipPAC to outsource Cirrus' test
operations. This new relationship is expected to provide Cirrus with
annual savings of $6 million to $8 million beginning in calendar year
2004.
Outlook and Guidance
"While we are encouraged by the increased level of orders we are
seeing so far, and by our prospects for revenue growth, we remain
cautious regarding the condition of the overall economy and consumer
spending in particular for the remainder of the year," said French.
Second Quarter FY04 (ending Sept. 27, 2003)
-- Revenue is expected to be $45 million to $50 million.
-- Gross margins are expected to be 48 percent to 50 percent.
-- Combined R&D and SG&A expenses are expected to total $33
million to $35 million.
-- During the second quarter, the company expects to benefit from
a $7.2 million reduction in Income Taxes Payable due to the
release of a reserve. This release will not have a cash
impact.
-- Total cash at the end of the second quarter is expected to be
approximately $106 million to $111 million.
Conference Call
Cirrus Logic management will hold a conference call to discuss
these results today, July 23, at 4 p.m. Central Time. Those wishing to
join should dial 617-801-9702 (pass code: Cirrus Logic) 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
July 30, 2003. To access the replay, dial 617-801-6888 (pass code:
80339901). A live 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 the Adams Harkness &
Hill Summer Seminar in Boston on Aug. 6 at 11:30 a.m. Eastern Time,
the Soundview Technology Group Investment Conference in San Francisco
at 11:00 a.m. on Aug. 14 Pacific Time, and the SG Cowen Fall
Technology Conference in Boston on Sept. 3 at 3:00 p.m. Eastern Time.
Those wishing to listen to management's presentation can hear a live
and/or an archived webcast via the company's Web site at
www.cirrus.com.
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.
Except for historical information contained herein, the matters
set forth in this news release, including our estimates of second
fiscal quarter revenues, research and development and selling, general
and administrative expense levels, gross margin and cash levels, and
expectations regarding our revenue growth opportunities, including the
introduction of new products by other companies containing our
components during the second half of fiscal 2004, are forward-looking
statements that are subject to certain risks and uncertainties
including such factors, among others, as overall conditions in the
semiconductor market; the expansion of the consumer digital
entertainment electronics market; our ability to successfully realize
the benefits of our acquisitions; 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
second fiscal quarter of 2004, as well as customer cancellations of
orders, or the failure to place orders consistent with forecasts;
pricing pressures; hardware or software deficiencies; a shortage of
manufacturing capacity; our ability to make continued substantial
investments in research and development; 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,
except as required by law.
Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc. All
other product names noted herein may be trademarks of their respective
holders.
Summary financial data follows:
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Quarter Ended
------------------------------
June 28, March 29, June 29,
2003 2003 2002
--------- ---------- ---------
Net sales $40,724 $52,145 $76,024
Costs and expenses:
Cost of sales 20,989 25,778 37,391
Research and development 20,646 19,467 27,963
Selling, general and administrative 12,517 15,342 20,471
Restructuring and other costs 7,640 1,238 2,085
Amortization of acquired intangibles 3,778 4,034 4,686
Impairment of goodwill and other
intangibles -- 136,160 --
Lease termination costs -- 4,568 --
--------- ---------- ---------
Total costs and expenses 65,570 206,587 92,596
--------- ---------- ---------
Loss from operations (24,846) (154,442) (16,572)
Realized gain (loss) on marketable
equity securities -- (238) 1,400
Interest income and (expense), net 623 644 740
Other income (expense), net (73) 1,793 74
--------- ---------- ---------
Loss before income taxes and loss from
discontinued operations (24,296) (152,243) (14,358)
Provision for income taxes 21 559 29
--------- ---------- ---------
Loss from continuing operations (24,317) (152,802) (14,387)
Loss from discontinued operations -- -- (1,452)
--------- ---------- ---------
Net loss $(24,317) $(152,802) $(15,839)
========= ========== =========
Basic and diluted loss per share:
From continuing operations $(0.29) $(1.82) $(0.17)
Discontinued operations -- -- (0.02)
--------- ---------- ---------
$(0.29) $(1.82) $(0.19)
========= ========== =========
Basic and diluted weighted average
common shares outstanding 83,763 83,754 83,018
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands)
June 28, March 29, June 29,
2003 2003 2002
----------- --------- -----------
ASSETS (unaudited) (unaudited)
Current assets
Cash and cash equivalents $103,667 $110,964 $131,897
Restricted cash 11,844 11,844 12,807
Marketable equity securities 754 543 2,174
Accounts receivable, net 23,627 22,712 28,889
Inventories 21,185 22,339 36,591
Other current assets 10,617 8,293 17,840
----------- --------- -----------
Total Current Assets 171,694 176,695 230,198
Property and equipment, net 26,987 35,321 33,816
Goodwill and intangibles, net 34,082 38,797 190,248
Other assets 5,895 6,453 5,198
----------- --------- -----------
Total Assets $238,658 $257,266 $459,460
=========== ========= ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable and accrued
liabilities $43,900 $43,089 $66,175
Current maturities of long-term
debt and capital lease
obligations -- -- 248
Income taxes payable 37,531 37,820 42,175
----------- --------- -----------
Total Current Liabilities 81,431 80,909 108,598
Long-term obligations 17,077 12,830 5,697
Minority interest in eMicro -- -- 599
Stockholders' equity:
Capital stock 868,827 867,976 865,380
Accumulated deficit (728,229) (703,912) (520,538)
Accumulated other comprehensive
income (loss) (448) (537) (276)
----------- --------- -----------
Total Stockholders' Equity 140,150 163,527 344,566
----------- --------- -----------
Total Liabilities and
Stockholders' Equity $238,658 $257,266 $459,460
=========== ========= ===========
CONTACT: Cirrus Logic Inc., Austin
David Allen, 512-851-4000
InvestorRelations@cirrus.com