Exhibit 99.1
Cirrus Logic Reports Limited Q2 FY '07 Results
AUSTIN, Texas--(BUSINESS WIRE)--Oct. 25, 2006--Cirrus Logic Inc.
(Nasdaq:CRUS) today announced preliminary second quarter fiscal year
2007 financial results.
The company reported second quarter fiscal year 2007 revenue of
$48.2 million, up from $45.2 million in the previous quarter. Revenue
during the second quarter of fiscal year 2006 was $50.5 million,
including revenue of $48.3 million from analog, mixed-signal and
embedded products. Prior to the impact of any stock option related
expenses, the gross margin percentage, as well as R&D and SG&A
expenses during the quarter, were slightly below the midpoint of
guidance.
Total cash and marketable securities at the end of the second
fiscal quarter were $261.7 million, compared with $251.9 million at
the end of the prior quarter.
"I am pleased with our revenue performance in a challenging market
environment as well as solid cash generation from operations," said
David D. French, president and chief executive officer, Cirrus Logic.
"Our diversified product portfolio provides revenue stability and
serves as the underlying strength of the company. We continue to make
progress toward our operating business model, and I remain optimistic
about our prospects for long-term growth."
Outlook for Third Quarter FY 2007 (ending Dec. 30, 2006):
-- Revenue is expected to range between $43 million and
$46 million;
-- Prior to the impact of any stock option related
expenses, gross margin is expected to be at the upper
end of our guidance for the second fiscal quarter;
-- R&D and SG&A expenses prior to the impact of any stock
option related expenses are expected to remain
relatively flat compared to the second fiscal quarter;
-- Cash generation from operations, including interest
income, is expected to range between $8 and $10
million.
As previously announced, the Board of Directors of Cirrus Logic
has formed a special committee to voluntarily review the company's
historical stock option granting practices and related accounting
matters. Given the pending nature of the on-going review, the company
has limited the scope of its second quarter financial information
released today to the selected preliminary financial information
provided in this release. All preliminary results are subject to
adjustment. The company does not expect to be in a position to
announce final financial results for the second quarter until the
special committee has completed its review. Please refer to the
company's Form 8-K filed with the SEC on Oct. 23, 2006 for further
information about the review.
Conference Call
Cirrus Logic management will hold a conference call to discuss
certain limited results for the second quarter of fiscal year 2007 on
Oct. 25, 2006, at 5:00 p.m. EDT. Those wishing to join should call
303-262-2142 (passcode: Cirrus Logic) at approximately 4:50 p.m. EDT.
A replay of the conference call will also be available beginning one
hour after the completion of the call, until Nov. 1, 2006. To access
the recording, call 303-590-3000 (passcode: 11072869 #). A live and an
archived webcast of the conference call will also be available via the
company's Web site at www.cirrus.com.
Cirrus Logic, Inc.
Cirrus Logic develops high-precision, analog and mixed-signal
integrated circuits for a broad range of consumer and industrial
markets. Building on its diverse analog mixed-signal patent portfolio,
Cirrus Logic delivers highly optimized products for consumer and
commercial audio, automotive entertainment and industrial
applications. The company operates from headquarters in Austin, Texas,
with offices in 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 contain forward-looking statements,
including our estimates of third quarter fiscal year 2007 sales, gross
margin, R&D and SG&A expenses, and cash generation from operations. In
some cases, forward-looking statements are identified by words such as
we "expect," "anticipate," "target," "project," "believe," "goals,"
"estimates," and "intend," variations of these types of words and
similar expressions are intended to identify these forward-looking
statements. In addition, any statements that refer to our plans,
expectations, strategies or other characterizations of future events
or circumstances 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. These risks and
uncertainties include, but are not limited to, the following: overall
conditions in the semiconductor 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 level of orders and shipments during the
third quarter of fiscal year 2007, as well as customer cancellations
of orders, or the failure to place orders consistent with forecasts;
overall economic pressures; pricing pressures; hardware or software
deficiencies; our dependence on subcontractors for assembly,
manufacturing, packaging and testing functions; our ability to make
continued sufficient investments in research and development; foreign
currency fluctuations; the retention of key employees; and the risk
factors listed in our Form 10-K for the year ended March 25, 2006, and
in our other filings with the Securities and Exchange Commission,
which are available at www.sec.gov. 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.
In addition, there are a number of risks associated with matters
relating to the Company's review of its historical stock option
practices. These risks and uncertainties include, but are not limited
to, the timing and outcome of the Special Committee's review, the
conclusions of the Special Committee resulting from that review, and
any adverse tax or accounting adjustments resulting from the review.
Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc.
Summary financial data follows:
CIRRUS LOGIC, INC.
SELECTED FINANCIAL INFORMATION
(unaudited; in thousands)
Quarter Ended
-------------------------------------
Sep. 23, Jun. 24, Sep. 24,
2006 2006 2005
----------- ----------- -----------
Industrial products $12,470 $10,940 $8,076
Embedded products 11,935 12,635 13,913
Mixed-signal audio products 23,774 21,606 26,320
Video products - - 2,152
----------- ----------- -----------
Net revenue $48,179 $45,181 $50,461
----------- ----------- -----------
Cash and cash equivalents $96,140 $103,053 $112,347
Restricted investments 5,755 5,755 5,755
Marketable securities 158,817 137,123 92,163
Long-term marketable
securities 992 5,972 14,869
----------- ----------- -----------
Total cash, cash
equivalents, and
marketable securities $261,704 $251,903 $225,134
----------- ----------- -----------
Accounts receivable, net $21,924 $21,518 $21,579
Inventories $21,427 $21,391 $17,014
CONTACT: Cirrus Logic Inc., Austin
Investor Contact:
Thurman K. Case, 512-851-4000
Acting Chief Financial Officer
InvestorRelations@cirrus.com