EXHIBIT 99.1
Cirrus Logic Reports Fiscal Q1 2008 Financial Results
Cirrus Logic Forecasts Sequential Growth for the September Quarter
AUSTIN, Texas--(BUSINESS WIRE)--July 25, 2007--Cirrus Logic Inc.
(Nasdaq:CRUS), a leader in high-precision analog and digital signal
processing components, today announced financial results for the first
quarter fiscal year 2008, which ended June 30, 2007.
The company reported first quarter fiscal year 2008 revenue of
$41.1 million, compared with $45.2 million during the first quarter of
fiscal year 2007. First quarter gross margin was 59.2 percent compared
to 60.1 percent for the first quarter of fiscal year 2007. Combined
research and development (R&D) and selling, general and administrative
(SG&A) expenses for the quarter were $23.9 million. R&D and SG&A
expenses included $1.5 million in stock-based compensation expense, as
well as $0.5 million in expenses associated with the company's
recently concluded stock-option review.
Total cash and marketable securities at the end of the first
fiscal quarter was $277.6 million, compared with $271.7 million at the
end of the prior fiscal quarter, an increase of $5.9 million.
"While June quarter revenue reflects weak demand for older
products, I am pleased to see a stronger mix of new customers and new
products reflected in our backlog for the September quarter,
particularly in portable audio and automotive products," said Jason
Rhode, Cirrus Logic president and chief executive officer.
Outlook for Second Quarter FY 2008 (ending September 29, 2007),
including the recently completed Apex Microtechnology acquisition:
-- Revenue is expected to range between $46 million and $51
million;
-- Gross margin is expected to be between 58 percent and 60
percent; and
-- Combined GAAP R&D and SG&A expenses are expected to range
between $25 million and $27 million, including share-based
compensation expense of approximately $1.6 million.
Conference Call
Cirrus Logic management will hold a conference call to discuss the
company's results for the first quarter of fiscal year 2008, on July
25, 2007, at 5:00 p.m. EDT. Those wishing to join should call
303-262-2190 (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 Aug. 1, 2007. To access
the recording, call 303-590-3000 (passcode: 11093466#). 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, industrial and aerospace
applications. The company operates from headquarters in Austin, Texas,
with offices in Tucson, Ariz., 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 second quarter fiscal year 2008 revenue,
gross margin, combined research and development and selling, general
and administrative expense levels, and share-based compensation
expense. 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: our ability to successfully integrate our recent
acquisitions into our business; 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 second
quarter of fiscal year 2008, 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; expenses
associated with the Company's stock option investigation, and related
on-going litigation and administrative proceedings; and the risk
factors listed in our Form 10-K for the year ended March 31, 2007, 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.
Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc.
Summary financial data follows:
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands)
Jun. 30, Mar. 31, Jun. 24,
2007 2007 2006
----------- ---------- -----------
ASSETS (unaudited) (unaudited)
Current assets
Cash and cash equivalents $ 97,566 $ 87,960 $ 103,053
Restricted investments 5,755 5,755 5,755
Marketable securities 174,242 178,000 137,123
Accounts receivable, net 19,428 19,127 21,518
Inventories 17,512 16,496 21,391
Other current assets 14,138 13,699 5,634
----------- ---------- -----------
Total Current Assets 328,641 321,037 294,474
Long-term marketable securities - - 5,972
Property and equipment, net 10,508 11,407 13,263
Intangibles, net 11,246 8,550 2,593
Goodwill 6,461 6,461 -
Investment in Magnum Semiconductor 3,657 3,657 7,947
Other assets 1,900 1,948 3,293
----------- ---------- -----------
Total Assets $ 362,413 $ 353,060 $ 327,542
=========== ========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 11,643 $ 10,434 $ 11,943
Accrued salaries and benefits 6,565 7,816 6,813
Other accrued liabilities 9,890 10,519 9,704
Deferred income on shipments to
distributors 5,362 4,290 6,199
Income taxes payable 6 1,561 1,990
----------- ---------- -----------
Total Current Liabilities 33,466 34,620 36,649
Long-term restructuring accrual 2,995 3,418 4,469
Other long-term obligations 9,664 10,085 9,536
Stockholders' equity:
Capital stock 932,689 926,900 919,339
Accumulated deficit (615,616) (621,180) (641,250)
Accumulated other comprehensive
loss (785) (783) (1,201)
----------- ---------- -----------
Total Stockholders' Equity 316,288 304,937 276,888
----------- ---------- -----------
Total Liabilities and
Stockholders' Equity $ 362,413 $ 353,060 $ 327,542
=========== ========== ===========
Prepared in accordance with Generally Accepted Accounting Principles
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Quarter Ended
------------------------------
Jun. 30, Mar. 31, Jun. 24,
2007 2007 2006
--------- --------- ----------
Net revenue $ 41,124 $ 43,647 $ 45,181
Cost of sales 16,759 17,369 18,021
--------- --------- ----------
Gross Margin 24,365 26,278 27,160
--------- --------- ----------
Gross Margin Percentage 59.2% 60.2% 60.1%
Operating expenses:
Research and development 10,913 10,998 11,670
Selling, general and administrative 12,981 14,797 11,091
Restructuring and other costs - 521 -
Impairment of goodwill and other
intangibles - 4,290 -
Acquired in process R&D - - -
License agreement - - -
--------- --------- ----------
Total operating expenses 23,894 30,606 22,761
--------- --------- ----------
Income (loss) from operations 471 (4,328) 4,399
Realized gain on marketable equity
securities - - 193
Interest income, net 3,507 3,412 2,965
Other income (expense), net 26 71 55
--------- --------- ----------
Income (loss) before income taxes 4,004 (845) 7,612
Provision (benefit) for income taxes 15 (8,124) (213)
--------- --------- ----------
Net income $ 3,989 $ 7,279 $ 7,825
========= ========= ==========
Basic income per share: $ 0.05 $ 0.08 $ 0.09
Diluted income per share: $ 0.04 $ 0.08 $ 0.09
Basic weighted average common shares
outstanding 88,490 88,076 87,196
Diluted weighted average common
shares outstanding 89,669 89,333 88,759
Prepared in accordance with Generally Accepted Accounting Principles
CONTACT: Cirrus Logic, Inc., Austin
Thurman K. Case, 512-851-4125
Chief Financial Officer
InvestorRelations@cirrus.com