Exhibit 99.1
Cirrus Logic Reports Fiscal Q2 2008 Financial Results
Cirrus Logic Revenue Grows 14 Percent Over the June Quarter, Led
by Revenue From Portable Products and Apex Acquisition
AUSTIN, Texas--(BUSINESS WIRE)--Oct. 24, 2007--Cirrus Logic Inc.
(Nasdaq:CRUS), a leader in high-precision analog and digital signal
processing components, today announced financial results for the
second quarter fiscal year 2008, which ended Sept. 29, 2007.
The company reported second quarter fiscal year 2008 revenue of
$47.0 million, compared with $41.1 million in the previous quarter,
and $48.2 million during the second quarter of fiscal year 2007.
Second quarter gross margin was 57.0 percent compared to 58.5 percent
for the second quarter of fiscal year 2007. Operating expenses for the
quarter were $30.3 million and include a $3.7 million impairment
charge to the company's remaining investment in Magnum Semiconductor,
a $1.8 million charge associated with the in-process R&D related to
the acquisition of Apex Microtechnology, approximately $555,000 in
stock-based compensation expense, $175,000 in legal fees related to
current activities associated with the concluded stock option review,
and approximately $300,000 in the amortization of intangibles related
to acquisitions. The net loss for the second quarter on a GAAP basis
was approximately $300,000.
Total cash and marketable securities at the end of the second
fiscal quarter was $245 million, compared with $278 million at the end
of the prior fiscal quarter. Cirrus generated approximately $9
million, excluding approximately $42 million used for the Apex
acquisition.
"We made great progress in Q2 towards our goal of rebuilding the
foundation of Cirrus Logic and positioned ourselves well to achieve
our long-term growth and profitability goals," said Jason Rhode,
Cirrus Logic president and chief executive officer. "We closed on the
acquisition of Apex Microtechnology, which we expect to strengthen our
future EPS and diversify our industrial business. We saw revenues from
new products more than double versus Q1, driven by products in several
of our target markets and multiple new tier one customers. Also on the
product front, we released several new products to full production
status, and four new first revision products were sent to our foundry
partners.
"We added Tim Turk as the leader of our sales team, and he has
already had a significant impact on his organization's effectiveness.
We were also extremely pleased to announce yesterday that Scott
Anderson has joined us to lead the Mixed Signal Audio Division. Scott
will be a great leader for MSA, and his wealth of experience will be a
great resource for the whole company.
"I am excited about the progress we've made in Q2, and I am
confident that we are taking the right steps to establish Cirrus as
the first-choice supplier of analog and digital signal processing
components."
Outlook for Third Quarter FY 2008 (ending December 29, 2007):
-- Revenue is expected to range between $47 million and $51
million;
-- Gross margin is expected to be between 56 percent and 59
percent; and
-- Combined GAAP operating expenses are expected to range between
$26 million and $28 million, including approximately $1.8
million in share-based compensation and amortization of
acquisition-related intangibles expenses.
Conference Call
Cirrus Logic management will hold a conference call to discuss the
company's results for the second quarter of fiscal year 2008, on Oct.
24, 2007, at 5:00 p.m. EDT. Those wishing to join should call
303-262-2193 (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 Oct. 31, 2007. To access
the recording, call 303-590-3000 (passcode: 11098789#). 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 and signal-processing patent
portfolio, Cirrus Logic delivers highly optimized products for
consumer and commercial audio, automotive entertainment, and
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 third 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 third 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
ongoing litigation and administrative proceedings; and the risk
factors listed in our Form 10-K for the year ended March 31, 2007, as
updated on July 30, 2007 in our Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 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 STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Quarter Ended
----------------------------
Sept. 29, June 30, Sept. 23,
2007 2007 2006
--------- -------- ---------
Net revenue $47,034 $41,124 $48,179
Cost of sales 20,213 16,759 20,014
--------- -------- ---------
Gross Margin 26,821 24,365 28,165
--------- -------- ---------
Gross Margin Percentage 57.0% 59.2% 58.5%
Operating expenses:
Research and development 12,051 10,913 10,103
Selling, general and administrative 12,819 12,981 12,389
Restructuring and other costs - - (428)
Impairment of non-marketable securities 3,657 - -
Acquired in process R&D 1,761 - -
--------- -------- ---------
Total operating expenses 30,288 23,894 22,064
--------- -------- ---------
Income (loss) from operations (3,467) 471 6,101
Interest income, net 3,180 3,507 3,154
Other income (expense), net (30) 26 (25)
--------- -------- ---------
Income (loss) before income taxes (317) 4,004 9,230
Provision (benefit) for income taxes 15 15 (97)
--------- -------- ---------
Net income (loss) $ (332) $ 3,989 $ 9,327
========= ======== =========
Basic income per share: $ - $ 0.05 $ 0.11
Diluted income per share: $ - $ 0.04 $ 0.11
Basic weighted average common shares
outstanding 88,998 88,490 87,553
Diluted weighted average common shares
outstanding 88,998 89,669 88,499
Prepared in accordance with Generally Accepted Accounting Principles
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
unaudited; in thousands
Sept. 29, June 30, Sept. 23,
2007 2007 2006
---------- ---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 53,211 $ 97,566 $ 96,140
Restricted investments 5,755 5,755 5,755
Marketable securities 174,490 174,242 158,817
Accounts receivable, net 23,814 19,428 21,924
Inventories 19,450 17,512 21,427
Other current assets 14,490 14,138 5,949
---------- ---------- ----------
Total Current Assets 291,210 328,641 310,012
Long-term marketable securities 11,490 - 992
Property and equipment, net 20,720 10,508 12,845
Intangibles, net 31,718 11,246 2,894
Goodwill 12,655 6,461 -
Investment in Magnum Semiconductor - 3,657 7,947
Other assets 2,190 1,900 3,347
---------- ---------- ----------
Total Assets $ 369,983 $ 362,413 $ 338,037
========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 14,551 $ 11,643 $ 10,824
Accrued salaries and benefits 7,873 6,565 7,038
Other accrued liabilities 10,537 9,890 9,565
Deferred income on shipments to
distributors 6,946 5,362 6,427
Income taxes payable 8 6 2,079
---------- ---------- ----------
Total Current Liabilities 39,915 33,466 35,933
Long-term restructuring accrual 2,674 2,995 3,621
Other long-term obligations 10,126 9,664 9,155
Stockholders' equity:
Capital stock 933,824 932,689 922,086
Accumulated deficit (615,948) (615,616) (631,923)
Accumulated other comprehensive loss (608) (785) (835)
---------- ---------- ----------
Total Stockholders' Equity 317,268 316,288 289,328
---------- ---------- ----------
Total Liabilities and
Stockholders' Equity $ 369,983 $ 362,413 $ 338,037
========== ========== ==========
Prepared in accordance with Generally Accepted Accounting Principles
CONTACT: Cirrus Logic, Inc., Austin
Investor Contact:
Thurman K. Case, 512-851-4125
Chief Financial Officer
InvestorRelations@cirrus.com