CIRRUS LOGIC ANNOUNCES YEAR END RESULTS, RESTRUCTURES PRODUCT OPERATIONS AND FORMS OFFICE OF THE PRESIDENT.FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif.--(BUSINESS WIRE)--April 23, 1997--Simultaneously with releasing its fiscal 1997 year end results today, Cirrus Logic (company) Cirrus Logic - A manufacturer of integrated circuits including the Advanced RISC Machine and display interface processors and cards for use as Windows accelerators (requiring dedicated driver software). http://cirrus.com/. Inc. (Nasdaq: CRUS crus (krus) pl. cru´ra [L.] 1. leg (1). 2. a leglike part. crus ce´rebri ) announced that it has established an Office of the President and integrated its product operations into four divisions to focus on key markets. The divisions are Personal Computer Products, Communications Products, Mass Storage Products, and Crystal Semiconductor Products. ''Fiscal 1997 was a year of focus and transition as we divested ourselves of non-core businesses and made major architectural transitions in key product platforms,'' said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. L. Hackworth There are a number of people called Hackworth:
 This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. to ''reinvent'' Cirrus Logic. Our intent is to build greater synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. among complementary product lines and technologies, improve our focus and reduce costs. With our new market segment oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. structure, we expect to leverage the technology portfolio we've we've Contraction of we have. we've have developed for the PC sector into emerging growth opportunities.'' Fiscal 1997 and Fourth Quarter Results Net revenues for the fiscal year ended March 29, 1997, were $917.2 million, a decrease of 20 percent from $1,146.9 million for fiscal 1996. The company posted a net loss of $46.2 million for fiscal 1997, compared to net loss of $36.2 million for fiscal 1996. This equates to a loss of $0.71 per share for the year, compared with a loss of $0.58 per share for the prior year. Net revenues for the fourth quarter of fiscal 1997 were $212.9 million, down from $233.1 million from the corresponding quarter a year ago. Net loss for the quarter was $51.9 million, or loss of $0.79 per share, compared to net loss of $88.4 million, or loss of $1.38 per share, for the year-ago quarter. In connection with the reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. into four market focused divisions, along with the decision to outsource its production testing and consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. certain corporate functions, the company has commenced a workforce reduction of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 400 employees, representing about 15 percent of the worldwide staff. The results of operations for the fiscal year and the March ended quarter include a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $21.0 million, the majority of which is attributed to the workforce reduction and the write-offs of excess assets and facilities. In addition, the results of operations also include charges totaling approximately $34.5 million, which are included in cost of sales. The majority of these charges are related to anticipated manufacturing capacity variances and some inventory write-downs. Excluding these charges, the company would have reported a loss from operations for the March ended quarter of approximately $1.5 million. Office of the President Hackworth announced that the new Office of the President will be held by Tom Kelly People named Tom Kelly include:
adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. operations of the company. ''I expect the complementary management skills of Alexy and Kelly Kel·ly , Ellsworth Born 1923. American abstract painter and sculptor whose works are characterized by flat color areas with sharply defined edges. Kelly, Emmett 1898-1979. , combined with other new management appointments, to result in greater efficiencies and focus across engineering, product development, customer interface and marketing,'' said Hackworth. With this reorganization, Hackworth expects to shift his focus from managing operations to driving the strategic growth initiatives of the company. From the new Office of the President, Kelly, Chief Operating Office, will manage overall operational performance of the four product divisions while Alexy, Chief Products and Marketing Officer, will oversee product strategy, key product development programs and marketing. Reporting to Hackworth, the Office of the President is chartered to manage Cirrus Logic's four product divisions and worldwide sales. Hackworth continues as president/CEO, responsible for longer term strategic growth programs, worldwide manufacturing and major customer relationships. Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria Bokkos, Daffo West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Shelton Shelton, city (1990 pop. 35,418), Fairfield co., SW Conn., on the Housatonic River opposite Derby; settled 1697, set off from Stratford 1789, inc. as a city 1915. Metal products, furniture, and electronic equipment are among the city's manufactures. , vice president of finance, becomes the CFO, reporting to Hackworth, and assumes expanded responsibilities for financial management. Four Market-Focused Divisions The four divisions are the new PC Products Division, which includes all of the graphics/video products of the former Graphics Company, the PC audio products from Crystal Semiconductor and the PC modem modem [modulator/demodulator], an external device or internal electronic circuitry used to transmit and receive digital data over a communications line normally used for analog signals. chipsets from the former Personal Systems Division; the new Communications Products Division, which incorporates the wide area and local area networking products from Crystal Semiconductor and adds enterprise networking The networking infrastructure in a large enterprise with multiple computer systems and networks of different types is extraordinarily complex. Due to the myriad of interfaces that are required, much of what goes on has little to do with the real data processing of the payroll and orders. and Internet access See how to access the Internet. chip solutions from the former Personal Systems Division; the Mass Storage Products Division and the Crystal Semiconductor Products Division (formerly the Industrial Products Division of Crystal Semiconductor Inc.). By integrating its PC-related products into a single division, Cirrus Logic expects to build greater product development synergy internally, and provide key customers with a single-point contact for all PC chip solutions. The company also expects its new Communications Division to bring a sharper focus to extending the company's technology expertise beyond the PC. ''Throughout fiscal 1997, we've divested a number of non-core businesses and development programs. These divestitures, combined with the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and our decision to outsource production testing, should enable us to reduce expenses, shorten (audio, compression) Shorten - A form of lossless audio compression. cycle time and improve our competitive posture posture /pos·ture/ (pos´choor) the attitude of the body.pos´tural pos·ture n. 1. A position of the body or of body parts. 2. ,'' noted Hackworth. Business Information According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Cirrus Logic, the recovery rate during the March quarter was slowed by a number of factors - including a drop in demand for its 2D Graphics products, a slower than expected takeoff of its Laguna Laguna (ləg  `nə), pueblo, Valencia co., central N.Mex.; established on its present site 1699. 3D/AGP (Accelerated Graphics Port See AGP. (hardware, graphics) Accelerated Graphics Port - (AGP) A bus specification by Intel which gives low-cost 3D graphics cards faster access to main memory on personal computers than the usual PCI bus. ) chip solution due to industry delays in ramping AGP-based systems, and a shortage of read heads in the disk drive industry. Overall revenues for the March quarter decreased by 16 percent from the preceding quarter. New orders were up from the prior quarter, with a book-to-bill greater than 1.0. Excluding non-core businesses and divestitures, revenues decreased 9 percent on a sequential One after the other in some consecutive order such as by name or number. basis. Revenue breakdown by geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. area follows: -0-
Fiscal 1997
Q3 Q4
Americas 41% 39%
Pacific Rim 34% 34%
Japan 17% 20%
Europe 8% 7%
Mass Storage: During the March quarter, Mass Storage products
provided 30 percent of revenues. Mass Storage revenues increased 32
percent from the prior quarter. The company announced that its
second-generation digital read-channel chip (CL-SH3302) was designed
into Seagate's Medalist line of desktop PC drives offering capacities
up to 4.3 Gbytes. Earlier in the quarter, the company expanded its
line of controllers for the optical storage market with the
introduction of the industry's first 24X ATAPI CD-ROM Decoder
(CL-CR3420).
Crystal Semiconductor: Cirrus Logic's Crystal Semiconductor
subsidiary contributed 28 percent of revenues. Crystal
Semiconductor's revenues decreased 14 percent from the prior quarter.
The company announced that its wavetable synthesizer (CS9236), the
industry's smallest, most highly integrated single chip solution for
mainstream PCs, moved into volume production. Moreover, the CS4237
audio chipset was selected by IBM for its new Aptiva C/S series
computers, while the SoundFusion(TM) CS4610 - the industry's first
PCI audio solution to integrate 3D positioning, Dolby AC-3 and
wavetable synthesis on a single chip - was introduced and began
sampling.
Graphics: Cirrus Logic's graphics products delivered 22 percent
of revenues. Compared to the prior quarter, this was a decrease of
35 percent. The Laguna3D(TM) accelerator (CL-D5464) began shipping
in volume, with Creative Labs being the first to ship this highly
integrated chip solution with its line of GraphicsBlaster 3D add-in
cards. During the quarter, Cirrus Logic also became the first to
sample a 3D-AGP chip solution, as well as the first to demonstrate
AGP graphics acceleration on ''Memphis,'' Microsoft's next-generation
Windows Operating System.
Communications: Communications products provided 20 percent of
revenues. This was a decrease of 33 percent from the prior quarter.
During the quarter, the company launched its 56 kilobits per second
(Kbps) modem technology using the x2 protocol from U.S. Robotics.
The company also announced that it had moved its FastPath(TM) 56Kbps
chipsets into volume production to meet the demand of several modem
makers.
Proforma revenues under the new operating structure for the March
ended quarter follows: PC Products: $85.6 million (40%); Mass Storage
Products: $64.5 million (30%): Communications Products: $29.0 million
(14%); Crystal Semiconductor Products: $19.8 million (9%). Revenues
from product lines that were divested or non-core businesses were
approximately $14.0 million.
High Value ''Systems in Silicon''
Cirrus Logic is a leading manufacturer of advanced integrated
circuits for personal computing, communications, mass storage,
consumer and industrial markets. The company's ''systems in
silicon'' add high value and software richness to major brands
worldwide. With a focus on innovating microperipheral chip solutions
that make the human interface with electronics more natural and
exciting, Cirrus Logic is committed to technology leadership in the
Interactive Age.
Except for historical information contained herein, the matters
set forth in this news release are forward-looking statements that
are dependent on certain risks and uncertainties including such
factors, among others, as: overall conditions in the PC market;
customer cancellations of orders, or the failure to place orders
consistent with forecasts; unforeseen manufacturing difficulties, or
hardware or software deficiencies, or delays in customer
qualification of key new products; achieving high utilization of the
company's manufacturing resources; final determination of appropriate
inventory write-downs based on the outlook at the end of each
quarter; actual operational spending obtaining financing sufficient
to meet the company's needs; and the risk factors listed in the
company's Form 10-K for the year ended March 30, 1996 and Form 10-Q/A
for the quarter ended December 28, 1996.
-0-
Cirrus Logic news releases may be obtained by fax by dialing
1-800-359-6414, or by dialing 510-249-4200 from outside the United
States, or via Internet on the world wide web at
http://www.cirrus.com/
-0-
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
(Unaudited)
Amounts in thousands, except per share amounts
CONDENSED STATEMENTS OF OPERATIONS
Quarter Ended Four Quarters Ended
------------------- --------------------
March 29, March 30, March 29, March 30,
1997 1996 1997 1996
--------- --------- -------- ----------
Net sales $212,917 $233,073 $917,153 $1,146,945
Costs and expenses and gain on
sale of assets:
Cost of sales 163,905 222,894 598,795 774,350
Research and development 51,249 70,215 230,778 238,791
Selling, general and
administrative 33,745 45,791 126,729 165,267
Restructuring costs 20,954 11,566 20,954 11,566
Gain on sale of assets 7 -- (16,615) --
Non-recurring costs -- -- -- 1,195
--------- --------- ---------- ---------
Total costs and expenses
and gain on sale of assets 269,860 350,466 960,641 1,191,169
--------- --------- ---------- ---------
Loss from operations (56,943) (117,393) (43,488) (44,224)
Interest and other (expense)
income, net (2,653) (493) (8,131) 2,501
--------- --------- ---------- ---------
Loss before benefit for income
taxes (59,596) (117,886) (51,619) (41,723)
Benefit for income taxes (7,737) (29,530) (5,463) (5,540)
-------- --------- ---------- ---------
Net loss ($51,859) ($88,356) ($46,156) ($36,183)
========= ========= ========== =========
Net loss per common and common
equivalent share ($0.79) ($1.38) ($0.71) ($0.58)
========= ========= ========== =========
Weighted average common and common
equivalent shares outstanding 65,917 63,813 65,008 62,761
========= ========= ========== =========
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
Amounts in thousands
CONDENSED BALANCE SHEETS
March 29, March 30,
1997 1996
--------- ---------
(Unaudited)
Current assets:
Cash and cash equivalents $151,540 $155,979
Short-term investments 188,215 19,279
Accounts receivable, net 173,743 133,718
Inventories 127,252 134,502
Deferred tax assets 34,410 52,662
Payments for joint venture equipment
to be leased 112,597 94,683
Other current assets 7,245 4,004
--------- ---------
Total current assets 795,002 594,827
Property and equipment, net 130,855 170,248
Manufacturing agreements, net
and investment in joint ventures 151,675 104,463
Deposits and other assets 59,289 48,039
--------- ---------
Total assets $1,136,821 $917,577
========= =========
Current liabilities:
Short-term borrowing $ -- $80,000
Accounts payable and accrued liabilities 278,958 242,901
Accrued salaries and benefits 25,116 41,845
Obligations under equipment loans and
capital leases, current 30,999 26,575
Income taxes payable 31,259 20,863
--------- ---------
Total current liabilities 366,332 412,184
Obligations under equipment loans and
capital leases, non-current 61,096 71,829
Other long-term 5,196 4,898
Convertible subordinated notes 300,000 --
Shareholders' equity:
Capital stock 351,261 329,574
Retained earnings 52,936 99,092
--------- ---------
Total shareholders' equity 404,197 428,666
--------- ---------
Total liabilities and shareholders' equity $1,136,821 $917,577
========= =========
CONTACT: Cirrus Logic Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs F. Kelly, 510/623-8300 Ronald K. Shelton, 510/226-2256 REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-752-9600 or 800-221-2462; Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. 617-236-4266 or |
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