Cirrus Logic Reports 10 Percent Sequential Revenue Growth in Fiscal Q3; Audio and Video Product Sales Increase, Balance Sheet Strengthens.Business Editors/High-Tech Writers AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--Jan. 21, 2004 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 ) today announced financial results for the third quarter of fiscal 2004, ended Dec. 27, 2003. The company reported third quarter revenue of $55.3 million, up 10 percent from $50.1 million reported in the prior quarter. Third quarter gross margins were 52.0 percent, compared with 51.9 percent in the second quarter. Third quarter combined research and development and selling, general and administrative expenses were $30.4 million, a reduction from $32.6 million in the second quarter. Net income in the third quarter was $39.4 million, or $0.46 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $21.1 million, or $0.25 per diluted share, in the second quarter. The third quarter net income included a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. benefit of $45.0 million, resulting from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement with Western Digital Corporation. The third quarter results also included $4.1 million of net expense for acquisition-, legal- and restructuring-related items, primarily amortization of acquired intangibles. Total cash at the end of the third quarter increased to $180.0 million, from $127.3 million at the end of the second quarter. Excluding cash received during the third quarter from two favorable litigation settlements, the company was cash neutral from operations. "We were pleased to see an increase in both our audio and video sales for the second consecutive quarter. Our sequential revenue growth is a positive indicator of our increased traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. in the video recording market and our continued leadership in the audio market," said David D. French, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cirrus Logic Inc. "We were also pleased that our ongoing cost management efforts have resulted in reduced combined R&D and SG&A expenses for the seventh consecutive quarter." Highlights from the Consumer Electronics Show -- Cirrus Logic launched a new family of audio digital signal processors (DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive ) that is targeted for the audio/video receiver, automotive entertainment and other digital entertainment markets. This advanced DSP family enables new consumer entertainment devices to support content delivered from two different sources and automatic room calibration calibration /cal·i·bra·tion/ (kal?i-bra´shun) determination of the accuracy of an instrument, usually by measurement of its variation from a standard, to ascertain necessary correction factors. . The result is a powerful and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solution for manufacturers of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" digital consumer entertainment systems. -- LG Electronics, a world leader in DVD players A stand-alone device that plays DVDs. It contains a DVD drive and the electronics to decode the digital video. The device may play only manufactured DVDs, or it may be able to play DVD-R, DVD-RW and DVD+RW discs. DVD players are cabled to a TV or home theater system for display. , selling under its own brand and the Zenith zenith, in astronomy, the point in the sky directly overhead; more precisely, it is the point at which the celestial sphere is intersected by an upward extension of a plumb line from the observer's location. brand in the U.S., announced a next-generation DVD recorder (1) A recordable or rewritable DVD drive that is connected to the computer. It may be an internal or external device. See DVD drives, DVD-R, DVD-RW, DVD+R and DVD+RW. (2) based on Cirrus Logic's audio and video processors, mixed-signal chipsets and software. LG Electronics' product, expected to be in volume production by this June June: see month. , makes them the first Cirrus Logic customer with an announced DVD recorder with a -RW and +RW product offering. -- Mustek, a major Cirrus Logic end customer and one of the top five manufacturers of DVD recorders, announced a next-generation DVD recorder powered by Cirrus Logic's audio and video chipsets and software that features the ability to record digital video to a hard disk drive. -- Cirrus Logic showcased a number of new customer products based on its reference designs and chipset A group of chips designed to work as a unit to perform a function. For example, a modem chipset contains all the primary circuits for transmitting and receiving. A PC chipset provides the electronic interfaces between all subsystems (see PC chipset for illustration). solutions, including digital video recording products from BBK BBK Bundesamt für Bevölkerungsschutz und Katastrophenhilfe (German) BBK Bilbao Bizkaia Kutxa (Bank of Bilbao, Spain) BBK Bank of Bahrain and Kuwait BBK BB King (blues artist) Electronics, CyberHome, Ellion, GoVideo, LG Electronics, Mustek, Sampo sampo In Finnish mythology, a mysterious object that has been variously identified but is typically believed to be a cosmological pillar that supports the vault of heaven. and Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) . Several of these manufacturers had products available for the 2003 holiday sales period at leading U.S. retail outlets, including Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , Target and Radio Shack See RadioShack. ; regionalretailers, including Good Guys and Fry's Electronics Fry's Electronics is a specialty retailer of software, consumer electronics, computer hardware and household appliances with a chain of superstores headquartered in Silicon Valley. Starting with one store located in Sunnyvale, California, USA, the chain now boasts sales of $2. ; as well as leading European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. retailers such as Karstadt and Media-Markt. Outlook and Guidance "Looking ahead to the March quarter, we are evaluating channel and retail inventory levels and the actual sell-through sell-through Adjective of the sale of prerecorded video cassettes, without their first being for hire only from the December December: see month. holiday season. Although we have design-win momentum and strong product acceptance, we are approaching the March quarter cautiously and we're we're Contraction of we are. we're we are expecting the lower demand that typically follows the December quarter in consumer electronics for chipmakers," said French. "We are excited about our prospects for the balance of calendar-year 2004. We continue to invest in new product development and to expand our customer support." Fourth Quarter FY04 (ending Mar. 27, 2004) -- Revenue is expected to be between $48 million and $52 million. -- Gross margins are expected to be in the range of 51 percent to 53 percent. -- Combined R&D and SG&A expenses are expected to total $30 million to $32 million. -- Total cash is expected to range between $177 million to $181 million at the end of the fourth quarter. Conference Call Cirrus Logic management will hold a conference call to discuss these results today, Jan. 21st, at 4 p.m. Central Time. Those wishing to join should dial 617-847-3007 (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 Jan. 28, 2004. To access the replay, dial 617-801-6888 (pass code: 79362223). A live and an archived Web cast of the conference call will also be available via the company's Web site at www.cirrus.com. Upcoming Investor Conference Cirrus Logic management will be presenting at the Thomas Weisel Partners Thomas Weisel Partners Group, Inc. (NASDAQ: TWPG), often shortened to just TWP or TWeisel, is a U.S. middle-market and growth focused investment banking firm based in San Francisco, California. Technology 2004 Conference in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden on Feb. 3rd. Those wishing to listen to management's presentation can hear a live and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. an archived Web cast of this event via the company's Web site at www.cirrus.com. Cirrus Logic Inc. Cirrus Logic is a premier supplier of high-performance analog, mixed-signal and digital processing Digital processing is the process of altering digital data in any form. The most common situations where digital processing is involved are computer graphics and digital audio 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 California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Japan and Asia. More information about
Cirrus Logic is available at www.cirrus.com.Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Except for historical information contained herein, the matters set forth in this news release, including our estimates of fourth fiscal quarter revenues, combined research and development and selling, general and administrative expense levels, gross margin and cash levels, expectations regarding our revenue growth opportunities, including the introduction of new products by other companies containing our components during the fourth quarter of fiscal year 2004 and calendar year 2004, and our estimates regarding future retail prices, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 from our current expectations, estimates and assumptions and the forward-looking statements made in this press release. These risks and uncertainties include, but are not limited to, the following: overall conditions in the semiconductor market; the expansion of the consumer digital entertainment electronics 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 Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; the level of orders and shipments during the fourth quarter of fiscal-year 2004, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; our expectations regarding our potential cost savings; pricing pressures; hardware or software deficiencies; our dependence on subcontractors for assembly, manufacturing, packaging and testing functions; our ability to make continued substantial investments in research and development; foreign currency fluctuations; the retention of key employees; the impact of 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 other costs, such as work force reductions and facility consolidations; and the risk factors listed in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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. 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
-----------------------------
Dec. 27, Sep. 27, Dec. 28,
2003 2003 2002
--------- --------- ---------
Net sales $55,270 $50,130 $60,516
Costs and expenses:
Cost of sales 26,552 24,132 29,361
Research and development 18,224 20,427 21,886
Selling, general and administrative 12,163 12,203 17,909
Restructuring and other costs 896 395 2,208
Amortization of acquired intangibles 3,419 3,778 4,456
Patent infringement settlements, net - (14,402) -
Litigation settlement (45,000) - -
--------- --------- ---------
Total costs and expenses 16,254 46,533 75,820
--------- --------- ---------
Income (loss) from operations 39,016 3,597 (15,304)
Realized gain (loss) on marketable equity
securities - 10,080 -
Interest income (expense), net 450 247 542
Other income (expense), net 58 8 (1,886)
--------- --------- ---------
Income (loss) before income taxes and
loss from discontinued operations 39,524 13,932 (16,648)
Provision (benefit) for income taxes 75 (7,122) (4,435)
--------- --------- ---------
Income (loss) from continuing operations 39,449 21,054 (12,213)
Loss from discontinued operations - - -
--------- --------- ---------
Net income (loss) $39,449 $21,054 $(12,213)
========= ========= =========
Basic income (loss) per share:
From continuing operations $0.47 $0.25 $(0.15)
Discontinued operations - - -
--------- --------- ---------
$0.47 $0.25 $(0.15)
========= ========= =========
Diluted income (loss) per share:
From continuing operations $0.46 $0.25 $(0.15)
Discontinued operations - - -
--------- --------- ---------
$0.46 $0.25 $(0.15)
========= ========= =========
Basic weighted average common shares
outstanding 84,015 83,946 83,487
Diluted weighted average common shares
outstanding 86,440 85,556 83,487
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Nine Months Ended
------------------------
Dec. 27, Dec. 28,
2003 2002
----------- -----------
Net sales $146,124 $209,854
Costs and expenses:
Cost of sales 71,673 103,979
Research and development 59,297 75,804
Selling, general and administrative 36,883 58,319
Restructuring and other costs 8,931 7,395
Amortization of acquired intangibles 10,975 13,803
Patent infringement settlements, net (14,402) -
Litigation settlement (45,000) -
----------- -----------
Total costs and expenses 128,357 259,300
----------- -----------
Income (loss) from operations 17,767 (49,446)
Realized gain (loss) on marketable equity
securities 10,080 453
Interest income (expense), net 1,320 1,823
Other income (expense), net (7) (2,166)
----------- -----------
Income (loss) before income taxes and loss
from discontinued operations 29,160 (49,336)
Provision (benefit) for income taxes (7,026) (4,377)
----------- -----------
Income (loss) from continuing operations 36,186 (44,959)
Loss from discontinued operations - (1,452)
----------- -----------
Net income (loss) $36,186 $(46,411)
=========== ===========
Basic income (loss) per share:
From continuing operations $0.43 $(0.54)
Discontinued operations - (0.02)
----------- -----------
$0.43 $(0.56)
=========== ===========
Diluted income (loss) per share:
From continuing operations $0.42 $(0.54)
Discontinued operations - (0.02)
----------- -----------
$0.42 $(0.56)
=========== ===========
Basic weighted average common shares
outstanding 83,908 83,302
Diluted weighted average common shares
outstanding 85,258 83,302
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)
Dec. 27, Sep. 27, Dec. 28,
2003 2003 2002
--------- --------- ---------
ASSETS
Current assets
Cash and cash equivalents $172,268 $119,059 $111,959
Restricted cash 7,751 8,265 12,844
Marketable equity securities 2,466 1,654 904
Accounts receivable, net 18,710 21,860 27,886
Inventories 26,836 25,130 28,523
Other current assets 11,181 19,243 18,564
--------- --------- ---------
Total Current Assets 239,212 195,211 200,680
Property and equipment, net 23,814 25,317 38,393
Goodwill and intangibles, net 32,663 37,035 178,772
Other assets 4,676 5,220 6,412
--------- --------- ---------
Total Assets $300,365 $262,783 $424,257
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $50,222 $53,342 $56,828
Current maturities of long-term debt
and capital lease obligations - - -
Income taxes payable 30,185 30,319 37,527
--------- --------- ---------
Total Current Liabilities 80,407 83,661 94,355
Long-term obligations 16,114 16,587 13,414
Minority interest in eMicro - - 599
Stockholders' equity:
Capital stock 870,714 869,238 867,519
Accumulated deficit (667,726) (707,175) (551,110)
Accumulated other comprehensive income
(loss) 856 472 (520)
--------- --------- ---------
Total Stockholders' Equity 203,844 162,535 315,889
--------- --------- ---------
Total Liabilities and
Stockholders' Equity $300,365 $262,783 $424,257
========= ========= =========
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