Cirrus Logic Reports FYQ3 Sequential Revenue Growth of 10% to $208 Million; Pro Forma Net Income Up 39%.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. 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. 24, 2001 Revenues and Earnings on Track to Meet Full Year Guidance; FYQ4 Revenue Outlook Flat with FYQ3 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 its third quarter of fiscal 2001, ended Dec. 30, 2000. Fiscal third quarter revenues grew to $208 million, up 10 percent from the $189.5 million reported in the prior quarter, and up 38 percent from the $150.8 million reported in the third fiscal quarter a year ago. Revenues from core businesses were up 14 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and 56 percent year over year. Core revenues exclude revenues from end-of-life end-of-life Cardiac pacing noun The point at which a pacemaker signals need for replacement, as its battery is nearing depletion Medtalk adjective products. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for fiscal Q3 was $22.4 million, an increase of 39 percent from $16.1 million pro forma net income reported in the prior quarter, or seven times the $3.3 million reported in the same quarter a year ago. On a pro forma basis, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.28, up 22 percent from $0.23 reported in the prior quarter. Pro forma results for the fiscal third quarter exclude investment gains and the amortization of acquisition related expenses. "We delivered another strong quarter, which was in line with the original financial guidance we gave in October October: see month. ," said David D. French, president and chief executive officer of Cirrus Logic. "In addition, we believe we are on track to achieve our October guidance for revenues of $775 million to $790 million and pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share of $0.90 to $0.94 in fiscal 2001." "We converted $271 million of debt during the quarter, leaving the company virtually debt-free, with shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. reaching $420 million and cash in excess of $250 million. This puts us in a very strong position to explore strategic growth opportunities," French added. Outlook Looking forward, the company expects revenues in the March quarter (fiscal Q4 of 2001) to be essentially flat with revenues in fiscal Q3 of 2001, based on the strength of our consumer electronics focus offsetting softness in the PC sector. French concluded: "I believe our strong balance sheet and strategic vision of Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the entertainment electronics position us well for the future. We occupy leadership positions in our chosen markets, and see strong ongoing design win activity. This was highly evident at the recent Consumer Electronics Show where many customers demonstrated their new products using our chip solutions, including Intel with its Pocket Concert MP3 player A digital music player that supports the MP3 format, which was the audio format that started a revolution in online music downloads and distribution. All portable music players, the iPod being the most popular, support MP3 along with one or more other audio formats. and virtually every major Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and manufacturer of A/V receivers (Audio/Video receiver) A combination audio amplifier and audio/video switching device for a home theater. It contains inputs for all the audio and video sources and outputs to one or more sets of speakers and one or more monitors (without a tuner) or TVs. and set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. ." Conference Call Cirrus Logic management will hold a conference call to discuss these results today, Jan. 24 at 4:00 p.m. Central Time. Those wishing to join should dial 212/547-0138, passcode "Cirrus Logic" at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3:45 p.m. A live Webcast of the conference call will also be available via the company's Web site at www.cirrus.com. A replay of the call will be available starting one hour after the completion of the call until Feb 7, 2001. To access the replay, please dial 402/220-3824. About Cirrus Logic Cirrus Logic is a premier supplier 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" analog and 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 chip solutions for Internet entertainment electronics. Building on its global market share leadership in audio integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. and its rich mixed-signal patent portfolio, the company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal (R), Maverick Maverick family name of two brothers, Bret and Bait; self-centered and untrustworthy gentlemen gamblers. [TV: Terrace, II, 80] See : Gambling (tm) and 3Ci(tm) brands as well as its own name. Founded in 1984 in Silicon Valley, Cirrus Logic operates from headquarters in Austin, Texas and major sites located in 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. and Broomfield Broomfield can be: In the United Kingdom:
 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.Except for historical information contained herein, the matters set forth in this news release 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. that are dependent on certain risks and uncertainties including such factors, among others, as overall conditions in the semiconductor 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 utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be 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 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 25, 2000, and in other filings with the Securities and Exchange Commission. The foregoing information concerning Cirrus Logic's business outlook represents our outlook as of the date of this news release, and Cirrus Logic undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise. Summary financial data follows:
CIRRUS LOGIC INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
(not prepared in accordance with GAAP)
Quarter Ended
-----------------------------------
Dec. 30 Sept. 23 Dec. 25
2000 2000 1999
----------- ---------- ----------
Net sales $ 207,998 $ 189,537 $ 150,759
Costs and expenses:
Cost of sales 124,760 110,513 93,435
Research and development (Note 1) 32,999 32,654 28,034
Selling, general and
administrative (Note 2) 27,155 27,799 23,270
Restructuring costs and other
(gains) (Note 3) - - -
Abandonment of assets charge
(Note 4) - - -
----------- ---------- ----------
Total costs and expenses 184,914 170,966 144,739
Income from operations 23,084 18,571 6,020
Realized gain on sale of marketable
equity securities (Note 5) - - -
Interest income and (expense), net 3,263 (811) (3,875)
Other income (expense), net
(Note 6) (1,333) 168 1,180
----------- ---------- ----------
Income before provision for income
taxes 25,014 17,928 3,325
Provision for income taxes 2,411 1,888 -
Minority interest in (income) loss
of eMicro (179) 105 -
----------- ---------- ----------
Net income 22,424 16,145 3,325
=========== ========== ==========
Earnings per share:
Basic $ 0.30 $ 0.24 $ 0.05
Diluted (Note 7) $ 0.28 $ 0.23 $ 0.05
Weighted average common shares outstanding:
Basic 75,127 66,041 62,134
Diluted (Note 7) 80,388 70,918 68,524
See notes to Pro Forma Consolidated Condensed Statement of Operations
CIRRUS LOGIC INC.
NOTES TO PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
The following non-recurring unusual or extraordinary items, and
their related tax effects, have been excluded from the Company's
historical financial results for this pro forma presentation:
(Note 1) During Q3 FY '01, Q2 FY '01 and Q3 FY '00, Cirrus Logic
recorded $0.9 million of research and development expenses related to
the amortization of acquired intangible assets. During Q2 FY '01,
Cirrus Logic recorded $1.0 million of research and development
expenses related to the acquisition of AudioLogic Inc.
(Note 2) During Q2 FY '01, Cirrus Logic recorded $1.5 million of
selling, general and administrative expenses related to the
acquisition of AudioLogic Inc.
(Note 3) During Q2 FY '01, Cirrus Logic recognized a restructuring
gain of $1.8 million primarily related to the final resolution of the
MiCRUS restructuring agreement.
(Note 4) During Q3 FY '00, Cirrus Logic made a strategic decision to
abandon the development efforts undertaken on the manufacturing
component of the Company's enterprise resource planning software. In
connection with this, the Company recorded an asset abandonment charge
of approximately $10.2 million.
(Note 5) During Q3 FY '01 and Q2 FY '01, Cirrus Logic recognized gains
of $3.0 million and $1.9 million respectively related to the sale of
options in Phone.com (now Openwave Systems Inc.; Nasdaq:OPWV). During
Q3 FY '00 Cirrus Logic recognized a $34.3 million gain on the sale of
shares of Phone.com.
(Note 6) During Q3 FY '01, Cirrus Logic wrote off a $0.5 million
investment in a private company. During Q3 FY '00 Cirrus Logic
recorded an adjustment of $2.4 million relating to the reduction of a
liability previously accrued in connection with the sale of a
technology license.
(Note 7) Q3 FY '00 diluted earnings per share on GAAP basis included
an adjustment to increase net income by $4.5 million and diluted
shares by 12,387 which are the after-tax interest savings and shares
which would have been issued in connection with the convertible debt.
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
(in thousands)
Dec. 30 Sept. 23 Mar. 25
2000 2000 1999
----------- ---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 254,070 $ 254,711 $ 144,034
Restricted cash 11,008 1,421 57,173
Marketable equity securities 15,506 33,875 48,077
Accounts receivable, net 122,225 129,654 94,672
Inventories, net 113,501 86,479 53,288
Other current assets 24,585 26,979 23,421
----------- ---------- ----------
540,895 533,119 420,665
Property and equipment, net 34,171 36,902 34,730
Deposits and other assets 34,349 45,289 49,437
----------- ---------- ----------
$ 609,415 $ 615,310 $ 504,832
=========== ========== ==========
LIABILITIES AND SHAREHOLDER EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 121,775 $ 141,303 $ 130,567
Current maturities of long term
debt and capital lease
obligations 3,825 7,948 12,829
Income taxes payable 56,253 53,706 40,193
----------- ---------- ----------
181,853 202,957 183,589
Long term obligations and
convertible subordinated notes 5,287 277,304 304,945
Stock issued under the
restructuring agreement with IBM - - 32,000
Minority interest in eMicro 1,955 1,776 -
Net shareholder equity (deficiency)
Capital stock 698,050 416,395 368,015
Accumulated other comprehensive
(loss) income 14,018 32,531 47,284
Accumulated deficit (291,748) (315,653) (431,001)
----------- ---------- ----------
420,320 133,273 (15,702)
----------- ---------- ----------
$ 609,415 $ 615,310 $ 504,832
=========== ========== ==========
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Quarter Ended
-----------------------------------
Dec. 30 Sept. 23 Dec. 25
2000 2000 1999
----------- ---------- ----------
Net sales $ 207,998 $ 189,537 $ 150,759
Costs and expenses:
Cost of sales 124,760 110,513 93,435
Research and development (Note 1) 33,905 34,549 28,936
Selling, general and
administrative (Note 2) 27,155 29,299 23,270
Restructuring costs and other
(gains) (Note 3) - (1,848) -
Abandonment of assets charge
(Note 4) - - 11,174
----------- ---------- ----------
Total costs and expenses 185,820 172,513 156,815
Income from operations 22,178 17,024 (6,056)
Realized gain on sale of marketable
equity securities (Note 5) 3,020 1,905 34,293
Interest income and (expense), net 3,263 (811) (3,875)
Other income (expense), net
(Note 6) (1,833) 168 3,561
----------- ---------- ----------
Income before provision for income
taxes 26,628 18,286 27,923
Provision for income taxes 2,572 1,924 -
Minority interest in (income) loss
of eMicro (179) 105 -
----------- ---------- ----------
Net income 23,877 16,467 27,923
=========== ========== ==========
Earnings per share:
Basic $ 0.32 $ 0.25 $ 0.45
Diluted (Note 7) $ 0.30 $ 0.23 $ 0.40
Weighted average common shares outstanding:
Basic 75,127 66,041 62,134
Diluted (Note 7) 80,388 70,918 80,911
See notes to Consolidated Condensed Statement of Operations
CIRRUS LOGIC INC.
NOTES TO CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(Note 1) During Q3 FY '01, Q2 FY '01 and Q3 FY '00, Cirrus Logic
recorded $0.9 million of research and development expenses related to
the amortization of acquired intangible assets. During Q2 FY '01,
Cirrus Logic recorded $1.0 million of research and development
expenses related to the acquisition of AudioLogic Inc.
(Note 2) During Q2 FY '01, Cirrus Logic recorded $1.5 million of
selling, general and administrative expenses related to the
acquisition of AudioLogic Inc.
(Note 3) During Q2 FY '01, Cirrus Logic recognized a restructuring
gain of $1.8 million primarily related to the final resolution of the
MiCRUS restructuring agreement.
(Note 4) During Q3 FY '00, Cirrus Logic made a strategic decision to
abandon the development efforts undertaken on the manufacturing
component of the Company's enterprise resource planning software. In
connection with this, the Company recorded an asset abandonment charge
of approximately $10.2 million.
(Note 5) During Q3 FY '01 and Q2 FY '01, Cirrus Logic recognized gains
of $3.0 million and $1.9 million respectively related to the sale of
options in Phone.com (now Openwave Systems Inc.; Nasdaq:OPWV). During
Q3 FY '00 Cirrus Logic recognized a $34.3 million gain on the sale of
shares of Phone.com.
(Note 6) During Q3 FY '01, Cirrus Logic wrote off a $0.5 million
investment in a private company. During Q3 FY '00 Cirrus Logic
recorded an adjustment of $2.4 million relating to the reduction of a
liability previously accrued in connection with the sale of a
technology license.
(Note 7) Q3 FY '00 diluted earnings per share on GAAP basis included
an adjustment to increase net income by $4.5 million and diluted
shares by 12,387 which are the after-tax interest savings and shares
which would have been issued in connection with the convertible debt.
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