Cirrus Logic Reports First Quarter Fiscal Year 1998 Results.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)--July 16, 1997--Cirrus Logic Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CRUS crus (krus) pl. cru´ra [L.] 1. leg (1). 2. a leglike part. crus ce´rebri ) today announced net revenues for the first quarter of fiscal 1998 were $201.6 million, down 6% from $214.9 million for the first quarter of fiscal 1997. Net income for the first quarter was $2.5 million, or $0.04 per share, compared to a net loss of $7.6 million, or $0.12 per share in the first quarter of last year. "We are beginning to see the benefits of the actions we've we've Contraction of we have. we've have taken to intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our focus on core businesses," 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:
http://cirrus.com/. . "We have essentially completed the divestitures of non-core businesses, and we are well along in 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. of our company into four market-focused divisions." He noted that the reorganization, which included a workforce reduction and the consolidation of certain manufacturing and corporate functions in late April 1997, contributed to a 13% percent reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the June June: see month. quarter from the fourth quarter of 1997. "A highlight of the June quarter was the performance of our Mass Storage Products Division, which shipped a record unit volume and posted a sequential One after the other in some consecutive order such as by name or number. increase in revenues," said Hackworth. "Revenues from our PC Products Division declined sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , as expected, due to continuing pricing pressures and our reluctance to pursue low-margin business for certain graphics and audio products." Commenting on Cirrus Logic's April reorganization, 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 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. , chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. in the office of the president, said, "Our operating efficiency continues to improve steadily. The 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. that we expected to come from our transition to four market-focused divisions is now becoming evident - not only in intellectual property leverage across product lines - but also in effective market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" ." "Design-win momentum continued to build across the four divisions," said George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Alexy Alexy is a surname, and may refer to:
tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. our strong market position in mass storage by serving customers such as Seagate Technology (company) Seagate Technology - A major manufacturer of hard disk drives, founded in 1979 as "Shugart Technology" by Alan F. Shugart and Finis Conner. That name is on the original patents for the 5.25" hard disk drive. and Western Digital, we continued to expand our share of the PC audio and telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. markets, increase design win momentum in digital consumer audio and enhance our position in the LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. and remote access markets." FISCAL Q1 1998 BUSINESS REVIEW -- Revenue breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. by division for the quarter was as follows:
Q1- FY Q4-FY
1998 1997
Mass Storage Products 37% 30%
PC Products 34% 42%
Communications Products 12% 14%
Crystal Semiconductor 8% 9%
Products
Other 9% 5%
-- Revenue breakdown by geographic area for the quarter was as
follows:
Q1- FY Q4- FY
1998 1997
Americas 46% 39%
Pacific Rim 29% 34%
Japan 17% 20%
Europe 8% 7%
-- Overall gross margin for the June quarter was approximately 39%
percent compared to 38% percent from the year-ago quarter.
-- Operating expenses for the first quarter were $73.7 million, down
20% from $91.8 million from the year-ago quarter. The decrease in
operating expenses is primarily a result of businesses divested by
the company during fiscal 1997 and cost reductions associated with
the restructuring and reorganization that occurred in late April
1997.
FISCAL Q1 1998 REVIEW BY DIVISION
MASS STORAGE PRODUCTS
-- Cirrus Logic initiated volume production of its Ultra ATA family
of disk controllers, designed to accelerate data transfer between the
hard disk drive and the PC main memory. Disk drive manufacturers are
now able to provide high performance disk drives for the new
generation of high- performance Ultra ATA motherboards.
-- Cirrus Logic is in high volume production of its current
generation PRML family of read channels with shipments expected to
approach 10 million units in the current quarter. The company's
0.35-micron PRML read channels are currently being designed into
next-generation disk drives and are expected to be in volume
production in calendar 1998.
-- Cirrus Logic introduced the industry's first high-speed Ultra ATA
CD-ROM (CL-CR3430) decoder, which is gaining significant acceptance
in next-generation CD-ROM designs. The company also announced that
its CD- ROM decoder (CL-CR3420) is designed into Sony's CDU511 CD-ROM
drive and that its CD-Recordable encoder/decoder (CL-CR3560) is
designed into Sony's Spressa CDU926S CD-R drive.
PC PRODUCTS
-- Cirrus Logic began volume shipments of its new DSP audio
processor (CS 4610) to a major OEM. This device is the industry's
first PCI bus audio accelerator with integrated Dolby AC-3 decoding
for acceleration of DVD playback and 3D sound processing for DVD
playback and 3D audio gaming.
-- Cirrus Logic demonstrated high-speed Internet access with its
FastPath 56K modem chipset (CL-MD56XX) using the widely accepted U.S.
Robotics' x2 protocol at the WinHEC trade show. Broad acceptance of
the technology fueled unit growth of more than 80% for the quarter.
-- Cirrus Logic announced that its 64-bit VisualMedia Accelerator
(CL-GD5446) and ISA audio accelerator (CS4236) were designed into
certain new Compaq Presario home PC models.
-- Cirrus Logic's Laguna3D video/graphics accelerator (CL-GD5465)
has been selected by three major PC OEMs. Volume production is
expected to begin this quarter.
-- During the quarter, Cirrus Logic's ISA audio parts achieved three
Tier-1 OEM design wins.
-- Cirrus Logic partnered with Microsoft to kick off a three-month,
Internet-based promotion focusing on the company's Laguna3D graphics
accelerator product and Microsoft's Monster Truck Madness Direct 3D
game.
COMMUNICATIONS PRODUCTS
-- Cirrus Logic's Smartphone controller (PS7115) based on an
embedded ARM microprocessor, has been released for production. This
product was developed for a major cellular phone manufacturer.
-- Cirrus Logic received a significant design win from a major PC
manufacturer for the company's complete LAN solution (CS8920A) for PC
motherboards.
-- Cirrus Logic made first shipments of its high-density physical
layer interface for Ethernet switch systems (CS8904) to a leading
network equipment manufacturer.
-- Cirrus Logic's family of dual T1/E1 line interface products
(CS61582, CS61583, CS61584), achieved several major design wins with
leading telecommunications equipment manufacturers.
-- At PC Expo in New York, Psion PLC launched their Series 5
handheld computer, powered by Cirrus Logic's PS7110 ARM processor,
which provides a high level of processing power while preserving
battery life.
CRYSTAL SEMICONDUCTOR PRODUCTS
-- Cirrus Logic announced its Crystal 120 dB, 96 kHz
analog-to-digital converter (CS5396). This is the world's first A/D
converter to break the 120 dB dynamic range barrier, enabling the
transition of professional analog audio systems to DSP based systems.
The CS5396 is also the first 24-bit ADC to support the emerging
96-kHz sampling rate requirement for professional audio systems.
-- Cirrus Logic began sampling its Crystal Dolby Digital & Dolby
Surround Pro-Logic audio decoder. This decoder is targeted for all
emerging Dolby Digital DVD, Home Theater, HDTV and Set-Top
entertainment applications.
-- Now sampling is the CS7615/65 mixed-signal CCD video camera
electronics chip-set for application areas such as security cameras,
fingerprint analysis, industrial pattern recognition, robotics, 3-D
imaging, professional video cameras, and PC videoconferencing. This
camera solution now opens new markets for high value, low cost
imaging products.
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, Cirrus Logic is
committed to technology leadership for 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 29, 1997.
-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/
All trademarks are registered to their respective owners.
-0-
Summary financial data follows:
-0-
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
Amounts in thousands, except per share amounts
(Unaudited)
CONDENSED STATEMENTS OF OPERATIONS
Quarter Ended
--------------------------
June 28, June 29,
1997 1996
-------- ---------
Net sales $201,623 $214,898
Costs and expenses:
Cost of sales 122,471 132,407
Research and development 44,182 61,218
Selling, general and administrative 29,527 30,568
Total costs and expenses 196,180 224,193
Income (loss) from operations 5,443 (9,295)
Interest and other expense, net (1,900) (1,341)
Income (loss) before provision
(benefit) for income taxes 3,543 (10,636)
Provision (benefit) for income taxes 1,063 (3,031)
Net income (loss) $2,480 ($7,605)
Net income (loss) per common
and common equivalent share $0.04 ($0.12)
Weighted average common and
common equivalent
shares outstanding 67,849 64,159
CIRRUS LOGIC, INC.
CONSOLIDATED SUMMARY FINANCIAL STATEMENTS
Amounts in thousands
(Unaudited)
CONDENSED BALANCE SHEETS
June 28, March 29,
1997 1997
-------- ---------
Current assets:
Cash and cash equivalents $139,486 $151,540
Short-term investments 185,964 188,215
Accounts receivable, net 157,940 173,743
Inventories 97,773 127,252
Other current assets 150,440 154,252
Total current assets 731,603 795,002
Property and equipment, net 124,490 130,855
Manufacturing agreements, net and
investment in joint ventures 150,304 151,675
Deposits and other assets 57,299 59,289
Total assets $1,063,696 $1,136,821
Current liabilities:
Accounts payable and accrued
liabilities $229,669 $304,074
Obligations under equipment
loans and capital leases, current 27,784 30,999
Income taxes payable 28,956 31,259
Total current liabilities 286,409 366,332
Long-term obligations and
convertible subordinated notes 362,916 366,292
Shareholders equity:
Capital stock 358,956 351,261
Retained earnings 55,415 52,936
Total shareholders equity 414,371 404,197
Total liabilities and
shareholders equity $1,063,696 $1,136,821
CONTACT: Cirrus Logic Ronald K. 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. , VP/CFO, 510/623-8300 or Bonnie bon·ny also bon·nie adj. bon·ni·er, bon·ni·est Scots 1. Physically attractive or appealing; pretty. 2. Excellent. McBride, Director, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 510/226-2112 bonnie@corp.cirrus.com |
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