 |
|
Looking for who said what in the sound world? Well there is no better place to find every audio related press release than 3DsoundSurge.! |
|
|
|
|
|
| Sound News | Press
Releases | Archives | Week In
Review | Editorials
| Articles | |
|
|
|
||||
|
|||||
|
|
Projects Continued Revenue Growth in FQ4 and FQ1 |
| AUSTIN, Texas--(BUSINESS
WIRE)--Jan. 23, 2002--Cirrus Logic Inc. (Nasdaq:CRUS) today announced financial results
for its third quarter of fiscal 2002, ended Dec. 29, 2001. Fiscal third quarter revenue was $77.0 million, compared with $67.7 million reported in ongoing businesses during the prior quarter. Ongoing businesses exclude products for magnetic hard disk drives, which the company exited in fiscal Q2. Total reported Q2 revenues were $77.3 million. Pro forma net loss for fiscal Q3 was $15.1 million, including a $1.9 million tax benefit, versus the pro forma net loss of $14.6 million in the prior quarter. Pro forma loss per share was $0.19 on 79 million shares outstanding, and includes a $0.02 per share tax benefit. This is compared with pro forma loss per share of $0.20 on 74 million shares outstanding in the prior quarter. As expected, pro forma results for the third quarter exclude $34.4 million in charges due to acquisitions, consisting of a $29.4 million write-off of in-process R&D, and $5.0 million in amortization of intangibles and other acquisition-related costs. Pro forma results also exclude $34.0 million in charges resulting from the corporate restructuring and workforce reductions in October 2001. These charges include a $25.3 million inventory write-off, $5.5 million severance and facility consolidation costs, and $3.2 million of other non-cash charges. In accordance with generally accepted accounting principals (GAAP), third quarter net loss was $85.4 million. The GAAP net loss per share was $1.08. Third quarter pro forma gross margins were 41 percent, up from the 39 percent gross margins the company reported in the second fiscal quarter. The company benefited from favorable wafer prices it had negotiated earlier in the fiscal year. ``We are pleased to have achieved our second consecutive quarter of double-digit revenue growth in our ongoing businesses,'' said David D. French, president and CEO of Cirrus Logic. ``Design win activity increased across most product lines, an encouraging indication of our growth potential in the rapidly growing digital entertainment electronics market. Revenue from our DVD optical controllers was especially strong in the third quarter. ``During Q3 we completed the acquisitions of ShareWave, Inc., LuxSonor Semiconductors, Inc., and Stream Machine Company, greatly enhancing our position as the largest pure-play semiconductor company in digital entertainment electronics. The integration of these businesses, which have leadership technologies in wireless home networking, DVD video decoders and MPEG-2 video recording, is progressing even better than we had expected. Operational functions were consolidated within one week of each closing. We are already seeing marketing and sales benefits, including key program wins at major customers including Bose, Motorola and Samsung. ``At the recent Consumer Electronics Show, Cirrus demonstrated new products in all core areas of our business: a new 32-bit DSP for high-end A/V receivers, a new video DVD processor, a recently announced 802.11 wireless networking solution, a video compression codec and an early prototype of a CD player solution with MP3 playback capability,'' French said. Third quarter pro forma operating expenses increased to $49.1 million from $46.7 million in Q2. The increase was due to ongoing operating expenses from acquisitions, which were partially offset by the company's previously announced cost reduction efforts. Cash at the end of the third quarter was $149 million, down from $177 million at the end of fiscal Q2 due to acquisition related costs, cash costs associated with Q3 restructuring and the net operating loss in Q3. At the end of Q3, receivables included $73 million in disputed receivables associated with ongoing litigation with Western Digital and Fujitsu, which the company believes will be collected. Customer highlights:
Technology highlights:
Outlook and Guidance Fourth Quarter FY02 (ending March 2002)
First Quarter FY03 (ending June 2002)
Litigation Update
Conference Call Cirrus Logic management will hold a conference call to discuss these results today, January 23, at 4 p.m. Central Time. Those wishing to join should dial 712/257-3320, passcode ``Cirrus Logic'' at approximately 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 January 31, 2002. To access the replay, please dial 402/220-0369. About Cirrus Logic Cirrus Logic is the premier supplier of high-performance analog and DSP chip solutions for consumer entertainment electronics that allow people to see, hear, connect, and enjoy digital entertainment. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets mainstream audio, video and Internet entertainment applications in the consumer entertainment market. Cirrus Logic operates from headquarters in Austin, Texas and major sites located in Fremont and El Dorado Hills, Calif., Broomfield and Boulder, Colo., as well as offices in Europe, 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 that are dependent on certain risks and uncertainties including such factors, among others, as the ability of the Company to successfully integrate its acquisitions into its operations and realize the anticipated synergies; the ability of the Company to deliver products that perform as anticipated; the successful resolution of the Company's litigation with Western Digital and Fujitsu; overall conditions in the semiconductor market; the rate of consumer electronics market adoption of new products; and the risk factors listed in the company's Form 10-K for the year ended March 31, 2001, 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. Cirrus Logic is a trademark of Cirrus Logic Inc. Summary financial data follows: CIRRUS LOGIC INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
(not prepared in accordance with GAAP)
Quarter Ended
-------------------------------------
Dec. 29, Sept. 29, Dec. 30,
2001 2001 2000
----------- ----------- -----------
Net sales $ 76,971 $ 77,276 $ 207,998
Costs and expenses:
Cost of sales (Note 1) 45,336 46,984 124,760
Research and development
(Note 2) 27,184 25,125 32,999
Selling, general and
administrative (Note 3) 21,900 21,567 27,155
Restructuring costs and other
(gains) (Note 4) -- -- --
----------- ----------- -----------
Total costs and expenses 94,420 93,676 184,914
Income (loss) from operations (17,449) (16,400) 23,084
Realized gain on sale of
marketable equity securities
(Note 5) -- -- --
Interest income and (expense),
net 939 1,420 3,263
Other income (expense), net
(Note 6) (521) 280 (1,333)
----------- ----------- -----------
Income (loss) before provision
for income taxes (17,031) (14,700) 25,014
Provision (benefit) for income
taxes (Note 7) (1,926) -- 2,411
Minority interest in (income)
loss of eMicro 44 84 (179)
----------- ----------- -----------
Net income (loss) $ (15,061) $ (14,616) $ 22,424
=========== =========== ===========
Basic income (loss) per share $ (0.19) $ (0.20) $ 0.30
=========== =========== ===========
Diluted income (loss) per
share $ (0.19) $ (0.20) $ 0.28
=========== =========== ===========
Weighted average common shares
outstanding:
Basic 79,207 74,000 75,127
Diluted 79,207 74,000 80,388
See notes to Pro Forma Consolidated Condensed Statement of Operations
CIRRUS LOGIC INC.
NOTES TO PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited - quarterly)
The following non-recurring or unusual items have been excluded
from the historical financial results for this pro forma presentation:
(Note 1) Q3 FY'02 -- Pro Forma cost of sales excludes $25.3
million in inventory charges associated with the restructuring and the
exit from our magnetic storage product line. Q2 FY'02 -- Pro Forma
cost of sales excludes a credit of $0.4 million recorded in
conjunction with exiting the magnetic storage product line.
(Note 2) Q3 FY'02 -- Pro Forma research and development expense
excludes $29.4 million related to the write-off of in-process research
and development associated with the acquisition of ShareWave ($14.4
million), LuxSonor ($8.6 million) and Stream Machine ($6.4 million).
Pro Forma research and development expense also excludes $4.0 million
related to the amortization of acquired intangible assets, $0.5
million related to the write-off of redundant or unused equipment and
software and $0.4 million related to acquisition bonus and deferred
compensation expense. Q2 FY'02 -- Pro Forma research and development
expense excludes $1.2 million related to the amortization of acquired
intangible assets and a $0.7 million charge to write-off a license
related to the magnetic storage product line. Q3 FY'01 -- Pro Forma
research and development expense excludes $0.9 million related to the
amortization of acquired intangible assets.
(Note 3) Q3 FY'02 -- Pro Forma selling, general and administrative
expense excludes $1.9 million related to the write-off of a module of
our enterprise resource planning software that we no longer plan to
use and $0.3 million related to acquisition bonus and deferred
compensation expense. Q2 FY'02 -- Pro Forma selling, general and
administrative expense excludes $0.7 million related to merger and
acquisition activities as well as $0.2 million related to legal costs
associated with non-core products.
(Note 4) Q3 FY'02 -- Pro Forma restructuring costs and other
(gains) excludes $5.5 million related to workforce reductions and
costs associated with consolidation of our facilities.
(Note 5) Q3 FY'01 -- Pro Forma realized gain on sale of marketable
equity securities excludes a gain of $3.0 million related to the sale
of call options in Openwave Systems Inc. common stock (formerly known
as Phone.com).
(Note 6) Q3 FY'02 -- Pro Forma other income (expense) excludes
$1.0 million related to write-offs and write-downs of investments in
private companies. Q3 FY'01 -- Pro Forma other income (expense)
excludes a $0.5 million write-off of an investment in a private
company.
(Note 7) Q3 FY'02 -- Pro Forma provision for taxes is a $1.9
million benefit resulting from reclaiming a portion of the FY'01 Pro
Forma tax expense. Q3 FY'01 -- Pro Forma provision for taxes differs
from the GAAP provision for taxes by the tax effect of the Pro Forma
adjustments.
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Quarter Ended
-------------------------------------
Dec. 29, Sept. 29, Dec. 30,
2001 2001 2000
----------- ----------- -----------
Net sales $ 76,971 $ 77,276 $ 207,998
Costs and expenses:
Cost of sales (Note 1) 70,656 46,584 124,760
Research and development
(Note 2) 61,540 26,993 33,905
Selling, general and
administrative (Note 3) 24,120 22,403 27,155
Restructuring costs and other
(gains) (Note 4) 5,461 -- --
----------- ----------- -----------
Total costs and expenses 161,777 95,980 185,820
Income (loss) from operations (84,806) (18,704) 22,178
Realized gain on sale of
marketable equity securities
(Note 5) -- -- 3,020
Interest income and (expense),
net 939 1,420 3,263
Other income (expense), net
(Note 6) (1,544) 280 (1,833)
----------- ----------- -----------
Income (loss) before provision
for income taxes (85,411) (17,004) 26,628
Provision for income taxes
(Note 7) -- -- 2,572
Minority interest in (income)
loss of eMicro 44 84 (179)
----------- ----------- -----------
Net income (loss) $ (85,367) $ (16,920) $ 23,877
=========== =========== ===========
Basic income (loss) per share $ (1.08) $ (0.23) $ 0.32
=========== =========== ===========
Diluted income (loss) per
share $ (1.08) $ (0.23) $ 0.30
============ =========== ===========
Weighted average common shares
outstanding:
Basic 79,207 74,000 75,127
Diluted 79,207 74,000 80,388
See notes to Pro Forma Consolidated Condensed Statement of Operations
CIRRUS LOGIC INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
(not prepared in accordance with GAAP)
Year to Date
-------------------------
Dec. 29, Dec. 30,
2001 2000
----------- -----------
Net sales (Note 1) $ 333,919 $ 568,313
Costs and expenses:
Cost of sales (Note 2) 214,733 337,623
Research and development (Note 3) 80,142 95,783
Selling, general and administrative (Note 4) 68,915 81,222
Restructuring costs and other (gains) (Note 5) -- --
--------- ---------
Total costs and expenses 363,790 514,628
Income (loss) from operations (29,871) 53,685
Realized gain on sale of marketable equity
securities (Note 6) -- --
Interest income and (expense), net (Note 7) 5,217 1,027
Other income (expense), net (Note 8) 185 (651)
--------- ---------
Income (loss) before provision for income
taxes (24,469) 54,061
Provision (benefit) for income taxes (Note 9) (1,926) 5,423
Minority interest in loss of eMicro 400 45
--------- ---------
Income (loss) before accounting change and
extraordinary gain (22,143) 48,683
Cumulative effect of change in accounting
principle (Note 10) -- --
Extraordinary gain, net of tax (Note 11) -- --
--------- ---------
Net income (loss) $ (22,143) $ 48,683
========= =========
Basic income (loss) per share:
Before accounting change and extraordinary
gain $ (0.29) $ 0.70
Accounting change -- --
Extraordinary gain -- --
--------- ---------
Basic $ (0.29) $ 0.70
========= =========
Diluted income (loss) per share:
Before accounting change and extraordinary
gain $ (0.29) $ 0.66
Accounting change -- --
Extraordinary gain -- --
--------- ---------
Diluted (Note 12) $ (0.29) $ 0.66
========= =========
Weighted average common shares outstanding:
Basic 75,820 69,142
Diluted (Note 12) 75,820 74,024
See notes to Pro Forma Consolidated Condensed Statement of Operations
CIRRUS LOGIC INC.
NOTES TO PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited - year-to-date)
The following non-recurring or unusual items have been excluded
from the historical financial results for this pro forma presentation:
(Note 1) FY'02 -- Revenue includes $9.6 million related to
non-recurring revenue in Q1. FY'01 -- Pro Forma revenue was reduced by
$10.6 million related to accounting changes implemented in Q1.
(Note 2) FY'02 -- Pro Forma cost of sales excludes $61.5 million
in inventory charges associated with the restructuring and the exit
from our magnetic storage product line. FY'01 -- Pro Forma cost of
sales was reduced by $5.5 million related to accounting changes
implemented in Q1.
(Note 3) FY'02 -- Pro Forma research and development expense
excludes $31.3 million related to the write-off of in-process research
and development related to the acquisition of Peak Audio, ShareWave,
LuxSonor, and Stream Machine, $6.3 million related to the amortization
of acquired intangible assets, a $0.7 million Q2 charge to write-off a
license related to the magnetic storage product line, $0.5 million
related to the Q3 write-off of redundant or unused equipment and
software and $0.4 million related to acquisition bonus and deferred
compensation expense. FY'01 -- Pro Forma research and development
expense excludes $2.7 million related to the amortization of acquired
intangible assets and $1.0 million in compensation paid in Q2 in
connection with the acquisition of AudioLogic Inc.
(Note 4) FY'02 -- Pro Forma selling, general and administrative
expense excludes $1.9 million related to the Q3 write-off of a module
of our enterprise resource planning software that we no longer plan to
use, $0.7 million related to Q2 merger and acquisition activities,
$0.2 million related to Q2 legal costs associated with non-core
products and $0.3 million related to acquisition bonus and deferred
compensation expense. FY'01 -- Pro Forma selling, general and
administrative expense excludes $1.5 million in compensation paid in
Q2 in connection with the acquisition of AudioLogic Inc.
(Note 5) FY'02 -- Pro Forma restructuring costs and other (gains)
excludes $7.4 million related to Q1 and Q3 workforce reductions and
costs associated with consolidation of our facilities. FY'01 -- Pro
Forma restructuring costs and other (gains) excludes $1.8 million due
to the final resolution of the MiCRUS restructuring agreement in Q2
and restructuring gains of $12.5 million in Q1 related to the receipt
of payment for two previously reserved notes from Basis
Communications.
(Note 6) FY'02 -- The Pro Forma realized gain on sale of
marketable equity securities excludes a gain of $9.8 million related
to the sale of our interest in Basis Communications and $1.2 million
related to the sale of call options in Openwave Systems Inc. common
stock, both Q1 gains. FY'01 -- The Pro Forma realized gain on sale of
marketable equity securities excludes a Q1 gain of $78.5 million
related to the sale of marketable equity securities and a $6.0 million
gain related to the sale of call options in Openwave Systems Inc.
common stock.
(Note 7) FY'01 -- Pro Forma interest income and (expense), net
excludes $1.3 million of Q1 interest income related to interest
received on two previously reserved notes from Basis Communications.
(Note 8) FY'02 -- Pro Forma other income (expense) excludes $1.0
million related to Q3 write-offs and write-downs of investments in
private companies. FY'01 -- Pro Forma other income (expense) excludes
a Q3 $0.5 million write-off of an investment in a private company.
(Note 9) FY'02 -- Pro Forma provision for taxes is a $1.9 million
benefit resulting from reclaiming a portion of the FY'01 Pro Forma tax
expense. FY'01 -- Pro Forma provision for taxes differs from the GAAP
provision for taxes by the tax effect of the Pro Forma adjustments.
(Note 10) FY'01 -- During Q1, Cirrus Logic adopted the Securities
and Exchange Commission's Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements," resulting in a $1.7 million
cumulative effect of change in accounting principle, which is excluded
from the Pro Forma financial statement presentation.
(Note 11) FY'01 -- During Q1, Cirrus Logic recognized an
extraordinary gain of $2.5 million related to the early retirement of
$28.1 million par value of our 6% convertible notes. The Pro Forma
financial statement presentation excludes the extraordinary gain.
(Note 12) FY'01 -- Diluted earnings per share for the first nine
months of $1.82 includes an adjustment to increase net income by $11.0
million and diluted shares by 8.5 million, which is the quarterly
after-tax interest savings and shares which would have been issued in
connection with the convertible debt. Pro Forma diluted earnings per
share for the first nine months of $0.66 does not include these
adjustments as they are anti-dilutive.
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Year to Date
-----------------------
Dec. 29, Dec. 30,
2001 2000
---------- ----------
Net sales (Note 1) $ 333,919 $ 578,948
Costs and expenses:
Cost of sales (Note 2) 276,238 343,172
Research and development (Note 3) 119,360 99,494
Selling, general and administrative (Note 4) 71,971 82,722
Restructuring costs and other (gains) (Note 5) 7,379 (14,362)
--------- ---------
Total costs and expenses 474,948 511,026
Income (loss) from operations (141,029) 67,922
Realized gain on sale of marketable equity
securities (Note 6) 10,968 84,564
Interest income and (expense), net (Note 7) 5,217 2,277
Other income (expense), net (Note 8) (840) (1,152)
--------- ---------
Income (loss) before provision for income
taxes (125,684) 153,611
Provision for income taxes (Note 9) -- 15,207
Minority interest in loss of eMicro 400 45
--------- ---------
Income (loss) before accounting change and
extraordinary gain (125,284) 138,449
Cumulative effect of change in accounting
principle (Note 10) -- (1,707)
Extraordinary gain, net of tax (Note 11) -- 2,482
--------- ---------
Net income (loss) $(125,284) $ 139,224
========= =========
Basic income (loss) per share:
Before accounting change and extraordinary
gain $ (1.65) $ 2.00
Accounting change -- (0.02)
Extraordinary gain -- 0.04
--------- ---------
Basic $ (1.65) $ 2.01
========= =========
Diluted income (loss) per share:
Before accounting change and extraordinary
gain $ (1.65) $ 1.81
Accounting change -- (0.02)
Extraordinary gain -- 0.03
--------- ---------
Diluted (Note 12) $ (1.65) $ 1.82
========= =========
Weighted average common shares outstanding:
Basic 75,820 69,142
Diluted (Note 12) 75,820 82,516
See notes to Pro Forma Consolidated Condensed Statement of Operations
CIRRUS LOGIC INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
(in thousands)
Dec. 29, Sept. 29, Dec. 30,
2001 2001 2000
----------- ----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 136,880 $ 166,757 $ 254,070
Restricted cash 12,293 10,000 11,008
Marketable equity securities 3,297 4,097 15,506
Accounts receivable, net 112,346 107,522 122,225
Inventories, net 31,511 61,489 113,501
Other current assets 20,029 20,858 24,585
----------- ----------- -----------
316,356 370,723 540,895
Property and equipment, net 29,085 31,009 34,171
Deposits and other assets 210,550 38,275 34,349
----------- ----------- -----------
$ 555,991 $ 440,007 $ 609,415
=========== =========== ===========
LIABILITIES AND SHAREHOLDER EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 80,522 $ 65,074 $ 121,775
Current maturities of long
term debt and capital lease
obligations 739 -- 3,825
Income taxes payable 40,409 40,628 56,253
----------- ----------- -----------
121,670 105,702 181,853
Long term obligations 2,890 3,198 5,287
Minority interest in eMicro 1,303 1,347 1,955
Net shareholder equity:
Capital stock 852,690 665,874 698,050
Accumulated other
comprehensive income 1,342 2,423 14,047
Accumulated deficit (423,904) (338,537) (291,777)
----------- ----------- -----------
430,128 329,760 420,320
----------- ----------- -----------
$ 555,991 $ 440,007 $ 609,415
=========== =========== ===========
Contact: Cirrus Logic Inc., Austin
Craig Ensley, 512/912-3204
invest@corp.cirrus.com
or
Stapleton Communications Inc.
Mary McGowan, 650/470-0200
mary@stapleton.com
|
|
|
|
All content, design and work is ©
2001 - 3D Sound Surge Please respect the copyrights of the articles and writers herein. All copyrights are enforced by 3DSS.