Cirrus Logic Reports Fiscal Q1 2008 Financial Results
AUSTIN, Texas--Cirrus Logic Inc. , a leader in high-precision analog and digital signal processing components, today announced financial results for the first quarter fiscal year 2008, which ended June 30, 2007.
The company reported first quarter fiscal year 2008 revenue of $41.1 million, compared with $45.2 million during the first quarter of fiscal year 2007. First quarter gross margin was 59.2 percent compared to 60.1 percent for the first quarter of fiscal year 2007. Combined research and development (R&D) and selling, general and administrative (SG&A) expenses for the quarter were $23.9 million. R&D and SG&A expenses included $1.5 million in stock-based compensation expense, as well as $0.5 million in expenses associated with the company’s recently concluded stock-option review.
Total cash and marketable securities at the end of the first fiscal quarter was $277.6 million, compared with $271.7 million at the end of the prior fiscal quarter, an increase of $5.9 million.
“While June quarter revenue reflects weak demand for older products, I am pleased to see a stronger mix of new customers and new products reflected in our backlog for the September quarter, particularly in portable audio and automotive products,” said Jason Rhode, Cirrus Logic president and chief executive officer.
Outlook for Second Quarter FY 2008 (ending September 29, 2007), including the recently completed Apex Microtechnology acquisition:
- Revenue is expected to range between $46 million and $51 million;
- Gross margin is expected to be between 58 percent and 60 percent; and
- Combined GAAP R&D and SG&A expenses are expected to range between $25 million and $27 million, including share-based compensation expense of approximately $1.6 million.
Conference Call
Cirrus Logic management will hold a conference call to discuss the company’s results for the first quarter of fiscal year 2008, on July 25, 2007, at 5:00 p.m. EDT. Those wishing to join should call 303-262-2190 (passcode: Cirrus Logic) at approximately 4:50 p.m. EDT. A replay of the conference call will also be available beginning one hour after the completion of the call, until Aug. 1, 2007. To access the recording, call 303-590-3000 (passcode: 11093466#). A live and an archived webcast of the conference call will also be available via the company’s Web site at www.cirrus.com.
Cirrus Logic, Inc.
Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of consumer and industrial markets. Building on its diverse analog mixed-signal patent portfolio, Cirrus Logic delivers highly optimized products for consumer and commercial audio, automotive entertainment, industrial and aerospace applications. The company operates from headquarters in Austin, Texas, with offices in Tucson, Ariz., Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements, including our estimates of second quarter fiscal year 2008 revenue, gross margin, combined research and development and selling, general and administrative expense levels, and share-based compensation expense. In some cases, forward-looking statements are identified by words such as we “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “estimates,” and “intend,” variations of these types of words and similar expressions are intended to identify these forward-looking statements. In addition, any statements that refer to our plans, expectations, strategies or other characterizations of future events or circumstances are forward-looking statements. 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. These risks and uncertainties include, but are not limited to, the following: our ability to successfully integrate our recent acquisitions into our business; overall conditions in the semiconductor 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; the level of orders and shipments during the second quarter of fiscal year 2008, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; overall economic pressures; pricing pressures; hardware or software deficiencies; our dependence on subcontractors for assembly, manufacturing, packaging and testing functions; our ability to make continued sufficient investments in research and development; foreign currency fluctuations; the retention of key employees; expenses associated with the Company’s stock option investigation, and related on-going litigation and administrative proceedings; and the risk factors listed in our Form 10-K for the year ended March 31, 2007, and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. 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.
Summary financial data follows:
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CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED BALANCE SHEET (in thousands) |
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Jun. 30, 2007 |
Mar. 31, 2007 |
Jun. 24, 2006 |
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| ASSETS | (unaudited) | (unaudited) | |||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 97,566 | $ | 87,960 | $ | 103,053 | |||||
| Restricted investments | 5,755 | 5,755 | 5,755 | ||||||||
| Marketable securities | 174,242 | 178,000 | 137,123 | ||||||||
| Accounts receivable, net | 19,428 | 19,127 | 21,518 | ||||||||
| Inventories | 17,512 | 16,496 | 21,391 | ||||||||
| Other current assets | 14,138 | 13,699 | 5,634 | ||||||||
| Total Current Assets | 328,641 | 321,037 | 294,474 | ||||||||
| Long-term marketable securities | - | - | 5,972 | ||||||||
| Property and equipment, net | 10,508 | 11,407 | 13,263 | ||||||||
| Intangibles, net | 11,246 | 8,550 | 2,593 | ||||||||
| Goodwill | 6,461 | 6,461 | - | ||||||||
| Investment in Magnum Semiconductor | 3,657 | 3,657 | 7,947 | ||||||||
| Other assets | 1,900 | 1,948 | 3,293 | ||||||||
| Total Assets | $ | 362,413 | $ | 353,060 | $ | 327,542 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 11,643 | $ | 10,434 | $ | 11,943 | |||||
| Accrued salaries and benefits | 6,565 | 7,816 | 6,813 | ||||||||
| Other accrued liabilities | 9,890 | 10,519 | 9,704 | ||||||||
| Deferred income on shipments to distributors | 5,362 | 4,290 | 6,199 | ||||||||
| Income taxes payable | 6 | 1,561 | 1,990 | ||||||||
| Total Current Liabilities | 33,466 | 34,620 | 36,649 | ||||||||
| Long-term restructuring accrual | 2,995 | 3,418 | 4,469 | ||||||||
| Other long-term obligations | 9,664 | 10,085 | 9,536 | ||||||||
| Stockholders' equity: | |||||||||||
| Capital stock | 932,689 | 926,900 | 919,339 | ||||||||
| Accumulated deficit | (615,616) | (621,180) | (641,250) | ||||||||
| Accumulated other comprehensive loss | (785) | (783) | (1,201) | ||||||||
| Total Stockholders' Equity | 316,288 | 304,937 | 276,888 | ||||||||
| Total Liabilities and Stockholders' Equity | $ | 362,413 | $ | 353,060 | $ | 327,542 | |||||
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Prepared in accordance with Generally Accepted Accounting Principles |
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CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (unaudited) (in thousands, except per share data) |
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| Quarter Ended | |||||||||
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Jun. 30, 2007 |
Mar. 31, 2007 |
Jun. 24, 2006 |
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| Net revenue | $ | 41,124 | $ | 43,647 | $ | 45,181 | |||
| Cost of sales | 16,759 | 17,369 | 18,021 | ||||||
| Gross Margin | 24,365 | 26,278 | 27,160 | ||||||
| Gross Margin Percentage | 59.2% | 60.2% | 60.1% | ||||||
| Operating expenses: | |||||||||
| Research and development | 10,913 | 10,998 | 11,670 | ||||||
| Selling, general and administrative | 12,981 | 14,797 | 11,091 | ||||||
| Restructuring and other costs | - | 521 | - | ||||||
| Impairment of goodwill and other intangibles | - | 4,290 | - | ||||||
| Acquired in process R&D | - | - | - | ||||||
| License agreement | - | - | - | ||||||
| Total operating expenses | 23,894 | 30,606 | 22,761 | ||||||
| Income (loss) from operations | 471 | (4,328) | 4,399 | ||||||
| Realized gain on marketable equity securities | - | - | 193 | ||||||
| Interest income, net | 3,507 | 3,412 | 2,965 | ||||||
| Other income (expense), net | 26 | 71 | 55 | ||||||
| Income (loss) before income taxes | 4,004 | (845) | 7,612 | ||||||
| Provision (benefit) for income taxes | 15 | (8,124) | (213) | ||||||
| Net income | $ | 3,989 |
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$ | 7,279 | $ | 7,825 | ||
| Basic income per share: | $ | 0.05 | $ | 0.08 | $ | 0.09 | |||
| Diluted income per share: | $ | 0.04 | $ | 0.08 | $ | 0.09 | |||
| Basic weighted average common shares outstanding | 88,490 | 88,076 | 87,196 | ||||||
| Diluted weighted average common shares outstanding | 89,669 | 89,333 | 88,759 | ||||||
| Prepared in accordance with Generally Accepted Accounting Principles | |||||||||