AUSTIN, Texas -- May 1, 2002 -- Cirrus Logic Inc. (Nasdaq: CRUS) today announced financial results for its fourth quarter and fiscal year 2002, ended March 30, 2002.
Fiscal fourth quarter revenue was $83.6 million, up nine percent over the $77.0 million reported for the prior quarter.
Pro forma net loss for fiscal Q4 was $10.0 million, versus the pro forma net loss of $15.1 million in the prior quarter. Pro forma loss per share was $0.12 on 83 million shares outstanding, compared with a pro forma loss per share of $0.19 on 79 million shares outstanding in the prior quarter.
Fourth quarter pro forma gross margins were 47 percent, up 600 basis points from the 41 percent gross margins the company reported in the third fiscal quarter. The significantly higher margins were primarily a result of improved wafer costs as well as a favorable product mix. Fourth quarter pro forma operating expenses were $50.7 million versus $49.1 million in Q3.
In accordance with generally accepted accounting principles (GAAP), fourth quarter net loss was $80.8 million, and the GAAP net loss per share was $0.98 on 83 million shares outstanding. As previously announced, included in the GAAP loss was a non-cash charge of $73.3 million to reserve disputed magnetic storage receivables from Western Digital and Fujitsu Ltd. If Cirrus is successful in collecting these receivables through the ongoing litigation, the company will record an equivalent reduction in GAAP operating expense. The company also took a $3.5 million non-cash charge for costs associated with consolidation of facilities, and a $6.8 million charge for amortization of intangibles and acquisition-related compensation. Partially offsetting these GAAP charges was a $12.9 million benefit from tax refunds and associated interest related to prior years. On a GAAP basis, gross margins were 48.5 percent.
Cash at the end of the fourth quarter was $153 million, compared with the $149 million cash balance at the end of Q3.
"We are pleased to report our third consecutive quarter of revenue increases in on-going businesses, and are especially proud of the 47 percent gross margins we achieved in Q4," said David D. French, president and CEO of Cirrus Logic. "We are entering the new fiscal year with a very healthy backlog, strong bookings and important design wins in areas key to our continued growth. I believe we can achieve pro forma profitability by the end of this calendar year.
"We have established meaningful market share in DVD video decoders, a remarkable achievement considering it has been only six months since we acquired that technology," he said.
"In the fourth quarter, we won designs with four of the top Chinese DVD manufacturers, and we have established a new Cirrus division in China, to focus our product development, marketing and sales efforts on achieving significant market share in that important region," Mr. French said.
In March, Cirrus began volume shipments of DVD optical controllers to a large manufacturer of consumer DVD player subsystems. In addition, the company said it is on track to launch a CD-based MP3 solution in the first quarter, which can be designed into end products in time for Christmas revenue opportunities. The company also recently began volume shipments for a production of a combination DVD player/video recorder, and has received its first orders for components at the heart of a new mainstream portable DVD player.
Highlights:
Fiscal 2002 Results
Revenue in fiscal 2002 totaled $417.5 million, of which $289.5 million resulted from ongoing businesses. Ongoing businesses exclude sales of products for magnetic hard disk drives, which the company exited in Q2 of fiscal 2002, and end of life product lines.
Pro forma net loss for fiscal 2002 was $32.2 million, or pro forma loss of $0.41 per share (basic and diluted) on 78 million shares outstanding.
In accordance with GAAP, fiscal 2002 net loss was $206.1 million. The GAAP net loss per share was $2.66 (basic and diluted).
Outlook and Guidance
First Quarter FY03 (ending June 2002)
Second Quarter FY03 (ending September 2002)
Third Quarter FY03 (ending December 2002)
The company expects GAAP charges that consist of acquisition-related amortization of intangibles and compensation charges to total approximately $6 million to $7 million each quarter for the remainder of fiscal 2003.
Conference Call
Cirrus Logic management will hold a conference call to discuss these results today, May 1, at 4 p.m. Central Time. Those wishing to join should dial (212) 287-1615, passcode "Cirrus Logic" at approximately 3:45 p.m. A live webcast of the conference call will also be available via the company’s website at www.cirrus.com. A replay of the call will be available starting one hour after the completion of the call until May 8, 2002. To access the replay, please dial (402) 998-0951.
About Cirrus Logic
Cirrus Logic is a 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, Colorado, as well as offices in 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 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, except as required by law.
Cirrus Logic is a trademark of Cirrus Logic Inc.
|
Thurman Case Chief Financial Officer (512) 851-4125 |
x
