AUSTIN, Texas – July 23, 2003 – Cirrus Logic, Inc. (Nasdaq: CRUS), today announced financial results in line with its April 30, 2003 guidance for the first quarter of fiscal 2004, ended June 28, 2003.
The company reported first quarter revenue of $40.7 million, down 22 percent from $52.1 million reported in the fourth quarter. First quarter gross margin was 48.5 percent, down from 50.6 percent in the fourth quarter. First quarter combined research and development and selling, general and administrative expenses were $33.2 million, down $1.6 million from $34.8 million in the prior quarter.
In the first quarter, the company incurred a charge of $7.6 million for restructuring and other related costs primarily relating to facility consolidations in Texas and California. Including this charge, the first quarter net loss was $24.3 million, compared with a net loss of $152.8 million in the fourth quarter; net loss per share was $0.29, compared with a net loss per share of $1.82 in the prior quarter.
Total cash at the end of the first quarter was $115.5 million, in line with the company's guidance. Total cash at the end of the fourth quarter was $122.8 million.
"Overall business conditions are improving, and we have greater visibility than we had at this time last quarter," said David D. French, president and CEO of Cirrus Logic, Inc. "Demand for our audio products is increasing as distributors and retailers begin to replenish and seasonally build their inventory levels, and as our OEM customers introduce new audio models. We are also seeing increased demand for our video products and are actively engaged with a number of customers in the DVD and hard disk drive-based digital video recording markets with our high-performance CS98200 decoder family and CS92288 encoder product. Video recording customer design wins include Apex, BBK, Digitech, Mustek, Sampo, Samsung, Sony and others. These video recording products are expected to be in production or on retail shelves by this holiday season."
The company also recently announced that it entered into a strategic relationship with ChipPAC to outsource Cirrus' test operations. This new relationship is expected to provide Cirrus with annual savings of $6 million to $8 million beginning in calendar year 2004.
Outlook and Guidance
"While we are encouraged by the increased level of orders we are seeing so far, and by our prospects for revenue growth, we remain cautious regarding the condition of the overall economy and consumer spending in particular for the remainder of the year," said French.
Second Quarter FY04 (ending Sept. 27, 2003)
Conference Call
Cirrus Logic management will hold a conference call to discuss these results today, July 23, at 4 p.m. Central Time. Those wishing to join should dial (617) 801-9702 (pass code: Cirrus Logic) at approximately 3:50 p.m. Central Time. A replay of the call will be available starting one hour after the completion of the call until July 30, 2003. To access the replay, dial (617) 801-6888 (pass code: 80339901). A live webcast of the conference call will also be available.
Upcoming Investor Conferences
Cirrus Logic management will be presenting at the Adams Harkness & Hill Summer Seminar in Boston on Aug. 6 at 11:30 a.m. Eastern Time, the Soundview Technology Group Investment Conference in San Francisco at 11:00 a.m. on Aug. 14 Pacific Time, and the SG Cowen Fall Technology Conference in Boston on Sept. 3 at 3:00 p.m. Eastern Time. Those wishing to listen to management's presentation can hear a live and/or an archived webcast via the company's Web site.
Cirrus Logic, Inc.
Cirrus Logic is a premier supplier of high-performance analog, mixed-signal and digital processing solutions for consumer entertainment electronics, automotive entertainment and industrial product applications. Building on its global market leadership in audio ICs and its rich mixed-signal patent portfolio, Cirrus Logic targets audio, video and precision mixed-signal applications in these growing markets. The company operates from headquarters in Austin, Texas, with offices in California, Colorado, Europe, Japan and Asia.
Safe Harbor Statement
Except for historical information contained herein, the matters set forth in this news release, including our estimates of second fiscal quarter revenues, research and development and selling, general and administrative expense levels, gross margin and cash levels, and expectations regarding our revenue growth opportunities, including the introduction of new products by other companies containing our components during the second half of fiscal 2004, are forward-looking statements that are subject to certain risks and uncertainties including such factors, among others, as overall conditions in the semiconductor market; the expansion of the consumer digital entertainment electronics market; our ability to successfully realize the benefits of our acquisitions; 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 fiscal quarter of 2004, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; pricing pressures; hardware or software deficiencies; a shortage of manufacturing capacity; our ability to make continued substantial investments in research and development; the retention of key employees; the impact of restructuring and other costs, such as work force reductions and facility consolidations; asset impairment charges; and the risk factors listed in our Form 10-K for the year ended March 29, 2003, and in other filings with the Securities and Exchange Commission. 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, except as required by law.
Cirrus Logic and Cirrus are trademarks of Cirrus Logic, Inc. All other product names noted herein may be trademarks of their respective holders.
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Thurman Case Chief Financial Officer (512) 851-4125 |
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