AUSTIN, Texas – Apr. 26, 2006 – Cirrus Logic Inc. (Nasdaq: CRUS), a leader in high-precision analog, mixed-signal and embedded products for audio and industrial markets, today announced financial results for the fourth quarter and fiscal year 2006, which ended March 25, 2006.
The company reported fourth quarter fiscal year 2006 revenue of $42.2 million, compared with $40.4 million of total revenue and $36.8 million of analog, mixed-signal and embedded products in the same period one year ago. This represents 15 percent growth among the analog, mixed-signal and embedded products on a comparable basis from the prior year. Fourth quarter gross margin was 58.1 percent compared to 53.1 percent for the fourth quarter of fiscal year 2005. Combined research and development (R&D) and selling, general and administrative (SG&A) expenses for the fourth fiscal quarter of 2006 were $19.8 million.
Net income for the fourth fiscal quarter was $15.4 million, or $0.17 per diluted share. Fourth fiscal quarter results included a one-time $7.0 million gain associated with amendments to an existing licensing agreement and a $1.2 million benefit from certain international tax-related events. Non-GAAP net income, excluding the income associated with the licensing agreement amendment and international tax-related events for the fourth fiscal quarter, was $7.2 million or $0.08 per diluted share.
Total cash and marketable securities at the end of the fourth fiscal quarter was $243.5 million, compared with $179.7 million at the end of the prior fiscal year, which is an increase of $63.8 million.
“I am pleased with our fourth-quarter results, as we delivered strong earnings with expanding gross margins and year-over-year growth, in what has been historically our seasonally weakest quarter,” said David D. French, president and chief executive officer, Cirrus Logic. “After improving gross margins further and introducing several new products during the past quarter, we believe that we have strengthened our foundation for continuing profit and free cash flow expansion.”
Outlook for First Quarter FY 2007 (ending June 24, 2006):
Use of Non-GAAP Financial Information
Cirrus Logic has included in this release certain financial information that has not been prepared in accordance with GAAP. A reconciliation of such non-GAAP financial information to the most directly comparable GAAP information is included in the financial statements portion of this release, as well as on our Web site in the Investors section at www.cirrus.com. This non-GAAP financial information is not meant as a substitute for the company’s GAAP results, but is included solely for informational and comparative purposes. Cirrus Logic management believes that certain non-GAAP financial information is useful to investors because it can enhance their understanding of the results and trends in the company’s business, and therefore uses this non-GAAP financial information internally to evaluate and manage the company’s operations. The non-GAAP financial information that the company uses may differ from that used by other companies. This non-GAAP financial information should be considered in addition to, and not as a substitute for, the company’s results that were prepared in accordance with GAAP.
Conference Call
Cirrus Logic management will hold a conference call to discuss the company’s results for the fourth quarter and full year of fiscal year 2006, on April 26, 2006, at 5:00 p.m. EDT. Those wishing to join should call (303) 262-2137 (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 May 3, 2006. To access the recording, call (303) 590-3000 (passcode: 11056613 #). A live and an archived webcast of the conference call will also be available.
Upcoming Conferences
Cirrus Logic management will be presenting at the following conferences:
Those wishing to listen to these presentations can hear live and archived webcasts of the events.
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 and industrial applications. The company operates from headquarters in Austin, Texas, with offices in Colorado, Europe, Japan and Asia.
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 first quarter fiscal year 2007 sales, gross margin, combined research and development and selling, general and administrative expense levels, share-base compensation expense, and expectations regarding our revenue growth and fiscal year 2007 results. In some cases, forward-looking statements are identified by words such as we “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “estimates,” and “intend,” and 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: 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 first quarter of fiscal year 2007, 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; and the risk factors listed in our Form 10-K for the year ended March 26, 2005, 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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Thurman Case Chief Financial Officer (512) 851-4125 |
Mary McGowan Summit IR Group (408) 404-5401 |
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