AUSTIN, Texas – May 1, 2008 – Cirrus Logic Inc. (Nasdaq: CRUS), a leader in high-precision analog and digital signal processing components, today announced financial results for the fourth quarter fiscal year 2008, which ended March 29, 2008.
[Summary financial data appears below.]
The company reported fourth quarter fiscal year 2008 revenue of $44.8 million, compared with $43.6 million during the fourth quarter of fiscal year 2007 and $48.9 million in the previous quarter. In the fourth quarter, Cirrus Logic reported a GAAP net loss of $13.7 million, or $0.16 per share. Excluding several one-time charges primarily associated with the closing of Caretta Integrated Circuits (Caretta), a subsidiary based in Shanghai, as well as other items including stock option expenses, non-GAAP net income was $5.2 million, or $0.06 per share, based on 85.6 million average diluted shares.
Gross margin for the quarter was 55 percent compared with 56 percent in the previous quarter, and 60 percent for the fourth quarter of fiscal year 2007. Excluding the net effect of certain charges associated with the closure of Caretta, non-GAAP gross margin for the quarter was 57 percent.
Total GAAP operating expenses for the quarter were $37.7 million, while non-GAAP operating expenses were $22.7 million. Non-GAAP operating expenses exclude $15 million of adjustments, related to the following charges:
Additionally, the company recorded $3 million in net charges related to various deferred tax assets.
Information about Cirrus Logic’s use of non-GAAP financial information is provided under "Use of non-GAAP Financial Information" below.
Total cash and marketable securities at the end of the fourth fiscal quarter was $187 million, compared with $252 million at the end of the prior fiscal quarter. During the fourth quarter the company completed share repurchases totaling $71.1 million out of the $150 million share repurchase program announced on January 30, 2008. The program was subsequently completed on April 28, 2008, with a total of 24.5 million shares repurchased at an average price of $6.11.
“In FY ’08 we undertook significant actions to fundamentally strengthen the company. We’ve revitalized the senior leadership team, hired key engineering talent while controlling operating expenses, delivered promising revenue growth from our portable product line, and developed a compelling strategic plan, which has the full support of management and our board of directors. We also initiated a share repurchase plan in January, which is now complete,” said Jason Rhode, president and chief executive officer. “We’ve seen strong design win activity for our new products, and I am excited about our opportunity for growth in FY ’09 as new designs ramp in the fall.”
Outlook for First Quarter FY 2009 (ending June 28, 2008):
Conference Call
Cirrus Logic management will hold a conference call to discuss the company’s results for the fourth quarter of fiscal year 2008, on May 1, 2008, at 5:00 p.m. EDT. Those wishing to join should call (303) 205-0066 (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 8, 2008. To access the recording, call (303) 590-3000 (passcode: 11112112#). A live and an archived webcast of the conference call will also be available.
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 and signal-processing patent portfolio, Cirrus Logic delivers highly optimized products for consumer and commercial audio, automotive entertainment, and industrial and aerospace applications. The company operates from headquarters in Austin, Texas, with offices in Tucson, Ariz., Europe, Japan and Asia.
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Use of Non-GAAP Financial Information
To supplement Cirrus Logic’s financial statements presented on a GAAP basis, Cirrus has provided non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net earnings, and non-GAAP diluted earnings per share. A reconciliation of the adjustments to GAAP results for this quarter is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.
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 2009 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 “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “opportunity,” “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 first quarter of fiscal year 2009, as well as customer cancellations of orders, or the failure to place orders consistent with forecasts; overall economic pressures; general market and economic conditions; 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 on-going litigation related to the Company’s stock option program; and the risk factors listed in our Form 10-K for the year ended March 31, 2007, as updated on Jan. 25, 2008 in our Quarterly Report on Form 10-Q for the fiscal quarter ended Dec. 29, 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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Thurman Case Chief Financial Officer (512) 851-4125 |
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