EX-99.1 2 a5455996-ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 Cirrus Logic Reports Fiscal Q1 2008 Financial Results Cirrus Logic Forecasts Sequential Growth for the September Quarter AUSTIN, Texas--(BUSINESS WIRE)--July 25, 2007--Cirrus Logic Inc. (Nasdaq:CRUS), 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: CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED BALANCE SHEET (in thousands) Jun. 30, Mar. 31, Jun. 24, 2007 2007 2006 ----------- ---------- ----------- 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 =========== ========== =========== Prepared in accordance with Generally Accepted Accounting Principles CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (unaudited) (in thousands, except per share data) Quarter Ended ------------------------------ Jun. 30, Mar. 31, Jun. 24, 2007 2007 2006 --------- --------- ---------- 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 $ 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 CONTACT: Cirrus Logic, Inc., Austin Thurman K. Case, 512-851-4125 Chief Financial Officer InvestorRelations@cirrus.com