7/25/2003 - Cirrus Logic, Inc. (Nasdaq: CRUS), 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)
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.
Cirrus Logic and Cirrus are trademarks of Cirrus Logic, Inc.
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