Cirrus Logic Reports Fiscal Q3 Financial Results - ProSoundNetwork.com

Cirrus Logic Reports Fiscal Q3 Financial Results

Austin, TX (February 2, 2006)--Cirrus Logic has reported its financial results for the third quarter of fiscal year 2006, which ended December 24, 2005. The company reported third-quarter fiscal year 2006 revenue of $48.3 million compared with $44.0 million in the same period one year ago.
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Austin, TX (February 2, 2006)--Cirrus Logic has reported its financial results for the third quarter of fiscal year 2006, which ended December 24, 2005. The company reported third-quarter fiscal year 2006 revenue of $48.3 million compared with $44.0 million in the same period one year ago.

All revenue during the third fiscal quarter was analog, mixed-signal and embedded products-related. This represents year-over-year growth of 18 percent when compared to revenue of $40.9 million for the same period one year ago, which excludes the revenue related to the digital video-related products of $3.1 million. The second fiscal quarter revenue related to the analog, mixed-signal and embedded products was $48.3 million.

Third-quarter gross margin was 55.1 percent compared with 55.4 percent for the analog, mixed-signal and embedded products in the second quarter of fiscal year 2006. Combined research and development (R&D) and selling, general and administrative (SG&A) expenses for the third fiscal quarter were $21.2 million, compared with $26.4 million in the prior quarter. In the second fiscal quarter, R&D and SG&A expense included digital video-related spending of approximately $1.7 million as well as a $3.3 million contingency charge related to excess leased office space. Without these items, R&D and SG&A for the second fiscal quarter was $21.4 million.

Net income for the third fiscal quarter was $12.8 million, or $0.15 per diluted share. In the second quarter, the company reported a net loss of $99,000 or ($0.00) per diluted share. Third fiscal quarter results also included a one-time $5.3 million foreign tax benefit. The second fiscal quarter results also included a $2.3 million net restructuring charge primarily related to the sale of the digital video product line assets and a $207,000 foreign tax benefit. Net income excluding the foreign tax benefit for the third fiscal quarter was $7.6 million or $0.09 per diluted share, compared with net income of $6.8 million or $0.08 per diluted share in the second fiscal quarter, excluding the digital video related items, restructuring charges and the foreign tax benefit.

Total cash and marketable securities at the end of the third fiscal quarter was $233 million, compared with $225.1 million at the end of the prior fiscal quarter. Inventories were $17 million, approximately the same as at the end of the September quarter.

"The company has begun to deliver profitable year-over-year growth in our analog, mixed-signal and embedded products," said David D. French, president and CEO, Cirrus Logic. "We achieved 18 percent year-over-year growth in these product categories, we have a strong cash position, and the underlying fundamentals of the business are strong.

"As we look to our fourth fiscal quarter, we are forecasting continued strong year-over-year growth of our analog, mixed-signal and embedded product revenues between 12 and 22 percent," French continued. "However, we are cautious as the March quarter is traditionally our seasonally weakest quarter. Nevertheless, we expect a strong start to our fiscal year 2007 as we begin to build incremental inventory in preparation for a higher revenue run rate in Q1 FY 07."

Cirrus Logic
www.cirrus.com