Cirrus Logic Reports Fourth Quarter and Fiscal 2000 Results; Achieves Third Successive Quarter of Revenue Growth and Profit Improvements - Company Financial Information

Edge: Work-Group Computing Report, May 1, 2000

Cirrus Logic Inc. (Nasdaq:CRUS) Wednesday announced financial results for the fourth quarter of fiscal 2000, which ended March 25, 2000. Net revenues for the fourth quarter grew sequentially to $160.2 million, compared to $150.8 million in the prior quarter. Net income for the fourth quarter was $62.1 million and earnings per share was $0.99 on basic shares outstanding, and $0.82 on a diluted basis. For the year, net revenues were $564.4 million compared to $628.1 million for the previous year. The company's fiscal 2000 net loss per share was $0.77 compared to a net loss per share of $6.77 reported in fiscal 1999.

Included in fourth quarter net income are gains of $42.5 million on the sale of a portion of the marketable securities of Phone.com Inc. (Nasdaq:PHCM), and $15.7 million from the sale of its interest in Ambient Technologies to Intel. On a pro forma basis, income from operations, before net interest expense, would be approximately $6.3 million. Pro forma income from operations excludes certain non-recurring items such as net restructuring credits, the amortization of acquired intangible assets, and asset abandonment charges. On a pro forma basis, after net interest expense, basic earnings per share for the fourth quarter would be approximately $0.06, and diluted earnings per share for the fourth quarter would be approximately $0.05.

"We have now logged three consecutive quarters of increasing revenue and profit improvement," said David D. French, president and chief executive officer. He noted that fiscal Q4 revenue growth was driven by robust demand for chip solutions addressing consumer and Internet audio, magnetic and optical storage, and embedded Ethernet communications applications, partially offset by a slowdown in the computer audio business. "Over the course of fiscal 2000, we established a unified strategy to become the leader in entertainment electronics for the Internet Age. We also expanded upon the strengths in each of our core businesses and fully transitioned to a fabless manufacturing model."

French confirmed that a number of Cirrus Logic's strategic initiatives have begun to bear fruit during the fourth quarter. "We successfully ramped production of our Maverick technology for portable Internet audio players. We also ramped our 3Ci integration platform for hard disk drive electronics and secured our second major 3Ci customer. Further, we captured our first design win for voice-over-IP phones with our embedded Ethernet solution, which has won broad acceptance by manufacturers of high-speed Internet access units for residential gateways."

Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for Internet entertainment electronics. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal , Maverick, and 3Ci brands as well as its own name. Founded in 1984 in Silicon Valley, Cirrus Logic operates from headquarters in Austin, Texas and major sites located in Fremont, California and Broomfield, Colorado as well as offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.