Net sales for the final quarter of 1995 were $39 million, down from the fourth quarter 1994 net sales of $73 million by 47 percent as demand and pricing for 486 products decreased substantially. Cyrix posted a net loss of $9.9 million for the fourth quarter of 1995. On a per-share basis, Cyrix recorded a loss in the fourth quarter 1995 of $0.49 compared to a net income of $0.63 in fourth quarter 1994. Although the loss put Cyrix into default of covenants contained in its credit agreements, waivers have been obtained from each of the creditors.
"While our financial performance in 1995 failed to reflect growth over the previous year, the introduction of two wholly original microprocessor architectures by Cyrix was a first for the industry," said Jerry Rogers, Cyrix president and chief executive officer. "With the introduction of the 5x86™ in July and the 6x86™ in October, Cyrix became the only viable alternative to Intel in the x86 marketplace and demonstrated its preeminence in the design of original, fully-compatible processors. Our challenge in 1996 is to produce and sell as many 6x86 processors as possible and to expand our customer base," Rogers said.
Cyrix Corporation, headquartered in Richardson, Texas, is a leading supplier of high-performance processors to the personal computer industry. Founded in 1988, the Company designs, manufactures and markets innovative, x86 software-compatible processors for the desktop and mobile computer markets. Cyrix is a publicly-held company traded on NASDAQ. Forward-looking statements involve risks relative to market demand and acceptance, the impact of changing economic conditions, the impact of market peers and their products as well as risks concerning future technology and others detailed in the Company's Securities and Exchange Commission filings. These filings can be obtained by contacting Cyrix Investor Relations.
December 31, December 31,
1995 1994
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Assets
Cash, cash equivalents and investments $ 44,334 $ 59,241
Accounts receivable, net 44,727 41,995
Inventories 12,274 18,477
Deferred taxes and other assets 27,644 12,455
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Total current assets 128,979 132,168
Net property and equipment 98,307 38,047
Prepayments for product purchases,
less current portion 40,697 23,330
Deferred taxes and other assets 802 2,589
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Total assets $ 268,785 $ 196,134
=============================
Liabilities and Stockholders' Equity
Accounts payable $ 15,239 $ 27,180
Deferred income and distributor reserves 15,526 4,558
Income taxes payable 536 2,644
Current maturities of long-term debt and
capitalized lease obligations 20,053 4,544
Deferred litigation settlement -- 5,000
Other accrued expenses 9,113 8,227
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Current liabilities 60,467 52,153
Long-term debt, less current maturities 62,325 18,253
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Total liabilities 122,792 70,406
Stockholders' equity 145,993 125,728
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Total liabilities and stockholders' equity $ 268,785 $ 196,134
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Quarter ended Dec. 31, Year ended Dec. 31,
1995 1994 1995 1994
---------------------- ----------------------
Net sales $ 36,415 $ 73,024 $ 210,294 $ 246,098
Royalty revenue 2,644 -- 17,718 --
---------------------- ----------------------
Net revenues 39,059 73,024 228,012 246,098
Cost of sales 36,101 36,491 142,063 120,721
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Gross margin 2,958 36,533 85,949 125,377
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Marketing, general and administrative 9,963 11,037 39,099 44,858
Research and development 7,235 6,275 29,115 24,755
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Total operating expenses 17,198 17,312 68,214 69,613
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Income from operations (14,240) 19,221 17,735 55,764
Income from litigation settlement -- -- 10,000 500
Net interest income (expense) (1,388) 277 (3,959) 1,134
---------------------- ----------------------
Income before taxes (15,628) 19,498 23,776 57,398
Taxes on income (5,704) 6,833 8,164 19,821
---------------------- ----------------------
Net income $ (9,924) $ 12,665 $ 15,612 $ 37,577
====================== ======================
Net income per common and common
equivalent share $(0.49) $0.63 $0.78 $1.88
====================== ======================
Weighted average common and common
equivalent shares outstanding 20,212 20,031 19,985 19,986
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