Cyrix Reports First Quarter Results
Company Returns To Profitability With Stronger Than Expected Results
Richardson, Texas -- April 16, 1997 -- Cyrix Corporation (NASDAQ: CYRX), a leading supplier of high-performance processors to the personal computer industry, today reported revenues for the quarter ended March 31, 1997 of $75.6 million, up 47 percent from the $51.6 million reported in the same period last year. Net income for the first quarter was $6.6 million, up from $2.0 million reported for the corresponding period last year. Earnings per share in the first quarter rose to 33 cents compared to 10 cents in the first quarter a year-ago, an increase of 230 percent.
Revenues for first quarter 1997 grew 5 percent sequentially from the fourth quarter of 1996 and gross margins also improved sequentially to 44 percent from 21 percent.
"Strong customer acceptance of our MediaGXTM and 6x86TM product offerings, higher gross margins and enhanced manufacturing efficiencies all contributed to the strong results for the quarter," said Jay Swent, Cyrix chief financial officer and acting chief executive officer. "Stronger than planned unit shipment performance at the end of the quarter helped us to exceed our profit goals. We improved our cash position and ended the quarter with more than $126 million in cash and investments.
"During the second quarter we will be transitioning from the 6x86 to our new M2 processor, featuring compatibility with MMXTM technology," said Swent. "We remain on target to begin initial production shipments of the M2 in June with a full production ramp-up in the third quarter."
Cyrix Corporation
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 Windows®-compatible processors for the desktop computer market. The Cyrix 6x86 processor has been recognized for its performance with awards from a number of publications, including BYTE Magazine's Best Technology at CeBIT'96, Computer Resellers News' Editor's Choice Award, PC Week's Corporate IT Excellence Award and Computer Shopper's Direct Channel Achievement Award.
Any forward-looking statements in the above release involve risks and uncertainties which could cause actual results to differ from the present anticipated results. These risks and uncertainties include but are not limited to the following: market demand and acceptance of our microprocessor products; the impact of changing economic conditions; product introductions; the verification of our microprocessor's compatibility with industry-standard hardware and software; the maintenance of sufficient cash flow; reliance on third-parties; 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.
6x86 and MediaGX are trademarks of Cyrix Corporation. MMX is a trademark of Intel Corporation. All other brand or product names are trademarks or registered trademarks of their respective holders.
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
1997 1996
Assets ---------------------
Cash, cash equivalents and
investments $126,684 $87,747
Accounts receivable, net 41,224 27,791
Inventories 26,686 24,432
Prepayment for product purchases 15,658 20,471
Deferred taxes and other assets 10,260 27,000
---------------------
Total current assets 220,512 187,441
Net property and equipment 84,071 85,585
Prepayments for product purchases,
less current portion 17,952 22,465
Other assets 3,642 3,851
---------------------
Total assets $326,177 $299,342
=====================
Liabilities and Stockholders’ Equity
Accounts payable $20,350 $17,504
Accrued expenses 14,295 13,488
Deferred income and distributor
reserves 8,286 2,610
Income taxes payable 11,190 377
Current maturities of long-term debt
and capitalized lease obligations 3,054 3,075
---------------------
Total current liabilities 57,175 37,054
Long-term debt, less current
maturities 135,423 136,156
Deferred income taxes 2,846 3,206
---------------------
Total liabilities 195,444 176,416
Stockholders’ equity 130,733 122,926
---------------------
Total liabilities and stockholders’
equity $326,177 $299,342
=====================
Consolidated Statements of Income
(In thousands, except for earnings per share)
Fiscal Quarter Ended March 31,
1997 1996
---------------------
Net product sales $74,857 $49,199
Royalty revenue 759 2,407
---------------------
Net revenues 75,616 51,606
Cost of sales 42,168 26,279
---------------------
Gross margin 33,448 25,327
---------------------
Marketing, general and
administrative 11,700 13,012
Research and development 10,114 7,701
---------------------
Total operating expenses 21,815 20,713
---------------------
Income from operations 11,634 4,614
Net interest expense (1,615) (1,650)
---------------------
Income before taxes 10,019 2,964
Income tax expense 3,406 1,008
---------------------
Net income $6,613 $1,956
=====================
Net income per common and common
equivalent share: $0.33 $0.10
=====================
Weighted average common and common
equivalent shares outstanding 20,340 20,029
=====================