Net sales for the final quarter of 1994 were $73 million, exceeding fourth quarter 1993 net sales of $32.8 million by 123%. Cyrix posted record net income of $12.7 million for the fourth quarter of 1994, an increase of 20% over third quarter 1994 results and up substantially from fourth quarter 1993 earnings of $1.2 million. On a per-share basis, Cyrix earned $0.63 for the fourth quarter of 1994 compared to $0.06 for fourth quarter 1993.
"By any measure, 1994 was a great year for Cyrix," noted Jerry Rogers, president and CEO. "We hit several important milestones such as our manufacturing relationship with IBM, our product transition to the 486DX2 family and nearly doubling sales from 1993."
In 1994, Cyrix transitioned its product mix from entry level lines such as the 486SLC and 486DLC microprocessors and math coprocessors to primarily 486DX and 486DX2 microprocessors. In the fourth quarter, Cyrix almost quadrupled the volume of its 486DX2/66 shipments compared to the prior quarter.
Cyrix began volume production of the DX2/80 in January 1995. If yields continue improving, Cyrix will be able to meet more of its customers' demand during the first quarter for the DX2/80.
The M1 microprocessor, using .5 micron technology from IBM and SGS Thomson Microelectronics, is slated to be the highest performance x86 microprocessor in the market and is currently operational in computer systems. Rogers, commenting on the M1, said,
"Our internal testing and benchmarks have exceeded our early performance expectations. We are making modifications to the current chip and expect to complete testing and have samples available in February."
December 31,
1994 1993
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Assets
Cash, cash equivalents and investments $ 59,241 $ 50,090
Accounts receivable, net 41,995 28,294
Inventories 18,477 10,161
Deferred taxes and other assets 12,455 4,467
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Total current assets 132,168 93,012
Net property and equipment 38,047 20,315
Prepayments for product purchases,
less current portion 23,330 --
Deferred taxes and other assets 2,589 1,401
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Total assets $196,134 $114,728
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Liabilities and Stockholders' Equity
Current liabilities $ 52,153 $ 23,920
Long-term debt, less current maturities 18,253 6,822
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Total liabilities 70,406 30,742
Stockholders' equity 125,728 83,986
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Total liabilities and stockholders' equity $196,134 $114,728
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Quarter ended Dec. 31, Year ended Dec. 31,
1994 1993 1994 1993
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Net sales $ 73,024 $ 32,818 $246,098 $125,108
Cost of sales 36,491 16,546 120,721 49,008
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Gross margin 36,533 16,272 125,377 76,100
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Marketing, general and
administrative 11,037 10,879 44,858 30,513
Research and development 6,275 4,175 24,755 15,732
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Total operating expenses 17,312 15,054 69,613 46,245
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Income from operations 19,221 1,218 55,764 29,855
Income from litigation settlement -- -- 500 --
Net interest income 277 145 1,134 508
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Income before taxes 19,498 1,363 57,398 30,363
Taxes on income 6,833 191 19,821 10,748
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Net income $ 12,665 $ 1,172 $ 37,577 $ 19,615
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Net income per common and common
equivalent share $0.63 $0.06 $1.88 $1.06
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Weighted average common and common
equivalent shares outstanding 20,031 19,766 19,986 18,444