Cyrix Posts Record First Quarter Results

Sixth-Generation Products Sampling

Richardson, Texas -- April 27, 1995 -- Cyrix Corporation (NASDAQ: CYRX), a manufacturer of high performance x86 processors, today announced revenues of $85.1 million for the first quarter of 1995, up 84 percent from the prior year and up 17 percent sequentially, bolstered by a one-time royalty payment from Texas Instruments. Net income was $17.5 million, or $0.88 per share, of which $0.49 per share resulted from the royalty revenue.

Net product sales of $70.1 million for the first quarter of 1995 increased 52 percent over the $46.3 million reported for the same period last year, and decreased 4 percent compared to $73 million reported in the prior quarter. Unit shipments were up sequentially.

Net income of $17.5 million, including a royalty payment for the first quarter of 1995, was up substantially over $5.2 million reported for the same period last year. Net income was up 38 percent compared to the prior quarter. Cyrix's gross profit margin as a percentage of net product sales (excluding royalty revenue) declined to 43 percent in the first quarter of 1995 from 50 percent during the prior quarter due to price pressures on entry-level 486 processor products.

During the first quarter of 1995, Cyrix provided pre-production samples of its two new fifth and sixth generation products to personal computer manufacturers. "Reaction has been positive to the early testing," stated Jerry Rogers, President and CEO. "We are poised to be a major player in the high-end market if we can execute and get our new products to market in the third quarter."

Cyrix Corporation, founded in 1988, designs, develops and manufactures high performance processors for the personal computer industry. Cyrix has demonstrated the ability and commitment to bring innovative and compatible technology to market in an impressive design cycle time. Cyrix is a publicly held company traded on NASDAQ.


Consolidated Balance Sheet

(in thousands)

                                                        March 31,       December 31,
                                                           1995             1994
                                                       -----------------------------
Assets
Cash, cash equivalents and investments                 $  65,359        $  59,241
Accounts receivable, net                                  46,173           41,995
Inventories                                               10,698           18,477
Deferred taxes and other assets                           18,801           12,455
                                                       -----------------------------
Total current assets                                     141,031          132,168
Net property and equipment                                73,241           38,047
Prepayments for product purchases,
   less current portion                                   34,880           23,330
Deferred taxes and other assets                            2,845            2,589
                                                       -----------------------------
Total assets                                           $ 251,997        $ 196,134
                                                       =============================

Liabilities and Stockholders' Equity
Current liabilities                                    $  63,518        $  52,153
Long-term debt, less current maturities                   44,178           18,253
                                                       -----------------------------
Total liabilities                                        107,696           70,406
Stockholders' equity                                     144,301          125,728
                                                       -----------------------------
Total liabilities and stockholders' equity             $ 251,997        $ 196,134
                                                       =============================


Consolidated Statements of Income

(in thousands, except for earnings per share)

                                                           Quarter ended March 31,
                                                           1995              1994
                                                       -----------------------------
Net sales                                              $  85,144         $  46,280
Cost of sales                                             40,067            21,942
                                                       -----------------------------
Gross margin                                              45,077            24,338
                                                       -----------------------------
Marketing, general and administrative                     10,215            11,875
Research and development                                   7,446             5,324
                                                       -----------------------------
Total operating expenses                                  17,661            17,199
                                                       -----------------------------
Income from operations                                    27,416             7,139
Income from litigation settlement                           --                 500
Net interest income (expense)                               (305)              184
                                                       -----------------------------
Income before taxes                                       27,111             7,823
Taxes on income                                            9,626             2,660
                                                       -----------------------------
Net income                                             $  17,485          $  5,163
                                                       =============================
Net income per common and common
   equivalent share                                        $0.88             $0.26
                                                       =============================
Weighted average common and common
  equivalent shares outstanding                           19,762            19,839


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