Net product sales of $49.2 million for the first quarter of 1996 decreased 30 percent compared with the $70.1 million reported for the same period last year, but increased 35 percent compared with $36.4 million reported in the prior quarter. Cyrix's gross profit margin as a percentage of net product sales for the first quarter was 47 percent, compared with 43 percent in the same period last year.
"Momentum is clearly building behind the discovery, adoption and sale of the 6x86 processor," said Jerry Rogers, Cyrix President and Chief Executive Officer. "With a growing number of PCs using the 6x86 available in the channel and exceptional press coverage and industry awards bestowed upon the product, we look forward to building on the quarter behind us."
"In recent weeks, we introduced the Cyrix personal computer, demonstrating the highest performance available on the desktop. Available in four models through the direct channel, the Cyrix PC and the advertising accompanying it will provide the type of exposure that we need to assist the continued adoption and recognition of the 6x86."
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.
Cyrix is a registered trademark and 6x86 processor is a trademark of Cyrix Corporation. All other brand or product names are trademarks or registered trademarks of their respective holders
March 31, December 31,
1996 1995
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Assets
Cash, cash equivalents and investments $ 31,304 $ 44,334
Accounts receivable, net 47,295 44,727
Inventories 22,037 12,274
Deferred taxes and other assets 22,755 27,644
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Total current assets 123,391 128,979
Net property and equipment 95,275 98,307
Prepayments for product purchases,
less current portion 45,741 40,697
Deferred taxes and other assets 772 802
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Total assets $ 265,179 $ 268,785
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Liabilities and Stockholders' Equity
Accounts payable $ 20,738 $ 15,239
Deferred income and distributor reserves 7,578 15,526
Income taxes payable 370 536
Current maturities of long-term debt and
capitalized lease obligations 19,950 20,053
Other accrued expenses 10,811 9,113
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Current liabilities 59,447 60,467
Long-term debt, less current maturities 57,006 62,325
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Total liabilities 116,453 122,792
Stockholders' equity 148,726 145,993
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Total liabilities and stockholders' equity $ 265,179 $ 268,785
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Quarter ended March 31,
1996 1995
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Net product sales $ 49,199 $ 70,144
Royalty revenue 2,407 15,000
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Net revenues 51,606 85,144
Cost of sales 26,279 40,067
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Gross margin 25,327 45,077
Marketing, general and administrative 13,012 10,215
Research and development 7,701 7,446
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Total operating expenses 20,713 17,661
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Income from operations 4,614 27,416
Net interest expense 1,650 305
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Income before taxes 2,964 27,111
Taxes on income 1,008 9,626
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Net income $ 1,956 $ 17,485
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Net income per common and common
equivalent share $0.10 $0.88
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Weighted average common and common
equivalent shares outstanding 20,029 19,762