Richardson, Texas -- July 18, 1996 -- Cyrix Corp. (NASDAQ: CYRX), a leading supplier of high-performance processors, today reported revenues for the quarter ended June 30, 1996 of $27.1 million, down 46 percent from the $50.2 million reported in the same period last year. Revenues for the first six months of 1996 were $78.7 million, down from $135.4 million in the same period last year.
The Company recorded a net loss of $16.4 million for the quarter ended June 30, 1996, compared to net income of $7.5 million for the same period last year. The Company recorded a net loss of $14.5 in the first six months of 1996, compared to net income of $25 million in the first half of 1995.
"Looking beyond the second quarter, Cyrix�s largest challenge is to grow our customer base," said Jerry Rogers, Cyrix president and chief executive officer. "The 6x86™ processor is a very competitive product in today�s marketplace, outperforming equivalent Pentium® and Pentium Pro processors at a significant discount. In addition, the product roadmap to bring us to an MMX-compatible future is sound."
"We know that we must drive this value proposition as aggressively as possible in order to obtain market share for the company, success for the product line and value for the shareholder," Rogers said. "While we are unlikely to turn a profit in the third quarter, the survival of competition and product innovation in the x86 marketplace demand unyielding focus and execution."
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, product introductions, the maintanance 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.
June 30, December 31,
1996 1995
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Assets
Cash, cash equivalents and investments $ 70,283 $ 44,334
Accounts receivable, net 30,709 44,727
Inventories 29,368 12,274
Prepayment for product purchases 15,658 13,333
Deferred taxes and other assets 19,347 14,311
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Total current assets 165,365 128,979
Net property and equipment 94,851 98,307
Prepayments for product purchases,
less current portion 39,156 40,697
Deferred taxes and other assets 4,150 802
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Total assets $ 303,522 $ 268,785
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Liabilities and Stockholders' Equity
Accounts payable $ 15,127 $ 15,239
Deferred income and distributor reserves 5,891 15,526
Current maturities of long-term debt and
capitalized lease obligations 2,667 20,053
Other accrued expenses 11,372 9,649
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Current liabilities 35,057 60,467
Long-term debt, less current maturities 7,506 62,325
Other non-current liabilities 1,302 ---
5.5% convertible subordinated notes due June 1, 2001 126,500 ---
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Total liabilities 170,365 122,792
Stockholders' equity 133,157 145,993
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Total liabilities and stockholders' equity $ 303,522 $ 268,785
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Quarter ended June 30, Six months ended June 30,
1996 1995 1996 1995
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Net product sales $ 25,068 $ 50,238 $ 74,267 $ 120,382
Royalty revenue 1,987 --- 4,394 15,000
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Net revenues 27,055 50,238 78,661 135,382
Cost of sales 26,487 30,913 52,766 70,980
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Gross margin 568 19,325 25,895 64,402
Marketing, general and administrative 13,971 10,165 26,983 20,380
Research and development 8,795 6,864 16,496 14,310
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Total operating expenses 22,766 17,029 43,479 34,690
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Income (loss) from operations (22,198) 2,296 (17,584) 29,712
Income from litigation settlement --- 10,000 --- 10,000
Net interest expense (1,801) (852) (3,451) (1,157)
---------------------- ------------------------
Income (loss) before taxes and
extraordinary item (23,999) 11,444 (21,035) 38,555
Income tax (expense) benefit 8,639 (3,950) 7,631 (13,576)
---------------------- ------------------------
Net Income (loss) before extraordinary
item (15,360) 7,494 (13,404) 24,979
Extraordinary loss on early
extinguishment of debt, net of income
tax benefit of $598 (1,062) --- (1,062) ---
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Net income (loss) $ (16,422) $ 7,494 $ (14,466) $ 24,979
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Net income (loss) per common and common
equivalent share:
Earnings (loss) before extraordinary
item $(0.76) $0.38 $(0.67) $1.26
Extraordinary item $(0.05) --- $(0.05) ---
---------------------- ------------------------
$(0.81) $0.38 $(0.72) $1.26
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Weighted average common and common
equivalent shares outstanding 20,278 19,841 20,153 19,801
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