Richardson, Texas -- October 17, 1996 -- Cyrix Corp. (NASDAQ: CYRX), a leading supplier of high-performance processors, today reported revenues for the quarter ended September 30, 1996 of $33.1 million, up from the prior quarter revenues of $27.1 million and down 38 percent from the $53.6 million reported in the same period last year. The Company recorded a net loss of $6.9 million for the quarter ended September 30, 1996 or a loss per share of $0.36, compared with net income of $.6 million or an earnings per share of $0.03 for the same period last year.
Revenues for the first nine months of 1996 were $111.8 million, down from $189 million in the same period last year. The Company recorded a net loss of $21.4 million or $1.11 per share in the first nine months of 1996, compared with net income of $25.5 million or $1.28 per share in the prior nine months of 1995.
During the third quarter, the last of the Intel litigation was finally concluded. Intel had until July to file an appeal of the Federal Circuit Court of Appeal�s March 5, 1996 opinion that IBM and SGS-Thomson using its "have made" rights were licensed by Intel to make microprocessors for Cyrix. Intel did not file an appeal and, as a result, under the earlier Intel settlement agreement paid Cyrix $2 million. Also, on September 26, 1996, the U.S. District Court in Dallas entered a judgment dismissing the securities class action lawsuit against Cyrix and certain of its officers. The plaintiffs did not file an appeal and the decision is now final.
"We made good progress in the third quarter in winning new customers and putting several legal matters behind us," said Jerry Rogers, Cyrix president and chief executive officer. "Going forward, we will continue to enhance the value proposition of the 6x86™ product line while controlling our operating expenses," Rogers said.
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.
September 30, December 31,
1996 1995
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Assets
Cash, cash equivalents and investments $ 56,300 $ 44,334
Accounts receivable, net 33,998 44,727
Inventories 51,663 12,273
Prepayment for product purchases 15,658 13,333
Deferred taxes and other assets 23,827 14,311
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Total current assets 181,446 128,978
Net property and equipment 90,665 98,307
Prepayments for product purchases,
less current portion 34,979 40,698
Deferred taxes and other assets 4,061 802
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Total assets $ 311,151 $ 268,785
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Liabilities and Stockholders' Equity
Accounts payable $ 21,959 $ 15,239
Deferred income and distributor reserves 7,126 15,526
Current maturities of long-term debt and
capitalized lease obligations 3,058 20,053
Other accrued expenses 12,789 9,649
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Current liabilities 44,932 60,467
Long-term debt, less current maturities 10,507 62,325
Other non-current liabilities 2,189 ---
5.5% convertible subordinated notes due June 1, 2001 126,500 ---
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Total liabilities 184,128 122,792
Stockholders' equity 127,023 145,993
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Total liabilities and stockholders' equity $ 311,151 $ 268,785
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Quarter ended Sept. 30, Nine months ended Sept. 30,
1996 1995 1996 1995
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Net product sales $ 31,058 $ 53,498 $ 105,775 $ 173,880
Royalty revenue 1,598 74 5,992 15,074
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Net revenues 33,106 53,572 111,767 188,954
Cost of sales 21,811 34,982 74,578 105,962
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Gross margin 11,295 18,590 37,189 82,992
Marketing, general and administrative 13,870 8,755 40,852 29,135
Research and development 8,073 7,571 24,569 21,881
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Total operating expenses 21,943 16,326 65,421 51,016
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Income (loss) from operations (10,648) 2,264 (28,232) 31,976
Income from litigation settlement 2,000 --- 2,000 10,000
Net interest expense (1,876) (1,416) (5,328) (2,573)
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Income (loss) before taxes and
extraordinary item (10,524) 848 (31,560) 39,403
Income tax (expense) benefit 3,578 (292) 11,210 (13,868)
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Net Income (loss) before extraordinary
item (6,946) 556 (20,350) 25,535
Extraordinary loss on early
extinguishment of debt, net of income
tax benefit of $598 --- --- (1,062) ---
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Net income (loss) $ (6,946) $ 556 $ (21,412) $ 25,535
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Net income (loss) per common and common
equivalent share:
Earnings (loss) before extraordinary
item $(0.36) $0.03 $(1.05) $1.28
Extraordinary item $ --- --- $(0.06) ---
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$(0.36) $0.03 $(1.11) $1.28
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Weighted average common and common
equivalent shares outstanding 19,463 20,126 19,376 19,910
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