CIRRUS LOGIC, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
(not prepared in accordance with GAAP)
Quarter Ended
Jun. 29,
2002
Net sales
$
Costs and expenses:
Cost of sales (Note 1)
Research and development (Note 2)
Selling, general and administrative (Note 3)
Restructuring costs (Note 4)
Total costs and expenses
Income (loss) from operations
Realized gain on the sale of marketable equity securities (Note 5)
Interest income and (expense), net (Note 6)
Other income (expense), net
Mar. 30,
2002
76,024
$
82,769
Jun. 30,
2001
$
179,083
39,014
27,214
18,787
-
43,712
27,252
22,399
-
121,828
27,375
24,938
-
85,015
93,363
174,141
(8,991)
(10,594)
4,942
566
(284)
2,821
574
615
74
Income (loss) before income taxes and loss from discontinued operations
Provision (benefit) for income taxes (Note 7)
(8,302)
(559)
(10,312)
(924)
8,337
-
Income (loss) from continuing operations
(7,743)
(9,388)
8,337
-
-
-
Loss from discontinued operations (Note 8)
Net income (loss)
$
(7,743)
$
(9,388)
$
8,337
Basic earnings per share
$
(0.09)
$
(0.11)
$
0.11
Diluted earnings per share
$
(0.09)
$
(0.11)
$
0.11
Weighted average common shares outstanding:
Basic
Diluted
83,018
83,018
See notes to Pro Forma Consolidated Condensed Statement of Operations
82,748
82,748
74,253
76,862
CIRRUS LOGIC, INC.
NOTES TO PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited - quarterly)
This pro forma presentation reflects the historical financial results adjusted for the following non-recurring or unusual items:
(Note 1) Q1 FY'03 - Pro Forma cost of sales excludes the benefit of $1.2 million in reserves released on product sold during the quarter and
$0.4 million related to the reversal of a portion of the Q1 FY'02 charge recorded in conjunction with exiting the magnetic storage product line.
Q4 FY'02 - Pro Forma cost of sales excludes the benefit of $1.3 million in reserves released on product sold during the quarter. Q1 FY'02 Pro Forma cost of sales excludes $36.6 million in inventory charges associated with the exit from our magnetic storage product line.
(Note 2) Q1 FY'03 - Pro Forma research and development expense excludes $4.7 million related to the amortization of acquired intangible
assets and $0.7 million related to acquisition bonus and deferred compensation expense. Q4 FY'02 - Pro Forma research and development
expense excludes $4.8 million related to the amortization of acquired intangible assets and $0.9 million related to acquisition bonus and
deferred compensation expense. Q1 FY'02 - Pro Forma research and development expense excludes $1.9 million related to the write-off of inprocess research and development associated with the acquisition of Peak Audio and $1.1 million related to the amortization of acquired
intangible assets.
(Note 3) Q1 FY'03 - Pro Forma selling, general and administrative expense excludes $0.9 million related to acquisition bonus and deferred
compensation expense, $0.5 million related to facility exit costs, and $0.2 million related to legal costs associated with magnetic storage
products and $0.1 million related to merger and acquisition activities. Q4 FY'02 - Pro Forma selling, general and administrative expense
excludes a $73.3 million charge to reserve disputed magnetic storage receivables from Western Digital and Fujitsu, Ltd., $1.1 million related
to acquisition bonus and deferred compensation expense and $0.2 million related to legal costs associated with magnetic storage products.
(Note 4) Q1 FY'03 - Pro Forma restructuring costs excludes $2.1 million related to costs associated with our announced workforce reduction
and consolidation of our facilities. Q4 FY'02 - Pro Forma restructuring costs excludes $3.5 million related to costs associated with
consolidation of our facilities. Q1 FY'02 - Pro Forma restructuring costs excludes $1.9 million related to workforce reductions.
(Note 5) Q1 FY'03 - Pro Forma realized gain on the sale of marketable equity securities excludes a gain of $1.4 million related to the
holdback from the sale of our interest in Basis Communications. Q1 FY'02 - Pro Forma realized gain on the sale of marketable equity
securities excludes a gain of $9.8 million related to the sale of our interest in Basis Communications and $1.2 million related to the sale of call
options in Openwave Systems, Inc. (formerly known as Phone.com) common stock .
(Note 6) Q1 FY'03 - Pro Forma interest income and (expense), net excludes $0.1 million in interest income associated with the sale of our
interest in Basis Communications. Q4 FY'02 - Pro Forma interest income and (expense), net excludes $2.4 million related to interest received
on income tax refunds for prior years.
(Note 7) Q1 FY'03 - Pro Forma benefit for income taxes includes a $0.6 million benefit resulting from reclaiming a portion of the FY'01 Pro
Forma income tax expense. Q4 FY'02 - Pro Forma benefit for income taxes excludes $10.6 million related to income tax refunds for prior
years. Pro Forma benefit for income taxes includes a $0.9 million benefit resulting from reclaiming a portion of the FY'01 Pro Forma income
tax expense.
(Note 8) Q1 FY'03 - Pro Forma financial statements exclude the $1.5 million loss from discontinued operations of eMicro Corporation
("eMicro"). During Q1, the shareholders of eMicro voted to dissolve eMicro, a joint venture in which we own a 75% interest. Q4 FY'02 The Pro Forma financial statements exclude the $0.6 million loss from discontinued operations of eMicro. Q1 FY'02 - The Pro Forma
financial statements exclude the $0.8 million loss from discontinued operations of eMicro.
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Quarter Ended
Jun. 29,
2002
Net sales
$
Costs and expenses:
Cost of sales (Note 1)
Research and development (Note 2)
Selling, general and administrative (Note 3)
Restructuring costs (Note 4)
76,024
Mar. 30,
2002
$
82,769
Jun. 30,
2001
$
179,083
37,391
32,649
20,471
2,085
42,414
32,938
97,071
3,544
158,413
30,369
24,938
1,919
92,596
175,967
215,639
Income (loss) from operations
(16,572)
(93,198)
(36,556)
Realized gain on the sale of marketable equity securities (Note 5)
Interest income and (expense), net (Note 6)
Other income (expense), net
Income (loss) before income taxes and loss from discontinued operations
Provision (benefit) for income taxes (Note 7)
1,400
740
74
(14,358)
29
2,950
(284)
(90,532)
(10,370)
10,967
2,821
574
(22,194)
-
Income (loss) from continuing operations
(14,387)
(80,162)
(22,194)
(1,452)
(633)
(803)
Total costs and expenses
Loss from discontinued operations (Note 8)
Net income (loss)
Basic earnings per share:
From continuing operations
Discontinued operations
Basic earnings per share
$
(15,839)
$
(80,795)
$
(22,997)
$
(0.17)
(0.02)
(0.19)
$
(0.97)
(0.01)
(0.98)
$
(0.30)
(0.01)
(0.31)
$
Diluted earnings per share:
From continuing operations
Discontinued operations
Diluted earnings per share
$
$
Weighted average common shares outstanding:
Basic
Diluted
(0.17)
(0.02)
(0.19)
$
$
$
83,018
83,018
See notes to Pro Forma Consolidated Condensed Statement of Operations
Prepared in accordance with Generally Accepted Accounting Principles
(0.97)
(0.01)
(0.98)
82,748
82,748
$
$
$
(0.30)
(0.01)
(0.31)
74,253
74,253
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
Jun. 29,
2002
(unaudited)
ASSETS
Current assets
Cash and cash equivalents
Restricted cash
Marketable equity securities
Accounts receivable, net
Inventories, net
Other current assets
Total Current Assets
Property and equipment, net
Goodwill and intangibles, net
Other assets
Total Assets
$
$
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities
Current maturities of long-term debt and capital lease obligations
Income taxes payable
Total Current Liabilities
Long-term obligations
Minority interest in eMicro
Stockholders' equity:
Capital stock
Accumulated deficit
Accumulated other comprehensive income
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
$
131,897
12,807
2,174
28,889
36,591
19,593
231,951
33,816
190,248
3,445
459,460
Mar. 30,
2002
$
$
140,529
12,807
2,258
42,158
27,985
19,928
245,665
36,549
194,660
4,756
481,630
Jun. 30,
2001
(unaudited)
$
$
151,512
10,000
11,356
139,795
81,901
18,463
413,027
47,240
19,961
8,115
488,343
68,214
248
42,175
110,637
75,936
566
42,178
118,680
89,212
2,040
40,672
131,924
3,658
3,709
3,766
599
1,092
1,431
865,380
(520,538)
(276)
344,566
459,460
$
862,729
(504,699)
119
358,149
481,630
$
663,162
(321,417)
9,477
351,222
488,343