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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of Earliest Event Reported): October 16, 1997
CYRIX CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-21904 75-2218250
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification Number)
2703 NORTH CENTRAL EXPRESSWAY, RICHARDSON, TX 75080
(Address of principal executive offices, including zip code)
972-968-8387
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On October 16, 1997 Cyrix Corporation issued a press release announcing
financial results for the quarterly period ended September 28, 1997. Such press
release is filed as Exhibit 20.1 to this report and is incorporated herein by
reference.
ITEM 7. EXHIBITS
( c ) Exhibits
20.1 Press release dated October 16, 1997.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
CYRIX CORPORATION
Date: October 17, 1997 By: /s/ James W. Swent, III
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James W. Swent, III
Senior Vice President of Finance
and Administration & CFO
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<TABLE>
<CAPTION>
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- --------- --------------------------------------
<S> <C>
20.1 Press Release dated October 16, 1997.
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</TABLE>
EXHIBIT 20.1
FOR IMMEDIATE RELEASE
Mark Lipscomb, Cyrix Corporation, (972) 968-8285
Linda Ashmore, The Hoffman Agency, (408) 975-3006
CYRIX REPORTS THIRD QUARTER RESULTS POSTING RECORD REVENUE AND UNIT SHIPMENTS
RICHARDSON, TEXAS -- OCTOBER 16, 1997-- CYRIX CORPORATION (NASDAQ: CYRX), a
leading supplier of high-performance processors to the personal computer
industry, today reported record revenues for the quarter ended September 30,
1997 of $93.2 million, up 182 percent from the $33.1 million reported in the
same period last year. The Company recorded a small net loss of $0.7 million, or
a 4 cent loss per share for the quarter, compared to a net loss of $6.9 million,
or a loss per share of 36 cents for the same period last year.
The company achieved record shipments of 1.3 million units in the quarter.
Included were shipments of nearly 600,000 older 6x86 non-MMXTM enhanced
processors which were phased out of production in the third quarter. This phase
out contributed to lower gross margins in the quarter, but also significantly
reduced inventory levels.
During the first nine months of 1997, Cyrix reported substantial revenue growth
to $208.8 million, up 87 percent from the $111.8 million posted in the same
period last year. The Company posted net income of $0.6 million, or earnings per
share of 3 cents in the first nine months of 1997, compared to the net loss of
$21.4 million, or a loss of $1.11 per share for the same period last year.
"The MediaGXTM processor showed impressive sales growth as third quarter
shipments doubled from the prior quarter to more than 400,000 units. This
reinforces our leadership position in the rapidly expanding sub-$1,000 PC
marketplace," said Jay Swent, Cyrix chief financial officer and acting CEO.
"Additionally, strong customer response to our new MMXTM-enhanced 6x86MXTM
processor was evident as we exceeded 300,000 units shipped in the quarter. These
two product lines position us well to drive revenue and profit performance in
the future."
During the quarter, Cyrix and National Semiconductor announced an agreement to
merge. Regulatory approvals have been secured, and a special meeting of Cyrix
stockholders to vote on the merger is scheduled for November 17, 1997.
<PAGE>
Cyrix Corporation, headquartered in Richardson, Texas, is a leading supplier of
innovative microprocessor-based solutions that set new standards for the
personal computer market. The company delivers compelling value and quality to
its customers, the manufacturers of personal computer products, by combining
industry-leading design with world-class manufacturing. Cyrix customers include
Acer, Apple, Compaq, CTX, Cybermax, FIC, Fujitsu, IBM, NEC and Samsung. For more
information visit the Cyrix web site at www.cyrix.com.
Any forward-looking statements in the above release involve risks and
uncertainties that 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.
6x86MX, MediaGX and 6x86 are trademarks of Cyrix Corporation. MMX is a trademark
of Intel Corporation. All other brand or product names are trademarks or
registered trademarks of their respective holders.
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<TABLE>
<CAPTION>
Consolidated Balance Sheets (Unaudited)
(In thousands)
September 30, December 31,
Assets 1997 1996
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<S> <C> <C>
Cash, cash equivalents and investments $105,460 $87,747
Accounts receivable, net 60,981 27,791
Inventories 27,461 24,432
Prepayment for product purchases 22,799 20,471
Deferred taxes and other assets 12,594 27,000
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Total current assets 229,295 187,441
Net property and equipment 74,639 85,585
Prepayments for product purchases,
less current portion 10,791 22,465
Other assets 3,322 3,851
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Total assets $318,047 $299,342
=============================
Liabilities and Stockholders' Equity
Accounts payable $30,056 $17,504
Accrued expenses 13,580 13,488
Deferred income and distributor reserves 4,839 2,610
Income taxes payable 722 377
Current maturities of long-term debt and
capitalized lease obligations 2,368 3,075
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Total current liabilities 51,565 37,054
Long-term debt, less current maturities 134,502 136,156
Deferred income taxes 2,961 3,206
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Total liabilities 189,028 176,416
Stockholders' equity 129,019 122,926
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Total liabilities and stockholders' equity $318,047 $299,342
=============================
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<TABLE>
<CAPTION>
Consolidated Statements of Income (Unaudited)
(In thousands, except for earnings per share)
Quarter ended Sept. 30, Nine months ended Sept. 30,
1997 1996 1997 1996
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<S> <C> <C>
Net product sales $92,122 $31,508 $206,496 $105,775
Royalty revenue 1,071 1,598 2,328 5,992
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Net revenues 93,193 33,106 208,824 111,767
Cost of sales 70,558 21,811 137,891 74,578
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Gross margin 22,635 11,295 70,933 37,189
Marketing, general and administrative 12,416 13,870 35,307 40,852
Research and development 10,069 8,073 31,014 24,569
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Total operating expenses 22,485 21,943 66,321 65,421
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Income (loss) from operations 150 (10,648) 4,612 (28,232)
Income from litigation settlement 2,000 2,000
Net interest expense (1,250) (1,876) (3,721) (5,328)
----------------------------- -----------------------------
Income (loss) before taxes and extraordinary item (1,100) (10,524) 891 (31,560)
Income tax (expense) benefit 363 3,578 (294) 11,210
----------------------------- -----------------------------
Net income (loss) before extraordinary item (737) (6,946) 597 (20,350)
Extraordinary loss from early
extinguishment of debt (1,062)
----------------------------- -----------------------------
Net income (loss) $(737) $(6,946) $597 $(21,412)
============================= =============================
Net income (loss) per common and common equivalent share:
Income (loss) before extraordinary item $(0.04) $(0.36) $0.03 $(1.05)
Extraordinary item $(0.06)
----------------------------- -----------------------------
Net Income (loss) per share $(0.04) $(0.36) $0.03 $(1.11)
============================= =============================
Weighted average common and common
equivalent shares outstanding 19,796 19,463 20,408 19,376
============================= =============================
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