CIRRUS LOGIC INC, 10-Q filed on 1/26/2012
Quarterly Report
Document And Entity Information
9 Months Ended
Dec. 31, 2011
Jan. 23, 2012
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
FALSE 
 
Entity Registrant Name
CIRRUS LOGIC INC 
 
Entity Central Index Key
0000772406 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Period End Date
Dec. 31, 2011 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q3 
 
Current Fiscal Year End Date
--03-31 
 
Entity Common Stock, Shares Outstanding
 
64,096,001 
Consolidated Condensed Balance Sheets (USD $)
In Thousands
Dec. 31, 2011
Mar. 26, 2011
Assets
 
 
Cash and cash equivalents
$ 38,010 
$ 37,039 
Restricted investments
2,898 
5,786 
Marketable securities
99,342 
159,528 
Accounts receivable, net
54,512 
39,098 
Inventories
58,079 
40,497 
Deferred tax assets
30,798 
30,797 
Other current assets
16,116 
6,725 
Total current assets
299,755 
319,470 
Long-term marketable securities
20,092 
12,702 
Property and equipment, net
57,263 
34,563 
Goodwill and intangibles, net
24,623 
26,152 
Deferred tax assets
82,071 
102,136 
Other assets
10,813 
1,598 
Total assets
494,617 
496,621 
Liabilities and Stockholders' Equity
 
 
Accounts payable
45,104 
27,639 
Accrued salaries and benefits
11,539 
12,402 
Other accrued liabilities
14,259 
5,169 
Deferred income
8,511 
6,844 
Total current liabilities
79,413 
52,054 
Long-term obligations
6,494 
6,188 
Stockholders' equity:
 
 
Capital stock
1,001,967 
991,947 
Accumulated deficit
(592,436)
(552,814)
Accumulated other comprehensive loss
(821)
(754)
Total stockholders' equity
408,710 
438,379 
Total liabilities and stockholders' equity
$ 494,617 
$ 496,621 
Consolidated Condensed Statements Of Operations (USD $)
In Thousands, except Per Share data
3 Months Ended
Dec. 31, 2011
3 Months Ended
Dec. 25, 2010
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
Consolidated Condensed Statements Of Operations [Abstract]
 
 
 
 
Net sales
$ 122,368 
$ 95,625 
$ 316,212 
$ 278,138 
Cost of sales
56,338 
43,163 
148,118 
122,161 
Gross margin
66,030 
52,462 
168,094 
155,977 
Operating expenses:
 
 
 
 
Research and development
23,143 
16,348 
61,592 
46,890 
Selling, general and administrative
16,488 
13,431 
47,854 
42,814 
Restructuring and other costs, net
 
(395)
 
Impairment of non-marketable securities
 
 
 
500 
Provision for litigation expenses and settlements
 
(30)
 
105 
Patent agreement, net
 
 
 
(4,000)
Total operating expenses
39,631 
29,354 
109,446 
86,315 
Income from operations
26,399 
23,108 
58,648 
69,662 
Interest income, net
112 
212 
378 
673 
Other income (expense), net
(71)
(31)
(115)
(13)
Income before income taxes
26,440 
23,289 
58,911 
70,322 
Provision (benefit) for income taxes
9,709 
(1,332)
21,755 
(2,775)
Net income
$ 16,731 
$ 24,621 
$ 37,156 
$ 73,097 
Basic income per share:
$ 0.26 
$ 0.36 
$ 0.57 
$ 1.08 
Diluted income per share:
$ 0.25 
$ 0.34 
$ 0.55 
$ 1.02 
Basic weighted average common shares outstanding:
63,957 
68,074 
65,161 
67,731 
Diluted weighted average common shares outstanding:
66,989 
71,695 
68,099 
71,868 
Consolidated Condensed Statements Of Cash Flows (USD $)
In Thousands
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
Cash flows from operating activities:
 
 
Net income
$ 37,156 
$ 73,097 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
7,262 
5,935 
Stock compensation expense
8,725 
5,848 
Deferred income taxes
20,064 
(4,082)
Loss (gain) on retirement or writeoff of long-lived assets
10 
(24)
Impairment of non-marketable securities
 
500 
Net change in operating assets and liabilities:
 
 
Accounts receivable, net
(15,414)
(13,303)
Inventories
(17,582)
(4,800)
Other assets
(4,405)
(899)
Accounts payable and other accrued liabilities
14,188 
3,044 
Deferred income
1,667 
620 
Income taxes payable
240 
618 
Net cash provided by operating activities
51,911 
66,554 
Cash flows from investing activities:
 
 
Additions to property, equipment and software
(25,667)
(17,719)
Investments in technology
(6,011)
(1,210)
Purchase of marketable securities
(122,506)
(176,626)
Proceeds from sale and maturity of marketable securities
175,234 
140,165 
Decrease in restricted investments
2,888 
100 
Decrease (increase) in deposits and other assets
604 
(77)
Net cash provided by (used in) investing activities
24,542 
(55,367)
Cash flows from financing activities:
 
 
Repurchase and retirement of common stock
(76,782)
(22,767)
Net proceeds from the issuance of common stock
1,300 
23,962 
Net cash provided by (used in) financing activities
(75,482)
1,195 
Net increase in cash and cash equivalents
971 
12,382 
Cash and cash equivalents at beginning of period
37,039 
16,109 
Cash and cash equivalents at end of period
$ 38,010 
$ 28,491 
Basis Of Presentation
Basis Of Presentation

1. Basis of Presentation

     The consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. ("we," "us," "our," or the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission ("Commission"). The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations. As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 26, 2011, included in our Annual Report on Form 10-K filed with the Commission on May 25, 2011. In our opinion, the financial statements reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows for those periods presented. The preparation of financial statements in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses, as well as disclosure of contingent assets and liabilities. Actual results could differ from those estimates and assumptions. Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain reclassifications have been made to the fiscal year 2011 presentation to conform to the fiscal year 2012 presentation. This reclassification had no effect on the results of operations or stockholders' equity. We prepare financial statements on a 13- or 14-week quarter, with a fiscal year end that ends on the last Saturday in March. The third fiscal quarter of 2012 was a 14-week quarter compared to a 13-week quarter for the prior comparable period.

Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements

2. Recently Issued Accounting Pronouncements

     In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-04, Fair Value Measurement (Accounting Standards Codification ("ASC") Topic 820) — Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this ASU result in common fair value measurement and disclosure requirements in U.S. GAAP and international financial reporting standards ("IFRS"). Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. To improve consistency in application across jurisdictions some changes in wording are necessary to ensure that U.S. GAAP and IFRS fair value measurement and disclosure requirements are described in the same way. The ASU also provides for certain changes in current GAAP disclosure requirements, for example with respect to the measurement of level 3 assets and for measuring the fair value of an instrument classified in a reporting entity's shareholders' equity. The amendments in this ASU are to be applied prospectively, and are effective during interim and annual periods beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

     In May 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (ASC Topic 220) —Presentation of Comprehensive Income. The amendments from this update will result in more converged guidance on how comprehensive income is presented under both U.S. GAAP and IFRS. With this update to ASC 220, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income, nor does it affect how earnings per share is calculated or presented. Current U.S. GAAP allows reporting entities three alternatives for presenting other comprehensive income and its components in financial statements. One of those presentation options is to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. This update eliminates that option. The amendments in this ASU should be applied retrospectively, and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this guidance is not anticipated to have a material impact on our consolidated financial position, results of operations or cash flows.

Fair Value Of Financial Instruments
Fair Value Of Financial Instruments

3. Fair Value of Financial Instruments

     The Company's investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with ASC Topic 320 - "Investments – Debt and Equity Securities." Marketable securities are categorized on the consolidated condensed balance sheet as restricted investments and marketable securities, as appropriate.

     The following table is a summary of cash and marketable securities at December 31, 2011 (in thousands):

                  Estimated Fair
        Gross   Gross     Value (Net
        Unrealized   Unrealized     Carrying
    Amortized Cost   Gains   Losses     Amount)
 
Cash and Cash Equivalents $ 11,666 $ - $ -   $ 11,666
Money-Market Funds   27,220   -   -     27,220
Corporate Debt Securities   59,694   10   (64 )   59,640
U.S. Treasury Securities   24,143   4   -     24,147
Agency Discount Notes   17,831   8   (1 )   17,838
Commercial Paper   19,840   2   (11 )   19,831
Total Securities $ 160,394 $ 24 $ (76 ) $ 160,342

 

     The Company's specifically identified gross unrealized losses of $76 thousand relates to 29 different securities with total amortized costs of approximately $62.3 million at December 31, 2011. The securities with gross unrealized losses have been in a continuous unrealized loss position for less than 12 months as of December 31, 2011.

The following table is a summary of cash and marketable securities at March 26, 2011 (in thousands):

                  Estimated Fair
        Gross   Gross     Value (Net
        Unrealized   Unrealized     Carrying
    Amortized Cost   Gains   Losses     Amount)
 
Cash and Cash Equivalents $ 9,626 $ - $ -   $ 9,626
Money-Market Funds   17,700   -   -     17,700
Corporate Debt Securities   64,227   23   (38 )   64,212
U.S. Treasury Securities   45,768   13   -     45,781
Agency Discount Notes   16,588   5   (2 )   16,591
Commercial Paper   61,128   24   (7 )   61,145
Total Securities $ 215,037 $ 65 $ (47 ) $ 215,055

 

     The Company's specifically identified gross unrealized losses of $47 thousand relates to 28 different securities with total amortized costs of approximately $61.8 million at March 26, 2011. The securities with


gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 26, 2011.

     The Company has determined that the only assets and liabilities in the Company's financial statements that are required to be measured at fair value on a recurring basis are the Company's cash and investment portfolio assets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

• Level 1 - Quoted prices in active markets for identical assets or liabilities.

• Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

     The Company's investment portfolio assets consist of U.S. Treasury securities, obligations of U.S. government-sponsored enterprises, corporate debt, commercial paper, and money-market funds, and are reflected on our consolidated condensed balance sheet under the headings cash and cash equivalents, restricted investments, marketable securities, and long-term marketable securities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. The Company began classifying certain of its available-for-sale marketable securities as Level 2 in the second quarter of fiscal year 2012. Prior to the quarterly period ending September 24, 2011, the Company classified all investment portfolio assets as Level 1 inputs. These changes in the disclosed classification had no effect on the reported fair values of these investments. Prior period amounts have been reclassified to be properly presented. The Company has no Level 3 assets. Except as noted above, there were no transfers between Level 1, Level 2, or Level 3 measurements for the three or nine month period ending December 31, 2011.

     The fair value of our financial assets, which are all classified as available-for-sale securities, at December 31, 2011, was determined using the following inputs (in thousands):

    Quoted Prices            
    in Active   Significant        
    Markets for   Other   Significant    
    Identical   Observable   Unobservable    
    Assets Level   Inputs   Inputs    
Description   1   Level 2   Level 3   Total
 
Money-Market Funds $ 27,220 $ - $ - $ 27,220
Corporate Debt Securities   -   59,640   -   59,640
U.S. Treasury Securities   24,147   -   -   24,147
Agency Discount Notes   -   17,838   -   17,838
Commercial Paper   -   19,831   -   19,831
  $ 51,367 $ 97,309 $ - $ 148,676

 


     The fair value of our financial assets, which are all classified as available-for-sale securities, at March 26, 2011, was determined using the following inputs (in thousands):

    Quoted Prices            
    in Active   Significant        
    Markets for   Other   Significant    
    Identical   Observable   Unobservable    
    Assets Level   Inputs   Inputs    
Description   1   Level 2   Level 3   Total
 
Money-market funds $ 17,700 $ - $ - $ 17,700
Corporate debt securities   -   64,212   -   64,212
U.S. Treasury securities   45,781   -   -   45,781
Agency discount notes   -   16,591   -   16,591
Commercial paper   -   61,145   -   61,145
  $ 63,481 $ 141,948 $ - $ 205,429

 

Accounts Receivable, Net
Accounts Receivable, Net

4. Accounts Receivable, net

The following are the components of accounts receivable, net (in thousands):

    December 31,     March 26,  
    2011     2011  
 
Gross accounts receivable $ 55,079   $ 39,519  
Allowance for doubtful accounts   (567 )   (421 )
  $ 54,512   $ 39,098  

 

     The net average days sales outstanding calculated as of December 31, 2011, and March 26, 2011, were 37 days and 38 days, respectively.

Inventories
Inventories

5. Inventories

Inventories are comprised of the following (in thousands):

    December 31,   March 26,
    2011   2011
 
Work in process $ 31,967 $ 22,048
Finished goods   26,112   18,449
  $ 58,079 $ 40,497

 

     The increase in inventory balances at December 31, 2011, as compared to March 26, 2011, is primarily related to the expected increased demand for our products, and reflects planned inventory builds.

Income Taxes
Income Taxes

6. Income Taxes


     We recorded income tax expense of $9.7 million and $21.8 million for the third quarter and first nine months of fiscal year 2012, both of which were primarily non-cash, on pre-tax income of $26.4 million and $58.9 million, respectively, yielding effective tax rates of 36.7 percent and 36.9 percent, respectively. Our income tax expense for the third quarter and first nine months of fiscal year 2012 is based on estimated effective tax rates derived from an estimate of consolidated earnings before taxes, adjusted for nondeductible expenses and other permanent differences for fiscal year 2012. The estimated effective tax rates were impacted primarily by the worldwide mix of consolidated earnings before taxes. Our income tax expense for the third quarter and first nine months of fiscal year 2012 was slightly above the federal statutory rate primarily due to the effect of state income taxes and nondeductible expenses.

     We recorded an income tax benefit of $1.3 million and $2.8 million for the third quarter and first nine months of fiscal year 2011, respectively, yielding an effective tax benefit rate of 5.7 percent and 4.0 percent, respectively. Our income tax benefit for the third quarter and first nine months of fiscal year 2011 is based on an estimated effective tax rate derived from an estimate of consolidated earnings before taxes for fiscal year 2011. The estimated effective tax rate was impacted primarily by the worldwide mix of consolidated earnings before taxes and an assessment regarding the ability to realize our deferred tax assets. This assessment resulted in a $1.8 million and $4.1 million net increase in deferred tax assets for the three and nine month periods ended December 25, 2010, respectively. Our income tax expense for the third quarter and first nine months of fiscal year 2011 was less than the Federal statutory rate primarily as a result of the utilization of a portion of our U.S. deferred tax asset and related valuation allowance.

     At December 31, 2011, the Company has a valuation allowance of $68.4 million against deferred tax assets. Of that amount, there is approximately $30.5 million of deferred tax assets that may never be recognized because they pertain to federal or state tax credits that may expire before being utilized. We evaluate our ability to realize our deferred tax assets on a quarterly basis.

     We had no unrecognized tax benefits as of December 31, 2011. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2011, the balance of accrued interest and penalties was zeroNo interest or penalties were incurred during the first nine months of fiscal year 2012.

     The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. Fiscal years 2009 through 2011 remain open to examination by the major taxing jurisdictions to which we are subject.

Net Income Per Share
Net Income Per Share

7. Net Income Per Share

     Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive items outstanding.

     The weighted average outstanding options excluded from our diluted calculation for the three months ended December 31, 2011, and December 25, 2010, were 1,254,000, and 888,000, respectively, as the strike price of the options exceeded the average market price during the respective periods. The weighted average outstanding options excluded from our diluted calculation for the nine months ended December 31, 2011, and December 25, 2010, were 1,043,000, and 641,000, respectively, as the strike price of the options exceeded the average market price during the respective periods.

Restructuring And Other Costs, Net
Restructuring And Other Costs, Net

8. Restructuring And Other Costs, Net

     The Company's remaining restructuring initiative relates to our facilities abandonment activities which commenced in fiscal year 2004. For the quarter ending December 25, 2010, the Company recognized a $0.4 million release for changed assumptions on future rent occupation and sublease income. For the first nine months of fiscal year 2011, we incurred a net reduction in the fiscal year 2004 restructuring accrual in the amount of $0.8 million. The net reduction reflects cash payments of $0.9 million, partially offset by an additional accrual of $0.1 million for recurring accretion activity and a six thousand dollar net charge for changed assumptions on future sublease income. The entries to record the changed sublease assumptions are reflected as a separate line item on the consolidated condensed statement of operations in operating expenses under the heading "Restructuring and other costs, net."

 

     As of December 31, 2011, we had a remaining accrual from all of our past restructurings of $0.2 million, primarily related to net lease expenses that will be paid over the lease terms through the summer of calendar year 2012, along with other anticipated lease termination costs. The remaining balance is classified as a short term restructuring accrual.

Impairment Of Non-Marketable Securities
Impairment Of Non-Marketable Securities

9. Impairment of Non-Marketable Securities

     In the second quarter of fiscal year 2011, the Company recognized a loss on the impairment of an equity investment in the amount of $0.5 million. Our original investment was in the form of a note receivable, which was then converted into an equity security. After the conversion, we determined that an impairment indicator existed related to our cost method investment. We performed a fair value analysis of our cost method investment in accordance with FASB ASC Topic 320 - "Investments – Debt and Equity Securities." Based on the results of this analysis as of December 25, 2010, we recognized an impairment of $0.5 million to reduce the carrying value of the cost method investment to zero. The impairment was recorded as a separate line item on the consolidated condensed statement of operations in operating expenses under the caption "Impairment of non-marketable securities."

Patent Agreement, Net
Patent Agreement, Net

10. Patent Agreement, Net

     On July 13, 2010, we entered into a Patent Purchase Agreement for the sale of certain Company owned patents. As a result of this agreement, on August 31, 2010, the Company received cash consideration of $4.0 million from the purchaser. The proceeds were recorded as a recovery of costs previously incurred and are reflected as a separate line item on the consolidated condensed statement of operations in operating expenses under the caption "Patent agreement, net."

Legal Matters
Legal Matters

11. Legal Matters

     From time to time, we are involved in legal proceedings concerning matters arising in connection with the conduct of our business activities. We regularly evaluate the status of legal proceedings in which we are involved, to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred and determine if accruals are appropriate. We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made, if accruals are not appropriate.

     For certain cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition. However, the ultimate resolutions of these various proceedings and matters are inherently


difficult to predict; as such, our operating results could be materially affected by the unfavorable resolution of one or more of these proceedings or matters for any particular period, depending, in part, upon the operating results for such period.

     On September 1, 2011, HSM Portfolio LLC and Technology Properties Limited LLC (collectively, the "Plaintiffs") filed suit against Cirrus Logic and 17 other defendants in the U.S. District Court, District of Delaware. The Plaintiffs allege that Cirrus Logic infringed U.S. Patent No. 5,030,853. In their complaint, the Plaintiffs indicated that they are seeking unspecified monetary damages, including up to treble damages for willful infringement. On November 30, 2011, Cirrus Logic filed a motion to dismiss certain claims of the Plaintiffs' suit for failure to state a claim. Until the Court rules on this motion, Cirrus Logic's answer will not be due.

     During the first quarter of fiscal year 2011, the Company incurred $135 thousand in settlement costs related to a dispute with a former distributor of the Company's products. This transaction is reflected as a separate line item on the consolidated condensed statement of operations in operating expenses under the caption "Provision for litigation expenses and settlements."

Stockholder's Equity
Stockholder's Equity

12. Stockholders' Equity

Common Stock

     The Company issued 102 thousand and 261 thousand shares of common stock, respectively, for the three and nine month periods ending December 31, 2011, in connection with stock option exercises during the current fiscal year, as well as for grants to certain members of our Board of Directors. The Company issued 0.4 million and 3.7 million shares of common stock, respectively, for the three and nine month periods ending December 25, 2010, in connection with stock option exercises during the prior fiscal year.

Comprehensive Income

The components of comprehensive income, net of tax, are as follows (in thousands):

    Three Months Ended     Nine Months Ended  
    December 31, December 25,     December 31,     December 25,  
    2011   2010     2011     2010  
Net income $ 16,731 $ 24,621   $ 37,156   $ 73,097  
Adjustments to arrive at comprehensive                      
income:                      
Change in unrealized gain (loss) on                      
marketable securities   63   (98 )   (67 )   (71 )
Comprehensive income $ 16,794 $ 24,523   $ 37,089   $ 73,026  

 

Share Repurchase Program

     On November 4, 2010, we announced an $80 million share repurchase program had been approved by our Board of Directors. To date, we have repurchased 5.1 million shares at a cost of $79.5 million, or an average price of $15.51 per share. Of this total, during the current fiscal year we have repurchased 4.9 million shares at a cost of $76.8 million, or an average cost of $15.63 per share. As of December 31, 2011, approximately $0.5 million remains available for share repurchases under this $80 million share repurchase program. All shares of our common stock that were repurchased were cancelled and retired.

Segment Information
Segment Information

13. Segment Information


     We determine our operating segments in accordance with FASB ASC Topic 280, "Segment Reporting." Our Chief Executive Officer ("CEO") has been identified as the chief operating decision maker as defined by FASB ASC Topic 280.

     The Company operates and tracks its results in one reportable segment based on the aggregation of activity from its two product lines under ASC Topic 280. Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level. Additionally, our product lines have similar characteristics and customers. They share operations support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology. Therefore, there is no complete, discrete financial information maintained for these product lines.

Revenue from our product lines are as follows (in thousands):

    Three Months Ended   Nine Months Ended
    December 31, December 25,   December 31, December 25,
    2011   2010   2011   2010
 
Audio Products $ 105,418 $ 72,716 $ 260,220 $ 197,875
Energy Products   16,950   22,909   55,992   80,263
  $ 122,368 $ 95,625 $ 316,212 $ 278,138

 

Fair Value Of Financial Instruments (Tables)
9 Months Ended
Dec. 31, 2011
12 Months Ended
Mar. 26, 2011
                  Estimated Fair
        Gross   Gross     Value (Net
        Unrealized   Unrealized     Carrying
    Amortized Cost   Gains   Losses     Amount)
 
Cash and Cash Equivalents $ 11,666 $ - $ -   $ 11,666
Money-Market Funds   27,220   -   -     27,220
Corporate Debt Securities   59,694   10   (64 )   59,640
U.S. Treasury Securities   24,143   4   -     24,147
Agency Discount Notes   17,831   8   (1 )   17,838
Commercial Paper   19,840   2   (11 )   19,831
Total Securities $ 160,394 $ 24 $ (76 ) $ 160,342
                  Estimated Fair
        Gross   Gross     Value (Net
        Unrealized   Unrealized     Carrying
    Amortized Cost   Gains   Losses     Amount)
 
Cash and Cash Equivalents $ 9,626 $ - $ -   $ 9,626
Money-Market Funds   17,700   -   -     17,700
Corporate Debt Securities   64,227   23   (38 )   64,212
U.S. Treasury Securities   45,768   13   -     45,781
Agency Discount Notes   16,588   5   (2 )   16,591
Commercial Paper   61,128   24   (7 )   61,145
Total Securities $ 215,037 $ 65 $ (47 ) $ 215,055
    Quoted Prices            
    in Active   Significant        
    Markets for   Other   Significant    
    Identical   Observable   Unobservable    
    Assets Level   Inputs   Inputs    
Description   1   Level 2   Level 3   Total
 
Money-Market Funds $ 27,220 $ - $ - $ 27,220
Corporate Debt Securities   -   59,640   -   59,640
U.S. Treasury Securities   24,147   -   -   24,147
Agency Discount Notes   -   17,838   -   17,838
Commercial Paper   -   19,831   -   19,831
  $ 51,367 $ 97,309 $ - $ 148,676
    Quoted Prices            
    in Active   Significant        
    Markets for   Other   Significant    
    Identical   Observable   Unobservable    
    Assets Level   Inputs   Inputs    
Description   1   Level 2   Level 3   Total
 
Money-market funds $ 17,700 $ - $ - $ 17,700
Corporate debt securities   -   64,212   -   64,212
U.S. Treasury securities   45,781   -   -   45,781
Agency discount notes   -   16,591   -   16,591
Commercial paper   -   61,145   -   61,145
  $ 63,481 $ 141,948 $ - $ 205,429
Accounts Receivable, Net (Tables)
Components Of Accounts Receivable, Net
    December 31,     March 26,  
    2011     2011  
 
Gross accounts receivable $ 55,079   $ 39,519  
Allowance for doubtful accounts   (567 )   (421 )
  $ 54,512   $ 39,098  
Inventories (Tables)
Schedule Of Inventories
    December 31,   March 26,
    2011   2011
 
Work in process $ 31,967 $ 22,048
Finished goods   26,112   18,449
  $ 58,079 $ 40,497
Stockholder's Equity (Tables)
Components Of Comprehensive Income
    Three Months Ended     Nine Months Ended  
    December 31, December 25,     December 31,     December 25,  
    2011   2010     2011     2010  
Net income $ 16,731 $ 24,621   $ 37,156   $ 73,097  
Adjustments to arrive at comprehensive                      
income:                      
Change in unrealized gain (loss) on                      
marketable securities   63   (98 )   (67 )   (71 )
Comprehensive income $ 16,794 $ 24,523   $ 37,089   $ 73,026  
Segment Information (Tables)
Schedule Of Segment Revenue From Product Lines
    Three Months Ended   Nine Months Ended
    December 31, December 25,   December 31, December 25,
    2011   2010   2011   2010
 
Audio Products $ 105,418 $ 72,716 $ 260,220 $ 197,875
Energy Products   16,950   22,909   55,992   80,263
  $ 122,368 $ 95,625 $ 316,212 $ 278,138
Fair Value Of Financial Instruments (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2011
Mar. 26, 2011
Schedule of Available-for-sale Securities [Line Items]
 
 
Minimum maturity period of investments to be classified as available-for-sale securities, days
90 
 
Gross unrealized losses
$ 76 
$ 47 
Amortized costs
160,394 
215,037 
29 Different Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Gross unrealized losses
76 
 
Amortized costs
62,300 
 
Number of securities
29 
 
28 Different Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Gross unrealized losses
 
47 
Amortized costs
 
$ 61,800 
Number of securities
 
28 
Fair Value Of Financial Instruments (Schedule Of Cash And Marketable Securities) (Details) (USD $)
In Thousands
Dec. 31, 2011
Mar. 26, 2011
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Amortized Cost
$ 160,394 
$ 215,037 
Gross Unrealized Gains
24 
65 
Gross Unrealized Losses
(76)
(47)
Estimated Fair Value (Net Carrying Amount)
160,342 
215,055 
Cash And Cash Equivalents [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Amortized Cost
11,666 
9,626 
Estimated Fair Value (Net Carrying Amount)
11,666 
9,626 
Money-Market Funds [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Amortized Cost
27,220 
17,700 
Estimated Fair Value (Net Carrying Amount)
27,220 
17,700 
Corporate Debt Securities [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Amortized Cost
59,694 
64,227 
Gross Unrealized Gains
10 
23 
Gross Unrealized Losses
(64)
(38)
Estimated Fair Value (Net Carrying Amount)
59,640 
64,212 
U.S. Treasury Securities [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Amortized Cost
24,143 
45,768 
Gross Unrealized Gains
13 
Estimated Fair Value (Net Carrying Amount)
24,147 
45,781 
Agency Discount Notes [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Amortized Cost
17,831 
16,588 
Gross Unrealized Gains
Gross Unrealized Losses
(1)
(2)
Estimated Fair Value (Net Carrying Amount)
17,838 
16,591 
Commercial Paper [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Amortized Cost
19,840 
61,128 
Gross Unrealized Gains
24 
Gross Unrealized Losses
(11)
(7)
Estimated Fair Value (Net Carrying Amount)
$ 19,831 
$ 61,145 
Fair Value Of Financial Instruments (Schedule Of Fair Value Of Financial Assets) (Details) (USD $)
In Thousands
Dec. 31, 2011
Mar. 26, 2011
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
$ 148,676 
$ 205,429 
Money-Market Funds [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
27,220 
17,700 
Money-Market Funds [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
27,220 
17,700 
Money-Market Funds [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Money-Market Funds [Member] |
Significant Unobservable Inputs Level 3 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Corporate Debt Securities [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
59,640 
64,212 
Corporate Debt Securities [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Corporate Debt Securities [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
59,640 
64,212 
Corporate Debt Securities [Member] |
Significant Unobservable Inputs Level 3 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
U.S. Treasury Securities [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
24,147 
45,781 
U.S. Treasury Securities [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
24,147 
45,781 
U.S. Treasury Securities [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
U.S. Treasury Securities [Member] |
Significant Unobservable Inputs Level 3 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Agency Discount Notes [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
17,838 
16,591 
Agency Discount Notes [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Agency Discount Notes [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
17,838 
16,591 
Agency Discount Notes [Member] |
Significant Unobservable Inputs Level 3 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Commercial Paper [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
19,831 
61,145 
Commercial Paper [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Commercial Paper [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
19,831 
61,145 
Commercial Paper [Member] |
Significant Unobservable Inputs Level 3 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
51,367 
63,481 
Significant Other Observable Inputs Level 2 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
97,309 
141,948 
Significant Unobservable Inputs Level 3 [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Fair value of financial assets
 
 
Accounts Receivable, Net (Narrative) (Details)
Dec. 31, 2011
days
Mar. 26, 2011
days
Accounts Receivable, Net [Abstract]
 
 
Average days sales outstanding, net
37 
38 
Accounts Receivable, Net (Components Of Accounts Receivable, Net) (Details) (USD $)
In Thousands
Dec. 31, 2011
Mar. 26, 2011
Accounts Receivable, Net [Abstract]
 
 
Gross accounts receivable
$ 55,079 
$ 39,519 
Allowance for doubtful accounts
(567)
(421)
Accounts receivable, net
$ 54,512 
$ 39,098 
Inventories (Schedule Of Inventories) (Details) (USD $)
In Thousands
Dec. 31, 2011
Mar. 26, 2011
Inventories [Abstract]
 
 
Work in process
$ 31,967 
$ 22,048 
Finished goods
26,112 
18,449 
Total inventories
$ 58,079 
$ 40,497 
Income Taxes (Details) (USD $)
3 Months Ended
Dec. 31, 2011
3 Months Ended
Dec. 25, 2010
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
Income Taxes [Abstract]
 
 
 
 
Income tax expense (benefit)
$ 9,709,000 
$ (1,332,000)
$ 21,755,000 
$ (2,775,000)
Pre-tax income
26,440,000 
23,289,000 
58,911,000 
70,322,000 
Increase in deferred tax assets
 
1,800,000 
 
4,100,000 
Effective tax rate
36.70% 
5.70% 
36.90% 
4.00% 
Valuation allowance against deferred tax assets
68,400,000 
 
68,400,000 
 
Deferred tax assets that may not be recognized
30,500,000 
 
30,500,000 
 
Unrecognized tax benefit
 
 
Accrued interest and penalties
 
 
Interest and penalties incurred during period
 
 
$ 0 
 
Net Income Per Share (Details)
3 Months Ended
Dec. 31, 2011
3 Months Ended
Dec. 25, 2010
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
Net Income Per Share [Abstract]
 
 
 
 
Weighted average outstanding options excluded from diluted calculation
1,254,000 
888,000 
1,043,000 
641,000 
Restructuring And Other Costs, Net (Details) (USD $)
3 Months Ended
Dec. 25, 2010
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
Restructuring And Other Costs, Net [Abstract]
 
 
 
Restructuring and other costs, net
$ 400,000 
$ 6,000 
 
Net reduction in restructuring accrual
 
 
800,000 
Net reduction reflects cash payments
 
 
900,000 
Restructuring additional accrual offset
 
 
100,000 
Remaining restructuring accrual
 
$ 200,000 
 
Impairment Of Non-Marketable Securities (Details) (USD $)
3 Months Ended
Sep. 25, 2010
9 Months Ended
Dec. 25, 2010
Impairment Of Non-Marketable Securities [Abstract]
 
 
Loss on an impairment of an equity investment
$ 500,000 
 
Carrying value of cost method investment
 
Impairment of non-marketable securities
 
$ 500,000 
Patent Agreement, Net (Details) (USD $)
In Thousands
1 Months Ended
Aug. 31, 2010
9 Months Ended
Dec. 25, 2010
Patent Agreement, Net [Abstract]
 
 
Cash consideration received recorded as recovery of costs previously incurred
$ 4,000 
$ 4,000 
Legal Matters (Details) (USD $)
In Thousands
3 Months Ended
Dec. 25, 2010
3 Months Ended
Jun. 26, 2010
9 Months Ended
Dec. 25, 2010
Legal Matters [Abstract]
 
 
 
Provision for litigation expenses and settlements
$ (30)
$ 135 
$ 105 
Stockholder's Equity (Narrative) (Details) (USD $)
In Millions, except Share data
0 Months Ended
Nov. 4, 2010
3 Months Ended
Dec. 31, 2011
3 Months Ended
Dec. 25, 2010
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
14 Months Ended
Dec. 31, 2011
Stockholder's Equity [Abstract]
 
 
 
 
 
 
Shares of common stock issued for stock option exercises
 
102,000 
400,000 
261,000 
3,700,000 
 
Share repurchase program, amount approved
$ 80 
 
 
 
 
 
Shares repurchased
 
 
 
4,900,000 
 
5,100,000 
Shares repurchased, value
 
 
 
76.8 
 
79.5 
Average cost per share repurchased
 
 
 
$ 15.63 
 
$ 15.51 
Remaining amount available for share repurchases under stock repurchase program
 
 
 
$ 0.5 
 
 
Stockholder's Equity (Components Of Comprehensive Income) (Details) (USD $)
In Thousands
3 Months Ended
Dec. 31, 2011
3 Months Ended
Dec. 25, 2010
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
Stockholder's Equity [Abstract]
 
 
 
 
Net income
$ 16,731 
$ 24,621 
$ 37,156 
$ 73,097 
Change in unrealized gain (loss) on marketable securities
63 
(98)
(67)
(71)
Comprehensive income
$ 16,794 
$ 24,523 
$ 37,089 
$ 73,026 
Segment Information (Schedule Of Segment Revenue From Product Lines) (Details) (USD $)
In Thousands
3 Months Ended
Dec. 31, 2011
3 Months Ended
Dec. 25, 2010
9 Months Ended
Dec. 31, 2011
9 Months Ended
Dec. 25, 2010
Segment Reporting Information [Line Items]
 
 
 
 
Product revenue
$ 122,368 
$ 95,625 
$ 316,212 
$ 278,138 
Audio Products [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product revenue
105,418 
72,716 
260,220 
197,875 
Energy Products [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product revenue
$ 16,950 
$ 22,909 
$ 55,992 
$ 80,263