CIRRUS LOGIC INC, 10-Q filed on 10/31/2012
Quarterly Report
Document And Entity Information
6 Months Ended
Sep. 29, 2012
Oct. 25, 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
Sep. 29, 2012 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q2 
 
Current Fiscal Year End Date
--03-30 
 
Entity Common Stock, Shares Outstanding
 
65,486,959 
Consolidated Condensed Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Mar. 31, 2012
Assets
 
 
Cash and cash equivalents
$ 67,846 
$ 65,997 
Marketable securities
66,731 
115,877 
Accounts receivable, net
130,870 
44,153 
Inventories
144,881 
55,915 
Deferred tax assets
53,144 
53,137 
Other current assets
19,845 
16,508 
Total current assets
483,317 
351,587 
Long-term marketable securities
2,914 
Property and equipment, net
86,992 
66,978 
Goodwill and intangibles, net
11,235 
24,268 
Deferred tax assets
72,150 
89,071 
CAD agreement
9,716 
Other assets
11,686 
9,644 
Total assets
675,096 
544,462 
Liabilities and Stockholders' Equity
 
 
Accounts payable
103,366 
38,108 
Accrued salaries and benefits
15,594 
13,634 
Deferred income
6,580 
7,228 
Supplier agreement
5,000 
Other accrued liabilities
14,218 
9,015 
Total current liabilities
139,758 
72,985 
CAD agreement
5,804 
Other long-term liabilities
4,238 
5,620 
Stockholders' equity:
 
 
Capital stock
1,025,272 
1,008,228 
Accumulated deficit
(499,233)
(541,609)
Accumulated other comprehensive loss
(743)
(762)
Total stockholders' equity
525,296 
465,857 
Total liabilities and stockholders' equity
$ 675,096 
$ 544,462 
Consolidated Condensed Statements Of Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 29, 2012
Sep. 24, 2011
Sep. 29, 2012
Sep. 24, 2011
Consolidated Condensed Statements Of Comprehensive Income [Abstract]
 
 
 
 
Net sales
$ 193,774 
$ 101,602 
$ 292,780 
$ 193,844 
Cost of sales
93,687 
47,247 
139,253 
91,780 
Gross margin
100,087 
54,355 
153,527 
102,064 
Operating expenses
 
 
 
 
Research and development
29,468 
19,682 
54,378 
38,449 
Selling, general and administrative
20,194 
16,760 
38,253 
31,366 
Total operating expenses
49,662 
36,442 
92,631 
69,815 
Income from operations
50,425 
17,913 
60,896 
32,249 
Interest income, net
131 
112 
258 
266 
Other income (expense), net
(40)
(27)
(63)
(44)
Income before income taxes
50,516 
17,998 
61,091 
32,471 
Provision for income taxes
15,067 
6,751 
18,715 
12,046 
Net income
35,449 
11,247 
42,376 
20,425 
Change in unrealized gain (loss) on marketable securities
17 
(135)
19 
(131)
Change in unrealized loss on foreign currency translation adjustments
Comprehensive income
$ 35,466 
$ 11,112 
$ 42,395 
$ 20,294 
Basic earnings per share
$ 0.55 
$ 0.17 
$ 0.65 
$ 0.31 
Diluted earnings per share
$ 0.51 
$ 0.17 
$ 0.61 
$ 0.30 
Basic weighted average common shares outstanding
64,924 
64,426 
64,697 
65,763 
Diluted weighted average common shares outstanding
69,207 
67,265 
68,920 
68,657 
Consolidated Condensed Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Sep. 29, 2012
Sep. 24, 2011
Cash flows from operating activities:
 
 
Net income
$ 42,376 
$ 20,425 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
7,150 
4,656 
Stock compensation expense
9,734 
5,958 
Deferred income taxes
16,914 
11,135 
Gain (loss) on retirement or write-off of long-lived assets
(431)
Other non-cash charges
2,246 
Net change in operating assets and liabilities:
 
 
Accounts receivable, net
(86,813)
(5,800)
Inventories
(93,187)
(9,055)
Other assets
(5,340)
(4,159)
Accounts payable and other accrued liabilities
58,993 
11,446 
Deferred income
(648)
2,490 
Income taxes payable
193 
(36)
Net cash (used in) provided by operating activities
(48,813)
37,063 
Cash flows from investing activities:
 
 
Proceeds from sale of available for sale marketable securities
58,058 
133,763 
Purchases of available for sale marketable securities
(5,979)
(70,497)
Purchases of property, equipment and software
(28,936)
(18,404)
Proceeds from sale of Apex
22,220 
 
Investments in technology
(2,489)
(6,381)
Decrease in restricted investments
2,888 
(Increase) decrease in deposits and other assets
478 
(93)
Net cash provided by investing activities
43,352 
41,276 
Cash flows from financing activities:
 
 
Repurchase and retirement of common stock
(76,782)
Issuance of common stock, net of issuance costs
7,310 
672 
Net cash provided by (used in) financing activities
7,310 
(76,110)
Net increase in cash and cash equivalents
1,849 
2,229 
Cash and cash equivalents at beginning of period
65,997 
37,039 
Cash and cash equivalents at end of period
$ 67,846 
$ 39,268 
Basis Of Presentation
Basis Of Presentation

1.Basis of Presentation

 

The consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. (“Cirrus Logic,” “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 31, 2012, included in our Annual Report on Form 10-K filed with the Commission on May 30, 2012.  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 2012 presentation to conform to the fiscal year 2013 presentation.  This reclassification had no effect on the results of operations or stockholders’ equity.

Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements

2.Recently Issued Accounting Pronouncements

 

In May 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (ASC Topic 220) — Presentation of Comprehensive Income.  With this update, 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 ASU should be applied retrospectively, and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  The Company adopted this guidance in the first quarter of fiscal year 2013.  The adoption of this ASU affects financial statement presentation only, and does not have a material impact on our consolidated financial position, results of operations or cash flows.

Marketable Securities
Marketable Securities

3.Marketable Securities

 

The Company’s investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with U.S. GAAP.  Marketable securities are categorized on the consolidated condensed balance sheet as short- and long-term marketable securities, as appropriate.

 

The following table is a summary of available-for-sale securities at September 29, 2012 (in thousands): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

 

Gross

 

Gross

 

Fair Value

 

Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

 

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

29,965 

 

$

17 

 

$

(3)

 

$

29,979 

U.S. Treasury securities

 

16,729 

 

 

 

 

(1)

 

 

16,730 

Agency discount notes

 

8,503 

 

 

 

 

 -

 

 

8,504 

Commercial paper

 

11,509 

 

 

 

 

 -

 

 

11,518 

Total securities

$

66,706 

 

$

29 

 

$

(4)

 

$

66,731 

 

The Company’s specifically identified gross unrealized losses of $4 thousand relate to 12 different securities with total amortized cost of approximately $25.5 million at September 29, 2012.  Because the Company does not intend to sell the investments at a loss and the Company will not be required to sell the investments before recovery of its amortized cost basis, it did not consider the investment in these securities to be other-than-temporarily impaired at September 29, 2012.  Further, the securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of September 29, 2012.  All of the Company’s available-for-sale investments have contractual maturities of less than one year at September 29, 2012.

 

The following table is a summary of available-for-sale securities at March 31, 2012 (in thousands): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

 

Gross

 

Gross

 

Fair Value

 

Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

 

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

48,011 

 

$

33 

 

$

(19)

 

$

48,025 

U.S. Treasury securities

 

30,264 

 

 

 

 

(4)

 

 

30,261 

Agency discount notes

 

16,789 

 

 

 

 

(1)

 

 

16,796 

Commercial paper

 

23,719 

 

 

 

 

(15)

 

 

23,709 

Total securities

$

118,783 

 

$

47 

 

$

(39)

 

$

118,791 

 

The Company’s specifically identified gross unrealized losses of $39 thousand relate to 37 different securities with total amortized cost of approximately $72.6 million at March 31, 2012.  Because the Company does not intend to sell the investments at a loss and the Company will not be required to sell the investments before recovery of its amortized cost basis, it did not consider the investment in these securities to be other-than-temporarily impaired at March 31, 2012.  Further, the securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 31, 2012.

Fair Value Of Financial Instruments
Fair Value Of Financial Instruments

4.Fair Value of Financial Instruments

 

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 equivalents 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 money market funds, commercial paper, corporate debt, U.S. Treasury securities, and obligations of U.S. government-sponsored enterprises, and are reflected on our consolidated condensed balance sheet under the headings cash and cash equivalents, 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. As of September 29, 2012, the Company classified its investment portfolio assets as Level 1 or Level 2 inputs.  The Company has no Level 3 assets.  There were no transfers between Level 1, Level 2, or Level 3 measurements for the six month period ending September 29, 2012.

 

The fair value of our financial assets at September 29, 2012, was determined using the following inputs (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

in Active

 

Significant

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Identical

 

Observable

 

Unobservable

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

28,736 

 

$

 -

 

$

 -

 

$

28,736 

U.S. Treasury securities

 

15,000 

 

 

 -

 

 

 -

 

 

15,000 

Commercial paper

 

 -

 

 

8,899 

 

 

 -

 

 

8,899 

 

$

43,736 

 

$

8,899 

 

$

 -

 

$

52,635 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

29,979 

 

$

 -

 

$

29,979 

U.S. Treasury securities

 

16,730 

 

 

 -

 

 

 -

 

 

16,730 

Agency discount notes

 

 -

 

 

8,504 

 

 

 -

 

 

8,504 

Commercial paper

 

 -

 

 

11,518 

 

 

 -

 

 

11,518 

 

$

16,730 

 

$

50,001 

 

$

 -

 

$

66,731 

 

The fair value of our financial assets  at March 31, 2012, was determined using the following inputs (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

in Active

 

Significant

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Identical

 

Observable

 

Unobservable

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

40,557 

 

$

 -

 

$

 -

 

$

40,557 

Commercial paper

 

 -

 

 

15,952 

 

 

 -

 

 

15,952 

Corporate debt securities

 

 -

 

 

1,112 

 

 

 -

 

 

1,112 

 

$

40,557 

 

$

17,064 

 

$

 -

 

$

57,621 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

48,025 

 

$

 -

 

$

48,025 

U.S. Treasury securities

 

30,261 

 

 

 -

 

 

 -

 

 

30,261 

Agency discount notes

 

 -

 

 

16,796 

 

 

 -

 

 

16,796 

Commercial paper

 

 -

 

 

23,709 

 

 

 -

 

 

23,709 

 

$

30,261 

 

$

88,530 

 

$

 -

 

$

118,791 

 

Accounts Receivable, Net
Accounts Receivable, Net

5.Accounts Receivable, net

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

September 29,

 

March 31,

 

2012

 

2012

Gross accounts receivable

$

131,166 

 

$

44,524 

Allowance for doubtful accounts

 

(296)

 

 

(371)

 

$

130,870 

 

$

44,153 

 

Inventories
Inventories

6.Inventories

 

Inventories are comprised of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

September 29,

 

March 31,

 

2012

 

2012

Work in process

$

71,427 

 

$

30,921 

Finished goods

 

73,454 

 

 

24,994 

 

$

144,881 

 

$

55,915 

 

The increase in inventory balances at September 29, 2012, as compared to March 31, 2012, is primarily related to the expected increased demand for our products, and reflects planned inventory builds.

Asset Sale
Asset Sale

7.   Asset Sale

 

The Company entered into an agreement to sell certain assets associated with Apex Precision Power (“Apex”) products in Tucson, Arizona for $26.1 million.  On August 17, 2012, the Company closed the transaction under this agreement.  After closing the transaction, the Company continues to maintain a high voltage / high power IC design team in Tucson.  The Company received $22.2 million in cash and has recorded a long-term note receivable for $3.9 million to be paid in its entirety by August 17, 2014.

Revolving Line of Credit
Revolving Line Of Credit

8.    Revolving Line of Credit

 

On April 19, 2012, the Company entered into a revolving credit agreement (“Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and issuing lender, Barclays Bank, as syndication agent, Wells Fargo Securities, LLC and Barclays Capital, as joint lead arrangers and co-book managers.  The aggregate borrowing limit under the unsecured revolving credit facility is $100 million with a $15 million letter of credit sublimit and is intended to provide the Company with short-term borrowings for working capital and other general corporate purposes.  The interest rate payable is, at the Company's election, (i) a base rate plus the applicable margin, where the base rate is determined by reference to the highest of 1) the prime rate publicly announced by the administrative agent, 2) the Federal Funds Rate plus 0.50%, and 3) LIBOR for a one month period plus the difference between the applicable margin for LIBOR rate loans and the applicable margin for base rate loans, or (ii) the LIBOR rate plus the applicable margin that varies according to the leverage ratio of the borrower.  Certain representations and warranties are required under the Credit Agreement, and the borrower must be in compliance with specified financial covenants, including (i) the requirement that the Company maintain a ratio of consolidated funded indebtedness to consolidated EBITDA of not greater than 1.75 to 1.0, computed in accordance with the terms of the Credit Agreement, and (ii) a minimum ratio of consolidated EBITDA to consolidated interest expense of not less than 3.50 to 1.0.  At September 29, 2012, the Company was in compliance with these covenants.

 

At September 29, 2012, the Company had no outstanding amounts under the facility.    

Income Taxes
Income Taxes

9.    Income Taxes

 

Our provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items and any applicable credits.  Our income tax expense is primarily a  non-cash charge due to the utilization of U.S. net operating losses.

 

The following table presents the provision for income taxes and the effective tax rates (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

September 29,

 

September 24,

 

September 29,

 

September 24,

 

2012

 

2011

 

2012

 

2011

Income before income taxes

$

50,516 

 

$

17,998 

 

$

61,091 

 

$

32,471 

Provision for income taxes

$

15,067 

 

$

6,751 

 

$

18,715 

 

$

12,046 

Effective tax rate

 

29.8% 

 

 

37.5% 

 

 

30.6% 

 

 

37.1% 

 

 

Our income tax expense for the second quarter and first six months of fiscal year 2013 was below the federal statutory rate primarily due to the release of valuation allowance on the Company’s deferred tax assets in the second quarter of fiscal year 2013.  The release was due to the sale of assets to Apex, which generated sufficient capital gain to utilize a capital loss carry forward that was previously expected to expire unutilized.  Our income tax expense for the second quarter and first six 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 had no unrecognized tax benefits as of September 29, 2012.  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 September 29, 2012, the balance of accrued interest and penalties was zeroNo interest or penalties were incurred during the first six months of fiscal year 2013.

 

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 2012 remain open to examination by the major taxing jurisdictions to which we are subject. 

Earnings Per Share
Earnings Per Share

10.Earnings Per Share

 

Basic earnings 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 earnings per share is calculated by dividing net income by the weighted average number of common shares used in the basic earnings per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive items outstanding.  These potentially dilutive items consist primarily of outstanding stock options and restricted stock units.

 

The weighted average outstanding options excluded from our diluted calculation for the three and six months ended September 24, 2011, were 953,000 and 917,000, respectively, as the strike price of the options exceeded the average market price during the periods.

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 the 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 June 4, 2012, U.S. Ethernet Innovations, LLC (the “Plaintiff”) filed suit against Cirrus Logic and two other defendants in the U.S. District Court, Eastern District of Texas.  The Plaintiff alleges that Cirrus Logic infringed four U.S. patents relating to Ethernet technology.  In its complaint, the Plaintiff indicated that it is seeking unspecified monetary damages, including up to treble damages for willful infringement.  We answered the complaint on June 29, 2012 denying the allegations of infringement and seeking a declaratory judgment that the patents in suit were invalid and not infringed.  On September 21, 2012, the Plaintiff amended its complaint to allege that we infringed on a fifth patent related to similar technology. 

Stockholder's Equity
Stockholder's Equity

12.    Stockholders’ Equity

 

The Company issued 0.9 million  and 1.1 million shares of common stock for the three and six month periods ending September 29, 2012, respectively, in connection with stock option exercises during the periods and grants to certain members of our Board of Directors.  The Company issued 0.1 million and 0.2 million shares of common stock, respectively, for the three and six month periods ended September 24, 2011, in connection with stock option exercises during the prior fiscal year, as well as for grants to certain members of our Board of Directors.

Segment Information
Segment Information

13.Segment Information

 

We determine our operating segments in accordance with FASB guidelines.  Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker under these guidelines

 

The Company operates and tracks its results in one reportable segment based on the aggregation of activity from its two product lines.  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

 

Six Months Ended

 

September 29,

 

September 24,

 

September 29,

 

September 24,

 

2012

 

2011

 

2012

 

2011

Audio Products

$

177,915 

 

$

83,683 

 

$

258,662 

 

$

154,802 

Energy Products

 

15,859 

 

 

17,919 

 

 

34,118 

 

 

39,042 

 

$

193,774 

 

$

101,602 

 

$

292,780 

 

$

193,844 

 

Marketable Securities (Tables)
Schedule Of Available-for-sale Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

 

Gross

 

Gross

 

Fair Value

 

Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

 

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

29,965 

 

$

17 

 

$

(3)

 

$

29,979 

U.S. Treasury securities

 

16,729 

 

 

 

 

(1)

 

 

16,730 

Agency discount notes

 

8,503 

 

 

 

 

 -

 

 

8,504 

Commercial paper

 

11,509 

 

 

 

 

 -

 

 

11,518 

Total securities

$

66,706 

 

$

29 

 

$

(4)

 

$

66,731 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

 

Gross

 

Gross

 

Fair Value

 

Amortized

 

Unrealized

 

Unrealized

 

(Net Carrying

 

Cost

 

Gains

 

Losses

 

Amount)

Corporate debt securities

$

48,011 

 

$

33 

 

$

(19)

 

$

48,025 

U.S. Treasury securities

 

30,264 

 

 

 

 

(4)

 

 

30,261 

Agency discount notes

 

16,789 

 

 

 

 

(1)

 

 

16,796 

Commercial paper

 

23,719 

 

 

 

 

(15)

 

 

23,709 

Total securities

$

118,783 

 

$

47 

 

$

(39)

 

$

118,791 

 

Fair Value of Financial Instruments (Tables)
Schedule Of Fair Value Of Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

in Active

 

Significant

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Identical

 

Observable

 

Unobservable

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

28,736 

 

$

 -

 

$

 -

 

$

28,736 

U.S. Treasury securities

 

15,000 

 

 

 -

 

 

 -

 

 

15,000 

Commercial paper

 

 -

 

 

8,899 

 

 

 -

 

 

8,899 

 

$

43,736 

 

$

8,899 

 

$

 -

 

$

52,635 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

29,979 

 

$

 -

 

$

29,979 

U.S. Treasury securities

 

16,730 

 

 

 -

 

 

 -

 

 

16,730 

Agency discount notes

 

 -

 

 

8,504 

 

 

 -

 

 

8,504 

Commercial paper

 

 -

 

 

11,518 

 

 

 -

 

 

11,518 

 

$

16,730 

 

$

50,001 

 

$

 -

 

$

66,731 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

in Active

 

Significant

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Identical

 

Observable

 

Unobservable

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

40,557 

 

$

 -

 

$

 -

 

$

40,557 

Commercial paper

 

 -

 

 

15,952 

 

 

 -

 

 

15,952 

Corporate debt securities

 

 -

 

 

1,112 

 

 

 -

 

 

1,112 

 

$

40,557 

 

$

17,064 

 

$

 -

 

$

57,621 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

$

 -

 

$

48,025 

 

$

 -

 

$

48,025 

U.S. Treasury securities

 

30,261 

 

 

 -

 

 

 -

 

 

30,261 

Agency discount notes

 

 -

 

 

16,796 

 

 

 -

 

 

16,796 

Commercial paper

 

 -

 

 

23,709 

 

 

 -

 

 

23,709 

 

$

30,261 

 

$

88,530 

 

$

 -

 

$

118,791 

 

Accounts Receivable, Net (Tables)
Components Of Accounts Receivable, Net

 

 

 

 

 

 

 

 

 

 

 

 

 

September 29,

 

March 31,

 

2012

 

2012

Gross accounts receivable

$

131,166 

 

$

44,524 

Allowance for doubtful accounts

 

(296)

 

 

(371)

 

$

130,870 

 

$

44,153 

 

Inventories (Tables)
Schedule Of Inventories

 

 

 

 

 

 

 

 

 

 

 

 

 

September 29,

 

March 31,

 

2012

 

2012

Work in process

$

71,427 

 

$

30,921 

Finished goods

 

73,454 

 

 

24,994 

 

$

144,881 

 

$

55,915 

 

Income Taxes (Tables)
Schedule of Provision for Income Taxes and Effective Tax Rates [Table Text Block]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

September 29,

 

September 24,

 

September 29,

 

September 24,

 

2012

 

2011

 

2012

 

2011

Income before income taxes

$

50,516 

 

$

17,998 

 

$

61,091 

 

$

32,471 

Provision for income taxes

$

15,067 

 

$

6,751 

 

$

18,715 

 

$

12,046 

Effective tax rate

 

29.8% 

 

 

37.5% 

 

 

30.6% 

 

 

37.1% 

 

Segment Information (Tables)
Schedule Of Segment Revenue From Product Lines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

September 29,

 

September 24,

 

September 29,

 

September 24,

 

2012

 

2011

 

2012

 

2011

Audio Products

$

177,915 

 

$

83,683 

 

$

258,662 

 

$

154,802 

Energy Products

 

15,859 

 

 

17,919 

 

 

34,118 

 

 

39,042 

 

$

193,774 

 

$

101,602 

 

$

292,780 

 

$

193,844 

 

Marketable Securities (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Mar. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
Gross unrealized losses
$ 4 
$ 39 
Amortized costs
66,706 
118,783 
12 Different Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Gross unrealized losses
 
Amortized costs
25,500 
 
Number of securities
12 
 
37 Different Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Gross unrealized losses
 
39 
Amortized costs
 
$ 72,600 
Number of securities
 
37 
Marketable Securities (Schedule of Available-for-sale Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Mar. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 66,706 
$ 118,783 
Gross Unrealized Gains
29 
47 
Gross Unrealized Losses
(4)
(39)
Estimated Fair Value (Net Carrying Amount)
66,731 
118,791 
Corporate Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
29,965 
48,011 
Gross Unrealized Gains
17 
33 
Gross Unrealized Losses
(3)
(19)
Estimated Fair Value (Net Carrying Amount)
29,979 
48,025 
U.S. Treasury Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
16,729 
30,264 
Gross Unrealized Gains
Gross Unrealized Losses
(1)
(4)
Estimated Fair Value (Net Carrying Amount)
16,730 
30,261 
Agency Discount Notes [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
8,503 
16,789 
Gross Unrealized Gains
Gross Unrealized Losses
   
(1)
Estimated Fair Value (Net Carrying Amount)
8,504 
16,796 
Commercial Paper [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
11,509 
23,719 
Gross Unrealized Gains
Gross Unrealized Losses
   
(15)
Estimated Fair Value (Net Carrying Amount)
$ 11,518 
$ 23,709 
Fair Value Of Financial Instruments (Schedule Of Fair Value Of Financial Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Mar. 31, 2012
Cash Equivalents [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
$ 52,635 
$ 57,621 
Cash Equivalents [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
43,736 
40,557 
Cash Equivalents [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
8,899 
17,064 
Cash Equivalents [Member] |
Corporate Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
 
1,112 
Cash Equivalents [Member] |
Corporate Debt Securities [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
 
1,112 
Cash Equivalents [Member] |
Money-Market Funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
28,736 
40,557 
Cash Equivalents [Member] |
Money-Market Funds [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
28,736 
40,557 
Cash Equivalents [Member] |
U.S. Treasury Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
15,000 
 
Cash Equivalents [Member] |
U.S. Treasury Securities [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
15,000 
 
Cash Equivalents [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
8,899 
15,952 
Cash Equivalents [Member] |
Commercial Paper [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
8,899 
15,952 
Available-for-sale Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
66,731 
118,791 
Available-for-sale Securities [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
16,730 
30,261 
Available-for-sale Securities [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
50,001 
88,530 
Available-for-sale Securities [Member] |
Corporate Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
29,979 
48,025 
Available-for-sale Securities [Member] |
Corporate Debt Securities [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
29,979 
48,025 
Available-for-sale Securities [Member] |
U.S. Treasury Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
16,730 
30,261 
Available-for-sale Securities [Member] |
U.S. Treasury Securities [Member] |
Quoted Prices In Active Markets For Identical Assets Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
16,730 
30,261 
Available-for-sale Securities [Member] |
Agency Discount Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
8,504 
16,796 
Available-for-sale Securities [Member] |
Agency Discount Notes [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
8,504 
16,796 
Available-for-sale Securities [Member] |
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
11,518 
23,709 
Available-for-sale Securities [Member] |
Commercial Paper [Member] |
Significant Other Observable Inputs Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair value of financial assets
$ 11,518 
$ 23,709 
Accounts Receivable, Net (Components Of Accounts Receivable, Net) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Mar. 31, 2012
Accounts Receivable, Net [Abstract]
 
 
Gross accounts receivable
$ 131,166 
$ 44,524 
Allowance for doubtful accounts
(296)
(371)
Accounts receivable, net
$ 130,870 
$ 44,153 
Inventories (Schedule Of Inventories) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 29, 2012
Mar. 31, 2012
Inventories [Abstract]
 
 
Work in process
$ 71,427 
$ 30,921 
Finished goods
73,454 
24,994 
Total inventories
$ 144,881 
$ 55,915 
Asset Sale (Narrative) (Details) (USD $)
6 Months Ended
Sep. 29, 2012
Aug. 17, 2012
Asset Sale [Abstract]
 
 
Disposition Price of Other Productive Assets Sold
 
$ 26,100,000 
Proceeds from Sale of Other Productive Assets
22,220,000 
 
Nontrade Receivables, Noncurrent
 
$ 3,900,000 
Revolving Line of Credit (Narrative) (Details) (USD $)
3 Months Ended
Jun. 30, 2012
Sep. 29, 2012
Line of Credit Facility [Abstract]
 
 
Revolving credit agreement initiation date
Apr. 19, 2012 
 
Borrowing limit under the unsecured revolving credit facility
$ 100,000,000 
 
Revolving credit sublimit
15,000,000 
 
Basis spread on variable interest rate
0.50% 
 
Covenant Terms, Leverage Ratio Requirement
1.75 
 
Covenant terms, interest coverage ratio
3.50 
 
Line of Credit Facility, Amount Outstanding
 
$ 0 
Income Taxes (Narrative) (Details) (USD $)
6 Months Ended
Sep. 29, 2012
Unrecognized tax benefit
$ 0 
Accrued interest and penalties
Interest and penalties incurred during period
$ 0 
Open Tax Year One [Member]
 
Open Tax Year
2009 
Open Tax Year Two [Member]
 
Open Tax Year
2010 
Open Tax Year Three [Member]
 
Open Tax Year
2011 
Open Tax Year Four [Member]
 
Open Tax Year
2012 
Income Taxes (Table) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 29, 2012
Sep. 24, 2011
Sep. 29, 2012
Sep. 24, 2011
Income Taxes [Abstract]
 
 
 
 
Income before income taxes
$ 50,516 
$ 17,998 
$ 61,091 
$ 32,471 
Provision for income taxes
$ 15,067 
$ 6,751 
$ 18,715 
$ 12,046 
Effective tax rate
29.80% 
37.50% 
30.60% 
37.10% 
Earnings Per Share (Details)
3 Months Ended 6 Months Ended
Sep. 24, 2011
Sep. 24, 2011
Earnings Per Share [Abstract]
 
 
Weighted average outstanding options excluded from diluted calculation
953,000 
917,000 
Legal Matters (Narrative) (Details)
6 Months Ended
Sep. 29, 2012
Legal Matters [Abstract]
 
Number of U.S.Ethernet Innovations lawsuit co-defendants
Stockholder's Equity (Narrative) (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 29, 2012
Sep. 24, 2011
Sep. 29, 2012
Sep. 24, 2011
Stockholder's Equity [Abstract]
 
 
 
 
Shares of common stock issued for stock option exercises
0.9 
0.1 
1.1 
0.2 
Segment Information (Schedule Of Segment Revenue From Product Lines) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 29, 2012
Sep. 24, 2011
Sep. 29, 2012
Sep. 24, 2011
Segment Reporting Information [Line Items]
 
 
 
 
Product revenue, net
$ 193,774 
$ 101,602 
$ 292,780 
$ 193,844 
Audio Products [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product revenue, net
15,859 
17,919 
34,118 
39,042 
Energy Products [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Product revenue, net
$ 177,915 
$ 83,683 
$ 258,662 
$ 154,802