SAN JOSE, Calif., April 27, 2017 /PRNewswire/ -- Cypress
Semiconductor Corporation (NASDAQ: CY) today announced its first
quarter 2017 results.
"Cypress delivered record revenue1 in the first
quarter that exceeded the high end of our guidance range," said
Hassane El-Khoury, Cypress President
and Chief Executive Officer. "We saw above seasonal growth in our
Microcontroller and Connectivity Division and strength in our
memory products which exceeded our expectations. Our wireless
connectivity grew 30% from the fourth quarter of 2016 and
Automotive revenue hit a new quarterly record. These results
highlight the strong demand for our expanding portfolio of embedded
systems solutions and the continued success of our Cypress 3.0
strategy to target markets growing faster than the overall
semiconductor industry.
"The sale of our Minnesota fab
earlier in the quarter will enable us to sharpen our focus on core
businesses in line with our financial model and gross margin
improvement plan," El-Khoury added.
1.
|
Core Cypress revenue
excluding SunPower Corp.
|
Revenue and earnings for the quarter are given below, compared
with those of the prior quarter:
(In thousands, except
per-share data)
|
|
|
|
GAAP
|
|
|
NON-GAAP1
|
|
|
Q1
2017
|
|
Q4
2016
|
|
|
Q1
2017
|
|
Q4
2016
|
Revenue
|
|
$
|
531,874
|
|
|
$
|
530,172
|
|
|
|
$
|
531,874
|
|
|
$
|
530,172
|
|
Margin
|
|
37.4%
|
|
|
38.1%
|
|
|
|
39.3%
|
|
|
40.1%
|
|
Pretax profit
margin
|
|
(7.7)%
|
|
|
(13.5)%
|
|
|
|
9.2%
|
|
|
10.8%
|
|
Net income
(loss)
|
|
$
|
(45,782)
|
|
|
$
|
(72,367)
|
|
|
|
$
|
45,887
|
|
|
$
|
53,823
|
|
Diluted EPS
(loss)
|
|
$
|
(0.14)
|
|
|
$
|
(0.22)
|
|
|
|
$
|
0.13
|
|
|
$
|
0.15
|
|
|
|
1.
|
See "Reconciliation
of GAAP Financial Measures to Non-GAAP Financial Measures" tables
("Non-GAAP Results" tables) included below.
|
BUSINESS REVIEW
+ At the Embedded World trade show in March, Cypress introduced
key additions to its Internet of Things (IoT) solutions portfolio.
Cypress' new PSoC® 6 microcontroller (MCU) architecture
delivers the industry's lowest power and most flexible solution,
with integrated security features required for next-generation,
battery-powered, secure IoT devices. Cypress' two new wireless
solutions offer advanced coexistence and robust connectivity
combining 802.11ac high-performance Wi-Fi®,
Bluetooth® and Bluetooth Low Energy (BLE) for IoT
applications.
+ Continental selected Cypress' Traveo™ II automotive MCUs for
its next-generation body electronics platform, marking the
Company's entrance into a new segment in the automotive market.
+ GAAP and non-GAAP margins for the first quarter of 2017 were
37.4% and 39.3%, respectively, above the midpoint of guidance and
in line with the Company's margin-enhancing initiatives.
+ Cypress paid a dividend of $36.2
million, or $0.11 per share,
to holders of record of the Company's common stock as of the close
of business on March 30, 2017. The
dividend was equivalent to a 3.2% annualized yield as of
March 31, 2017.
REVENUE
SUMMARY
|
(In thousands, except
percentages)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
(GAAP)
|
|
(Non-GAAP)2
|
|
April
2,
2017
|
|
January 1,
2017
|
|
Sequential
Change
|
|
April
2,
2017
|
|
January 1,
2017
|
|
Sequential
Change
|
Business
Unit
|
|
|
|
|
|
|
|
|
|
|
|
MCD1
|
$
|
317,901
|
|
|
$
|
294,893
|
|
|
8%
|
|
|
$
|
317,901
|
|
|
$
|
294,893
|
|
|
8%
|
|
MPD
|
213,973
|
|
|
235,279
|
|
|
(9)%
|
|
|
213,973
|
|
|
235,279
|
|
|
(9)%
|
|
Total
|
$
|
531,874
|
|
|
$
|
530,172
|
|
|
0%
|
|
|
$
|
531,874
|
|
|
$
|
530,172
|
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic
|
|
|
|
|
|
|
|
|
|
|
|
China &
ROW
|
55%
|
|
|
57%
|
|
|
(4)%
|
|
|
55%
|
|
|
57
|
%
|
|
(4)%
|
|
Americas
|
11%
|
|
|
11%
|
|
|
0%
|
|
|
11%
|
|
|
11
|
%
|
|
0%
|
|
Europe
|
13%
|
|
|
11%
|
|
|
18%
|
|
|
13%
|
|
|
11
|
%
|
|
18%
|
|
Japan
|
21%
|
|
|
21%
|
|
|
0%
|
|
|
21%
|
|
|
21
|
%
|
|
0%
|
|
Total
|
100%
|
|
|
100%
|
|
|
0%
|
|
|
100%
|
|
|
100
|
%
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Channel
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
|
71%
|
|
|
74%
|
|
|
(4)%
|
|
|
71%
|
|
|
74
|
%
|
|
(4)%
|
|
Direct
|
29%
|
|
|
26%
|
|
|
12%
|
|
|
29%
|
|
|
26
|
%
|
|
12%
|
|
Total
|
100%
|
|
|
100%
|
|
|
0%
|
|
|
100%
|
|
|
100
|
%
|
|
0%
|
|
|
|
1.
|
Historical results of
MCD include Deca Technologies.
|
2.
|
See Non-GAAP Results
tables included below.
|
SECOND QUARTER 2017 FINANCIAL OUTLOOK
For the second quarter of 2017, Cypress estimates financial
results as follows:
|
|
|
|
GAAP
|
Non-GAAP
|
Revenue
|
$530 million to
$560 million
|
Margin %
|
38.5% to
39.5%
|
40.0% to
41.0%
|
Diluted
EPS
|
$(0.13) to
$(0.09)
|
$0.14 to
$0.18
|
A reconciliation of GAAP forward-looking estimates to non-GAAP
forward-looking estimates may be found in the tables at the end of
this earnings report.
The timing and amount of certain material items, including
restructuring charges, asset impairments, changes in value of
deferred compensation assets and liabilities, impact of stock-based
compensation from modification of equity awards, and the tax impact
of non-GAAP adjustments, which are needed to estimate GAAP
financial measures are either inherently unpredictable or outside
the control of the Company, and may have a significant impact on
the Company's financial results. Accordingly, Cypress cannot
provide a full quantitative reconciliation for such non-GAAP
financial measures included as part of the second quarter 2017
financial outlook to the most directly comparable GAAP measure
without unreasonable effort and additional adjustments may be
reflected in our non-GAAP results for the second quarter of 2017.
Cypress has qualitatively described below, under the section
"Non-GAAP Financial Measures," the anticipated differences between
the non-GAAP financial measures and the most directly comparable
GAAP measures.
CONFERENCE CALL AND WEBCAST INFORMATION
Cypress will host its quarterly conference call on April 27, 2017 at 1:30
p.m. Pacific Daylight Time to discuss its first quarter 2017
results and provide an outlook for the second quarter of 2017.
All interested parties may dial 517-308-9119 and provide the
passcode "Cypress" to listen to the call. The event will be
broadcast over the Internet and may be accessed through Cypress'
website at www.cypress.com/investors. The archived presentation
will be available for two weeks immediately following the
event.
FOLLOW CYPRESS ONLINE
Join the Cypress Developer Community, read our Core & Code
blog, follow us on Twitter, Facebook and LinkedIn, and watch
Cypress videos on our Video Library or YouTube.
ABOUT CYPRESS
Cypress is a leader in advanced embedded system solutions for
the world's most innovative automotive, industrial, home automation
and appliances, consumer electronics and medical products. Cypress'
programmable systems-on-chip, general-purpose microcontrollers,
analog ICs, wireless and USB-based connectivity solutions and
reliable, high-performance memories help engineers design
differentiated products and get them to market first. Cypress is
committed to providing customers with support and engineering
resources that enable innovators and out-of-the-box thinkers to
disrupt markets and create new product categories. To learn more,
go to www.cypress.com.
NON-GAAP FINANCIAL MEASURES
To supplement its condensed consolidated unaudited financial
results presented in accordance with GAAP, Cypress uses the
non-GAAP financial measures listed below, which are adjusted from
the most directly comparable GAAP financial measures to exclude
certain items, as described in more detail below.
- Revenue;
- Margin;
- Margin %;
- Research and development expenses;
- Selling, general and administrative expenses;
- Provision (benefit) for income taxes;
- Pretax profit margin %;
- Operating income (loss);
- Net income (loss); and
- Diluted earnings (loss) per share.
Management believes that these non-GAAP financial measures
reflect an additional and useful way of viewing aspects of the
Company's operations which, when viewed in conjunction with
Cypress' GAAP results, provide a more comprehensive understanding
of the various factors and trends affecting the Company's business
and operations.
The Company presents non-GAAP financial measures because
management uses these measures to analyze and assess the Company's
financial results and to manage the business.
There are limitations in using non-GAAP financial measures
including those discussed below. Moreover, the Company's non-GAAP
measures may be calculated differently than the non-GAAP financial
measures used by other companies. The presentation of non-GAAP
financial information is not meant to be considered in isolation or
as a substitute for the most directly comparable GAAP financial
measures. The non-GAAP financial measures supplement and should be
viewed in conjunction with GAAP financial measures.
As presented in the "Non-GAAP Results" tables in this press
release, each of the non-GAAP financial measures excludes one or
more of the following items:
Acquisition-related charges: Acquisition-related charges are not
factored into management's evaluation of Cypress' long-term
performance after the completion of acquisitions. However, a
limitation of non-GAAP measures that exclude acquisition-related
charges is that these charges may represent payments that reduce
the cash available to the Company for other purposes.
Acquisition-related expenses primarily include:
- Amortization of purchased intangibles, including purchased
technology, patents, customer relationships, trademarks, backlog
and non-compete agreements;
- Amortization of step-up in value of inventory recorded as part
of purchase price accounting; and
- One-time charges associated with the completion of an
acquisition including items such as contract termination costs,
severance and other acquisition-related restructuring costs; costs
incurred in connection with integration activities, and legal and
accounting costs.
Share-based compensation expense: Share-based compensation
expense relates primarily to employee stock options, restricted
stock units, performance stock units and the employee stock
purchase plan. Share-based compensation expense is a non-cash
expense that is affected by changes in market factors including the
price of Cypress' common shares, which are not within the control
of management. In addition, the valuation of share-based
compensation is subjective, and the expense recognized by Cypress
may be significantly different than the expense recognized by other
companies for similar equity awards, which makes it difficult to
assess Cypress' results compared to its competitors. Accordingly,
management excludes this item from its internal operating forecasts
and models. However, a limitation of non-GAAP measures that exclude
share-based compensation expense is that they do not reflect the
full costs of compensating employees.
Other adjustments: These items are excluded from non-GAAP
financial measures because they are not related to the core
operating activities and ongoing operating performance of Cypress.
Excluding these items, which can vary significantly from quarter to
quarter, allows management to better compare Cypress'
period-over-period performance. However, limitations of non-GAAP
measures that exclude these items include that these adjustments
are often subjective and may not be comparable to similarly titled
non-GAAP financial measures used by other companies. Other
adjustments primarily include:
- Revenue from an intellectual property license,
- Changes in value of deferred compensation plan assets and
liabilities,
- Investment-related gains or losses, including equity method
investments,
- Restructuring and related costs,
- Debt issuance costs, including imputed interest related to the
equity component of convertible debt,
- Asset impairments,
- Tax effects of non-GAAP adjustments,
- Certain other expenses and benefits, and
- Diluted weighted average shares non-GAAP adjustment – for
purposes of calculating non-GAAP diluted earnings per share, the
GAAP diluted weighted average shares outstanding is adjusted to
exclude the benefits related to share-based compensation
expense.
FORWARD-LOOKING STATEMENTS
Statements herein that are not historical facts and that refer
to Cypress or its subsidiaries' plans and expectations for the
future are forward-looking statements made pursuant to the Private
Securities Litigation Reform Act of 1995. We may use words such as
"may," "should," "expect," "plan," "intend," "anticipate,"
"believe," "estimate," "predict," "potential," "future," "continue"
or other wording indicating future results or expectations to
identify such forward-looking statements that include, but are not
limited to: statements related to our estimated non-GAAP revenue,
non-GAAP margin, non-GAAP operating expenses, non-GAAP EPS, net
interest expense, tax expense, capital expenditures and
depreciation for the second quarter of fiscal 2017; the expected
benefits of our acquisition of Broadcom's wireless IoT business,
including revenue growth and margin improvement; sources of revenue
for the second quarter; the expected impact of our lean inventory
initiative on fab utilization, inventory levels, cash flow, pricing
and profitability; estimates of certain GAAP to non-GAAP
reconciling items for the second quarter; the demand environment
for semiconductors; the expected impact of our margin improvement
plan; the impact of seasonality on revenue; cross-selling
opportunities in the automotive business; our ability to meet our
targeted range of inventory; the expected synergies related to our
merger with Spansion; expected or anticipated uses of cash flow,
including to pay dividends, repurchase shares of common stock, or
pay down our existing indebtedness; and plans to reduce excess
inventory. Such statements reflect our current expectations, which
are based on information and data available to our management as of
the date of this press release. Our actual results may differ
materially due to a variety of risks and uncertainties, including,
but not limited to: global economic and market conditions;
business conditions and growth trends in the semiconductor market;
our ability to compete effectively; the volatility in supply and
demand conditions for our products, including but not limited to
the impact of seasonality on supply and demand; our ability to
develop, introduce and sell new products and technologies;
potential problems relating to our manufacturing activities; the
impact of acquisitions, including but not limited to the continuing
integration of Spansion and the recent acquisition of Broadcom's
wireless IoT business; our ability to attract and retain key
personnel; the unpredictability and expense of legal proceedings;
and other risks and uncertainties described in the "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" sections in our most recent Annual
Report on Form 10-K and our other filings with the Securities and
Exchange Commission. We assume no responsibility to update any such
forward-looking statements.
Cypress, the Cypress logo and PSoC are registered trademarks and
Traveo is a trademark of Cypress Semiconductor Corporation. All
other trademarks are property of their owners.
CYPRESS
SEMICONDUCTOR CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
April 2,
2017
|
|
January 1,
2017
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash, cash
equivalents and short-term investments
|
|
$
|
122,472
|
|
|
$
|
121,144
|
|
Accounts receivable,
net
|
|
317,276
|
|
|
333,037
|
|
Inventories
|
|
324,978
|
|
|
287,776
|
|
Property, plant and
equipment, net
|
|
293,055
|
|
|
297,266
|
|
Goodwill and other
intangible assets, net
|
|
2,295,074
|
|
|
2,344,033
|
|
Other
assets
|
|
454,052
|
|
|
488,615
|
|
Total
assets
|
|
$
|
3,806,907
|
|
|
$
|
3,871,871
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Accounts
payable
|
|
$
|
265,524
|
|
|
$
|
241,424
|
|
Income tax
liabilities
|
|
51,571
|
|
|
49,552
|
|
Revenue reserves,
deferred margin and other liabilities
|
|
458,816
|
|
|
493,164
|
|
Revolving credit
facility and long-term debt
|
|
1,171,706
|
|
|
1,194,979
|
|
Total
liabilities
|
|
1,947,617
|
|
|
1,979,119
|
|
Total Cypress
stockholders' equity
|
|
1,858,302
|
|
|
1,891,828
|
|
Non-controlling
interest
|
|
988
|
|
|
924
|
|
Total
equity
|
|
1,859,290
|
|
|
1,892,752
|
|
Total liabilities
and equity
|
|
$
|
3,806,907
|
|
|
$
|
3,871,871
|
|
CYPRESS
SEMICONDUCTOR CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
ON A GAAP
BASIS
|
(In thousands,
except per-share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
April 2,
2017
|
|
January 1,
2017
|
Revenues
|
$
|
531,874
|
|
|
$
|
530,172
|
|
Costs and
expenses:
|
|
|
|
Cost of
revenues
|
332,814
|
|
|
328,220
|
|
Research and
development
|
88,481
|
|
|
92,188
|
|
Selling, general and
administrative
|
76,114
|
|
|
76,839
|
|
Amortization of
intangible assets
|
48,249
|
|
|
52,104
|
|
Restructuring
costs
|
2,572
|
|
|
17,237
|
|
Impairment related to
assets held for sale
|
—
|
|
|
1,960
|
|
Total costs and
expenses
|
548,230
|
|
|
568,548
|
|
Operating
loss
|
(16,356)
|
|
|
(38,376)
|
|
Interest and other
expense, net
|
(19,359)
|
|
|
(24,389)
|
|
Loss before income
taxes and non-controlling interest
|
(35,715)
|
|
|
(62,765)
|
|
Income tax
provision
|
(4,927)
|
|
|
(790)
|
|
Equity in net loss of
equity method investees
|
(5,076)
|
|
|
(8,766)
|
|
Net loss
|
(45,718)
|
|
|
(72,321)
|
|
Net gain attributable
to non-controlling interests
|
(64)
|
|
|
(46)
|
|
Net loss attributable
to Cypress
|
$
|
(45,782)
|
|
|
$
|
(72,367)
|
|
Net loss per share
attributable to Cypress:
|
|
|
|
Basic
|
$
|
(0.14)
|
|
|
$
|
(0.22)
|
|
Diluted
|
$
|
(0.14)
|
|
|
$
|
(0.22)
|
|
Cash dividend
declared per share
|
$
|
0.11
|
|
|
$
|
0.11
|
|
Shares used in net
loss per share calculation:
|
|
|
|
Basic
|
326,964
|
|
|
322,800
|
|
Diluted
|
326,964
|
|
|
322,800
|
|
CYPRESS
SEMICONDUCTOR CORPORATION
|
RECONCILIATION OF
GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL
MEASURES
|
(In thousands,
except per-share data)
|
(Unaudited)
|
|
Table A: GAAP to
Non-GAAP reconciling items (Three Months Ended Q1
2017)
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
Research
and
development
|
|
SG&A
and
Restructuring
costs
|
|
Amortization
of
Intangible assets
|
|
Interest and
other
expense, net
|
|
Income tax
(provision)
benefit
|
GAAP
[i]
|
|
$
|
332,814
|
|
|
$
|
88,481
|
|
|
$
|
78,686
|
|
|
$
|
48,249
|
|
|
$
|
(24,435)
|
|
|
$
|
(4,927)
|
|
[1] Stock based
compensation
|
|
5,331
|
|
|
11,771
|
|
|
8,835
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[2] Changes in value
of deferred compensation plan
|
|
166
|
|
|
597
|
|
|
1,008
|
|
|
—
|
|
|
(1,558)
|
|
|
—
|
|
[3] Merger,
integration, related costs and adjustments related to assets held
for sale
|
|
1,350
|
|
|
—
|
|
|
(1,479)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[4] Inventory Step-up
related to acquisition accounting
|
|
2,864
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[5] Losses from
equity method investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,076
|
|
|
—
|
|
[6] Imputed interest
on convertible debt, equity component amortization on convertible
debt and others
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,489
|
|
|
—
|
|
[7] Amortization of
debt issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
858
|
|
|
—
|
|
[8] Amortization
of Intangible assets
|
|
|
|
—
|
|
|
—
|
|
|
48,249
|
|
|
—
|
|
|
—
|
|
[9] Restructuring
costs
|
|
—
|
|
|
—
|
|
|
2,572
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[10] Tax
impact
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
415
|
|
|
2,125
|
|
Non - GAAP
[ii]
|
|
$
|
323,103
|
|
|
$
|
76,113
|
|
|
$
|
67,750
|
|
|
$
|
—
|
|
|
$
|
(16,155)
|
|
|
$
|
(2,802)
|
|
Impact of
reconciling items [ii - i]
|
|
$
|
(9,711)
|
|
|
$
|
(12,368)
|
|
|
$
|
(10,936)
|
|
|
$
|
(48,249)
|
|
|
$
|
8,280
|
|
|
$
|
2,125
|
|
Table B: GAAP to
Non-GAAP reconciling items (Three Months Ended Q4
2016)
|
|
|
|
|
|
|
Cost of
revenues
|
|
Research
and
development
|
|
SG&A
|
|
Amortization
of
Intangible
assets
|
|
Impairment
related to
assets held for
sale
|
|
Interest
and other
expense,
net
|
|
Income
tax
provision
|
GAAP
[i]
|
|
$
|
328,220
|
|
|
$
|
92,188
|
|
|
$
|
94,076
|
|
|
$
|
52,104
|
|
|
$
|
1,960
|
|
|
$
|
(33,155)
|
|
|
$
|
(790)
|
|
[1] Stock based
compensation, including costs related to modification of equity
awards
|
|
6,589
|
|
|
16,687
|
|
|
12,292
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[2] Changes in value
of deferred compensation plan
|
|
42
|
|
|
147
|
|
|
292
|
|
|
—
|
|
|
—
|
|
|
(641)
|
|
|
—
|
|
[3] Merger,
integration and related costs
|
|
2,614
|
|
|
476
|
|
|
5,136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[4] Inventory Step-up
related to acquisition accounting
|
|
1,381
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[5] Losses from
equity method investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,766
|
|
|
—
|
|
[6] Imputed interest
on convertible debt, equity component amortization on convertible
debt and others
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,482
|
|
|
—
|
|
[7] Amortization of
debt issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
976
|
|
|
—
|
|
[8] Amortization
of Intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[9] Impairment
related to assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,960
|
|
|
—
|
|
|
—
|
|
[10] Restructuring
costs, including executive severance
|
|
—
|
|
|
—
|
|
|
17,237
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
[11] Tax impact of
Non-GAAP adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(908)
|
|
|
(2,442)
|
|
Non - GAAP
[ii]
|
|
$
|
317,594
|
|
|
$
|
74,878
|
|
|
$
|
59,119
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(21,480)
|
|
|
$
|
(3,232)
|
|
Impact of
reconciling items [ii - i]
|
|
$
|
(10,626)
|
|
|
$
|
(17,310)
|
|
|
$
|
(34,957)
|
|
|
$
|
(52,104)
|
|
|
$
|
(1,960)
|
|
|
$
|
11,675
|
|
|
$
|
(2,442)
|
|
Table C: Margin
%
|
|
|
|
|
|
|
|
|
|
|
Q1'17
|
|
Q4'16
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
Revenue
[i]
|
|
$
|
531,874
|
|
|
$
|
531,874
|
|
|
$
|
530,172
|
|
|
$
|
530,172
|
|
Cost of revenues (See
Table A, B) [ii]
|
|
332,814
|
|
|
323,103
|
|
|
328,220
|
|
|
317,594
|
|
Margin [iii] [ii -
i]
|
|
$
|
199,061
|
|
|
$
|
208,771
|
|
|
$
|
201,952
|
|
|
$
|
212,578
|
|
Margin % [iii /
i]
|
|
37.4
|
%
|
|
39.3
|
%
|
|
38.1
|
%
|
|
40.1
|
%
|
Table D: Operating
income (loss)
|
|
|
|
|
|
|
Q1'17
|
|
Q4'16
|
GAAP operating
loss [i]
|
|
$
|
(16,356)
|
|
|
$
|
(38,376)
|
|
Impact of reconciling
items on Cost of revenues (see Table A, B)
|
|
9,711
|
|
|
10,626
|
|
Impact of reconciling
items on R&D (see Table A, B)
|
|
12,368
|
|
|
17,310
|
|
Impact of reconciling
items on SG&A (see Table A, B)
|
|
10,936
|
|
|
34,957
|
|
Impact of
Amortization of Intangible Assets (see Table A, B)
|
|
48,249
|
|
|
52,104
|
|
Impact of Impairment
related to assets held for sale (see Table B)
|
|
—
|
|
|
1,960
|
|
Non-GAAP operating
income [ii]
|
|
$
|
64,908
|
|
|
$
|
78,581
|
|
Impact of
reconciling items [ii - i]
|
|
$
|
81,264
|
|
|
$
|
116,957
|
|
Table E: Pre-tax
profit
|
|
|
|
|
|
|
Q1'17
|
|
Q4'16
|
GAAP Pre-tax
profit
|
|
$
|
(40,791)
|
|
|
$
|
(71,531)
|
|
Impact of reconciling
items on Operating income (see Table D)
|
|
81,264
|
|
|
116,957
|
|
Interest and other
expense, net (see Table A,B)
|
|
8,280
|
|
|
11,675
|
|
Non-GAAP
Pre-tax income
|
|
$
|
48,753
|
|
|
$
|
57,101
|
|
Table F: Net
income (loss)
|
|
|
|
|
|
|
Q1'17
|
|
Q4'16
|
GAAP Net
loss
|
|
$
|
(45,782)
|
|
|
$
|
(72,367)
|
|
Impact of reconciling
items on Operating income (see Table D)
|
|
81,264
|
|
|
116,957
|
|
Interest and other
expense, net (see Table A, B)
|
|
8,280
|
|
|
11,675
|
|
Income tax benefit
(provision) (see Table A,B)
|
|
2,125
|
|
|
(2,442)
|
|
Non-GAAP Net
income
|
|
$
|
45,887
|
|
|
$
|
53,823
|
|
Table G: Pretax
profit margin %
|
|
|
|
|
|
|
|
|
|
|
Q1'17
|
|
Q4'16
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
Revenue
[i]
|
|
$
|
531,874
|
|
|
$
|
531,874
|
|
|
$
|
530,172
|
|
|
$
|
530,172
|
|
Pre-tax profit (see
Table E) [ii]
|
|
$
|
(40,791)
|
|
|
$
|
48,753
|
|
|
$
|
(71,531)
|
|
|
$
|
57,101
|
|
Pre-tax profit margin
% [ii / i]
|
|
(7.7)
|
%
|
|
9.2
|
%
|
|
(13.5)
|
%
|
|
10.8
|
%
|
Table H:
Weighted-average shares, diluted
|
|
|
|
|
|
|
|
|
|
|
Q1'17
|
|
Q4'16
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
Weighted-average
common shares outstanding, basic
|
|
326,964
|
|
|
326,964
|
|
|
322,800
|
|
|
322,800
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
Stock options,
unvested restricted stock and other
|
|
—
|
|
|
14,852
|
|
|
—
|
|
|
17,199
|
|
Impact of convertible
bond
|
|
—
|
|
|
17,304
|
|
|
—
|
|
|
15,138
|
|
Weighted-average
common shares outstanding, diluted
|
|
326,964
|
|
|
359,120
|
|
|
322,800
|
|
|
355,137
|
|
Table I: Net
income (loss) Per Share
|
|
|
|
|
|
|
|
|
|
|
Q1'17
|
|
Q4'16
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
Net income (loss)
(see Table F)
|
|
$
|
(45,782)
|
|
|
$
|
45,887
|
|
|
$
|
(72,367)
|
|
|
$
|
53,823
|
|
Weighted-average
common shares outstanding (see Table I) [ii]
|
|
326,964
|
|
|
359,120
|
|
|
322,800
|
|
|
355,137
|
|
Non-GAAP earnings
per share - Diluted [i/ii]
|
|
$
|
(0.14)
|
|
|
$
|
0.13
|
|
|
$
|
(0.22)
|
|
|
$
|
0.15
|
|
CYPRESS
SEMICONDUCTOR CORPORATION
|
SUPPLEMENTAL
FINANCIAL DATA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
April 2,
2017
|
|
January 1,
2017
|
Selected Cash Flow
Data (Preliminary):
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
25,721
|
|
|
$
|
89,787
|
|
Net cash provided by
(used in) investing activities
|
|
$
|
21,650
|
|
|
$
|
(19,008)
|
|
Net cash used in
financing activities
|
|
$
|
(46,043)
|
|
|
$
|
(37,262)
|
|
Other Supplemental
Data (Preliminary):
|
|
|
|
|
Capital
expenditures
|
|
$
|
13,772
|
|
|
$
|
11,889
|
|
Depreciation
|
|
$
|
16,157
|
|
|
$
|
16,057
|
|
Payment of
dividend
|
|
$
|
35,537
|
|
|
$
|
35,350
|
|
Dividend paid per
share
|
|
$
|
0.11
|
|
|
$
|
0.11
|
|
CYPRESS
SEMICONDUCTOR CORPORATION
|
RECONCILIATION OF
GAAP FORWARDING LOOKING ESTIMATES TO NON-GAAP FORWARD LOOKING
ESTIMATES
|
|
|
|
|
|
|
|
|
|
|
Forward
looking
GAAP estimate
(A)
|
|
Adjustments
(B)
|
|
Forward
looking
Non-GAAP
estimate
(C)=(A)+(B)
|
|
|
|
|
Amortization
of
intangibles
|
|
Share-based
compensation expense
|
|
Restructuring
|
|
Other
items
|
|
|
Margin
%
|
|
38.5% -
39.5%
|
|
—
|
%
|
|
1.0
|
%
|
|
—
|
%
|
|
0.5
|
%
|
|
40.0% -
41.0%
|
Diluted earnings
per share
|
|
$(0.13) to
$(0.09)
|
|
$
|
0.15
|
|
|
$
|
0.08
|
|
|
$
|
0.01
|
|
|
$
|
0.03
|
|
|
$0.14 to
$0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cypress-reports-first-quarter-2017-results-300447575.html
SOURCE Cypress Semiconductor Corp.