Cypress Increases Quarterly Cash Dividend By 22% to $0.11 Per Common Share
February 27 2012 - 4:30PM
Business Wire
Cypress Semiconductor Corp. (Nasdaq:CY) today announced that its
Board of Directors has approved a quarterly dividend of $0.11 per
share payable to holders of record of the Company's common stock at
the close of business on March 29, 2012. This dividend will be paid
on April 19, 2012. The new dividend rate of $0.11 per quarter
represents a 22% increase over the prior rate of $0.09 and yields
approximately 2.5% at the current stock price.
“The Board and management team are pleased to be able to
continue to return excess cash to our shareholders through our
dividend and stock repurchase programs,” said Brad Buss, Executive
Vice President and CFO of Cypress. “We continue to invest in our
core business and our emerging technologies division, while our
strong new product portfolio and ‘fab-lite’ manufacturing model
allow us to continue to drive strong free cash flow.”
It is expected that the declared dividend will be paid from U.S.
domestic sources other than the Company's retained earnings and it
is expected to be treated as a return of capital for U.S. tax
purposes for the 2012 fiscal year, although the final determination
of the tax treatment of the dividend will be made after the
Company’s 2012 fiscal year end. The Company will provide direction
annually on the potential tax treatment of the dividend for U.S.
tax purposes.
Cypress’s dividend policy and the payment of cash dividends
under that policy are subject to the Board's continuing
determination that the dividend policy and the declaration of
dividends are in the best interests of Cypress’s stockholders and
are in compliance with all laws and agreements of Cypress
applicable to the declaration and payment of cash dividends. The
dividend may be changed or cancelled at the Company’s discretion at
any time.
About Cypress
Cypress delivers high-performance, mixed-signal, programmable
solutions that provide customers with rapid time-to-market and
exceptional system value. Cypress offerings include the flagship
PSoC® programmable system-on-chip families and derivatives such as
CapSense® touch sensing and TrueTouch® solutions for touchscreens.
Cypress is the world leader in USB controllers, including the
high-performance West Bridge® solution that enhances connectivity
and performance in multimedia handsets. Cypress is also a leader in
high-performance memories and programmable timing devices. Cypress
serves numerous markets including consumer, mobile handsets,
computation, data communications, automotive, industrial and
military. Cypress trades on the NASDAQ Global Select Market under
the ticker symbol CY. Visit Cypress online at www.cypress.com.
Forward-Looking Statements
This release may be deemed to contain forward-looking
statements, which are subject to the safe harbor provisions of the
Private Litigation Reform Act of 1995. These forward-looking
statements include, among other things, statements regarding its
adoption of a dividend policy, any future payments made under that
policy, any decision to cancel or change the dividend policy, each
of which involve risks and uncertainties. Readers are cautioned
that these forward-looking statements are only predictions and may
differ materially from actual future events or results due to a
variety of factors, including: the discretion of management and the
board as to whether declaring a dividend is in the best interests
of the Company, the final tax treatment of the dividend and how it
is paid and accounted for, the business and economic conditions and
growth trends in the semiconductor industry and in various
geographic regions; our ability to manage financial risk; and other
factors listed in Cypress’s most recent reports on Form 10-K, 10-Q
and 8-K. The information above speaks only as of the date of this
release.
Cypress and the Cypress logo, PSoC, TrueTouch, CapSense, West
Bridge and EZ-USB are registered trademarks of Cypress
Semiconductor Corporation. Programmable System-on-Chip is a
trademark of Cypress Semiconductor Corp. All other trademarks are
the property of their respective owners.
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