CYPRESS SEMICONDUCTOR CORPORATION 
SAN JOSE, Calif., July 23, 2015 /PRNewswire/ -- Cypress Semiconductor Corp. (NASDAQ: CY) today announced its second quarter 2015 results, which included the remarks below from its president and CEO, T.J. Rodgers. Highlights for the quarter included (financial highlights are non-GAAP):
-- Revenue of $491.0 million, at the high end of guidance
-- Gross margin of 41.0%, in line with expectations
-- Earnings per share of $0.15--the highest quarterly earnings in more than
two years for the combined pro forma company
-- Annualized synergies achieved ahead of schedule: $51.6 million
-- Divestiture of mobile touchscreen business for $100 million announced
-- Dividend of $36.7 million ($0.11 per share, equivalent to 3.7%
annualized yield) declared and paid with favorable tax treatment
Fellow shareholders:
Our revenue and earnings for the quarter are given below, compared with those of the prior quarter and prior year*:
(In thousands, except per-share data)
NON-GAAP** GAAP
--------- ----
Q2 2015 Q1 2015 Q2 2014 Q2 2015 Q1 2015 Q2 2014
------- ------- ------- ------- ------- -------
Revenue $491,028*** $209,137 $183,601 $484,778 $209,137 $183,601
Gross margin 41.0% -1.3% 54.0% 28.5% -17.0% 51.9%
Pretax margin 11.4% -42.0% 14.9% -18.1% -120.2% 5.2%
Net income (loss) $52,870 $(87,906) $26,723 $(90,051) $(246,798) $9,527
Diluted EPS (loss) $0.15 $(0.45) $0.16 $(0.27) $(1.26) $0.06
* The results for the second
quarter of 2015 include Spansion
operations for the full quarter,
while prior periods presented do
not, as the Spansion merger was
completed on March 12, 2015.
** For a reconciliation of GAAP to
non-GAAP results, see
accompanying tables
"Reconciliation of U.S. GAAP to
Non-GAAP Financial Measures."
*** Non-GAAP revenue includes
$6.25 million of Samsung
intellectual property licensing
revenue, not included in GAAP
revenue as a result of the effects
of purchase accounting for the
merger.
We are pleased to announce strong financial results for the second quarter of 2015, our first full quarter as a combined company. Our non-GAAP earnings per share of $0.15 represents a record relative to the last 10 quarters of the Cypress and Spansion pro forma combination. Our sales force is actively cross-selling products from our expanded product portfolio. As a result, we have begun to see an increase in new opportunities at top-tier customers, particularly in the automotive market.
We have continued to make excellent progress on integration. We have exited 19 of the 27 sites planned for closure, reduced our combined headcount by 833 people and achieved $51.6 million in annualized synergies in the second quarter--ahead of our plan to achieve $160 million in synergies.
The combined Cypress-Spansion sales force ramped up its effort to cross-sell products from Cypress's expanded product portfolio during the second quarter, securing multiple key design wins and design opportunities at a pace that exceeded internal projections. Cross-selling is a key part of Cypress's stated goal to take advantage of product and business synergies to grow both our top and bottom lines. The effort was augmented by training more than 600 Cypress sales personnel and distribution partners at multiple regional Sales Conferences.
As one cross-selling result, a Tier 1 auto maker selected not only the Traveo(TM) automotive MCU, the HyperRAM(TM) and HyperFlash(TM) memories, and an analog Power Management IC (PMIC)--former Spansion products--but also a Cypress PSoC(®) programmable system-on-chip, for the infotainment cluster of its next-generation models. This win is particularly noteworthy in that former Spansion products opened the door for Cypress's longtime flagship PSoC products. This is a dynamic we expect will repeat itself as customers become more familiar with the synergies of our new product portfolio.
BUSINESS REVIEW
-- Our non-GAAP consolidated gross margin for the second quarter was 41.0%,
meeting our expectations at this point in the merger. Excluding our
Emerging Technologies Division (ETD), our core semiconductor gross
margin was 41.6%.
-- Net inventory at the end of the second quarter was $300.9 million, down
$88 million from the first quarter ($52 million excluding the impact of
fair value inventory adjustment from the merger), as a result of our
2015 lean inventory initiative.
-- Cypress announced that its Board of Directors approved a quarterly cash
dividend of $0.11 per share, payable to holders of record of the
company's common stock as of the close of business on June 25, 2015.
This dividend was paid on July 16, 2015.
NET SALES SUMMARY
(In thousands, except percentages)
(Unaudited)
THREE MONTHS ENDED
------------------
Jun. 28, Mar. 29, Jun. 29, Sequential Year-over-
Business Unit 2015 2015 2014 Change Year Change
------------- ---- ---- ---- ------ -----------
PSD(1) $202,806 $74,812 $74,676 171% 172%
MPD1,3 $261,407 $108,683 $85,582 141% 205%
DCD(1) $19,087 $18,565 $17,989 3% 6%
ETD(2) $7,728 $7,077 $5,354 9% 44%
Total $491,028 $209,137 $183,601 135% 167%
-------- -------- -------- --- ---
Geographic
----------
China and ROW 41% 49% 62% -16% -34%
Americas 11% 19% 17% -42% -35%
Europe 14% 16% 13% -13% 8%
Japan 34% 16% 8% 113% 325%
--- --- --- --- ---
Total 100% 100% 100% 0% 0%
--- --- --- --- ---
Channel
-------
Distribution 72% 74% 68% -3% 6%
Direct 28% 26% 32% 8% -13%
--- --- --- --- ---
Total 100% 100% 100% 0% 0%
--- --- --- --- ---
1. PSD, Programmable Systems Division;
DCD, Data Communications Division;
MPD, Memory Products Division.
ETD, Emerging Technologies Division
includes businesses outside our core
semiconductor businesses named in
Footnote 1. ETD includes subsidiaries
AgigA Tech Inc., Deca Technologies
2. Inc., and our foundry business unit.
Our second quarter 2015 net sales
includes $6.25 million of legacy
Spansion non-GAAP licensing revenue
in MPD, APAC region and direct
3. channel.
SECOND QUARTER 2015 HIGHLIGHTS
-- Cypress began sampling the newest member of its family of power
management integrated circuits (PMICs) targeting Energy Harvesting
applications for the Internet of Things. The new Cypress PMICs, designed
and developed by Spansion, are optimized for energy harvesting from
ambient light, heat or vibrations to eliminate the need for batteries in
wireless sensor nodes (WSNs) that monitor physical and environmental
conditions in smart homes, buildings and factories.
-- Cypress expanded its Spansion-designed NOR HyperFlash product line with
the qualification of a new 256Mb memory. The 3-V HyperFlash device is
the latest addition to the industry's first flash memory family that
supports the high-bandwidth, low-pin-count HyperBus(TM) interface.
Running at frequencies up to 166 MHz, HyperFlash products can achieve
Double-Data-Rate (DDR) read bandwidths as high as 333 MBps.
-- Cypress's Energy Harvesting PMICs and Programmable System-on-Chip
Bluetooth(®) Low Energy (PSoC 4 BLE) products won UBM Canon's EE Times
and EDN Annual Creativity in Electronics (ACE) Awards. The ACE Awards
are judged by a blue-ribbon panel of industry experts, consisting of the
leading voices of academia, industry executives and content experts.
-- Cypress introduced two reference design kits (RDKs) based on its
Programmable Radio-on-Chip Bluetooth Low Energy (PRoC(TM) BLE) solution
for Bluetooth Smart applications; the kits provide feature-rich,
production-ready implementations of RF remote controls with long battery
life, the latest industry trend. The CY5672 RDK provides a remote
control with a trackpad, motion-sensing and voice recognition, and the
CY5682 RDK provides a touch mouse that works with all major operating
systems.
-- Cypress and Arrow Electronics announced the winners of their joint
design contest, which challenged engineers to design solutions for the
IoT using Cypress's PSoC 4 BLE, the industry's most-integrated
programmable one-chip Bluetooth Smart solution. A data collection and
logging system that displays the battery usage for an electric bicycle
earned the top prize.
-- Cypress is the leader in the new USB Power Delivery field with its
EZ-PD(TM) CCG1 and EZ-PD CCG2 USB Type-C controllers, which has passed
the USB Implementers' Forum (USB-IF) certification test. The new
super-slim 2.4-mm USB Type-C connector--which transmits multiple data
protocols and delivers up to 100 W of power--is rapidly being adopted.
For example, a USB Type-C connector is the sole data and power connector
on the newest Apple(®) MacBook(®) computer.
-- Leading Japanese electronics publication Semiconductor Industry News
honored the EZ-PD CCG1 and EZ-PD CCG2 USB Type-C controllers as part of
the publication's 21st annual "Semiconductor of the Year" awards. The
publication's editors chose the Cypress solutions for the "Award for
Excellence" because of their high quality and ability to meet the
accelerating demand of the USB Type-C market.
-- Cypress announced two complete silicon and software solutions for USB
Type-C adapter dongles based on its EZ-PD CCG1 controller. The first
solution enables dongle connectivity to a DisplayPort (DP) or Mini
DisplayPort (mDP) receptacle, allowing emerging Type-C notebooks and
monitors to work with older products. The second solution enables
connectivity to HDMI/DVI/VGA receptacles and older displays. In
addition, Cypress expanded its USB Type-C design support with the new
CY4501 CCG1 Development Kit (DVK), which enables designers to add USB
Type-C connectivity to any system.
-- Cypress introduced the industry's only 4Mb serial Ferroelectric Random
Access Memories (F-RAMs(TM)), which are the highest-density products of
their kind available. Cypress F-RAMs are ideal solutions for
applications that require continuous or frequent high-speed reading and
writing of data with absolute data security. The 4Mb serial F-RAM family
records mission-critical data in medical, industrial and automotive
applications.
-- Cypress announced availability of the industry's highest-density
synchronous SRAMs with on-chip Error-Correcting Code (ECC). On-chip ECC
makes these SRAMs 1,000 times more reliable than standard SRAMs and
eliminates the need for additional error-correction chips in medical and
other mission-critical systems. Cypress will continue to expand the
family this year with additional densities.
-- Cypress subsidiary Deca Technologies announced that it has shipped a
cumulative 500 million units of wafer-level chip scale packages (WLCSP)
since the subsidiary company's launch.
Follow Cypress Online
-- Read our Core & Code technical magazine and blog.
-- Join the Cypress Developer Community.
-- Follow @CypressSemi on Twitter.
-- Visit us on Facebook and LinkedIn.
-- Watch Cypress videos on our Video Library or YouTube.
ABOUT CYPRESS
Cypress (NASDAQ: CY) delivers high-performance, high-quality solutions at the heart of today's most advanced embedded systems, from automotive, industrial and networking platforms to highly interactive consumer and mobile devices. With a broad, differentiated product portfolio that includes NOR flash memories, F-RAM(TM) and SRAM, Traveo(TM) microcontrollers, the industry's only PSoC(®) programmable system-on-chip solutions, analog and PMIC Power Management ICs, CapSense(®) capacitive touch-sensing controllers, and Wireless BLE Bluetooth Low-Energy and USB connectivity solutions, Cypress is committed to providing its customers worldwide with consistent innovation, best-in-class support and exceptional system value. To learn more, go to www.cypress.com.
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," "will," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "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 the expected timing and costs related to the integration of the company with Spansion as a result of our recent merger; our ability to execute on planned synergies related to the merger with Spansion; the semiconductor market; the strength and growth of our proprietary and programmable products; our expectations regarding our revenue growth and earnings leverage; as well as our expectations regarding the demand for our products and how our products are expected to perform. Such statements reflect our current expectations, which are based on information and data available to our management as of the date of this release. Our actual results may differ materially due to a variety of uncertainties and risk factors, including, but not limited to, the state of and future of the global economy, business conditions and growth trends in the semiconductor market, our ability to effectively integrate our company with Spansion in a timely manner, our ability to attract and retain key personnel, whether our products perform as expected, whether the demand for our proprietary and programmable products is fully realized, our ability to manage our business to have strong earnings and significant revenue growth and reduce operating expenses, our ability to effectively implement third party wafer processes, the strength or softness of the markets we serve, our ability to maintain and improve our gross margins and realize our bookings, the seasonality of the markets we serve, the financial performance of our subsidiaries and Emerging Technologies Division, and other risks described in "Risk Factors" 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, Spansion, the Spansion logo, and combinations thereof, PSoC and CapSense are registered trademarks and HyperRAM, HyperFlash, HyperBus, EZ-PD, PRoC, F-RAM and Traveo are trademarks of Cypress Semiconductor Corp. All other trademarks or registered trademarks are the property of their respective owners.
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 28, December 28,
2015 2014
---- ----
ASSETS
Cash, cash equivalents and short-term investments $133,387 $118,812
Accounts receivable, net 261,373 75,984
Inventories, net (a) 300,922 88,227
Property, plant and equipment, net 544,144 237,763
Goodwill and other intangible assets, net 2,592,976 99,615
Other assets 278,499 122,880
Total assets $4,111,301 $743,281
========== ========
LIABILITIES AND EQUITY
Accounts payable $145,287 $42,678
Deferred margin on sales to distributors 133,654 95,187
Income tax liabilities 39,998 21,494
Other liabilities 529,179 155,057
Long-term revolving credit facility 449,000 227,000
Total liabilities 1,297,118 541,416
--------- -------
Total Cypress stockholders' equity 2,821,357 207,757
Noncontrolling interest (7,174) (5,892)
------ ------
Total equity 2,814,183 201,865
--------- -------
Total liabilities and equity $4,111,301 $743,281
========== ========
(a) Net inventories include $3.0 million and $2.0 million of capitalized inventories related to stock compensation expense, as of June 28,
2015 and December 28, 2014, respectively.
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
ON A GAAP BASIS
(In thousands, except per-share data)
(Unaudited)
Three Months Ended
------------------
June 28, March 29, June 29,
2015 2015 2014
---- ---- ----
Revenues $484,778 $209,137 $183,601
Cost of revenues 346,705 244,789 88,231
------- ------- ------
Gross margin 138,073 (35,652) 95,370
Operating expenses:
Research and development 81,227 50,522 40,927
Selling, general and
administrative 86,011 76,450 42,059
Acquisition costs and
amortization of acquisition-
related intangibles 41,758 7,397 1,800
Restructuring charges 10,039 75,715 -
------ ------ ---
Total operating expenses, net 219,035 210,084 84,786
------- ------- ------
Operating income (loss) (80,962) (245,736) 10,584
Interest and other income
(loss), net (6,794) (5,708) (1,128)
------ ------ ------
Income (loss) before income
taxes (87,756) (251,444) 9,456
Income tax provision (benefit) 2,934 (4,003) 299
----- ------ ---
Income (loss), net of taxes (90,690) (247,441) 9,157
Adjust for net loss
attributable to
noncontrolling interest 639 643 370
--- --- ---
Net income (loss) attributable
to Cypress $(90,051) $(246,798) $9,527
======== ========= ======
Net income (loss) per share
attributable to Cypress:
Basic $(0.27) $(1.26) $0.06
Diluted $(0.27) $(1.26) $0.06
Cash dividend declared per
share $0.11 $0.11 $0.11
Shares used in net income
(loss) per share calculation:
Basic 333,334 196,471 157,936
Diluted 333,334 196,471 164,460
------- ------- -------
CYPRESS SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (a)
(In thousands, except per-share data)
(Unaudited)
Three Months Ended
------------------
June 28, % of March 29, % of June 29, % of
2015 Revenue 2015 Revenue 2014 Revenue
---- ------- ---- ------- ---- -------
GAAP Revenues $484,778 $209,137 $183,601
Revenue from intellectual
property license (b) 6,250 - -
----- --- ---
Non-GAAP Revenues $491,028 $209,137 $183,601
======== ======== ========
GAAP gross margin (loss) $138,073 28.5% $(35,652) -17.0% $95,370 51.9%
Stock-based compensation
expense 3,802 0.8% 4,219 2.0% 4,433 2.4%
Ramtron acquisition costs
and related amortization - 0.0% - 0.0% (109) -0.1%
Changes in value of
deferred compensation
plan 46 0.0% 189 0.1% 248 0.1%
Impairment of assets,
restructuring and other
charges 325 0.1% 120 0.1% 187 0.1%
Effect of Non-GAAP
revenue from
intellectual property
license 6,250 0.7% - 0.0% - 0.0%
Spansion merger costs and
related amortization 52,800 10.9% 28,464 13.6% (925) -0.5%
Non-GAAP gross margin
(loss) $201,296 41.0% $(2,660) -1.2% $99,204 53.9%
======== ==== ======= ==== ======= ====
GAAP research and
development expenses $81,227 $50,522 $40,927
Stock-based compensation
expense (7,007) (5,750) (4,362)
Changes in value of
deferred compensation
plan (153) (617) (483)
Impairment of assets,
restructuring and other
charges (96) (62) -
Spansion merger costs and
related amortization (827) (130) -
Non-GAAP research and
development expenses $73,144 $43,963 $36,082
======= ======= =======
GAAP selling, general and
administrative expenses $86,011 $76,450 $42,059
Stock-based compensation
expense (16,859) (8,827) (5,523)
Ramtron acquisition costs
and related amortization - - (385)
Changes in value of
deferred compensation
plan (276) (1,110) (1,097)
Impairment of assets,
restructuring and other
charges (36) - (877)
Legal and other - (654) -
Spansion merger costs and
related amortization (1,634) (25,580) -
Non-GAAP selling,
general and
administrative expenses $67,206 $40,279 $34,177
======= ======= =======
GAAP operating income
(loss) $(80,962) $(245,736) $10,584
Stock-based compensation
expense 27,667 18,797 14,318
Ramtron acquisition costs
and related amortization 1,305 1,305 2,077
Changes in value of
deferred compensation
plan 474 1,916 1,828
Impairment of assets,
restructuring and other
charges - 182 138
Legal and other 458 654 -
Effect of Non-GAAP
revenue from
intellectual property
license 6,250 - -
Spansion merger costs and
related amortization 105,754 135,982 -
Non-GAAP operating
income (loss) $60,946 $(86,900) $28,945
======= ======== =======
GAAP pretax profit (loss) (87,756) -18.1% $(251,444) -120.2% $9,456 5.2%
Stock-based compensation
expense 27,667 5.7% 18,797 9.0% 14,318 7.8%
Ramtron acquisition costs
and related amortization 1,305 0.3% 1,305 0.6% 2,076 1.1%
Changes in value of
deferred compensation
plan (54) 0.0% 1,241 0.6% 75 0.0%
Impairment of assets,
restructuring and other
charges - 0.0% 455 0.2% 1,080 0.6%
Legal and other 458 0.1% 654 0.3% - 0.0%
Effect of Non-GAAP
revenue from
intellectual property
license 6,250 1.1% - 0.0% - 0.0%
Investment related losses
(gains) (1,670) -0.3% 2,728 1.3% 1,367 0.7%
Tax related, interest
income, interest expense
and other expenses 2,586 0.5% 869 0.4% (925) -0.5%
Losses from equity method
investment 1,459 0.3% 1,559 0.7% - 0.0%
Spansion merger costs and
related amortization 105,754 21.8% 135,982 65.0% - -
Non-GAAP pretax profit
(loss) $55,999 11.4% $(87,854) -42.1% $27,447 14.9%
======= ==== ======== ===== ======= ====
GAAP net income (loss)
attributable to Cypress $(90,051) $(246,798) $9,527
Stock-based compensation
expense 27,667 18,797 14,318
Ramtron acquisition costs
and related amortization 1,305 1,305 2,075
Changes in value of
deferred compensation
plan (53) 1,241 75
Impairment of assets,
restructuring and other
charges - 455 1,080
Legal and other 458 654 -
Effect of Non-GAAP
revenue from
intellectual property
license 6,250 - -
Investment related losses
(gains) (1,670) 2,728 1,367
Tax related, interest
income, interest expense
and other expenses 1,751 (3,829) (1,719)
Losses from equity method
investment 1,459 1,559 -
Spansion merger costs and
related amortization 105,754 135,982 -
Non-GAAP net income
(loss) attributable to
Cypress $52,870 $(87,906) $26,723
======= ======== =======
GAAP net income (loss)
per share attributable
to Cypress -diluted $(0.27) $(1.26) $0.06
Stock-based compensation
expense 0.08 0.10 0.09
Ramtron acquisition costs
and related amortization - 0.01 0.01
Changes in value of
deferred compensation
plan - 0.01 -
Impairment of assets,
restructuring and other
charges - - 0.01
Effect of Non-GAAP
revenue from
intellectual property
license 0.02
Investment related losses
(gains) (0.01) 0.01 0.01
Tax related, interest
income, interest expense
and other expenses 0.01 (0.02) (0.01)
Losses from equity method
investment - 0.01 -
Non-GAAP share count
adjustment - - (0.01)
Spansion merger costs and
related amortization 0.32 0.69 -
Non-GAAP net income
(loss) per share
attributable to Cypress
- diluted $0.15 $(0.45) $0.16
----- ------ -----
(a) Refer to the accompanying "Notes to Non-GAAP Financial Measures" for a detailed discussion of management's use of non-GAAP financial measures.
(b) Non-GAAP revenue includes $6.25 million of Samsung intellectual property licensing revenue, not included in GAAP revenue as a result of the effects of purchase accounting for the Spansion merger.
CYPRESS SEMICONDUCTOR CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 28, March 29, June 29, June 28, June 29,
2015 2015 2014 2015 2014
---- ---- ---- ---- ----
Selected Cash Flow Data (Preliminary):
--------------------------------------
Net cash provided
(used) by operating
activities $(65,620) $12,292 $45,307 $(53,327) $69,500
Net cash used by
investing activities $(24,584) $(110,664) $(20,148) $(133,912) $(17,247)
Net cash provided
(used) in financing
activities $66,763 $142,217 $(27,372) $208,979 $(36,828)
Other Supplemental Data (Preliminary):
--------------------------------------
Capital expenditures $18,735 $6,496 $5,767 $25,231 $11,378
Depreciation $36,486 $13,902 $10,133 $50,388 $19,618
Payment of dividend $36,402 $17,931 $17,412 $54,333 $34,107
Dividend paid per share $0.11 $0.11 $0.11 $0.22 $0.22
Dividend yield per
share (a) 3.7% 3.1% 4.1% 3.7% 4.1%
--- --- --- --- ---
(a) Dividend yield per share is calculated based on annualized dividend paid per share divided by the common stock share price at the end of the period.
CYPRESS SEMICONDUCTOR CORPORATION
CONSOLIDATED DILUTED EPS CALCULATION
(In thousands, except per-share data)
(Unaudited)
Three Months Ended
------------------
June 28, March 29, June 29,
2015 2015 2014
---- ---- ----
GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP
---- -------- ---- -------- ---- --------
Net income
(loss)
attributable to
Cypress $(90,051) $52,870 $(246,798) $(87,906) $9,527 $26,723
-------- ------- --------- -------- ------ -------
Weighted-
average common
shares
outstanding
(basic) 333,334 333,334 196,471 196,471 157,936 157,936
Effect of dilutive securities:
Stock options,
unvested
restricted
stock and other - 13,764 - - 6,524 8,761
Impact of
convertible
bond - 15,668 - - - -
Weighted-
average common
shares
outstanding for
diluted
computation 333,334 362,766 196,471 196,471 164,460 166,697
------- ------- ------- ------- ------- -------
Net income
(loss) per
share
attributable to
Cypress -basic $(0.27) $0.16 $(1.26) $(0.45) $0.06 $0.17
Net income
(loss) per
share
attributable to
Cypress -
diluted $(0.27) $0.15 $(1.26) $(0.45) $0.06 $0.16
June 28, March 29, June 29,
2015 2015 2014
---- ---- ----
Average stock
price for the
period ended $13.24 $14.72 $10.13
Common stock
outstanding at
period end (in
thousands) 334,088 331,015 158,299
NOTES TO NON-GAAP FINANCIAL MEASURES
To supplement its consolidated financial results presented in accordance with GAAP, Cypress uses the following non-GAAP financial measures which are adjusted from the most directly comparable GAAP financial measures:
-- Gross margin
-- Research and development expenses
-- Selling, general and administrative expenses
-- Operating income (loss)
-- Net income (loss)
-- Diluted net income (loss) per share
The non-GAAP measures set forth above exclude charges related to our merger with Spansion, stock-based compensation, and other adjustments. Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of Cypress's operations that, when viewed in conjunction with Cypress's GAAP results, provide a more comprehensive understanding of the various factors and trends affecting Cypress's business and operations. Management uses these non-GAAP measures for strategic and business decision-making, internal budgeting, forecasting and resource allocation processes. In addition, these non-GAAP financial measures facilitate management's internal comparisons to Cypress's historical operating results and comparisons to competitors' operating results. Pursuant to the requirements of Regulation G and to make clear to our investors the adjustments we make to GAAP measures, we have provided a reconciliation of the non-GAAP measures to the most directly comparable GAAP financial measures.
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SOURCE Cypress Semiconductor Corp.
