SOURCE: Cypress Semiconductor Corp.

Cypress Semiconductor Corp.

January 22, 2015 08:00 ET

Cypress Reports Fourth-Quarter and Year-End 2014 Results

SAN JOSE, CA--(Marketwired - Jan 22, 2015) - Cypress Semiconductor Corp. (NASDAQ: CY) today announced its fourth-quarter 2014 and fiscal year results, which included the remarks below from its president and CEO, T.J. Rodgers. Highlights for the quarter included:

  • Revenue of $184.1 million and non-GAAP earnings per share of $0.13 met guidance
  • 2014 non-GAAP operating expenses at a 15-year low
  • 2014 non-GAAP earnings per share increased 33% year-over-year
  • Free cash flow increased by $19 million sequentially
  • Announced a $4 billion merger with Spansion that is expected to achieve $135 million in annual cost synergies over three years

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  
    Q4 2014     Q3 2014     Q4 2013     Q4 2014     Q3 2014     Q4 2013  
Revenue   $ 184,097     $ 187,516     $ 167,776     $ 184,097     $ 187,516     $ 167,776  
                                                 
Gross margin     52.4 %     53.5 %     51.0 %     50.9 %     51.7 %     45.6 %
                                                 
Pretax margin     12.6 %     15.0 %     9.4 %     2.7 %     7.4 %     -7.0 %
                                                 
Net income (loss)   $ 22,056     $ 26,538     $ 14,992     $ 3,503     $ 12,840     $ (14,209 )
                                                 
Diluted EPS (loss)   $ 0.13     $ 0.16     $ 0.09     $ 0.02     $ 0.08     $ (0.09 )
                                                 

Our revenue and earnings for the fiscal year are given below, compared with those of the prior year:

(In thousands, except per-share data)

             
    NON-GAAP     GAAP  
    FY 2014     FY 2013     FY 2014     FY 2013  
Revenue   $ 725,497     $ 722,693     $ 725,497     $ 722,693  
                                 
Gross margin     52.6 %     52.2 %     50.1 %     46.9 %
                                 
Pretax margin     12.6 %     9.1 %     2.1 %     -7.7 %
                                 
Net income (loss)   $ 87,291     $ 63,221     $ 17,936     $ (48,241 )
                                 
Diluted EPS (loss)   $ 0.52     $ 0.39     $ 0.11     $ (0.32 )
                                 

Our fourth-quarter revenue was $184.1 million and our non-GAAP earnings per share was $0.13. We continued to execute on our operating expense management initiatives, which led to a year-over-year 33% increase to $0.52 in 2014 non-GAAP earnings per share. We thus are prepared to deliver strong operating leverage as we grow in 2015.

Our planned merger with Spansion has cleared review by the government agencies in the U.S. and Germany. We remain confident that the post-merger company will position us as a leading global provider of microcontrollers, flash and SRAM memories, and automotive components required for today's embedded systems.

BUSINESS REVIEW

+ Our non-GAAP consolidated gross margin for the fourth quarter was 52.4%, down 1.1 percentage points from the previous quarter, primarily due to product and customer mix. Excluding our Emerging Technologies Division, our core semiconductor gross margin was 54.6%.

+ Net inventory at the end of the fourth quarter was $88.2 million, down 0.6% from the third quarter.

+ 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 December 26, 2014. This dividend was paid on January 15, 2015.

NET SALES SUMMARY  
(In thousands, except percentages)  
(Unaudited)  
   
  THREE MONTHS ENDED      
 
Dec. 28,
 
Sept. 28,
  Dec. 29,   Sequential   Year-over-  
Business Unit 2014   2014   2013   Change   Year Change  
PSD1 $ 70,433   $ 68,750   $ 67,746   2 % 4 %
MPD1 $ 88,803   $ 92,179   $ 79,890   -4 % 11 %
DCD1 $ 17,709   $ 19,091   $ 16,482   -7 % 7 %
ETD 2 $ 7,152   $ 7,496   $ 3,658   -5 % 96 %
Total $ 184,097   $ 187,516   $ 167,776   -2 % 10 %
                           
Geographic                          
China and ROW   60 %   60 %   64 % 0 % -6 %
Americas   16 %   17 %   14 % -6 % 14 %
Europe   14 %   14 %   12 % 0 % 17 %
Japan   10 %   9 %   10 % 11 % 0 %
Total   100 %   100 %   100 % 0 % 0 %
                           
Channel                          
Distribution   71 %   68 %   69 % 4 % 3 %
Direct   29 %   32 %   31 % -9 % -6 %
Total   100 %   100 %   100 % 0 % 0 %
                           
1.   PSD, Programmable Systems Division; DCD, Data Communications Division; MPD, Memory Products Division.
2.   ETD, Emerging Technologies Division includes businesses outside our core semiconductor businesses outlined in Footnote 1. Includes subsidiaries AgigA Tech Inc., Deca Technologies Inc., and our foundry business unit.
     
             
    TWELVE MONTHS ENDED        
   
Dec. 28,
   
 Dec. 29,
    Year-over-  
Business Unit   2014     2013     Year Change  
PSD1   $ 283,206     $ 292,707     -3 %
MPD1   $ 347,903     $ 338,986     3 %
DCD1   $ 70,378     $ 79,410     -11 %
ETD 2   $ 24,010     $ 11,590     107 %
Total   $ 725,497     $ 722,693     0.4 %
                       
Geographic                      
China and ROW     61 %     66 %   -8 %
Americas     16 %     14 %   14 %
Europe     14 %     11 %   27 %
Japan     9 %     9 %   0 %
Total     100 %     100 %   0 %
                       
Channel                      
Distribution     69 %     73 %   -5 %
Direct     31 %     27 %   15 %
Total     100 %     100 %   0 %
                       
                       
1.   PSD, Programmable Systems Division; DCD, Data Communications Division; MPD, Memory Products Division.
2.   ETD, Emerging Technologies Division includes businesses outside our core semiconductor businesses outlined in Footnote 1. Includes subsidiaries AgigA Tech Inc., Deca Technologies Inc., and our foundry business unit.

FOURTH-QUARTER 2014 HIGHLIGHTS

+ Cypress and Spansion announced a definitive agreement to merge in an all-stock, tax-free transaction valued at approximately $4 billion. The merger is expected to achieve more than $135 million in cost synergies on an annualized basis over three years and to be accretive to non-GAAP earnings within the first full year after the transaction closes. The combined company will continue to pay $0.11 per share in quarterly dividends to shareholders.

+ Cypress introduced two highly integrated, single-chip Bluetooth® Low Energy (BLE) solutions that simplify the design of low-power, sensor-based systems for the Internet of Things (IoT) and other applications. The new PSoC® 4 BLE Programmable System-on-Chip delivers unprecedented ease of use and integration to applications for the IoT, home automation, healthcare equipment, sports and fitness monitors, and other wearable devices. The PRoC™ BLE Programmable Radio-on-Chip provides a cost-effective, turnkey solution for wireless human interface devices, remote controls and applications that require wireless connectivity.

+ Cypress announced the qualification of its BLE solutions under the Bluetooth 4.1 specification, which is designed to coexist with faster 4G cellular technologies, such as LTE, and to deliver better connections and data transfer. The qualification further simplifies customer Bluetooth Low Energy designs.

+ Cypress introduced its TrueTouch® Gen5 TMA568 capacitive touchscreen controller for large-screen smartphones, tablets and e-readers with advanced features: gloved-finger tracking, 1-mm passive stylus support and hover functionality that enlarges touchscreen content to improve ease of use.

+ Casio selected Cypress's TrueTouch capacitive touchscreen controller and low-power SRAM products for its wearable EX-FR10 camera. TrueTouch provides best-in-class waterproofing, while MoBL® (More Battery Life™) asynchronous SRAMs enable fast throughput and fluid image buffering.

+ Yota Devices announced production of its next-generation YotaPhone with Cypress's TrueTouch Gen5 touchscreen controllers in the smartphone's two displays. The premium Android phone uses the TMA568 controller for advanced multitouch functionality in its standard display and the TMA545 controller for its "electronic paper" display.

+ iConnectivity, a leading developer of digital audio interfaces for musicians, is using Cypress's CapSense® MBR3 mechanical button replacement solution in its next-generation iConnectAUDIO4+ audio interface system. The easy-to-use MBR3 solution enables the implementation of a dynamic, reliable touch-sensing user interface for this system.

+ Cypress began sampling its EZ-USB® HX3™ hub controller in a 36-mm2 ball grid array (BGA) package. The new package makes the hub controller the industry's smallest, saving board space in Ultrabook™ devices, tablets and other mobile and consumer devices.

+ Cypress and Icron Technologies successfully completed interoperability testing between Cypress's EZ-USB FX3™ USB 3.0 peripheral controller and the EZ-USB CX3™ camera controller and Icron's USB 3.0 Spectra™ 3001-15 active copper extension cable. The Icron cable extends USB 3.0 performance to 15 meters and enables the Cypress controllers to address a broader range of machine vision and industrial applications.

+ Cypress's RadStop™ radiation-hardened 72-Mb QDR-II+ SRAMs and 4-Mbit fast asynchronous SRAMs have met the Qualified Manufacturers List Class V and Class Q standards -- the highest quality and reliability standards for aerospace-grade ICs in satellites and other applications.

+ United Microelectronics Corporation (UMC) licensed Cypress's SONOS (Silicon Oxide Nitride Oxide Silicon) embedded flash memory intellectual property (IP) for its 40-nanometer process technology. UMC had licensed Cypress's 55-nanometer SONOS IP in 2014. This ongoing collaboration strengthens the position of SONOS as the next-generation embedded-flash solution of choice for foundries.

Follow Cypress Online

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 1, PSoC 3, PSoC 4 and PSoC 5LP programmable system-on-chip families. Cypress is the world leader in capacitive user interface solutions including CapSense touch sensing, TrueTouch touchscreens, and trackpad solutions for notebook PCs and peripherals. Cypress is a world leader in USB controllers, which enhance connectivity and performance in a wide range of consumer and industrial products. Cypress is also the world leader in SRAM and nonvolatile RAM memories. Cypress serves numerous major 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

Statements herein that are not historical facts and that refer to Cypress or its subsidiaries' plans and expectations for Q1 2015 and the remainder of fiscal year 2015 and beyond are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. We may use words such as "believe," "expect," "future," "plan," "intend" and similar expressions to identify such forward-looking statements that include, but are not limited to, statements related to our expectations regarding the proposed merger with Spansion which include dependence on government regulators and shareholder approval; the semiconductor market; the strength and growth of our proprietary and programmable products; our expectations regarding our revenue growth and earnings leverage; our expectation that our ETD division will significantly contribute to our 2015 revenue growth; 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, 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, 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 our filings with the Securities and Exchange Commission. We assume no responsibility to update any such forward-looking statements.

Cypress, the Cypress logo, PSoC, TrueTouch, CapSense, EZ-USB and MoBL are registered trademarks and PRoC, More Battery Life, HX3, FX3, CX3 and RadStop 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)  
             
    December 28,     December 29,  
    2014     2013  
                 
ASSETS                
                 
  Cash, cash equivalents and short-term investments   $ 118,812     $ 104,462  
  Accounts receivable, net     75,984       81,084  
  Inventories, net (a)     88,227       100,612  
  Property, plant and equipment, net     237,763       258,585  
  Goodwill and other intangible assets, net     99,615       106,523  
  Other assets     122,880       113,707  
    Total assets   $ 743,281     $ 764,973  
                 
LIABILITIES AND EQUITY                
                 
  Accounts payable   $ 42,678     $ 47,893  
  Deferred margin on sales to distributors     95,187       122,578  
  Income tax liabilities     21,494       29,001  
  Other liabilities     155,057       159,866  
  Long-term revolving credit facility     227,000       227,000  
    Total liabilities     541,416       586,338  
  Total Cypress stockholders' equity     208,320       183,109  
  Noncontrolling interest     (6,455 )     (4,474 )
    Total equity     201,865       178,635  
      Total liabilities and equity   $ 743,281     $ 764,973  
     
(a)   Net inventories include $2.0 million and $3.2 million of capitalized inventories related to stock compensation expense, as of December 28, 2014 and December 29, 2013, respectively.
     
   
CYPRESS SEMICONDUCTOR CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
ON A GAAP BASIS  
(In thousands, except per-share data)  
(Unaudited)  
                               
    Three Months Ended     Twelve Months Ended  
    December 28,     September 29,     December 29,     December 28,     December 29,  
    2014     2014     2013     2014     2013  
                                         
Revenues   $ 184,097     $ 187,516     $ 167,776     $ 725,497     $ 722,693  
Cost of revenues     90,395       90,633       91,328       361,820       384,121  
Gross margin     93,702       96,883       76,448       363,677     $ 338,572  
Operating expenses:                                        
  Research and development     39,677       38,626       42,343       164,560       190,906  
  Selling, general and administrative     37,746       41,119       43,623       163,488       182,671  
  Acquisition costs     7,253       -       -       7,253       -  
  Amortization of acquisition-related intangibles     1,305       1,701       1,850       6,683       7,833  
  Restructuring charges     72       (238 )     (469 )     (1,180 )     15,357  
      Total operating expenses, net     86,053       81,208       87,347       340,804       396,767  
Operating income (loss)     7,649       15,675       (10,899 )     22,873       (58,195 )
Interest and other income, net     (2,759 )     (1,890 )     (1,437 )     (7,528 )     348  
Income (loss) before income taxes     4,890       13,785       (12,336 )     15,345       (57,847 )
Income tax benefit (provision)     (1,814 )     (1,231 )     (2,210 )     1,173       7,761  
Income (loss), net of taxes     3,076       12,554       (14,546 )     16,518       (50,086 )
Adjust for net loss attributable to noncontrolling interest     426       286       337       1,418       1,845  
Net Income (loss) attributable to Cypress   $ 3,502     $ 12,840     $ (14,209 )   $ 17,936     $ (48,241 )
                                         
Net Income (loss) per share attributable to Cypress:                                        
    Basic   $ 0.02     $ 0.08     $ (0.09 )   $ 0.11     $ (0.31 )
    Diluted   $ 0.02     $ 0.08     $ (0.09 )   $ 0.11     $ (0.31 )
    Cash dividend per share   $ 0.11     $ 0.11     $ 0.11     $ 0.44     $ 0.44  
Shares used in net income (loss) per share calculation:                                        
    Basic     161,864       159,759       151,580       159,031       148,558  
    Diluted     169,148       166,481       151,580       169,122       148,558  
                                             
  CYPRESS SEMICONDUCTOR CORPORATION
  RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (a)
  (In thousands, except per-share data)
  (Unaudited)
                                                                 
    Three Months Ended     Twelve Months Ended  
    December 28,     % of     September 28,     % of     December 29,     % of     December 29,     % of     December 29,         % of  
    2014     Revenue     2014     Revenue     2013     Revenue     2014     Revenue     2013         Revenue  
                                                                           
GAAP gross margin   $ 93,702     50.9 %   $ 96,883     51.7 %   $ 76,448     45.6 %   $ 363,677     50.1 %   $ 338,572         46.8 %
  Stock-based compensation expense     2,759     1.5 %     3,766     2.0 %     3,088     1.8 %     13,209     1.8 %     12,789         1.8 %
  Acquisition costs and related amortization     22     0.0 %     -     0.0 %     5,562     3.3 %     (86 )   0.0 %     24,805         3.4 %
  Changes in value of deferred compensation plan     (44 )   0.0 %     4     0.0 %     136     0.1 %     427     0.1 %     854         0.2 %
  Impairment of assets, restructuring and other     -     0.0 %     (303 )   -0.2 %     269     0.2 %     4,489     0.6 %     241         0.0 %
  Tax and tax-related items     -     -       -     0.0 %     -     -       -     -       -         -  
Non-GAAP gross margin   $ 96,439     52.4 %   $ 100,350     53.5 %   $ 85,503     51.0 %   $ 381,716     52.6 %   $ 377,261         52.2 %
                                                                           
GAAP research and development expenses   $ 39,677           $ 38,626           $ 42,344           $ 164,560           $ 190,906            
  Stock-based compensation expense     (2,553 )           (2,089 )           (7,356 )           (16,187 )           (26,042 )          
  Acquisition costs and related amortization     -             -             -                           (252 )          
  Changes in value of deferred compensation plan     128             (13 )           (282 )           (793 )           (1,744 )          
  Impairment of assets, restructuring and other     (252 )           (231 )           1,368             (482 )           (1,104 )          
Non-GAAP research and development expenses   $ 37,000           $ 36,293           $ 36,074           $ 147,098           $ 161,764            
                                                                           
GAAP selling, general and administrative expenses   $ 46,376           $ 41,119           $ 43,623           $ 176,244           $ 182,671            
  Stock-based compensation expense     (1,436 )           (6,427 )           (10,432 )           (20,774 )           (34,187 )          
  Acquisition costs and related amortization     (8,602 )           -             (148 )           (14,330 )           (1,168 )          
  Changes in value of deferred compensation plan     229             (24 )           (607 )           (1,855 )           (3,795 )          
  Legal and other     (1,330 )           -             -             (1,330 )                        
  Impairment of assets, restructuring and other     (72 )           64             -             (97 )           -            
Non-GAAP selling, general and administrative expenses   $ 35,165           $ 34,732           $ 32,436           $ 137,858           $ 143,521            
                                                                           
GAAP operating income (loss)   $ 7,649           $ 15,675           $ (10,899 )           22,873           $ (58,195 )          
  Stock-based compensation expense     6,748             12,282             20,877             50,170             73,020            
  Acquisition costs and related amortization     8,622             1,701             7,558             14,244             34,056            
  Changes in value of deferred compensation plan     (402 )           41             1,026             3,075             6,393            
  Impairment of assets, restructuring and other     328             (374 )           (1,324 )           5,067             17,152            
  Legal and other     1,330             -             -             1,330             -            
Non-GAAP operating income   $ 24,275           $ 29,325           $ 17,238           $ 96,759           $ 72,426            
                                                                           
GAAP pretax profit     4,890     2.7 %   $ 13,785     7.4 %   $ (12,336 )   -7.4 %     15,345     2.1 %     (57,847 )       -8.0 %
  Stock-based compensation expense     6,748     3.7 %     12,282     6.5 %     20,877     12.4 %     50,170     6.9 %     73,020         10.1 %
  Acquisition costs and related amortization     8,622     4.7 %     1,701     0.9 %     7,558     4.5 %     14,244     2.0 %     34,056         4.7 %
  Changes in value of deferred compensation plan     (1,048 )   -0.6 %     288     0.2 %     1,026     0.6 %     61     0.0 %     22         0.0 %
  Legal and other     1,330     0.7 %     -     0.0 %     -     0.0 %     1,330     0.2 %     -         0.0 %
  Impairment of assets, restructuring and other     327     0.2 %     (374 )   -0.1 %     (1,324 )   -0.8 %     3,737     0.5 %     17,152         2.4 %
  Tax related and other items     (618 )   -0.3 %     (967 )   -0.5 %     (633 )   -0.4 %     (263 )   0.0 %     (2,267 )       -0.3 %
  Investment related losses     1,495     0.8 %     -     0.0 %     -     0.0 %     1,495     0.2 %     -         0.0 %
  Losses from equity method investment     1,403     0.7 %     1,386     0.7 %     632     0.4 %     5,068     0.7 %     1,877     (b)   0.3 %
Non-GAAP pretax profit     23,149     12.6 %     28,101     15.1 %     15,800     9.3 %     91,187     12.6 %     66,013         9.2 %
                                                                           
                                                                           
GAAP net income (loss) attributable to Cypress   $ 3,503           $ 12,840           $ (14,209 )         $ 17,936           $ (48,241 )   (b)      
  Stock-based compensation expense     6,748             12,282             20,877             50,170             73,020            
  Acquisition costs and related amortization     8,622             1,701             7,558             14,244             11,514            
  Changes in value of deferred compensation plan     (1,048 )           288             (535 )           61             22            
  Investment related losses (gains)     1,495             -             930             1,495                          
  Impairment of assets, restructuring and other     327             (374 )           (1,324 )           3,737             39,694            
  Legal and other     1,330             -             -             1,330                          
  Tax related and other items     (324 )           (1,585 )           1,063             (6,750 )           (14,665 )          
  Losses from equity method investment     1,403             1,386             632             5,068             1,877     (b)      
Non-GAAP net income attributable to Cypress   $ 22,056           $ 26,538           $ 14,992           $ 87,291           $ 63,221            
                                                                           
GAAP net income (loss) per share attributable to Cypress - diluted   $ 0.02           $ 0.08           $ (0.09 )         $ 0.11           $ (0.32 )          
  Stock-based compensation expense     0.04             0.07             0.13             0.30             0.45            
  Acquisition costs and related amortization     0.05             0.01             0.05             0.08             0.21            
  Changes in value of deferred compensation plan     (0.01 )           -             (0.01 )           -             0.01            
  Impairment of assets, restructuring and other     -             -             (0.01 )           0.02             0.10            
  Legal and other     0.01             -             -             0.01             -            
  Tax related and other items     -             (0.01 )           0.01             (0.04 )           (0.08 )          
  Investment related losses (gains)     0.01             -             0.01             0.01             (0.01 )          
  Non-GAAP share count adjustment     -             -             -             -             0.02            
  Losses from equity method investment     0.01             0.01             -             0.03             0.01     (b)      
Non-GAAP net income per share attributable to Cypress - diluted   $ 0.13           $ 0.16           $ 0.09           $ 0.52           $ 0.39            
                                                                           
                                                                           
                                                                           
(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)   Adjusted for impact of investment in equity method investee. See footnote disclosures related thereto in our 10Q filed on August 6, 2014.
     
CYPRESS SEMICONDUCTOR CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(In thousands)
(Unaudited)
 
    Three Months Ended     Twelve Months Ended  
    December 28,     September 28,     December 29,     December 28,     December 29,  
    2014     2014     2013     2014     2013  
Selected Cash Flow Data (Preliminary):                                        
  Net cash provided by operating activities   $ 25,514     $ 8,322     $ 20,171     $ 103,336     $ 66,696  
  Net cash provided by (used in) investing activities   $ (13,736 )   $ (11,173 )   $ 569     $ (42,156 )   $ 1,139  
  Net cash provided by (used in) financing activities   $ (13,126 )   $ 6,501     $ (11,276 )   $ (43,453 )   $ (45,024 )
                                         
Other Supplemental Data (Preliminary):                                        
  Capital expenditures   $ 3,769     $ 5,800     $ 8,750     $ 20,947     $ 36,627  
  Depreciation   $ 10,013     $ 10,093     $ 9,436     $ 39,724     $ 39,572  
  Payment of dividend   $ 17,728     $ 17,413     $ 16,578     $ 69,248     $ 64,819  
  Dividend paid per share   $ 0.11     $ 0.11     $ 0.11     $ 0.11     $ 0.44  
  Dividend yield per share (a)     3.0 %     4.4 %     4.3 %     3.0 %     4.3 %
                                         
(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   Twelve Months Ended
    December 29,   September 28,   December 29,   December 28,   December 29,
    2014   2014   2013   2014   2013
    GAAP   Non-GAAP   GAAP   Non-GAAP   GAAP     Non-GAAP   GAAP   Non-GAAP   GAAP     Non-GAAP
                                                                 
Net income (loss) attributable to Cypress   $ 3,502   $ 22,056   $ 12,840   $ 26,538   $ (14,209 )   $ 14,992   $ 17,936   $ 87,291   $ (48,241 )   $ 63,221
                                                                 
Weighted-average common shares outstanding (basic)     161,864     161,864     159,759     159,759     151,580       151,580     159,031     159,031     148,558       148,558
Effect of dilutive securities:                                                                
  Stock options, unvested restricted stock and other     7,284     8,892     6,722     8,460     -       14,224     10,091     9,331     -       12,954
Weighted-average common shares outstanding for diluted computation     169,148     170,756     166,481     168,219     151,580       165,804     169,122     168,362     148,558       161,512
                                                                 
Net income (loss) per share attributable to Cypress - basic   $ 0.02   $ 0.14   $ 0.08   $ 0.17   $ (0.09 )   $ 0.10   $ 0.11   $ 0.55   $ (0.32 )   $ 0.43
Net income (loss) per share attributable to Cypress - diluted   $ 0.02   $ 0.13   $ 0.08   $ 0.16   $ (0.09 )   $ 0.09   $ 0.11   $ 0.52   $ (0.32 )   $ 0.39
                                                                 
                     
                     
    December 28,   September 28,   December 29,   December 28,   December 29,
    2014   2014   2013   2014   2013
                     
Average stock price for the period ended   $10.77   $10.54   $9.45   $10.18   $10.59
Common stock outstanding at period end (in thousands)   163,013   161,178   153,214   163,013   153,214
                     
                     

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 primarily related to stock-based compensation, which represented 72% of total adjustments for the year ended December 28, 2014, as well as restructuring charges, acquisition-related expenses 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. 

Contact Information

  • Contacts:
    Thad Trent
    EVP Finance & Administration and CFO
    (408) 943-2925

    Joseph L. McCarthy
    Director, Corporate Communications
    (408) 943-2902