SAN JOSE, Calif. — (BUSINESS WIRE) — April 25, 2019 — Cypress Semiconductor Corporation (NASDAQ: CY), today announced its first quarter 2019 results with the following highlights:
- $539.0 million in revenue, in line with guidance
- GAAP and non-GAAP gross margins were 37.6% and 47.4%, respectively, and represent a 110 bps and 150 bps increase year-over-year
- GAAP and Non-GAAP diluted EPS were $0.05 and $0.27, respectively, above the high-end of guidance
- Closed the NAND JV to exit the business and increase focus on high-growth IoT and automotive end markets
"We delivered a solid first quarter with revenue, gross margin, and diluted EPS meeting or exceeding our guidance," said Hassane El-Khoury, Cypress’ president and chief executive officer. "Despite uncertain market conditions, Cypress’ world-class connect and compute solutions continue to gain strong momentum. Overall design activity increased 15%, led by Automotive and IoT, and in particular we saw strength in automotive platform wins for our new Traveo-II MCU during the quarter. With our focus on these high-growth markets, we remain committed to our Cypress 3.0 strategy while continuing to execute to our long-term financial model."
Revenue and earnings for the quarter are shown below with comparable periods:
(In thousands, except per-share data)
| GAAP | NON-GAAP1 | |||||||||||||||||||||||||
| Q1 2019 | Q4 2018 | Q1 2018 | Q1 2019 | Q4 2018 | Q1 2018 | |||||||||||||||||||||
| Revenue | $ | 539,004 | $ | 604,474 | $ | 582,241 | $ | 539,004 | $ | 604,474 | $ | 582,241 | ||||||||||||||
| Gross margin | 37.6 | % | 37.3 | % | 36.5 | % | 47.4 | % | 47.8 | % | 45.9 | % | ||||||||||||||
| Operating margin | 5.9 | % | 0.5 | % | 6.1 | % | 21.1 | % | 24.5 | % | 19.5 | % | ||||||||||||||
| Net income | $ | 19,714 | $ | 267,114 | $ | 9,078 | $ | 102,104 | $ | 130,990 | $ | 100,296 | ||||||||||||||
| Diluted EPS | $ | 0.05 | $ | 0.72 | $ | 0.02 | $ | 0.27 | $ | 0.35 | $ | 0.27 | ||||||||||||||
| 1. | See the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" tables ("Non-GAAP Reconciliation Tables") included below. | |
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REVENUE SUMMARY |
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(In thousands, except percentages) |
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(Unaudited) |
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| Three Months Ended | ||||||||||||||||||||||||
| March 31, 2019 | December 30, 2018 | April 1, 2018 | Sequential Change | Year-over-year Change | ||||||||||||||||||||
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Business Unit¹ |
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| MCD | $ | 310,389 | $ | 355,793 | $ | 336,710 | (12.8)% | (7.8)% | ||||||||||||||||
| MPD | $ | 228,615 | $ | 248,681 | $ | 245,531 | (8.1)% | (6.9)% | ||||||||||||||||
| Total | $ | 539,004 | $ | 604,474 | $ | 582,241 | (10.8)% | (7.4)% | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
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End Market |
March 31, 2019 | December 30, 2018 | April 1, 2018 | |||||||||||||||||||||
| IoT | 28.5% | 31.5% | 31.9% | |||||||||||||||||||||
| Automotive |
36.7% |
35.5% | 34.3% | |||||||||||||||||||||
| Legacy | 34.8% | 33.0% | 33.8% | |||||||||||||||||||||
| Total | 100% | 100% | 100% | |||||||||||||||||||||
| 1. | The Microcontroller and Connectivity Division ("MCD") includes microcontroller, wireless connectivity and USB products and the Memory Products Division ("MPD") includes RAM, Flash and AgigA Tech products. | |
SECOND QUARTER 2019 FINANCIAL OUTLOOK (1)
