CYPRESS SEMICONDUCTOR CORPORATION

RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES  (a)

(In thousands, except per-share data)

(Unaudited)

Table A

Q4 2015

Adjustments (Table B)

Non-GAAP

GAAP

Adjustments (Table C)

Revenue (b)

$     418,964

$         6,250

$    425,214

$    450,128

$              6,250

$     456,378

Costs and expenses:

Cost of revenues

293,179

(24,807)

268,372

306,880

(31,935)

274,945

Research and development

73,967

(7,737)

66,230

73,682

(7,352)

66,330

Selling, general and administrative

74,501

(15,820)

58,681

85,386

(22,185)

63,201

Amortization of  intangible assets

35,187

(35,187)

-

33,960

(33,959)

-

Impairment of acquisition-related intangible assets

33,944

(33,944)

-

-

-

-

Restructuring costs

270

(270)

-

1,405

(1,406)

-

  Total costs and expenses

(117,765)

393,283

501,313

(96,837)

404,476

Operating (loss) income

(92,084)

124,015

31,931

(51,185)

103,087

51,902

Interest and other expense, net

(8,329)

2,832

(5,497)

(5,886)

2,118

(3,768)

(Loss) income before income taxes

(100,412)

126,847

26,434

(57,071)

105,205

48,134

Income tax benefit (provision)

161

(3,581)

(15,726)

12,653

(3,073)

(Loss) income, net of taxes

(104,154)

127,008

22,853

(72,797)

117,858

45,061

Net loss attributable to noncontrolling interest

132

-

132

467

-

467

Net (loss) income attributable to Cypress

$     127,008

$      22,985

$          117,858

Net (loss) income per share attributable to Cypress:

  Basic

$         (0.32)

$          0.07

$        (0.22)

$           0.14

  Diluted

$         (0.32)

$          0.07

$        (0.22)

$           0.13

Cash dividend declared per share

$           0.11

$          0.11

$          0.11

$           0.11

Shares used in net (loss) income per share calculation:

  Basic

320,351

-

320,351

334,447

-

334,447

  Diluted

320,351

20,462

340,813

334,447

27,782

362,229