Cypress Reports First Quarter 2018 Results
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Cypress Reports First Quarter 2018 Results

SAN JOSE, Calif. — (BUSINESS WIRE) — April 26, 2018 — Cypress Semiconductor Corporation (NASDAQ: CY), a leader in embedded solutions, today announced its first quarter 2018 results with the following highlights:

“Cypress continued its solid execution this quarter with strong financial results and business performance,” stated Hassane El-Khoury, Cypress’ president and chief executive officer. “Our focus on the Cypress 3.0 strategy resulted in revenue increasing 9.5% and earnings per share more than doubling year over year. During the quarter, we expanded our embedded solutions portfolio with the introduction of several hardware and software innovations. These empowered Cypress, and our partners, to solve problems for consumer, industrial and automotive customers of all sizes, while also enhancing our ability to cross-sell our entire portfolio. The strength of our innovation muscle is clearly illustrated by our track record of winning with market movers, while simultaneously driving a significant increase in our overall customer count supporting our go-broad efforts.”

Revenue and earnings for the quarter are shown below with comparable periods:

(In thousands, except per-share data)

    GAAP1     NON-GAAP2
Q1 2018     Q4 2017     Q1 2017 Q1 2018     Q4 2017     Q1 2017
Revenue $ 582,241 $ 597,547 $ 531,874 $ 582,241 $ 597,547 $ 531,874
Gross margin 36.5 % 37.2 % 29.5 % 45.9 % 45.4 % 39.3 %
Operating margin 6.1 % 7.0 % (2.6 )% 19.5 % 20.2 % 12.2 %
Net income (loss) $ 9,078 $ (34,012 ) $ (42,999 ) $ 100,296 $ 104,686 $ 45,887
Diluted EPS (loss) $ 0.02 $ (0.10 ) $ (0.13 ) $ 0.27 $ 0.28 $ 0.13
1.   During Q1'18, certain expenses have been reclassified as part of cost of revenue. Historical results have been conformed with Q1'18 presentation.
2. See “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables (“Non-GAAP Results” tables) included below.
 

BUSINESS REVIEW

+ Cypress announced key developments in its Wireless Connectivity solutions during the quarter. The introduction of its ModusToolbox™ software suite empowers developers with an intuitive platform designed to create winning IoT products in record time. The new Raspberry Pi 3 Model B+ developers board debuted featuring Cypress’ 802.11ac combo solution to deliver reliable, interoperable and lightning-fast Wi-Fi® connectivity for developers eager to bring their great Internet of Things (IoT) products to life.

+ In the automotive space, Cypress introduced Excelon™, a family of high-performance nonvolatile memory products to solve mission-critical data logging problems for applications such as Advanced Driver-Assistance Systems (ADAS). Cypress also announced that e.solutions GmbH, a joint venture of Audi and Elektrobit, has integrated Cypress’ wireless connectivity solution into its design for new in-vehicle communication units, including in the 2018 Audi A8. The solution is based on Cypress’ Real Simultaneous Dual Band (RSDB) automotive-grade Wi-Fi and Bluetooth® combo solution, which enables multiple users to connect and stream unique content to their individual devices simultaneously.

+ Cypress also expanded its sensing solutions with the new PSoC® 4700S series of microcontrollers (MCUs) that uses inductive sensing to detect inputs on metal surfaces. The devices allow product developers to achieve aesthetic differentiation by using metallic materials in their designs.

+ Cypress paid a cash dividend of $39.4 million, or $0.11 per share, to holders of record of the Company’s common stock as of the close of business on March 29, 2018 and paid on April 19, 2018. The dividend was equivalent to a 2.6% annualized yield as of March 29, 2018.

 
REVENUE SUMMARY

(In thousands, except percentages)

(Unaudited)
 
    Three Months Ended
April 1,     December 31,     April 2,     Sequential     Year-over-
2018     2017     2017     Change     year Change

Business Unit

         
MCD $ 336,710 $ 357,247 317,901 (6 )% 6 %
MPD $ 245,531   $ 240,300   213,973   2 % 15 %
Total $ 582,241   $ 597,547   531,874   (3 )% 9 %
 

End Market

Industrial 18 % 17 % 20 % 2 % (1 )%
Automotive 34 % 30 % 33 % 11 % 15 %
Consumer 31 % 35 % 34 % (13 )% %
Enterprise   17 %   18 % 13 % (10 )% 37 %
Total   100 %   100 % 100 % % %
1.   The Microcontroller and Connectivity Division ("MCD") includes microcontroller, connectivity and USB products and the Memory Products Division ("MPD") includes RAM, Flash and AgigA Tech products.
 

SECOND QUARTER 2018 FINANCIAL OUTLOOK

For the second quarter of 2018, Cypress estimates financial results as follows:

      GAAP     Non-GAAP
Revenue     $605 million to $630 million
Gross Margin %     36.0% to 37.0%     45.5% to 46.5%
Diluted EPS     $0.01 to $0.04     $0.27 to $0.31
       

A reconciliation of GAAP forward-looking estimates to non-GAAP forward-looking estimates may be found in the tables at the end of this earnings report.

The timing and amount of certain material items, including restructuring charges, asset impairments, changes in value of deferred compensation assets and liabilities, impact of stock-based compensation from modification of equity awards, and the tax impact of non-GAAP adjustments, which are needed to estimate GAAP financial measures are either inherently unpredictable or outside the control of the Company, and may have a significant impact on the Company’s financial results. Accordingly, Cypress cannot provide a full quantitative reconciliation for such non-GAAP financial measures included as part of the second quarter 2018 financial outlook to the most directly comparable GAAP measure without unreasonable effort and additional adjustments may be reflected in our non-GAAP results for the second quarter of 2018. Cypress has qualitatively described below, under the section “Non-GAAP Financial Measures,” the anticipated differences between the non-GAAP financial measures and the most directly comparable GAAP measures.

CONFERENCE CALL AND WEBCAST INFORMATION

Cypress will host its quarterly conference call on April 26, 2018 at 1:30 p.m. Pacific Daylight Time to discuss its first quarter 2018 results and outlook for the second quarter of 2018.

All interested parties may dial 517-308-9119 and provide the passcode “Cypress” to listen to the call. The event will be broadcast over the Internet and may be accessed through Cypress’ website at www.cypress.com/investors. The archived presentation will be available for two weeks immediately following the event.

FOLLOW CYPRESS ONLINE

Join the Cypress Developer Community, read our blog, follow us on Twitter, Facebook and LinkedIn, and watch Cypress videos on our Video Library or YouTube.

ABOUT CYPRESS

Cypress is a leader in advanced embedded solutions for the world’s most innovative automotive, industrial, smart home appliances, consumer electronics and medical products. Cypress’ microcontrollers, analog ICs, wireless and USB-based connectivity solutions and reliable, high-performance memories help engineers design differentiated products and get them to market first. Cypress is committed to providing customers with the best support and development resources on the planet enabling them to disrupt markets by creating new product categories. To learn more, go to www.cypress.com.

NON-GAAP FINANCIAL MEASURES

To supplement its condensed consolidated unaudited financial results presented in accordance with GAAP, Cypress uses the non-GAAP financial measures listed below, which are adjusted from the most directly comparable GAAP financial measures to exclude certain items, as described in more detail below.

Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of the Company's operations which, when viewed in conjunction with Cypress' GAAP results, provide a more comprehensive understanding of the various factors and trends affecting the Company's business and operations.

The Company presents non-GAAP financial measures because management uses these measures to analyze and assess the Company's financial results and to manage the business.

There are limitations in using non-GAAP financial measures including those discussed below. Moreover, the Company’s non-GAAP measures may be calculated differently than the non-GAAP financial measures used by other companies. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measures. The non-GAAP financial measures supplement and should be viewed in conjunction with GAAP financial measures.

As presented in the "Non-GAAP Results" tables in this press release, each of the non-GAAP financial measures excludes one or more of the following items:

Acquisition-related charges: Acquisition-related charges are not factored into management's evaluation of Cypress' long-term performance after the completion of acquisitions. However, a limitation of non-GAAP measures that exclude acquisition-related charges is that these charges may represent payments that reduce the cash available to the Company for other purposes. Acquisition-related expenses primarily include:

Share-based compensation expense: Share-based compensation expense relates primarily to employee stock options, restricted stock units, performance stock units and the employee stock purchase plan. Share-based compensation expense is a non-cash expense that is affected by changes in market factors including the price of Cypress’ common shares, which are not within the control of management. In addition, the valuation of share-based compensation is subjective, and the expense recognized by Cypress may be significantly different than the expense recognized by other companies for similar equity awards, which makes it difficult to assess Cypress’ results compared to its competitors. Accordingly, management excludes this item from its internal operating forecasts and models. However, a limitation of non-GAAP measures that exclude share-based compensation expense is that they do not reflect the full costs of compensating employees.

EBITDA: Consolidated EBITDA is calculated by adding back depreciation to the Non-GAAP operating income. EBITDA may be useful to management, investors, and other users of our financial information because it, during a given period, is an indicator of the amount of cash generated that is available to repay debt obligations, make investments, and for certain other activities. However, EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the business. In addition, EBITDA should not be considered as a substitute for, or superior to net income, operating income, diluted earnings, or net cash provided by operating activities, or other financial measures prepared in accordance with GAAP.

Other adjustments: These items are excluded from non-GAAP financial measures because they are not related to the core operating activities and ongoing operating performance of Cypress. Excluding these items, which can vary significantly from quarter to quarter, allows management to better compare Cypress’ period-over-period performance. However, limitations of non-GAAP measures that exclude these items include that these adjustments are often subjective and may not be comparable to similarly titled non-GAAP financial measures used by other companies. Other adjustments primarily include:

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,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “future,” “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 our estimated non-GAAP revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP EPS, net interest expense, tax expense, capital expenditures and depreciation for the second quarter of fiscal 2018 (on a GAAP or non-GAAP basis); sources of revenue for the second quarter; the expected inventory levels, cash flow, pricing and profitability; estimates of certain GAAP to non-GAAP reconciling items for the second quarter; the demand environment for semiconductors; the expected impact of our gross margin improvement plan; the impact of seasonality on revenue; cross-selling opportunities in the automotive business; our ability to meet our targeted range of inventory; the expected or anticipated uses of cash flow, including to pay dividends, repurchase shares of common stock, or pay down our existing indebtedness; and plans to reduce excess inventory. Such statements reflect our current expectations, which are based on information and data available to our management as of the date of this press release. Our actual results may differ materially due to a variety of risks and uncertainties, including, but not limited to: global economic and market conditions; business conditions and growth trends in the semiconductor market; our ability to compete effectively; the volatility in supply and demand conditions for our products, including but not limited to the impact of seasonality on supply and demand; our ability to develop, introduce and sell new products and technologies; potential problems relating to our manufacturing activities; the impact of acquisitions; our ability to attract and retain key personnel; the unpredictability and expense of legal proceedings; and other risks and uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections 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 and PSoC are registered trademarks and ModusToolbox and Excelon are trademarks of Cypress Semiconductor Corporation. All other trademarks are property of their owners.

 
 
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
    April 1, 2018     December 31, 2017
 
ASSETS
Cash, cash equivalents and short-term investments $ 106,752 $ 151,596
Accounts receivable, net 393,303 295,991
Inventories 275,449 272,127
Property, plant and equipment, net 294,299 289,554
Goodwill and other intangible assets, net 2,100,281 2,154,592
Other assets   370,339   373,190
Total assets $ 3,540,423 $ 3,537,050
LIABILITIES AND EQUITY
Accounts payable $ 236,930 $ 213,101
Income tax liabilities 54,083 52,006
Revenue reserves, deferred margin and other liabilities 499,921 497,838
Revolving credit facility and long-term debt   920,684   956,513
Total liabilities   1,711,618   1,719,458
Total Cypress stockholders' equity 1,827,737 1,816,536
Non-controlling interest   1,068   1,056
Total equity   1,828,805   1,817,592
Total liabilities and equity $ 3,540,423 $ 3,537,050
 
 
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
ON A GAAP BASIS
(In thousands, except per-share data)
(Unaudited)
 
    Three Months Ended
April 1, 2018     December 31, 2017     April 2, 2017
Revenues $ 582,241 $ 597,547 $ 531,874
Cost of revenue   369,849     375,162     374,766  
Gross profit1   212,392     222,385     157,108  
Research and development 93,233 94,566 89,348
Selling, general and administrative   83,397     86,125     81,333  
Total operating expenses   176,630     180,691     170,681  
Operating income (loss) 35,762 41,694 (13,573 )
Interest and other expense, net   (18,154 )   (21,561 )   (19,359 )
Income (loss) before income taxes and non-controlling interest 17,608 20,133 (32,932 )
Income tax provision (5,057 ) 2,773 (4,927 )
Equity in net loss of equity method investees   (3,461 )   (56,930 )   (5,076 )
Net income (loss) 9,090 (34,024 ) (42,935 )
Net gain attributable to non-controlling interests   (12 )   12     (64 )
Net income (loss) attributable to Cypress $ 9,078   $ (34,012 ) $ (42,999 )
Net income (loss) per share attributable to Cypress:
Basic $ 0.03 $ (0.10 ) $ (0.13 )
Diluted $ 0.02 $ (0.10 ) $ (0.13 )
Cash dividend declared per share $ 0.11 $ 0.11 $ 0.11
Shares used in net income (loss) per share calculation:
Basic 355,461 343,011 326,964
Diluted 370,592 343,011 326,964
1.   During Q1'18, certain expenses have been reclassified as part of cost of revenue. Historical results have been conformed with Q1'18 presentation.
 
 
CYPRESS SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per-share data)
(Unaudited)
 

Table A: GAAP to Non-GAAP reconciling items: Three Months Ended Q1 2018

           

Selling, general

   

Interest and

   

Income tax

Cost of

Research and

and

other

(provision)

revenues

development

administrative

expense, net

benefit

GAAP [i] $ 369,849 $ 93,233 $ 83,397 $ (21,615 ) $ (5,057 )
[1] Stock based compensation 3,584 6,713 8,161
[2] Changes in value of deferred compensation plan 61 272 350 (266 )
[3] Share in net loss and impairment of equity method investees 3,461
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others 3,431
[5] Loss on extinguishment of Spansion convertible notes and debt issuance cost write off due to refinancing 3,258
[6] Amortization of debt issuance costs 1,073
[7] Amortization of acquisition-related intangible assets and other 49,438 5,150
[8] Restructuring charges 1,887 292 1,917
[9] Tax impact               393     2,043  
Non - GAAP [ii] $ 314,879   $ 85,956   $ 67,819   $ (10,265 ) $ (3,014 )
Impact of reconciling items [ii - i] $ (54,970 ) $ (7,277 ) $ (15,578 ) $ 11,350 $ 2,043
 
 

Table B: GAAP to Non-GAAP reconciling items: Three Months Ended Q4 2017

       

Research

   

Selling, general

   

Interest and

   

Income tax

Cost of

and

and

other expense,

(provision)

revenues

development

administrative

net

benefit

GAAP [i] $ 375,162 $ 94,566 $ 86,125 $ (78,491 ) $ 2,773
[1] Stock based compensation 3,001 8,050 12,014
[2] Changes in value of deferred compensation plan 92 389 617 (1,210 )
[3] Merger, integration, related costs and adjustments related to assets held for sale 1,334 (135 ) 11
[4] Share in net loss and impairment of equity method investees 56,930
[5] Imputed interest on convertible debt, equity component amortization on convertible debt and others 3,378
[6] Loss on extinguishment of Spansion convertible notes 4,250
[7] Amortization of debt issuance costs 1,011
[8] Amortization of acquisition-related intangible assets 44,199 5,025
[9] Litigation settlement (1,000 )
[10] Restructuring charges 317 3,205 2,097
[11] Tax impact               151     (5,027 )
Non - GAAP [ii] $ 326,219   $ 82,922   $ 67,507   $ (13,970 ) $ (2,254 )
Impact of reconciling items [ii - i] $ (48,943 ) $ (11,644 ) $ (18,618 ) $ 64,521 $ (5,027 )
 
 

Table C: GAAP to Non-GAAP reconciling items: Three Months Ended Q1 2017

           

Selling, general

   

Interest and

   

Income tax

Cost of

Research and

and

other expense,

(provision)

revenues

development

administrative

net

benefit

GAAP [i] 374,766 89,348 81,333 (24,435 ) (4,927 )
[1] Stock based compensation 3,884 10,286 8,983
[2] Changes in value of deferred compensation plan 167 597 1,008 (1,558 )
[3] Merger, integration, related costs and adjustments related to assets held for sale 1,350 (1,479 )
[4] Inventory Step-up related to acquisition accounting 2,864
[5] Share in net loss and impairment of equity method investees 5,076
[6] Imputed interest on convertible debt, equity component amortization on convertible debt and others 3,489
[7] Amortization of debt issuance costs 858
[8] Amortization of acquisition-related intangible assets 43,167 5,083
[9] Restructuring charges 231 2,352 (12 )
[10] Tax impact       415   2,125  
Non - GAAP [ii] 323,103   76,113   67,750   (16,155 ) (2,802 )
Impact of reconciling items [ii - i] (51,663 ) (13,235 ) (13,583 ) 8,280 2,125
 
 

Table D: Gross Margin %

    Q1'18     Q4'17     Q1'17
GAAP     Non-GAAP GAAP     Non-GAAP GAAP     Non-GAAP
Revenue [i] $ 582,241 $ 582,241 $ 597,547 $ 597,547 $ 531,874 $ 531,874
Cost of revenues (See Table A, B, C) [ii]   369,849     314,879     375,162     326,219     374,766     323,103  
Gross profit [iii] [ii - i] $ 212,392   $ 267,362   $ 222,385   $ 271,328   $ 157,108   $ 208,771  
Gross Margin % [iii / i] 36.5 % 45.9 % 37.2 % 45.4 % 29.5 % 39.3 %
 
 

Table E: Operating income

    Q1'18     Q4'17     Q1'17
GAAP operating income (loss) [i] $ 35,762 $ 41,694 $ (13,573 )
Impact of reconciling items on Cost of revenues (see Table A, B, C) 54,970 48,943 51,663
Impact of reconciling items on R&D (see Table A, B, C) 7,277 11,644 13,235
Impact of reconciling items on SG&A (see Table A, B, C)   15,578     18,618     13,583  
Non-GAAP operating income [ii] $ 113,587   $ 120,899   $ 64,908  
Impact of reconciling items [ii - i] $ 77,825 $ 79,205 $ 78,481
GAAP Operating Margin (GAAP Operating income / Revenue) 6.1 % 7.0 % (2.6 )%
Non-GAAP Operating Margin (Non-GAAP Operating income / Revenue) 19.5 % 20.2 % 12.2 %
 
 

Table F: Pre-tax profit

    Q1'18     Q4'17     Q1'17
GAAP Pre-tax income (loss) $ 14,147 $ (36,797 ) $ (38,008 )
Impact of reconciling items on Operating income (see Table E) 77,825 79,205 78,481
Interest and other expense, net (see Table A, B, C)   11,350   64,521     8,280  
Non-GAAP Pre-tax income $ 103,322 $ 106,929   $ 48,753  
 
 

Table G: Net income (loss)

    Q1'18     Q4'17     Q1'17
GAAP Net income (loss) $ 9,078 $ (34,012 ) $ (42,999 )
Impact of reconciling items on Operating income (see Table E) 77,825 79,205 78,481
Interest and other expense, net (see Table A, B, C) 11,350 64,521 8,280
Income tax benefit (see Table A, B, C)   2,043   (5,027 )   2,125  
Non-GAAP Net income $ 100,296 $ 104,687   $ 45,887  
 
 

Table H: Pretax profit margin %

    Q1'18     Q4'17     Q1'17
GAAP     Non-GAAP GAAP     Non-GAAP GAAP     Non-GAAP
Revenue [i] $ 582,241 $ 582,241 $ 597,547 $ 597,547 $ 531,874 $ 531,874
Pre-tax profit (loss) (see Table F) [ii] $ 14,147 $ 103,322 $ (36,797 ) $ 106,929 $ (38,008 ) $ 48,753
Pre-tax profit margin % [ii / i] 2.4 % 17.7 % (6.2 )% 17.9 % (7.1 )% 9.2 %
 
 

Table I: Weighted-average shares, diluted

    Q1'18     Q4'17     Q1'17
GAAP     Non-GAAP GAAP     Non-GAAP GAAP     Non-GAAP
Weighted-average common shares outstanding, basic 355,461 355,461 343,011 343,011 326,964   326,964
Effect of dilutive securities:
Stock options, unvested restricted stock and other 7,897 12,515 14,003 14,852
Impact of convertible bond 7,234 4,750 12,110 17,304
Weighted-average common shares outstanding, diluted 370,592 372,726 343,011 369,124 326,964 359,120
 
 

Table J: Net income (loss) Per Share

    Q1'18     Q4'17     Q1'17
GAAP     Non-GAAP GAAP     Non-GAAP GAAP     Non-GAAP
Net income (loss) (see Table G) [i] $ 9,078 $ 100,296 $ (34,012 ) $ 104,687 $ (42,999 ) $ 45,887
Weighted-average common shares outstanding (see Table I) [ii]   370,592   372,726   343,011     369,124   326,964     359,120
Non-GAAP earnings per share - Diluted [i/ii] $ 0.02 $ 0.27 $ (0.10 ) $ 0.28 $ (0.13 ) $ 0.13
 
 

Table K: Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA")

    Q1'18     Q4'17     Q1'17
GAAP operating income (loss) (See Table E) 35,762 41,694 (13,573 )
Impact of reconciling items on Operating income (see Table E) 77,825 79,205 78,481  
Non-GAAP operating income 113,587 120,899 64,908
GAAP Depreciation 17,140 18,701 16,157  
Non-GAAP EBITDA 130,727 139,600 81,065  
 
 
CYPRESS SEMICONDUCTOR CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(In thousands)
(Unaudited)
 
    Three Months Ended
April 1, 2018     December 31, 2017     April 2, 2017

Selected Cash Flow Data (Preliminary):

Net cash provided by operating activities $ 31,678 $ 201,541 $ 25,721
Net cash (used in) provided by investing activities $ (14,173 ) $ (6,036 ) $ 21,650
Net cash used in financing activities $ (62,348 ) $ (175,472 ) $ (46,043 )

Other Supplemental Data (Preliminary):

Capital expenditures $ 17,267 $ 7,790 $ 13,772
Depreciation $ 17,140 $ 18,701 $ 16,157
Payment of dividend $ 38,741 $ 36,670 $ 35,537
Dividend paid per share $ 0.11 $ 0.11 $ 0.11
Total debt (principal amount) $ 1,017,588 $ 1,061,414 $ 1,286,401
Leverage ratio 2.00 2.91 $ 3.83
 
 
CYPRESS SEMICONDUCTOR CORPORATION

RECONCILIATION OF GAAP FORWARDING LOOKING ESTIMATES TO NON-GAAP FORWARD LOOKING ESTIMATES

 
           

Forward looking

Forward looking

Non-GAAP

GAAP estimate

estimate

(A)

Adjustments (B)

(C)=(A)+(B)

   

Share-based

       

Amortization of

compensation

Other

intangibles

expense

Restructuring

items

Gross Margin % 36.0% - 37.0% 8.0 % 0.8 % 0.20 % 0.4 % 45.5% - 46.5%
Diluted earnings per share $0.01 to $0.04 $ 0.15 $ 0.09 $ 0.01 $ 0.03 $0.27 to $0.31
 

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Contact:

Cypress Semiconductor Corporation
Thad Trent, 408-943-2925
EVP Finance & Administration and CFO
or
Ann Minooka, 408-456-1962
Vice President, Corporate Communications