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CYPRESS SEMICONDUCTOR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
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September 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Cash, cash equivalents and short-term investments | $ | 204,771 | $ | 151,596 | |||
Accounts receivable, net | 404,561 | 295,991 | |||||
Inventories | 289,436 | 272,127 | |||||
Property, plant and equipment, net | 292,854 | 289,554 | |||||
Goodwill and other intangible assets, net | 1,994,200 | 2,154,592 | |||||
Other assets | 372,102 | 373,190 | |||||
Total assets | $ | 3,557,924 | $ | 3,537,050 | |||
LIABILITIES AND EQUITY | |||||||
Accounts payable | $ | 228,159 | $ | 213,101 | |||
Income tax liabilities | 57,283 | 52,006 | |||||
Revenue reserves, deferred margin and other liabilities | 515,420 | 497,838 | |||||
Revolving credit facility and long-term debt | 870,574 | 956,513 | |||||
Total liabilities | 1,671,436 | 1,719,458 | |||||
Total Cypress stockholders' equity | 1,885,280 | 1,816,536 | |||||
Non-controlling interest | 1,208 | 1,056 | |||||
Total equity | 1,886,488 | 1,817,592 | |||||
Total liabilities and equity | $ | 3,557,924 | $ | 3,537,050 | |||
CYPRESS SEMICONDUCTOR CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ON A GAAP BASIS (In thousands, except per-share data) (Unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30
|
July 1, 2018 |
October 1,
|
September 30,
|
October 1,
|
||||||||||||||||
Revenues | $ | 673,035 | $ | 624,090 | $ | 604,574 | $ | 1,879,366 | $ | 1,730,224 | ||||||||||
Cost of revenue 1 | 413,320 | 389,952 | 394,878 | 1,173,121 | 1,170,675 | |||||||||||||||
Gross profit | 259,715 | 234,138 | 209,696 | 706,245 | 559,549 | |||||||||||||||
Research and development 1 | 91,691 | 96,693 | 90,422 | 281,617 | 268,365 | |||||||||||||||
Selling, general and administrative 1 | 92,943 | 86,599 | 78,194 | 262,940 | 254,785 | |||||||||||||||
Total operating expenses | 184,634 | 183,292 | 168,616 | 544,557 | 523,150 | |||||||||||||||
Operating income | 75,081 | 50,846 | 41,080 | 161,688 | 36,399 | |||||||||||||||
Interest and other expense, net | (15,059 | ) | (14,143 | ) | (18,619 | ) | (47,356 | ) | (54,385 | ) | ||||||||||
Income (loss) before income taxes and non-controlling interest | 60,022 | 36,703 | 22,461 | 114,332 | (17,986 | ) | ||||||||||||||
Income tax provision | (5,618 | ) | (5,154 | ) | (4,500 | ) | (15,829 | ) | (13,930 | ) | ||||||||||
Equity in net loss of equity method investees | (3,657 | ) | (3,755 | ) | (4,931 | ) | (10,873 | ) | (14,842 | ) | ||||||||||
Net income (loss) | 50,747 | 27,794 | 13,030 | 87,630 | (46,758 | ) | ||||||||||||||
Net gain attributable to non-controlling interests | (52 | ) | (88 | ) | (14 | ) | (152 | ) | (144 | ) | ||||||||||
Net income (loss) attributable to Cypress | $ | 50,695 | $ | 27,706 | $ | 13,016 | $ | 87,478 | $ | (46,902 | ) | |||||||||
Net income (loss) per share attributable to Cypress: | ||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.08 | $ | 0.04 | $ | 0.24 | $ | (0.14 | ) | |||||||||
Diluted | $ | 0.14 | $ | 0.07 | $ | 0.04 | $ | 0.23 | $ | (0.14 | ) | |||||||||
Cash dividend declared per share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.33 | ||||||||||
Shares used in net income (loss) per share calculation: | ||||||||||||||||||||
Basic | 361,631 | 358,577 | 332,873 | 358,560 | 329,787 | |||||||||||||||
Diluted | 374,266 | 371,967 | 360,311 | 373,064 | 329,787 |
1. | In 2018, certain expenses have been reclassified as part of cost of revenue and operating expenses. Historical results have been conformed with the 2018 presentation. | |
CYPRESS SEMICONDUCTOR CORPORATION RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (In thousands, except per-share data) (Unaudited) |
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Table A: GAAP to non-GAAP reconciling items: Three Months Ended Q3 2018 | ||||||||||||||||
Cost of revenues |
Research and
|
Selling, general and
|
Interest and other
|
|||||||||||||
GAAP [i] | $ | 413,320 | $ | 91,691 | $ | 92,943 | $ | (18,716 | ) | |||||||
[1] Stock-based compensation | 5,120 | 8,206 | 10,869 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 136 | 667 | 768 | (1,108 | ) | |||||||||||
[3] Equity in net loss of equity method investees | — | — | — | 3,657 | ||||||||||||
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 6,782 | ||||||||||||
[5] Amortization of acquisition-related intangible assets and other | 51,565 | — | 4,310 | — | ||||||||||||
[6] Acquisition costs | — | — | 119 | — | ||||||||||||
[7] Restructuring charges | (340 | ) | 516 | 9,815 | — | |||||||||||
[8] Litigation settlement and other | — | — | (605 | ) | (1,286 | ) | ||||||||||
Non - GAAP [ii] | $ | 356,839 | $ | 82,302 | $ | 67,667 | $ | (10,671 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (56,481 | ) | $ | (9,389 | ) | $ | (25,276 | ) | $ | 8,045 | |||||
Table B: GAAP to non-GAAP reconciling items: Three Months Ended Q2 2018 | ||||||||||||||||
Cost of revenues |
Research and
|
Selling, general and
|
Interest and other
|
|||||||||||||
GAAP [i] | $ | 389,952 | $ | 96,693 | $ | 86,599 | $ | (17,898 | ) | |||||||
[1] Stock-based compensation | 3,986 | 13,800 | 16,121 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 102 | 467 | 572 | (1,123 | ) | |||||||||||
[3] Equity in net loss of equity method investees | — | — | — | 3,755 | ||||||||||||
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 4,415 | ||||||||||||
[5] Amortization of acquisition-related intangible assets and other | 49,438 | — | 4,355 | — | ||||||||||||
[6] Gain on sale of cost method investment | — | — | (1,521 | ) | — | |||||||||||
[7] Restructuring charges and other | 1,589 | 33 | (383 | ) | (377 | ) | ||||||||||
Non - GAAP [ii] | $ | 334,837 | $ | 82,393 | $ | 67,455 | $ | (11,228 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (55,115 | ) | $ | (14,300 | ) | $ | (19,144 | ) | $ | 6,670 | |||||
Table C: GAAP to Non-GAAP reconciling items: Three Months Ended Q3 2017 | ||||||||||||||||
Cost of revenues |
Research and
|
Selling, general and
|
Interest and other
|
|||||||||||||
GAAP [i] | $ | 394,878 | $ | 90,422 | $ | 78,194 | $ | (23,550 | ) | |||||||
[1] Stock-based compensation | 4,720 | 8,692 | 7,600 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 208 | 1,278 | 1,415 | (1,734 | ) | |||||||||||
[3] Merger, integration, related costs and adjustments related to assets held for sale | 1,336 | — | (636 | ) | — | |||||||||||
[4] Inventory step-up related to acquisition accounting | 704 | — | — | — | ||||||||||||
[5] Equity in net loss and impairment of equity method investees | — | — | — | 4,931 | ||||||||||||
[6] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 3,521 | ||||||||||||
[7] Write-off of unamortized debt issuance costs related to Term Loan A | — | — | — | 2,996 | ||||||||||||
[8] Amortization of debt issuance costs | — | — | — | 856 | ||||||||||||
[9] Amortization of acquisition-related intangible assets and other | 43,345 | — | 5,083 | 51 | ||||||||||||
Non - GAAP [ii] | $ | 344,565 | $ | 80,452 | $ | 64,732 | $ | (12,929 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (50,313 | ) | $ | (9,970 | ) | $ | (13,462 | ) | $ | 10,621 | |||||
Table D: GAAP to non-GAAP reconciling items: Nine Months Ended Q3 2018 | ||||||||||||||||
Cost of revenues |
Research and
|
SG&A and
|
Interest and other
|
|||||||||||||
GAAP [i] | $ | 1,173,121 | $ | 281,617 | $ | 262,940 | $ | (58,229 | ) | |||||||
[1] Stock-based compensation | 12,689 | 28,720 | 35,152 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 299 | 1,406 | 1,690 | (2,497 | ) | |||||||||||
[3] Equity in net loss and impairment of equity method investees | — | — | — | 10,873 | ||||||||||||
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 14,628 | ||||||||||||
[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 | 150,441 | — | 13,815 | — | ||||||||||||
[8] Gain on sale of cost method investment | — | — | (1,521 | ) | — | |||||||||||
[9] Acquisition costs | — | — | 119 | — | ||||||||||||
[10] Restructuring charges | 3,136 | 841 | 11,347 | — | ||||||||||||
[11] Litigation settlement and other | — | — | (605 | ) | (1,270 | ) | ||||||||||
Non - GAAP [ii] | $ | 1,006,556 | $ | 250,650 | $ | 202,943 | $ | (32,164 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (166,565 | ) | $ | (30,967 | ) | $ | (59,997 | ) | $ | 26,065 | |||||
Table E: GAAP to non-GAAP reconciling items: Nine Months Ended Q3 2017 | ||||||||||||||||
Cost of revenues |
Research and
|
Selling, general and
|
Interest and other
|
|||||||||||||
GAAP [i] | $ | 1,170,675 | $ | 268,365 | $ | 254,785 | $ | (69,227 | ) | |||||||
[1] Stock-based compensation | 12,605 | 28,754 | 27,157 | — | ||||||||||||
[2] Changes in value of deferred compensation plan | 512 | 2,438 | 3,319 | (4,876 | ) | |||||||||||
[3] Merger, integration, related costs and adjustments related to assets held for sale | 4,022 | (96 | ) | (922 | ) | — | ||||||||||
[4] Inventory step-up related to acquisition accounting | 3,735 | — | — | — | ||||||||||||
[5] Equity in net loss and impairment of equity method investees | — | — | — | 14,842 | ||||||||||||
[6] Imputed interest on convertible debt, equity component amortization on convertible debt and others | — | — | — | 10,517 | ||||||||||||
[7] Write-off of unamortized debt issuance costs related to Term Loan A | — | — | — | 2,996 | ||||||||||||
[8] Amortization of debt issuance costs | — | — | — | 2,634 | ||||||||||||
[9] Amortization of acquisition-related intangible assets | 130,782 | — | 15,250 | — | ||||||||||||
[10] Restructuring charges | 231 | 2,710 | 528 | — | ||||||||||||
[11] Settlement charges and other | — | — | 3,500 | 693 | ||||||||||||
Non - GAAP [ii] | $ | 1,018,788 | $ | 234,559 | $ | 205,953 | $ | (42,421 | ) | |||||||
Impact of reconciling items [ii - i] | $ | (151,887 | ) | $ | (33,806 | ) | $ | (48,832 | ) | $ | 26,806 | |||||
Table F: Non-GAAP gross profit | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | Q3'18 | Q3'17 | ||||||||||||||||
GAAP gross profit | $ | 259,715 | $ | 234,138 | $ | 209,696 | $ | 706,245 | $ | 559,549 | ||||||||||
Impact of reconciling items on cost of revenues (Table A, B, C, D and E) | 56,481 | 55,115 | 50,313 | 166,565 | 151,887 | |||||||||||||||
Non-GAAP gross profit | $ | 316,196 | $ | 289,253 | $ | 260,009 | $ | 872,810 | $ | 711,436 | ||||||||||
GAAP gross margin (GAAP gross profit/revenue) | 38.6 | % | 37.5 | % | 34.7 | % | 37.6 | % | 32.3 | % | ||||||||||
Non-GAAP gross margin (Non-GAAP gross profit/revenue) | 47.0 | % | 46.3 | % | 43.0 | % | 46.4 | % | 41.1 | % | ||||||||||
Table G: Non-GAAP operating income | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | Q3'18 | Q3'17 | ||||||||||||||||
GAAP operating income [i] | $ | 75,081 | $ | 50,846 | $ | 41,080 | $ | 161,688 | $ | 36,399 | ||||||||||
Impact of reconciling items on cost of revenues (see Table A, B, C, D, E) | 56,481 | 55,115 | 50,313 | 166,565 | 151,887 | |||||||||||||||
Impact of reconciling items on R&D (see Table A, B, C, D, E) | 9,389 | 14,300 | 9,970 | 30,967 | 33,806 | |||||||||||||||
Impact of reconciling items on SG&A (see Table A, B, C, D, E) | 25,276 | 19,144 | 13,462 | 59,997 | 48,832 | |||||||||||||||
Non-GAAP operating income [ii] | $ | 166,227 | $ | 139,405 | $ | 114,825 | $ | 419,217 | $ | 270,924 | ||||||||||
Impact of reconciling items on operating income [ii - i] | $ | 91,146 | $ | 88,559 | $ | 73,745 | $ | 257,529 | $ | 234,525 | ||||||||||
GAAP operating margin (GAAP operating income / revenue) | 11.2 | % | 8.1 | % | 6.8 | % | 8.6 | % | 2.1 | % | ||||||||||
Non-GAAP operating margin (Non-GAAP operating income / revenue) | 24.7 | % | 22.3 | % | 19.0 | % | 22.3 | % | 15.7 | % | ||||||||||
Table H: Non-GAAP pre-tax profit | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | Q3'18 | Q3'17 | ||||||||||||||||
GAAP income (loss) before income taxes and non-controlling interest ("Pre-tax income") | $ | 60,022 | $ | 36,703 | $ | 22,461 | $ | 114,332 | $ | (17,986 | ) | |||||||||
Equity in net loss and impairment of equity method investees | (3,657 | ) | (3,755 | ) | (4,931 | ) | (10,873 | ) | (14,842 | ) | ||||||||||
Impact of reconciling items on operating income (see Table G) | 91,146 | 88,559 | 73,745 | 257,529 | 234,525 | |||||||||||||||
Impact of reconciling items on interest and other expense, net (see Table A, B, C, D, E) | 8,045 | 6,670 | 10,621 | 26,065 | 26,806 | |||||||||||||||
Non-GAAP pre-tax profit | $ | 155,556 | $ | 128,177 | $ | 101,896 | $ | 387,053 | $ | 228,503 | ||||||||||
GAAP pre-tax profit margin (GAAP pre-tax income/revenue) | 8.9 | % | 5.9 | % | 3.7 | % | 6.1 | % | (1.0 | )% | ||||||||||
Non-GAAP pre-tax profit margin (Non-GAAP pre-tax profit/revenue) | 23.1 | % | 20.5 | % | 16.9 | % | 20.6 | % | 13.2 | % | ||||||||||
Table I: Non-GAAP income tax expense | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | Q3'18 | Q3'17 | ||||||||||||||||
GAAP income tax provision [i] | 5,618 | 5,154 | 4,500 | 15,829 | 13,930 | |||||||||||||||
[1] Stock-based compensation | 5,081 | 7,120 | 7,354 | 16,078 | 23,981 | |||||||||||||||
[2] Changes in value of deferred compensation plan | 97 | 4 | 408 | 189 | 488 | |||||||||||||||
[3] Merger, integration, related costs and adjustments related to assets held for sale | — | — | 245 | — | 1,051 | |||||||||||||||
[4] Inventory step-up related to acquisition accounting | — | — | 246 | — | 1,314 | |||||||||||||||
[5] Equity in net loss and impairment of equity method investees | 768 | 789 | 1,726 | 2,283 | 5,195 | |||||||||||||||
[6] Imputed interest on convertible debt, equity component amortization on convertible debt and others | 1,424 | 927 | 1,232 | 3,072 | 3,681 | |||||||||||||||
[7] Amortization of debt issuance costs | — | — | 300 | 225 | 922 | |||||||||||||||
[8] Amortization of acquisition-related intangible assets and other | 11,734 | 11,297 | 16,950 | 34,494 | 51,111 | |||||||||||||||
[9] Restructuring charges | 2,098 | 260 | — | 3,218 | 1,214 | |||||||||||||||
[10] Settlement charges | — | — | — | — | 1,225 | |||||||||||||||
[11] Loss on extinguishment of Spansion convertible notes | — | — | 1,049 | 684 | 1,049 | |||||||||||||||
[12] Gain on sale of cost method investment | — | (319 | ) | — | (319 | ) | — | |||||||||||||
[13] Uncertain tax positions | (2,159 | ) | (1,348 | ) | (663 | ) | (4,870 | ) | (2,458 | ) | ||||||||||
[14] Utilization of NOL including excess tax benefits, and others** | (21,882 | ) | (20,759 | ) | (30,445 | ) | (61,966 | ) | (93,917 | ) | ||||||||||
Non-GAAP income tax expense [ii]* | $ | 2,779 | $ | 3,125 | $ | 2,902 | $ | 8,917 | $ | 8,786 | ||||||||||
Impact of reconciling items on income tax provision [i - ii] | 2,839 | 2,029 | 1,598 | 6,912 | 5,144 |
* | Tax impact of Non-GAAP adjustments is calculated by using the federal statutory rate of 21%, 21%, and 35% for the periods ended July 1, 2018, September 30, 2018, and October 1, 2017 respectively. | |
** | Other items include but are not limited to deferred tax expense not affecting income tax payable. | |
Table J: Non-GAAP net income | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | Q3'18 | Q3'17 | ||||||||||||||||
GAAP net income (loss) attributable to Cypress | $ | 50,695 | $ | 27,706 | $ | 13,016 | $ | 87,478 | $ | (46,902 | ) | |||||||||
Impact of reconciling items on operating income (see Table G) | 91,146 | 88,559 | 73,745 | 257,529 | 234,525 | |||||||||||||||
Impact of reconciling items on interest and other expense, net (see Table A, B, C, D, E) | 8,045 | 6,670 | 10,621 | 26,065 | 26,806 | |||||||||||||||
Impact of reconciling items on income tax provision (see Table I) | 2,839 | 2,029 | 1,598 | 6,912 | 5,144 | |||||||||||||||
Non-GAAP net income | $ | 152,725 | $ | 124,964 | $ | 98,980 | $ | 377,984 | $ | 219,573 | ||||||||||
Table K: Weighted-average shares, diluted | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | |||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||
Weighted-average common shares outstanding, basic | 361,631 | 361,631 | 358,577 | 358,577 | 332,873 | 332,873 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options, unvested restricted stock and other | 7,096 | 12,468 | 7,837 | 14,391 | 7,884 | 12,948 | |||||||||||
Convertible notes | 5,539 | 3,234 | 5,553 | 3,070 | 19,554 | 18,790 | |||||||||||
Weighted-average common shares outstanding, diluted | 374,266 | 377,333 | 371,967 | 376,038 | 360,311 | 364,611 | |||||||||||
Table L: Weighted-average shares, diluted | |||||||||||
Nine Months Ended | |||||||||||
Q3'18 | Q3'17 | ||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||
Weighted-average common shares outstanding, basic | 358,560 | 358,560 | 329,787 | 329,787 | |||||||
Effect of dilutive securities: | |||||||||||
Stock options, unvested restricted stock and other | 8,378 | 13,557 | — | 13,060 | |||||||
Convertible notes | 6,126 | 3,852 | — | 18,370 | |||||||
Weighted-average common shares outstanding, diluted | 373,064 | 375,969 | 329,787 | 361,217 | |||||||
Table M: Earnings per share | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | |||||||||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||||||
Net income (see Table J) [i] | $ | 50,695 | $ | 152,725 | $ | 27,706 | $ | 124,964 | $ | 13,016 | $ | 98,980 | |||||||||||
Weighted-average common shares outstanding, diluted (see Table K) [ii] | 374,266 | 377,333 | 371,967 | 376,038 | 360,311 | 364,611 | |||||||||||||||||
Earnings per share - diluted [i/ii] | $ | 0.14 | $ | 0.40 | $ | 0.07 | $ | 0.33 | $ | 0.04 | $ | 0.27 | |||||||||||
Table N: Earnings (loss) per share | |||||||||||||||
Nine Months Ended | |||||||||||||||
Q3'18 | Q3'17 | ||||||||||||||
GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||
Net income (loss) (see Table J) [i] | $ | 87,478 | $ | 377,984 | $ | (46,902 | ) | $ | 219,573 | ||||||
Weighted-average common shares outstanding, diluted (see Table L) [ii] | 373,064 | 375,969 | 329,787 | 361,217 | |||||||||||
Earnings (loss) per share - diluted [i/ii] | $ | 0.23 | $ | 1.01 | $ | (0.14 | ) | $ | 0.61 | ||||||
Table O: Adjusted EBITDA | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | Q3'18 | Q3'17 | ||||||||||||||||
GAAP net income (loss) attributable to Cypress | $ | 50,695 | $ | 27,706 | $ | 13,016 | $ | 87,478 | $ | (46,902 | ) | |||||||||
Interest and other expense, net | (15,059 | ) | (14,143 | ) | (18,619 | ) | (47,356 | ) | (54,385 | ) | ||||||||||
Income tax provision | (5,618 | ) | (5,154 | ) | (4,500 | ) | (15,829 | ) | (13,930 | ) | ||||||||||
Equity in net loss of and impairment of equity method investees | (3,657 | ) | (3,755 | ) | (4,931 | ) | (10,873 | ) | (14,842 | ) | ||||||||||
Net gain (loss) attributable to non-controlling interests | (52 | ) | (88 | ) | (14 | ) | (152 | ) | (144 | ) | ||||||||||
GAAP operating income | $ | 75,081 | $ | 50,846 | $ | 41,080 | $ | 161,688 | $ | 36,399 | ||||||||||
Impact of reconciling items on operating income (see Table G) | 91,146 | 88,559 | 73,745 | 257,529 | 234,525 | |||||||||||||||
Non-GAAP operating income | $ | 166,227 | $ | 139,405 | $ | 114,825 | $ | 419,217 | $ | 270,924 | ||||||||||
Depreciation | 16,393 | 16,239 | 16,674 | 49,772 | 48,876 | |||||||||||||||
Adjusted EBITDA | $ | 182,620 | $ | 155,644 | $ | 131,499 | $ | 468,989 | $ | 319,800 | ||||||||||
Table P: Free cash flow | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Q3'18 | Q2'18 | Q3'17 | Q3'18 | Q3'17 | ||||||||||||||||
GAAP net cash provided by operating activities | $ | 187,073 | $ | 110,734 | $ | 143,778 | $ | 329,485 | $ | 201,946 | ||||||||||
Acquisition of property, plant and equipment, net | (15,448 | ) | (25,590 | ) | (15,975 | ) | (58,061 | ) | (44,154 | ) | ||||||||||
Free cash flow | $ | 171,625 | $ | 85,144 | $ | 127,803 | $ | 271,424 | $ | 157,792 | ||||||||||
CYPRESS SEMICONDUCTOR CORPORATION SUPPLEMENTAL FINANCIAL DATA (In thousands) (Unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30,
|
July 1,
|
October 1,
|
September 30,
|
October 1,
|
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Selected Cash Flow Data (Preliminary): | ||||||||||||||||||||
Net cash provided by operating activities | $ | 187,073 | $ | 110,734 | $ | 143,778 | $ | 329,485 | $ | 201,946 | ||||||||||
Net cash (used in) provided by investing activities | $ | (22,316 | ) | $ | (7,213 | ) | $ | (15,051 | ) | $ | (43,700 | ) | $ | (8,393 | ) | |||||
Net cash used in financing activities | $ | (72,730 | ) | $ | (97,556 | ) | $ | (105,935 | ) | $ | (232,634 | ) | $ | (182,162 | ) | |||||
Other Supplemental Data (Preliminary): | ||||||||||||||||||||
Capital expenditures, net | $ | 15,448 | $ | 25,590 | $ | 15,975 | $ | 58,061 | $ | 44,154 | ||||||||||
Depreciation | $ | 16,393 | $ | 16,239 | $ | 16,674 | $ | 49,772 | $ | 48,876 | ||||||||||
Payment of dividend | $ | 39,447 | $ | 39,404 | $ | 36,325 | $ | 117,592 | $ | 108,079 | ||||||||||
Dividend paid per share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.33 | ||||||||||
Total debt (principal amount) | $ | 936,518 | $ | 955,553 | $ | 1,205,790 | $ | 936,518 | $ | 1,205,790 | ||||||||||
Leverage ratio | 1.54 | 1.71 | 2.91 | 1.54 | 2.91 | |||||||||||||||
Cash Income Tax | 2,779 | 3,125 | 2,902 | 8,917 | 8,786 | |||||||||||||||
CYPRESS SEMICONDUCTOR CORPORATION RECONCILIATION OF GAAP FORWARDING-LOOKING ESTIMATES TO NON-GAAP FORWARD- LOOKING ESTIMATES |
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Forward-looking GAAP
|
Adjustments (B) |
Forward-looking Non-GAAP
|
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Amortization of
|
Stock-based
|
Other items | ||||||||||||||
Gross margin | 38.0% - 39.0% | 8.4 | % | 0.4 | % | 0.2 | % | 47.0% - 48.0% | ||||||||
Diluted earnings per share | $0.07 to $0.11 | $ | 0.15 | $ | 0.06 | $ | 0.03 | $0.31 to $0.35 |
1. | GAAP outlook does not include any impact from the planned disposition of our NAND business to the joint venture with SK hynix system ic Inc., which is not expected to be completed until the first quarter of 2019. | |