Cypress Reports Fourth Quarter and Year End 2018 Results

*Tax impact of Non-GAAP adjustments is calculated by using the federal statutory rate of 21% and 35% for 2018 and 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								Twelve Months Ended
	Q4'18			Q3'18		Q4'17			Q4'18			Q4'17
GAAP net income (loss) attributable to Cypress	$	267,114		$	50,695	$	(34,014	)	$	354,592		$	(80,915	)
Impact of reconciling items on operating income (see Table G)		145,364			91,146		79,204			402,895			313,728
Impact of reconciling items on interest and other expense, net (see Table A, B, C, D, E)		56,302			8,045		64,521			82,367			91,327
Impact of reconciling items on income tax provision (see Table I)		(337,790	)		2,839		(5,027	)		(330,879	)		117
Non-GAAP net income	$	130,990		$	152,725	$	104,684		$	508,975		$	324,257

Table K: Weighted-average shares, diluted

Three Months Ended

Q4'18

Q3'18

Q4'17

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Non-GAAP

Weighted-average common shares outstanding, basic

361,616

361,631

343,011

Effect of dilutive securities:

Stock options, unvested restricted stock and other

6,482

11,709

7,096

12,468

—

14,003

Convertible notes

1,540

5,539

3,234

—

12,110

Weighted-average common shares outstanding, diluted

369,638

374,865

374,266

377,333

343,011

369,124

Table L: Weighted-average shares, diluted

Twelve Months Ended

Q4'18

Q4'17

GAAP

Non-GAAP

GAAP

Non-GAAP

Weighted-average common shares outstanding, basic

359,324

333,451

Effect of dilutive securities:

Stock options, unvested restricted stock and other

7,754

13,319

—

14,838

Convertible notes

5,100

2,705

—

16,851

Weighted-average common shares outstanding, diluted

372,178

375,348

333,451

365,140



Table M: Earnings (loss) per share	Three Months Ended
	Q4'18				Q3'18				Q4'17
	GAAP		Non-GAAP		GAAP		Non-GAAP		GAAP			Non-GAAP
Net income (loss) (see Table J) [i]	$	267,114	$	130,990	$	50,695	$	152,725	$	(34,014	)	$	104,684
Weighted-average common shares outstanding, diluted (see Table K) [ii]		369,638		374,865		374,266		377,333		343,011			369,124
Earnings per share - diluted [i/ii]	$	0.72	$	0.35	$	0.14	$	0.40	$	(0.10	)	$	0.28



Table N: Earnings (loss) per share	Twelve Months Ended
	Q4'18				Q4'17
	GAAP		Non-GAAP		GAAP			Non-GAAP
Net income (loss) (see Table J) [i]	$	354,592	$	508,975	$	(80,915	)	$	324,257
Weighted-average common shares outstanding, diluted (see Table L) [ii]		372,178		375,348		333,451			365,140
Earnings (loss) per share - diluted [i/ii]	$	0.95	$	1.36	$	(0.24	)	$	0.89



Table O: Adjusted EBITDA	Three Months Ended									Twelve Months Ended
	Q4'18			Q3'18			Q4'17			Q4'18			Q4'17
GAAP net income (loss) attributable to Cypress	$	267,114		$	50,695		$	(34,014	)	$	354,592		$	(80,915	)
Interest and other expense, net		(20,489	)		(15,059	)		(21,563	)		(67,845	)		(75,947	)
Income tax provision		331,447			(5,618	)		2,773			315,618			(11,157	)
Share in net loss of and impairment of equity method investees		(46,497	)		(3,657	)		(56,930	)		(57,370	)		(71,772	)
Net gain (loss) attributable to non-controlling interests		(87	)		(52	)		12			(239	)		(132	)
GAAP operating income	$	2,740		$	75,081		$	41,694		$	164,428		$	78,093
Impact of reconciling items on operating income (see Table G)		145,364			91,146			79,204			402,895			313,728
Non-GAAP operating income	$	148,104		$	166,227		$	120,898		$	567,323		$	391,821
Depreciation		16,527			16,393			18,701			66,299			67,578
Adjusted EBITDA	$	164,631		$	182,620		$	139,599		$	633,622		$	459,399



Table P: Free cash flow	Three Months Ended									Twelve Months Ended
	Q4'18			Q3'18			Q4'17			Q4'18			Q4'17
GAAP net cash provided by operating activities	$	142,215		$	187,073		$	201,541		$	471,700		$	403,487
Acquisition of property, plant and equipment, net		(5,069	)		(15,448	)		(7,790	)		(63,130	)		(51,944	)
Free cash flow	$	137,146		$	171,625		$	193,751		$	408,570		$	351,543



CYPRESS SEMICONDUCTOR CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(In thousands except financial ratios and per share amounts)
(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 30,			September 30,			December 31,			December 30,			December 31,
		2018			2018			2017			2018			2017
Selected Cash Flow Data (Preliminary):
Net cash provided by operating activities	$	142,215		$	187,073		$	201,541		$	471,700		$	403,487
Net cash (used in) provided by investing activities	$	(5,988	)	$	(22,316	)	$	(6,036	)	$	(49,690	)	$	(14,429	)
Net cash (used in) provided by financing activities	$	(55,252	)	$	(72,730	)	$	(175,472	)	$	(287,886	)	$	(357,634	)
Other Supplemental Data (Preliminary):
Capital expenditures, net	$	5,069		$	15,448		$	7,790		$	63,130		$	51,944
Depreciation	$	16,527		$	16,393		$	18,701		$	66,299		$	67,578
Payment of dividend	$	39,772		$	39,447		$	36,670		$	157,364		$	144,749
Dividend paid per share	$	0.11		$	0.11		$	0.11		$	0.44		$	0.44
Total debt (principal amount)	$	935,838		$	936,518		$	1,061,414		$	935,838		$	1,061,414
Net leverage ratio¹		1.03			1.20			1.98			1.03			1.98
Cash Income Tax	$	6,343		$	2,779		$	2,254		$	15,261		$	11,040

Total debt (principal amount) less cash / Last 12 months Adjusted EBITDA

CYPRESS SEMICONDUCTOR CORPORATION

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

Q1'19 Non-

Q1'19 GAAP

GAAP estimate

estimate ¹(A)

Adjustments (B)

(C)=(A)+(B)

Stock-based

Amortization of

compensation

intangibles

expense

Other items

Gross Margin

36.0% - 37.0%

8.5% - 9.0%

0.7%

0.3%

46.0% - 46.5%

Diluted earnings per share

$0.00 to $0.04

0.14

0.05

0.03

$0.22 to $0.26

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 expected to occur in the second quarter of 2019.

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 Next Page »