• Record revenue of $604.6 million; IoT wireless connectivity grew 80% year over year
• GAAP and non-GAAP margin were 41.8% and 43.0%, respectively
• GAAP and non-GAAP diluted EPS increased 143% and 29% sequentially, respectively
• Cash from operations of $143.8 million increased 37% year over year

SAN JOSE, Calif. — (BUSINESS WIRE) — October 26, 2017 — Cypress Semiconductor Corporation (NASDAQ: CY) today announced its third quarter 2017 results.

“We continue to strengthen our position as the Internet of Things (IoT) leader with our state-of-the-art IoT connectivity solutions, flexible microcontrollers and high-performance memories,” said Hassane El-Khoury, Cypress president and chief executive officer. “Our IoT solutions are adding intelligence and connectivity to customer products across our targeted automotive, industrial and consumer end-markets.

“After a strong second quarter, we continued to deliver record revenue with strength across our key markets,” El-Khoury continued. “These results demonstrate we are delivering on our Cypress 3.0 strategy of selling embedded solutions into markets growing faster than the overall semiconductor industry. Our customers are relying on us for more bill-of-material coverage, with approximately 80% of our revenue generated by customers buying more than one product family across connectivity, microcontrollers and memory.”

Revenue and earnings for the quarter are shown below, compared with those of the prior quarter:

(In thousands, except per-share data)

		GAAP								NON-GAAP1
		Q3 2017				Q2 2017				Q3 2017				Q2 2017
Revenue		$	604,574			$	593,776			$	604,574			$	593,776
Margin		41.8		%		39.8		%			43.0		%		40.9		%
Pretax profit margin		2.6		%		(3.1		)%			16.9		%		13.1		%
Net income (loss)		$	11,033			$	(22,904	)		$	98,980			$	74,703
Diluted EPS (loss)		$	0.03			$	(0.07	)		$	0.27			$	0.21

1.		See “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables (“Non-GAAP Results” tables) included below.

BUSINESS REVIEW