Cypress Reports Third-Quarter 2013 Results

FORWARD-LOOKING STATEMENTS

Statements herein that are not historical facts and that refer to Cypress or its subsidiaries’ plans and expectations for the remainder of fiscal year 2013 and beyond are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. We may use words such as “believe,” “expect,” “future,” “plan,” “intend” and similar expressions to identify such forward-looking statements that include, but are not limited to, statements related to the markets we serve, including expected volatility in the mobile handset market; the strength and growth of our proprietary and programmable products; our expectations regarding our fourth quarter 2013 and first quarter 2014 revenue levels, earnings leverage, margins, profit and cash flow; the effectiveness of our cost-saving measures; our expectations regarding the demand for our products and how we expect our products to perform, the strength of our design win pipeline, expected market share gains and the expected tax treatment of our dividends. Such statements reflect our current expectations, which are based on information and data available to our management as of the date of this release. Our actual results may differ materially due to a variety of uncertainties and risk factors, including, but not limited to, the state of and future of the global economy, business conditions and growth trends in the semiconductor market, whether our products perform as expected, whether the demand for our proprietary and programmable products is fully realized, whether our product and design wins and kit sales result in increased sales, our ability to manage our business to have strong earnings, reduce operating expenses, factory utilization, the strength or softness of the markets we serve, our ability to maintain and improve our gross margins and realize our bookings, the seasonality of the markets we serve, the financial performance of our subsidiaries and Emerging Technology Division, and other risks described in our filings with the Securities and Exchange Commission. We assume no responsibility to update any such forward-looking statements.

Cypress, the Cypress logo, TrueTouch, PSoC, CapSense, EZ-USB, and AGIGARAM are registered trademarks, and PSoC Creator, CapSense Express, EZ-Click, CX3, FX3S, FX3 and PRoC are trademarks of Cypress Semiconductor Corp. All other trademarks or registered trademarks are the property of their respective owners.

 
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
     
September 29,   December 30,
2013   2012
 
ASSETS
 
Cash, cash equivalents and short-term investments $ 101,389 $ 117,210
Accounts receivable, net 108,200 82,920
Inventories, net (a) 101,031 127,596
Property, plant and equipment, net 259,897 274,427
Goodwill and other intangible assets, net 108,548 113,410
Other assets   116,926     116,066  
Total assets $ 795,991   $ 831,629  
 
LIABILITIES AND EQUITY
 
Accounts payable $ 52,809 $ 58,704
Deferred margin on sales to distributors 137,959 131,192
Income tax liabilities 29,013 47,454
Other liabilities 171,668 185,418
Long-term revolving credit facility   227,000     232,000  
Total liabilities   618,449     654,768  
Total Cypress stockholders' equity 181,679 180,900
Noncontrolling interest   (4,137 )   (4,039 )
Total equity   177,542     176,861  
Total liabilities and equity $ 795,991   $ 831,629  
 

(a) Net inventories include $4.4 million and $2.8 million of capitalized inventories related to stock compensation expense, as of September 29, 2013 and December 30, 2012, respectively.

 
     
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
ON A GAAP BASIS
(In thousands, except per-share data)
(Unaudited)
         
Three Months Ended
September 29, June 30, September 30,
2013 2013 2012
 
Revenues $ 188,723 $ 193,466 $ 203,015
Cost of revenues   97,070     102,041     92,959  
Gross margin 91,653 91,425 110,056
Operating expenses:
Research and development 50,429 48,804 46,908
Selling, general and administrative 45,533 48,073 47,328
Amortization of acquisition-related intangibles 1,987 1,987 707
Restructuring charges   3,693     693     66  
Total operating expenses, net   101,642     99,557     95,009  
Operating income (loss) (9,989 ) (8,132 ) 15,047
Interest and other income, net   428     2,119     (1,330 )
Income (loss) before income taxes (9,561 ) (6,013 ) 13,717
Income tax provision (benefit)   (774 )   (9,343 )   (241 )
Income (loss), net of taxes (8,787 ) 3,330 13,958
Adjust for net loss attributable to noncontrolling interest   429     436     374  
Net Income (loss) attributable to Cypress $ (8,358 ) $ 3,766   $ 14,322  
 
Net Income (loss) per share attributable to Cypress:
Basic $ (0.06 ) $ 0.03 $ 0.10
Diluted $ (0.06 ) $ 0.02 $ 0.09
Shares used in net income (loss) per share calculation:
Basic 149,679 147,287 147,673
Diluted   149,679       156,262       160,300  
 
     
CYPRESS SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (a)
(In thousands, except per-share data)
(Unaudited)
         
Three Months Ended
September 29, June 30, September 30,
2013 2013 2012
 
GAAP gross margin $ 91,653 $ 91,425 $ 110,056
Stock-based compensation expense 2,804 3,279 4,526
Acquisition-related expense 6,849 1,321 -
Changes in value of deferred compensation plan 265 31 217
Impairment of assets and other   (64 )   6,681     1,129  
Non-GAAP gross margin $ 101,507   $ 102,737   $ 115,928  
 
GAAP research and development expenses $ 50,429 $ 48,804 $ 46,908
Stock-based compensation expense (6,806 ) (6,913 ) (5,062 )
Acquisition-related expense (19 ) (26 ) -
Changes in value of deferred compensation plan (548 ) (99 ) (389 )
Impairment of assets and other   (1,078 )   -     -  
Non-GAAP research and development expenses $ 41,978   $ 41,766   $ 41,457  
 
GAAP selling, general and administrative expenses $ 45,533 $ 48,073 $ 47,328
Stock-based compensation expense (9,701 ) (10,203 ) (6,513 )
Acquisition-related expense (366 ) (98 ) (547 )
Changes in value of deferred compensation plan (1,181 ) (145 ) (945 )
Impairment of assets and other   131     (160 )   -  
Non-GAAP selling, general and administrative expenses $ 34,416   $ 37,467   $ 39,323  
 
GAAP operating income (loss) $ (9,989 ) $ (8,132 ) $ 15,047
Stock-based compensation expense 19,311 20,395 16,101
Acquisition-related expense 9,221 3,432 1,254
Changes in value of deferred compensation plan 1,994 275 1,551
Impairment of assets and other 883 6,841 1,129
Restructuring charges   3,693     693     66  
Non-GAAP operating income $ 25,113   $ 23,504   $ 35,148  
 
GAAP net income (loss) attributable to Cypress $ (8,358 ) $ 3,766 $ 14,332
Stock-based compensation expense 19,311 20,395 16,101
Acquisition-related expense 9,221 3,432 1,254
Changes in value of deferred compensation plan (97 ) (21 ) 48
Impairment of assets and other 883 5,763 1,129
Restructuring charges 3,693 693 66
Tax and tax-related items (2,638 ) (12,393 ) (2,246 )
Investment-related gains/losses   -     -     1,638  
Non-GAAP net income attributable to Cypress $ 22,015   $ 21,635   $ 32,322  
     
GAAP net income (loss) per share attributable to Cypress - diluted $ (0.06 ) $ 0.02 $ 0.09
Stock-based compensation expense 0.12 0.13 0.10
Acquisition-related expense 0.02 0.02 0.01
Impairment of assets and other 0.05 0.04 0.01
Restructuring charges 0.02 0.01 -
Tax and tax-related items (0.02 ) (0.08 ) (0.02 )
Investment-related gains/losses - - 0.01
Non-GAAP share count adjustment   0.01     -     -  
Non-GAAP net income per share attributable to Cypress - diluted $ 0.14     $ 0.14     $ 0.20  
 
 

(a) Refer to the accompanying "Notes to Non-GAAP Financial Measures" for a detailed discussion of management's use of non-GAAP financial measures.

 
             
CYPRESS SEMICONDUCTOR CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(In thousands)
(Unaudited)
               
Three Months Ended Nine Months Ended
September 29, June 30, September 30, September 29, September 30,
2013 2013 2012 2013 2012

Selected Cash Flow Data (Preliminary):

Net cash provided by operating activities $ 7,905 $ 30,355 $ 58,065 $ 46,525 $ 117,695
Net cash provided by (used in) investing activities $ (2,080 ) $ 3,545 $ 30,510 $ 570 $ (17,474 )
Net cash provided by (used in) financing activities $ 108 $ (20,502 ) $ (44,508 ) $ (33,748 ) $ (37,609 )
 

Other Supplemental Data (Preliminary):

Capital expenditures $ 10,808 $ 7,771 $ 5,488 $ (27,877 ) $ 25,204
Depreciation $ 9,745 $ 10,036 $ 11,790 $ (30,136 ) $ 34,140
Payment of dividend $ 16,258 $ 16,138 $ 16,660 $ (48,241 ) $ 47,170
Dividend paid per share $ 0.11 $ 0.11 $ 0.11 $ 0.33 $ 0.33
Dividend yield per share (a)   4.9 %     4.1 %     4.1 %   4.9 %     4.1 %
 
(a) Dividend yield per share is calculated based on annualized dividend paid per share divided by the common stock share price at the end of the period.
 
           
CYPRESS SEMICONDUCTOR CORPORATION
CONSOLIDATED DILUTED EPS CALCULATION
(In thousands, except per-share data)
(Unaudited)
                     
Three Months Ended
September 29, June 30, September 30,
2013 2013 2012
GAAP Non-GAAP GAAP Non-GAAP   GAAP Non-GAAP
 
Net income (loss) attributable to Cypress $ (8,358 ) $ 22,015 $ 3,766 $ 21,635 $ 14,332 $ 32,322
 
Weighted-average common shares outstanding (basic) 149,679 149,679 147,287 147,287 147,673 147,673
Effect of dilutive securities:
Stock options, unvested restricted stock and other   -     12,525   8,975   12,500   12,627   13,902
Weighted-average common shares outstanding for diluted computation   149,679     162,204   156,262   159,787   160,300   161,575
 
Net income (loss) per share attributable to Cypress - basic $ (0.06 ) $ 0.15 $ 0.03 $ 0.15 $ 0.10 $ 0.22
Net income (loss) per share attributable to Cypress - diluted $ (0.06 )   $ 0.14   $ 0.02   $ 0.14   $ 0.09   $ 0.20
 
                     
September 29, June 30, September 30,
2013 2013 2012
 
Average stock price for the period ended $11.70 $10.72 $11.82
 
Common stock outstanding at period end (in thousands) 150,833 147,972 145,668
 
 

Notes to Non-GAAP Financial Measures

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise