Cypress Reports First-Quarter 2015 Results

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                     CYPRESS SEMICONDUCTOR CORPORATION                      
  RECONCILIATION OF KEY NON-GAAP CONSOLIDATED FINANCIAL METRICS TO LEGACY   
                               CYPRESS METRICS                              
                               (In Thousands)                               
                                (Unaudited)                                 
                                                                            
Reconciliation of key non-GAAP consolidated financial                       
 metrics to Legacy Cypress metrics                                          
                                                                            
                                   Three months ended March 29, 2015        
                            ----------------------------------------------- 
                                             Impact of                      
                                             the merger                     
                                                and                         
                                              Spansion            Legacy    
                             Consolidated    operations          Cypress    
                            -------------  -------------      ------------- 
                                                                            
Revenue                     $     209,137  $    35,245.0      $     173,892 
Non-GAAP gross margin       $      (2,669) $     (91,093) (1) $      88,424 
Non-GAAP gross margin %              -1.3%         -52.1%              50.8%
Non-GAAP net loss           $     (87,857)      (105,277)            17,420 
Non-GAAP diluted earnings                                                   
 per share                  $       (0.45)                    $        0.10 
Shares used in non-GAAP                                                     
 earnings per share                                                         
 calculation                      196,471                           175,130 
                                                                                                                 
(1)  Non-GAAP  gross  margin  for  Spansion  operations  included  $107  million  of    
  one-time,  merger-related  inventory  adjustment.                                                          
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                          CYPRESS  SEMICONDUCTOR  CORPORATION                                            
                                      CONDENSED  CONSOLIDATED  BALANCE  SHEETS                                        
                                                              (In  thousands)                                                              
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                                                                              --------------  --------------
                                                                                                  March  29,          December  28,  
                                                                                                        2015                      2014          
                                                                                              --------------  --------------
                                                                                                                                                        
ASSETS                                                                                                                                            
                                                                                                                                                        
    Cash,  cash  equivalents  and  short-term                                                                          
      investments                                                                  $          157,167    $          118,812  
    Accounts  receivable,  net                                                      192,136                  75,984  
    Inventories,  net  (a)                                                              389,022                  88,227  
    Property,  plant  and  equipment,  net                                  561,296                237,763  
    Goodwill  and  other  intangible  assets,  net                2,707,698                  99,615  
    Other  assets                                                                              230,189                122,880  
                                                                                              -------------    -------------  
        Total  assets                                                              $      4,237,508    $          743,281  
                                                                                              =============    =============  
                                                                                                                                                        
LIABILITIES  AND  EQUITY                                                                                                            
                                                                                                                                                        
    Accounts  payable                                                          $          195,017    $            42,678  
    Deferred  margin  on  sales  to  distributors                      128,464                  95,187  
    Income  tax  liabilities                                                            60,417                  21,494  
    Other  liabilities                                                                    575,495                155,057  
    Long-term  revolving  credit  facility                                350,000                227,000  
                                                                                              -------------    -------------  
        Total  liabilities                                                            1,309,393                541,416  
                                                                                              -------------    -------------  
    Total  Cypress  stockholders'  equity                              2,934,649                207,757  
    Noncontrolling  interest                                                          (6,534)                (5,892)
                                                                                              -------------    -------------  
        Total  equity                                                                      2,928,115                201,865  
                                                                                              -------------    -------------  
            Total  liabilities  and  equity                          $      4,237,508    $          743,281  
                                                                                              =============-  =============-
                                                                                                                                                        
(a)  Net  inventories  include  $1.7  million  and  $2.0  million  of  capitalized        
  inventories  related  to  stock  compensation  expense,  as  of  March  29,  2015        
  and  December  28,  2014,  respectively.                                                                              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                          CYPRESS  SEMICONDUCTOR  CORPORATION                                            
                            CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS                              
                                                            ON  A  GAAP  BASIS                                                              
                                      (In  thousands,  except  per-share  data)                                        
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                                              ---------------------------------------------
                                                                                          Three  Months  Ended                          
                                                              ---------------------------------------------
                                                                    March  29,          December  28,        March  30,      
                                                                          2015                      2014                      2014          
                                                              --------------    -------------    --------------
                                                                                                                                                        
Revenues                                                $          209,137    $          184,097    $          170,283  
Cost  of  revenues                                            250,839                  90,395                  92,561  
                                                              --------------    -------------    --------------
Gross  margin                                                    (41,702)                93,702                  77,722  
Operating  expenses:                                                                                                                  
    Research  and  development                          50,474                  39,677                  45,330  
    Selling,  general  and                                                                                                            
      administrative                                            51,074                  37,746                  42,609  
    Acquisition  costs  and                                                                                                          
      amortization  of  acquisition-                                                                                          
      related  intangibles                                  26,833                    8,558                    1,833  
    Restructuring  charges                                75,715                          72                  (1,014)
                                                              --------------    -------------    --------------
        Total  operating  expenses,                                                                                              
          net                                                            204,096                  86,053                  88,758  
                                                              --------------    -------------    --------------
Operating  income  (loss)                            (245,798)                  7,649                (11,036)
Interest  and  other  income                                                                                                      
  (loss),  net                                                      (5,597)                (2,759)                (1,750)
                                                              --------------    -------------    --------------
Income  (loss)  before  income                                                                                                  
  taxes                                                              (251,395)                  4,890                (12,786)
Income  tax  provision  (benefit)                (20,965)                  1,813                  (4,517)
                                                              --------------    -------------    --------------
Income  (loss),  net  of  taxes                    (230,430)                  3,077                  (8,269)
Adjust  for  net  loss                                                                                                                  
  attributable  to  noncontrolling                                                                                          
  interest                                                                  642                        426                        335  
                                                              --------------    -------------    --------------
Net  income  (loss)  attributable                                                                                            
  to  Cypress                                          $        (229,788)  $              3,503    $            (7,934)
                                                              ==============    =============    ==============
                                                                                                                                                        
Net  income  (loss)  per  share                                                                                                  
  attributable  to  Cypress:                                                                                                      
    Basic                                                  $              (1.17)  $                0.02    $              (0.05)
    Diluted                                              $              (1.17)  $                0.02    $              (0.05)
Shares  used  in  net  income                                                                                                      
  (loss)  per  share  calculation:                                                                                            
    Basic                                                              196,471                161,864                154,572  
    Diluted                                                          196,471                169,148                154,572  
                                                              ---------------------------------------------
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                          CYPRESS  SEMICONDUCTOR  CORPORATION                                            
    RECONCILIATION  OF  GAAP  FINANCIAL  MEASURES  TO  NON-GAAP  FINANCIAL  MEASURES    
                                                                          (a)                                                                        
                                      (In  thousands,  except  per-share  data)                                        
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                      ---------------------------------------------------------
                                                                            Three  Months  Ended                                        
                                      ---------------------------------------------------------
                                                                              December                          March                      
                                      March  29,        %  of            28,            %  of            30,            %  of    
                                            2015        Revenue        2014        Revenue        2014        Revenue  
                                      ---------    -------    --------    -------    --------    -------  
                                                                                                                                                        
GAAP  gross  margin                                                                                                                      
  (loss)                        $  (41,702)      -19.9%  $  93,702          50.9%  $  77,722          45.6%
    Stock-based                                                                                                                              
      compensation                                                                                                                          
      expense                          4,219            2.0%        2,759            1.5%        2,251            1.3%
    Ramtron                                                                                                                                      
      acquisition                                                                                                                            
      costs  and                                                                                                                                
      related                                                                                                                                    
      amortization                        -            0.0%              22            0.0%        2,967            1.7%
    Changes  in  value                                                                                                                    
      of  deferred                                                                                                                            
      compensation                                                                                                                          
      plan                                    189            0.1%            (44)          0.0%            218            0.1%
    Impairment  of                                                                                                                          
      assets,                                                                                                                                    
      restructuring                                                                                                                        
      and  other                          120            0.1%                -            0.0%        2,564            1.5%
    Impact  of                                                                                                                                  
      purchase                                                                                                                                  
      accounting                  34,505          16.5%                -                -                  -                -  
                                      ---------    -------    --------    -------    --------    -------  
Non-GAAP  gross                                                                                                                            
  margin  (loss)          $    (2,669)        -1.3%  $  96,439          52.4%  $  85,722          50.3%
                                      =========    =======    ========    =======    ========    =======  
                                                                                                                                                        
GAAP  research  and                                                                                                                      
  development                                                                                                                                
  expenses                    $    50,474                      $  39,677                      $  45,330                    
    Stock-based                                                                                                                              
      compensation                                                                                                                          
      expense                        (5,750)                        (2,553)                        (7,183)                  
    Ramtron                                                                                                                                      
      acquisition                                                                                                                            
      costs  and                                                                                                                                
      related                                                                                                                                    
      amortization                        -                                    -                                    -                    
    Changes  in  value                                                                                                                    
      of  deferred                                                                                                                            
      compensation                                                                                                                          
      plan                                  (617)                              128                              (424)                  
    Impairment  of                                                                                                                          
      assets,                                                                                                                                    
      restructuring                                                                                                                        
      and  other                          (62)                            (252)                                  -                    
    Impact  of                                                                                                                                  
      purchase                                                                                                                                  
      accounting                      (130)                                  -                                    -                    
                                      ---------    -------    --------    -------    --------    -------  
Non-GAAP  research                                                                                                                      
  and  development                                                                                                                        
  expenses                    $    43,915                      $  37,000                      $  37,723                    
                                      =========    =======    ========    =======    ========    =======  
                                                                                                                                                        
GAAP  selling,                                                                                                                              
  general  and                                                                                                                                
  administrative                                                                                                                          
  expenses                    $    51,074                      $  46,376                      $  42,609                    
    Stock-based                                                                                                                              
      compensation                                                                                                                          
      expense                        (8,827)                        (1,436)                        (7,388)                  
    Ramtron                                                                                                                                      
      acquisition                                                                                                                            
      costs  and                                                                                                                                
      related                                                                                                                                    
      amortization                        -                          (8,602)                            (473)                  
    Changes  in  value                                                                                                                    
      of  deferred                                                                                                                            
      compensation                                                                                                                          
      plan                              (1,110)                              229                              (964)                  
    Impairment  of                                                                                                                          
      assets,                                                                                                                                    
      restructuring                                                                                                                        
      and  other                              -                                (72)                                  -                    
    Legal  and  other              (654)                        (1,330)                                  -                    
    Impact  of                                                                                                                                  
      purchase                                                                                                                                  
      accounting                      (103)                                  -                                    -                    
                                      ---------    -------    --------    -------    --------    -------  
Non-GAAP  selling,                                                                                                                      
  general  and                                                                                                                                
  administrative                                                                                                                          
  expenses                    $    40,380                      $  35,165                      $  33,784                    
                                      =========    =======    ========    =======    ========    =======  
                                                                                                                                                        
GAAP  operating                                                                                                                            
  income  (loss)          $(245,798)                    $    7,649                      $(11,036)                  
    Stock-based                                                                                                                              
      compensation                                                                                                                          
      expense                        18,796                            6,748                          16,822                    
    Ramtron                                                                                                                                      
      acquisition                                                                                                                            
      costs  and                                                                                                                                
      related                                                                                                                                    
      amortization                1,305                            8,622                            5,274                    
    Changes  in  value                                                                                                                    
      of  deferred                                                                                                                            
      compensation                                                                                                                          
      plan                                1,916                              (402)                          1,606                    
    Impairment  of                                                                                                                          
      assets,                                                                                                                                    
      restructuring                                                                                                                        
      and  other                          182                                328                            1,550                    
    Legal  and  other                654                            1,330                                    -                    
    Spansion  merger                                                                                                                      
      related  and                                                                                                                            
      other  items                95,202                                    -                -                  -                -  
    Impact  of                                                                                                                                  
      purchase                                                                                                                                  
      accounting                  40,780                                    -                -                  -                -  
                                      ---------    -------    --------    -------    --------    -------  
Non-GAAP  operating                                                                                                                    
  income  (loss)          $  (86,963)                    $  24,275                      $  14,216                    
                                      =========    =======    ========    =======    ========    =======  
                                                                                                                                                        
                                                                                                                                                        
GAAP  pretax  profit                                                                                                                    
  (loss)                          (251,395)    -120.2%        4,890            2.7%    (12,786)        -7.5%
    Stock-based                                                                                                                              
      compensation                                                                                                                          
      expense                        18,796            9.0%        6,748            3.7%      16,822            9.9%
    Ramtron                                                                                                                                      
      acquisition                                                                                                                            
      costs  and                                                                                                                                
      related                                                                                                                                    
      amortization                1,305            0.6%        8,622            4.7%        5,274            3.1%
    Changes  in  value                                                                                                                    
      of  deferred                                                                                                                            
      compensation                                                                                                                          
      plan                                1,242            0.6%      (1,048)        -0.6%            747            0.4%
    Impairment  of                                                                                                                          
      assets,                                                                                                                                    
      restructuring                                                                                                                        
      and  other                          455            0.2%            327            0.2%        1,550            0.9%
    Legal  and  other                654            0.3%        1,330            0.7%                -            0.0%
    Investment                                                                                                                                
      related  losses                                                                                                                      
      (gains)                          2,728            1.3%        1,495            0.8%            (30)          0.0%
    Tax  related  and                                                                                                                      
      other  items                      869            0.4%          (618)        -0.3%                -            0.0%
    Losses  from                                                                                                                              
      equity  method                                                                                                                        
      investment                    1,559            0.7%        1,403            0.8%            913            0.5%
    Spansion  merger                                                                                                                      
      related  and                                                                                                                            
      other  items                95,202          45.5%                -            0.0%                -            0.0%
    Impact  of                                                                                                                                  
      purchase                                                                                                                                  
      accounting                  40,780          19.5%                -                -                  -                -  
                                      ---------    -------    --------    -------    --------    -------  
Non-GAAP  pretax                                                                                                                          
  profit  (loss)          $  (87,805)      -42.0%  $  23,149          12.6%  $  12,490                    
                                      =========    =======    ========    =======    ========    =======  
                                                                                                                                                        
GAAP  net  income                                                                                                                          
  (loss)                                                                                                                                          
  attributable  to                                                                                                                        
  Cypress                      $(229,787)                    $    3,503                      $  (7,934)                  
    Stock-based                                                                                                                              
      compensation                                                                                                                          
      expense                        18,796                            6,748                          16,822                    
    Ramtron                                                                                                                                      
      acquisition                                                                                                                            
      costs  and                                                                                                                                
      related                                                                                                                                    
      amortization                1,305                            8,622                            5,274                    
    Changes  in  value                                                                                                                    
      of  deferred                                                                                                                            
      compensation                                                                                                                          
      plan                                1,242                          (1,048)                              747                    
    Impairment  of                                                                                                                          
      assets,                                                                                                                                    
      restructuring                                                                                                                        
      and  other                          455                                327                            1,550                    
    Legal  and  other                654                            1,330                                    -                    
    Investment                                                                                                                                
      related  losses                                                                                                                      
      (gains)                          2,728                            1,495                                (30)                  
    Tax  related  and                                                                                                                      
      other  items              (20,791)                            (324)                        (5,367)                  
    Losses  from                                                                                                                              
      equity  method                                                                                                                        
      investment                    1,559                            1,403                                913                    
    Spansion  merger                                                                                                                      
      related  and                                                                                                                            
      other  items                95,202                                    -                                    -                    
    Impact  of                                                                                                                                  
      purchase                                                                                                                                  
      accounting                  40,780                                    -                                    -                    
                                      ---------    -------    --------    -------    --------    -------  
Non-GAAP  net                                                                                                                                
  income  (loss)                                                                                                                            
  attributable  to                                                                                                                        
  Cypress                      $  (87,857)                    $  22,056                      $  11,975                    
                                      =========    =======    ========    =======    ========    =======  
                                                                                                                                                        
GAAP  net  income                                                                                                                          
  (loss)  per  share                                                                                                                      
  attributable  to                                                                                                                        
  Cypress  -  diluted  $      (1.17)                    $      0.02                      $    (0.05)                  
    Stock-based                                                                                                                              
      compensation                                                                                                                          
      expense                            0.10                              0.04                              0.10                    
    Ramtron                                                                                                                                      
      acquisition                                                                                                                            
      costs  and                                                                                                                                
      related                                                                                                                                    
      amortization                  0.01                              0.05                              0.03                    
    Changes  in  value                                                                                                                    
      of  deferred                                                                                                                            
      compensation                                                                                                                          
      plan                                  0.01                            (0.01)                            0.00                    
    Impairment  of                                                                                                                          
      assets,                                                                                                                                    
      restructuring                                                                                                                        
      and  other                              -                                    -                              0.01                    
    Legal  and  other              0.00                              0.01                                    -                    
    Investment                                                                                                                                
      related  losses                                                                                                                      
      (gains)                            0.01                              0.01                            (0.00)                  
    Tax  related  and                                                                                                                      
      other  items                  (0.11)                                  -                            (0.03)                  
    Losses  from                                                                                                                              
      equity  method                                                                                                                        
      investment                      0.01                              0.01                              0.01                    
    Spansion  merger                                                                                                                      
      related  and                                                                                                                            
      other  items                    0.48                                    -                                    -                    
    Impact  of                                                                                                                                  
      purchase                                                                                                                                  
      accounting                      0.21                                    -                                    -                    
                                      ---------    -------    --------    -------    --------    -------  
Non-GAAP  net                                                                                                                                
  income  (loss)  per                                                                                                                    
  share                                                                                                                                            
  attributable  to                                                                                                                        
  Cypress  -  diluted  $      (0.45)                    $      0.13                      $      0.07                    
                                      ---------------------------------------------------------
                                                                                                                                                        
                                                                                                                                                        
(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                          
                                                              --------------------------------------------
                                                                  March  29,          December  28,        March  30,      
                                                                        2015                      2014                      2014          
                                                              -------------    -------------    --------------
Selected  Cash  Flow  Data                                                                                                        
  (Preliminary):                                                                                                                        
------------------------------                                                                                          
    Net  cash  provided  by                                                                                                          
      operating  activities                $            12,295    $            25,514    $            25,191  
    Net  cash  provided  (used)  by                                                                                            
      investing  activities                $        (110,663)  $          (13,736)  $              2,063  
    Net  cash  used  in  financing                                                                                              
      activities                                    $          142,216    $          (13,126)  $            (9,619)
                                                                                                                                                      
Other  Supplemental  Data                                                                                                        
  (Preliminary):                                                                                                                        
------------------------------                                                                                          
    Capital  expenditures                  $              6,496    $              3,769    $              5,599  
    Depreciation                                  $            13,902    $            10,013    $              9,485  
    Payment  of  dividend                    $            17,931    $            17,728    $            16,850  
    Dividend  paid  per  share            $                0.11    $                0.11    $                0.11  
    Dividend  yield  per  share  (a)                      3.1%                      3.0%                      4.4%
                                                              --------------------------------------------
                                                                                                                                                      
(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                                      
                                    ----------------------------------------------------------
                                                March  29,                    December  28,                March  30,        
                                                      2015                                2014                            2014              
                                    ---------------------  -----------------  ------------------
                                            GAAP        Non-GAAP        GAAP      Non-GAAP      GAAP        Non-GAAP
                                    ----------    --------    --------  --------  --------    --------
                                                                                                                                                        
Net  income  (loss)                                                                                                                      
  attributable  to                                                                                                                        
  Cypress                      $(229,788)  $(87,857)  $    3,503  $  22,056  $  (7,934)  $  11,975
                                      ---------    --------    --------  --------  --------    --------
                                                                                                                                                        
Weighted-average                                                                                                                        
  common  shares                                                                                                                            
  outstanding                                                                                                                                
  (basic)                          196,471      196,471      161,864    161,864    154,572      154,572
Effect  of  dilutive                                                                                                                    
  securities:                                                                                                                                
    Stock  options,                                                                                                                        
      unvested                                                                                                                                  
      restricted                                                                                                                              
      stock  and  other                  -                  -          7,284        8,892                -        11,366
                                      ---------    --------    --------  --------  --------    --------
Weighted-average                                                                                                                        
  common  shares                                                                                                                            
  outstanding  for                                                                                                                        
  diluted                                                                                                                                        
  computation                  196,471      196,471      169,148    170,756    154,572      165,938
                                      ---------    --------    --------  --------  --------    --------
                                                                                                                                                        
Net  income  (loss)                                                                                                                      
  per  share                                                                                                                                    
  attributable  to                                                                                                                        
  Cypress  -  basic      $      (1.17)  $    (0.45)  $      0.02  $      0.14  $    (0.05)  $      0.08
Net  income  (loss)                                                                                                                      
  per  share                                                                                                                                    
  attributable  to                                                                                                                        
  Cypress  -  diluted  $      (1.17)  $    (0.45)  $      0.02  $      0.13  $    (0.05)  $      0.07
                                                                                                                                                        
                                    ----------------------------------------------------------
                                                                                                                                                        
                                                                                                                                                        
                                    ----------------------------------------------------------
                                                  March  29,                  December  28,                March  30,        
                                                      2015                                2014                              2014            
                                    ---------------------  -----------------  ------------------
                                                                                                                                                        
Average  stock                                                                                                                              
  price  for  the                                                                                                                            
  period  ended                          $14.72                            $10.77                          $10.13          
                                                                                                                                                        
Common  stock                                                                                                                                
  outstanding  at                                                                                                                          
  period  end  (in                                                                                                                          
  thousands)                              331,015                          163,013                      156,970          
                                                                                                                                                        
                                    ----------------------------------------------------------
                                                                                                                                                        
                                                                                                                                                        
 

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