CYPRESS SEMICONDUCTOR CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

ON A GAAP BASIS

(In thousands, except per-share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

January 3,

September 27,

December 28,

January 3,

December 28,

2016

2015

2014

2016

2014

Revenues

$        450,128

$            463,810

$        184,097

$    1,607,853

$          725,497

Cost of revenues

305,819

303,434

90,395

1,206,789

361,820

Gross margin 

144,309

160,376

93,702

401,064

363,677

Operating expenses:

Research and development

$          75,195

$              75,960

$          39,677

$       282,904

$          164,560

Selling, general and administrative

86,112

74,627

37,746

297,721

163,488

Acquisition costs and amortization of acquisition-related intangibles

37,710

32,359

8,558

138,661

13,936

Gain on divestiture of TrueTouch business

-

(66,472)

-

(66,472)

-

Restructuring charges (benefit)

1,406

2,924

72

90,084

(1,180)

Total operating expenses, net

200,423

119,398

86,053

742,898

340,804

Operating income (loss)

$        (56,114)

$              40,978

$            7,649

$     (341,834)

$            22,873

Interest and other income (loss), net

(5,886)

(8,884)

(2,759)

(27,273)

(7,528)

Income (loss) before income taxes

(62,000)

32,094

4,890

(369,107)

15,345

Income tax provision (benefit)

15,726

2,303

1,814

16,960

(1,173)

Income (loss), net of taxes

(77,726)

29,791

3,076

(386,067)

16,518

Adjust for net loss attributable to noncontrolling interest

467

521

426

2,271

1,418

Net Income (loss) attributable to Cypress

$        (77,259)

$              30,312

$            3,502

$     (383,796)

$            17,936

Net Income (loss) per share attributable to Cypress:

Basic

$            (0.23)

$                  0.09

$              0.02

$           (1.27)

$                0.11

Diluted

$            (0.23)

$                  0.08

$              0.02

$           (1.27)

$                0.11

Cash dividend declared per share

$              0.11

$                  0.11

$              0.11

$             0.44

$                0.44

Shares used in net income (loss) per share calculation:

Basic

334,447

335,299

161,864

302,036

159,031

Diluted

334,447

357,657

169,148

302,036

169,122