Cypress Earnings Down: $0.20 EPS and 20% Pre-Tax Profit.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 16, 1996--Cypress Semiconductor Corp. (NYSE NYSE See: New York Stock Exchange :CY) today reported that revenue for the first half of 1996 was $305.6 million, a 19% increase from last year's first half revenue of $257.6 million. Earnings for the first half of 1996 were $0.58 per share, fully diluted, a 53% improvement from last year's earnings of $0.38 per share. Pre-tax profits for the first half were 26% of revenue vs. last year's 21%. Revenue for the second quarter of 1996 was $135.5 million, up 1% from the year-ago quarter's revenue of $134.3 million, but down 20% from last quarter's revenue of $170.2 million. Earnings for the second quarter of 1996 were $0.20 per share, down from the year-ago earnings of $0.27 per share and down from last quarter's earnings of $0.39 per share. Cypress President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. T.J. Rodgers stated: "The second quarter was weak. We expected $0.22 earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ), but turns orders that were anticipated did not materialize, causing us to finish the quarter with $0.20 EPS. Our revenue decline of 20% from the first quarter was due mostly to price declines. "Unit demand was down slightly, dropping from 46.8 million units last quarter to 43.2 million units this quarter, but our average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. dropped 15% from $3.59 last quarter to $3.06 this quarter. This price recession reduced gross margin from 54.8% last quarter to 46.8% this quarter. We believe we have suffered the brunt of the price reductions and that our average selling price will decline only modestly in the September-ending quarter. "We increased R&D expenditures to 16.2% of sales this quarter, compared with 12.6% last quarter in order to put intense focus on new product introductions. However, we managed to keep overall operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. down in order to maintain 20% pre-tax profits, a significant accomplishment for Cypress employees during these hard times." Rodgers concluded, "We currently expect that the September quarter also will be under pressure and could be down from last quarter, that inventory corrections at our datacom and telecom end-customers should be completed, and that the December quarter could begin an upturn." Cypress Semiconductor Cypress Semiconductor is a semiconductor design and manufacturing company. It began operations in 1982 and listed publicly in 1986. Two years later, the company shifted over to the New York Stock Exchange under the symbol, (NYSE: CY). Corporation is an international supplier of high-performance integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. with worldwide headquarters in San Jose. The company provides a broad range of products for leading computer, networking and telecommunications companies worldwide. The company's product line includes static RAM A fast memory technology that requires power to hold its content. Static RAM (SRAM, S-RAM) is used for high-speed registers, caches and relatively small memory banks such as a frame buffer on a display adapter. and EPROM EPROM in full erasable programmable read-only memory Form of computer memory that does not lose its content when the power supply is cut off and that can be erased and reused. memories, programmable logic devices (PLDs), field programmable gate arrays See FPGA. (FPGAs), data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. products, and personal computer chipsets and timing devices. Cypress shares are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CY. The company has a site on the worldwide web at http://www.cypress.com, and offers fax-on-demand service at 800/213-5120 or, outside North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , at 408/943-2798. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this press release regarding Cypress's business that are not historical facts are "forward-looking statements" involving risks and uncertainties, including, but not limited to, market-acceptance risks, the effect of economic conditions, and shifts in supply and demand, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints. Please refer to the MD&A (Management Discussion and Analysis of Financial Condition and Results of Operations) for a discussion of such risks in the most recent Cypress annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and quarterly report on Form 10-Q Form 10-Q See 10-Q. . -0-
Cypress Semiconductor Corp.
Consolidated Balance Sheets
(Dollars in thousands)
(unaudited)
Jul. 1, Jan. 1,
1996 1996
Assets
Current assets:
Cash and short-term investments $ 65,453 $161,618
Accounts receivable 83,546 108,587
Other receivables 12,229 8,335
Inventories 45,165 28,978
Other current assets 45,422 44,119
Total current assets 251,815 351,637
Property and equipment, net 434,576 336,593
Other assets 84,555 62,498
-------- --------
$770,946 $750,728
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 89,647 $ 82,315
Accrued liabilities 36,308 46,800
Deferred income on sales
to distributors 14,103 13,190
Income taxes payable 10,255 18,752
Total current liabilities 150,313 161,057
Convertible subordinated note 97,043 95,879
Other long-term debt 10,222 6,040
Deferred income taxes 15,653 15,653
Total liabilities 273,231 278,629
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value,
5,000,000 shares authorized;
none issued and outstanding -- --
Common stock, $.01 par value,
250,000,000 shares authorized;
90,301,000 and 88,924,000
issued; 80,041,000 and
81,501,000 outstanding 184,111 209,637
Retained earnings 313,604 262,462
Total stockholders' equity 497,715 472,099
-------- --------
$770,946 $750,728
Cypress Semiconductor Corp.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
Jul. 1, Jul. 3, April 1, Jul. 1, Jul. 3,
1996 1995 1996 1996 1995
Revenues $135,464 $134,273 $170,171 $305,635 $257,638
Cost and expenses:
Cost of revenues 72,015 60,899 76,861 148,876 121,733
Research and
development 21,989 16,392 21,416 43,405 32,063
Marketing, general
and administrative 15,502 17,506 18,140 33,642 32,797
Other non-recurring
costs -- -- -- -- 17,800
Total operating
costs and
expenses 109,506 94,797 116,417 225,923 204,393
Operating income 25,958 39,476 53,754 79,712 53,245 Interest expense (1,482) (1,415) (1,647) (3,129) (3,148) Interest income & other 2,075 2,255 1,873 3,948 4,558 Income before income taxes 26,551 40,316 53,980 80,531 54,655 Provision for income taxes (9,686) (14,714) (19,703) (29,389) (19,948) Net income $ 16,865 $ 25,602 $ 34,277 $ 51,142 $ 34,707 Net income per share: Primary $0.20 $0.29 $0.41 $0.61 $0.39 Fully Diluted $0.20 $0.27 $0.39 $0.58 $0.38 Weighted average shares of common stock and common stock equivalents: Primary 83,285 89,557 83,418 83,352 88,390 Fully Diluted 91,227 98,244 91,358 91,293 96,926 CONTACT: Cypress Semiconductor Manny Manny may refer to: In nobility:
Joe McCarthy (Press), 408/943-2902 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion