Cypress Q101 Results: Revenue, $262 Million; Earnings, EBG $0.25 Per Share.Business Editors/High-Tech Writers 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)--April 19, 2001 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 (NYSE NYSE See: New York Stock Exchange :CY) today announced that revenue for the first quarter 2001 ended April 1, 2001, was $262.3 million, down 29% from fourth quarter 2000 revenue of $370.0 million, and relatively flat from year-ago quarter revenue of $264.2 million. Included in the first quarter 2001 results were previously announced changes in Cypress's business model, which resulted in an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. one-time revenue deferral deferral - Waiting for quiet on the Ethernet. of $25 million. The business model changes included the conversion of a high-volume strategic account to a consignment The delivery of goods to a carrier to be shipped to a designated person for sale. A Bailment of goods for sale. A consignment is an arrangement resulting from a contract in which one person, the consignor, either ships or entrusts goods to another, the program (causing a $4 million deferral) and a change in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and Asian distribution sales model to increase Cypress's competitiveness in those regions (a $21 million deferral). For direct comparison, excluding these changes, revenue in the first quarter was $287.3 million, a 22% decline from last quarter and a 9% increase from the year-ago quarter. Net income for the first quarter 2001 excluding goodwill (acquisition-related costs and non-recurring items) was $32.7 million, resulting in diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings before goodwill (EBG EBG Electromagnetic Band Gap EBG Ernst-Barlach-Gymnasium (German high school name; several cities) EBG European Board of Gastroenterology EBG EuroBonus Gold EBG Electron Beam Gun EBG Electronic Book G EBG Extended Boolean Graphs ) of $0.25 per share, compared with fourth quarter 2000 EBG of $0.74 per share and the year-ago quarter EBG of $0.40 per share. Lower earnings resulted from both lower sales and an income tax rate increase from 22% in the last quarter of 2000 to 30% in the first quarter of 2001. Cypress Cypress, city, United States Cypress (sī`prəs), city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif. 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 said, "The first quarter of 2001 was a tough quarter. Continued inventory reduction efforts by most of our customers exacerbated a fundamental slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in end demand in practically all the markets we serve. This recession is like the one in 1996, but the revenue drop is sharper, due to a severe unit volume decline, mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by a more modest average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ) decline. During the quarter, large cancellations in the cell phone market almost completely offset bookings in other market segments, producing very low net bookings for the quarter. Consequently, we are forecasting another decline of 20-24% in revenue to approximately $200-210 million in the second quarter, but our goal is to continue to make money." Market Segments Wide Area Network and Storage Area Network (WAN/SAN) Sales of the WAN/SAN divisions declined 13% from the prior quarter due to cancellations and order push-outs, particularly from our strategic accounts. WAN/SAN represented 54% of the company's revenue in the quarter and posted gross margin of 53%, down from 61% in the prior quarter. We expect this WAN/SAN market slowdown to continue in the second quarter, causing a sequential revenue decline of approximately 22% in this segment. WAN/SAN segment highlights for the quarter include: -- Silicon Light Machines (SLM), acquired by Cypress last year, began work on a highly integrated, multichannel optical monitoring and attenuation system, designed to process in parallel all 100-plus channels used on one fiber in advanced Dense Wave Division Multiplexed (DWDM) optical networking systems. This new product will be manufactured using Silicon Light Machines' Micro-Electromechanical Systems (MEMS) technology currently being manufactured by Cypress. -- Cypress completed the acquisition of International Microelectronics Inc., (IMI), a $50-million privately held company with core competency in timing technology solutions for WAN/SAN applications. IMI has been particularly successful in clocks for applications in communications, cable and DSL modems; office automation; digital cameras, DVDs and video games. The acquisition provides Cypress with the industry's broadest portfolio of zero-delay buffers (ZDBs distribute a single clock signal into as many as eight copies with nearly zero delay). -- Cypress introduced its packet over SONET integrated circuit (POSIC), a 14-million-transistor OC-48 framer designed to handle data at 2.5 Gbps. CEO T.J. Rodgers said: "There is intense pressure on networks to expand capacity and support broadband -- video, voice and data -- transmissions, particularly on the Internet. Although having wider pipes is imperative, dynamic service provisioning -- being able to instantly allocate bandwidth to guarantee quality of service (QoS) -- is critical. POSIC is the first intelligent, programmable OC-48 framer. Operating at 2.5-Gbps, POSIC uses a technique known as virtual concatenation to allocate within nanoseconds up to 16 channels of voice and data. Such instantaneous allocation compares with the days, weeks or months required by telecommunications companies to provide customers with additional high-speed lines. Virtual concatenation is a new IEEE standard, and POSIC is the first chip to support it." -- Cypress announced additional design wins at both Cisco Systems and Marconi Communications for its OC-48 transceiver, which transmits and receives data at 2.5 Gbps over long-haul fiber networks. We believe our 9532 is superior to competing AMCC and Broadcom products in the critical areas of package and die size, input sensitivity to tiny signals and power consumption. -- Nortel Networks acknowledged Cypress as a supplier in good standing with its "Recognition of Excellence" award. The award cites Cypress's many years of service to Nortel with innovative products and solid customer service. The award also underscores Cypress's recent success aligning its product roadmap to meet Nortel's strategic requirements. -- Cypress sampled its second Programmable Serial Interface (PSI(TM)) product. The PSI5G100 is a dual-channel 1.5 Gbps to 2.5-Gbps-per channel physical layer (PHY) serial link, integrated with 100k gates of programmable logic, 240 Kbits of communications memory and phase-locked loops. The PSI family targets the backplane connection problem in systems which span a broad range of market segments, including SONET and InfiniBand(TM) systems. Cypress is a leader in this new field of programmable PHYs. -- Cypress opened a design center in Phoenix, Arizona to be the company's center of excellence for integrated optoelectronics (IOE). The center's first task will be the development of a 10-Gigabit-per-second (Gbps) IOE device for backplane solutions, which will integrate the physical layer (PHY) technology from recently acquired HiBand Semiconductors with lasers and photodetectors to transmit and receive data over fiber at very high speeds inside of our customers' systems. -- Cypress's Atlanta design center, launched in cooperation with Georgia Tech's Yamacraw broadband initiative, now has a new physical plant complete with optoelectronic test and characterization equipment. Our Atlanta design center will also work on our IOE initiative. -- Cypress will complete this month the construction of a 3,000-square-foot lithium tantalate (LiTaO3) fab in San Jose. The new facility represents Cypress's first foray into non-silicon wafer manufacturing. The company believes that LiTaO3 technology will provide significant advantages in optoelectronic devices. -- Cypress announced first revenue on the 100,000-gate Delta39K100 CPLD, the first in its family of Delta39K(TM) "CPLDs at FPGA Densities(TM)". Based on a 0.18-micron process, this family ranges from 15,000 to 350,000 usable gates and provides five times the amount of embedded RAM of any competitive FPGA with similar logic capacity. -- Cypress's Q4 2000 partnership with intellectual property (IP) provider Eureka Technology yielded two new IP cores for the Delta39K(TM) family, the EP520 SDRAM controller core and EC125 32-bit PCI Target. -- In partnership with Mentor Graphics, Cypress also announced forward error correction (FEC) cores, such as Viterbi and Reed Solomon. FEC eliminates/corrects transmission bit errors in high-speed communications systems. -- Cypress began to ship in volume a variation of its industry-leading RoboClock(R) programmable-skew clock buffer. The new device, the 200 MHz RoboClock 9973 buffer, is pin-compatible with the popular Motorola MPC973 clock buffer. -- Cypress expanded its USB 2.0 product line with the introduction of the EZ-USB(R) SX2(TM) intelligent serial interface engine (SIE), which provides a 480-Mbps USB 2.0 connection to peripherals already containing a microcontroller to drive the SIE. This product will allow for the use of the USB 2.0 standard outside of the PC space. -- Cypress sampled the first of its family of Quad Data Rate(TM) (QDR(TM)) SRAMs. QDR is a third-generation synchronous memory that is capable of delivering data at speeds up to 333 MHz. It is specifically optimized for high-performance networking and telecommunications systems. -- Cypress realized first revenue on its 1-Mbit QuadPort(TM) RAM family of devices. QuadPort is a bandwidth-optimized synchronous four-port memory-based solution for WAN, SAN and WIN switching fabrics. Developed in conjunction with EMC, the world's leading developer of information storage infrastructure systems, the QuadPort's four independent ports deliver complex queuing to dramatically improve quality of service in high-performance communications applications. During the quarter, Cypress also gained two Quad-Port design wins in cellular basestations. The basestation market is a new area of penetration for Quad-Port RAMs. -- Cypress MicroSystems, a subsidiary of Cypress Semiconductor, sampled and announced more than 400 design registrations for its Programmable System-on-Chip(TM) (PSoC(TM)) microcontroller family. Ralph Schmitt, Cypress's VP of Marketing and Sales said, "The new PSoC family is the most successful new-product debut in Cypress's history." PSoC controllers offer both programmable logic and programmable analog circuitry, which enable one PSoC device to replace dozens of components in the $5-billion, 8-bit microcontroller market. Wireless Terminal and Wireless Infrastructure (WIT/WIN) Sales of the WIT/WIN divisions ended down 51% with heavy cancellations and order pushouts, mostly from the wireless/cellular handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. customers. Existing contracts with certain strategic accounts helped to increase market share and hold pricing in those accounts, but the decline in demand was far too great to offset these gains. The WIT/WIN segment declined to 26% of the company's total sales but sustained gross margin of 58%, down only slightly from the 60% recorded last quarter. Although the overall cellular handset market is expected to be at 450 million units in fiscal year 2001, we believe that inventory correction will continue to negatively impact this segment in the near term, with a potential 30% decline in the second quarter. We don't expect a notable revenue increase in this segment until the fourth quarter of 2001. Computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. and Other Sales of the Computation and Other division were down 23% from last quarter and represented 20% of total Cypress's revenue with gross margin of 42%, down from 53% in the prior quarter. The computation segment's problems appear to be the least related to inventory corrections, and sales should start to firm up sooner than the other segments. We project a 10% decline in computation revenues in the second quarter and expect growth to resume in the third quarter of 2001, traditionally the strongest quarter for this market. Segment highlights: -- Cypress signed an exclusive four-year agreement with Agilent Technologies to develop low-cost USB USB in full Universal Serial Bus Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer. microcontrollers for Agilent's next generation of optical mice. Cypress will develop microcontrollers with USB and PS/2 interfaces that will work exclusively with Agilent optical mouse sensors
Agilent, in turn, will develop sensors designed to work only with Cypress microcontrollers. The two companies will jointly promote the combined solutions but will independently manufacture and sell the products for the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and retail markets. Together, the two companies will benefit from cost-efficiency and product customization. -- Working in conjunction with Carry Computer Engineering Co. of Taipei, Taiwan, Cypress introduced Carry's USB Port A USB socket on a computer or peripheral device into which a USB cable is plugged. See USB. Flash Card Reader at last month's CeBIT trade show. The system allows users to transfer data between flash memory cards and personal computers. -- Cypress initiated volume production of a clock to support next-generation Pentium IV See Pentium 4. mainstream desktop and notebook PCs. The W320-03 achieves best-in-class jitter A flicker or fluctuation in a transmission signal or display image. The term is used in several ways, but it always refers to some offset of time and space from the norm. For example, in a network transmission, jitter would be a bit arriving either ahead or behind a standard clock cycle , the most important clock parameter (1) Any value passed to a program by the user or by another program in order to customize the program for a particular purpose. A parameter may be anything; for example, a file name, a coordinate, a range of values, a money amount or a code of some kind. . -- Cypress announced that it has shipped more than 20 million Direct Rambus See RDRAM. Clock Generators A clock generator is a circuit that produces a timing signal (known as a clock signal and behaves as such) for use in synchronizing a circuit's operation. It can range from a simple symmetrical square wave to more complex arrangements. (DRCGs) for PC and video game applications. Cypress was the first solutions provider to support 400 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. DRCG DRCG Denver Regional Council of Governments (Denver, Colorado) and is a market leader in 533 MHz and Dual DRCG products. Other Developments -- Cypress's board of directors increased the current stock buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program by five million shares to a total of 15 million shares, of which approximately 7.5 million shares had been repurchased by the end of the first quarter. -- In response to the dramatic change in demand, Cypress cut its planned capital expenditure from $350 million to $135 million and cut its planned hiring by 80% from approximately 600 openings to 120 openings. Rodgers concluded, "Semiconductor industry revenue is now projected to decline 15% from 2000 revenue, and it appears that the communication segment, on which we have focused a significant portion of our business, is getting hurt the most. However, we still believe that the wide area and storage networks, wireless terminal and wireless infrastructure end markets are high-growth markets long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , and we will continue to focus our new product activities in those markets. Given the poor bookings we experienced during the first quarter, and the continued lack of near-term visibility, we expect a sequentially down second quarter with revenue in the $200-210 million range and single-digit earnings per share before goodwill. It remains our goal to traverse traverse - traversal this tough year stably and profitably." About Cypress Semiconductor Cypress Semiconductor is "Driving the Communications Revolution"(TM) by providing high-performance integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for solutions to fast-growing markets, including 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. , telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , computation, consumer products, and industrial control. With a focus on emerging communications applications, Cypress's product portfolios include high-speed data communications ICs; networking-optimized and micropower static RAMs 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. ; high-bandwidth multi-port and FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out memories; high-density programmable logic devices See PLD. ; timing technology solutions; and controllers for Universal Serial Bus See USB. (hardware, standard) Universal Serial Bus - (USB) An external peripheral interface standard for communication between a computer and external peripherals over an inexpensive cable using biserial transmission. (USB). More than two-thirds of Cypress's sales come from fast-growing communications markets and dynamic companies such as Alcatel, Cisco, Ericsson, Lucent, Motorola, Nortel Networks (Nortel Networks Limited, Brampton, Ontario, www.nortelnetworks.com) A world leader in telecommunications products, which includes switching, wireless and broadband systems for service providers and carriers, telephones and systems for residential and business users, computer telephony , and 3Com. Cypress's ability to mix and match its broad portfolio of intellectual property enables targeted, integrated solutions for high-speed systems that feed bandwidth-hungry Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the applications. Cypress aims to become the preferred silicon supplier for Internet switching systems Switching systems (communications) The assemblies of switching and control devices provided so that any station in a communications system may be connected as desired with any other station. and for every Internet data stream to pass through at least one Cypress IC. Cypress employs more than 4,500 people worldwide with international headquarters in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. . Its 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. More information about Cypress is accessible electronically on the company's worldwide Web site at http://www.cypress.com. 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. -- Forward Looking Statements "Safe Harbor" 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 herein that are not historical facts are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " involving risks and uncertainties, including but not limited to: the effect of global economic conditions, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . Cypress's actual results may vary materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include the continuing inventory correction and demand softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in the markets Cypress generally serves, the drastic decrease in average selling prices which can materially impact Cypress's profitability, market acceptance of the new products Cypress developed for its focused markets, successful closure and effective integration of the businesses and companies Cypress acquired, and other risks detailed from time to time in Cypress's periodic reports with the Securities and Exchange Commission, including but not limited to its 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. for the fiscal year ended December 31, 2000. Note to Editors: Grating Light Valve valve, device for controlling the flow of fluids (liquids and gases). Valves vary in construction and size depending upon their function. Some are classified according to their method of operation or design, e.g. , GLV GLV Grating Light Valve GLV Golovin, AK, USA (Airport Code) GLV General License Limited Value GLV General Law Village , NoBL, No Bus Latency (1) The time between initiating a request in the computer and receiving the answer. Data latency may refer to the time between a query and the results arriving at the screen or the time between initiating a transaction that modifies one or more databases and its completion. , Quad HOTLink hotlink - A mechanism for sharing data between two application programs where changes to the data made by one application appear instantly in the other's copy. Under System 7 on the Macintosh the users establishes a hotlink by doing a "Create Publisher" on the server and II, PSI, Delta39K, CPLDs at FPGA (Field Programmable Gate Array) A type of gate array that is programmed in the field rather than in a semiconductor fab. Containing up to hundreds of thousands of gates, there are a variety of FPGA architectures on the market. Densities, QuadPort, Hybrid Data Port, HDP HDP High Density Polyethylene HDP High Density Plasma HDP Human Dimensions of Global Environmental Change Programme HDP Hazardous Duty Pay HDP Hurricane Destruction Potential HDP Hydrocarbon Dew Point HDP Hard Drive Password , RoboClock II, MediaClock, RAM7, FX2, SX2, MoBL, More Battery Life, and Driving the Communications Revolution are trademarks of Cypress Semiconductor. EZ-USB and RoboClock are registered trademarks of Cypress Semiconductor. PSoC is a trademark of Cypress MicroSystems Cypress MicroSystems (CMS) markets high-performance, field Programmable System-on-a-Chip (PSoC) integrated M8 micro-based solutions. CMS is based in Lynnwood, near Seattle, Washington and was established as a subsidiary of Cypress Semiconductor Corporation in the fourth quarter of . InfiniBand is a trademark of the InfiniBand Trade Association The InfiniBand Trade Association (IBTA) is the standards organization that defines and maintains the InfiniBand specification. It is an industry consortium. The IBTA was established in 1999, and its most prominent members include Cisco, IBM, Intel, Mellanox, QLogic, Sun and . Inventra is a trademark of Mentor Graphics Mentor Graphics, Inc (NASDAQ: MENT) is a US-based multinational corporation dealing in electronic design automation (EDA) for electrical engineering and electronics, as of 2004, ranked third in the EDA industry it helped create. .
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
Apr 1, Dec 31,
2001 2000
------------- ------------
------------- ------------
ASSETS
Current assets:
Cash and short-term investments (a) $ 701,828 $ 884,601
Accounts receivable, net 159,302 193,525
Inventories 145,875 104,935
Other current assets 128,757 99,725
------------- ------------
Total current assets 1,135,762 1,282,786
Property and equipment, net 615,347 571,475
Long-term investments (a) 261,164 211,444
Restricted investments (a) 60,866 60,698
Other assets 367,739 235,351
------------- ------------
Total assets $ 2,440,878 $ 2,361,754
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 100,668 $ 95,735
Accrued liabilities 136,677 121,487
Deferred income on sales to distributors 44,500 34,084
Income taxes payable 46,758 48,121
------------- ------------
Total current liabilities 328,603 299,427
Convertible subordinated notes 570,500 570,500
Deferred income tax 104,653 103,604
Other long-term debt 54,001 60,555
------------- ------------
Total liabilities 1,057,757 1,034,086
Stockholders' equity (b) 1,383,121 1,327,668
------------- ------------
Total liabilities and stockholders'
equity $ 2,440,878 $ 2,361,754
============= ============
(a) Cash and investments at April 1, 2001 totals $1,023,858
(b) Common stock, $.01 par value, 650,000 and 250,000 shares
authorized; 138,339 and 136,895 issued; 127,090 and 125,659
outstanding
CYPRESS SEMICONDUCTOR CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
THREE MONTHS ENDED
(Unaudited)
---------------------------------
Apr 1, Apr 2, Dec 31,
2001 2000 2000
--------- --------- ---------
--------- --------- ---------
Revenues $ 262,263 $ 264,241 $ 370,025
Costs and expenses:
Costs of revenues 125,245 130,722 151,053
Research and development 56,233 38,324 53,323
Selling, general and
administrative 43,948 33,533 41,912
Acquisition, merger and
other non-recurring costs -- -- --
Restructuring (credits) -- -- --
---------- ---------- ----------
Total operating costs 225,426 202,579 246,288
---------- ---------- ----------
Operating Income 36,837 61,662 123,737
Net Interest income and other 9,914 4,836 10,915
---------- ---------- ----------
Income before income tax 46,751 66,498 134,652
---------- ---------- ----------
(Provision) for income tax (14,025) (14,868) (29,337)
---------- ---------- ----------
Net income $ 32,726 $ 51,630 $ 105,315
========== ========== ==========
Pro Forma earnings per share:
Basic net income per share $ 0.26 $ 0.44 $ 0.81
Diluted net income per share $ 0.25 $ 0.40 $ 0.74
Shares used in per share
calculation:
Basic 126,417 115,841 129,335
Diluted 132,050 138,750 147,575
Memo: After tax interest added
to net income for diluted
earnings per share calculation -- 3,524 3,370
CYPRESS SEMICONDUCTOR CORPORATION
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
The preceding unaudited pro forma consolidated statements of
operations exclude the effects of restructuring credits, acquisition
and merger costs, and other non-recurring items as follows:
For the quarter ended April 2, 2000, restructuring credits of $0.1
million were excluded on a pre-tax basis.
During the quarter ended April 1, 2001, acquisition-related
pre-tax charges related to Altera Max5000 business, Anchor Chips,
Arcus, Galvantech, HiBand, IC Works, IMI, RadioCom and Silicon Light
Machines of $27.0 million including:
-- $11.3 million related to the write-off of in process
technology.
-- $11.7 million related to amortization of goodwill and
other intangibles.
-- $4.0 million related to non-cash deferred compensation.
During the quarter ended December 31, 2000, acquisition-related
pre-tax charges related to Altera Max5000 business, Anchor Chips,
Arcus, Galvantech, IC Works, RadioCom and Silicon Light Machines of
$12.5 million including:
-- $8.9 million related to amortization of goodwill and other
intangibles.
-- $3.6 million related to non-cash deferred compensation.
During the quarter ended April 2, 2000, acquisition-related
pre-tax charges related to Alation, Altera Max5000 business, Anchor
Chips, Arcus, Galvantech, and IC Works of $4.5 million including:
-- $2.3 million related to amortization of goodwill and other
intangibles.
-- $1.8 million related to transaction costs.
-- $0.4 million related to non-cash deferred compensation.
During the quarter ended December 31, 2000, non-recurring items
excluded from the pro forma results included a charge of $1.9 million
for the write off of bond costs, and a one-time gain of $6.6 million
related to the disposal of manufacturing equipment.
During the quarter ended April 2, 2000, a one-time gain on the
sale of the FCT business of $5.0 million was excluded net of tax from
the pro forma results.
For the quarter ended April 1, 2001, $4.8 million of the tax
effects on the preceding transactions were excluded.
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
THREE MONTHS ENDED
(Unaudited)
---------------------------------
Apr 1, Apr 2, Dec 31,
2001 2000 2000
--------- --------- ---------
--------- --------- ---------
Revenues $ 262,263 $ 264,241 $ 370,025
Costs and expenses:
Costs of revenues 125,709 130,826 151,087
Research and development 57,424 38,393 55,382
Selling, general and
administrative 46,292 33,626 43,420
Acquisition, merger and
other non-recurring costs 23,048 4,209 8,856
Restructuring (credits) -- -- --
--------- --------- ---------
Total operating costs 252,473 207,054 258,745
--------- --------- ---------
Operating Income 9,790 57,187 111,280
Net Interest income and other 9,914 9,836 15,647
--------- --------- ---------
Income before income tax 19,704 67,023 126,927
--------- --------- ---------
(Provision) for income tax (9,247) (14,983) (29,337)
--------- --------- ---------
Net income $ 10,457 $ 52,040 $ 97,590
========= ========= =========
Basic net income per share $ 0.08 $ 0.45 $ 0.75
Diluted net income per share $ 0.08 $ 0.40 $ 0.68
Shares used in per share
calculation:
Basic 126,417 115,841 129,335
Diluted 132,050 138,750 147,575
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