Cypress Reports 2007 Third-Quarter Results: Record Revenue.* Record quarterly revenue of $449.5 million--SunPower and semiconductor1 group both grew strongly. * Consolidated revenue increased 20.6% sequentially and 54.9% year-on-year. * Semiconductor1 revenue increased 8.1% sequentially, or 12.2% adjusted for the Q2 PSRAM PSRAM Pseudo-Static Random Access Memory PSRAM Pseudo Static Ram divestiture. * PSoC([R]) revenue exceeded expectations, set a new quarterly record and grew 27% sequentially. * Cypress shipped its 250 millionth PSoC mixed-signal array during the quarter. 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. -- 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). Corp. (NYSE NYSE See: New York Stock Exchange :CY) today announced that revenue for the 2007 third quarter was $449.5 million, a quarterly record, up 20.6% from prior-quarter revenue of $372.8 million and up 54.9% from year-ago third-quarter revenue of $290.2 million. Cypress recorded GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income of $29.8 million in the 2007 third quarter, or diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.18. That compares with last quarter's diluted earnings per share of $2.29, which included a gain from the sale of SunPower shares. GAAP diluted earnings per share in the year-ago third quarter was $0.06. Non-GAAP2 net income for the 2007 third quarter--earnings that exclude stock-based compensation, acquisition-related charges and other special charges and credits--totaled $44.9 million, or diluted earnings per share of $0.26. That compares with non-GAAP2 diluted earnings per share of $0.16 for both the prior quarter and the year-ago third quarter. 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 said, "Third-quarter revenue significantly exceeded our guidance due to the continued strong growth of our SunPower division and better-than-expected, seasonal semiconductor1 revenue--driven by CCD CCD in full charge-coupled device Semiconductor device in which the individual semiconductor components are connected so that the electrical charge at the output of one device provides the input to the next device. with record quarterly PSoC sales. Earnings leverage in the semiconductor1 group increased during the quarter in line with our projections, based in large part on our effort to refocus Cypress on programmable solutions and the continued success of our flexible manufacturing initiative. Revenue from programmable products reached 50% of our total semiconductor revenue for the first time in Q3, up from 43% in the second quarter." Rodgers continued, "Semiconductor1 direct margins remained strong, and ASPs increased sequentially for the seventh consecutive quarter, due to continued growth in our higher-margin, proprietary, programmable products. Our new product introductions remain robust. Cypress's PSoC and West Bridge[TM] devices continue to achieve significant new designs, while SunPower has continued to take market share from its competitors. Our semiconductor1 business and SunPower division are expected to achieve fiscal 2007 revenues greater than current First Call estimates. Assuming we do not encounter any major macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. disruptions, we are well positioned to sustain substantial revenue gains into 2008. Coupled with the focused operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. and capital model and our flexible-manufacturing strategy, we expect to deliver increasing long-term profits and cash-flow." Additional third-quarter data and comparisons relevant to Cypress's business units are presented below: BUSINESS REVIEW + On a GAAP basis, third-quarter consolidated gross margin was 31.6%. Semiconductor1 gross margin for the third quarter was 45.4%, up 2.1 percentage points from the previous quarter. + Non-GAAP2 consolidated gross margin for the third quarter was 33.2%, down 1.5 percentage points from the previous quarter due to a higher mix of SunPower revenue. + Non-GAAP2 semiconductor1 margin for the third quarter was 47.2%, up 2.3 percentage points from 44.9% in the previous quarter. Semiconductor1 gross margin improved significantly in Q3 due to a favorable product mix and higher planned factory output. Semiconductor1 net inventory decreased in the quarter. + Consolidated GAAP diluted 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. of $0.18 increased 200.0% year-on-year. Consolidated non-GAAP2 diluted EPS of $0.26 increased 62.5% sequentially and 62.5% year-on-year. + Semiconductor1 book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can ended the quarter at 1.01, matching Q2. [TABLE OMITTED] THIRD-QUARTER 2007 HIGHLIGHTS + Cypress grew its PSoC customer base to nearly 5,300 customers, a gain of 13.9% quarter-on-quarter and 83.9% percent year-on-year, far exceeding its original plan. Cypress's global PSoC customers include Hewlett-Packard, Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , LG Electronics, Lenovo, Nintendo and Pentax, along with a host of small- and mid-sized companies. + Cypress shipped its 250 millionth PSoC([R]) mixed-signal array, driven by new design wins, which have increased 27 percent year on year and reached a record again in Q3. New PSoC design wins for the quarter included the MERIAN Scout Navigator GPS Personal Travel Assistant by iPublish GmbH, which is using Cypress's CapSense[TM] touchscreen controller solution, and Haier Group's CapSense-enabled touch-sensing washing machines and water heaters. + Cypress introduced the PSoC FirstTouch[TM] Embedded Design Starter Kit, a $29.95 USB-compatible, thumbdrive solution that enables customers to develop and test applications right out of the box, including CapSense touch-sensing and temperature, light and proximity-sensing. The FirstTouch Kit represents the fastest, easiest, most cost-effective way for designers to begin working with PSoC hardware and software. + Cypress introduced PSoC Express[TM] 3.0, the latest generation of its revolutionary visual embedded system Any electronic system that uses a CPU chip, but that is not a general-purpose workstation, desktop or laptop computer. Such systems generally use microprocessors, or they may use custom-designed chips or both. design software. PSoC Express software lets engineers create custom designs without writing a single line of complex microcontroller A single chip that contains the processor (the CPU), non-volatile memory for the program (ROM or flash), volatile memory for input and output (RAM), a clock and an I/O control unit. code. The latest version automates code generation and provides real-time design monitoring and tuning, accelerating the design process. PSoC Express 3.0 is an integral part of Cypress's FirstTouch kit. + Cypress integrated Philips Lumiled's Luxeon([R]) K2 power LED device specifications into the content library of its PSoC Express 3.0 software. The software, part of Cypress's EZ-Color[TM] high-brightness (HB) LED solution, enables the creation of even the most challenging lighting designs with an intuitive, easy-to-use drag-and-drop interface. With their superior efficiency, color control and low power consumption, high-brightness LEDs are fast replacing conventional lighting solutions. + Cypress shipped its 20 millionth 2.4-GHz wireless controller. Sales were driven by Cypress's second-generation WirelessUSB[TM] LP and PRoC[TM] LP devices, which have secured more than 200 design wins in low-power wireless applications over the past year. + SunPower announced the opening of its second manufacturing plant in the Philippines. The 463,000-square-foot facility is twice the size of the company's first plant, with a projected capacity of 330 MW. It will produce SunPower's 22%-efficient, second-generation solar cells. + SunPower signed a 10-year silicon supply agreement with Hemlock hemlock, any tree of the genus Tsuga, coniferous evergreens of the family Pinaceae (pine family) native to North America and Asia. The common hemlock of E North America is T. Semiconductor Corp. Hemlock will begin delivering silicon to SunPower in 2010. The material is expected to support more than 2 gigawatts (GW) of SunPower silicon solar cell production. SunPower also signed two supply agreements with NorSun AS to support up to 2 GW of solar cell production. + SunPower launched a program to install solar-electric power systems at 28 Macy's department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. in California. The company also announced an agreement with Agilent Technologies This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. to install a one-megawatt solar-electric system at its Santa Rosa Santa Rosa, city, Argentina Santa Rosa, city (1991 pop. 80,629), capital of La Pampa prov., central Argentina. It is a modern city and road junction surrounded by a rich agricultural and cattle-raising area. , Calif., campus. + Cypress sampled its first nonvolatile SRAM See static RAM. SRAM - static random-access memory (nvSRAM), a 4-Mbit device. This nvSRAM technology is the industry's only CMOS-based, battery-free, nonvolatile SRAM solution. The device combines Cypress's 15-ns, high-speed SRAM technology with high-endurance SONOS SONOS Silicon-Oxide-Nitride-Oxide-Silicon (semiconductor memory technology) SONOS Semiconductor Oxide Nitride Oxide Semiconductor (memory) (Silicon Oxide Nitride Oxide Silicon) nonvolatile Flash, and is the first product manufactured on the company's 0.13-micron SONOS process. The nvSRAM is used in high-value, failsafe applications. + NetLogic Microsystems acquired Cypress's network search engine products targeting the high-volume desktop switching market. The transaction was valued at $12.0 million plus inventory costs. Cypress sold its NSE NSE - Network Software Environment: a proprietary CASE framework from Sun Microsystems. standard products business to NetLogic Microsystems in early 2006. ABOUT CYPRESS Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value. Cypress offerings include the PSoC Programmable System-on-Chip, 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. controllers, general-purpose programmable clocks, and memories. Cypress also offers wired and wireless connectivity solutions ranging from its WirelessUSB radio system-on-chip, to West Bridge and EZ-USB FX2LP controllers that enhance connectivity and performance in multimedia handsets. Cypress serves numerous markets including consumer, computation, 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. , automotive, industrial, and solar power. Cypress trades on the NYSE under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors CY. Visit Cypress online at www.cypress.com. FORWARD-LOOKING STATEMENTS Statements herein that are not historical facts and that refer to Cypress or its subsidiaries' plans and expectations for the fourth quarter of 2007, 2008 and the future are forward-looking statements made pursuant to 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. We use words such as "believe," "expect," "future," "plan," "intend" and similar expressions to identify such forward-looking statements that include, but are not limited to, statements related to the growth of our products, especially our proprietary products such as PSoC and West Bridge, our improved factory utilization, the success of our flexible manufacturing initiative to provide factory capacity, expected revenue growth, the demand and growth in the markets we serve, the stability of our ASPs, the effect of our divestitures, our growth, bookings, profit and revenue, and the success of SunPower's current and future projects. Such statements reflect our current expectations, which are based on information and data available to our management as of the date of this release. Our actual results may differ materially due a variety of uncertainties and risk factors, including but not limited to the business and economic conditions and growth trends in the semiconductor and solar power industries, the state of the global economy, the actions of our competitors, our ability to develop and roll-out new products, our ability to execute on our flexible manufacturing plan and maintain lower 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. , whether our products perform as expected, whether the demand for our PSoC and West Bridge products is fully realized, customer acceptance of Cypress and its subsidiaries' products, factory utilization, whether the expected growth in the markets we serve materializes, seasonality in the markets we serve, our ability to maintain and improve our gross margins and realize our bookings, the financial performance of our subsidiaries, and other risks described in our filings, as well as SunPower's filings, with the Securities and Exchange Commission. We assume no responsibility to update any such forward-looking statements. Cypress, the Cypress logo, and PSoC are registered trademarks of Cypress Semiconductor Corporation. PSoC Express, PRoC, Programmable System-on-Chip, FirstTouch, EZ-USB FX2LP, WirelessUSB, EZ-Color, CapSense, West Bridge and Antioch are trademarks of Cypress Semiconductor Corporation. SunPower is a registered trademark of SunPower Corporation. Luxeon is a registered trademark of Philips Lumileds. All other trademarks or registered trademarks are the property of their respective owners. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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