Cypress Reports Profitable Q398 Revenue $126 Million, 1-Cent EPS.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)--Oct. 13, 1998--Cypress Semiconductor Corporation (NYSE NYSE See: New York Stock Exchange :CY) today reported that revenue for the third quarter ended Sept. 28, 1998, was $126.0 million, up 5.3% from last quarter's revenue of $119.7 million and down 13.8% from the year-ago quarter's revenue of $146.1 million. Earnings improved to $0.5 million resulting in a basic and 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 (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 1 cent compared with the loss of 7 cents last quarter. The year-ago quarter's EPS was 8 cents. Earnings in the third quarter included a tax benefit of $3.0 million primarily resulting from a change in estimate for additional R&D credits. 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 stated, "We're pleased to report increased sales and our return to profitability. Though difficulties continue to impact the industry, the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). activities initiated earlier in the year continue to improve our cost structure, with the Fab 2 and Fab 3 initiatives completed and the rest of our restructuring initiatives on schedule. We have changed Cypress to be able to make money during the bottom of this period of worldwide semiconductor oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies ." The company's emphasis on new products also contributed in the quarter. The company realized revenue on nine new products including: -0-
-- The Ultra37000(TM) CPLDs, a new family of programmable logic
devices with industry-leading performance, flexibility for
designers to make logic changes without timing or pin-assignment
changes, and high density up to 512 macrocells.
-- A 1-Mbit dual-port SRAM that offers industry-leading performance
at 100 MHz, the largest density of any dual-port on the market.
-- A family of 12 high-speed synchronous SRAMs aimed at the
networking and digital signal processing (DSP) markets, offering
speeds up to 166 MHz and a broad range of configuration options.
The following significant events occurred during the quarter:
-- At the July 23, 1998, regular meeting of the board of directors,
Eric Benhamou, chairman and CEO of 3Com Corporation, was elected
as chairman of the board of Cypress, succeeding Pierre Lamond,
who stepped down from the board after 14 years of service as
chairman.
-- On Sept. 1, 1998, the board of directors increased the company's
stock repurchase program from 4 million to 14 million shares. As
of Oct. 12, 1998, the company had purchased 7.8 million shares
and has entered into options contracts at varying strike prices
and maturity dates for 5.6 million shares. In addition, the
company has retired $15 million of its convertible debentures.
-- On Sept. 2, 1998, Al Shugart, a founder of the world's largest
disk drive company, Seagate Technology Inc., and a 45-year
veteran entrepreneur in the technology industry, was nominated
and unanimously elected to the Cypress board.
-0- T.J. Rodgers concluded, "We expect to close the 1998 fiscal year on a high note with both sales and profits up from those of this quarter." 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 See telecom company. worldwide. The company's product line includes 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-speed PROMs, and specialty memories; programmable logic devices See PLD. (PLDs); 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 timing devices and 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. 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 World Wide Web 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. " 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 benefits from restructuring initiatives, outlook for the rest of 1998, and Cypress's business 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, market-acceptance risks, the effect of global 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 the quarterly report on Form 10-Q Form 10-Q See 10-Q. . -0-
Cypress Semiconductor Corporation
Consolidated Balance Sheet
(In thousands, except per share data and share amounts)
(Unaudited)
Sept. 28, Dec. 29,
1998 1997
ASSETS
Current assets:
Cash and short-term investments $185,573 $201,561
Accounts receivable 63,712 67,854
Inventories 58,063 76,925
Other current assets 43,937 51,740
Total current assets 351,285 398,080
Property and equipment, net 364,371 442,661
Other assets 105,219 115,529
Total assets $820,875 $956,270
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $57,350 $60,857
Accrued liabilities 37,668 21,472
Deferred income on
sales to distributors 11,696 9,636
Income taxes payable -- 1,088
Total current liabilities 106,714 93,053
Convertible subordinated note 170,000 175,000
Other long-term debt 6,736 8,671
Deferred income taxes 36,070 36,070
Total liabilities 319,520 312,794
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 share authorized;
98,147,000 issued; 85,987,000 and
90,684,000 outstanding, net of
treasury stock repurchases 274,867 309,566
Retained earnings 226,488 333,910
Total stockholders' equity 501,355 643,476
Total liabilities and
stockholders' equity $820,875 $956,270
Cypress Semiconductor Corporation
Consolidated Statement of Operations
(In thousands, except per share data )
Three Months Ended Nine Months Ended
(Unaudited) (Unaudited)
Sept. 28, Sept. 29, June 29, Sept. 28, Sept. 29,
1998 1997 1998 1998 1997
Revenues $ 126,048 $ 146,081 $ 119,675 $ 362,676 $ 410,222
Costs and
expenses:
Costs of
revenues 86,406 93,345 83,393 284,181 262,381
Research and
development 24,168 24,560 24,463 73,119 70,009
Marketing,
general and
administrative 20,152 18,977 19,880 62,228 55,676
Restructuring
costs -- -- -- 65,099 --
Total operating
costs 130,726 136,882 127,736 484,627 388,066
Operating
income (loss) (4,678) 9,199 (8,061) (121,951) 22,156
Interest
expense (2,688) (948) (2,677) (8,207) (4,043)
Interest and
other income 4,924 2,756 3,275 8,301 9,821
Income (loss)
before income
taxes (2,442) 11,007 (7,463) (121,857) 27,934
(Provision)
benefit for
income taxes 2,955 (3,797) 717 14,435 (9,623)
Net income
(loss) $ 513 $ 7,210 $ (6,746) $(107,422) $ 18,311
Net income
(loss) per
share:
Basic $ 0.01 $ 0.08 $ (0.07) $ (1.19) $ 0.21
Diluted $ 0.01 $ 0.08 $ (0.07) $ (1.19) $ 0.20
Weighted average
shares of common
stock and common
stock equivalents:
Basic 90,161 90,054 91,036 90,755 86,887
Diluted 92,183 96,084 91,036 90,755 95,038
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