Cypress Reports Record Earnings For First Quarter 1996.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 16, 1996--Cypress Semiconductor Corp. (NYSE NYSE See: New York Stock Exchange : CY) today reported record earnings for the first quarter ended April 1, 1996. Revenue for the first quarter of 1996 was $170.2 million, up 38 percent from the year-ago quarter revenue of $123.4 million and down 4 percent from the prior-quarter revenue of $177.3 million. Earnings for the first quarter of 1996 were a record of $0.39, per share fully diluted, up 63 percent from the year-ago quarter earnings of $0.24 (a), per share, and up 3 percent from the prior-quarter earnings of $0.38, 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, "Our gross margin improved from 54.6% last quarter to 54.8%, despite reduced selling prices for 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. . "Our margins and earnings improved as a result of: 1) the impact of our aggressive manufacturing cost reduction programs, 2) a reduction in overhead costs overhead costs see fixed costs. , 3) the elimination of the quarter's profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of , as mandated by our profit sharing plan, whenever there is no sequential revenue growth, and 4) the reduction in share count attributable to our recently completed $70-million stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program." Rodgers concluded, "We are entering the second quarter with more than 77% of it booked, and a backlog of $170 million. We expect the June quarter to be challenging, but we expect to win." 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. 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 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 See PLD. (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 408/943-2798 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. . "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 which 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. " that involve risks and uncertainties, including, but not limited to, market acceptance risks, the effect of economic conditions, 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 quarterly report in Form 10K. -0- (a) Excluding a one-time, pre-tax charge of $17.8 million for a TI lawsuit, which was later reversed in Cypress's favor.
Cypress Semiconductor Corporation
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
Apr. 1, Jan. 1,
1996 1996
ASSETS
Current assets:
Cash and short-term investments $111,073 $161,618
Accounts receivable 101,536 108,587
Other receivables 11,097 8,335
Inventories 36,858 28,978
Other current assets 47,297 44,119
Total current assets 307,861 351,637
Property and equipment, net 387,456 336,593
Other assets 68,375 62,498
-------- --------
$763,692 $750,728
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $86,016 $82,315
Accrued liabilities 40,735 46,800
Deferred income on sales
to distributors 14,263 13,190
Income taxes payable 26,828 18,752
Total current liabilities 167,842 161,057
Convertible subordinated note 96,452 95,879
Other long-term debt 5,881 6,040
Deferred income taxes 15,653 15,653
Total liabilities 285,828 278,629
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;
89,779,000 and 88,924,000
issued; 79,519,000 and
81,501,000 outstanding 181,125 209,637
Retained earnings 296,739 262,462
Total stockholders' equity 477,864 472,099
-------- --------
$763,692 $750,728
Cypress Semiconductor Corporation
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended
-------------------------------------------
(Unaudited)
Apr. 1, Apr. 3, Jan. 1,
1996 1995 1996
--------------------------------------------
Revenues $170,171 $123,365 $177,279 Cost and expenses: Cost of revenues 76,861 60,834 80,567 Research and development 21,416 15,671 21,300 Selling, general and administrative 18,140 15,291 20,568 Other non-recurring costs -- 17,800 --
Total operation costs
and expenses 116,417 109,596 122,435
Operating income 53,754 13,769 54,844 Interest expense (1,647) (1,733) (1,530) Interest income & other 1,873 2,303 2,677 Income before income taxes 53,980 14,339 55,991 Provision for income taxes (19,703) (5,234) (20,441) Net income $34,277 $ 9,105 $35,550 Net income per share: Primary $0.41 $0.11 $0.40 Fully Diluted $0.39 $0.11 $0.38 Weighted average shares of common stock and common stock equivalents: Primary 83,418 87,223 88,926 Fully Diluted 91,358 95,607 96,860 CONTACT: Cypress Semiconductor, San Jose Analyst Contact: Manny Manny may refer to: In nobility:
or Press Contact: John Hamburger, 408/943-2902 |
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