CY » Topics » Cypres s Reports Fourth-Quarter and Record Year-End 2007 Results

This excerpt taken from the CY 8-K filed Jan 24, 2008.

Cypress Reports Fourth-Quarter and Record Year-End 2007 Results


·                  Record annual revenue of $1.60 billion, up 46.2% year-on-year.


·                  Q4 revenue of $431.2 million, 0.5% below median guidance but up 50.3% year-on-year.


·                  Fiscal year, fully diluted GAAP EPS increased $2.07 (or 828.0%) year-on-year; non-GAAP(1) EPS grew $0.31 (or 60.8%) year-on-year.


·                  PSoC® customer base expanded to 6,301, up from 3,371 customers year-on-year.


SAN JOSE, Calif., January 24, 2008 — Cypress Semiconductor Corp. (NYSE: CY) today announced that revenue for the 2007 fourth quarter was $431.2 million, down 4.1% from $449.5 million for the prior quarter, and up 50.3% from $287.0 million for the year-ago period.


Cypress recorded GAAP net income of $8.0 million in the 2007 fourth quarter, or diluted earnings per share of $0.04. That compares with last quarter’s diluted earnings per share of $0.18. GAAP diluted earnings per share in the year-ago fourth quarter was $0.09.


Non-GAAP(1) net income for the 2007 fourth quarter—earnings that exclude stock-based compensation, acquisition-related charges and other special charges and credits—totaled $46.2 million, or diluted earnings per share of $0.24. That compares with non-GAAP(1) diluted earnings per share of $0.26 for the prior quarter and $0.15 for the year-ago fourth quarter.



For the fiscal year 2007, Cypress posted total revenue of $1.60 billion, an increase of 46.2% from fiscal year 2006 revenue of $1.09 billion. On a GAAP basis, Cypress’s fiscal year 2007 diluted earnings per share was $2.32, compared with diluted earnings per share of $0.25 in 2006. On a non-GAAP(1) basis, Cypress’s fiscal year 2007 diluted earnings per share was $0.82, compared with diluted earnings per share of $0.51 in 2006—an increase of 60.8%.


Cypress President and CEO T.J. Rodgers commented, “The GAAP 2007 earnings figure overstates our true operating earnings by a factor of three due to one-time events. Nonetheless, we are very happy with genuine progress reflected in our non-GAAP(1) earnings of $0.82, up 60.8% for the year. Continued strong progress with strategic initiatives, such as our effort to refocus on programmable products and our flexible manufacturing initiative, combined with exceptional results from SunPower, resulted in record annual revenue of $1.60 billion and a solid 104.4% increase in non-GAAP(1) operating income, compared to 2006. Our stock price increased 118.1% in fiscal 2007, exceeding all major indexes by a wide margin for the third consecutive year.


“Cypress remained nicely profitable in a softening semiconductor market in the fourth quarter with non-GAAP(1) semiconductor(2) gross margin reaching 48.8%. For the year, we claimed a record 4,755 major design wins, driven in large part by our high-margin programmable solutions and the strongest semiconductor product portfolio in our history. Our balance sheet contains not only $1.56 billion in cash and equivalents, but a 90% controlling voting stake in SunPower. It will provide many opportunities for us to drive shareholder value in 2008 and beyond.


“An industrywide consumer-segment slowdown late in the fourth quarter caused us to report an EPS of $0.24, just short of our EPS guidance range of $0.26 to $0.28. We expect normal seasonal, first-quarter softness in our core semiconductor business to be exacerbated by continued macroeconomic uncertainty. Nevertheless, we expect to achieve record consolidated revenue again in 2008.



“Our financial goals are simple: To grow semiconductor revenue faster than the overall market, and to increase profit at a rate far greater than sales.”


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