Cypress Reports Fourth-Quarter and Year-End 2010 Results | Cypress Semiconductor
Cypress Reports Fourth-Quarter and Year-End 2010 Results
CLICK HERE TO DOWNLOAD Q410 AND YEAR-END FINANCIAL TABLES
CLICK HERE TO DOWNLOAD Q410 AND YEAR-END FINANCIAL TABLES
- TrueTouch™ and PSoC® revenue exceeded expectations and set new records
- Handset revenue increased 27% sequentially
- Fiscal 2010 revenue increased 32% year-over-year
- Cash flow from operations in 2010 totaled $270 million, up 202% from 2009
- Q1 revenue expected to outperform normal negative seasonality
SAN JOSE, Calif., January 27, 2011 — Cypress Semiconductor Corp. (NASDAQ: CY) today announced that non-GAAP1 revenue for the 2010 fourth quarter was $226.6 million, down 2.3% from $231.9 million for the prior quarter, and up 16.8% from $194.0 million for the year-ago period. GAAP revenue for the 2010 fourth quarter—which included a reduction of $6.3 million due to the accounting treatment for settling a long-standing civil antitrust lawsuit on SRAMs—was $220.3 million.
Non-GAAP1 net income for the 2010 fourth quarter—excluding stock-based compensation, acquisition-related charges, the SRAM legal settlement, restructuring and other special charges and credits—totaled $50.6 million, or diluted earnings per share of $0.25. That compares with non-GAAP1 diluted earnings per share of $0.28 for the prior quarter and diluted net earnings per share of $0.16 for the year-ago fourth quarter.
For the fiscal year 2010,
On a non-GAAP1 basis,
Cypress President and CEO T.J. Rodgers said, “
“It was a very good year for
“Bookings for our PSoC-powered touchscreen controllers and optical finger navigation businesses extend into Q2,” Rodgers said. “Our Q4 book-to-bill was 1.35, due to strong new design wins and bookings for our touchscreen products. We also expect Q1 revenue to exceed normal negative seasonal trends.”
Non-GAAP1 consolidated gross margin for the fourth quarter was 59.1%, down 1.1 percentage points from the previous quarter, as expected, due to product mix.
Fourth-quarter net inventory increased $12.9 million quarter-on-quarter, as we increased our die bank profiles to support significant new designs and higher than previously expected revenues. Net inventory increased 11.6% on a year-over-year basis.
Cash and investments totaled $458.0 million, or $2.69 per basic share and did not include $43.9 million invested in our yield enhancement program which was invested over the end of the quarter and matured in mid-January, returning $47.0 million in cash.
The company repurchased 1.9 million shares at an average cost of $17.40 per share during Q4. The amount remaining at the end of Q4 on the stock repurchase program is $567 million.
Additional fourth-quarter and annual data and comparisons relevant to
FOURTH-QUARTER 2010 HIGHLIGHTS
Our TrueTouch touchscreen solutions—which allow the ability to read 10 touches at once—continued to register robust design wins and set new design win records during the quarter: Samsung Electronics selected TrueTouch to drive its new Wave 2 and Galaxy 5 smartphones. Acer used TrueTouch its dual-screen ICONIA notebook computer, the industry’s first 10-finger touchscreen based on a multichip solution for screens up to 14 inches. Tokyo-based KDDI designed TrueTouch into the popular, new IS03 Android smartphone manufactured by Sharp Communication Systems Group. HTC selected TrueTouch for its HTC 7 Surround and HTC 7 Mozart mobile smartphones, which are based on the Windows® Phone 7 Series recently introduced by Microsoft.
The Acer ICONIA, a notebook computer with dual 14-inch touchscreens powered by
PSoC played a pivotal role in the recent rescue of 33 Chilean miners. A PSoC-enabled camera, which provided the first images of the trapped miners, was designed by
Epson selected Cypress’s CapSense® capacitive touch solution to control buttons and LED prompts on four new printer models, including the Artisan 725, Epson Stylus Photo PX720WD, Epson Stylus Photo TX720WD, and Epson Stylus Photo PX660.
Cypress announced that Macy’s is replacing about 117,000 traditional incandescent light bulbs in 86 stores nationwide with Cypress-powered LED lamps from lighting designer MSi that use about 73 percent less energy.
AgigA Tech announced that its AGIGARAM™ Non-Volatile System (NVS) has been named the Most Innovative New Product of 2010 in the Hardware and General Technology category at the 23rd CONNECT Awards hosted by CONNECT, a San Diego-based nonprofit dedicated to creating and sustaining innovative technology.
Statements herein that are not historical facts and that refer to Cypress or its subsidiaries’ plans and expectations for first quarter of fiscal year 2011 and the future are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. We may 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 strong profits and cash flow we expect from our SRAM products, our future revenue expectations based on our touchscreen business, the intent and timing of our manufacturing expansion, the strength and growth of our proprietary and programmable products, including TrueTouch and PSoC families, and our expectations regarding product and design wins. 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 state of and future of the global economy, business conditions and growth trends in the semiconductor market, our ability to enter into new markets with our portfolio of products, whether our products perform as expected, whether the demand for our proprietary and programmable products, including especially our TrueTouch and PSoC products, is fully realized, whether our product and design wins result in increased sales, customer acceptance of Cypress and its subsidiaries’ products, seasonality in the markets we serve, our ability to achieve lower operating expenses and maintain a solid balance sheet, our ability to manage our factory utilization and expansion, the strength or softness of the markets we serve and whether those markets achieve expected growth, the financial performance of our subsidiaries and Emerging Technology Division, our ability to outgrow the market in revenue once the economy recovers and other risks described in our filings with the Securities and Exchange Commission. We assume no responsibility to update any such forward-looking statements.
Cypress, the Cypress logo, PSoC, CapSense, PowerPSoC, West Bridge and QDR are registered trademarks of Cypress Semiconductor Corp. Programmable System-on-Chip, TrueTouch, CapSense, RadStop, Cypress Developer Community, QDRII, and Quad Data Rate are trademarks of Cypress Semiconductor Corp. AGIGARAM is a trademark of AgigA Tech Corp. Windows is a registered trademark of Microsoft Corp. All other trademarks or registered trademarks are the property of their respective owners.