• Fourth quarter GAAP and non-GAAP revenue was $530.2 million
• Fourth quarter GAAP margin was 38.1% and non-GAAP margin was 40.1% 
• Enhanced go-to-market strategy to align to high-growth markets, resulting in change in corporate structure from four divisions to two
• Wireless connectivity solutions acquired from Broadcom increased revenue by 15.6% sequentially
• Realized annualized synergies of $188.5 million exceeding the plan at the time of Spansion merger

Cypress Semiconductor Corporation (NASDAQ: CY) today announced its fourth quarter and fiscal year 2016 results.

"We're pleased to report a strong fourth quarter and full year for Cypress in 2016," said Hassane El-Khoury, Cypress president and chief executive officer. "We grew the company, improved our gross margin, exceeded our expectations in terms of our plan for cost synergies from the Spansion merger and changed the strategic direction of the company, fully implementing Cypress 3.0, our blueprint for selling complete embedded solutions into markets growing faster than the broader semiconductor industry.

"For the year, our GAAP revenue of $1.92 billion and non-GAAP revenue of $1.94 billion reflect 20% and 19% growth, respectively," El-Khoury continued. "We continue to see strong demand for our expanding portfolio of solutions for embedded systems, and our IoT business, which cuts across all of our target markets, has exceeded our expectations.

"We have now fully aligned our go-to-market strategy with our target markets – automotive, industrial and consumer – and reorganized our reporting structure to two divisions to improve our efficiency. In 2017 we expect to grow faster than the overall semiconductor market, driven by automotive, connectivity and USB-C."

Revenue and earnings for the quarter are given below, compared with those of the prior quarter:

(In thousands, except per-share data)