** Other items include but are not limited to deferred tax expense not affecting income tax payable.
|
Table J: Non-GAAP net income |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| Q4'18 | Q3'18 | Q4'17 | Q4'18 | Q4'17 | ||||||||||||||||||||
| GAAP net income (loss) attributable to Cypress | $ | 267,114 | $ | 50,695 | $ | (34,014 | ) | $ | 354,592 | $ | (80,915 | ) | ||||||||||||
| Impact of reconciling items on operating income (see Table G) | 145,364 | 91,146 | 79,204 | 402,895 | 313,728 | |||||||||||||||||||
| Impact of reconciling items on interest and other expense, net (see Table A, B, C, D, E) | 56,302 | 8,045 | 64,521 | 82,367 | 91,327 | |||||||||||||||||||
| Impact of reconciling items on income tax provision (see Table I) | (337,790 | ) | 2,839 | (5,027 | ) | (330,879 | ) | 117 | ||||||||||||||||
| Non-GAAP net income | $ | 130,990 | $ | 152,725 | $ | 104,684 | $ | 508,975 | $ | 324,257 | ||||||||||||||
|
Table K: Weighted-average shares, diluted |
Three Months Ended | |||||||||||||||||
| Q4'18 | Q3'18 | Q4'17 | ||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||
| Weighted-average common shares outstanding, basic | 361,616 | 361,616 | 361,631 | 361,631 | 343,011 | 343,011 | ||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||
| Stock options, unvested restricted stock and other | 6,482 | 11,709 | 7,096 | 12,468 | — | 14,003 | ||||||||||||
| Convertible notes | 1,540 | 1,540 | 5,539 | 3,234 | — | 12,110 | ||||||||||||
| Weighted-average common shares outstanding, diluted | 369,638 | 374,865 | 374,266 | 377,333 | 343,011 | 369,124 | ||||||||||||
|
Table L: Weighted-average shares, diluted |
Twelve Months Ended | |||||||||||
| Q4'18 | Q4'17 | |||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||
| Weighted-average common shares outstanding, basic | 359,324 | 359,324 | 333,451 | 333,451 | ||||||||
| Effect of dilutive securities: | ||||||||||||
| Stock options, unvested restricted stock and other | 7,754 | 13,319 | — | 14,838 | ||||||||
| Convertible notes | 5,100 | 2,705 | — | 16,851 | ||||||||
| Weighted-average common shares outstanding, diluted | 372,178 | 375,348 | 333,451 | 365,140 | ||||||||
|
Table M: Earnings (loss) per share |
Three Months Ended | ||||||||||||||||||||||||
| Q4'18 | Q3'18 | Q4'17 | |||||||||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||||||||
| Net income (loss) (see Table J) [i] | $ | 267,114 | $ | 130,990 | $ | 50,695 | $ | 152,725 | $ | (34,014 | ) | $ | 104,684 | ||||||||||||
| Weighted-average common shares outstanding, diluted (see Table K) [ii] | 369,638 | 374,865 | 374,266 | 377,333 | 343,011 | 369,124 | |||||||||||||||||||
| Earnings per share - diluted [i/ii] | $ | 0.72 | $ | 0.35 | $ | 0.14 | $ | 0.40 | $ | (0.10 | ) | $ | 0.28 | ||||||||||||
|
Table N: Earnings (loss) per share |
Twelve Months Ended | ||||||||||||||||
| Q4'18 | Q4'17 | ||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||
| Net income (loss) (see Table J) [i] | $ | 354,592 | $ | 508,975 | $ | (80,915 | ) | $ | 324,257 | ||||||||
| Weighted-average common shares outstanding, diluted (see Table L) [ii] | 372,178 | 375,348 | 333,451 | 365,140 | |||||||||||||
| Earnings (loss) per share - diluted [i/ii] | $ | 0.95 | $ | 1.36 | $ | (0.24 | ) | $ | 0.89 | ||||||||
|
Table O: Adjusted EBITDA |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| Q4'18 | Q3'18 | Q4'17 | Q4'18 | Q4'17 | |||||||||||||||||||||
| GAAP net income (loss) attributable to Cypress | $ | 267,114 | $ | 50,695 | $ | (34,014 | ) | $ | 354,592 | $ | (80,915 | ) | |||||||||||||
| Interest and other expense, net | (20,489 | ) | (15,059 | ) | (21,563 | ) | (67,845 | ) | (75,947 | ) | |||||||||||||||
| Income tax provision | 331,447 | (5,618 | ) | 2,773 | 315,618 | (11,157 | ) | ||||||||||||||||||
| Share in net loss of and impairment of equity method investees | (46,497 | ) | (3,657 | ) | (56,930 | ) | (57,370 | ) | (71,772 | ) | |||||||||||||||
| Net gain (loss) attributable to non-controlling interests | (87 | ) | (52 | ) | 12 | (239 | ) | (132 | ) | ||||||||||||||||
| GAAP operating income | $ | 2,740 | $ | 75,081 | $ | 41,694 | $ | 164,428 | $ | 78,093 | |||||||||||||||
| Impact of reconciling items on operating income (see Table G) | 145,364 | 91,146 | 79,204 | 402,895 | 313,728 | ||||||||||||||||||||
| Non-GAAP operating income | $ | 148,104 | $ | 166,227 | $ | 120,898 | $ | 567,323 | $ | 391,821 | |||||||||||||||
| Depreciation | 16,527 | 16,393 | 18,701 | 66,299 | 67,578 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 164,631 | $ | 182,620 | $ | 139,599 | $ | 633,622 | $ | 459,399 | |||||||||||||||
|
Table P: Free cash flow |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| Q4'18 | Q3'18 | Q4'17 | Q4'18 | Q4'17 | |||||||||||||||||||||
| GAAP net cash provided by operating activities | $ | 142,215 | $ | 187,073 | $ | 201,541 | $ | 471,700 | $ | 403,487 | |||||||||||||||
| Acquisition of property, plant and equipment, net | (5,069 | ) | (15,448 | ) | (7,790 | ) | (63,130 | ) | (51,944 | ) | |||||||||||||||
| Free cash flow | $ | 137,146 | $ | 171,625 | $ | 193,751 | $ | 408,570 | $ | 351,543 | |||||||||||||||
| CYPRESS SEMICONDUCTOR CORPORATION | |||||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL DATA | |||||||||||||||||||||||||
| (In thousands except financial ratios and per share amounts) | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
| December 30, | September 30, | December 31, | December 30, | December 31, | |||||||||||||||||||||
| 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||
|
Selected Cash Flow Data (Preliminary): |
|||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 142,215 | $ | 187,073 | $ | 201,541 | $ | 471,700 | $ | 403,487 | |||||||||||||||
| Net cash (used in) provided by investing activities | $ | (5,988 | ) | $ | (22,316 | ) | $ | (6,036 | ) | $ | (49,690 | ) | $ | (14,429 | ) | ||||||||||
| Net cash (used in) provided by financing activities | $ | (55,252 | ) | $ | (72,730 | ) | $ | (175,472 | ) | $ | (287,886 | ) | $ | (357,634 | ) | ||||||||||
|
Other Supplemental Data (Preliminary): |
|||||||||||||||||||||||||
| Capital expenditures, net | $ | 5,069 | $ | 15,448 | $ | 7,790 | $ | 63,130 | $ | 51,944 | |||||||||||||||
| Depreciation | $ | 16,527 | $ | 16,393 | $ | 18,701 | $ | 66,299 | $ | 67,578 | |||||||||||||||
| Payment of dividend | $ | 39,772 | $ | 39,447 | $ | 36,670 | $ | 157,364 | $ | 144,749 | |||||||||||||||
| Dividend paid per share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.44 | $ | 0.44 | |||||||||||||||
| Total debt (principal amount) | $ | 935,838 | $ | 936,518 | $ | 1,061,414 | $ | 935,838 | $ | 1,061,414 | |||||||||||||||
| Net leverage ratio¹ | 1.03 | 1.20 | 1.98 | 1.03 | 1.98 | ||||||||||||||||||||
| Cash Income Tax | $ | 6,343 | $ | 2,779 | $ | 2,254 | $ | 15,261 | $ | 11,040 | |||||||||||||||
| 1. | Total debt (principal amount) less cash / Last 12 months Adjusted EBITDA |
| CYPRESS SEMICONDUCTOR CORPORATION | ||||||||||||||||||
| RECONCILIATION OF GAAP FORWARDING LOOKING ESTIMATES TO NON-GAAP FORWARD LOOKING ESTIMATES | ||||||||||||||||||
| Q1'19 Non- | ||||||||||||||||||
|
Q1'19 GAAP |
GAAP estimate | |||||||||||||||||
| estimate ¹(A) | Adjustments (B) | (C)=(A)+(B) | ||||||||||||||||
|
Stock-based |
||||||||||||||||||
|
Amortization of |
compensation |
|||||||||||||||||
|
intangibles |
expense |
Other items |
||||||||||||||||
| Gross Margin | 36.0% - 37.0% | 8.5% - 9.0% | 0.7% | 0.3% | 46.0% - 46.5% | |||||||||||||
| Diluted earnings per share | $0.00 to $0.04 | $ | 0.14 | $ | 0.05 | $ | 0.03 | $0.22 to $0.26 | ||||||||||
| 1. | GAAP outlook does not include any impact from the planned disposition of our NAND business to the joint venture with SK Hynix system ic Inc., which is expected to occur in the second quarter of 2019. | |
