Cypress Reports First Quarter 2019 Results
[ Back ]   [ More News ]   [ Home ]
Cypress Reports First Quarter 2019 Results

SAN JOSE, Calif. — (BUSINESS WIRE) — April 25, 2019 — Cypress Semiconductor Corporation (NASDAQ: CY), today announced its first quarter 2019 results with the following highlights:

"We delivered a solid first quarter with revenue, gross margin, and diluted EPS meeting or exceeding our guidance," said Hassane El-Khoury, Cypress’ president and chief executive officer. "Despite uncertain market conditions, Cypress’ world-class connect and compute solutions continue to gain strong momentum. Overall design activity increased 15%, led by Automotive and IoT, and in particular we saw strength in automotive platform wins for our new Traveo-II MCU during the quarter. With our focus on these high-growth markets, we remain committed to our Cypress 3.0 strategy while continuing to execute to our long-term financial model."

Revenue and earnings for the quarter are shown below with comparable periods:

(In thousands, except per-share data)

       
GAAP NON-GAAP1
Q1 2019   Q4 2018   Q1 2018 Q1 2019   Q4 2018   Q1 2018
Revenue $ 539,004 $ 604,474 $ 582,241 $ 539,004 $ 604,474 $ 582,241
Gross margin 37.6 % 37.3 % 36.5 % 47.4 % 47.8 % 45.9 %
Operating margin 5.9 % 0.5 % 6.1 % 21.1 % 24.5 % 19.5 %
Net income $ 19,714 $ 267,114 $ 9,078 $ 102,104 $ 130,990 $ 100,296
Diluted EPS $ 0.05 $ 0.72 $ 0.02 $ 0.27 $ 0.35 $ 0.27
 
1.   See the "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" tables ("Non-GAAP Reconciliation Tables") included below.
 
 

REVENUE SUMMARY

(In thousands, except percentages)

(Unaudited)

 
  Three Months Ended
March 31, 2019     December 30, 2018   April 1, 2018   Sequential Change   Year-over-year Change

Business Unit¹

               
MCD $ 310,389 $ 355,793 $ 336,710 (12.8)% (7.8)%
MPD $ 228,615   $ 248,681   $ 245,531   (8.1)% (6.9)%
Total $ 539,004   $ 604,474   $ 582,241   (10.8)% (7.4)%
 
 
Three Months Ended

End Market

March 31, 2019   December 30, 2018   April 1, 2018
IoT 28.5%   31.5%   31.9%
Automotive

36.7%

35.5% 34.3%
Legacy 34.8% 33.0% 33.8%
Total 100% 100% 100%
     
1.   The Microcontroller and Connectivity Division ("MCD") includes microcontroller, wireless connectivity and USB products and the Memory Products Division ("MPD") includes RAM, Flash and AgigA Tech products.
 

SECOND QUARTER 2019 FINANCIAL OUTLOOK (1)

For the second quarter of 2019, Cypress estimates financial results as follows:

         
    GAAP   Non-GAAP
Revenue (2)   $515 million to $545 million
Gross Margin   37.0% - 37.5%   47.0% - 47.5%
Diluted EPS (3)   $(0.03) to $0.01   $0.22 to $0.26
   
1.   Our Q2 2019 outlook reflects our divestiture of the NAND flash business, which closed on April 1, 2019.
2. For comparison purposes, Q1 2019 revenue would have been $507.9 million excluding the $31.1 million of revenue from the divested NAND flash business, and Q2 2018 revenue would have been $574.6 million excluding the $49.5 million of revenue from the divested NAND flash business.
3. Our share of the NAND joint venture’s Q2 2019 income or loss will be recognized in our Statement of Operations within the line item "Share in net income (loss) of equity method investments." Our expected share of such income is included in our EPS outlook on a GAAP basis but is excluded from our EPS outlook on a non-GAAP basis.
 

A reconciliation of GAAP forward-looking estimates to non-GAAP forward-looking estimates is included in the Non-GAAP Reconciliation Tables at the end of this earnings report.

The timing and amount of certain material items, including restructuring charges, asset impairments, changes in value of deferred compensation assets and liabilities, impact of stock-based compensation from modification of equity awards, the tax impact of non-GAAP adjustments, and share in net income (loss) of equity method investments, which are needed to estimate forward-looking GAAP financial measures, are either inherently unpredictable or outside the control of the Company, and may have a significant impact on the Company’s financial results.

CONFERENCE CALL AND WEBCAST INFORMATION

Cypress will host its quarterly conference call on April 25, 2019 at 1:30 p.m. Pacific Daylight Time to discuss its first quarter 2019 results and outlook for the second quarter of 2019.

All interested parties may dial 517-308-9119 and provide the passcode "Cypress" to listen to the call. The event will be broadcast over the Internet and may be accessed through Cypress’ website at www.cypress.com/investors. The archived presentation will be available for at least two weeks immediately following the event.

FOLLOW CYPRESS ONLINE

Join the Cypress Developer Community 3.0, read our blog, follow us on Twitter, Facebook and LinkedIn, and watch Cypress videos on our Video Library or YouTube.

ABOUT CYPRESS

Cypress is a leader in advanced embedded solutions for the world’s most innovative automotive, industrial, smart home appliances, consumer electronics and medical products. Cypress’ microcontrollers, analog ICs, wireless and USB-based connectivity solutions and reliable, high-performance memories help engineers design differentiated products and get them to market first. Cypress is committed to providing customers with the best support and development resources on the planet enabling them to disrupt markets by creating new product categories. To learn more, go to www.cypress.com.

NON-GAAP FINANCIAL MEASURES

To supplement its condensed consolidated unaudited financial results presented in accordance with GAAP, Cypress uses the non-GAAP financial measures listed below, which are adjusted from the most directly comparable GAAP financial measures to exclude certain items, as described in more detail below.

Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of the Company's operations which, when viewed in conjunction with Cypress' GAAP results, provide a more comprehensive understanding of the various factors and trends affecting the Company's business and operations.

The Company presents non-GAAP financial measures because management uses these measures to analyze and assess the Company's financial results and to manage the business.

There are limitations in using non-GAAP financial measures, including those discussed below. Moreover, the Company’s non-GAAP measures may be calculated differently than the non-GAAP financial measures used by other companies. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measures. The non-GAAP financial measures supplement and should be viewed in conjunction with GAAP financial measures.

As presented in the Non-GAAP Reconciliation Tables in this press release, each of the non-GAAP financial measures (other than free cash flow) excludes one or more of the following items:

Acquisition-related charges: Acquisition-related charges are not factored into management's evaluation of Cypress' long-term performance after the completion of acquisitions. However, a limitation of non-GAAP measures that exclude acquisition-related charges is that these charges may represent payments that reduce the cash available to the Company for other purposes. Acquisition-related expenses primarily include:

Stock-based compensation expense: Stock-based compensation expense relates primarily to employee stock options, restricted stock units, performance stock units and the employee stock purchase plan. Stock-based compensation expense is a non-cash expense that is affected by changes in market factors including the price of Cypress’ common shares, which are not within the control of management. In addition, the valuation of stock-based compensation is subjective, and the expense recognized by Cypress may be significantly different than the expense recognized by other companies for similar equity awards, which makes it difficult to assess Cypress’ results compared to its competitors. Accordingly, management excludes this item from its internal operating forecasts and models. However, a limitation of non-GAAP measures that exclude stock-based compensation expense is that they do not reflect the full costs of compensating employees.

Other adjustments: Other items are excluded from non-GAAP financial measures because management does not consider them to be related to the core operating activities and ongoing operating performance of Cypress. Excluding these items, which can vary significantly from quarter to quarter, allows management to better compare Cypress’ period-over-period performance. However, limitations of non-GAAP measures that exclude these items include that these adjustments are often subjective and such non-GAAP measures may not be comparable to similarly titled non-GAAP financial measures used by other companies. Other adjustments primarily include:

Adjusted EBITDA: Adjusted EBITDA is calculated by adjusting net income (loss) attributable to Cypress to exclude (without duplication): interest expense, income tax provision, depreciation, amortization, equity in net loss of equity method investees, and the non-GAAP adjustments described above (acquisition related charges, stock-based compensation expense, and other adjustments). Commencing in the second quarter of 2018, Cypress reconciles adjusted EBITDA to GAAP net income rather than operating income; prior period reconciliation tables have been revised to conform to the current presentation. Adjusted EBITDA may be useful to management, investors and other users of our financial information because the exclusion of certain gains, losses, and expenses facilitates comparisons of Cypress' operating performance on a period to period basis. Adjusted EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the business. In addition, adjusted EBITDA should not be considered as a substitute for, or superior to net income attributable to Cypress, operating income, or diluted earnings per share, or other financial measures prepared in accordance with GAAP.

Free Cash Flow: Free cash flow is calculated as net cash provided by (used in) operating activities, less acquisition of property, plant and equipment, net (i.e., acquisition of property, plant and equipment less proceeds received from disposition of property, plant and equipment). We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by business operations, after deducting our net payments for acquisitions and dispositions of property and equipment, which cash can then be used for strategic opportunities or other business purposes including, among others, investing in the Company's business, repurchasing stock, making strategic acquisitions, repayment of debt, and strengthening the balance sheet. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. Management compensates for this limitation by also relying on the net increase in cash and cash equivalents and restricted cash as presented in the Company’s condensed consolidated statements of cash flows prepared in accordance with GAAP which incorporates all cash movements during the period.

FORWARD-LOOKING STATEMENTS

Statements in this press release that are not historical facts and that refer to Cypress or its subsidiaries’ plans and expectations for the future are forward-looking statements as such term is used in the Private Securities Litigation Reform Act of 1995. We may use words such as "may," "will," "should," "plan," "anticipate," "believe," "expect," "future," "intend," "estimate," "predict," "potential," "continue" or similar expressions identify forward-looking statements. This press release includes, among others, forward-looking statements regarding our second quarter financial outlook (as well as the related GAAP to non-GAAP reconciling items). Our forward-looking statements are based on the expectations, beliefs, and intentions of, and the information available to, our executive management on the date of this press release. Forward-looking statements involve risks and uncertainties, and readers are cautioned not to place undue reliance on forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: potential tariffs and other disruptions in the international trade and investment environment; global economic and market conditions; our ability to execute on our Cypress 3.0 strategy and our margin improvement plan; risks related to paying down our indebtedness and meeting the covenants in our debt agreements; our efforts to retain and expand our customer base; business conditions and growth trends in the semiconductor market; competition; volatility in supply and demand for our products, including but not limited to the impact of seasonality on supply and demand; our ability to develop, introduce and sell new products and technologies; potential problems relating to our manufacturing activities; reliance on distributors, resellers, third-party manufacturers, and others; risks related to our "take or pay" agreements with certain vendors; the risk of defects, errors, or security vulnerabilities in our products; the impact of acquisitions; our ability to attract and retain key personnel; the unpredictability and expense of legal proceedings; and other risks and uncertainties described in the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures about Market Risk" sections in our most recent Annual Report on Form 10-K filing with the Securities and Exchange Commission which is available on our investor relations website at http://investors.cypress.com/financial-information/sec-filings. We assume no responsibility to update our forward-looking statements.

Cypress, the Cypress logo and PSoC are registered trademarks and Excelon, F-RAM and EZ-PD are trademarks of Cypress Semiconductor Corporation. ZipKey is a registered trademark of Cirrent, Inc. All other trademarks are property of their owners.

 

CYPRESS SEMICONDUCTOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 
  March 31, 2019   December 30, 2018
 
ASSETS
Cash, cash equivalents and short-term investments $ 285,119 $ 285,720
Accounts receivable, net 266,374 324,274
Inventories 316,921 292,093
Assets held for sale 10,818 13,510
Property, plant and equipment, net 274,123 282,986
Goodwill and other intangible assets, net 1,812,452 1,864,340
Other assets 661,817   630,292
Total assets $ 3,627,624   $ 3,693,215
LIABILITIES AND EQUITY
Accounts payable $ 181,220 $ 210,715
Income tax liabilities 53,041 53,469
Revenue reserves, deferred margin and other liabilities 422,311 437,757
Revolving credit facility and long-term debt 851,279   874,235
Total liabilities 1,507,851   1,576,176
Total Cypress stockholders' equity 2,118,469 2,115,734
Non-controlling interest 1,304   1,305
Total equity 2,119,773   2,117,039
Total liabilities and equity $ 3,627,624   $ 3,693,215
 
 

CYPRESS SEMICONDUCTOR CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ON A GAAP BASIS

(In thousands, except per-share data)

(Unaudited)

 
  Three Months Ended
March 31, 2019   December 30, 2018   April 1, 2018
Revenues $ 539,004 $ 604,474 $ 582,241
Cost of revenue 336,595   379,264   369,849  
Gross profit 202,409   225,210   212,392  
Research and development 88,606 82,379 93,233
Selling, general and administrative 81,987   140,091   83,397  
Total operating expenses 170,593   222,470   176,630  
Operating income 31,816 2,740 35,762
Interest and other expense, net (9,244 ) (20,489 ) (18,154 )
Income before income taxes, share in net loss of equity method investee and non-controlling interest 22,572 (17,749 ) 17,608
Income tax provision 730 331,447 (5,057 )
Share in net loss of equity method investee (3,590 ) (46,497 ) (3,461 )
Net income 19,712 267,201 9,090
Net gain attributable to non-controlling interests 2   (87 ) (12 )
Net income attributable to Cypress $ 19,714   $ 267,114   $ 9,078  
Net income per share attributable to Cypress:
Basic $ 0.05 $ 0.74 $ 0.03
Diluted $ 0.05 $ 0.72 $ 0.02
Cash dividend declared per share $ 0.11 $ 0.11 $ 0.11
Shares used in net income per share calculation:
Basic 363,700 361,616 355,461
Diluted 373,131 369,638 370,592
 
 

CYPRESS SEMICONDUCTOR CORPORATION

RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per-share data)

(Unaudited)

 

Table A: GAAP to non-GAAP reconciling items: Three Months Ended Q1 2019

  Cost of revenues   Research and development   Selling, general and administrative   Interest and other expense, net
GAAP [i] $ 336,595 $ 88,606 $ 81,987 $ (12,834 )
[1] Stock-based compensation 2,684 6,680 11,031 —
[2] Changes in value of deferred compensation plan 471 2,204 2,259 (4,334 )
[3] Loss on assets held for sale 2,017 — 1,515 —
[4] Share in net loss of equity method investees — — — 3,590
[5] Imputed interest on convertible debt, equity component amortization on convertible debt and others — — — 3,368
[6] Amortization of debt issuance costs — — — 929
[7] Amortization of acquisition-related intangible assets and other 48,217 — 4,310 —
[8] Restructuring charges (49 ) — 98 —
[9] Other income and expenses —   57   448   303  
Non - GAAP [ii] $ 283,255   $ 79,665   $ 62,326   $ (8,978 )
Impact of reconciling items [ii - i] $ (53,340 ) $ (8,941 ) $ (19,661 ) $ 3,856
 
 

Table B: GAAP to non-GAAP reconciling items: Three Months Ended Q4 2018

  Cost of revenues   Research and development   Selling, general and administrative   Interest and other expense, net
GAAP [i] $ 379,264 $ 82,379 $ 140,091 $ (66,986 )
[1] Stock-based compensation 3,842 6,395 9,166 —
[2] Changes in value of deferred compensation plan (468 ) (2,377 ) (2,726 ) 5,401
[3] Loss on assets held for sale¹ 10,869 — 65,722 —
[4] Share in net loss of equity method investees² — — — 46,496
[5] Imputed interest on convertible debt, equity component amortization on convertible debt and others — — — 3,338
[6] Amortization of debt issuance costs — — — 908
[7] Amortization of intangible assets and other 49,583 — 4,310 —
[8] Litigation settlement and other — (309 ) (159 ) 159
[9] Restructuring charges 135   944   437   —  
Non - GAAP [ii] $ 315,303   $ 77,726   $ 63,341   $ (10,684 )
Impact of reconciling items [ii - i] $ (63,961 ) $ (4,653 ) $ (76,750 ) $ 56,302
 
1.   Relates to our entry into a definitive agreement to divest the NAND business
2. Includes $41.5 million impairment charge recorded for the investment in Deca Technologies Inc.
 
 

Table C: GAAP to Non-GAAP reconciling items: Three Months Ended Q1 2018

  Cost of revenues   Research and development   Selling, general and administrative   Interest and other expense, net
GAAP [i] $ 369,849 $ 93,233 $ 83,397 $ (21,615 )
[1] Stock-based compensation 3,584 6,713 8,161 —
[2] Changes in value of deferred compensation plan 61 272 350 (266 )
[3] Share in net loss and impairment of equity method investees — — — 3,461
[4] Imputed interest on convertible debt, equity component amortization on convertible debt and others — — — 3,431
[5] Loss on extinguishment of convertible notes and debt issuance cost write off due to refinancing — — — 3,258
[6] Amortization of debt issuance costs — — — 1,073
[7] Amortization of acquisition-related intangible assets and other 49,438 — 5,150 —
[8] Restructuring charges and other 1,887   292   1,917   393  
Non - GAAP [ii] $ 314,879   $ 85,956   $ 67,819   $ (10,265 )
Impact of reconciling items [ii - i] $ (54,970 ) $ (7,277 ) $ (15,578 ) $ 11,350
 
 

Table D: Non-GAAP gross profit

Three Months Ended
Q1'19   Q4'18   Q1'18
GAAP gross profit $ 202,409   $ 225,210   $ 212,392
Impact of reconciling items on cost of revenues (see Table A, B, C) 53,340   63,961   54,970  
Non-GAAP gross profit $ 255,749   $ 289,171   $ 267,362  
GAAP gross margin (GAAP gross profit/revenue) 37.6 % 37.3 % 36.5 %
Non-GAAP gross margin (Non-GAAP gross profit/revenue) 47.4 % 47.8 % 45.9 %
 
 

Table E: Non-GAAP operating income

Three Months Ended
Q1'19   Q4'18   Q1'18
GAAP operating income [i] $ 31,816 $ 2,740 $ 35,762
Impact of reconciling items on cost of revenues (see Table A, B, C) 53,340 63,961 54,970
Impact of reconciling items on R&D (see Table A, B, C) 8,941 4,653 7,277
Impact of reconciling items on SG&A (see Table A, B, C) 19,661   76,750   15,578  
Non-GAAP operating income [ii] $ 113,758   $ 148,104   $ 113,587  
Impact of reconciling items on operating income [ii - i] $ 81,942 $ 145,364 $ 77,825
GAAP operating margin (GAAP operating income / revenue) 5.9 % 0.5 % 6.1 %
Non-GAAP operating margin (Non-GAAP operating income / revenue) 21.1 % 24.5 % 19.5 %
 
 

Table F: Non-GAAP pre-tax profit

Three Months Ended
Q1'19   Q4'18   Q1'18
GAAP income (loss) before income taxes and non-controlling interest ("Pre-tax income") $ 22,572 $ (17,749 ) $ 17,608
Share in net loss and impairment of equity method investees (3,590 ) (46,497 ) (3,461 )
Impact of reconciling items on operating income (see Table E) 81,942 145,364 77,825
Impact of reconciling items on interest and other expense, net (see Table A, B, C) 3,856   56,302   11,350  
Non-GAAP pre-tax profit $ 104,780 $ 137,420 $ 103,322
GAAP pre-tax profit margin (GAAP pre-tax income/revenue) 4.2 % (2.9 )% 3.0 %
Non-GAAP pre-tax profit margin (Non-GAAP pre-tax profit/revenue) 19.4 % 22.7 % 17.7 %
 
 

Table G: Non-GAAP income tax expense

Three Months Ended
Q1'19   Q4'18   Q1'18
GAAP income tax provision [i] (730 ) (331,447 ) 5,057
[1] Stock-based compensation 4,283 4,075 3,876
[2] Changes in value of deferred compensation plan 126 (36 ) 88
[3] Merger, integration, related costs and adjustments related to assets held for sale — 57 —
[4] Share in net loss and impairment of equity method investees 754 9,764 727
[5] Imputed interest on convertible debt, equity component amortization on convertible debt and others 707 892 721
[6] Amortization of debt issuance costs 195 — 225
[7] Amortization of acquisition-related intangible assets and other 11,031 11,202 11,463
[8] Restructuring charges 21 318 860
[9] Other (income) and expenses 159 (6 ) —
[10] Loss on extinguishment of convertible notes 742 16,084 684
[11] Uncertain tax positions 297 (3,945 ) (1,362 )
[12] Valuation allowance release, utilization of NOL including excess tax benefits, and others** (14,907 ) 299,385 (19,325 )
Non-GAAP income tax expense [ii]* $ 2,678   $ 6,343   $ 3,014  
Impact of reconciling items on income tax provision [i - ii] (3,408 ) (337,790 ) 2,043
 
*Tax impact of Non-GAAP adjustments is calculated by using the federal statutory rate of 21%.
** Other items include but are not limited to deferred tax expense not affecting income tax payable.
 
     

Table H: Non-GAAP net income

Three Months Ended
Q1'19 Q4'18 Q1'18
GAAP net income (loss) attributable to Cypress $ 19,714 $ 267,114 $ 9,078
Impact of reconciling items on operating income (see Table E) 81,942 145,364 77,825
Impact of reconciling items on interest and other expense, net (see Table A, B, C) 3,856 56,302 11,350
Impact of reconciling items on income tax provision (see Table G) (3,408 ) (337,790 ) 2,043
Non-GAAP net income $ 102,104   $ 130,990   $ 100,296
 
       

Table I: Weighted-average shares, diluted

  Three Months Ended
Q1'19 Q4'18 Q1'18
GAAP   Non-GAAP GAAP Non-GAAP GAAP Non-GAAP
Weighted-average common shares outstanding, basic 363,700 363,700 361,616 361,616 355,461 355,461
Effect of dilutive securities:
Stock options, unvested restricted stock units and other 6,343 10,496 6,482 11,709 7,897 12,515
Convertible notes 3,088   1,634   1,540   1,540   7,234   4,750
Weighted-average common shares outstanding, diluted 373,131   375,830   369,638   374,865   370,592   372,726
 
     

Table J: Earnings per share

  Three Months Ended
Q1'19   Q4'18 Q1'18
GAAP   Non-GAAP GAAP Non-GAAP   GAAP Non-GAAP
Net income (see Table H) [i] $ 19,714 $ 102,104 $ 267,114 $ 130,990 $ 9,078 $ 100,296
Weighted-average common shares outstanding, diluted (see Table I) [ii] 373,131   375,830   369,638   374,865   370,592   372,726
Earnings per share - diluted [i/ii] $ 0.05   $ 0.27   $ 0.72   $ 0.35   $ 0.02   $ 0.27
 
 

Table K: Adjusted EBITDA

  Three Months Ended
Q1'19   Q4'18 Q1'18
GAAP net income attributable to Cypress $ 19,714 $ 267,114 $ 9,078
Interest and other expense, net (9,244 ) (20,489 ) (18,154 )
Income tax provision 730 331,447 (5,057 )
Share in net loss of and impairment of equity method investees (3,590 ) (46,497 ) (3,461 )
Net gain (loss) attributable to non-controlling interests 2   (87 ) (12 )
GAAP operating income $ 31,816 $ 2,740 $ 35,762
Impact of reconciling items on operating income (see Table E) 81,942   145,364   77,825  
Non-GAAP operating income $ 113,758 $ 148,104 $ 113,587
Depreciation 19,512   16,527   17,140  
Adjusted EBITDA $ 133,270   $ 164,631   $ 130,727  
 
 

Table L: Free cash flow

Three Months Ended
Q1'19   Q4'18   Q1'18
GAAP net cash provided by operating activities $ 61,248 $ 142,215 $ 31,678
Acquisition of property, plant and equipment, net (10,534 ) (5,069 ) (17,023 )
Free cash flow $ 50,714   $ 137,146   $ 14,655  
 
 

CYPRESS SEMICONDUCTOR CORPORATION

SUPPLEMENTAL FINANCIAL DATA

(In thousands)

(Unaudited)

 
Three Months Ended
March 31, 2019   December 30, 2018   April 1, 2018

Selected Cash Flow Data (Preliminary):

Net cash provided by operating activities $ 61,248 $ 142,215 $ 31,678
Net cash (used in) provided by investing activities $ (4,376 ) $ (5,988 ) $ (14,173 )
Net cash used in financing activities $ (57,473 ) $ (55,252 ) $ (62,348 )

Other Supplemental Data (Preliminary):

Capital expenditures, net $ 10,534 $ 5,069 $ 17,267
Depreciation $ 19,512 $ 16,527 $ 17,140
Payment of dividend $ 39,748 $ 39,772 $ 38,741
Dividend paid per share $ 0.11 $ 0.11 $ 0.11
Total debt (principal amount) $ 909,549 $ 935,838 $ 1,017,588
Leverage ratio¹ 0.98 1.03 1.44
Cash Income Tax 2,678 6,343 3,014
 
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

 
Q2 2019 Forward-looking Estimates (1)
GAAP (A)   Adjustments (B)   Non-GAAP (C)=(A)+(B)
Amortization of intangibles   Stock-based compensation expense   Other items
Gross margin 37.0% - 37.5% 9.0 % 1.0 % 0.0% 47.0% - 47.5%
Diluted earnings per share (2) $(0.03) to $0.01 $ 0.14 $ 0.09 $ 0.02 $0.22 to $0.26
 
1.   Our Q2 2019 outlook reflects our divestiture of the NAND flash business, which closed on April 1, 2019.
2.

Our share of the NAND joint venture’s Q2 2019 income or loss will be recognized in our Statement of Operations within the line item "Share in net income (loss) of equity method investments." Our expected share of such income is included in our EPS outlook on a GAAP basis but is excluded from our EPS outlook on a non-GAAP basis (as part of the adjustment for "other items" above).

 


Contact:

Thad Trent
EVP Finance & Administration and CFO
(408) 943-2925

Ann Minooka
Vice President, Corporate Communications
(408) 456-1962