Cypress Q414 Financial Tables and Notes

CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 28,
2014
December 29,
2013
ASSETS
Cash, cash equivalents and short-term investments
Accounts receivable, net
Inventories, net (a)
Property, plant and equipment, net
Goodwill and other intangible assets, net
Other assets
Total assets
$
$
118,812
75,984
88,227
237,763
99,615
122,880
743,281
$
$
104,462
81,084
100,612
258,585
106,523
113,707
764,973
LIABILITIES AND EQUITY
Accounts payable
Deferred margin on sales to distributors
Income tax liabilities
Other liabilities
Long-term revolving credit facility
Total liabilities
Total Cypress stockholders' equity
Noncontrolling interest
Total equity
Total liabilities and equity
$
$
42,678
95,187
21,494
155,057
227,000
541,416
208,320
(6,455)
201,865
743,281
$
$
47,893
122,578
29,001
159,866
227,000
586,338
183,109
(4,474)
178,635
764,973
(a) Net inventories include $2.0 million and $3.2 million of capitalized inventories related to stock compensation expense,
as of December 28, 2014 and December 29, 2013, respectively.
CYPRESS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
ON A GAAP BASIS
(In thousands, except per-share data)
(Unaudited)
December 28,
2014
Revenues
Cost of revenues
Gross margin
Operating expenses:
Research and development
Selling, general and administrative
Acquisition costs
Amortization of acquisition-related intangibles
Restructuring charges
Total operating expenses, net
Operating income (loss)
Interest and other income, net
Income (loss) before income taxes
Income tax benefit (provision)
Income (loss), net of taxes
Adjust for net loss attributable to noncontrolling interest
Net Income (loss) attributable to Cypress
Net Income (loss) per share attributable to Cypress:
Basic
Diluted
Cash dividend per share
Shares used in net income (loss) per share calculation:
Basic
Diluted
$
$
$
$
$
Three Months Ended
September 29,
December 29,
2014
2013
184,097
90,395
93,702
39,677
37,746
7,253
1,305
72
86,053
7,649
(2,759)
4,890
(1,814)
3,076
426
3,502
0.02
0.02
0.11
161,864
169,148
$
$
$
$
$
187,516
90,633
96,883
38,626
41,119
1,701
(238)
81,208
15,675
(1,890)
13,785
(1,231)
12,554
286
12,840
0.08
0.08
0.11
159,759
166,481
$
167,776
91,328
76,448
Twelve Months Ended
December 28,
December 29,
2014
2013
$
$
42,343
43,623
1,850
(469)
87,347
(10,899)
(1,437)
(12,336)
(2,210)
(14,546)
337
(14,209)
$
$
$
$
(0.09)
(0.09)
0.11
$
$
$
151,580
151,580
725,497
361,820
363,677
164,560
163,488
7,253
6,683
(1,180)
340,804
22,873
(7,528)
15,345
1,173
16,518
1,418
17,936
0.11
0.11
0.44
159,031
169,122
$
$
722,693
384,121
338,572
$
190,906
182,671
7,833
15,357
396,767
(58,195)
348
(57,847)
7,761
(50,086)
1,845
(48,241)
$
$
$
(0.31)
(0.31)
0.44
148,558
148,558
CYPRESS SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (a)
(In thousands, except per-share data)
(Unaudited)
December 28,
2014
GAAP gross margin
Stock-based compensation expense
Acquisition costs and related amortization
Changes in value of deferred compensation plan
Impairment of assets, restructuring and other
Tax and tax-related items
Non-GAAP gross margin
$
$
GAAP research and development expenses
Stock-based compensation expense
Acquisition costs and related amortization
Changes in value of deferred compensation plan
Impairment of assets, restructuring and other
Non-GAAP research and development expenses
$
GAAP selling, general and administrative expenses
Stock-based compensation expense
Acquisition costs and related amortization
Changes in value of deferred compensation plan
Legal and other
Impairment of assets, restructuring and other
Non-GAAP selling, general and administrative expenses
$
GAAP operating income (loss)
Stock-based compensation expense
Acquisition costs and related amortization
Changes in value of deferred compensation plan
Impairment of assets, restructuring and other
Legal and other
Non-GAAP operating income
$
$
$
$
93,702
2,759
22
(44)
96,439
GAAP net income (loss) attributable to Cypress
Stock-based compensation expense
Acquisition costs and related amortization
Changes in value of deferred compensation plan
Investment related losses (gains)
Impairment of assets, restructuring and other
Legal and other
Tax related and other items
Losses from equity method investment
Non-GAAP net income attributable to Cypress
$
GAAP net income (loss) per share attributable to Cypress - diluted
Stock-based compensation expense
Acquisition costs and related amortization
Changes in value of deferred compensation plan
Impairment of assets, restructuring and other
Legal and other
Tax related and other items
Investment related losses (gains)
Non-GAAP share count adjustment
Losses from equity method investment
Non-GAAP net income per share attributable to Cypress - diluted
$
$
$
50.9%
1.5%
0.0%
0.0%
0.0%
52.4%
Three Months Ended
September 28,
% of
2014
Revenue
$
$
39,677
(2,553)
128
(252)
37,000
$
46,376
(1,436)
(8,602)
229
(1,330)
(72)
35,165
$
7,649
6,748
8,622
(402)
328
1,330
24,275
$
4,890
6,748
8,622
(1,048)
1,330
327
(618)
1,495
1,403
23,149
GAAP pretax profit
Stock-based compensation expense
Acquisition costs and related amortization
Changes in value of deferred compensation plan
Legal and other
Impairment of assets, restructuring and other
Tax related and other items
Investment related losses
Losses from equity method investment
Non-GAAP pretax profit
% of
Revenue
$
$
$
2.7%
3.7%
4.7%
-0.6%
0.7%
0.2%
-0.3%
0.8%
0.7%
12.6%
96,883
3,766
4
(303)
100,350
$
$
41,119
(6,427)
(24)
64
34,732
$
15,675
12,282
1,701
41
(374)
29,325
$
13,785
12,282
1,701
288
(374)
(967)
1,386
28,101
3,503
6,748
8,622
(1,048)
1,495
327
1,330
(324)
1,403
22,056
$
0.02
0.04
0.05
(0.01)
0.01
0.01
0.01
0.13
$
$
$
38,626
(2,089)
(13)
(231)
36,293
$
$
51.7%
2.0%
0.0%
0.0%
-0.2%
0.0%
53.5%
December 29,
2013
$
$
$
7.4%
6.5%
0.9%
0.2%
0.0%
-0.1%
-0.5%
0.0%
0.7%
15.1%
76,448
3,088
5,562
136
269
85,503
% of
Revenue
45.6%
1.8%
3.3%
0.1%
0.2%
51.0%
December 29,
2014
$
$
42,344
(7,356)
(282)
1,368
36,074
$
43,623
(10,432)
(148)
(607)
32,436
$
$
(10,899)
20,877
7,558
1,026
(1,324)
17,238
$
$
(793)
(482)
147,098
$
$
$
$
22,873
50,170
14,244
3,075
5,067
1,330
96,759
12,840
12,282
1,701
288
(374)
(1,585)
1,386
26,538
$
(14,209)
20,877
7,558
(535)
930
(1,324)
1,063
632
14,992
$
0.08
0.07
0.01
(0.01)
0.01
0.16
$
(0.09)
0.13
0.05
(0.01)
(0.01)
0.01
0.01
0.09
$
(a) Refer to the accompanying "Notes to Non-GAAP Financial Measures" for a detailed discussion of management's use of non-GAAP financial measures.
(b) Adjusted for impact of investment in equity method investee. See footnote disclosures related thereto in our 10Q filed on August 6, 2014.
164,560
(16,187)
$
$
(12,336)
20,877
7,558
1,026
(1,324)
(633)
632
15,800
$
50.1%
1.8%
0.0%
0.1%
0.6%
52.6%
176,244
(20,774)
(14,330)
(1,855)
(1,330)
(97)
137,858
$
$
363,677
13,209
(86)
427
4,489
381,716
Twelve Months Ended
% of
December 29,
Revenue
2013
-7.4%
12.4%
4.5%
0.6%
0.0%
-0.8%
-0.4%
0.0%
0.4%
9.3%
15,345
50,170
14,244
61
1,330
3,737
(263)
1,495
5,068
91,187
$
$
$
$
2.1%
6.9%
2.0%
0.0%
0.2%
0.5%
0.0%
0.2%
0.7%
12.6%
338,572
12,789
24,805
854
241
377,261
$
182,671
(34,187)
(1,168)
(3,795)
143,521
(58,195)
73,020
34,056
6,393
17,152
72,426
0.11
0.30
0.08
0.02
0.01
(0.04)
0.01
0.03
0.52
$
(48,241) (b)
73,020
11,514
22
39,694
$
$
46.8%
1.8%
3.4%
0.2%
0.0%
52.2%
190,906
(26,042)
(252)
(1,744)
(1,104)
161,764
(57,847)
73,020
34,056
22
17,152
(2,267)
1,877 (b)
66,013
17,936
50,170
14,244
61
1,495
3,737
1,330
(6,750)
5,068
87,291
% of
Revenue
(14,665)
1,877 (b)
63,221
(0.32)
0.45
0.21
0.01
0.10
(0.08)
(0.01)
0.02
0.01 (b)
0.39
-8.0%
10.1%
4.7%
0.0%
0.0%
2.4%
-0.3%
0.0%
0.3%
9.2%
CYPRESS SEMICONDUCTOR CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(In thousands)
(Unaudited)
December 28,
2014
Selected Cash Flow Data (Preliminary):
Net cash provided by operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Other Supplemental Data (Preliminary):
Capital expenditures
Depreciation
Payment of dividend
Dividend paid per share
Dividend yield per share (a)
Three Months Ended
September 28,
December 29,
2014
2013
Twelve Months Ended
December 28,
December 29,
2014
2013
$
$
$
25,514
(13,736)
(13,126)
$
$
$
8,322
(11,173)
6,501
$
$
$
20,171
569
(11,276)
$
$
$
103,336
(42,156)
(43,453)
$
$
$
66,696
1,139
(45,024)
$
$
$
$
3,769
10,013
17,728
0.11
3.0%
$
$
$
$
5,800
10,093
17,413
0.11
4.4%
$
$
$
$
8,750
9,436
16,578
0.11
4.3%
$
$
$
$
20,947
39,724
69,248
0.11
3.0%
$
$
$
$
36,627
39,572
64,819
0.44
4.3%
(a) Dividend yield per share is calculated based on annualized dividend paid per share divided by the common
stock share price at the end of the period.
CYPRESS SEMICONDUCTOR CORPORATION
CONSOLIDATED DILUTED EPS CALCULATION
(In thousands, except per-share data)
(Unaudited)
Three Months Ended
September 28,
2014
GAAP
Non-GAAP
December 29,
2014
GAAP
Non-GAAP
Net income (loss) attributable to Cypress
$
Weighted-average common shares outstanding (basic)
Effect of dilutive securities:
Stock options, unvested restricted stock and other
Weighted-average common shares outstanding for diluted computation
Net income (loss) per share attributable to Cypress - basic
Net income (loss) per share attributable to Cypress - diluted
Average stock price for the period ended
Common stock outstanding at period end (in thousands)
$
$
3,502
$
22,056
$
12,840
$
26,538
Twelve Months Ended
December 28,
December 29,
2014
2013
GAAP
Non-GAAP
GAAP
Non-GAAP
December 29,
2013
GAAP
Non-GAAP
$
(14,209)
$
14,992
$ 17,936
$ 87,291
$ (48,241)
$
63,221
161,864
161,864
159,759
159,759
151,580
151,580
159,031
159,031
148,558
148,558
7,284
169,148
8,892
170,756
6,722
166,481
8,460
168,219
151,580
14,224
165,804
10,091
169,122
9,331
168,362
148,558
12,954
161,512
0.02
0.02
$
$
0.14
0.13
$
$
0.08
0.08
$
$
0.17
0.16
$
$
(0.09)
(0.09)
$
$
0.10
0.09
$
$
0.11
0.11
$
$
0.55
0.52
$
$
(0.32)
(0.32)
$
$
December 28,
2014
September 28,
2014
December 29,
2013
December 28,
2014
December 29,
2013
$10.77
163,013
$10.54
161,178
$9.45
153,214
$10.18
163,013
$10.59
153,214
0.43
0.39
NOTES TO NON-GAAP FINANCIAL MEASURES
To supplement its consolidated financial results presented in accordance with GAAP, Cypress
uses the following non-GAAP financial measures which are adjusted from the most directly
comparable GAAP financial measures:
•
•
•
•
•
•
Gross margin
Research and development expenses
Selling, general and administrative expenses
Operating income (loss)
Net income (loss)
Diluted net income (loss) per share
The non-GAAP measures set forth above exclude charges primarily related to stock-based
compensation, which represented 72% of total adjustments for the year ended December 28,
2014, as well as restructuring charges, acquisition-related expenses and other adjustments.
Management believes that these non-GAAP financial measures reflect an additional and useful
way of viewing aspects of Cypress’s operations that, when viewed in conjunction with Cypress’s
GAAP results, provide a more comprehensive understanding of the various factors and trends
affecting Cypress’s business and operations. Management uses these non-GAAP measures for
strategic and business decision-making, internal budgeting, forecasting and resource allocation
processes. In addition, these non-GAAP financial measures facilitate management’s internal
comparisons to Cypress’s historical operating results and comparisons to competitors’ operating
results. Pursuant to the requirements of Regulation G and to make clear to our investors the
adjustments we make to GAAP measures, we have provided a reconciliation of the non-GAAP
measures to the most directly comparable GAAP financial measures.