Cypress Q2 Revenues Inch Upward

Revenues totaled $203.1M, up $1M from last year, for a net loss of $12.4M or $0.10 per share, down from a loss of $0.23 last year

July 17, 2003

2 Min Read

SAN JOSE, Calif. -- Cypress Semiconductor Corporation (NYSE:CY - News) today announced that revenue for the 2003 second quarter was $203.1 million, up 12% from the prior quarter revenue of $181.0 million and up slightly from the year-ago second quarter revenue of $202.1 million. Pro forma net income for the 2003 second quarter was $3.4 million, resulting in a pro forma income per share of $0.03, compared with the prior quarter pro forma loss per share of $0.10 and the year-ago second quarter pro forma loss per share of $0.05.

Including amortization of intangibles and other acquisition-related, restructuring and other special charges and credits, Cypress posted a GAAP net loss of $12.4 million for the 2003 second quarter, resulting in a loss per share of $0.10, compared with the prior quarter loss per share of $0.27, and the year-ago second quarter loss per share of $0.23.

Cypress CEO T.J. Rodgers said, "We're very pleased with our return to pro forma profitability and positive free cash flow (cash from operations less capital expenditures) this quarter. The sequential revenue growth of 12% in the second quarter included incremental sales from the Micron synchronous (networking) SRAM business we took over. Bookings and turns were strong all quarter, and we ended the quarter with book-to-bill greater than 1.0, even with the Micron billing considered. Backlog grew sequentially as well."

Rodgers continued, "Gross margin for the 2003 second quarter was approximately 48%, aided by a 3% benefit from the sale of previously reserved inventory. Operating expenses (Research & Development; Sales, General and Administrative) as a percentage of sales, improved approximately four percentage points in the 2003 second quarter, aided by cost reductions and incremental sales. We ended the quarter with cash of $600 million, of which approximately $328 million was earmarked for the redemption of our convertible subordinated notes, which was completed shortly after the end of the second quarter."

Rodgers concluded, "We expect to grow revenue sequentially in the third quarter of 2003, to continue to generate free cash and to improve our pro forma profitability. The economy is still struggling, but -- after a false start in 2002 -- this feels like the beginning of a recovery."

Cypress Semiconductor Corp.

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