Market Overview

Cypress Reports First Quarter 2019 Results

Share:

Cypress Semiconductor Corporation (NASDAQ:CY), today announced its
first quarter 2019 results with the following highlights:

  • $539.0 million in revenue, in line with guidance
  • GAAP and non-GAAP gross margins were 37.6% and 47.4%, respectively,
    and represent a 110 bps and 150 bps increase year-over-year
  • GAAP and Non-GAAP diluted EPS were $0.05 and $0.27, respectively,
    above the high-end of guidance
  • Closed the NAND JV to exit the business and increase focus on
    high-growth IoT and automotive end markets

"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.
 
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

 

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)%
 
1 ROKU, AAPL: Roku Leads In Subscriber Battle With Apple, Amazon
2 DIS: Option Traders Bet $3.8M Disney Is Headed Lower In 2020
3 PLCE, CSWC: Benzinga's Top Upgrades, Downgrades For December 13, 2019
4 Financial Big Brother Is Coming, But Bitcoin Will Remain
5 SPY, FXI: China, Trump Confirm Phase 1 Trade Deal, Avoiding...
6 CHRW: CH Robinson's Growth Is Fueled By Tech I...
7 AQUA, SKX: Stocks That Hit 52-Week Highs On Friday