SAN JOSE, Calif. — (BUSINESS WIRE) — April 26, 2018 — Cypress Semiconductor Corporation (NASDAQ: CY), a leader in embedded solutions, today announced its first quarter 2018 results with the following highlights:
- Revenue was $582.2 million, a 9.5% year-over-year increase
- GAAP and non-GAAP gross margins were 36.5% and 45.9%, respectively, and represent a 700bps and 660bps increase year over year
- GAAP diluted EPS improved by 15 cents to $0.02 and Non-GAAP diluted EPS improved 14 cents to $0.27 year over year
- Revenue from the Automotive end market increased 14.8% year over year
“Cypress continued its solid execution this quarter with strong financial results and business performance,” stated Hassane El-Khoury, Cypress’ president and chief executive officer. “Our focus on the Cypress 3.0 strategy resulted in revenue increasing 9.5% and earnings per share more than doubling year over year. During the quarter, we expanded our embedded solutions portfolio with the introduction of several hardware and software innovations. These empowered Cypress, and our partners, to solve problems for consumer, industrial and automotive customers of all sizes, while also enhancing our ability to cross-sell our entire portfolio. The strength of our innovation muscle is clearly illustrated by our track record of winning with market movers, while simultaneously driving a significant increase in our overall customer count supporting our go-broad efforts.”
Revenue and earnings for the quarter are shown below with comparable periods:
(In thousands, except per-share data)
| GAAP1 | NON-GAAP2 | |||||||||||||||||||||||||||||
| Q1 2018 | Q4 2017 | Q1 2017 | Q1 2018 | Q4 2017 | Q1 2017 | |||||||||||||||||||||||||
| Revenue | $ | 582,241 | $ | 597,547 | $ | 531,874 | $ | 582,241 | $ | 597,547 | $ | 531,874 | ||||||||||||||||||
| Gross margin | 36.5 | % | 37.2 | % | 29.5 | % | 45.9 | % | 45.4 | % | 39.3 | % | ||||||||||||||||||
| Operating margin | 6.1 | % | 7.0 | % | (2.6 | )% | 19.5 | % | 20.2 | % | 12.2 | % | ||||||||||||||||||
| Net income (loss) | $ | 9,078 | $ | (34,012 | ) | $ | (42,999 | ) | $ | 100,296 | $ | 104,686 | $ | 45,887 | ||||||||||||||||
| Diluted EPS (loss) | $ | 0.02 | $ | (0.10 | ) | $ | (0.13 | ) | $ | 0.27 | $ | 0.28 | $ | 0.13 | ||||||||||||||||
| 1. | During Q1'18, certain expenses have been reclassified as part of cost of revenue. Historical results have been conformed with Q1'18 presentation. | |
| 2. | See “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables (“Non-GAAP Results” tables) included below. | |
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