Table F: Net income (loss)

Q3'16

Q2'16

GAAP Net income (loss)

$

9,411

$

(519,274)

Impact of reconciling items on Operating income (see Table D)

37,212

564,281

Interest and other expense, net (see Table B,C)

6,847

3,591

Income tax provision (see Table B,C)

(4)

(8,402)

Non-GAAP Net income

$

53,467

$

40,196

Table G: Margin %

Q3'16

Q2'16

GAAP

Non-GAAP

GAAP

Non-GAAP

Revenue (See Table A) [i]

$

523,845

$

530,095

$

450,127

$

456,377

Cost of revenues (See Table B, C) [ii]

325,225

315,326

291,349

283,836

Margin [iii] [ii - i]

$

198,620

$

214,769

$

158,778

$

172,541

Margin % [iii / i]

37.9%

40.5%

35.3%

37.8%

Table H: Pretax profit margin %

Q3'16

Q2'16

GAAP

Non-GAAP

GAAP

Non-GAAP

Revenue (See Table A) [i]

$

523,845

$

530,095

$

450,127

$

456,377

Pre-tax profit (see Table E)  [ii]

$

12,539

$

56,598

$

(524,876)

$

42,996

Pre-tax profit margin % [ii / i]

2.4%

10.7%

(116.6)%

9.4%

Table I: Weighted-average shares, diluted

Q3'16

Q2'16

GAAP

Non-GAAP

GAAP

Non-GAAP

Weighted-average common shares outstanding, basic

321,276

321,276

314,305

314,305

Effect of dilutive securities:

Stock options, unvested restricted stock and other

7,017

14,008

—

12,858

Impact of convertible bond

15,425

15,425

—

12,577

Weighted-average common shares outstanding, diluted

343,718

350,709

314,305

339,740

Table J: Net income (loss) Per Share

Q3'16

Q2'16

GAAP

Non-GAAP

GAAP

Non-GAAP

Net income (loss) (see Table F)

$

9,411

$

53,467

$

(519,274)

$

40,196

Add: Interest expense on convertible bond

1,640

746

—

742

Net income for earnings per share - Diluted [i]

$

11,051

$

54,213

(519,274)

$

40,938

Weighted-average common shares outstanding (see Table I) [ii]

343,718

350,709

314,305

339,740

Non-GAAP earnings per share - Diluted [i/ii]

$

0.03

$

0.15

$

(1.65)

$

0.12

CYPRESS SEMICONDUCTOR CORPORATION

SUPPLEMENTAL FINANCIAL DATA

(In thousands)

(Unaudited)

Three Months Ended

October 2, 2016

July 3, 2016

Selected Cash Flow Data (Preliminary):

Net cash provided by (used in) operating activities

$

105,130

$

8,774

Net cash provided by (used in) investing activities

$

(560,248)

$

(15,287)

Net cash provided by (used in) financing activities

$

353,441

$

108,755

Other Supplemental Data (Preliminary):

Capital expenditures

$

19,695

$

12,787

Depreciation

$

19,454

$

19,558

Payment of dividend

$

35,240

$

34,270

Dividend paid per share

$

0.11

$

0.11

CYPRESS SEMICONDUCTOR CORPORATION

RECONCILIATION OF GAAP FORWARDING LOOKING ESTIMATES TO NON-GAAP FORWARD LOOKING ESTIMATES

Forward looking
GAAP estimate
(A)

Adjustments (B)

Forward looking
Non-GAAP
estimate
(C)=(A)+(B)

Amortization of
intangibles

Share-based
compensation
expense

Restructuring

Other
items

Margin %

 38% + / - 50 bps

—

%

0.9

%

—

%

0.60

%

 40% + / - 50 bps

Diluted earnings per share

 $(0.25) to $(0.20)

$

0.15

$

0.08

$

0.11

$

0.03

 $0.12 to $0.16