+ Cypress paid a dividend of $35.4 million, or $0.11 per share, to holders of record of the Company's common stock as of the close of business on December 29, 2016. The dividend was equivalent to a 3.8% annualized yield as of December 30, 2016.
|
REVENUE SUMMARY | |||||||||||||||||||||
|
(In thousands, except percentages) | |||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||
|
| |||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended | ||||||||||||||||||
|
|
(GAAP)1 |
|
(Non-GAAP)4 | ||||||||||||||||||
|
|
January 1,
|
|
October 2,
|
|
Sequential
|
|
January 1,
|
|
October 2,
|
|
Sequential
| ||||||||||
|
Business Unit |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
MCD1,3 |
$ |
294,893 |
|
|
$ |
284,242 |
|
|
4% |
|
|
$ |
294,893 |
|
|
$ |
290,492 |
|
|
2% |
|
|
MPD |
235,279 |
|
|
239,603 |
|
|
(2)% |
|
|
235,279 |
|
|
239,603 |
|
|
(2)% |
| ||||
|
Total |
$ |
530,172 |
|
|
$ |
523,845 |
|
|
1% |
|
|
$ |
530,172 |
|
|
$ |
530,095 |
|
|
0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Geographic2 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
China & ROW1 |
57% |
|
|
55% |
|
|
4% |
|
|
57% |
|
|
56% |
|
|
2% |
| ||||
|
Americas |
11% |
|
|
12% |
|
|
(8)% |
|
|
11% |
|
|
12% |
|
|
(8)% |
| ||||
|
Europe |
11% |
|
|
12% |
|
|
(8)% |
|
|
11% |
|
|
12% |
|
|
(8)% |
| ||||
|
Japan |
21% |
|
|
21% |
|
|
0% |
|
|
21% |
|
|
20% |
|
|
5% |
| ||||
|
Total |
100% |
|
|
100% |
|
|
0% |
|
|
100% |
|
|
100% |
|
|
0% |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Channel |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Distribution |
74% |
|
|
74% |
|
|
0% |
|
|
74% |
|
|
73% |
|
|
1% |
| ||||
|
Direct 1 |
26% |
|
|
26% |
|
|
0% |
|
|
26% |
|
|
27% |
|
|
(4)% |
| ||||
|
Total |
100% |
|
|
100% |
|
|
0% |
|
|
100% |
|
|
100% |
|
|
0% |
| ||||
- GAAP revenue for the third quarter of 2016 excludes $6.25 million of non-GAAP licensing revenue in MCD, China & ROW region and direct channel.
- Prior quarter geographic numbers have been revised to conform to current period presentation.
- Historical results of MCD include Deca Technologies.
- See "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" tables included below.
|
|
Twelve Months Ended |
|
Twelve Months Ended | ||||||||||||||||||
|
|
(GAAP) 1,2,3 |
|
(Non-GAAP) 6 | ||||||||||||||||||
|
|
January 1,
|
|
January 3,
|
|
Sequential
|
|
January 1,
|
|
January 3,
|
|
Sequential
| ||||||||||
|
Business Unit |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
MCD 2,5 |
$ |
994,482 |
|
|
$ |
731,279 |
|
|
36% |
|
|
$ |
1,013,232 |
|
|
$ |
750,029 |
|
|
35% |
|
|
MPD |
928,626 |
|
|
876,574 |
|
|
6% |
|
|
928,626 |
|
|
876,574 |
|
|
6% |
| ||||
|
Total |
$ |
1,923,108 |
|
|
$ |
1,607,853 |
|
|
20% |
|
|
$ |
1,941,858 |
|
|
$ |
1,626,603 |
|
|
19% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Geographic 4 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
China & ROW 2 |
53% |
|
|
44% |
|
|
20% |
|
|
53% |
|
|
44% |
|
|
20% |
| ||||
|
Americas |
12% |
|
|
14% |
|
|
(14)% |
|
|
12% |
|
|
15% |
|
|
(20)% |
| ||||
|
Europe |
13% |
|
|
13% |
|
|
0% |
|
|
13% |
|
|
13% |
|
|
0% |
| ||||
|
Japan |
22% |
|
|
29% |
|
|
(24)% |
|
|
22% |
|
|
28% |
|
|
(21)% |
| ||||
|
Total |
100% |
|
|
100% |
|
|
0% |
|
|
100% |
|
|
100% |
|
|
0% |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Channel |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Distribution |
73% |
|
|
71% |
|
|
3% |
|
|
72% |
|
|
70% |
|
|
3% |
| ||||
|
Direct 2 |
27% |
|
|
29% |
|
|
(7)% |
|
|
28% |
|
|
30% |
|
|
(7)% |
| ||||
|
Total |
100% |
|
|
100% |
|
|
0% |
|
|
100% |
|
|
100% |
|
|
0% |
| ||||
- 2015 includes results of the merger with Spansion as of March 12, 2015 .
- Net sales for twelve months ended 2015 and 2016 include $18.75 million of legacy Spansion non-GAAP licensing revenue in MCD, APAC region and direct channel, respectively.
- 2016 includes results of the IoT acquisition as of July 5, 2016 .
- Prior quarter geographic numbers have been revised to conform to current period presentation.
- Historical results of MCD include Deca Technologies.
- See "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" tables included below.
FIRST QUARTER 2017 FINANCIAL OUTLOOK
For the first quarter of 2017, Cypress estimates financial results as follows:
|
|
|
|
|
|
GAAP |
Non-GAAP |
|
Revenue |
$495 million to $525 million | |
|
Margin % |
37% + / - 50 bps |
39% + / - 50 bps |
|
Diluted EPS |
$(0.22) to $(0.18) |
$0.09 to $0.13 |
A reconciliation of GAAP forward-looking estimates to non-GAAP forward-looking estimates may be found in the tables at the end of this earnings report.
The timing and amount of certain material items, including restructuring charges, asset impairments, changes in value of deferred compensation assets and liabilities, impact of stock-based compensation from modification of equity awards, and the tax impact of non-GAAP adjustments, which are needed to estimate GAAP financial measures are either inherently unpredictable or outside the control of the Company, and may have a significant impact on the Company's financial results. Accordingly, Cypress cannot provide a full quantitative reconciliation for such non-GAAP financial measures included as part of the first quarter 2017 financial outlook to the most directly comparable GAAP measure without unreasonable effort and additional adjustments may be reflected in our non-GAAP results for the first quarter of 2017. Cypress has qualitatively described below, under the section "Non-GAAP Financial Measures," the anticipated differences between the non-GAAP financial measures and the most directly comparable GAAP measures.
CONFERENCE CALL AND WEBCAST INFORMATION
Cypress will host its quarterly conference call on February 2, 2017 at 1:30 p.m. Pacific Time to discuss its fourth quarter and fiscal year 2016 results and provide an outlook for the first quarter of 2017.
All interested parties may dial 517-308-9119 and provide the passcode "Cypress" to listen to the call. The event will be broadcast over the Internet and may be accessed through Cypress's website at www.cypress.com/investors . The archived presentation will be available for two weeks immediately following the event.
FOLLOW CYPRESS ONLINE
Join the Cypress Developer Community , read our Core & Code blog, follow us on Twitter , Facebook and LinkedIn , and watch Cypress videos on our Video Library or YouTube .
ABOUT CYPRESS
Founded in 1982, Cypress is a leader in advanced embedded system solutions for the world's most innovative automotive, industrial, home automation and appliances, consumer electronics and medical products. Cypress's programmable systems-on-chip, general-purpose microcontrollers, analog ICs, wireless and USB-based connectivity solutions and reliable, high-performance memories help engineers design differentiated products and get them to market first. Cypress is committed to providing customers with support and engineering resources that enable innovators and out-of-the-box thinkers to disrupt markets and create new product categories. To learn more, go to www.cypress.com .
NON-GAAP FINANCIAL MEASURES
To supplement its condensed consolidated unaudited financial results presented in accordance with GAAP, Cypress uses the non-GAAP financial measures listed below, which are adjusted from the most directly comparable GAAP financial measures to exclude certain items, as described in more detail below.
- Revenue;
- Margin;
- Margin %;
- Research and development expenses;
- Selling, general and administrative expenses;
- Provision (benefit) for income taxes;
- Pretax profit margin %;
- Operating income (loss);
- Net income (loss); and
- Diluted earnings (loss) per share.
Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of the Company's operations which, when viewed in conjunction with Cypress's GAAP results, provide a more comprehensive understanding of the various factors and trends affecting the Company's business and operations.
The Company presents non-GAAP financial measures because management uses these measures to analyze and assess the Company's financial results and to manage the business.
There are limitations in using non-GAAP financial measures including those discussed below. Moreover, the Company's non-GAAP measures may be calculated differently than the non-GAAP financial measures used by other companies. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measures. The non-GAAP financial measures supplement and should be viewed in conjunction with GAAP financial measures.
As presented in the "Non-GAAP Results" tables in this press release, each of the non-GAAP financial measures excludes one or more of the following items:
Acquisition-related charges : Acquisition-related charges are not factored into management's evaluation of potential acquisitions or Cypress's long-term performance after the completion of acquisitions. However, a limitation of non-GAAP measures that exclude acquisition-related charges is that these charges may represent payments that reduce the cash available to the Company for other purposes. Acquisition-related expenses primarily include:
- Amortization of purchased intangibles, including purchased technology, patents, customer relationships, trademarks, backlog and non-compete agreements;
- Amortization of step-up in value of inventory recorded as part of purchase price accounting; and
- One-time charges associated with the completion of an acquisition including items such as contract termination costs, severance and other acquisition-related restructuring costs; costs incurred in connection with integration activities, and legal and accounting costs.
Share-based compensation expense : Share-based compensation expense relates primarily to employee stock options, restricted stock units, performance stock units and the employee stock purchase plan. Share-based compensation expense is a non-cash expense that is affected by changes in market factors including the price of Cypress's common shares, which are not within the control of management. In addition, the valuation of share-based compensation is subjective, and the expense recognized by Cypress may be significantly different than the expense recognized by other companies for similar equity awards, which makes it difficult to assess Cypress's results compared to its competitors. Accordingly, management excludes this item from its internal operating forecasts and models. However, a limitation of non-GAAP measures that exclude share-based compensation expense is that they do not reflect the full costs of compensating employees.
Other adjustments : These items are excluded from non-GAAP financial measures because they are not related to the core operating activities and ongoing operating performance of Cypress. Excluding these items, which can vary significantly from quarter to quarter, allows management to better compare Cypress's period-over-period performance. However, limitations of non-GAAP measures that exclude these items include that these adjustments are often subjective and may not be comparable to similarly titled non-GAAP financial measures used by other companies. Other adjustments primarily include:
- Revenue from an intellectual property license,
- Changes in value of deferred compensation plan assets and liabilities,
- Investment-related gains or losses, including equity method investments,
- Restructuring and related costs,
- Debt issuance costs, including imputed interest related to the equity component of convertible debt,
- Asset impairments,
- Tax effects of non-GAAP adjustments,
- Certain other expenses and benefits, and
- Diluted weighted average shares non-GAAP adjustment – for purposes of calculating non-GAAP diluted earnings per share, the GAAP diluted weighted average shares outstanding is adjusted to exclude the benefits related to share-based compensation expense.
FORWARD-LOOKING STATEMENTS
Statements herein that are not historical facts and that refer to Cypress or its subsidiaries' plans and expectations for the future are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. We may use words such as "may," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "future," "continue" or other wording indicating future results or expectations to identify such forward-looking statements that include, but are not limited to: statements related to our estimated non-GAAP revenue, non-GAAP margin, non-GAAP operating expenses, non-GAAP EPS, net interest expense, tax expense, capital expenditures and depreciation for the first quarter of fiscal 2017; the expected benefits of our acquisition of Broadcom's wireless IoT business, including revenue growth and margin improvement; sources of revenue for the first quarter; the expected impact of our lean inventory initiative on fab utilization, inventory levels, cash flow, pricing and profitability; estimates of certain GAAP to non-GAAP reconciling items for the first quarter; the demand environment for semiconductors; the expected impact of our margin improvement plan; the impact of seasonality on revenue; the CEO transition; cross-selling opportunities in the automotive business; our ability to meet our targeted range of inventory; the expected synergies related to our merger with Spansion; expected or anticipated uses of cash flow, including to pay dividends, repurchase shares of common stock, or pay down our existing indebtedness; and plans to reduce excess inventory. Such statements reflect our current expectations, which are based on information and data available to our management as of the date of this press release. Our actual results may differ materially due to a variety of risks and uncertainties, including, but not limited to: global economic and market conditions; business conditions and growth trends in the semiconductor market; our ability to compete effectively; the volatility in supply and demand conditions for our products, including but not limited to the impact of seasonality on supply and demand; our ability to develop, introduce and sell new products and technologies; potential problems relating to our manufacturing activities; the impact of acquisitions, including but not limited to the continuing integration of Spansion and the recent acquisition of Broadcom's wireless IoT business; our ability to attract and retain key personnel; and other risks and uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. We assume no responsibility to update any such forward-looking statements.
Cypress, the Cypress logo, WICED and PSoC are registered trademarks of Cypress Semiconductor Corporation. All other trademarks are property of their owners.
|
CYPRESS SEMICONDUCTOR CORPORATION | ||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
|
(In thousands) | ||||||||
|
(Unaudited) | ||||||||
|
| ||||||||
|
|
|
January 1, 2017 |
|
January 3, 2016 | ||||
|
|
|
|
|
| ||||
|
ASSETS |
|
|
|
| ||||
|
Cash, cash equivalents and short-term investments |
|
$ |
121,144 |
|
|
$ |
227,561 |
|
|
Accounts receivable, net |
|
333,037 |
|
|
292,736 |
| ||
|
Inventories |
|
287,776 |
|
|
243,595 |
| ||
|
Property, plant and equipment, net |
|
297,266 |
|
|
425,003 |
| ||
|
Goodwill and other intangible assets, net |
|
2,344,033 |
|
|
2,528,077 |
| ||
|
Other assets |
|
488,615 |
|
|
287,289 |
| ||
|
Total assets |
|
$ |
3,871,871 |
|
|
$ |
4,004,261 |
|
|
LIABILITIES AND EQUITY |
|
|
|
| ||||
|
Accounts payable |
|
$ |
241,424 |
|
|
$ |
143,383 |
|
|
Income tax liabilities |
|
49,552 |
|
|
54,999 |
| ||
|
Revenue reserves, deferred margin and other liabilities |
|
493,164 |
|
|
419,535 |
| ||
|
Revolving credit facility and long-term debt |
|
1,194,979 |
|
|
673,659 |
| ||
|
Total liabilities |
|
1,979,119 |
|
|
1,291,576 |
| ||
|
Total Cypress stockholders' equity |
|
1,891,828 |
|
|
2,720,848 |
| ||
|
Non-controlling interest |
|
924 |
|
|
(8,163) |
| ||
|
Total equity |
|
1,892,752 |
|
|
2,712,685 |
| ||
|
Total liabilities and equity |
|
$ |
3,871,871 |
|
|
$ |
4,004,261 |
|
|
CYPRESS SEMICONDUCTOR CORPORATION | ||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
|
ON A GAAP BASIS | ||||||||||||||||||||
|
(In thousands, except per-share data) | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
| ||||||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended | ||||||||||||||||
|
|
|
January 1, 2017 |
|
October 2, 2016 |
|
January 3, 2016 |
|
January 1, 2017 |
|
January 3, 2016 | ||||||||||
|
Revenues |
|
$ |
530,172 |
|
|
$ |
523,845 |
|
|
$ |
450,128 |
|
|
$ |
1,923,108 |
|
|
$ |
1,607,853 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Cost of revenues |
|
328,220 |
|
|
325,225 |
|
|
306,881 |
|
|
1,237,974 |
|
|
1,207,850 |
| |||||
|
Research and development |
|
92,188 |
|
|
95,411 |
|
|
73,682 |
|
|
331,737 |
|
|
281,391 |
| |||||
|
Selling, general and administrative |
|
76,839 |
|
|
84,209 |
|
|
85,385 |
|
|
317,383 |
|
|
323,570 |
| |||||
|
Amortization of intangible assets |
|
52,104 |
|
|
54,849 |
|
|
33,959 |
|
|
174,745 |
|
|
108,335 |
| |||||
|
Restructuring charges |
|
17,237 |
|
|
7,970 |
|
|
1,406 |
|
|
26,131 |
|
|
90,084 |
| |||||
|
Impairment of acquisition-related intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
33,944 |
|
|
— |
| |||||
|
Impairment related to assets held for sale |
|
1,960 |
|
|
35,259 |
|
|
— |
|
|
37,219 |
|
|
— |
| |||||
|
Loss (gain) related to investment in Deca Technologies |
|
— |
|
|
(112,774) |
|
|
— |
|
|
(112,774) |
|
|
— |
| |||||
|
(Gain) on divestiture of TrueTouch® Mobile business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(66,472) |
| |||||
|
Goodwill impairment charge |
|
— |
|
|
— |
|
|
— |
|
|
488,504 |
|
|
— |
| |||||
|
Total costs and expenses |
|
568,548 |
|
|
490,149 |
|
|
501,313 |
|
|
2,534,863 |
|
|
1,944,758 |
| |||||
|
Operating income (loss) |
|
(38,376) |
|
|
33,696 |
|
|
(51,185) |
|
|
(611,755) |
|
|
(336,905) |
| |||||
|
Interest and other expense, net |
|
(24,389) |
|
|
(16,924) |
|
|
(3,556) |
|
|
(54,879) |
|
|
(20,125) |
| |||||
|
Income (loss) before income taxes and non-controlling interest |
|
(62,765) |
|
|
16,772 |
|
|
(54,741) |
|
|
(666,634) |
|
|
(357,030) |
| |||||
|
Income tax provision |
|
(790) |
|
|
(3,304) |
|
|
(15,726) |
|
|
(2,616) |
|
|
(16,960) |
| |||||
|
Equity in net loss of equity method investees |
|
(8,766) |
|
|
(4,233) |
|
|
(2,330) |
|
|
(17,644) |
|
|
(7,148) |
| |||||
|
Net income (loss) |
|
(72,321) |
|
|
9,235 |
|
|
(72,797) |
|
|
(686,894) |
|
|
(381,138) |
| |||||
|
Net (gain) loss attributable to non-controlling interests |
|
(46) |
|
|
176 |
|
|
467 |
|
|
643 |
|
|
2,271 |
| |||||
|
Net income (loss) attributable to Cypress |
|
$ |
(72,367) |
|
|
$ |
9,411 |
|
|
$ |
(72,330) |
|
|
$ |
(686,251) |
|
|
$ |
(378,867) |
|
|
Net income (loss) per share attributable to Cypress: |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Basic |
|
$ |
(0.22) |
|
|
$ |
0.03 |
|
|
$ |
(0.22) |
|
|
$ |
(2.15) |
|
|
$ |
(1.25) |
|
|
Diluted |
|
$ |
(0.22) |
|
|
$ |
0.03 |
|
|
$ |
(0.22) |
|
|
$ |
(2.15) |
|
|
$ |
(1.25) |
|
|
Cash dividend declared per share |
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
|
Shares used in net income (loss) per share calculation: |
|
— |
|
|
|
|
|
|
|
|
| |||||||||
|
Basic |
|
322,800 |
|
|
321,276 |
|
|
334,447 |
|
|
319,522 |
|
|
302,036 |
| |||||
|
Diluted |
|
322,800 |
|
|
343,718 |
|
|
334,447 |
|
|
319,522 |
|
|
302,036 |
| |||||
|
CYPRESS SEMICONDUCTOR CORPORATION | ||||||||||||||||||||
|
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
|
(In thousands, except per-share data) | ||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||
|
| ||||||||||||||||||||
|
Table A: Revenue |
|
Three Months Ended (a) |
|
Twelve Months Ended (b) | ||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 |
|
Q4'16 |
|
Q4'15 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
GAAP revenue |
|
$ |
530,172 |
|
|
$ |
523,845 |
|
|
$ |
450,128 |
|
|
$ |
1,923,108 |
|
|
$ |
1,607,853 |
|
|
Add: Revenue from Intellectual Property License |
|
— |
|
|
6,250 |
|
|
6,250 |
|
|
18,750 |
|
|
18,750 |
| |||||
|
Non-GAAP revenue |
|
$ |
530,172 |
|
|
$ |
530,095 |
|
|
$ |
456,378 |
|
|
$ |
1,941,858 |
|
|
$ |
1,626,603 |
|
|
| |
|
(a) |
Non-GAAP revenue for the third quarter of fiscal 2016 and fourth quarter of fiscal 2015, includes $6.25 million of non-GAAP licensing revenue in MCD, China & ROW region and direct channel. |
|
(b) |
Non-GAAP revenue for the twelve months ended 2015 and 2016, includes $18.8 million of non-GAAP licensing revenue in MCD, China & ROW region and direct channel. |
|
Table B: GAAP to Non-GAAP reconciling items (Three Months Ended Q4 2016) | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||
|
|
|
Cost of
|
|
Research and
|
|
SG&A |
|
Amortization
|
|
Impairment related to assets held for sale |
|
Interest and
|
|
Income tax
| ||||||||||||||
|
GAAP [i] |
|
$ |
328,220 |
|
|
$ |
92,188 |
|
|
$ |
94,076 |
|
|
$ |
52,104 |
|
|
$ |
1,960 |
|
|
$ |
(33,155) |
|
|
$ |
(790) |
|
|
[1] Stock based compensation, including costs related to modification of equity awards |
|
6,589 |
|
|
16,687 |
|
|
12,292 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[2] Changes in value of deferred compensation plan |
|
42 |
|
|
147 |
|
|
292 |
|
|
— |
|
|
— |
|
|
(641) |
|
|
— |
| |||||||
|
[3] Merger, integration and related costs |
|
2,614 |
|
|
476 |
|
|
5,136 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[4] Inventory Step-up related to acquisition accounting |
|
1,381 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[5] Losses from equity method investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8,766 |
|
|
— |
| |||||||
|
[6] Imputed interest on convertible debt, equity component amortization on convertible debt and others |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,482 |
|
|
— |
| |||||||
|
[7] Amortization of debt issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
976 |
|
|
— |
| |||||||
|
[8] Amortization of Intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
52,104 |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[9] Impairment related to assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,960 |
|
|
— |
|
|
— |
| |||||||
|
[10] Restructuring costs, including executive severance |
|
— |
|
|
— |
|
|
17,237 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[11] Tax impact of Non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(908) |
|
|
(2,442) |
| |||||||
|
Non - GAAP [ii] |
|
$ |
317,594 |
|
|
$ |
74,878 |
|
|
$ |
59,119 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(21,480) |
|
|
$ |
(3,232) |
|
|
Impact of reconciling items [ii - i] |
|
$ |
(10,626) |
|
|
$ |
(17,310) |
|
|
$ |
(34,957) |
|
|
$ |
(52,104) |
|
|
$ |
(1,960) |
|
|
$ |
11,675 |
|
|
$ |
(2,442) |
|
|
Table C: GAAP to Non-GAAP reconciling items (Three Months Ended Q3 2016) |
|
|
| ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
|
|
|
Cost of revenues |
|
Research and development |
|
SG&A |
|
Amortization of Intangible assets |
|
Impairment related to assets held for sale |
|
(Gain) related to investment in Deca Technologies |
|
Interest and other expense, net |
|
Income tax provision | |||||||||||||||||||||||
|
GAAP [i] |
|
$ |
325,225 |
|
|
$ |
95,411 |
|
|
$ |
92,179 |
|
|
$ |
54,849 |
|
|
$ |
35,259 |
|
|
$ |
(112,774) |
|
|
$ |
21,157 |
|
|
$ |
(3,304) |
| |||||||
|
[1] Stock based compensation, including costs related to modification of equity awards |
|
4,852 |
|
|
12,581 |
|
|
9,880 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||||||||||
|
[2] Changes in value of deferred compensation plan |
|
113 |
|
|
365 |
|
|
785 |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,207) |
|
|
— |
| |||||||||||||||
|
[3] Merger, integration and related costs |
|
192 |
|
|
1,937 |
|
|
10,390 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||||||||||
|
[4] Inventory Step-up related to acquisition accounting |
|
4,742 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||||||||||
|
[5] Losses from equity method investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,233 |
|
|
— |
| |||||||||||||||
|
[6] Imputed interest on convertible debt, equity component amortization on convertible debt and others |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,926 |
|
|
— |
| |||||||||||||||
|
[7] Amortization of debt issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
950 |
|
|
— |
| |||||||||||||||
|
[8] Amortization of Intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
54,849 |
|
|
|
|
— |
|
|
— |
|
|
— |
| ||||||||||||||||
|
[9] (Gain) related to investment in Deca Technologies |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(112,774) |
|
|
— |
|
|
— |
| |||||||||||||||
|
[10] Impairment related to assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
35,259 |
|
|
— |
|
|
— |
|
|
— |
| |||||||||||||||
|
[11] Restructuring costs, including executive severance |
|
— |
|
|
— |
|
|
7,970 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||||||||||
|
[12] Tax impact of Non-GAAP adjustments |
|
— |
|
|
— |
|
|
(179) |
|
|
— |
|
|
— |
|
|
— |
|
|
(55) |
|
|
(4) |
| |||||||||||||||
|
Non - GAAP [ii] |
|
$ |
315,326 |
|
|
$ |
80,528 |
|
|
$ |
63,333 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
14,310 |
|
|
$ |
(3,308) |
| |||||||
|
Impact of reconciling items [ii - i] |
|
$ |
(9,899) |
|
|
$ |
(14,883) |
|
|
$ |
(28,846) |
|
|
$ |
(54,849) |
|
|
$ |
(35,259) |
|
|
$ |
112,774 |
|
|
$ |
(6,847) |
|
|
$ |
(4) |
| |||||||
|
Table D: GAAP to Non-GAAP reconciling items (Three Months Ended Q4 2015)
| ||||||||||||||||||||||||
|
|
|
Cost of revenues |
|
Research and development |
|
SG&A |
|
Amortization of Intangible assets |
|
Interest and other expense, net |
|
Income tax (provision) benefit | ||||||||||||
|
GAAP [i] |
|
$ |
306,881 |
|
|
$ |
73,682 |
|
|
$ |
86,791 |
|
|
$ |
33,959 |
|
|
$ |
(5,886) |
|
|
$ |
(15,726) |
|
|
[1] Stock based compensation, including costs related to modification of equity awards |
|
3,321 |
|
|
6,270 |
|
|
12,519 |
|
|
— |
|
|
— |
|
|
— |
| ||||||
|
[2] Changes in value of deferred compensation plan |
|
53 |
|
|
102 |
|
|
313 |
|
|
— |
|
|
(785) |
|
|
— |
| ||||||
|
[3] Merger, integration and related costs |
|
19,330 |
|
|
981 |
|
|
9,351 |
|
|
— |
|
|
— |
|
|
— |
| ||||||
|
[4] Inventory Step-up related to acquisition accounting |
|
9,231 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||
|
[5] Losses from equity method investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,330 |
|
|
— |
| ||||||
|
[6] Amortization of Intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
33,959 |
|
|
— |
|
|
— |
| ||||||
|
[7] Imputed interest on Convertible debt and others |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
726 |
|
|
— |
| ||||||
|
[8] Restructuring costs, including executive severance |
|
— |
|
|
— |
|
|
1,406 |
|
|
— |
|
|
— |
|
|
— |
| ||||||
|
[9] Tax impact of Non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(153) |
|
|
12,653 |
| ||||||
|
Non - GAAP [ii] |
|
$ |
274,946 |
|
|
$ |
66,329 |
|
|
$ |
63,202 |
|
|
$ |
— |
|
|
$ |
(3,768) |
|
|
$ |
(3,073) |
|
|
Impact of reconciling items [ii - i] |
|
$ |
(31,935) |
|
|
$ |
(7,353) |
|
|
$ |
(23,589) |
|
|
$ |
(33,959) |
|
|
$ |
2,118 |
|
|
$ |
12,653 |
|
|
Table E: GAAP to Non-GAAP reconciling items (Twelve Months Ended Q4 2016)
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
|
|
|
Cost of revenues |
|
Research and development |
|
SG&A |
|
Goodwill impairment charge |
|
(Gain) related to investment in Deca Technologies |
|
Amortization of Intangible assets |
|
Impairment related to assets held for sale |
|
Impairment of acquisition related intangibles |
|
Interest and other expense, net |
|
Income tax provision | ||||||||||||||||||||
|
GAAP [i] |
|
$ |
1,237,974 |
|
|
$ |
331,737 |
|
|
$ |
343,514 |
|
|
488,504 |
|
|
(112,774) |
|
|
$ |
174,745 |
|
|
37,219 |
|
|
$ |
33,944 |
|
|
$ |
(72,523) |
|
|
$ |
(2,616) |
| |||
|
[1] Stock based compensation, including costs related to modification of equity awards |
|
21,366 |
|
|
41,528 |
|
|
42,374 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||||||
|
[2] Changes in value of deferred compensation plan |
|
288 |
|
|
884 |
|
|
1,889 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,326) |
|
|
— |
| ||||||||||
|
[3] Merger, integration and related costs |
|
17,927 |
|
|
3,106 |
|
|
28,819 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||||||
|
[4] Inventory Step-up related to acquisition accounting |
|
13,264 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
— |
| |||||||||||
|
[5] Losses from equity method investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17,644 |
|
|
— |
| ||||||||||
|
[6] Amortization of Intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
174,745 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||||||
|
[7] Imputed interest on Convertible debt and others |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8,306 |
|
|
— |
| ||||||||||
|
[8] Amortization of debt issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,961 |
|
|
— |
| ||||||||||
|
[9] (Gain) related to investment in Deca Technologies |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(112,774) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||||||
|
[10] Impairment related to assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
37,219 |
|
|
— |
|
|
— |
|
|
— |
| ||||||||||
|
[11] Goodwill impairment charge |
|
— |
|
|
— |
|
|
— |
|
|
488,504 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||||||
|
[12] Impairment of acquisition related intangibles |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
33,944 |
|
|
— |
|
|
— |
| ||||||||||
|
[13] Restructuring costs, including executive severance and other charges |
|
— |
|
|
— |
|
|
30,631 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| ||||||||||
|
[14] Tax impact of Non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(640) |
|
|
(10,687) |
| ||||||||||
|
Non - GAAP [ii] |
|
$ |
1,185,129 |
|
|
$ |
286,219 |
|
|
$ |
239,801 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(47,578) |
|
|
$ |
(13,303) |
|
|
Impact of reconciling items [ii - i] |
|
$ |
(52,845) |
|
|
$ |
(45,518) |
|
|
$ |
(103,713) |
|
|
$ |
(488,504) |
|
|
$ |
112,774 |
|
|
$ |
(174,745) |
|
|
$ |
(37,219) |
|
|
$ |
(33,944) |
|
|
$ |
24,945 |
|
|
$ |
(10,687) |
|
|
Table F: GAAP to Non-GAAP reconciling items (Twelve Months Ended Q4 2015)
|
|
|
|
| ||||||||||||||||||||||||
|
|
|
Cost of revenues |
|
Research and development |
|
SG&A |
|
Gain on Divestiture |
|
Amortization of Intangible assets |
|
Interest and other expense, net |
|
Income tax (provision) benefit | ||||||||||||||
|
GAAP [i] |
|
1,207,850 |
|
|
281,391 |
|
|
413,654 |
|
|
(66,472) |
|
|
108,335 |
|
|
(27,273) |
|
|
(16,960) |
| |||||||
|
[1] Stock based compensation, including costs related to modification of equity awards |
|
15,699 |
|
|
26,373 |
|
|
51,457 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[2] Changes in value of deferred compensation plan |
|
(38) |
|
|
(233) |
|
|
(260) |
|
|
— |
|
|
— |
|
|
1,353 |
|
|
— |
| |||||||
|
[3] Merger, integration and related costs |
|
54,733 |
|
|
2,681 |
|
|
39,939 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[4] Inventory Step-up related to acquisition accounting |
|
84,297 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[5] Losses from equity method investments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7,148 |
|
|
— |
| |||||||
|
[6] Amortization of Intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
108,335 |
|
|
— |
|
|
— |
| |||||||
|
[7] Imputed interest on Convertible debt and others |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8,256 |
|
|
| ||||||||
|
[8] Gain on divestiture |
|
— |
|
|
— |
|
|
— |
|
|
(66,472) |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[9] Restructuring and other charges |
|
73 |
|
|
326 |
|
|
91,320 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| |||||||
|
[10] Tax impact of Non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,344) |
|
|
7,006 |
| |||||||
|
Non - GAAP [ii] |
|
$ |
1,053,086 |
|
|
$ |
252,244 |
|
|
$ |
231,198 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(11,860) |
|
|
$ |
(9,954) |
|
|
Impact of reconciling items [ii - i] |
|
$ |
(154,764) |
|
|
$ |
(29,147) |
|
|
$ |
(182,456) |
|
|
$ |
66,472 |
|
|
$ |
(108,335) |
|
|
$ |
15,413 |
|
|
$ |
7,006 |
|
|
Table G: Operating income (loss) |
|
Three Months Ended |
|
Twelve Months Ended | ||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 |
|
Q4'16 |
|
Q4'15 | ||||||||||
|
GAAP operating income (loss) [i] |
|
$ |
(38,376) |
|
|
$ |
33,696 |
|
|
$ |
(51,185) |
|
|
$ |
(611,755) |
|
|
$ |
(336,905) |
|
|
Impact of reconciling items on Revenue (see Table A) |
|
|
|
6,250 |
|
|
6,250 |
|
|
18,750 |
|
|
18,750 |
| ||||||
|
Impact of reconciling items on Cost of revenues (see Table B, C, D, E, F) |
|
10,626 |
|
|
9,899 |
|
|
31,935 |
|
|
52,845 |
|
|
154,764 |
| |||||
|
Impact of reconciling items on R&D (see Table B, C, D, E, F) |
|
17,310 |
|
|
14,883 |
|
|
7,353 |
|
|
45,518 |
|
|
29,147 |
| |||||
|
Impact of reconciling items on SG&A (see Table B, C, D, E, F) |
|
34,957 |
|
|
28,846 |
|
|
23,589 |
|
|
103,713 |
|
|
182,456 |
| |||||
|
Impact of Amortization of Intangible Assets (see Table B,C, D, E, F) |
|
52,104 |
|
|
54,849 |
|
|
33,959 |
|
|
174,745 |
|
|
108,335 |
| |||||
|
Impact of Goodwill impairment charge (see Table E) |
|
— |
|
|
— |
|
|
— |
|
|
488,504 |
|
|
— |
| |||||
|
Impact of Impairment related to assets held for sale (see Table B, C, E) |
|
1,960 |
|
|
35,259 |
|
|
— |
|
|
37,219 |
|
|
— |
| |||||
|
Impact of Impairment related to acquisition related intangibles (see Table E) |
|
— |
|
|
— |
|
|
— |
|
|
33,944 |
|
|
— |
| |||||
|
Gain from divestiture transaction (see Table F) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(66,472) |
| |||||
|
(Gain) related to investment in Deca Technologies (see Table C, E) |
|
— |
|
|
(112,774) |
|
|
— |
|
|
(112,774) |
|
|
— |
| |||||
|
Non-GAAP operating income [ii] |
|
$ |
78,581 |
|
|
$ |
70,908 |
|
|
$ |
51,901 |
|
|
$ |
230,709 |
|
|
$ |
90,075 |
|
|
Impact of reconciling items [ii - i] |
|
$ |
116,957 |
|
|
$ |
37,212 |
|
|
$ |
103,086 |
|
|
$ |
842,464 |
|
|
$ |
426,980 |
|
|
Table H: Pre-tax profit |
|
Three Months Ended |
|
Twelve Months Ended | ||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 |
|
Q4'16 |
|
Q4'15 | ||||||||||
|
GAAP Pre-tax profit |
|
$ |
(71,531) |
|
|
$ |
12,539 |
|
|
$ |
(57,071) |
|
|
$ |
(684,278) |
|
|
$ |
(364,178) |
|
|
Impact of reconciling items on Operating income (see Table G) |
|
116,957 |
|
|
37,212 |
|
|
103,086 |
|
|
842,464 |
|
|
426,980 |
| |||||
|
Interest and other expense, net (see Table B,C, D, E, F) |
|
11,675 |
|
|
6,847 |
|
|
2,118 |
|
|
24,945 |
|
|
15,413 |
| |||||
|
Non-GAAP Pre-tax income |
|
$ |
57,101 |
|
|
$ |
56,598 |
|
|
$ |
48,133 |
|
|
$ |
183,131 |
|
|
$ |
78,215 |
|
|
Table I: Net income (loss) |
|
Three Months Ended |
|
Twelve Months Ended | ||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 |
|
Q4'16 |
|
Q4'15 | ||||||||||
|
GAAP Net income (loss) |
|
$ |
(72,367) |
|
|
$ |
9,411 |
|
|
$ |
(72,330) |
|
|
$ |
(686,251) |
|
|
$ |
(378,867) |
|
|
Impact of reconciling items on Operating income (see Table G)
|
|
116,957 |
|
|
37,212 |
|
|
103,086 |
|
|
842,464 |
|
|
426,980 |
| |||||
|
Interest and other expense, net (see Table B,C, D, E, F) |
|
11,675 |
|
|
6,847 |
|
|
2,118 |
|
|
24,945 |
|
|
15,413 |
| |||||
|
Income tax (provision) benefit (see Table B,C,D,E,F) |
|
(2,442) |
|
|
(4) |
|
|
12,653 |
|
|
(10,687) |
|
|
7,006 |
| |||||
|
Non-GAAP Net income |
|
$ |
53,823 |
|
|
$ |
53,467 |
|
|
$ |
45,527 |
|
|
$ |
170,471 |
|
|
$ |
70,532 |
|
|
Table J: Margin % |
|
Three Months Ended | ||||||||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 | ||||||||||||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP | ||||||||||||
|
Revenue (See Table A) [i] |
|
$ |
530,172 |
|
|
$ |
530,172 |
|
|
$ |
523,845 |
|
|
$ |
530,095 |
|
|
$ |
450,128 |
|
|
$ |
456,378 |
|
|
Cost of revenues (See Table B, C, D) [ii] |
|
328,220 |
|
|
317,594 |
|
|
325,225 |
|
|
315,326 |
|
|
306,881 |
|
|
274,946 |
| ||||||
|
Margin [iii] [ii - i] |
|
$ |
201,952 |
|
|
$ |
212,578 |
|
|
$ |
198,620 |
|
|
$ |
214,769 |
|
|
$ |
143,247 |
|
|
$ |
181,432 |
|
|
Margin % [iii / i] |
|
38.1 |
% |
|
40.1 |
% |
|
37.9 |
% |
|
40.5 |
% |
|
31.8 |
% |
|
39.8 |
% | ||||||
|
Table K: Margin % |
|
Twelve Months Ended | ||||||||||||||
|
|
|
Q4'16 |
|
Q4'15 | ||||||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP | ||||||||
|
Revenue (See Table A) [i] |
|
$ |
1,923,108 |
|
|
$ |
1,941,858 |
|
|
$ |
1,607,853 |
|
|
$ |
1,626,603 |
|
|
Cost of revenues (See Table E, F) [ii] |
|
1,237,974 |
|
|
1,185,129 |
|
|
1,207,850 |
|
|
1,053,086 |
| ||||
|
Margin [iii] [ii - i] |
|
$ |
685,135 |
|
|
$ |
756,730 |
|
|
$ |
400,003 |
|
|
$ |
573,517 |
|
|
Margin % [iii / i] |
|
35.6 |
% |
|
39.0 |
% |
|
24.9 |
% |
|
35.3 |
% | ||||
|
Table L: Pretax profit margin % |
|
Three Months Ended | ||||||||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 | ||||||||||||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP | ||||||||||||
|
Revenue (See Table A) [i] |
|
$ |
530,172 |
|
|
$ |
530,172 |
|
|
$ |
523,845 |
|
|
$ |
530,095 |
|
|
$ |
450,128 |
|
|
$ |
456,378 |
|
|
Pre-tax profit (see Table H) [ii] |
|
$ |
(71,531) |
|
|
$ |
57,101 |
|
|
$ |
12,539 |
|
|
$ |
56,598 |
|
|
(57,071) |
|
|
48,133 |
| ||
|
Pre-tax profit margin % [ii / i] |
|
(13.5)% |
|
|
10.8 |
% |
|
2.4 |
% |
|
10.7 |
% |
|
(12.7)% |
|
|
10.5 |
% | ||||||
|
Table M: Pretax profit margin % |
|
Twelve Months Ended | ||||||||||||||
|
|
|
Q4'16 |
|
Q4'15 | ||||||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP | ||||||||
|
Revenue (See Table A) [i] |
|
$ |
1,923,108 |
|
|
$ |
1,941,858 |
|
|
$ |
1,607,853 |
|
|
$ |
1,626,603 |
|
|
Pre-tax profit (see Table H) [ii] |
|
$ |
(684,278) |
|
|
$ |
183,131 |
|
|
$ |
(364,178) |
|
|
$ |
78,215 |
|
|
Pre-tax profit margin % [ii / i] |
|
(35.6)% |
|
|
9.4 |
% |
|
(22.6)% |
|
|
4.8 |
% | ||||
|
Table N: Weighted-average shares, diluted |
|
Three Months Ended |
| ||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 |
| ||||||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
| ||||||
|
Weighted-average common shares outstanding, basic |
|
322,800 |
|
|
322,800 |
|
|
321,276 |
|
|
321,276 |
|
|
334,447 |
|
|
334,447 |
|
|
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Stock options, unvested restricted stock and other |
|
— |
|
|
17,199 |
|
|
7,017 |
|
|
14,008 |
|
|
— |
|
|
15,363 |
|
|
|
Impact of convertible bond |
|
— |
|
|
15,138 |
|
|
15,425 |
|
|
15,425 |
|
|
— |
|
|
12,419 |
|
|
|
Weighted-average common shares outstanding, diluted |
|
322,800 |
|
|
355,137 |
|
|
343,718 |
|
|
350,709 |
|
|
334,447 |
|
|
362,229 |
|
|
|
Table O: Weighted-average shares, diluted |
|
Twelve Months Ended | ||||||||||
|
|
|
Q4'16 |
|
Q4'15 | ||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP | ||||
|
Weighted-average common shares outstanding, basic |
|
319,522 |
|
|
319,522 |
|
|
302,036 |
|
|
302,036 |
|
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
| ||||
|
Stock options, unvested restricted stock and other |
|
— |
|
|
15,370 |
|
|
— |
|
|
21,223 |
|
|
Impact of convertible bond |
|
— |
|
|
15,138 |
|
|
— |
|
|
12,419 |
|
|
Weighted-average common shares outstanding, diluted |
|
319,522 |
|
|
350,030 |
|
|
302,036 |
|
|
335,678 |
|
|
Table P: Net income (loss) Per Share |
|
Three Months Ended | ||||||||||||||||||||||
|
|
|
Q4'16 |
|
Q3'16 |
|
Q4'15 | ||||||||||||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP | ||||||||||||
|
Net income (loss) (see Table I) |
|
$ |
(72,367) |
|
|
$ |
53,823 |
|
|
$ |
9,411 |
|
|
$ |
53,467 |
|
|
$ |
(72,330) |
|
|
$ |
45,527 |
|
|
Weighted-average common shares outstanding (see Table N) [ii] |
|
322,800 |
|
|
355,137 |
|
|
343,718 |
|
|
350,709 |
|
|
334,447 |
|
|
362,229 |
| ||||||
|
Non-GAAP earnings per share - Diluted [i/ii] |
|
$ |
(0.22) |
|
|
$ |
0.15 |
|
|
$ |
0.03 |
|
|
$ |
0.15 |
|
|
$ |
(0.22) |
|
|
$ |
0.13 |
|
|
Table Q: Net income (loss) Per Share |
|
Twelve Months Ended | ||||||||||||||
|
|
|
Q4'16 |
|
Q4'15 | ||||||||||||
|
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP | ||||||||
|
Net income (loss) (see Table I) |
|
$ |
(686,251) |
|
|
$ |
170,471 |
|
|
$ |
(378,867) |
|
|
$ |
70,532 |
|
|
Weighted-average common shares outstanding (see Table O) [ii] |
|
319,522 |
|
|
350,030 |
|
|
302,036 |
|
|
335,678 |
| ||||
|
Non-GAAP earnings per share - Diluted [i/ii] |
|
$ |
(2.15) |
|
|
$ |
0.49 |
|
|
$ |
(1.25) |
|
|
$ |
0.21 |
|
|
CYPRESS SEMICONDUCTOR CORPORATION SUPPLEMENTAL FINANCIAL DATA (In thousands) (Unaudited) | ||||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended | ||||||||||||||||
|
|
|
January 1, 2017 |
|
October 2, 2016 |
|
January 3, 2016 |
|
January 1, 2017 |
|
January 3, 2016 | ||||||||||
|
Selected Cash Flow Data (Preliminary): |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Net cash provided by operating activities |
|
$ |
89,787 |
|
|
$ |
105,130 |
|
|
$ |
42,094 |
|
|
$ |
217,419 |
|
|
$ |
8,801 |
|
|
Net cash used in investing activities |
|
$ |
(19,008) |
|
|
$ |
(560,248) |
|
|
$ |
(24,351) |
|
|
$ |
(613,438) |
|
|
$ |
(79,088) |
|
|
Net cash (used in) provided by financing activities |
|
$ |
(37,262) |
|
|
$ |
353,441 |
|
|
$ |
15,188 |
|
|
$ |
289,502 |
|
|
$ |
193,240 |
|
|
Other Supplemental Data (Preliminary): |
|
|
|
|
|
|
|
|
|
| ||||||||||
|
Capital expenditures |
|
$ |
11,889 |
|
|
$ |
19,695 |
|
|
$ |
9,227 |
|
|
$ |
57,398 |
|
|
$ |
47,206 |
|
|
Depreciation |
|
$ |
16,057 |
|
|
$ |
19,454 |
|
|
$ |
39,443 |
|
|
$ |
89,464 |
|
|
$ |
126,496 |
|
|
Payment of dividend |
|
$ |
35,350 |
|
|
$ |
35,240 |
|
|
$ |
36,914 |
|
|
$ |
141,410 |
|
|
$ |
127,995 |
|
|
Dividend paid per share |
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
|
CYPRESS SEMICONDUCTOR CORPORATION RECONCILIATION OF GAAP FORWARD 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 % |
|
37% +/- 50 bps |
|
— |
% |
|
1.3 |
% |
|
— |
% |
|
0.4 |
% |
|
39% +/- 50 bps | ||||
|
Diluted earnings per share |
|
$(0.22) to $(0.18) |
|
$ |
0.15 |
|
|
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$0.09 to $0.13 |
To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/cypress-reports-fourth-quarter-and-year-end-2016-results-300401589.html
SOURCE Cypress
| Contact: |
| Cypress
Thad Trent, EVP Finance & Administration and CFO, (408) 943-2925; Joseph L. McCarthy, Director, Corporate Communications, (408) 943-2902 Web: http://www.cypress.com |
