Cypress Semiconductor Corp. (NASDAQ: CY) today provided preliminary,
unaudited fourth quarter financial results.
“The anemic macro environment impacting the semiconductor industry
continued in Q4, and in the last two weeks of December we saw further
weakness, mainly within our distribution channels, as customers across
all geographies and end markets purchased less product than previously
was forecasted by our distribution partners,” said Brad Buss, Executive
Vice President and Chief Financial Officer. “This resulted in a negative
impact to Q4 revenue that was greater than we expected.
“All divisions will decline sequentially from Q3 and were weaker than
originally expected. We have seen customer backlog stabilize over the
last two weeks and we believe that Q1 will be the bottom for revenue and
bookings. However, the macro environment remains very fluid with
lead-times near historical lows. This continues to impact the visibility
for our distribution partners and us.”
Our preliminary, consolidated fourth-quarter 2012 financial results,
which include Ramtron, are as follows:
-
Consolidated revenue of $177 million to $179 million.
-
Non-GAAP fully diluted earnings per share of $0.03 to $0.04, which is
lower than our prior forecast due to lower revenue and lower gross
margins due to product mix, lower manufacturing absorption and
inventory related charges.
-
GAAP loss per basic share of ($0.20) to ($0.22) due to lower revenue
and gross margins offset by lower than previously expected stock-based
compensation charges and one-time charges as expected related to the
Ramtron acquisition.
“It is important to note that we are early in our financial close
process and as a result, the GAAP figure provided above is unaudited,
and estimated based on the information available to us today and subject
to change as a result of the ongoing purchase accounting adjustments
related to our Ramtron acquisition.
“We continue to remain optimistic about our competitive positioning, our
design-win penetration and our new product offerings,” Buss concluded.
“We expect that as macro demand improves, and we continue to proactively
manage our cost structure, we will be in a position to increase the
financial leverage in our operating model.”
No conference call will be held in conjunction with this financial
update. Additional information will be provided when the Company reports
its fourth quarter 2012 results on January 24, 2013 at 8:30 a.m. Pacific
Daylight Time. All interested parties are requested to contact
408-943-2113 no later than Monday, January 21 to reserve a position for
the quarterly conference call. The event will be broadcast over the
Internet and can be accessed through Cypress’s website at www.cypress.com/investors.
The archived presentation will be available for two weeks immediately
following the event. Full text of the press release and supplemental
financial information will be made available on First Call and the
Cypress website on the morning of the conference call.
About Cypress
Cypress delivers high-performance, mixed-signal, programmable solutions
that provide customers with rapid time-to-market and exceptional system
value. Cypress offerings include the flagship PSoC® 1, PSoC 3, and PSoC
5 programmable system-on-chip families and derivatives, CapSense® touch
sensing and TrueTouch® solutions for touchscreens. Cypress is the world
leader in USB controllers, including the high-performance West Bridge®
solution that enhances connectivity and performance in multimedia
handsets, PCs, and tablets. Cypress is also the world leader in SRAM
memories. Cypress serves numerous markets including consumer, mobile
handsets, computation, data communications, automotive, industrial, and
military. Cypress trades on the NASDAQ Global Select Market under the
ticker symbol CY. Visit Cypress online at www.cypress.com.
Safe Harbor
Statements made in this release that are not historical in nature and
that refer to Cypress plans and expectations for the future, including
but not limited to the Company’s future financial performance and
results of operations, future consumer demand, design-win penetration,
cost-management strategies, competitive position and product offerings,
set forth above are forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. Our actual
results may differ materially due a variety of factors, including but
not limited to the risks identified in this press release as well as in
our filings with the Securities and Exchange Commission. All
forward-looking statements included in this release are based upon
information available to Cypress as of the date of this release, which
may change, and we assume no obligation to update any such
forward-looking statement. We use words such as “anticipates,”
“believes,” “expects,” “future,” “look forward,” “planning,” “intends”
and similar expressions to identify such forward-looking statements.
Cypress’s preliminary results announced in this press release are
based on preliminary information about the fourth quarter of fiscal 2012
and are subject to revision. Although the quarter is now completed,
Cypress is still in the early stages of its standard financial reporting
closing procedures. Accordingly, as Cypress completes its normal
quarter-end closing and review processes, actual results could differ
materially from these preliminary estimates. Factors that could cause
Cypress’s actual results to differ materially from those contained in
such forward-looking statements include: inaccurate data or assumptions;
unforeseen expenses; changes in estimates or judgments related to
accruals or other income statement or balance sheet items; bad debts or
other contingencies; and facts or circumstances affecting the
application of Cypress’s critical accounting policies, including revenue
recognition.
