Cypress Reports Third-Quarter 2009 Results

Cypress recorded a GAAP net loss of $19.7 million in the 2009 third quarter, or a diluted net loss per share of $0.13. This compares with last quarter’s diluted net loss per share of $0.32 and diluted earnings per share in the year-ago third quarter of $0.86.

Non-GAAP1 net income for the 2009 third quarter—excluding stock-based compensation, acquisition-related charges, restructuring and other special charges and credits—totaled $19.2 million, or diluted earnings per share of $0.10. That compares with a non-GAAP1 diluted net loss per share of $0.03 for the prior quarter and diluted earnings per share of $0.15 for the year-ago third quarter.

Cypress President and CEO T.J. Rodgers said, “Third-quarter revenue increased 15% sequentially, building on the 12% revenue growth we achieved in Q2. We exceeded the upper end of our guidance due to strong growth in CCD and MID attributable to our programmable products and increased share gains in our high-performance SRAMs. CCD grew 26% sequentially, led by our PSoC® family and USB products.

“PSoC revenue benefitted from seasonal strength, new customers and continued strong increases in our touchscreen revenue as initial design wins began to ramp into production,” Rodgers said. “We continue to achieve significant proprietary product design wins—especially with our TrueTouch touchscreen products, and expect to continue capturing increased market share in SRAMs.

“Our non-GAAP gross margin of 51.9% exceeded the 2008 peak non-GAAP gross margin due to strong factory performance, a higher percentage of wafer starts from our foundry partners and a higher mix of programmable and proprietary products,” Rodgers continued. “Lead times have not increased and customer ordering patterns continue to remain fairly short, however, we are encouraged that customers are providing increased backlog visibility. Our Q3 book-to-bill was 1.21, driven by PSoC and SRAMs.

“Cypress and the industry have seen two strong quarters of revenue growth,” said Rodgers. “While we can’t predict where the macro economy will go, we are seeing more positive signs of end-market stability and continued low overall supply chain inventories. We remain very proactive in managing our cost structure and have a very solid balance sheet with $281 million in cash and investments with no debt. Customer acceptance of our new products remains very strong and we are pleased with high-profile design wins in many new end markets. In addition we recently launched our revolutionary PSoC 3 and PSoC 5 embedded solutions which increase the market addressed by PSoC from $1.5 billion to $15 billion.”