Cypress Announces Second Quarter 2019 Financial Results

Cypress Semiconductor, Inc. (NASDAQ: CY), San Jose, Calif., today announced financial results for the second quarter of fiscal 2019.

Revenue of $532.2 million, down 1.3% sequentially (adjusted for the sale of the NAND business completed on April 1, 2019)
increased by 4.8% QoQ)
GAAP and non-GAAP gross margins of 37.3% and 47.0%, respectively
GAAP and non-GAAP diluted earnings per share (EPS) of $-0.03 and $0.25, respectively

Hassane El-Khoury, President and Chief Executive Officer of Cypress, said, "the Company second quarter performance was strong, with revenue, gross margin and diluted EPS all within the Company expectations. Cypress' world-class connectivity and computing solutions continued to gain momentum, particularly in IoT, where standalone Bluetooth products and strong Wi-Fi/Bluetooth combo products drove strong Q2 sales. Sales of our automotive products increased 30% quarter-on-quarter, and our performance continues to be strong, with the number of applications for the Company automotive products growing faster than the number of vehicles produced. Second quarter sales were up both year-over-year and quarter-over-quarter."

As announced on June 3, 2019, Infineon Technologies (FSE: IFX/OTCQX: IFNNY, hereinafter Infineon) and Cypress have signed a merger agreement and plan. Infineon intends to acquire Cypress for $23.85 in cash per share, given that Cypress is valued at approximately $10 billion. We see great potential in the high-growth fields of automotive and IoT due to the Company product line, which is highly complementary in nature. We also refrained from disclosing earnings forecasts.

Sales and earnings for the quarter, along with historical comparative figures, are presented below.
(Unit: thousand, excluding figures per share)

Year-to-date sales and earnings, along with historical comparative figures, are presented below.
(Unit: thousand, excluding figures per share)

1. For more information, please refer to the English language release "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" ("Non-GAAP Reconciliation of Differences").

Sales overview

1. Microcontrollers and Connectivity Division (“MCD”) includes Microcontrollers, Wireless Connectivity and USB products; Memory Products Division (“MPD”) includes RAM, Flash and AgigA Tech products. increase.
2. MPD sales for the quarter ended June 30, 2019 reflected the sale of the the Company 's NAND business to a newly formed joint venture. The sale was completed on April 1, 2019.