SAN JOSE, Calif. — (BUSINESS WIRE) — October 25, 2018 — Cypress Semiconductor Corporation (NASDAQ: CY), a leader in embedded solutions, today announced its third quarter 2018 results with the following highlights:
- Record revenue of $673.0 million, a 7.8% increase sequentially and 11.3% year-over-year
- GAAP and non-GAAP gross margins were 38.6% and 47.0%, respectively, and represent a 390 bps and 400 bps increase year-over-year
- GAAP diluted EPS increased 10 cents to $0.14 and Non-GAAP diluted EPS increased 13 cents to $0.40 year-over-year
- Automotive revenue increased 8.3% sequentially and 12.8% year-over-year
“Cypress delivered another record quarter for revenue while continuing to expand gross margins, operating margins and cash flow due to our uncompromising focus on execution,” said Hassane El-Khoury, Cypress’ president and chief executive officer. “Our strategy and investments to advance our portfolio of highly-differentiated connect, compute and store solutions are paying off. We are seeing a strong design pipeline leading into the fourth quarter with design activity increasing 23% year-over-year. Our continued commitment to sharpen our focus, with moves such as today’s announcement of entering into a joint venture for our NAND Flash business, are positioning us well in our target high-growth markets of Automotive, Industrial and IoT.”
Revenue and earnings for the quarter are shown below with comparable periods:
(In thousands, except per-share data)
| GAAP1 | NON-GAAP2 | |||||||||||||||||||||||
| Q3 2018 | Q2 2018 | Q3 2017 | Q3 2018 | Q2 2018 | Q3 2017 | |||||||||||||||||||
| Revenue | $ | 673,035 | $ | 624,090 | $ | 604,574 | $ | 673,035 | $ | 624,090 | $ | 604,574 | ||||||||||||
| Gross margin | 38.6 | % | 37.5 | % | 34.7 | % | 47.0 | % | 46.3 | % | 43.0 | % | ||||||||||||
| Operating margin | 11.2 | % | 8.1 | % | 6.8 | % | 24.7 | % | 22.3 | % | 19.0 | % | ||||||||||||
| Net income (loss) | $ | 50,695 | $ | 27,706 | $ | 13,016 | $ | 152,725 | $ | 124,964 | $ | 98,980 | ||||||||||||
| Diluted EPS (loss) | $ | 0.14 | $ | 0.07 | $ | 0.04 | $ | 0.40 | $ | 0.33 | $ | 0.27 | ||||||||||||
