Our planned merger with Spansion has cleared review by the government agencies in the U.S. and Germany. We remain confident that the post-merger company will position us as a leading global provider of microcontrollers, flash and SRAM memories, and automotive components required for today's embedded systems.
BUSINESS REVIEW
+ Our non-GAAP consolidated gross margin for the fourth quarter was 52.4%, down 1.1 percentage points from the previous quarter, primarily due to product and customer mix. Excluding our Emerging Technologies Division, our core semiconductor gross margin was 54.6%.
+ Net inventory at the end of the fourth quarter was $88.2 million, down 0.6% from the third quarter.
+ Cypress announced that its Board of Directors approved a quarterly cash dividend of $0.11 per share, payable to holders of record of the company's common stock as of the close of business on December 26, 2014. This dividend was paid on January 15, 2015.
NET SALES SUMMARY
(In thousands, except percentages)
(Unaudited)
THREE MONTHS ENDED
--------------------------------
Dec. 28, Sept. 28, Dec. 29, Sequential Year-over-
Business Unit 2014 2014 2013 Change Year Change
---------- ---------- ---------- ---------- -----------
PSD(1) $ 70,433 $ 68,750 $ 67,746 2% 4%
MPD(1) $ 88,803 $ 92,179 $ 79,890 -4% 11%
DCD(1) $ 17,709 $ 19,091 $ 16,482 -7% 7%
ETD (2) $ 7,152 $ 7,496 $ 3,658 -5% 96%
---------- ---------- ---------- ---------- -----------
Total $ 184,097 $ 187,516 $ 167,776 -2% 10%
---------- ---------- ---------- ---------- -----------
Geographic
China and ROW 60% 60% 64% 0% -6%
Americas 16% 17% 14% -6% 14%
Europe 14% 14% 12% 0% 17%
Japan 10% 9% 10% 11% 0%
---------- ---------- ---------- ---------- -----------
Total 100% 100% 100% 0% 0%
---------- ---------- ---------- ---------- -----------
Channel
Distribution 71% 68% 69% 4% 3%
Direct 29% 32% 31% -9% -6%
---------- ---------- ---------- ---------- -----------
Total 100% 100% 100% 0% 0%
---------- ---------- ---------- ---------- -----------
1. PSD, Programmable Systems Division; DCD, Data Communications Division;
MPD, Memory Products Division.
2. ETD, Emerging Technologies Division includes businesses outside our core
semiconductor businesses outlined in Footnote 1. Includes subsidiaries
AgigA Tech Inc., Deca Technologies Inc., and our foundry business unit.
TWELVE MONTHS ENDED
----------------------
Dec. 28, Dec. 29, Year-over-
Business Unit 2014 2013 Year Change
---------- ---------- -----------
PSD(1) $ 283,206 $ 292,707 -3%
MPD(1) $ 347,903 $ 338,986 3%
DCD(1) $ 70,378 $ 79,410 -11%
ETD (2) $ 24,010 $ 11,590 107%
---------- ---------- -----------
Total $ 725,497 $ 722,693 0.4%
---------- ---------- -----------
Geographic
China and ROW 61% 66% -8%
Americas 16% 14% 14%
Europe 14% 11% 27%
Japan 9% 9% 0%
---------- ---------- -----------
Total 100% 100% 0%
---------- ---------- -----------
Channel
Distribution 69% 73% -5%
Direct 31% 27% 15%
---------- ---------- -----------
Total 100% 100% 0%
---------- ---------- -----------
1. PSD, Programmable Systems Division; DCD, Data Communications Division;
MPD, Memory Products Division.
2. ETD, Emerging Technologies Division includes businesses outside our core
semiconductor businesses outlined in Footnote 1. Includes subsidiaries
AgigA Tech Inc., Deca Technologies Inc., and our foundry business unit.
