+ Inventory at the end of the third quarter was $247.7 million, up 12% from the second quarter of 2016, due to inventory from the Broadcom Wireless IoT acquisition and an increase in MCU inventory to support end-customer demand. The Company's lean inventory initiative has resulted in a net inventory reduction of $160 million, or 41%, since the closing of the Spansion merger.
+ Third quarter results include the impact of the Wireless IoT business from the close of the acquisition on July 5, 2016. The business is operationally integrated and contributed $62.6 million in revenue, above the high end of guidance.
+ 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 September 29, 2016. This dividend was paid on October 20, 2016.
|
| |||||||||||||||||||||
|
REVENUE SUMMARY (In thousands, except percentages) (Unaudited) | |||||||||||||||||||||
|
| |||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended | ||||||||||||||||||
|
|
(GAAP)3 |
|
(Non-GAAP)5 | ||||||||||||||||||
|
|
October 2, 2016 |
|
July 3, 2016 |
|
Sequential Change |
|
October 2, 2016 |
|
July 3, 2016 |
|
Sequential Change | ||||||||||
|
Business Unit |
|
|
|
|
|
|
|
|
|
| |||||||||||
|
PSD1 |
$ |
182,309 |
|
$ |
166,813 |
|
8% |
|
$ |
182,309 |
|
$ |
166,813 |
|
9% | ||||||
|
MPD1,3 |
233,398 |
|
238,130 |
|
(2%) |
|
239,648 |
|
244,380 |
|
(2%) | ||||||||||
|
DCD1 |
88,745 |
|
25,474 |
|
248% |
|
88,745 |
|
25,474 |
|
248% | ||||||||||
|
ETD2 |
19,393 |
|
19,710 |
|
(2%) |
|
19,393 |
|
19,710 |
|
(2%) | ||||||||||
|
Total |
$ |
523,845 |
|
$ |
450,127 |
|
16% |
|
$ |
530,095 |
|
$ |
456,377 |
|
16% | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
Geographic 4 |
|
|
|
|
|
|
|
|
|
| |||||||||||
|
China & ROW 3 |
56% |
|
52% |
|
8% |
|
55% |
|
52% |
|
6% | ||||||||||
|
Americas |
11% |
|
12% |
|
(8%) |
|
12% |
|
13% |
|
(8%) | ||||||||||
|
Europe |
12% |
|
15% |
|
(20%) |
|
12% |
|
15% |
|
(20%) | ||||||||||
|
Japan |
21% |
|
21% |
|
0% |
|
21% |
|
20% |
|
5% | ||||||||||
|
Total |
100% |
|
100% |
|
0% |
|
100% |
|
100% |
|
0% | ||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
Channel |
|
|
|
|
|
|
|
|
| ||||||||||||
|
Distribution 3 |
74% |
|
73% |
|
1% |
|
73% |
|
72% |
|
1% | ||||||||||
|
Direct |
26% |
|
27% |
|
(4%) |
|
27% |
|
28% |
|
(4%) | ||||||||||
|
Total |
100% |
|
100% |
|
0% |
|
100% |
|
100% |
|
0% | ||||||||||
- The Programmable Systems Division (PSD), Data Communications Division (DCD) and Memory Products Division (MPD), in aggregate, comprise the Company's core semiconductor business. For the period ended October 2, 2016 , DCD includes results from the IoT business acquired from Broadcom on July 5, 2016 .
- The Emerging Technologies Division (ETD) includes businesses outside the Company's core semiconductor business named in Footnote 1. ETD includes subsidiaries AgigA Tech Inc., Deca Technologies Inc. (Deca), and the Foundry Business Unit. Effective July 29, 2016 , the Company has discontinued consolidation of Deca as a consequence of an investment made by certain third party investors in Deca.
- GAAP revenue for the second and third quarters of 2016 excludes $6.25 million of non-GAAP licensing revenue in MPD, China and ROW region and direct channel.
- Prior quarter geographic numbers have been revised to conform to current period presentation.
- See "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures," below.
FOURTH QUARTER 2016 FINANCIAL OUTLOOK
