This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cypress Reports Second-Quarter 2013 Results

I am pleased to announce that we achieved first revenue on our new PSoC ® 4 product just 90 days after its launch—making PSoC 4 the fastest overall new product ramp in Cypress’s history. We have also shipped more than 5,000 PSoC 4 development kits, a strong leading indicator of future demand.

We ended the second quarter with a book-to-bill of 1.05 despite having our lowest lead times in five years. We thus expect our revenue to grow again sequentially in the third quarter and with continued strong earnings leverage.

Finally, I am proud to announce that our products won four awards last quarter. Embedded Computing Design magazine named PSoC 4 an “Editor’s Choice Product” in May, and our fourth-generation touchscreen chip, Gen4, won in June. PSoC 4 also won the 19 th annual “Product of the Year” award given by Japan’s Semiconductor Industry News. Finally, Cypress subsidiary AgigA Tech received a gold medal for its nonvolatile memory systems in the renowned Edison Awards.


+ Our non-GAAP consolidated gross margin for the second quarter was 53.1%, up 2.4 percentage points from the previous quarter, due mainly to improvement in factory utilization and product and customer mix. Our second-quarter GAAP consolidated gross margin was 47.3%.

+ Net inventory at the end of the second quarter was $98.6 million, down $10.6 million, or 9.7% from the first quarter, driven down by an active corporate initiative. This figure includes $27.3 million of inventory acquired from Ramtron.

+ Cash and investments for the second quarter totaled $102.0 million, flat from the prior quarter. During the quarter we used $16.1 million to pay our regular quarterly dividend and $9.7 million to pay down debt.


(In thousands, except percentages)



June 30,

March 31,
  July 1,   Sequential   Year-over-

Business Unit





Year Change
PSD 1 $81,320 $65,505 $93,248

24% -13%
MPD 1 $88,127 $82,229 $82,949 7% 6%
DCD 1 $21,296 $22,747 $23,273 -6% -8%
ETD 1, 2 $2,723 $2,247 $1,830 21% 49%
Total $193,466 $172,728 $201,300 12% -4%

China and ROW 69% 64% 65% 5% 4%
Americas 13% 17% 17% -4% -4%
Europe 10% 11% 9% -1% 1%
Japan 8% 8% 9% 0% -1%
Total 100% 100% 100% 0% 0%

Distribution 75% 74% 76% 1% -1%
Direct 25% 26% 24% -1% 1%
Total 100% 100% 100% 0% 0%



PSD, Programmable Systems Division; DCD, Data Communications Division; MPD, Memory Products Division: ETD, Emerging Technology Division.


“Emerging Technology” includes businesses outside our core semiconductor businesses outlined in Footnote 1. Includes subsidiaries AgigA Tech Inc., Deca Technologies Inc., and our foundry business unit.


+ Cypress introduced the first two product families based on its PSoC 4 programmable system-on-chip architecture: the PSoC 4100 and PSoC 4200 families. The new families provide an entire mixed-signal embedded system chip with a 32-bit ARM ® Cortex™-M0 core for prices as low as $1. The PSoC 4100 family, the lowest-cost ARM-based PSoC, brings PSoC flexibility and integration to cost-sensitive, high-volume applications. The PSoC 4200 family features a faster processor, a 36-button CapSense block, four programmable logic blocks to create custom digital functions, programmable analog blocks for variable-gain amplifiers and configurable filters, programmable serial interfaces, programmable input/output pins, and multiple programmable timers, counters and waveform generators—all on a chip one-tenth the size of an average little fingernail.

+ Cypress’s new PSoC 3 MFi Digital Audio Development Kit helps the designers of MFi (Made for iPod | iPhone | iPad) mobile devices and accessories to accelerate designs that use Apple’s new, all-digital Lightning connector. PSoC-based digital audio solutions ensure bit-perfect audio streaming with no added or dropped audio samples. PSoC is the de facto standard for digital audio in the music industry, providing Cypress with a strong position in the fast-growing, $7 billion MFi accessory market.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs