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.
BUSINESS REVIEW+ 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.
|NET SALES SUMMARY|
|(In thousands, except percentages)|
|THREE MONTHS ENDED|
|June 30,||March 31,||July 1,||Sequential||Year-over-|
|Business Unit||2013||2013||2012||Change||Year Change|
|ETD 1, 2||$2,723||$2,247||$1,830||21%||49%|
|China and ROW||69%||64%||65%||5%||4%|
|1.||PSD, Programmable Systems Division; DCD, Data Communications Division; MPD, Memory Products Division: ETD, Emerging Technology Division.|
|2.||“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.|
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