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© grzegorz kula dreamstime.com Components | January 29, 2013

T.J. Rodgers: 'We did not perform well in 2012.'

Cypress Semiconductor reports 4Q/2012 revenue of USD 180,283 thousand (non-GAAP), which compares to USD 203,015 thousand in 3Q/2012 and to USD 242,373 thousand in 4Q/2011.
"We did not perform well in 2012, including the fourth quarter. Yes, the economy is lackluster, but our performance was not good even in that environment. Our revenue was at the higher end of our preliminary financial announcement on January 8, 2013, but it decreased 11% sequentially—well below our expectations at the beginning of the fourth quarter. All divisions decreased sequentially and on a year-on-year basis. We are now cutting the company down structurally from four divisions to three to rapidly reduce our operating expenses. Our goal is to re-establish the drop-through earnings leverage that has characterized Cypress since the SunPower spinout", states Cypress president and CEO, T.J. Rodgers.

Non-GAAP4 consolidated gross margin for the fourth quarter was 51.3%, down 5.8 percentage points from the previous quarter due mainly to product mix, factory absorption, and Ramtron charges and inventory reserves.

Net inventory at the end of the fourth quarter was $126.1 million, up $36.8 million from the third quarter. The inventory acquired from Ramtron (plus the related purchase accounting fair value adjustment) totaled $44.7 million. Excluding the Ramtron acquisition, inventory decreased 9% sequentially, and distributor inventory dollars on hand decreased 16% sequentially.

Cash and investments for the fourth quarter totaled $117.2 million, a decrease of $102.2 million from the prior quarter. During the quarter, the company used $102.2 million to complete the acquisition of Ramtron, $32.3 million to repurchase 3.2 million shares.
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