Net income up in Q3 for cypress

During the quarter the company achieved GAAP revenues of USD 523.8 million with a GAAP margin of 37.9%. This was accompanied by achieving USD 175.8 million in realised annualised synergies from the Spansion merger. “Our gross margin improvement plan remains on track as we continue to focus on efficiency and execution,” Hassane El-Khoury continued. In thousands.

	Q3 2016	Q2 2016
Revenue	$523.845	$450.127
Margin	37.9%	35.3%
Pretax profit margin	2.4%	(116.6%)
Net income (loss)	$9.411	$(519.274)

“We are moving quickly to streamline the Company to sharpen our focus on high-growth segments in the automotive, industrial and IoT markets,” El-Khoury said. “As we projected last quarter, more than half of our Q3 revenue came from markets growing faster than the overall semiconductor industry. Automotive revenue accounted for 32% of our overall revenue in the quarter and increased 25% year-on-year. We have also integrated the wireless IoT business acquired from Broadcom and are seeing strong customer demand for our solutions in that space.” Inventory at the end of the third quarter was USD 247.7 million, up 12% from the second quarter of 2016, which the company explains being 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 USD 160 million, or 41%, since the closing of the Spansion merger.