Cypress Semiconductor Corporation designs, develops, manufactures andmarkets a broad line of high-performance digital and mixed-signal integrated circuits for a range of markets, including data communications, telecommunications, computers, and instrumentation systems. The company sells the products to a wide range of customers, including Lucent Technologies Inc., Motorola, Inc., Nortel Networks Corporation, Seagate Technology, Inc., Compaq Computer Corporation, 3Com Corporation, IBM, Cisco Systems, Inc. and Sony Corporation.
198 CHAMPION COURT SAN JOSE, CA 95134, USA Phone: 4089432600 Fax: 408-943-4730 Web: http://www.cypress.com/
Industry:Semi-Communications Sector: Computer and Technology Fiscal Year End:December Last Reported Quarter:03/31/12 Next EPS Date:07/19/12
Capital Structure Solvency and Cash Flow
Balance Sheet
Exiting 1Q11, CY on a consolidated basis, had cash and cash equivalents along with short-term investments balance of approximately $260.9 million. Receivables were $173.4 million. Inventories were $104.1 million in 1Q11. The company had no outstanding debt as of the end of 1Q11.
Cash Flow and Capital Expenditure
Operating cash flow was $35.3 million in 1Q11 versus $38.1 million in 1Q10 and capital expenditure was $19.3 million versus $17.9 million in 1Q10.
For 2Q12, capital expenditure is expected in the range of $12.0 million to $15.0 million.
Share Repurchase
In the quarter, the company used $245 million to repurchase 8.4 million shares and to prepay for an additional 4 million shares in the Yield Enhancement Program (YEP). Since October 2010, the company repurchased 14.2 million shares through April 20, 2011 and has approximately $324 million remaining under the authorized repurchase program.
Last edited Mon May 23, 2011 11:23 PM by SudiptaMukherjee (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
On May 2, 2011, CY and Redpine Signals jointly developed 802.11a/b/g/n wireless-connectivity solutions that make it easy for system engineers to add low-power, single-stream 802.11n Wi-Fi capability to embedded systems with Cypress's PSoC® 3 and PSoC 5 programmable system-on-chip platforms. These solutions are based on the Connect-io-n™ modules from Redpine Signals® that make it easy to design new systems and upgrade existing products to provide reliable wireless data communications that meet stringent power and high throughput requirements.
On February 17, 2011, CY announced that it licensed 130-nm and 65-nm SONOS (Silicon Oxide Nitride Oxide Silicon) embedded nonvolatile memory technology IP to Innopower Technology Corporation. Under the licensing agreement, Innopower will combine Cypress’s technology with its technical support services and other IP elements to help designers of next-generation SOCs and ASICs integrate non-volatile memory (NVM) solutions within their new ICs.
Last edited Mon May 23, 2011 11:24 PM by SudiptaMukherjee (Zacks Investment Research)
Recent and Upcoming Events
Major Risks
Sustainability of Growth • CY’s subsidiaries are addressing new markets, where visibility is limited.
• CY is no longer attached to the powerful growth engine of SunPower, which might expose it to macroeconomic and company-specific issues.
• Move to further outsourcing could lead to capacity issues if the overall market demand exceeds supply.
Price Volatility
• SRAM’s prices are highly volatile.
Dependence on the Networking Segment
• The company is highly dependent on networking and wireless end markets, conditions of which are changing rapidly.
Competition
• Increasing level of competition in touch controllers, especially as entrants like Atmel claim performance, feature and power consumption advantages versus CY’s Truetouch.
Last edited Mon May 23, 2011 11:25 PM by SudiptaMukherjee (Zacks Investment Research)
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