Cypress Semiconductor Corporation (CY) saw its loss almost stable for the quarter ended Jan. 01, 2017. In the previous year period, the company reported a loss of $72.33 million, or $0.22 a share. On the other hand, adjusted net income for the quarter stood at $53.82 million, or $0.15 a share compared with $45.53 million or $0.15 a share, a year ago.
Revenue during the quarter grew 17.78 percent to $530.17 million from $450.13 million in the previous year period. Gross margin for the quarter expanded 627 basis points over the previous year period to 38.09 percent. Operating margin for the quarter stood at negative 7.24 percent as compared to a negative 11.37 percent for the previous year period.
Operating loss for the quarter was $38.38 million, compared with an operating loss of $51.18 million in the previous year period.
However, the adjusted operating income for the quarter stood at $78.58 million compared to $51.90 million in the prior year period. At the same time, adjusted operating margin improved 329 basis points in the quarter to 14.82 percent from 11.53 percent in the last year period.
“We’re pleased to report a strong fourth quarter and full year for Cypress in 2016,” said Hassane El-Khoury, Cypress president and chief executive officer. “We grew the company, improved our gross margin, exceeded our expectations in terms of our plan for cost synergies from the Spansion merger and changed the strategic direction of the company, fully implementing Cypress 3.0, our blueprint for selling complete embedded solutions into markets growing faster than the broader semiconductor industry.
For the first-quarter, Cypress Semiconductor Corporation expects revenue to be in the range of $495 million to $525 million. For the first-quarter, Cypress Semiconductor Corp expects adjusted revenue to be in the range of $495 million to $525 million. The company forecasts diluted loss per share to be in the range of $0.22 to $0.18 for the second-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.09 to $0.13 for the first-quarter.
Debt increases substantially
Cypress Semiconductor Corporation has witnessed an increase in total debt over the last one year. It stood at $1,194.98 million as on Jan. 01, 2017, up 77.39 percent or $521.32 million from $673.66 million on Jan. 03, 2016. Total debt was 30.86 percent of total assets as on Jan. 01, 2017, compared with 16.82 percent on Jan. 03, 2016. Debt to equity ratio was at 0.63 as on Jan. 01, 2017, up from 0.25 as on Jan. 03, 2016.
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