Cypress Semiconductor Corporation (CY) saw its loss narrow to $45.78 million, or $0.14 a share for the quarter ended Apr. 02, 2017. In the previous year period, the company reported a loss of $104.02 million, or $0.32 a share. On an adjusted basis, the company has earned $45.89 million, or $0.13 a share for the quarter.
Revenue during the quarter grew 26.95 percent to $531.87 million from $418.96 million in the previous year period. Gross margin for the quarter expanded 740 basis points over the previous year period to 37.43 percent. Operating margin for the quarter stood at negative 3.08 percent as compared to a negative 21.98 percent for the previous year period.
Operating loss for the quarter was $16.36 million, compared with an operating loss of $92.08 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $64.91 million.
"Cypress delivered record revenue1 in the first quarter that exceeded the high end of our guidance range," said Hassane El-Khoury, Cypress president and chief executive officer. We saw above seasonal growth in our Microcontroller and Connectivity Division and strength in our memory products which exceeded our expectations. Our wireless connectivity grew 30% from the fourth quarter of 2016 and Automotive revenue hit a new quarterly record. These results highlight the strong demand for our expanding portfolio of embedded systems solutions and the continued success of our Cypress 3.0 strategy to target markets growing faster than the overall semiconductor industry.
For the second-quarter, Cypress Semiconductor Corporation projects revenue to be in the range of $530 million to $560 million. It projects adjusted revenue to be in the range of $530 million to $560 million. The company forecasts diluted loss per share to be in the range of $0.13 to $0.09. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.14 to $0.18.
Working capital turns negativeWorking capital of Cypress Semiconductor Corporation has turned negative to $11.18 million on Apr. 02, 2017 from positive $218.96 million on Apr. 03, 2016. Current ratio was at 0.99 as on Apr. 02, 2017, down from 1.44 on Apr. 03, 2016. Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 92 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 44 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding went up to 56 days for the quarter from 45 for the same period last year.
Debt increases substantiallyCypress Semiconductor Corporation has witnessed an increase in total debt over the last one year. It stood at $1,171.71 million as on Apr. 02, 2017, up 52.91 percent or $405.45 million from $766.25 million on Apr. 03, 2016. Total debt was 30.78 percent of total assets as on Apr. 02, 2017, compared with 20.34 percent on Apr. 03, 2016. Debt to equity ratio was at 0.63 as on Apr. 02, 2017, up from 0.32 as on Apr. 03, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
