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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FEBRUARY 7, 2000
Date of Report
CYPRESS SEMICONDUCTOR CORPORATION
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(Exact name of registrant as specified in its charter)
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<CAPTION>
<S> <C> <C>
DELAWARE 1- 10079 94-2885898
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
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3901 NORTH FIRST STREET
SAN JOSE, CALIFORNIA 95134-1599
(Address of principal executive offices)
(408) 943-2600
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
COMPLETION OF NOTE OFFERING. On January 25, 2000 we completed the
offering of $283,000,000 in aggregate principal amount of our 4% Convertible
Subordinated Notes due 2005.
ANNOUNCEMENT OF FOURTH QUARTER REVENUES. On January 25, 2000 we
announced record revenue of $207.9 million for the fourth quarter of fiscal year
1999, ended January 2, 2000. This represents a 12.7% increase from the prior
quarter's revenue of $184.5 million and a 42.8% increase from the prior year's
fourth quarter revenue of $145.6 million. For the full year 1999, we set a
revenue record of $705.5 million, a 27.1% increase over 1998 revenue of $554.9
million.
Our net income for the fourth quarter was $ 47.5 million, resulting
in diluted earnings per share of $0.39. The fourth quarter results included a
non-recurring pre-tax net benefit of $12.0 million which utilized substantially
all of our remaining net operating loss tax benefits. The non-recurring benefit
was comprised of a $36.2 million gain from sale of investments, a $12.3 million
charge to write off a manufacturing asset not in use, and an $11.9 million,
one-time compensation charge. Excluding the non-recurring pre-tax net benefit of
$12.0 million and excluding pre-tax acquisition-related charges of $1.7 million
for transaction costs and amortization of intangibles, which we collectively
refer to as goodwill, net income was $37.7 million, resulting in basic earnings
before goodwill of $0.34 and diluted earnings before goodwill of $0.32 per share
- - a 33.3% improvement from the prior quarter's diluted earnings before goodwill
of $0.24 per share, and a significant improvement from the 1998 fourth quarter
loss of $0.02 per share.
Our net income for the year was $91.1 million, resulting in diluted
earnings per share of $0.81. Excluding a non-recurring pre-tax benefit of $36.2
million and excluding goodwill charges of $33.8 million for transaction costs
and the amortization of intangibles, net income was $88.8 million, resulting in
a basic earnings before goodwill of $0.85 and diluted earnings before goodwill
of $0.79, compared with 1998 diluted earnings before goodwill loss of $0.50 per
share.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CYPRESS SEMICONDUCTOR CORPORATION
Date: February 7, 2000 By: /s/ EMMANUEL HERNANDEZ
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Name: Emmanuel Hernandez
Title: Chief Financial Officer
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INDEX TO EXHIBITS FILED WITH
THE CURRENT REPORT ON FORM 8-K DATED FEBRUARY 7, 2000
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Exhibit Description
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<S> <C>
99.1 Consolidated Balance Sheet and Consolidated Statement of
Operations for the Fourth Quarter of Fiscal Year 1999
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EXHIBIT 99.1
CYPRESS SEMICONDUCTOR CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands, except per share data and share amounts)
(Unaudited)
ASSETS
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<CAPTION>
Jan 2, 2000 Jan 3, 1999
Current assets:
<S> <C> <C>
Cash and short-term investments ...... $ 270,556 $ 160,561
Accounts receivable,net .............. 100,114 68,955
Inventories, net ..................... 89,432 65,096
Other current assets ................. 33,286 14,372
Total current assets ............. 493,388 308,984
Property and equipment, net .......... 357,183 348,936
Long-term investments** .............. 111,324 57,046
Restricted investments** ............. 61,198 59,742
Other assets ......................... 50,124 8,223
Total assets ..................... $1,073,217 $ 782,931
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** Cash at January 2, 2000 totals $443,078.
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LIABILITIES AND STOCKHOLDERS' EQUITY
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<CAPTION>
Jan 2, 2000 Jan 3, 1999
Current liabilities:
<S> <C> <C>
Accounts payable ...................................................... $ 99,531 $ 53,932
Accrued liabilities ................................................... 52,164 33,145
Deferred income on sales to distributors .............................. 20,760 13,300
Income taxes payable .................................................. 20,311 13,591
Total current liabilities ......................................... 192,766 113,968
Convertible subordinated note .............................................. 160,000 160,000
Deferred income tax ........................................................ 12,093 --
Other long-term debt ....................................................... 10,384 10,240
Total liabilities ................................................. 375,243 284,208
Commitments and contingencies Stockholders' equity:
Preferred stock, $ .01 par value, 5,000 shares authorized;
none issued and outstanding ....................................... -- --
Common stock, $ .01 par value, 250,000 share authorized; 115,496 and
109,586 issued; 110,516 and 102,123 outstanding ................... 453,985 318,098
Retained earnings .......................................................... 243,989 180,625
Total stockholders' equity ................................................. 697,974 498,723
Total liabilities and stockholders' equity ........................ $1,073,217 $ 782,931
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CYPRESS SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
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<CAPTION>
THREE MONTHS ENDED
(Unaudited)
Jan 2, Jan 3, Oct 3,
2000 1999 1999
<S> <C> <C> <C>
Revenues ...................................... $ 207,876 $ 145,570 $ 184,497
Costs and expenses:
Costs of revenues ........................... 106,078 95,624 98,528
Research and development .................... 34,025 30,697 32,021
Selling, general and administrative ........... 31,057 23,075 26,000
Acquisition and merger costs .................. 25,940 -- 1,879
Restructuring costs (credits) ................. -- -- --
Total operating costs ......................... 197,100 149,396 158,428
Operating Income (loss) ....................... 10,776 (3,826) 26,069
Interest expense .............................. (2,373) (2,728) (2,458)
Interest income and other ..................... 41,568 5,045 4,196
Income (loss)before income tax ................ 49,971 (1,509) 27,807
(Provision)Benefit for income tax ............. (2,498) 243 (1,390)
Net income (loss) ............................. $ 47,473 $ 1,752 $ 26,417
Basic net income (loss) per share ........... $ 0.43 $ 0.02 $ 0.25
Goodwill net of taxes per share ............. $ (0.09) $-- $ 0.01
Restructuring costs (credits)net of taxes
per share ................................... $-- $-- $--
Basic earnings (loss) before goodwill
per share ................................... $ 0.34 $ (0.02) $ 0.26
Diluted net income (loss) per share ........... $ 0.39 $ (0.02) $ 0.23
Goodwill net of taxes per share ............... $ (0.07) $-- $ 0.01
Restructuring costs (credits)net of taxes
per share ................................... $-- $-- $--
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<CAPTION>
Jan 2, Jan 3, Oct 3,
2000 1999 1999
<S> <C> <C> <C>
Diluted earnings (loss) before goodwill
per share ................................... $ 0.32 $ (0.02) $ 0.24
Shares used in per share calculation:
Basic ....................................... 109,891 96,528 107,508
Diluted ..................................... 126,593 96,528 117,103
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YEARS ENDED
(Unaudited)
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<CAPTION>
Jan 2, Jan 3,
2000 1999
<S> <C> <C>
Revenues ................................................ $ 705,487 $ 554,890
Costs and expenses:
Costs of revenues ..................................... 383,639 409,110
Research and development .............................. 129,331 114,550
Selling, general and administrative ................... 105,882 91,017
Acquisition and merger costs .......................... 37,623 --
Restructuring costs (credits) ......................... (3,811) 60,737
Total operating restructuring costs ................. 652,664 675,414
Operating Income (loss) ............................... 52,823 (120,524)
Interest expense ........................................ (9,617) (11,276)
Interest income and other ............................. 52,665 13,357
Income (loss)before income tax ........................ 95,871 (118,443)
(Provision)benefit for income tax ..................... (4,817) 13,523
Net income (loss) ....................................... $ 91,054 $(104,920)
Basic net income (loss) per share ..................... $ 0.87 $ (1.03)
Goodwill net of taxes per share ....................... $ 0.01 $--
Restructuring costs (credits)net of taxes
per share ........................................... $ (0.03) $ 0.53
Basic earnings(loss)before goodwill per share ......... $ 0.85 $ (0.50)
Diluted net income (loss) per share ................... $ 0.81 $ (1.03)
Goodwill net of taxes per share ....................... $ 0.01 $--
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<CAPTION>
Jan 2, Jan 3,
2000 1999
<S> <C> <C>
Restructuring costs (credits) net of taxes per share .... $ (0.03) $ 0.53
Diluted earnings (loss) before goodwill per share ....... $ 0.79 $ (0.50)
Shares used in per share calculation:
Basic ................................................. 104,703 101,944
Diluted ............................................... 111,735 101,944
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