Cypress Reports First-Quarter 2010 Results

Non-GAAP1 net income for the 2010 first quarter—excluding stock-based compensation, acquisition-related charges, restructuring and other special charges and credits—totaled $34.1 million, or diluted earnings per share of $0.17. That compares with non-GAAP1 diluted earnings per share of $0.16 for the prior quarter and a diluted net loss per share of $0.22 for the year-ago first quarter.

Cypress President and CEO T.J. Rodgers said, “We are pleased to report a sequential revenue increase of 4.3% in a quarter that normally sees a seasonal decrease of 4% to 8%. Our MID division realized strong, sequential growth as our high-performance SRAMs benefited from strength in communications and industrial markets and additional share gains with strategic global customers. We also enjoyed a 90% year-over-year increase in handset revenues led by our TrueTouch™ touchscreen controllers and West Bridge® peripheral controllers, and our PSoC®-powered OvationONS™ optical navigation sensors, which will ramp to volume production in Q2. These products offer software-based configurability and quick time to market—unique benefits that are highly desired by our OEM customers.

“The significant increase in our handset revenue represents a major accomplishment for Cypress. Just two years ago we had limited revenue in this market. Today we are engaged with every major handset OEM. We expect to see our handset revenue continue to increase sharply over the next few years.

“Customers are continuing to provide increased booking visibility into Q2 and Q3, and we will have many new products and design wins ramping throughout the year,” Rodgers continued. “Our backlog has reached a multi-year high, and our book-to-bill ended Q1 at 1.34—a substantial, sequential increase that is significantly above our typical expectations. We expect sales and profits to continue to increase throughout 2010 as the economy recovers and we introduce additional proprietary and programmable products into the market.”