Cypress Semiconductor Corp. (CY, Financial) filed Quarterly Report for the period ended 2010-10-03.
Cypress Semiconductor Corp. has a market cap of $2.46 billion; its shares were traded at around $15.35 with a P/E ratio of 41.5 and P/S ratio of 3.7. CY is in the portfolios of Mario Gabelli of GAMCO Investors, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
SG&A expenses decreased by $9.1 million in the first three quarters of fiscal 2010 compared to the same prior-year period. The decrease was primarily attributable to a reduction of $16.0 million in stock-based compensation expense mainly due to lower amortization of the remaining modification charge recorded in connection with the Spin-Off and $1.9 million decrease in the deferred compensation plan. These decreases were offset by an increase of $4.5 million in sales commissions due to higher revenues and $3.7 million increase in certain bonus programs which paid out at higher levels as profitability increased when compared to the prior-year period.
For the three and nine months ended October 3, 2010, we recorded restructuring charges of $3.1 million and $3.3 million, respectively. For the three and nine months ended September 27, 2009, we recorded restructuring charges of $7.3 million and $14.5 million, respectively. The determination of when we accrue for severance and benefits costs, and which accounting standard applies, depends on whether the termination benefits are provided under a one-time benefit arrangement or under an on-going benefit arrangement.
Our income tax expense was $1.7 million and $0.2 million and $10.2 million and $4.2 million for the three and nine months ended October 3, 2010 and September 27, 2009, respectively. The tax provision for the third quarter and first three quarters of fiscal 2010 was primarily attributable to non-U.S. taxes on income earned in foreign jurisdictions.
During the nine months ended October 3, 2010, net cash used in investing activities was $54.6 million compared to net cash used in investing activities of $37.7 million for the nine months ended September 27, 2009. For the nine months ended October 3, 2010, our investing activities primarily included $37.1 million of property and equipment expenditures and $19.3 million from purchases of our investments, net of proceeds from sales and maturities.
During the nine months ended October 3, 2010, net cash used in financing activities was $68.9 million compared to net cash provided by financing activities of $10.0 million for the nine months ended September 27, 2009. For the nine months ended October 3, 2010, we used a net of $109.9 million on the yield enhancement structured agreements, offset by net proceeds of $41.0 million from the issuance of common shares under our employee stock plans.
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Cypress Semiconductor Corp. has a market cap of $2.46 billion; its shares were traded at around $15.35 with a P/E ratio of 41.5 and P/S ratio of 3.7. CY is in the portfolios of Mario Gabelli of GAMCO Investors, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Revenues from the Data Communications Division increased by $3.9 million in the third quarter of fiscal 2010 and $14.2 million in the first three quarters of fiscal 2010, or approximately 15.4% and 20.0%, respectively, compared to the same prior-year periods. Both revenue increases were primarily attributable to increases in sales of $8.1 million in the third quarter and $19.6 million in the first three quarters of fiscal 2010 of our communications products due to increased market demand, increased military shipments and the economic recovery experienced in fiscal 2010 compared to the market downturn in fiscal 2009. These increases were offset by decreases of $4.8 million in the third quarter and $6.3 million in the first three quarters of fiscal 2010 in sales of our West Bridge controllers and other products resulting from lowered demand and shipments to cell phone manufacturers.SG&A expenses decreased by $9.1 million in the first three quarters of fiscal 2010 compared to the same prior-year period. The decrease was primarily attributable to a reduction of $16.0 million in stock-based compensation expense mainly due to lower amortization of the remaining modification charge recorded in connection with the Spin-Off and $1.9 million decrease in the deferred compensation plan. These decreases were offset by an increase of $4.5 million in sales commissions due to higher revenues and $3.7 million increase in certain bonus programs which paid out at higher levels as profitability increased when compared to the prior-year period.
For the three and nine months ended October 3, 2010, we recorded restructuring charges of $3.1 million and $3.3 million, respectively. For the three and nine months ended September 27, 2009, we recorded restructuring charges of $7.3 million and $14.5 million, respectively. The determination of when we accrue for severance and benefits costs, and which accounting standard applies, depends on whether the termination benefits are provided under a one-time benefit arrangement or under an on-going benefit arrangement.
Our income tax expense was $1.7 million and $0.2 million and $10.2 million and $4.2 million for the three and nine months ended October 3, 2010 and September 27, 2009, respectively. The tax provision for the third quarter and first three quarters of fiscal 2010 was primarily attributable to non-U.S. taxes on income earned in foreign jurisdictions.
During the nine months ended October 3, 2010, net cash used in investing activities was $54.6 million compared to net cash used in investing activities of $37.7 million for the nine months ended September 27, 2009. For the nine months ended October 3, 2010, our investing activities primarily included $37.1 million of property and equipment expenditures and $19.3 million from purchases of our investments, net of proceeds from sales and maturities.
During the nine months ended October 3, 2010, net cash used in financing activities was $68.9 million compared to net cash provided by financing activities of $10.0 million for the nine months ended September 27, 2009. For the nine months ended October 3, 2010, we used a net of $109.9 million on the yield enhancement structured agreements, offset by net proceeds of $41.0 million from the issuance of common shares under our employee stock plans.
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