SAN JOSE -- Cypress Semiconductor Corp. here believes it can grow twice as fast as the semiconductor industry overall this year. That's the company's goal as it announced fourth-quarter and fiscal-year earnings today.
As it expected, Cypress had record revenue of $207.9 million for the fourth quarter of fiscal 1999, ended Jan. 2. That was 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 (see Jan. 18 story ). For the full year, the company set a revenue record of $705.5 million, a 27.1% increase over 1998 revenue of $554.9 million.
Cypress CEO T.J. Rodgers said, "We are very pleased to have ended 1999 with record quarterly revenue . . . and year-on-year revenue growth of 27.1% -- close to double the growth rate estimated for the semiconductor industry in 1999. The semiconductor industry appears poised to grow an above-average 20% in 2000. Our target is to double that figure."
The San Jose company's revenue growth in 1999 was driven by new products. In the past three years, Cypress' revenue on new products (products on the market less than 18 months) nearly doubled, from $59.8 million in 1997 to $114.7 million in 1999. Most of the new products are targeted at high-growth high-bandwidth communications markets.
In November, Cypress agreed to jointly develop semiconductor memory products for the communications market with Ramtron International Corp. of Colorado Springs, Colo. (see Nov. 18, 1999 story ). Two weeks ago, Cypress picked up Galvantech Inc., a maker of high-performance SRAMs with communications applications (see Jan. 11 story ).
CEO Rodgers also noted Cypress ended the fourth quarter with its third consecutive record for bookings, of $262.0 million, a 13.2% increase from the prior quarter. "The capacity-expansion decisions that we made starting in early 1999 should benefit the company in the future as our factories are in a strong ramp. Continued conversion of our memory products from 0.35- micron to our 0.25- and 0.21-micron technologies should also contribute to increased capacity."
As a result of manufacturing efficiencies, Cypress' gross margin was 49.0% in the fourth quarter.
Net income for the year was $91.1 million, resulting in diluted earnings of 81 cents per share. 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, with earnings before goodwill of 85 cents and diluted EBG of 79 cents per share. In fiscal1998, Cypress has a diluted EBG loss of 50 cents per share.