Cypress Semiconductor Corporation (CY) recently declared its fourth quarter and fiscal year 2016 results.
“We’re happy to report a strong fourth quarter and full year for Cypress in 2016,” said Hassane El-Khoury, Cypress president and chief executive officer. “We grew the company, improved our gross margin, exceeded our expectations in terms of our plan for cost synergies from the Spansion merger and changed the planned direction of the company, fully implementing Cypress 3.0, our blueprint for selling complete embedded solutions into markets growing faster than the broader semiconductor industry.
“For the year, our GAAP revenue of $1.92 billion and non-GAAP revenue of $1.94 billion reflect 20% and 19% growth, respectively,” El-Khoury continued. “We continue to see strong demand for our expanding portfolio of solutions for embedded systems, and our IoT business, which cuts across all of our target markets, has exceeded our expectations.
“We have now fully aligned our go-to-market strategy with our target markets – automotive, industrial and consumer – and reorganized our reporting structure to two divisions to improve our efficiency. In 2017 we expect to grow faster than the overall semiconductor market, driven by automotive, connectivity and USB-C.”
Twitter Inc (TWTR) declared financial results for its fourth quarter and fiscal year 2016.
“2016 was a transformative year as we reset and focused on why people use Twitter: it’s the fastest way to see what’s happening and what everyone’s talking about,” said Jack Dorsey, Twitter’s CEO. “We overcame the toughest challenge for any consumer service at scale by reversing declining audience trends and re-accelerating usage. As a result, in the fourth quarter, daily active usage accelerated for the third successive quarter, and we see this strong growth continuing. While revenue growth continues to lag audience growth, we are applying the same focused approach that drove audience growth to our revenue product portfolio, focusing on our strengths and the real-time nature of our service. This will take time, but we’re moving fast to show results.”
Fourth Quarter 2016 Operational and Financial Highlights
The company posted fourth quarter revenue of $717 million, a boost of 1% year-over-year. Quarterly GAAP net loss was $167 million, or ($0.23) per diluted share, with quarterly non-GAAP net income of $119 million, or $0.16 per diluted share. Average monthly active users were 319 million for the quarter, up 4% year-over-year and contrast to 317 million in the previous quarter. Average daily active usage grew 11% year-over-year, an acceleration from 7% in the third quarter, 5% in the second quarter and 3% in the first quarter of 2016. Tweet impressions and time spent on Twitter also remained strong with each increasing by double digits in the fourth quarter on a year-over-year basis.
Advertising revenue totaled $638 million, down slightly year-over-year. Mobile advertising revenue was 89% of total advertising revenue. Data licensing and other revenue totaled $79 million, a boost of 14% year-over-year. U.S. revenue totaled $440 million, a decrease of 5% year-over-year. International revenue totaled $277 million, a boost of 12% year-over-year. Total advertising engagements were up 151% year-over-year.
Fiscal Year 2016 Financial Highlights
Total revenue for 2016 reached $2.5 billion, a boost of 14% year-over-year. Full year GAAP net loss was $457 million, or ($0.65) per diluted share, with full year non-GAAP net income of $406 million, or $0.57 per diluted share. Adjusted EBITDA for the full year improved by nearly $200 million, reaching $751 million with a 30% margin and surpassing the forecasted range of $700 to $715 million and the company’s initial forecasted range of 25-27% for adjusted EBITDA margin. Adjusted EBITDA margin improved to 30% of revenue, contrast to 25% for the previous year. Adjusted free cash flow generated for the year totaled $444 million, contrast to less than $5 million in 2015. Twitter had $3.8 billion in cash, cash equivalents and marketable securities at the end of 2016.
Annual stock-based compensation expense for the year, on an absolute basis, reduced 10% year-over-year and declined over 600 basis points year-over-year as a percent of revenue, reaching 24% in 2016, down from 31% in 2015 and 45% in 2014.
“Twitter gives advertisers the ability to reach the most engaged audiences in the right context at the right time, and we’re focusing our investments on revenue products that strengthen our unique value proposition, especially in live and video,” said Anthony Noto, Twitter’s COO. “We’re hearing positive feedback from our ad partners about our continued acceleration in audience growth and engagement. That said, revenue growth will continue to lag audience growth because of the sales cycle, and could be further influenced by the escalating competition for digital advertising spending and our efforts to re-evaluate our revenue product feature portfolio. We will continue to increase the value we provide advertisers by simplifying and differentiating the portfolio and improving the engagement and measurement of our products. We are confident that this path will return us to long-term revenue growth.”