Total revenue reached US$624.1 million, up 7.2% quarter-on-quarter, creating a new historical record. GAAP (GAAP) gross margin was 37.5%, up 500 basis points year-on-year; non-GAAP gross margin was 46.3%, year-on-year Growth of 540 basis points GAAP and non-GAAP diluted earnings per share were 7 cents and 33 cents respectively. Driven by strong demand for microcontrollers and wireless connectivity, MCD business unit revenue increased by 9.4%
Cypress President and CEO Hassane El-Khoury said, 'The team has implemented the company's strategy well and helped us continue to expand our share of high growth in automotive, industrial and consumer electronics, so Cypress this quarter. Our revenues have reached new heights. Our connectivity, computing and storage solutions platform provides developers with all-round support for fast and easy creation of superior IoT products.'
The quarterly income and earnings figures are shown in the table below, with comparative data: (unit: $1,000, except earnings per share data)
2. Please see below 'GAAP Financial Metrics and Non-GAAP Financial Metrics Adjustment Table' ( 'Non-GAAP Adjustment Form').
Business review
+ Cypress announced its key achievements in wireless connectivity solutions for the automotive and industrial sectors this quarter. Pioneer selected Cypress's automotive-grade Wi-Fi® and Bluetooth® combo solutions integrated into its flagship model Built-in in-car entertainment information receiver. The solution uses Cypress's Real-Time Synchronous Dual Band (RSDB) technology to enable passengers to project and use smartphone apps via Apple CarPlayTM or Android AutoTM. In addition, SEP Ras also partnered with Semtech to develop a dual-chip smart metro application module based on LoRaWANTM. The module uses Cypress's PSoC®6 microcontroller (MCU) with integrated low-power Bluetooth connectivity ( BLE) and hardware security unit that provides highly secure devices to cloud connectivity.
+ Cypress continues to expand its high-performance, differentiated, trouble-free storage product line with the world's most advanced flash memory solution for critical applications such as automotive and industrial – the SemperTM NOR flash memory family. The product has been favored by several major automotive platforms for the next generation of automotive instrument clusters and advanced driver assistance systems (ADAS).
+ Cypress also announced significant results in its industry-leading USB-C solution. The EZ-PDTM USB-C controller supporting the PD protocol has received key reference design certifications for PC and peripheral products, including One controller is certified for Intel ThunderboltTM 3 host and peripheral design, and the other is certified by AMD's 'Raven Ridge' processor for notebooks and desktops. In addition, Cypress has introduced the industry's first Seven-port USB-C Hub controller for notebook and tablet docking stations and monitor docking stations.
+ On July 19, 2018, Cypress distributed a dividend of $39.4 million to shareholders holding the company's common stock as of June 28, 2018, equivalent to $0.11 per share. According to the market value of June 29, 2018 Calculated, the dividend corresponds to an annualized rate of return of 2.8%.
Revenue profile (unit: $1,000, except percentage) (unaudited)
Outlook for the third quarter of 2018
Cypress's performance for the third quarter of 2018 is estimated as follows:
