CYPRESS Semiconductor (CY) Message Board

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Technology Stocks : CYPRESS Semiconductor (CY)

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: Daniel Mc Cranie who wrote (2271)	8/18/1999 10:36:00 PM
From: BWAC	Read Replies (1) of 2694

How about the fact that CY management dropped the ball back in late 1998 yet still collected their bonuses and options? A screw up at the worst possible time for your investors, in the worst possible market environment. Where were the low interest loans (like you allowed management and employees to take out recently to purchase CY stock)when your investors (many of whom might have bought in at $20 plus) had to face margin calls due to managements poor performance? I submit from your own investor website the following direct responses from you. <<1) The manufacturing problems all occurred in the 'back end', in assembly and test, and largely in our Philippines facility. The problems were two-fold, with each problem 'sharing' the magnitude of the revenue and earnings miss: a) Inadequate burn-in capacity. This resulted from a failure to move down quickly enough in our burn-in reduction. Most of the SRAM product in the back end is now .35 micron. In Q3, we had a requirement to burn-in this product for 48 hours. Manufacturing assumed that they would, in Q4, be able to move to a lower burn-in number (12 hours). Burn-in reduction is a normal part of manufacturing life with newly installed processes (.35 micron). Manufacturing could not move down to 12 hours and had to stay at 48 hours. Manufacturing had not planned for this contingency and, as a result, had in-adequate burn-in resources. This problem surfaced in the first weeks of November. 2. 'Why did they happen?'. A difficult question for a Sales and Marketing executive to answer. However, I believe the problem was caused by poor management practices...in particular contingency planning.>> <<) The offer to lend money for employees to purchase their options was made to all employees and board members. In the end, 56 employees took the company up on the offer. Of the 56 employees, three were officers and two were directors. The total number of option shares that were purchased under this agreement were approximately 1.4 Million. The interest rate used was in the range of 5%. The money is due and payable in two years. The underlying stock is used for security for the loans.>> And what the hell is all this crowing about a stock price of $23 and Cy the great investment. Its not even back up to the price it was in 1995. CY has returned no great fortunes to its normal everyday longterm mom and pop investors. BUT IT SURE AS HELL HAS TO THOSE IN THE KNOW AND ON THE INSIDE.

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