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Technology Stocks : CYPRESS Semiconductor (CY)
CY 23.820.0%Apr 16 5:00 PM EST
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To: rinv who wrote (2318)10/20/1999 3:43:00 PM
From: Glen2   of 2694
 
Dan Niles of Robertson Stephens published a report today,
October 20. Key points follow:

1. Cypress reported Q3 EBG, (earnings before goodwill) of
$0.24, vs our estimate of $0.22 and consensus of $0.21 on
revenues of $184.5 million vs our $180 million estimate.
Total EPS was $0.23 including $1.9 million in charges and
goodwill. Gross margins increased to 46.6% in Q3 from
44.1% in Q2. SRAM broke even in the quarter and pricing is
up into Q4.

2. The company saw record bookings of $231.4 million, and
overall book-to-bill was 1.25. The company was 94% of
booked at the end of Q3 and leaving only $10 million
needed in turns to make Q4. The company also announced
that they had received a $100 million SRAM order from a
wireless customer in C2000. USB should be between $100-120
million and Altera's Max 5K between $9-14 million in
C2000. Capacity is tight but Cypress is adding fab
capacity both internally and externally in Fab 5 and from
2 foundries in 2000.

3. We believe that Cypress is benefiting from the strong
semiconductor cycle and the demand is strength from
communications. Also, of the top 50 accounts for the
company, 68% of revenues are derived from communications
end-markets, which should result in strong revenue growth.

4. We are raising our 1999 EBG estimates from $0.70 to
$0.74 and 2000 estimates from $1.20 to $1.35. We believe
that there should be significant upside to our estimates
as margins continue to expand and operating leverage grows
while revenues continue to grow strongly. In addition, at
16.7x C2000, the company is the cheapest communications
end-market play that is in a growth path.
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