Very bullish news from CY: Business is so bad, it can't possibly get any worse.
9:00am 06/04/01 Cypres Semi warns about Q2 results (CY) By Michael Baron
Cypress Semiconductor (CY) pegged second-quarter earnings before goodwill at breakeven to 2 cents a share on revenue of $175 million to $185 million. The revenue projection is 29 to 33 percent below last quarter's total of $262 million and beneath its previously estimated range for the period of $200 million to $210 million. Analysts polled by First Call/Thomson Financial are currently looking for a profit of 2 cents a share in the period. The San Jose, Calif., chip firm attributed the shortfall to weakness across all of its markets. "Business conditions have not materially improved in the market segments that we serve," said T.J. Rodgers, the company's CEO, in a press release. "The computation segment, roughly 20 percent of revenue, which earlier showed some signs of recovery, has stalled, though it is still likely to strengthen in the second half of 2001." Rodgers went on to note that Cypress' wireless infrastructure and wireless terminal segments, representing roughly 30 percent of its revenue, have "exhibited some positive movement but inventory levels remain high and the segment likely will not resume growth until the fourth quarter of this year." As for the wide area network and storage area network segments, the remaining 50 percent of Cypress' revenue, Rodgers characterized the business as "practically dead in the current quarter, suffering from both slow end demand and high inventory." He doesn't expect the WAN segment to show positive movement until the start of 2002. |
