Cypress Reports Continued Slow Growth
Online staff -- Electronic News, 4/18/2002
e-insite.net
Cypress Semiconductor Corp. continues to slowly ease itself out of recession, today claiming its financial results met expectations. The company said its bookings need to increase for this trend to continue into the second quarter.
The company posted net revenues for the first quarter of $193.2 million, up 1 percent from $191.1 million in the previous quarter, but down 26 percent from year-ago revenue of $262.3 million.
Including special charges, Cypress posted a net loss of $39.8 million, or 33 cents per diluted share, for the first quarter, compared with the previous quarter’s loss of $37.7 million, or 31 cents per diluted share. However, like revenues, the company remains far off its year-ago figures, when it reported net income of $10.5 million, or 8 cents per diluted share.
Pro forma net loss for the quarter was $12.6 million, or 10 cents per diluted share, compared with a pro forma net loss of $13.5 million, or 11 cents per diluted share, in the previous quarter.
"Both our revenue and pro forma loss of 10 cents per share met or exceeded analysts' expectations," said T.J. Rodgers, Cypress’s CEO, in a statement. "This is our second sequential quarter of revenue and earnings improvement, further strengthening our belief that the third quarter last year was the bottom of the recent downturn for Cypress. Our bookings of $201.5 million resulted in a book-to-bill of 1.04, providing us with a modest backlog that has been absent in recent quarters. Although we still need bookings in order to meet expectations for the June quarter, we expect to grow and to improve earnings sequentially."
Rodgers said bookings have grown over the last year, with backlog finally being added after five quarters of sequential decline.
Revenues for Cypress’s WAN/SAN segment accounted for 34 percent of first quarter revenue and increased 4.2 percent from the previous quarter. Revenues from the wireless terminals and wireless infrastructure segment only increased 1.1 percent sequentially, and were 32 percent of Cypress’s overall revenues.
"The data communications market is beginning to improve after one year of dormancy, the wireless market remains active at a reasonably high level and the consumer market continues to be strong," Rodgers said. "We are therefore growing mildly even though our largest market segment, data communications, is just starting to recover."
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