Cypress' quarterly sales falls 17%, sees weak outlook
Silicon Strategies
10/14/2004, 9:27 AM ET
SAN JOSE, Calif. — Cypress Semiconductor Corp. on Thursday (Oct. 14) said that revenue for the 2004 third quarter was $219.6 million, down 17 percent from prior-quarter revenue of $264.3 million and up 1 percent from year-ago third-quarter revenue of $216.6 million.
Including amortization of intangibles and other acquisition-related, restructuring and special charges and credits, Cypress posted GAAP net income of $4.3 million for the 2004 third quarter, resulting in diluted earnings per share of $0.02.
The chip maker, based here, had lowered its forecast for the quarter.This, meanwhile, compares to prior-quarter diluted earnings per share of $0.13 and year-ago third-quarter diluted earnings per share of $0.12.
"The 2004 third quarter results were disappointing, particularly after six sequential quarters of revenue growth," said Cypress President and CEO T.J. Rodgers, in a statement. "We entered the third quarter with a sizable backlog but the usual turns business that we were expecting did not materialize. What appeared to be a simple, short-term over-inventory situation in the computation and consumer segment has extended to our communications and wireless segments as well. It is likely that this slow-turns environment will extend into the current quarter."
Rodgers painted a mixed picture for the fourth quarter. "The fourth quarter will remain slow as the inventory comes in line with end-market demand, but looking into 2005, as the revenue of our subsidiary companies — particularly SunPower — accelerates, we believe that we will grow faster than the industry," he said. |
