BTE Earnings and Revenues; SPWR Spinoff Proceeding
8:12AM Cypress Semi beats by $0.07, beats on revs (CY) 26.47 : Reports Q2 (Jun) earnings of $0.28 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $0.21; revenues rose 58.9% year/year to $592.3 mln vs the $540 mln consensus. "Cypress achieved record quarterly revenue and exceeded guidance in both our core semiconductor and SunPower businesses. Despite a very challenging economic environment, our semiconductor business grew solidly across all divisions driven by the strength of our programmable solutions.... While we remain cautious about the macro economic environment for the second half of 2008, we anticipate strong sequential growth in our semiconductor business, driven mainly by our flagship programmable products, our PSoC Programmable-System-on-Chip solution and by our WestBridge peripheral controllers. Both of these products are expected to achieve record quarterly revenues in our seasonally strong Q3." Non-GAAP consolidated gross margin for the second quarter was 35.0%, up 0.8 percentage points from the previous quarter. Non-GAAP semiconductor gross margin for the second quarter was 50.7%, matching the previous quarter... Separately, the co announced that its Board of Directors has authorized management to proceed with a spin-off to Cypress's shareholders of the Class B common shares of SunPower (SPWR) held by Cypress, with the objective of having the transaction completed by the end of 2008, or sooner if possible. Cypress previously announced that on April 16, 2008, it had received a favorable ruling from the Internal Revenue Service with respect to certain tax issues arising under Section 355 of the Internal Revenue Code in connection with a potential spin-off transaction. In connection with the proposed spin-off, the Cypress Board contemplates adjusting outstanding employee equity awards in a manner intended to preserve their intrinsic value as well as a possible tender offer for all or a portion of the company's outstanding 1.00% convertible senior notes due September 2009.
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