A summary of the CNBC interview, obtained from the Dow Jones News Service-
DOW JONES NEWS SERVICE
11:12 =Cypress Semi CEO Says SRAM Shipping Problems Hurt 4Q Net>CY
NEW YORK (Dow Jones)--Cypress Semiconductor Corp. (CY) Chief Executive T.J.
Rodgers attributed the company's expected fourth-quarter earnings shortfall to
lower-than-anticipated wafer foundry sales and shipping problems in its static
RAM, or SRAM, products.
In an interview on CNBC Tuesday, Rodgers said the global integrated circuit
chip supplier will miss fourth-quarter expectations of 9 to 10 cents a share
by either breaking even or earning a penny a share.
Rodgers said shipping problems in Cypress' SRAM business caused damage in
the quarter.
"Our business is overwhelmed," he said, but "we believe our static RAM
business will recover in the very next quarter."
Rodgers also explained his company's involvement in wafer making.
"We're a chip company, but we have a couple of deals in the past where we
traded products from another company in return for making wafers for another
company and that business dropped down this quarter by about $5 million," he
said.
Rodgers noted that wafer foundry revenue has been a "relatively small part
of our business."
Although 19% of his company's revenue comes from Asia, he said, he is not
very concerned with the effects of the currency crisis there.
"Of all the things that I worry about, that is one I don't have to worry
about," he said.
He said 9% of Cypress' business comes from the "stable" Japanese market and
of the remaining 10% from "non-Japan Asia," about half is contracted to
American and European companies. That leaves 5% exposure to Asian economic
fluctuations, he said.
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