Cypress reports third-quarter 2004 results

OCTOBER 15--Cypress Semiconductor Corp. (San Jose, CA; www.cypress.com) has announced that revenue for the 2004 third quarter was $219.6 million, down 17% from prior-quarter revenue of $264.3 million and up 1% from year-ago third-quarter revenue of $216.6 million. Pro forma net income for the 2004 third quarter was $34.1 million, resulting in diluted earnings per share of $0.22, compared with prior-quarter diluted earnings per share of $0.23 and year-ago third-quarter diluted earnings per share of $0.08. Included in the 2004 third quarter pro forma net income is $29.9 million of favorable adjustment to income tax liabilities equivalent to $0.18 per share. Gross margin for the 2004 third quarter was 49%.

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, compared with prior-quarter diluted earnings per share of $0.13 and year-ago third-quarter diluted earnings per share of $0.12. Cypress president and CEO T.J. Rodgers said, "The 2004 third-quarter results were disappointing, particularly after six sequential quarters of revenue growth. 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."