Cypress Semiconductor Beats on Both Top and Bottom Lines

Cypress Semiconductor (Nasdaq: CY  ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Cypress Semiconductor beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.

Margins shrank across the board.

Revenue details
Cypress Semiconductor logged revenue of $180.3 million. The 15 analysts polled by S&P Capital IQ wanted to see a top line of $178.1 million on the same basis. GAAP reported sales were 26% lower than the prior-year quarter's $242.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS were -$0.17 for Q4 versus $0.19 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.4%, 730 basis points worse than the prior-year quarter. Operating margin was -9.3%, 2,220 basis points worse than the prior-year quarter. Net margin was -13.4%, 2,670 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $174.6 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $782.0 million. The average EPS estimate is $0.57.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 986 members out of 1,030 rating the stock outperform, and 44 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give Cypress Semiconductor a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cypress Semiconductor is outperform, with an average price target of $11.88.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Cypress Semiconductor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On January 26, 2013, at 3:18 PM, rsinj wrote:

    The company did not beat estimates.

    When you give a warning after the quarter is over, essentially telling everyone what your numbers were, then announcing that you "beat" the numbers you gave two weeks earlier (which analysts raced to adjust their estimates to match) is not "beating" estimates.

    Your estimates for the current quarter and next year are already stale as they are now at 3 cents and 53 cents respectively. So, this year will be even lower than 2012.

    For all those experts giving such a great CAPS rating, since that's obviously not newly initiated ratings, they've clearly been wrong over the past 12 months seeing a 50% decline.

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