Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Cypress Semiconductor (NASDAQ:CY) have plunged today by as much as 10% after the company reported earnings.

So what: Revenue in the first quarter came in at $172.7 million, topping the consensus estimate of $167.3 million. Cypress posted adjusted net income of $4.6 million, or $0.03 per share. That was also ahead of the $0.01 per share that investors were braced for. Shares responded favorably initially, but then Cypress provided guidance on its conference call and sent investors fleeing.

Now what: Second-quarter sales are expected to be in the range of $178 million to $186 million, meaning the company would have to stretch to hit the upper end in order to beat the consensus of $183.1 million. Earnings per share are guided to $0.06 to $0.08, shy of the $0.09 per share forecast. Profitability is also expected to suffer, with Cypress expecting gross margin to fall to 51% as the product mix shifts to lower-margin products.

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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. 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.