If German chipmaker Infineon (OTC:IFNNY) gets the sign-off from shareholders and regulators, the second-quarter 2019 report will be the last for Cypress Semiconductor (NASDAQ:CY). After spending years transforming itself from a commodity semiconductor outfit into a leading connectivity provider powering a myriad of devices from smartwatches to auto technology, Cypress will become a subsidiary of Infineon as early as the fourth quarter 2019. With the run nearly over, it's time for owners of the stock to begin planning an exit.

Not that it's your problem anymore...

Of course, there's always the chance for deals like this to fall through. Remember when Qualcomm (NASDAQ:QCOM) tried to buy Dutch chip specialist NXP Semiconductors (NASDAQ:NXPI), only to be stymied by the Chinese government (China is a primary market for the industry, thus giving regulators there a say on the matter)? That $44 billion deal was much larger than this $10 billion one, and Germany isn't embroiled in a trade war with China (Qualcomm's home market) like the U.S. is. So the chances of the Cypress deal closing seem decidedly better.

But nothing's certain in the world of business and finance, so though financials for the first half of 2019 are likely Infineon's problem, here they are in case investors get dealt a surprise.

Cypress Semiconductor

Six Months Ended June 30, 2019

Six Months Ended July 1, 2018

YOY Increase (Decrease)

Revenue

$1.07 billion

$1.21 billion

(12%)

Adjusted gross profit margin

47.2%

46.1%

1.1 pp

Adjusted operating profit margin

20.7%

21%

(0.3 pp)

Adjusted earnings per share

$0.52

$0.60

(13%)

YOY = year over year. Pp = percentage point. Data source: Cypress Semiconductor.

The first half of the year doesn't look great, except that the lost revenue is due to the company offloading part of its digital memory business to SK hynix system ic at the end of the first quarter. Though it means fewer sales and lower profits, Cypress' overall gross margin on product will be higher and the company will enjoy cash flow from the joint venture when the digital chip industry does well -- which it isn't right now. Overall, it should still be a good move for the long haul as Cypress continues to narrow its focus on connectivity and other next-gen technologies. But at the moment, sales look sluggish.

Various everyday objects displayed in honey comb shaped cells, signifying an internet connection-enabled chip.

Image source: Getty Images.

Timing an exit

Investors can worry about the numbers if Infineon is shut out of a deal somehow. For now, though, there's the cash offer for $23.85 for each share of Cypress. As of this writing, Cypress stock trades for $22.88, about 4% under Infineon's offer. If the acquisition goes through, that wouldn't be a terrible few-month-long return, not to mention one more $0.11 per share quarterly dividend that is likely to be paid out sometime in the fall. Fellow Fool contributor Anders Bylund explains here how to profit from the pending takeover.  

However, as the close of 2019 gets closer, the deal closing date becomes more certain, and shares continue to near their $23.85 target, it will be time to part ways with Cypress Semiconductor. There's always that small risk that things will fall apart, and second-quarter results weren't good enough to prevent some sort of Cypress stock retracement back to pre-deal levels if Infineon has to walk away. Maybe a 4% or so return with a little uncertainty baked in is good enough for some investors, but it isn't good enough for me to wait until the midnight hour. Within the next few months, I'll be selling -- just in case.