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What: Shares of Cypress Semiconductor (CY +0.00%) 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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