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What: Shares of Cypress Semiconductor (NASDAQ:CY) have popped today by upwards of 11% after the company reported better-than-expected earnings.

So what: Revenue in the second quarter added up to $193.5 million, which translated into non-GAAP earnings per share of $0.14. Those results decimated the Street's forecasts of $182.8 million in sales and $0.07 per share in adjusted profit.

Now what: Adjusted gross margin improved sequentially to 53.1%, and the top-line growth was attributed to strong performance of Cypress' TrueTouch controllers. The chip maker's newest generation programmable system-on-a-chip, PSoC 4, has booked its first revenue, making it the fastest new product ramp. Sales are expected to grow again sequentially heading into the next quarter, which should translate into earnings leverage.

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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.