Programmable microchip maker Cypress Semiconductor (NASDAQ:CY) reported first-quarter results this morning, meeting analyst expectations for both sales and earnings. Shares rose as much as 2.5% in pre-market trading.
Cypress' revenue decreased 1.4% year-over-year to $170 million, meeting the recently revised guidance target at the upper end of the original range given three months ago.
Earnings more than doubled to $0.07 per share. The guidance revision, posted two weeks ago, set off a flurry of raised analyst targets, and the final results were in line with the updated Street consensus.
The book-to-bill ratio came in at 1.08, pointing to continued revenue strength in upcoming quarters. The metric weighs incoming orders against shipped products with recognized revenue, and anything above 1.0 is a sign of increasing order volumes.
Cypress highlighted multiple design wins for the company's TrueTouch touchscreen controllers, in products like smartphones for the Chinese market and smartwatches on a global level.
"The design win pipeline for our TrueTouch touchscreen products was evident at both the Consumer Electronics Show in Las Vegas and the Mobile World Congress show in Barcelona, Spain last quarter," said Cypress CEO T.J. Rodgers in a prepared statement.
Rodgers also offered some color on near-term business trends: "Our Q2 earnings will grow much faster than revenue, reflecting the inherent leverage created by our efficiency improvements."