Cypress expects sales fall in Q4News from E-InSiteCypress Semiconductor has reported a slight revenue increase in Q3. Revenues increased 1.4 per cent to $205m from Q2’s $202.1m. This continues a steady increase since Q3 2001’s $180.3m.
The company posted a net loss of $55.1m for Q3. This compares to a net loss of $28.1m in the previous quarter. However, Cypress’ pro forma net loss has been shrinking, coming in at $3.2m for Q3.
"The cause was a September bookings slowdown that resulted in quarterly bookings of $184m and a book-to-bill ratio of 0.9," said T.J. Rodgers, Cypress’ CEO. "The slowdown occurred in our computation and consumer segment, which accounts for about one-third of our business. It is not a profound problem, but the PC boom we usually experience every pre-holiday third quarter was anemic. This modest problem compounded the ongoing malaise in the communications sector, which accounts for two-thirds of our business."
The company’s revenue streak looks set to end, with Rodgers forecasting a 5 per cent to 10 per cent sequential decline in revenues for Q4. He said the company is taking the actions now to become profitable in Q1, even if its remains at the $200m mark.
"We had hoped, right up to September, that our previous cost cuts - which focused on manufacturing and overhead spending - would allow for profitability in the third quarter and sequential improvement thereafter," Rodgers said. With this new bookings slowdown, we have opted to cut expenses further in order to reduce our breakeven revenue from $213m to about $200m."
The company plans to cut some of its lowest return-on-investment R&D projects this quarter.
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