T.J. Rodgers predicts strong H2.

“We continue to focus on operating expense control and even in a challenging revenue quarter our non-GAAP EPS grew 28% year over year. Inventory decreased 17.3% sequentially, and inventory in the supply chain remains very low,” says founding CEO T.J.Rodgers.

Cypress Semiconductor had sales revenue of $242m in Q4 down 8.5% from the $265m of Q3 with a gross margin of 56% and a $56m net profit. Compared to Q4 2010 it was 10% up.

For the year 2011, revenues were $995.2m, an increase of 13.4% from 2010’s $877.5m. “A very good year,” says Rodgers, “especially considering the macroeconomic cloud that has hung over the industry for the last six plus months.”

“Booking visibility will remain limited into Q1 due to historically low lead-times, continued inventory adjustments and ongoing concerns over worldwide macroeconomic issues,” says Rodgers, “our book-to-bill ratio for Q4 was 0.58, a decrease from that of Q3 and less than the normal seasonal figure. Consequently, we expect Q1 revenue also to decrease at a rate greater than normal. Assuming no further macroeconomic deterioration, we expect that bookings and revenue will bottom out in Q1 2012 and lead to a strong second half as many new product design wins ramp into production.”

Inventory dollars at the end of were down 17.3% relative to Q3, and inventory days were down by 12 days to 79 days.

Cash and investments Q4 totalled $166.3m, an increase of $31.3m from Q3.

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