- Cypress (CY) expects Q3 revenue of $184M-$187M and EPS of $0.10-$0.12, below a consensus of $204.7M and $0.17. (PR)
- The chipmaker primarily blames weak Asian mobile orders, thanks to "a customer push out of certain new handset programs to Q1, as well as order reductions at various end customers in China to balance inventory levels." To a lesser extent, PC weakness is also to blame.
- In addition, Cypress thinks Q4 revenue could fall 9%-11% from Q3 levels; that implies a range of $164M-$170M, well below a $207.3M consensus. Weaker-than-expected TrueTouch touchscreen controller sales in the mobile phone market is blamed, along with inventory corrections and lower memory chip demand from telecom customers.
- Synaptics (SYNA) -1.2% in sympathy. The company has been growing much faster than Cypress, and could be taking touchscreen controller share from its rival. Atmel (ATML) -0.5%.
Cypress issues Q3/Q4 warning, shares -7.7% premarket
Sep 24 2013, 09:22 ET