- In addition to missing Q3 revenue estimates (while beating on EPS), Cypress (NASDAQ:CY) is guiding for Q4 revenue of $430M-$460M and EPS of $0.11-$0.15, below a consensus of $478.7M and $0.16. However, expectations were low due to a chip industry inventory correction. In addition, estimates might not fully account for the $100M sale of Cypress' touch controller ops (closed in early August)
- Along with its Q3 numbers, Cypress has announced a $450M buyback, good for repurchasing 13% of shares at current levels. Credit Suisse is providing $400M in financing for the program, which replaces a prior $400M buyback through which $327M worth of shares were bought.
- Annualized synergies from the Spansion merger are up to $120.3M; Cypress reiterates it's ahead of its 3-year plan to reap $160M/year worth of synergies. Integration efforts/job cuts led to a 7.9% Q/Q drop in operating expenses (lifted EPS). Gross margin rose 20 bps Q/Q to 41.2%.
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Q3 results, PR