Thu, Jan. 22, 2:11 PM
- Both Cypress Semi (CY +2.6%) and merger partner Spansion (CODE +2.7%) beat Q4 revenue estimates while posting in-line EPS.
- Cypress guided on its CC for Q1 revenue to fall 2%-5% Q/Q (implies a range of $174.8M-$180.4M vs. a $178.4M consensus) and EPS to be in a range of $0.08-$0.10 (below an $0.11 consensus).
- Spansion has guided for Q1 revenue of $270M-$310M; the midpoint is below a $300.9M consensus.
- The chipmakers still expect their 50:50 merger to close in 1H15. Shares of both remain sharply above where they traded before the deal was announced on Dec. 1.
- Cypress: Q4 results, PR. Spansion: Q4 results, PR.
Thu, Jan. 22, 8:01 AM| Comment!
Wed, Jan. 21, 5:30 PM
Wed, Jan. 14, 1:20 PM
- A slew of tech companies have posted steep losses on a day the Nasdaq is down 1%.
- Major decliners include Pandora (P -5%), LED giant Cree (CREE -5.9%), cloud HR software leader Workday (WDAY -4.1%), chipmakers Ambarella (AMBA -5.3%), Pixelworks (PXLW -3.7%), Audience (ADNC -3.6%), Spansion (CODE -4.4%), and Cypress (CY -3.9%) (the last two are merger partners), OLED materials/IP provider Universal Display (OLED -4.2%), industrial automation tech provider Echelon (ELON -4.8%), and P2P lending giant/recent IPO LendingClub (LC -4.8%).
- Possibly affecting OLED: LG Display (NYSE:LPL) has been ordered to halt operations at an OLED TV panel production line following a gas leak that killed two workers.
- Cree and Pandora aren't far removed from their 52-week lows; the former reports on Jan. 20, and the latter on Feb. 5. LendingClub, whose selloff follows a volatile Tuesday, could be affected by a neutral coverage launch from Susquehanna.
Thu, Jan. 8, 4:18 PM
- Hit hard on Tuesday amid a market rout, chip stocks have more than made up for it today: The Philadelphia Semi Index (SOXX +3%) handily exceeded the Nasdaq's 1.8% gain. The index posted a 1% gain yesterday.
- Micron (MU +4.9%) has been one of the standouts, more than recouping yesterday's post-earnings losses. Ditto Freescale (FSL +9.2%), which benefited from a Deutsche target hike, and Marvell, which got a lift from an MKM note. Others: NVDA +3.8%. NXPI +4.7%. AVGO +5%. SWKS +4.5%. CY +6.1%. CODE +5.9%. CAVM +5.2%. SWKS +4.5%. SLAB +4.5%. KLIC +3.8%. SMTC +3.6%. ATML +3.7%. FCS +4.2%. TSEM +4.2%.
- As is their custom, both chipmakers and their clients have been unveiling plenty of new products at CES.
- ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Tue, Jan. 6, 1:36 PM
- Up 30% in 2014, the Philadelphia Semi Index (SOXX -2.2%) has fallen over 4% thus far in 2015. Today's decline comes as the Nasdaq drops 1.6%.
- Many names are posting 3%+ losses. SWKS -4.2%. QRVO -5.8%. AMAT -3.4%. KLAC -3.1%. SYNA -5.4%. IPHI -9%. ARMH -5.4%. SIMO -4.5%. MCRL -3.9%. AMCC -3.9%. CODE -5.1%. CY -4.6%. QUIK -7.9%.
- This morning, Gartner estimated global chip sales rose 7.9% in 2014 to $339.8B, a little less than the 9.4% recently estimated by IHS. Sell-side firms have forecast industry growth will fall to the ~5% range in 2015.
- Gartner thinks memory sales rose 16.9%, fueled by a 31.7% increase in DRAM sales. All other chip markets rose by 5.4%, a marked improvement from 2013's 0.8%. Intel (15% share) and Samsung (10.4%) claimed over a quarter of industry sales between them. Qualcomm (5.6%), Micron (4.9%), and SK Hynix (4.7%) rounded out the top-5.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Dec. 23, 2014, 9:29 AM
- On yesterday evening's episode of Mad Money, Jim Cramer declared Cypress Semi (NASDAQ:CY) a good way to play the chip industry's consolidation wave. Cypress and merger partner Spansion (NYSE:CODE), both of which soared after announcing their 50/50, all-stock, deal on Dec. 1, are getting a lift.
- Cramer also stated he thinks industry consolidation, which has contributed to a huge rally in chip stocks over the last 15 months, is far from finished. "I think the logic of this consolidation is so powerful that within a few years, there will be hardly be any small semiconductor companies left. That may sound crazy, but to me it makes sense."
Dec. 15, 2014, 10:14 AM
- Wedbush has upgraded Cypress Semi (CY +2.9%) to Outperform, and hiked its target to $18. 50/50 merger partner Spansion (CODE +3%) is naturally following Cypress higher.
- Cypress and Spansion both received upgrades two weeks ago after announcing their merger; analysts praised the deal's cost synergies, tax savings (CODE has $900M worth of NOLs), and memory/microcontroller product synergies.
Dec. 3, 2014, 1:48 PM
- The Philadelphia Semi Index (SOXX +1.7%) is making fresh highs after Microchip (MCHP +4.1%) slightly upped its calendar Q4 guidance, and stated it continues to "see an improvement in our bookings and billings since our earnings call on October 30, 2014."
- Chip stocks had also jumped following that earnings call, during which Microchip said it believed the inventory correction that triggered an Oct. 9 warning (and a major chip stock selloff) was mostly over. While a slew of chipmakers provided soft Q4 guidance after Microchip's warning, fears of a major correction didn't pan out.
- The group outperformed a bit yesterday after Cypress (CY +2.9%) announced it's merging with Spansion (CODE +2.5%), continuing the chip industry's consolidation wave. Several firms have upgraded Cypress and/or Spansion in response, praising the deal's cost synergies.
- Notable gainers include not only chipmakers, but also chip equipment, test/assembly, and IP licensing firms: ARMH +3.8%. AMBA +3%. MX +9%. MXIM +4.2%. AMCC +3.5%. ADI +3.1%. SIMG +3.7%. AMKR +4.2%. SPIL +3.3%. SYNA +2.7%. ATML +3.7%. ENTR +3.8%. AMAT +2.7%. KLAC +2.5%.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
- Last week: Chip stocks rally after ADI's earnings
Dec. 2, 2014, 12:47 PM
Dec. 2, 2014, 9:12 AM
Dec. 1, 2014, 5:40 PM
Dec. 1, 2014, 5:18 PM
Dec. 1, 2014, 4:14 PM
- SRAM/microcontroller vendor Cypress Semi (NASDAQ:CY) and NOR flash/microcontroller vendor Spansion (NYSE:CODE) are merging in a 50-50 all-stock deal. With Spansion having a smaller market cap than Cypress as of today's close ($1.45B vs. $1.7B), the deal effectively grants an M&A premium to Spansion.
- The companies declare the post-merger entity will be the world's biggest SRAM and NOR flash vendor, and "a [$2B/year] global leader in microcontrollers and specialized memories for embedded systems." They promise over $135M/year in cost synergies within three years, and an $0.11/share quarterly dividend.
- Cypress CEO T.J. Rodgers will be CEO of the combined company, and Spansion chairman Ray Bingham its non-executive chairman.
- The deal is expected to close in 1H15. It's the latest in a string of mergers and acquisitions to hit the chip industry over the last 12 months.
- CODE +10.5% AH.
Nov. 24, 2014, 8:08 AM
Oct. 16, 2014, 11:47 AM
- Cypress Semi (CY +4.2%) guides on its Q3 CC for Q4 revenue of $180M-$185M and EPS of $0.13-$0.15, largely below a consensus of $189M and $0.15.
- With shares having been bludgeoned on Friday thanks to fellow microcontroller vendor Microchip's warning and prediction of an industry inventory correction, some bad news was priced in.
- Q3 results, PR
CY vs. ETF Alternatives
Cypress Semiconductor Corp, along with its subsidiaries, designs, develops, manufactures and markets high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and system value.
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