Cypress Mid-Quarter Update, First Quarter 2003.Business Editors/High-Tech Writers SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--March 4, 2003 Cypress Semiconductor Corporation (NYSE NYSE See: New York Stock Exchange : CY) today announced that revenue for the 2003 first quarter, ending March 30, 2003, is currently projected to be slightly higher than previous guidance. Cypress, which posted revenue of $174.4 million in the fourth quarter of 2002, had guided to flat revenue in the first quarter based on expectations of a typical seasonal decline. Cypress now expects revenue to grow approximately 2% to $178 million, aided by stronger demand in the wireless and computation segments. Cypress started the first quarter needing 43% of turns business to meet its guidance for the quarter. Turns have been slightly better than expected two months into the quarter and are expected to continue at a good pace. The company expects to post a book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can for Q103 of better than 1.0. As previously communicated, Cypress has taken additional cost reduction measures during the first quarter to further lower its pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma break-even sales from $190 million to $185 million. Benefits from these actions, which included a reduction in force affecting approximately 150 employees, will be fully realized in Q203. This is in addition to the reduction of 380 employees implemented in the fourth quarter of 2002. Cypress still expects gross margin to improve 100-200 basis points to 42-43% in the current quarter and to realize a slight improvement in profitability, aided by earlier cost-reduction measures. Cypress CFO See Chief Financial Officer. and VP of Finance Emmanuel Hernandez will discuss Cypress's financial and strategic outlook during two upcoming conferences. On Wednesday, March 5, at 8:30 a.m. Pacific Standard Time (PST PST Paroxysmal supraventricular tachycardia, see there ), Hernandez will address the Morgan Stanley Semiconductor and Systems Conference. Hernandez's presentation can be accessed both live and on-demand through www.cypress.com/investors/cfomorgan2003. Hernandez will address the Ninth Annual Wachovia Securities Convertible Securities Conference on Friday, March 7, at 8:30 a.m. PST. A webcast of this presentation is accessible through http://www.twst.com/econf/mm/fu11/cy.html. About Cypress Cypress Semiconductor Corporation (NYSE: CY) is Connecting from Last Mile to First Mile(TM) with high-performance solutions for personal, network access, enterprise, metro switch, and core communications-system applications. Cypress Connects(TM) using wireless, wireline, digital, and optical transmission standards, including Bluetooth, USB USB in full Universal Serial Bus Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer. , Fibre Channel, SONET/SDH, Gigabit Ethernet, and DWDM (Dense WDM) The term given to wavelength division multiplexing (WDM) when significantly more channels were being added. Since WDM is increasingly more "dense" all the time, both terms are used synonymously. See WDM. DWDM - wavelength division multiplexing . Leveraging its process and system-level expertise, Cypress makes industry-leading physical layer devices, framers, and network search engines, along with a broad portfolio of high-bandwidth memories, timing technology solutions, and programmable microcontrollers. More information about Cypress is accessible online at www.cypress.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements herein that are not historical facts are "forward-looking statements" involving risks and uncertainties. This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 933 and Section 21E of the Securities Exchange Act of 1934 including statements regarding our revenue and gross margin expectations from our market segments and product mix respectively. Factors that could cause actual results to differ materially from the forward looking statements include but are not limited to: the effect of global economic conditions, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization, technological and manufacturing difficulties, and capacity and supply constraints. Please refer to Cypress's Securities and Exchange Commission filings (including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 30, 2001 and the Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarters ended March 31, 2002, June 30, 2002 and September 29, 2002) for a discussion of such risks. Cypress assumes no obligation to update these forward looking statements. Note to Editors: Cypress and the Cypress logo are registered trademarks of Cypress Semiconductor Corporation. "Connecting from Last Mile to First Mile" and "Cypress Connects" are trademarks of Cypress Semiconductor Corporation. |
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