Cypress Updates Fourth Quarter 2002 Outlook.Business Editors 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)--Dec. 23, 2002 Cypress Semiconductor Cypress Semiconductor is a semiconductor design and manufacturing company. It began operations in 1982 and listed publicly in 1986. Two years later, the company shifted over to the New York Stock Exchange under the symbol, (NYSE: CY). Corporation (NYSE NYSE See: New York Stock Exchange :CY) today announced that revenue for the fourth quarter 2002, ending December 29, 2002, will be approximately $174 million, plus or minus $1 million, 7% lower than the current analysts consensus estimate of $187 million. The company's bookings and turns run-rates, which were tracking close to the analysts estimates through the end of November, slowed significantly since the first week of December and is not expected to rebound during the holidays. Most of the revenue short fall is expected from the company's Wireless segment. At this revised revenue range, the company expects Q402 pro-forma loss of $0.12 per share, plus or minus a penny. As previously announced, the company took actions in Q402 which included a reduction-in-force of approximately 300 employees and further downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of our manufacturing facilities. Given the further decline in Q402 revenue, the company has taken additional actions in the factories and is assessing other cost-reduction measures to bring our break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. further down from the previous target of $195 million. Charges for these actions will be taken in Q402 as well, in addition to our estimated pro-forma results. The near-term objective of the company has not changed - return to profitability and generation of free cash - and we will announce the actions necessary to achieve these objectives at our scheduled conference on January 23, 2002, when we report final Q402 results. Management will host a teleconference at 8:30am-9:30am Pacific on Monday, December 23, 2002 to discuss this revised outlook. The conference call number is (630) 395-0065 with a pass code of "Cypress". Please note that the call will be broadcast over the Internet and can be accessed at http://www.cypress.com under the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " heading in the "Site Map" menu. 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 including but no limited to: "revenue for the fourth quarter 2002, ending December 29, 2002, will be approximately $174million, plus or minus $1 million" and "the company expects Q402 pro-forma loss of $0.12 per share, plus or minus a penny" are "forward-looking statements" involving risks and uncertainties, including but not limited to: achieving the estimated revenue and proforma loss, the effect of global economic conditions, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints. Please refer to Cypress's Securities and Exchange Commission filings for a discussion of such risks. |
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