Cypress Semiconductor Corp. (NASDAQ: CY) is looking a bit weak after an earnings warning. The semiconductor outfit reported that it has recently seen some order decreases, which it blamed as being mostly in certain wire line and handset customers. Cypress also noted that it is seeing weaker than expected revenues from its distribution channel, and the blame there was mostly due to lower turns business in Europe and Asia.
Today’s warning is for the first quarter of 2012, but the company is trying to maintain that the second quarter is already looking better as customer backlog and bookings stabilized in January and also noting that improvements were seen in the last six weeks.
Specifically noted was, “We continue to believe that Q1 will be the bottom for revenue and bookings, and at this point expect Q2 revenue to grow sequentially. However the macro environment and order patterns remain very fluid and lead-times are near historical lows, impacting visibility.”
The guidance specifics showed revenue expectations of $180 million to $190 million. with 53% to 54% gross margins, and operating earnings of $0.08 to $0.11 in earnings per share. Thomson Reuters had estimates of $0.17 EPS on $205.9 million in revenues.
Cypress Semi shares closed down 3.5% and the after-hours session is only down about 1.7% at $15.97.
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