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Cypress Semiconductor tops analysts’ consensus in Q2

Cypress Semiconductor (NASDAQ: CY) reported a 1.3% decline in second-quarter revenues to $532.2 million, hurt by the weakness in the automotive industry. The top-line was, meanwhile, slightly better than the analysts’ projection of $530.89 million.

The Microcontroller and Connectivity Division saw its revenues slide 3.9% year-over-year on the industry headwinds, as well as the US-China trade tensions. The smaller Memory Products Division, meanwhile, declined 30.4%.

Earnings fell to $0.25 per share from $0.33 per share a year ago. The street projection for Q2 earnings was pegged at $0.24 per share.

computer chips
Image for Representation (Photo by Elly Brian on Unsplash)

CY shares were modestly up 0.18% following the announcement of the results. The stock is up 83% in the year-to-date period, thanks to its acquisition by German rival Infineon Technologies

Last month, the San Jose, California-based firm said it would be acquired by semiconductor solutions firm Infineon Technologies for an enterprise value of €9 billion. The deal, which represented a 46% premium to Cypress’s then trading price, was well received by the street.

READ: Intel stock jumps as it surpasses Q2 estimates; Apple to buy its smartphone modem business for $1 billion

The transaction would be closed sometime later this year or early next year, meaning this could be the penultimate or final quarterly results.

Due to the acquisition, Cypress said it will not hold an earnings conference call and has suspended the practice of providing forward-looking guidance.

On Tuesday, rival Texas Instruments (NASDAQ: TXN) also reported a 9% decline in revenue and 7% fall in earnings in the second quarter, hurt by the weakness in the automotive industry.   

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