Q2 net revenues fell 4.2% to $2.17 billion, which surpassed the street projection of $2.13 billion. The top-line was boosted by the strong performance of it’s Analog, MEMS and Sensors Group, where revenues grew 13.2%.
The biggest segment – Automotive and Discrete Group – saw a modest 1.7% uptick, while the Microcontrollers and Digital ICs Group witnessed a 24.4% decline.
Gross margin of 38.2% decreased 200 basis points, mainly impacted by sales price pressure, unfavorable product mix and unsaturation charges.
READ: Weakness in the automotive industry to reflect in Cypress Semiconductor Q2 earnings
Q3 Outlook
For the third quarter, the Switzerland-based firm anticipates
about 15.3% sequential growth in net revenues. Gross
margin is projected to be around 37.5%, plus or minus 200 basis points.
Full-year 2019 revenues are expected in the range of $9.35 to $9.65 billion.
CEO Jean-Marc Chery
said, “Looking at the third quarter, we expect strong sequential revenue growth
of about 15.3% at the midpoint. This growth will be driven by engaged customer
programs and new products in a softer than expected legacy automotive and
industrial market.”