Cypress Semiconductor (CY) Q3 Earnings Miss Estimates
Zacks Investment Research | Oct 31, 2016 10:00PM ET
Cypress Semiconductor Corporation (NASDAQ:CY) reported adjusted third-quarter 2016 earnings of 7 cents per share, missing the Zacks Consensus Estimate of 8 cents. Adjusted earnings exclude one-time items but include stock-based compensation expense.
During the quarter, design win momentum and market share gains continued. The acquisition of Broadcom (NASDAQ:AVGO)'s Wireless Internet of Things (IoT) business that Cypress closed in early July, contributed $62.6 million to its revenues. Last quarter, the company recognized $0.4 million of synergies from this acquisition.
Cypress also recognized $44 million of synergies associated with the Spansion merger and expects $180 million of synergy by the end of this year. The integration remains well on track and Cypress is witnessing new opportunities at top-tier customers, particularly in the automotive and industrial markets. These markets now account for a majority of the company’s sales, bringing in more stable revenues and margins.
However, a weak and uncertain macro environment, limited visibility and intensifying competition are nagging concerns.
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