Actionable news
All posts from Actionable news
Actionable news in CY: Cypress Semiconductor Corporation,

Cypress Semi CEO: A ‘Great Quarter’ of IoT, Auto Chips

Revenue in the three months ended in September rose 14%, year over year, to $604.6 million, yielding EPS of 27 cents, excluding some costs.

Analysts had been modeling $602 million and 23 cents.

Gross profit margin was 43% in the quarter, up from 40.9% in the prior quarter.

Cypress’s sales in its “Microcontroller and Connectivity Division,” or “MCD,” rose 4% from the prior quarter, while sales for the memory products group, including “NOR” flash memory chips, were down 1%.

For the current quarter, the company sees revenue in a range of $575 million to $610 million, which, at the midpoint, is in line with consensus for $592.7 million.

EPS is seen in a range of 23 cents to 27 cents, better than the average 24-cent estimate.

Gross profit margin is expected to be in a range of 43% to 44%.

El-Khoury noted in particular the 80% rise in revenue for IoT components, calling it “stellar.” The business is benefitting from continued strong sales of Nintendo’s (7974JP) “Switch” video game console, but also newer product introductions, such as a raft of Bluetooth wireless ear buds.

Between existing products using Cypress chips and debut products, "If I take it on a multi-quarter basis, the majority is new deployments that’s incremental for us,” said El-Khoury.

In the automotive market, where Cypress makes about one third of its sales, the company’s parts are flourishing both on their own and as they ride the roll-out of “autonomous” drive functions being pushed by Intel (INTC) and Nvidia (NVDA) and their customers.

For example, Cypress already has 65% share of all the NOR flash chips that go into vehicles. The company also dominates in microcontroller chips for powering touch-based displays in dashboards.