Cypress Semiconductor Corp. decreased its second quarter revenue projections by about $25 million on Monday.
The San Jose, Calif., chip company announced that revenue for the second quarter of 2001 is expected to be in the $175 million to $185 million range, a 29%-33% decline from last quarter's revenue of $262 million. Cypress originally expected a decline of 20%-24% in revenue, bringing it to between $200 million and $210 million in the quarter.
The company stated that business conditions have not materially improved during the quarter, and its Computation segment, which represented 20% of revenues during the first quarter, has stalled after showing some signs of recovery early in the quarter.
Cypress' Wireless division, which represented 26% of revenuesduring the first quarter, has exhibited some "positive movement" during the second quarter but is not expected to resume growth until the fourth quarter.
The WAN/SAN segment, which represented 54% of revenues during the first quarter, continues to suffer from both slow end demand and high inventory and is not likely to grow sequentially until the first quarter of next year.
"Business conditions have not materially improved in the market segments that we serve," said Cypress chief executive T.J. Rodgers, in a statement. "Cypress' revenue has literally been cut in half over the last six months, from the fourth quarter 2000 record revenue of $370 million to roughly $180 million in revenue this quarter.
Our near-term goal is to endure this severe decline without losing any money. We will continue to evaluate market conditions and provide our investors a more comprehensive update at our earnings release conference call scheduled for July 19, 2001."