MANHASSET, N.Y. Cypress Semiconductor Corp. posted a net loss of $28.1 million, or 22 cents per share on sales of $210.2 million in the fourth quarter, compared to net earnings of $23.2 million, or 15 cents per share on sales of $236 million in the year-ago quarter.
Cypress (San Jose, Calif.) originally expected to post a 9 cents per share loss, while analysts expected a 6 cents per share loss.
Reiterating an announcement earlier this month, Cypress also said it would implement a restructuring plan that would result in $15 million of charges.
Under the plan, Cypress would cut 200 employees worldwide, and merge its Timing Technology division and Personal Communications division into a new division called Consumer and Computation. The plan also calls for Cypress to close its Austin, Tx., CAD center and reduce the number of management layers to no more than six in most of the company's functioning organizations.
Cypress president and chief executive T.J. Rodgers said in a statement that the company suffered from fab underutilization during the quarter, due in part to the company's decision to reduce inventory.
For the fiscal year 2004, Cypress posted total revenue of $948.4 million, up 13.3 percent from $836.8 million a year ago. Net income $24.7 million, or 17 cents per share, compared with a net loss of $5.3 million, or 4 cents per share a year ago.