SAN FRANCISCO—Chip vendor Cypress Semiconductor Inc. Thursday (Jan. 26) reported sales and profit for the fourth quarter of 2011 that beat analysts' expectations, but warned that it expects revenue for the first quarter of this year to be down more that normal.
Cypress (San Jose, Calif.) reported fourth quarter sales of $242 million, down 8 percent from the third quarter but up 10 percent compared to the fourth quarter of 2010. The company reported a net income for the quarter of $31 million, or 18 cents per share, down 22 percent from the previous quarter but up 244 percent compared with the fourth quarter of 2010.
On a pro forma basis, excluding charges, Cypress reported a net income of $56 million for the fourth quarter, or 32 cents per share, down 19 percent from the third quarter but up 12 percent from the fourth quarter of 2010.
Cypress's sales and profit for the quarter exceeded consensus analysts' expectations, which called for sales of $237 million and pro forma net income of 28 cents per share, according to Yahoo Finance.
For the full year 2011, Cypress reported sales of $995 million, up 13 percent from 2010. The company posted a net income for the year of $167 million, up 117 percent from 2010.
Cypress said revenue decreased sequentially in the fourth quarter in all of the company's core divisions and across most major product lines, as expected.
For the current quarter, Cypress said booking visibility would remain limited due to historically low lead-times, continued inventory adjustments and ongoing concerns over worldwide macroeconomic issues. The company's book-to-bill ratio for the fourth quarter was 0.58, down from the third quarter and below the typical rate for the quarter, Cypress said. The company said it expects first quarter revenue to be down greater than normal as a result.
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