Cypress Shares Fall Following Loss

CITY (TheStreet) -- Cypress Semiconductor(CY Quote) shares were slipping after the opening bell and following news that the chipmaker swung to a loss in the most recently completed quarter.

Shares were down 17 cents, or 1.7%, at $10.11 in the morning.

According to a press release issued Thursday morning, Cypress said it lost $19.7 million, or 13 cents per share. After excluding certain items and charges, however, the company said it would have earned 10 cents per share in the third quarter, which compares favorably to the 6-cent-per-share forecast of several analysts.

In the year-earlier quarter, the company turned in a $138 million profit, or 86 cents per share.

Though revenues topped estimates as well, sales also slumped 20% to $178.7 million from the $222.7 million in revenue posted in the same quarter last year.

Cost of sales, however, also ticked lower compared to last year, helping to improve gross margins to 47.3% from 44.3%.

Cypress CEO T.J. Rodgers highlighted the company's 15% sequential revenue gains and bettering non-GAAP gross margins, while also noting improvements in the overall market.

"While we can't predict where the macro economy will go, we are seeing more positive signs of end-market stability and continued low overall supply-chain inventories," Rogers said in the press release.

Earlier in the week, chipmaking bellwether Intel(INTC Quote) blew away earnings forecasts, while fellow tech headliner IBM(IBM Quote) is set torelease quarterly results after Thursday's closing bell.

-- Written by Sung Moss in New York

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