Chipmakers Swing to 2Q Losses - TheStreet

It was a tale of two semiconductors this morning, each posting smaller second-quarter losses than most expected. But shares for each were heading in opposite directions after the opening bell.

Cypress Semiconductor

(CY) - Get Report

swung to a net loss of $45.3 million in the quarter, or 32 cents per share. After excluding certain items, the loss came to $3.8 million, or 3 cents per share.

In the year-ago quarter, Cypress recorded a profit of $16.7 million, or 10 cents a share.

Sales for the company, which makes timing devices and memory chips, also dropped 26% to $155.8 million. Though revenue also grew from $139.3 million in the previous quarter.

Still, that's better than most analysts' forecasts. Consensus estimates swirled around a loss of 9 cents per share on revenue around $152.5 million.

Fairchild Semiconductor


also swung to a loss this morning, reporting a loss of $24.9 million, or 20 cents per share, after posting $6.9 million in income, or 5 cents per share, in the year-ago period.

After adjustments, Fairchild, which makes a diversified line of chips across of swath of industries, said its loss came to $3.5 million, or 3 cents per share.

The company reported sales of $277.9 million in the second quarter, which was down 34% from $418.7 million in revenue reported in the year-ago period. Still, revenue grew sequentially from $223.3 million.

Average analysts were anticipating a loss of 11 cents per share on revenue of $264.8 million.

Gross margin also fell to 23.2% from 28.6%.

The company projected revenues in the next quarter to fall between $300 to $325 million.

Fairchild shares were slipping 1.8% in the morning, while Cypress shares were gaining 1.8%.

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