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Cypress Semiconductor (CY) said it earned 25 cents a share in first-quarter earnings excluding items. Analysts had expected the company would earn 23 cents a share, according to Thomson Financial/First Call.

Revenue fell less than 1% to $262.3 million from $264.2 million a year earlier. But the company noted that it made some changes to its business model, which reduced revenue. Excluding the changes, the company said it had $287.3 in revenue.

Cypress, citing weak first-quarter orders and limited visibility, said it expects revenue to fall in the second quarter from the first, to about $200 million to $210 million. It also expects single-digit earnings per share. Analysts already expect it will earn 8 cents a share in the second quarter.

"Semiconductor industry revenue is now projected to decline 15% from 2000 revenue, and it appears that the communication segment, on which we have focused a significant portion of our business, is getting hurt the most," CEO T.J. Rodgers said in a statement. "However, we still believe that the wide area and storage networks, wireless terminal and wireless infrastructure end markets are high-growth markets long-term, and we will continue to focus our new product activities in those markets."