Cypress Semi Ups Net Guidance

The company expects to earn 23 cents a share pro forma in the second quarter.
Author:
Publish date:

Shares of

Cypress Semiconductor

(CY) - Get Report

jumped in premarket trading Wednesday after the company said earnings in its June quarter will be higher than the consensus forecast.

In the second quarter ending June 27, Cypress expects to earn 23 cents a share on a pro forma basis that excludes the amortization of intangibles and various special items. Analysts surveyed by Thomson First Call were forecasting earnings of 21 cents a share on that basis.

"The expected upside in earnings is primarily driven by improved product mix, which is expected to generate higher gross margins, now estimated at 54% vs. the prior quarter's 52%," Cypress said.

Cypress put second-quarter revenue at $262 million, in line with the existing Thomson First Call consensus.

The shares were recently up 65 cents, or 4.6%, to $14.70 on the Instinet premarket session.