Cypress Semiconductor Corp., which sells chips and sensors to electronics manufacturers, said Thursday it posted a profit for the third quarter, compared with a loss in the year-earlier period, as revenue jumped nearly 30 percent.
While earnings beat analysts' estimates by a penny, revenue was lower-than-expected, and the chip maker is projecting that its top line will decrease sequentially in the fourth quarter, which would come short of current Wall Street projections. Cypress cited softer market for SRAM and legacy products.
T.J. Rodgers, the company's president and CEO, said he expects systems on chips and touch sensors to "outperform season trends."
The company, based in San Jose, Calif., reported net income of $34.4 million, or 18 cents per share, for the third quarter ended Oct. 3, compared with a loss of $19.7 million, or 13 cents per share, a year earlier.
Excluding stock-based compensation and other items, adjusted earnings were 28 cents per share compared, up from 10 cents per share a year earlier. According to a poll by Thomson Reuters, analysts, on average, were expecting earnings of 27 per share. Analysts' estimates typically exclude one-time charges or credits.
Revenue was $231.9 million, up 29.8 percent from $178.7 million in the prior year quarter and up 4 percent from $223 million in the second quarter ended July 4. Cypress attributed the more modest sequential increase in revenue to slowing demand from PC manufacturers and "manufacturing limitations" faced by the division that makes memory modules.
According to a poll by Thomson Reuters, analysts, on average, were expecting profit of 27 cents per share on revenue of $237.65 million for the third quarter.
Analysts project revenue of $236.9 million for the fourth quarter, so the company's current revenue forecast for the period would fall short of that.
Shares climbed 33 cents to $13.17 in after-hours trading. The stock had closed up 45 cents, or 4 percent, to $12.84.
