Cypress Semi beats by $0.02, beats on revs Reports Q3 (Sep) earnings of $0.14 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.12; revenues fell 7.0% year/year to $188.72 mln vs the $185.43 mln consensus.
Q3 revenue declined 2% sequentially and was slightly higher than recently revised guidance. Co was disappointed to lower guidance for Q3, but it experienced unforecasted weakness in the mobile handset market. Gross margins remained strong at 53.8% and operating expenses achieved a 3.5-year low. Co said it would continue to endure volatility and granularity in mobile handset business in the fourth quarter, leading to a sequential decline of 10% to 14% in revenue, consistent with the guidance given in pre-announcement. Despite some delays, design win pipeline remains robust, especially for new TrueTouch Gen5 touchscreen products, and co expects to resume revenue growth in early 2014.