IFNNF - Cypress Semiconductor After Numbers: No Play With Merger Arbitrage - Just Hold
Introduction
Cypress Semiconductor's (CY) second-quarter results were somewhat disappointing. In the second quarter, the revenue was down 15 percent. Net losses were USD 12.7 million. The revenue coming from the MCD segment (Microcontrollers and Connectivity Division) was down 4 percent. The revenue coming from the MPD segment (Memory Products Division) even dropped 30 percent. The adjusted gross margin was 47 percent, slightly under the 47.3 percent consensus. The operating margin was 20.4 percent. Note: Cypress' revenue fell because of the company’s divestment of its NAND business, which contributed USD 49.5 million to Cypress’s