Cypress Reports Q2 Losses, Layoffs

Revenue for Q2 2001 ended July 1, $185.5 million, down 29% from Q1; 10% across-the-board reduction in workforce

July 19, 2001

1 Min Read

SAN JOSE, Calif. -- Cypress Semiconductor Corporation (NYSE:CY) today announced that revenue for the second quarter 2001 ended July 1, 2001, was $185.5 million, down 29% from first quarter 2001 revenue of $262.3 million and down 38% from the year-ago quarter revenue of $300.8 million. Net income for the second quarter 2001 excluding goodwill (acquisition-related costs and non-recurring items) was $787,400, resulting in diluted earnings before goodwill (EBG) of $0.01 per share, compared with first quarter 2001 EBG of $0.25 per share and the year-ago quarter EBG of $0.54 per share. Cypress CEO T.J. Rodgers said, "Cypress has been through two sequential down quarters of 29% since we achieved record revenue of $370.0 million in the fourth quarter of 2000. Our company's quarterly revenue has effectively been cut in half in six months, illustrating just how steep this downturn has been. We are proud to have endured this precipitous decline in revenue without losing money." Rodgers continued, "In the third quarter of 2001, we will take a restructuring charge of $140 million-$180 million, primarily to write down excess manufacturing equipment and to reduce our manufacturing headcount by 500. There will also be a 10% across-the-board reduction in force in non-manufacturing functions of the company, bringing the total reduction in force to 650. The benefit of these actions will commence in the fourth quarter of 2001." Cypress Semiconductor Corp.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like