Cypress (CY) Adds Jeannine Sargent to its Board of Directors

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Cypress Semiconductor Corp . CY recently announced changes at the management level with the appointment of Jeannine Sargent to its board.

Sargent had earlier worked with Flex, where she led one of the most important and fast growing design-enabled businesses. She had also served as CEO at Oerlikon Solar, a thin-film silicon solar photovoltaic (PV) module manufacturer, and Voyan Technology, an embedded systems software provider to the communications and semiconductor industries.

Here at Cypress, she will be part of the company's Compensation Committee besides holding other responsibilities.

Management believes that Sargent's experience in varied fields and her leadership will be instrumental in the company's long-term goal achievement.

Steve Albrecht, Cypress' chairman of the board, said, "She strengthens our team with the depth of her experience in growing innovative and profitable systems businesses at the forefront of emerging, high tech industries. I'm excited for her valuable contributions toward supporting the management team as they continue executing our strategy to become the leading embedded system solutions supplier in high-growth segments including Automotive, Industrial and applications across the IoT."

Notably, the company underperformed the industry it belongs to on a year-to-date basis. The company returned 37.6%, while the industry grew 43.6% over the same time frame.

Looking Ahead

Cypress is expected to report fourth-quarter 2017 results on Feb 1.

For the upcoming quarter, management expects revenues in the range of $575-$610 million, down 2%, reflecting weakness in the consumer segment. However, the company is expected to witness growth in PSoC, USB-C and memory. The Zacks Consensus Estimate is pegged at $593.7 million. Pro forma gross margin is expected in the range of roughly 43-44%.

On a GAAP basis, the bottom line is expected to be in the range of a loss of 1 cent to earnings of 3 cents per share. Pro forma earnings per share are expected in the range of 23 cents to 27 cents. The Zacks Consensus Estimate is pegged at 25 cents.

To Conclude

Cypress Semiconductor is currently benefiting from improvement in automotive, industrial PsoCs and USB-C solutions. Its USB-C product continues to witness rapid penetration. Driven by growth in these segments, the company has been performing well for quite some time now.

Also, the company's increasing presence in the IoT market is giving a boost to the top line and profitability. The acquisition of Wireless Internet of Things (IoT) business has further strengthened the company's leading position in the IoT market.Currently, its WICED platform is one of the largest IoT portfolios in the industry.

However, weak and uncertain macro environment remain concerns.

Cypress Semiconductor Corporation Price and Consensus

Cypress Semiconductor Corporation Price and Consensus | Cypress Semiconductor Corporation Quote

Stocks to Consider

Currently, Cypress carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Groupon Inc. GRPN , PetMed Express, Inc. PETS and SMART Global Holdings, Inc. SGH , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

The long-term earnings per share growth rate for Groupon, PetMed Express and SMART Global is projected at 7%, 10% and 15%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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