Recently, Cypress Semiconductor Corp. ( CY ) increased its revenue expectation for the first quarter of 2014.
The chip maker now expects sales of $169-$171 million, up from its previous guidance range of $161 to $168 million. Analysts, on an average, expect revenues of $165 million, according to Thomson Reuters.
Management expects revenues to increase on account of new customer and new program ramp ups and solid design wins in TrueTouch products.
Additionally, Cypress announced the retirement of Executive Vice President (EVP) and Chief Financial Officer (CFO), Brad Buss. Buss will continue to serve as the CFO through Jun 1, 2014 and will then assist in the transition through Sep 1.
The company will appoint Thad Trent, currently Vice President of Finance, as the new EVP and CFO.
Cypress is a semiconductor company, offering high-performance, mixed signal, programmable solutions. In fourth-quarter 2013, the company reported revenues of $167.8 million, down 11.1% sequentially and 6.9% year over year due to normal seasonal declines in all divisions. However, loss of 4 cents per share was wider than the Zacks Consensus Estimate of a loss of 1 cent.
Though we remain optimistic about the company's advanced technology and momentum in new products, weak macro environment and poor visibility remain a cause of concern.
Currently, Cypress has a Zacks Rank #3 (Hold). Other stocks that are performing well include Dealertrack Technologies, Inc. ( TRAK ), IHS Inc. ( IHS ) and Netflix, Inc. ( NFLX ). All these stocks sport a Zacks Rank #2 (Buy).
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