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Cypress ends possible buyout

Posted: 24 Oct 2006     Print Version  Bookmark and Share

Keywords:Cypress Semiconductor  buyout  SunPower  Mark LaPedus 

Cypress Semiconductor Inc.'s board disclosed that it has terminated its process of evaluating a possible buyout of the company. The chipmaker also said it "has determined that continuing with its stand-alone strategy at this time is in the best interests of its stockholders."

The company added that it will continue to explore ways in which to allow its stockholders to fully realise the value of Cypress and its investment in SunPower.

As previously disclosed, Cypress has been reviewing a variety of strategic alternatives involving the company and its investment in SunPower Corp., its solar-cell subsidiary. These alternatives included a possible buyout of the company.

Cypress also announced that revenue for the Q3 2006 was Rs.1,341.01 crore ($290.2 million), up 9.4 per cent from prior-quarter revenue of Rs.1,225.49 crore ($265.2 million) and up 27.8 per cent from Q3 2005 of 1,049.43 ($227.1 million). GAAP net income was at Rs.49.44 crore ($10.7 million), or diluted earnings per share of (6 cents). This compares with the prior quarter's diluted earnings per share of Rs.1.85 (4 cents) and a diluted net loss per share of Rs.1.85 (4 cents) in the year-ago quarter.

"Growth from our SunPower subsidiary remains strong and ahead of plan, and we continue to take steps to focus our business," said T.J. Rodgers, Cypress president and CEO in a statement. "Barring a significant downturn in the fourth quarter, we remain optimistic that we will reach our 2006 goal of approximately Rs.5,083.10 crore ($1.1 billion) in revenue," he added.

SunPower's revenue for Q3 was Rs.301.75 crore ($65.3 million), up 19 per cent from the prior quarter's Rs.252.77 crore ($54.7 million) and up 198 per cent from Q3 2005 revenue of Rs.101.20 crore ($21.9 million). GAAP net income was Rs.44.36 crore ($9.6 million), or Rs.6.01 (13 cents) diluted earnings per share, compared to last quarter's net income of Rs.24.95 crore ($5.4 million) or Rs.3.70 (8 cents) per share and Q3 2005 net loss of Rs.7.39 crore ($1.6 million).

- Mark LaPedus
EE Times

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