Cypress Semiconductor Corporation (CY): Is This Company Finally Back on Track?

Other moves

Also, Cypress’ Memory Products Division (MPD) business has been doing well and increased 7% on a sequential basis in the previous quarter. The division accounts for close to 46% of overall revenue and the company’s recent moves to strengthen this business seem to be bearing fruit. Cypress is focusing on nonvolatile memory to drive revenue, and its innovation in this field looks impressive with award winning products.

In addition, Cypress had recently acquired Ramtron, and this should lead to improvements going forward as well. Moreover, PSoC 4, Cypress’ latest programmable system-on-a-chip, from which the company has high expectations, has gotten off to a good start and has created history by becoming the fastest new product ramp for the company.

It looks like Cypress’ business has already hit bottom, and going forward it might get better as its major businesses are running with good traction. The PSD business is expected to perform the most impressively as seasonal factors and new customer ramps come into play. Management guided for sequential revenue growth of 4%-7%, pegging the mid-point at $204 million, which, if achieved, would translate into slight growth from the year-ago period.

The takeaway

So, it looks as if Cypress is back on track and is close to attaining year-over-year growth in revenue. If the company manages to achieve this feat in the ongoing quarter and guides well again next time, then one can expect it to sustain its newly found momentum.

Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Cypress Semiconductor . The Motley Fool owns shares of Amazon.com.

The article Is This Company Finally Back on Track? originally appeared on Fool.com and is written by Harsh Chauhan.

Harsh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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