Cypress purchase by Infineon opens "great potential" in IoT, CEO says

Murata Manufacturing Co., Ltd. is collaborating with Cypress Semiconductor Corp. and NXP Semiconductors N.V., IoT solutions, wireless
Cypress, being purchased by Infinion for $10 billion, saw revenue hike for 2Q in Wi-Fi/Bluetooth combinations. (Sensors)

Cypress Semiconductor said revenues were $532 million for the second quarter, down nearly 15% from the same period a year ago when revenues hit $624 million. Net losses were $12.7 million.

The company did not hold an earnings conference call or give forward-looking guidance because of a pending purchase of Cypress by Infineon Technologies for about $10 billion, which was first announced in June.

“The combination of our highly-complementary product portfolios opens up great potential in the high-growth areas of automotive and Iot,” Cypress said in a statement issued July 25.

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Revenues for the quarter were up nearly 5% over the first quarter when adjusted for Cypress’ divestiture of its NAND business, completed on April 1.

Cypress CEO Hassane El-Khoury said it was a solid second quarter in which revenue, gross margin and diluted earnings per share all fell within guidance ranges.

“Cypress’ world-class compete and compute solutions continue to gain strong momentum, including in IoT where Cypress’ revenue was up 30% sequentially in Q2, driven by strength in Wi-Fi/Bluetooth combos as well as standalone Bluetooth,” El-Khoury said. The automotive segment also grew.

Infineon reports earnings on Aug. 1.

RELATED: “Trio tackles Wi-Fi IoT challenges”

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