Cypress Mid-Quarter Update, First Quarter 2003

3/5/2003 - Cypress Semiconductor Corporation (NYSE: CY) announced that revenue for the 2003 first quarter, ending March 30, 2003, is currently projected to be slightly higher than previous guidance. Cypress, which posted revenue of $174.4 million in the fourth quarter of 2002, had guided to flat revenue in the first quarter based on expectations of a typical seasonal decline. Cypress now expects revenue to grow approximately 2% to $178 million, aided by stronger demand in the wireless and computation segments.

Cypress started the first quarter needing 43% of turns business to meet its guidance for the quarter. Turns have been slightly better than expected two months into the quarter and are expected to continue at a good pace. The company expects to post a book-to-bill ratio for Q103 of better than 1.0.

As previously communicated, Cypress has taken additional cost reduction measures during the first quarter to further lower its pro forma break-even sales from $190 million to $185 million. Benefits from these actions, which included a reduction in force affecting approximately 150 employees, will be fully realized in Q203. This is in addition to the reduction of 380 employees implemented in the fourth quarter of 2002. Cypress still expects gross margin to improve 100-200 basis points to 42-43% in the current quarter and to realize a slight improvement in profitability, aided by earlier cost-reduction measures.

Cypress CFO and VP of Finance Emmanuel Hernandez will discuss Cypress’s financial and strategic outlook during two upcoming conferences. On Wednesday, March 5, at 8:30 a.m. Pacific Standard Time (PST), Hernandez will address the Morgan Stanley Semiconductor and Systems Conference. Hernandez’s presentation can be accessed both live and on-demand through Hernandez will address the Ninth Annual Wachovia Securities Convertible Securities Conference on Friday, March 7, at 8:30 a.m. PST. A webcast of this presentation is accessible through

About Cypress
Cypress Semiconductor Corporation (NYSE: CY) is Connecting from Last Mile to First MileTM with high-performance solutions for personal, network access, enterprise, metro switch, and core communications-system applications. Cypress ConnectsTM using wireless, wireline, digital, and optical transmission standards, including Bluetooth, USB, Fibre Channel, SONET/SDH, Gigabit Ethernet, and DWDM. Leveraging its process and system-level expertise, Cypress makes industry-leading physical layer devices, framers, and network search engines, along with a broad portfolio of high-bandwidth memories, timing technology solutions, and programmable microcontrollers. More information about Cypress is accessible online at

Cypress and the Cypress logo are registered trademarks of Cypress Semiconductor Corporation. “Connecting from Last Mile to First Mile” and “Cypress Connects” are trademarks of Cypress Semiconductor Corporation.

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