Cypress Semiconductor cuts outlook for current quarter

Sept 24 Tue Sep 24, 2013 8:16am EDT

Sept 24 (Reuters) - Cypress Semiconductor Corp cut its third-quarter forecast, citing weakness in mobile handset revenue from Asia, and said it expected its fourth-quarter revenue to be lower than that of the current quarter.

The company, whose touch controllers are used in devices made by South Korea's Samsung Electronics Co, now expects adjusted third-quarter earnings of 10 to 12 cents on revenue of $184 million to $187 million.

It had earlier forecast adjusted earnings of 17 to 18 cents per share on revenue of $201 million to $207 million.

"We are seeing greater than expected weakness in our mobile handset revenues, mainly within Asia, due to a customer push out of certain new handset programs to Q1, as well as order reductions at various end customers in China to balance inventory levels," Chief Financial Officer Brad Buss said.

The company said fourth-quarter revenue was likely to fall 9 to 11 percent sequentially.