Today's Review on Cypress Semiconductor and Integrated Device Technology - Semiconductor Stocks Attract Insider Interest

Feb 06, 2013, 08:00 ET from

LONDON, February 6, 2013 /PRNewswire/ --

Semiconductor sector is still struggling with its PC-Mobile conflict. While the trend is good for semiconductor companies specializing in mobile chip technologies, the overall scenario is still gloomy. Constant influx of new technologies is also proving to be a costly affair, especially for the smaller companies. Cypress Semiconductor Corp. (NASDAQ: CY) reported lower revenue and tighter margins, while Integrated Device Technology Inc. (NASDAQ: IDTI) also predicts flat performance for year 2013. StockCall has completed technical analysis covering Cypress Semiconductor and Integrated Device Technology. These free reports are free upon registration at

Integrated Device Technology to Benefit from 4G Deployment

Integrated Device Technology Inc. saw its director Jeffrey Stephen McCreary buying 30,000 shares at the average price of $5.84 apiece. The company also reported profit for its third quarter but failed to meet expectations for its revenue. Integrated Device Technology managed to reverse the losses it had suffered for the third quarter of the previous year to deliver profit of $6.2 million. It met analysts' expectations of 4 cents per share in net income. However, its revenue at $115.1 million fell below consensus estimate of $119.04 million. It also was 4.07 percent lower from the corresponding quarter of the last year. Our free technical research on Integrated Device Technology can be accessed by signing up now at

Integrated Device Technology is diversifying its business geographically and its growth in developing economies is likely to be main catalyst for its stock price increase. The company is also likely to benefit from 4G deployment and growth.

The company expects growth to remain sluggish. Nonetheless, it expects to introduce new products to help its top-line grow. The stock ended 2012 almost flat, but it is expected to pick up during the second half of 2013. Integrated Device Technology is also looking to slash its costs to better manage its margins.

Cypress Semiconductors Expects Lower Revenue in 2013

Cypress Semiconductor Corporation reported a decline in its quarterly revenue. For its fiscal fourth quarter, the company earned $180.3 million in revenue, showing decline of 25.6 percent from the corresponding quarter of the last year. However, it managed to beat its own estimates of revenue in the range of $177 and $179 million. The company is also losing its grip on margins as its gross margin dipped 7.2 percent to 46.4 percent. On the positive side, the company also managed to lower its GAAP net loss from $31.7 million to $24.2 million. Sign up today for the free technical research on Cypress Semiconductor at

Cypress Semiconductor lost about 40 percent of its value last year but the stock offers attractive dividend yield of 4.44 percent. It has been gaining insider interest lately, as its CFO Brad Buss, snapped 10,000 shares of the company at an average price of $9.97 apiece. However, the impact is somewhat negated by the fact that Ken Griffin of Citadel Investments offloaded a large part of its holding in the company. Citadel currently owns 2.2 million shares of the company.

While the company is a front runner in mobile chip segment, it also has to deal with the general weakness in broader chip segment. The company management expects modest results FY2013. Its first quarter revenue is likely to be 5 to 9 percent lower than the previous quarter. It is also banking on its reconstruction as it spun off its Cypress Envirosystems unit. Cypress is likely to pick up during the latter half of the year.

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