Cypress Semi 2Q earnings fall but beat Street

The chip maker reported net income of $23.4 million, or 14 cents per share, compared with a profit of $363.4 million, or $2.29 per share, in the same quarter a year earlier.

Excluding stock-based compensation, acquisition-related charges and other special charges and credits, earnings were $47.8 million, or 28 cents per share.

Analysts polled by Thomson Financial expected earnings of 21 cents per share.

In last year's second quarter, the company had adjusted earnings of 16 cents a share, excluding a gain on the sale of shares of SunPower Corp., a subsidiary that makes solar panels.

Revenue jumped 59 percent to $592.3 million from $372.8 million. Analysts forecast revenue of $540 million.

"Despite a very challenging economic environment, our semiconductor business grew solidly across all divisions driven by the strength of our programmable solutions," said Cypress President and Chief Executive T.J. Rodgers in a statement.

The company's flagship products are programmable system-on-chip devices and its West Bridge controllers, which enable connections with peripheral devices.

Rodgers expects robust growth in the seasonally strong third quarter as well, but remains "cautious about the macro economic environment in the second half of 2008."

Analysts forecast earnings of 26 cents per share on $561.8 million in revenue in the third quarter.