Needham & Company Maintains a 'Hold' on Cypress Semi (CY); Continued Downward Pressure in 1H12 Plus Premium Valuation

Needham & Company maintains a 'Hold' on Cypress Semi (NASDAQ: CY).

Analyst, Rajvindra S. Gill, said, "We see risks to 2Q consensus estimates of 11% Q/Q growth due to continued softness in the SRAM (particularly on the wireless side), lack of market share gains in smartphones and ongoing clearing of excess inventory of non-Apple (Nasdaq: AAPL) tablets. We are lowering our 2Q estimates to $195MM/$0.12, which implies 5.4% sequential growth. We believe this reduced sequential growth reflects a truer picture on the ground. We have TrueTouch revenues down 13% year-over-year to $221M, which is comprised of 140MM units at $1.58 ASP. While design wins at Amazon (Nasdaq: AMZN) could offset some of the market share loss on the smartphone side, we believe there is too much risk of a back-end loaded 2H for TrueTouch."

FY12 EPS estimate from $0.80 to $0.70 and FY13 from $1.15 to $0.90.

For an analyst ratings summary and ratings history on Cypress Semi click here. For more ratings news on Cypress Semi click here.

Shares of Cypress Semi closed at $14.12 yesterday.

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