Cypress Semiconductor Corp. (CY:US) advanced the most in more than three years after the chipmaker forecast second-quarter revenue and profit that topped analysts’ estimates (CY:US) and boosted its dividend.
Cypress gained (CY:US) 12 percent to $16 at the close in New York, for the biggest jump since October 2008. Shares of the San Jose, California-based company have declined 5.3 percent this year.
After four consecutive quarters of declines, the chipmaker said it saw an increase in the so-called book-to-bill ratio, the number of units shipped and billed, during the first quarter. The ratio was 1.33, the highest in two years, Cypress said.
“We thus expect Q2 revenue to increase significantly,” the chipmaker said in a statement. “We have not only a growing backlog, but a strong design pipeline, which combined with strong operating leverage from increasing revenue will allow us to drive earnings and cash flow.”
Second-quarter revenue will be in the range of $200 million to $207 million, Cypress said on a conference call today. That compared to a median estimate (CY:US) of $204.1 million from analysts in a Bloomberg survey. Profit will be 17 cents to 20 cents a share. Analysts had projected 16 cents, the average of 14 estimates.
The company boosted its quarterly dividend 22 percent to 11 cents a share. The dividend (CY:US) is payable today to shareholders of record as of March 29.
First-quarter profit excluding certain items was 12 cents a share, compared with analysts’ estimates of 9 cents.
Cypress reported a loss of $12.4 million, or 8 cents a share, compared with a net income $55.4 million, or 28 cents, a year earlier.
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