The ratings on Cypress Semiconductor Inc. recognize dramatic declines in sales to the communications sector, where depressed conditions are likely to continue for the next several quarters. Overall sales totaled $185 million in the June 2001 quarter, down 29% from the March quarter, following a 28% December-March decline. The resulting EBITDA margin was 10% in the June quarter. EBITDA margins had been in the 45% range in 2000. Cypress is taking a $140 million-$180 million restructuring charge in the September quarter, hoping to remain profitable for the balance of the year. The restructuring action will eliminate 500 manufacturing positions, and 10% of all other positions, while the company is also deferring capital expenditures. San Jose-Calif.-based Cypress makes specialty memory chips
