Ratings on Cypress Semiconductor Corp. reflect ongoing stresses in the data networking market, leading to weaker-than-expected operating earnings over the next several quarters. San Jose, Calif.-based Cypress Semiconductor manufactures specialty memory, timing, and logic semiconductors for the networking, wireless, and computing markets. While the company has strengthened its product portfolio through internal development and acquisitions in the last several quarters, a high percentage of Cypress' revenues are subject to severe pricing pressures and volatile demand. Data networking sector sales in the September 2001 quarter declined 30% sequentially from the June 2001 quarter; sector performance is not expected to improve materially in the near- to intermediate-term. The company experienced strong seasonal demand for its personal computer embedded clocks and interface chips,
