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, 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 and a modest improvement in sales
