The rating on Cypress Semiconductor Corp. reflects ongoing stresses in the data networking and computing markets and the company's diminished financial flexibility. San Jose, Calif.-based Cypress Semiconductor manufactures specialty memory, timing, and logic semiconductors for the networking, wireless, and computing markets. Cypress has about $470 million in debt outstanding. Although 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, while rapid technology changes have required high R&D expenses. Financial flexibility has decreased through a combination of acquisitions and negative cash flows. Revenues have improved moderately from the trough set in the September 2001 quarter. Sales for the September 2002 quarter were $205
