Ratings on Cypress Semiconductor Corp. reflect aggressive marketplace conditions, in part offset by the company's improving operating performance in the recent cyclical recovery and the company's adequate financial flexibility. San Jose, Calif.-based Cypress had about $706 million in debt and capitalized operating leases outstanding at Dec. 31, 2003. The company manufactures specialty memory, timing, and logic semiconductors for the networking, wireless, and computing markets. Cypress has strengthened its product portfolio through internal development and acquisitions and is shifting its focus toward proprietary devices, now about 25% of sales, while de-emphasizing commodity products. Still, prices tend to decline about 30% year-over-year, while demand has been volatile. Revenues trended upward through 2003. Sales in the December 2003 quarter rose 9% sequentially, to
