The ratings on San Jose, Calif.-based Cypress Semiconductor Corp. reflect aggressive marketplace conditions and weakening profitability. Cypress had about $630 million in debt and capitalized operating leases outstanding at March 31, 2005. 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. The company's June 2004 acquisition of FillFactory N.V. bolstered its position in high-end CMOS sensors for professional cameras and medical instruments. Revenues in the March quarter were $200 million, down 5%
