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Cypress rises on potential IPO profits

Cypress Semiconductor rose 10 percent Friday on news it will receive half the proceeds from the IPO of QuickLogic Corp., which set offering at 6.667 million common shares with a projected price range of $8-10 per share Thursday.

Cypress shares were up 2 1/4 to 27 1/16, above their previous high of 25 1/2. Shares have been rising despite a brief stumble after the semiconductor maker reported second quarter earnings that missed estimates.

Cypress Semiconductor Corp. (NYSE:CY) of San Jose, Calif., is offering half or exactly 3,333,500 shares of the offering, according to a Securities and Exchange Commission filing. The filing stated that QuickLogic will only receive proceeds from its half of the shares.

Cypress, which has a cross-license agreement with QuickLogic, will hold 3.21 percent, or 562,915 shares, of QuickLogic after the offering.

If there were heavy demand for the shares, then the underwriters, led by BancBoston Robertson Stephens, have an option to buy 1,000,050 more shares.

QuickLogic would have 17.5 million common shares outstanding after the IPO, the filing said.

QuickLogic said it will use the estimated $26.9 million in net proceeds for general corporate purposes, mainly working capital, and to pay an outstanding settlement obligation to Actel Corp. (Nasdaq: ACTL).

Reuters contributed to this report.