San Jose, California-based Cypress Semiconductor Corp will buy frequency timing generator manufacturer IC Works Inc for $127m in shares. Cypress claimed the acquisition will reduce Cypress’s dependence on the highly cyclical memory business. Both companies are in the timer manufacturing business. Cyprus makes precision clocks, whereas ICW creates timers for PCs. ICW made net profits of $2.7m over the first three quarters of its current fiscal year on revenues of $17.6m. With the help of a tax benefit, Cypress moved into profit last October, surprising analysts. The company had been making a loss throughout the year.
