Cypress Semiconductor (NYSE:CY) reported Q3 earnings of $0.16/share, beating estimates by $0.02. The company also announced that it would terminate its plan to explore the possibility of a sale. The president and CEO of the company said:

"Cypress's third-quarter revenue of $290.2 million was up for the sixth consecutive quarter, reaching its highest point since the fourth quarter of 2000, the Company's all-time revenue record quarter. Net income also increased for the sixth straight quarter. Our gross margins were affected by manufacturing limitations which we expect to improve going forward."

The stock moved down almost 10% in early trading today on the news that the company would no longer be exploring a buyout. Right now, the company is overvalued in terms of its PE/G; however, it does have a sizable cash position that could be used to improve operations or returned to shareholders through dividends or share buybacks. This news also comes after SAC Capital made several sizable purchases in the company, revealed in recent 13G filings with the SEC. If the stock continues to get cheaper while SAC Capital and other insiders continue to hold their shares, CY could become an attractive investment opportunity in the near future.

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