As I said, T.J. fumbles on Psoc execution this Q. If he doesn't execute well on Psoc, it is really difficult for street to evaluate CY on break-up value.
Separately, upon IDTI releasing the earning report, one anaylst try to analyze the comparative value on IDTI. Since IDTI purchased ICST, it becomes more a time and clock semi. company than NSE. So SMTC, MCRL are more the right comp. than NETL. The EV/S value of SMTC, MCRL and IDTI are respectively 4.6, 3.5 and 4. CY's CCD has the comparable gross margin north of 50. If we use the run-rate revenue times by 3.7 EV/S, then the value alone in CCD is $1,332 mils, that's $9.4 per share right there. You can count the rest, memory is cyclical, certainly not worthless imho.
I would argue for a different valuation. First of all, CY doesn't have a CCD business, it has a CMOS image sensor, which is much different that CCD, or charged coupled device.
If you are looking for a valuation comp for its CMOS image sensor (can we call it CIS?), why would you look any farther than Omnivision (OVTI). I am not sure on what estimates you used to calc EV/S, but based on F06 est (Apr) for OVTI, it is trading at a 2.7x valuation.
I would further argue that CY does not deserve that valuation given it does not have a business that is good as OVTI (or Micron for that matter).
Since I don't know how you calced the $1.3B valuation (what revs and level of debt you attributed to this unit), I can't come up with a comparable number, but I would suggest it is a lot lower than what you have stated.