This excerpt taken from the CY 10-Q filed May 9, 2008.
IRS Tax Ruling
On April 16, 2008, Cypress received a favorable ruling from the IRS with respect to certain tax issues arising under Section 355 of the Internal Revenue Code in connection with the potential tax-free spin-off to its stockholders of its current ownership of SunPower class B common shares.
No decision to effect a separation of Cypress and SunPower has been made at this time and no assurance can be given that such a decision will be made. In addition, if a separation is effected, no assurance can be given as to the number of shares to be distributed, the costs or effects on Cypress and/or SunPower of effecting the separation, and the impact of the separation on trading prices for both companies common stock, Cypresss employee equity plans and outstanding convertible debt.