Quantcast
CY

Cypress Semiconductor Corporation (CY)

$22.96
*  
0.01
0.04%
Get CY Alerts
*Delayed - data as of Aug. 20, 2019  -  Find a broker to begin trading CY now
Exchange:NASDAQ
Industry: Technology
Community Rating:
 
 
Symbol List Views
FlashQuotes InfoQuotes
Stock Details
Summary Quote Real-Time Quote After Hours Quote Pre-market Quote Historical Quote Option Chain
CHARTS
Basic Chart Interactive Chart
COMPANY NEWS
Company Headlines Press Releases Market Stream
STOCK ANALYSIS
Analyst Research Guru Analysis Stock Report Competitors Stock Consultant Stock Comparison
FUNDAMENTALS
Call Transcripts Annual Report Income Statement Revenue/EPS SEC Filings Short Interest Dividend History
HOLDINGS
Ownership Summary Institutional Holdings Insiders
(SEC Form 4)
 Save Stocks

Cypress Semiconductor Corp. (CY)

Q2 2018 Earnings Call

July 26, 2018 4:30 pm ET

Executives

Colin Born - Cypress Semiconductor Corp.

Hassane El-Khoury - Cypress Semiconductor Corp.

Sam Thad Trent - Cypress Semiconductor Corp.

Michael Balow - Cypress Semiconductor Corp.

Analysts

Adam J. Gonzales - Merrill Lynch, Pierce, Fenner & Smith, Inc.

Anthony Joseph Stoss - Craig-Hallum Capital Group LLC

Rajvindra S. Gill - Needham & Co. LLC

Vijay Raghavan Rakesh - Mizuho Securities USA LLC

Karl Ackerman - Cowen & Co. LLC

Craig M. Hettenbach - Morgan Stanley & Co. LLC

Thomas O'Malley - Barclays Capital, Inc.

William Stein - SunTrust Robinson Humphrey, Inc.

Harsh V. Kumar - Piper Jaffray & Co.

Suji Desilva - ROTH Capital Partners LLC

Presentation

Operator

Good afternoon and welcome to Cypress Semiconductor's Second Quarter 2018 Earnings Release Conference Call. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to Mr. Colin Born, Vice President of Corporate Development & Investor Relations. Sir, you may begin.

Colin Born - Cypress Semiconductor Corp.

Thanks, Michelle. Good afternoon everyone, and thank you for joining our second quarter 2018 earnings conference call. With me today are Hassane El-Khoury, our CEO; Thad Trent, our CFO; and Mike Balow, our Executive Vice President of Sales and Applications. Hassane will make some introductory remarks. Thad will provide a financial overview, and then we will take your questions.

All information discussed in our press release and on this call is based on preliminary unaudited results, and we encourage you to review our 10-Q once it is filed. During the call, management will make statements about our third quarter guidance, our long-term financial model, and other future matters that should be considered forward-looking. Actual results might differ materially from the results anticipated in our forward-looking statements. Please refer to our earnings release, the risk factors in our most recent 10-K filed with the SEC, and our other SEC filings for a more detailed discussion of risks and uncertainties that could cause these differences.

All forward-looking statements are based on the information available to us as of today, and individuals are cautioned not to place undue reliance on our forward-looking statements. In addition, we undertake no obligation to update these statements. Please note the financial measures to be discussed by management today are non-GAAP measures unless they are specifically identified as GAAP measures. Reconciliations of non-GAAP measures to their most comparable GAAP measures and certain limitations of non-GAAP financial measures are included in our earnings press release and our investor presentation deck, both of which are dated today and available on our website at investors.cypress.com.

I will now turn the call over to Hassane.

Hassane El-Khoury - Cypress Semiconductor Corp.

Thank you, Colin, and thanks to everyone for joining us today. We had another solid quarter in Q2, setting multiple revenue records for Cypress for total company, PSoC, MCU and Bluetooth Wi-Fi combo. The Bluetooth Wi-Fi combo revenue now represents 55% of our overall wireless IoT revenues in Q2. The team's executing well on our plan to deliver a roadmap of new connect, compute and store solutions for exciting high growth opportunities in our focus markets at attractive gross margins, a reflection of our strong commitment to couple revenue growth with even higher levels of earnings growth.

I'm pleased to report that we continue to gain share across the board. We outgrew the overall 32-bit MCU market by over 2X in 2017, increasing 33% over 2016. We also have outpaced the wireless IoT market by more than 2X, growing 46% in 2017 over our annualized Q4 run rate exiting 2016. Our wireless IoT business is on track to outgrow by our target of 16% to 18% year-over-year in the second half of 2018.

Let's start with automotive business, which spans all of our technological capabilities to connect, compute and store. Cypress's automotive business is built on a solid foundation of more than 15 years of investment to earn the trust and business of all OEM and Tier 1 customers worldwide who value our reputation for delivering innovative products with outstanding quality and reliability. We hold the number one market share position in our focus categories in automotive, including wireless connectivity, instrument cluster MCUs, NOR memory, and touch interface solutions for in-car infotainment.

Building on our attractive market position in automotive, we continue gaining strength through our investments in innovation technology. In wireless IoT connectivity, Cypress is winning in high growth infotainment application with our 802.11ac combo solution that delivers robust Wi-Fi and Bluetooth connectivity with the industry's only RSDB, or real-time simultaneous dual band technology, in production to enable multiple users to connect and stream unique content to their devices simultaneously.

Cypress's RSDB momentum continues as announced last week with Pioneer, introducing a new infotainment platform with our RSDB combo solution to allow Apple CarPlay and Android Auto to operate concurrently without degradation caused by switching back and forth between bands. In wireless connectivity, the automotive industry is transitioning to USB-C over the next few years. Cypress is leveraging our global leadership in USB-C to give our customers the most compelling solutions for USB connectivity and charging in the car.

For failsafe storage, our leadership position with NOR memory solutions is solidified with reference designs secured across all of the top GPU or SoC-based ADAS platforms, securing our leadership position for good code memory in the increasingly important autonomous driving market. As ADAS complexity increases, so do the NOR and RAM requirements. Automobiles with advanced ADAS systems equipped with multiple externally facing cameras for object and lane detection require 3 to 5X more, or $5 to $10 more in external NOR and RAM content per car. We are expecting that that trait of these advanced ADAS systems to grew from 24% of cars today to 49% by 2023, representing another attractive growth opportunity for Cypress.

Read the rest of this transcript on seekingalpha.com