SAN JOSE, Calif., Aug. 10, 2015 /PRNewswire/ -- Cypress Semiconductor Corp. (NASDAQ: CY) today announced that it completed the divestiture of its TrueTouch® mobile touchscreen business to Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading supplier of video displays and interface ICs headquartered in Silicon Valley. The divestiture, which was completed as expected on July 31, 2015, will enable Cypress to continue its focus on embedded automotive and industrial markets. Under the terms of the deal, Cypress will continue to provide TrueTouch capacitive touchscreen solutions to automotive, industrial and home appliance customers. The $100 million cash consideration from the deal will accelerate the capacity for shareholder returns.
"Parade's state-of the-art display solutions and its relationships with Tier 1 consumer and PC manufacturers make it the right choice to continue to serve TrueTouch mobile customers," said Hassane El-Khoury, Executive Vice President of Cypress's Programmable Systems Division and Software. "We will continue to have a significant focus on TrueTouch in automotive and growth segments of the industrial and home appliance markets. Many of these segments, including the automotive human-machine interface segment, have high gross margins and are growing faster than the broader marketplace. Additionally, these markets will provide us with stable, long-term sources of revenue that are less subject to the typical peaks and valleys of consumer markets."
In conjunction with the divestiture, Cypress announced revised non-GAAP expectations for its third-quarter financial results. The company now expects revenue in the range of $470 million to $490 million, operating expenses in the range of $133 million to $135 million, and earnings per share (EPS) in the range of $0.15 to $0.18.
Cypress's TrueTouch capacitive touchscreen solutions deliver robust performance and a natural user experience in a broad range of challenging environments with best-in-class waterproofing, noise immunity, passive stylus and glove-touch capabilities, as well as proximity sensing and face detection. The company's unmatched IP portfolio is backed by hundreds of capacitive touch-sensing patents and includes true single-layer sensor solutions with Cypress's Single-Layer Independent Multi-Touch (SLIM®) sensor for dramatically reduced touchscreen costs.
About Cypress Cypress (NASDAQ: CY) delivers high-performance, high-quality solutions at the heart of today's most advanced embedded systems, from automotive, industrial and networking platforms to highly interactive consumer and mobile devices. With a broad, differentiated product portfolio that includes NOR flash memories, F-RAM™ and SRAM, Traveo™ microcontrollers, the industry's only PSoC® programmable system-on-chip solutions, analog and PMIC Power Management ICs, CapSense® capacitive touch-sensing controllers, and Wireless BLE Bluetooth® Low-Energy and USB connectivity solutions, Cypress is committed to providing its customers worldwide with consistent innovation, best-in-class support and exceptional system value. To learn more, go to www.cypress.com.
Forward-Looking Statements Statements herein that are not historical facts and that refer to Cypress or its subsidiaries' plans and expectations for the future are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. We may use words such as "may," "will," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "continue" or other wording indicating future results or expectations to identify such forward-looking statements that include, but are not limited to, statements related to the expected timing and costs related to the integration of the company with Spansion as a result of our recent merger; our ability to execute on planned synergies related to the merger with Spansion; the semiconductor market; the strength and growth of our proprietary and programmable products; our expectations regarding our revenue growth and earnings leverage; as well as our expectations regarding the demand for our products and how our products are expected to perform. Such statements reflect our current expectations, which are based on information and data available to our management as of the date of this release. Our actual results may differ materially due to a variety of uncertainties and risk factors, including, but not limited to, the state of and future of the global economy, business conditions and growth trends in the semiconductor market, our ability to effectively integrate our company with Spansion in a timely manner, our ability to attract and retain key personnel, whether our products perform as expected, whether the demand for our proprietary and programmable products is fully realized, our ability to manage our business to have strong earnings and significant revenue growth and reduce operating expenses, our ability to effectively implement third party wafer processes, the strength or softness of the markets we serve, our ability to maintain and improve our gross margins and realize our bookings, the seasonality of the markets we serve, the financial performance of our subsidiaries and Emerging Technologies Division, and other risks described in "Risk Factors" in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. We assume no responsibility to update any such forward-looking statements.
Cypress, the Cypress logo, TrueTouch, PSoC, CapSense and SLIM are registered trademarks and F-RAM and Traveo are trademarks of Cypress Semiconductor Corp. All other trademarks are property of their owners.
SOURCE Cypress Semiconductor Corp.