Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Cypress Semiconductor Corporation (NASDAQ:CY)

Q4 2010 Earnings Call Transcript

January 27, 2011 11:30 am ET

Executives

T.J. Rodgers – President & CEO

Brad Buss – EVP, Finance and Administration & CFO

Chris Seams – EVP, Sales and Marketing

Norm Taffe EVP, Consumer and Computation Division

Dana Nazarian EVP, Memory and Imaging Division

Analysts

Tim Luke – Barclays Capital:

Adam Benjamin Jefferies & Co

Steve Eliscu UBS

Jeffrey Schreiner – CapStone Investments

Raji Gill – Needham and Company

Sandy Harrison – Signal Hill

Charlie Anderson – Dougherty & Company

Doug Freedman – Gleacher & Company

John Barton – Cowen and Company

Srini Pajjuri – CLSA

Suchi Gustalva – Thinkequity

Chris Danely – JPMorgan Chase & Co.

Glen Yeung Citigroup

John Vinh – Collins Stewart

Tim Luke – Barclays Capital

Operator

Good morning and welcome to Cyprus Semiconductor Fourth Quarter 2010 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. T.J. Rodgers, President and CEO of Cyprus Semiconductor. Thank you, sir. You may begin.

T.J. Rodgers

Good morning. We are here with the executive staff to report the results for the fourth quarter and year-end 2010, and to answer questions, we will go in the usual order with Brad Buss, our CFO, talking about financials, followed by Chris Seams talking about the market. Brad?

Brad Buss

Thanks, T.J. Thanks everybody for attending, especially those of you that are caught up in some of the snow. As usual, just some of the forward-looking stuff, we will be making a lot of forward-looking statements, a lot of estimates, projections. We obviously encourage you to take a look through our 10-K and all the forward book of language in our press release. We expect to have the 10-K filed near the end of February.

Quickly on Q4, you will see a couple of things that went on in this quarter. We divested the image sensor business. It’s ON Semiconductor and I will give you an impact on how that’s going to get on the guidance. And then, we also settled the civil litigation related to the SRAM litigation that was out there.

So, you see an adjustment for $6.5 million in revenue. So, the focus for you should be on the non-GAAP, which is the $226.6 million, and that was in line with the guidance that I gave you. It declined 2% sequentially and increased 17% year-on-year. We had really strong sequential growth in handsets, really due to touchscreens, and we saw declines in most of the other end markets that Chris can touch on. Pretty much what we expected and very consistent with what you have seen other companies reporting on, and I think from our perspective, the vast majority of it continues to be the lead times in inventory rebalancing going on.

If you look at it by division, MID decreased 8% from Q3, predominantly in the SRAM area and again most of it related to the lead time inventory adjustment. DCD was down 12%, same thing with lower com inventory, and lower end of life sales that you obviously always see in that area. And we had slightly better-than-expected sales in West Bridge, which was good to see. CCD was the monster for the quarter. They grew 10% sequentially, and again, don’t forget, they normally go down in Q4. So, that was a really great deal to see, and that was predominantly driven through touchscreen, which offset the normal seasonality in quads and USB.

Just as a side note, CCD has now become the largest reporting division. It was about 45% of our revenue, expect to see that continue all through 2011. They could be about half of the revenue for the company, and that’s up from 39% of the company in 2010 [ph]. So, very big increase there.

PSoC and TrueTouch hit all-time records, and I am sure you will have a lot of questions for Norm on that. So, I will let him tackle that. And again, TrueTouch could become one of our largest product families in Q1. And I think sometimes during 2011, a lot should be bigger than the synching of SRAM business. Designs are very strong all across the board, and we expect to have a better PSoC and TrueTouch greater than seasonal revenues in Q1.

Handsets, you figured us talk about handsets, our revenues there, which again are mostly smartphone-based, which is good, because that’s where the market really is growing, increased 27% sequentially. And I think that handset revenues could be about 25% plus of the company in 2011, and again be one of our largest end markets, which is a big deal because prior to early ’08 with the introduction of West Bridge, we really did not plan handsets.

If you look on the net income basis, we had a GAAP net income of about $0.05 a share. We had a couple of things that impacted that. You can see all that in the recon. The good thing is even our GAAP earnings were up pretty heavily year-on-year. Our non-GAAP net income was $50.6 million, that gave us earnings per diluted share of $0.25, slightly better than the midpoint of my guidance, even though I had a higher share count, and we did enjoy a little bit of tax benefits like you are seeing everybody else from the extension of the R&D tax credit.

The EPS growth for the non-GAAP earnings was 56% year-on-year, and that’s 3x faster than the rate of sales for the same period. So, we are dropping a lot to the bottom line, and I expect that to continue going on. If you look at gross margins, our non-GAAP gross margin was 59%, down slightly from Q3 as we expected and guided, and really just due to product mix and less end of life sales in DCD, the gross margins are in line with guidance, the utilization of our fab decreased we balanced the recon like we talked about, and our core semiconductor gross margins, which if you take out emerging tech out of it, were 60%. So, we are actually pretty proud of where we are driving gross margins and we think we will be fairly stable going forward.

Utilization in our Minnesota fab based on wafer start was about 82%. It was down from around 91% in Q3, and we would expect the utilization to be flat to slightly down. Our Flex Fab strategy is paying off pretty good. We had a record 48% of our wafers coming from our foundries, and that mix will probably continue to increase into 2011 as PSoC is predominantly sourced through our foundries as well as our own fab,

ASPs remain flat at around $1.50, and MID and CCD ASPs actually grew a little bit sequentially. So, that was great to see. For the year, we had $884 million, that increased 32% from ’09. Our non-GAAP earnings were $0.94 and that was an 840% increase from ’09, and obviously the stock did very well. We had a 76% stock return in 2010 and we pretty much smoked every index that was going out there.

OpEx was basically flat the last quarter, it was around $83.2 million, so again that included about $1.3 million of the non-cash deferred comp. So, if you subtract that out, it was basically $82 million smack in the middle of what my guidance, and we are very, very focused on OpEx. I know there are lots of concerns of other companies cranking OpEx. So, we are still very focused, we are investing obviously very heavily in PSoC, Touch and our Emerging Tech, but you would have our commitment, we are going to manage the OpEx very tight all throughout next year.

The OIE was pretty standard. We have the other side, the deferred comp in there, we had about 700 [ph], say in interest income, and the tax rate, the effective tax rate was about 5.3% versus our 9% to 10%, and again it was the refundable tax credits on the R&D that you saw from everyone else. Cash was very strong. We had $434 million. That increased very nicely as we had good cash flow from ops. We still have $24 million of auction rates out there, and we also had one of our YEPs outstanding over the end of the quarter for about 44 million. That matured in cash instead of stock. We had another $3 million gain on that, which was a 68% annualized return, and that added another $47 million DAC in cash. So, as we sit right now today, we have just over $500 million in cash.

Our cash from ops was $76 million, which was basically 34% of our sales, which is very strong, and for the year, we cranked out $270 million in cash from ops, and that was over 200 [ph] increase from ’09. So, on the buyback, I think as you all know, we had a $600 million buyback approved. We said we would deploy it opportunistically over kind of a year to year-and-a-half. We took out just under 2 million shares at an average cost of about $17.40. That costs us $33 million. We have another million shares that went out of the door since the end of the quarter. But basically, we have 548 million still remaining under the buyback.

We also had two of our YEPs outstanding over the same period that we are hoping would have returned another 7.5 million shares in stock, but fortunately or unfortunately, depending on how you look at it, the stock rallied very hard, and we didn’t get the stock. We got north of $7 million in cash, which gave us a very nice bump in our yield, but obviously we didn’t get any more shares out.

Inventory increased about 15% from Q3. The vast majority of that is actually in die bank for PSoC and TrueTouch. As you saw, we had a pretty big book to bill and that stuff is on fire. Our whip in our finished goods inventory actually decreased in Q4, which was actually good. And I think as you know, there is about 6 million in stock-based comp as part of that number, and that we had always had another 6 million in last time inventory built. So, if you strip that out, and what I look at as operating inventory, about 90 million or about 88 days. And I think our inventories would be pretty much flattish going into Q1.

DISD has accounted for 69% of our revenue fulfillment in Q4. It was a new record and was actually the only channel that grew. The other good thing, we actually saw distributor inventories decrease in Q4. They went down by about 2%, and that’s even led a lot of the Asian distributors cranking up their inventories to support the PSoC growth, and that was actually the first decline in DISD inventory we have seen since Q2 ’09, and we obviously saw a corresponding decrease in the deferred revenue.

Weeks of inventory at the DISD dropped from 6.6 in Q3 to 5.8, and that’s kind of near the low end of where we kind of like to see it. You saw big drop in receivables. They went down 42 million and then correspondingly the DSO went down to 47 days. It was all pretty much timing.

In Q3, we had a lot of shipments in the back half and in Q4, it was fairly linear. CapEx was $13.7 million, a little higher than the guidance. You have all seen the 3x capacity expansion, and I am sure we will talk on that later. So, we are starting to lay out some cash, and we will continue to do so throughout the rest of the year. That will probably be, in total about a $70 million capacity expansion and will be really the first one, big one really in probably close to 10 years.

The share count, you saw, pumped up, a big chunk of that was the stock prices moved up. Some of the exercises went up and then we didn’t get the buyback as much shares as we expected. As I said, that the YEPs ended up returning a very strong cash yield instead of stock.

If I look at Q1, you got to take the image sensor sale into consideration. So, I am assuming we are going to have about two months of sales related to the image sensor deal. And just to give you a reference point, that group did about $31 million in revenue for 2010. We will book a pretty nice GAAP-only gain on that sale in Q1, and we are also going to pick up some very nice tax NOLs related to that.

So, as you saw, the book to bill is at 1.35, it was the highest in over 10 years. We normally have a flat to down book to bill in Q3. So, if I look at revenue that we expect to print in the report, it would be in the range of about flat to kind of up to 2%. So, think about 226 to about 231, and again I would only have two months of image sensors. If you stripped out the image sensors from Q4 and Q1, we are basically up about 2% to 5% sequentially on the continuing business, obviously very much better than our normal seasonality, which is ranged from down 46 and it’s a lot higher than the current consensus. GM will be pretty stable at around 59%. That obviously can vary with utilization, the mix etcetera. OpEx bumped up just a smidge to around 84, give or take, a little bit. We have the standard resets in Q1 for FICA. You have lower vacation, etcetera, etcetera. OIE, I don’t see a lot of change, assume about 700,000.

We had a minority interest benefit of about 400. I think the tax rate of around 9, CapEx of 20 to 25. For right now, I would just model the share count being kind of roughly flattish or so. I mean, that’s going to vary with the stock price and any type of buyback. If you put that all together, I would expect non-GAAP earnings around 23 to 24 which is above where the consensus is even with the higher share count.

I will wrap it up there and turn it over to Chris.

Chris Seams

Thanks Brad. In terms of our revenue shipments, Asia-Pacific and Japan now accounted for two-thirds of our sales, Asia-Pacific was 56% and Japan was 11%. North America was 20%, Europe followed at 13%. Units were slightly down quarter-on-quarter, was a slight decrease in revenue. There were 151 million units.

I am getting kind of boring. On pricing, the environment again was very stable. While we didn’t set a quarterly record, I think it is a record fourth quarter, it was again $1.50, flat from the third quarter. From the end market perspective, Brad talked about it. The handset segment for us driven by TrueTouch was very, very strong. It was the only segment to grow for us in the fourth quarter. And we will see a similar trend in the first quarter. Some of the segments that were down will be flat quarter-on-quarter, but overall handsets are going to drive us again.

From a backlog and order pattern perspective, expedites, pushouts, cancellations, nothing noteworthy there. They were all normal levels. Overall, our lead times remained at or below six weeks. I will say except in our TrueTouch products where we are having very steep customer ramps, we are investing in capacity, and frankly to get our customers to align to our expectations and capacity ramps, we have moved our lead times out. We are now quoting 10 to 16 weeks in the TrueTouch family.

The expected results is occurring, as you see, our customers for TrueTouch are booking into the longer horizons. That’s driving the increase in backlog quarter-on-quarter and the rise in the book to bill. Six months backlog was up 26%, it rose to $348 million. And as Brad stated, that drove our book to bill well back above unity to 1.35.

By the division, the book to bills were; MID, 0.8. We talked about the com markets and what’s going on there, that’s striking that book to bill correction. Datacomm was just about unity at 1.05 and CCD where the PSoC and TrueTouch products were at a whopping 1.89.

As a sales, I am proud to say that for the first time in my tenure, we entered the quarter over a 100% booked, 101%. So, I get to sit back and watch the shipped products for the quarter, but I will work on next quarter. And that’s really driven by the dynamic that I talked about in TrueTouch.

Now, let me turn it back to T.J. for a few more highlights on the quarter.

T.J. Rodgers

Some big picture in revenue and profit. The reported revenue was $226.6 million. Of that, $3.9 million was Emerging Technology, so that group is starting to contribute. CCD at $100.9 million became our biggest division surpassing MID of $96.3 million. So, our transition from being a memory company to a systems, programmable systems company is now actually happed at the top line.

Our overall reported comps, it was 23.4%. If you subtract out the investments and emerging technology, our base semiconductor business, $223 million of $227 million, at a pretax profit of 27.6%. On the bottom line, we reported $0.25. Internally, the semiconductor company had $0.29, and we have invested $0.04 in our emerging technology.

Some other highlights, TrueTouch has been the latest thing to drive our growth, the last thing was CapSense capacitive buttons. Now, we are doing the same thing on top of LCD screens and cell phones, that’s where the volume is. Our TrueTouch solution allows you to put on ten fingers. And if you want to type for example, and also rest your palm on something and have all of that be taken care of, you actually need that much. You could ask yourself, you know, my iPhone, I can run with two fingers, why do I need ten fingers, that’s why. We got a bunch of, we have design win records during the quarter. Some of the big ones came from Samsung, their Wave II and Galaxy 5 phones. We had an interesting win at Acer, which is now starting to ship for their Iconia notebook computer.

Think about a notebook where instead of on the top, you have a screen and then on the bottom, you have keys and bottom, where on the top you have normal screen, and then on the bottom, you have touch screen. So, you can hit a button and it turns into a keyboard. You can do out the things with it. So, that’s our idea is to bring, get rid of in fact keyboards and buttons in notebook world, it won an award at the Computer Electronics Show in Las Vegas. We wish them a lot of luck of course.

We are designed in to the KDDI, which is Tokyo-based into their IS03 Android smartphone. Sharp has put us into, actually that’s a Sharp cell phone. In Taiwan, HTC is a big maker, got us into two phones, they call it Surround and Mozart. Those are based on Windows 7. So, one of the things we kind of like is that our design wins are spread around Windows, Android and other operating systems, so that we are not going to be subject to big up or down in case there is a winner or loser in that market.

We are increasing our manufacturing capacity in FA, our technology that makes PSoC and TrueTouch. We are going to triple it actually and I want to make a couple of comments there. First of all, we now are at our model, which is 50% of our capacity from foundries and 50% of our capacity from our internal fab. We want to maintain that model, that is I don’t want to go to 80% outside and 20% inside. Therefore, we will be over the quarters, adding some incremental capacity into Minnesota, and therefore you are going to see some new capital build from time to time during this year.

Probably our biggest announcement is the product we call Solo, internally. It’s a single-chip TrueTouch solution for iPad or tablet-sized products. First iPad came out and it’s been a big splash. Apple as they now do have proprietary chips to run the iPads. So, the rest of the world seems the success of iPads, wanted to get out their products very quickly. We have served that with, in the beginning, as have our competitors with a multi-chip solution. So, the problem is that if you want to give some resolution and you have a big stream like 10-inches, 9.7-inches on an iPad, you have more rows than columns, and therefore your cell phone chip doesn’t have enough IO capability in putting up with to run a bigger screen.

So, the way to do that is use two, or three or four or even five cell phone chips to run chunks of the iPad, the tablet structure, and then those chips go to a master controller, which then takes all the data. So, the good news is we reacted very quickly and you will see important products coming into the market shortly. One is already there, the Kindle NOOK, which is really doing well. You will see products coming quickly with that multi-chip solution. The Holy Grail of course is that the single-chip solution and we have been on new ways to market to bring out the first single-chip solution, and we are first. We have announced it, we have got it and we are announcing that we will have production this quarter.

We shipped our 750 millionth PSoC programmable chip. So, within a couple of quarters, I am going to be able to tell you, we hit the billion mark and we are obviously very proud of that.

CapSense, can’t forget that, that’s a big part of our business. That started driving PSoC to begin with. Epson put our CapSense solution into their new printers. So, they have been for artisan, stylus, photo, etcetera where the high resolution photographic model and go out touch controlled. CapSense solutions for the cordless digital phones and one chip replaces 22 buttons on that phone.

And finally, we are in the Microsoft Arc Touch Mouse, that’s an interesting part. When you think about a mouse, when you put your hand on it, your index finger is on the quick wheel, and that allows you, for example, in PowerPoint, go up and down through slides. That’s now been replaced, it’s a mechanical component. It’s prone to failure and it’s now been replaced by a capacitive slider. So, the mouse now looks like sort of a sheet of glass with where you just touch it, and you don’t have that buttons on it.

On the business front, ON Semiconductor acquired our image sensing group for $31.4 million, and we expect to close that by the end of the second month of the quarter. We originally bought the image sensing group to try to enhance our footprint in cell phones. Didn’t work out. The image sensing group was not good at making high-volume commodity products to be competing especially with Micron Technology.

On the other hand, there were excellent in making super high performance products. So, for example, the chip is so large, only four of them fit on a wafer. Chip with extraordinary resolution, high speed frame rate. They are decently profitable. We are proud of their accomplishments, but they are no longer aligned with what we do. ON has a European division that works on image sensing and it made sense for both them and us to move the process, it’s a win-win deal.

Another big win, this is PowerPSoC, the PSoC that can drive apt use of current. Macy’s have decided to replace 117,000 light bulbs from their stores worldwide, and they will use light-emitting diodes in PowerPSoC, our PowerPSoC is in there.

AgigA Tech is a subsidiary company. They make non-volatile systems. Think about them as being a dynamic RAM, like the RAMs in your personal computer, but when if the power is interrupted, the data is saved in the RAM, and you can recover it. AgigA Tech called the non-volatile system was given the award as the Most Innovative New Product at 23rd CONNECT Awards, and that’s pretty good for a little company.

Finally, we have now got into 20,000 users on our developer community, we started an online environment, and with forums, videos, blogs, the standard thing, and there is a lot of buzz about PSoC right now. We have got 20,000 people show up in their site.

Okay, we are ready to take questions.

Question-and-Answer Session

Operator

(Operator instructions) Our first question comes from Mr. Tim Luke, and please state your company name.

Tim Luke – Barclays Capital

Thank you, Barclays Capital, and well done on your book to bill and your guidance. Brad, could you just clarify what the run rate of this business, which is being sold to ON? I think you said that excluding the sale, the implied guidance would have been up 2% to 5%, but if you could clarify that, that would be great? And you could give us some sense of how you see your margins progressing as you move through the year? Thank you.

Brad Buss

Sure. On the image sensor, like I said, it’s about $31 million for the year. Q4 was about $9 million. I am assuming roughly $4 million for Q1. So, obviously depending on when it closes, that number could wobble around a little bit. And as far as going forward, I am not giving you any projections on what we think it can do for the rest of the year. You can act on the question next week.

Tim Luke – Barclays Capital

But for your broad gross margins that you gave, you are going to be on an outward trajectory here, and I guess that’s part of the question. And have you built in layering the new capacity? When would you begin to see the first of sort of availability of broader capacity?

Brad Buss

Sure. So, let me talk about the gross margin one first. So, I think if you look at our margins where we are around 59% every quarter depending on mix and some utilization if I move kind a little bit. That’s up about 500 basis points from the prior year, right. So, I think the mix we have is fairly stable. Obviously, Norm’s stuff is going to grow faster than the rest of the company, slightly higher than the corporate average, but you guys shouldn’t start thinking we are going to try to run the company at 60%, 62%. We have a lot of consumer, we have a lot of handset, high 50s, maybe 60. And I think the right space for us to be in, we can drop down some very good profitability, and more importantly, continue to grow much faster than the industry. That’s about more important to us and trying to push the gross margins too high.

But I think as we go, the mix will allow us to potentially move up. But don’t forget, we still got the Emerging Tech guys that are well below the corporate average, they are going to continue to grow, and until they kind of mature and go way to school, they are going to put a little bit of pressure on it. So, be happy, we are at 59. Remember we talked of 50 for years and years and barely made it. And our focus will be on growing the topline faster and dropping more of the leverage down the bottom. I think we still have, quite a few points that we can drop through the bottom as the company grows.

Tim Luke – Barclays Capital

If I may, just for Norm or for Brad, it sounded like you have – the touch business will during this year become larger than the memory business. Could you just give us some framework for when you see that transition taking place? And then, Norm, in your release, you talked about Samsung, Acer, HTC. Could you just give us some feel of the breadth and momentum around your customer ramps as you go through the year?

Brad Buss

Yes, let me clarify, Tim. When I said TrueTouch, that’s a family. So, when you say the memory business, I am assuming you are talking SRAM in totality, which is sync and A-sync. Both sync and A-sync are a family like touch as a family. The touch business will be bigger than the synchronous portion of the business, which is the biggest chunk of SRAM, but touch will not be bigger than SRAM by itself yet. So, stay tuned.

Norm Taffe

The statistics is much relevant for the quarter, CCD, the division that contains PSoC which is most of its revenue. It’s a $100.9 million in MID, our memory division, which includes all of our memories and including some non-volatile memory and other things is $96.3 million. So, we crossed over now.

T.J. Rodgers

Big time. And then, –

Brad Buss

And then Tim, to comment on your thing, ours is kind of broad-based momentum. We didn’t mention those customers in the press release. Many of our customers are very sensitive. I think we are being broadly successful in the mobile and outside of the mobile state. And I think one of the reasons we are seeing so much both is now we are seeing the impact of, what I would call, a layering of multiple different customers designed on top of each other. I think that’s driving the demand and we are shipping to a broad set of your handset suppliers. We are really starting to see meaningful contributions now from digital still cameras, large-screen solutions, other applications certainly for personal navigation devices as well.

Chris Seams

Tim, this is Chris. Just to give you maybe a numerical flavor. We are shipping to six of the top 10 handset OEMs, and we will, in the first half of this year, be shipping to eight of the top 10. I will be disappointed if we are not designed in to nine of the top 10 as we exit this year.

Tim Luke – Barclays Capital

Thank you so much, guys. Good luck.

Brad Buss

And the customers we shipped in Q4 have more than doubled from Q4 ’09.

Tim Luke – Barclays Capital

Okay, thank you.

Operator

Thank you. Adam Benjamin, you may ask your question, and please state your company name.

Adam Benjamin – Jefferies & Co

Thanks, Jefferies. Just a couple of follow-ups. So, Brad, on the reference to the handset business being about 25% of revenue in 2011. If you look at roughly your guidance, you are about $1 billion this year in revenue give or take, call it $250 million of revenue. If you, and I think I have this right in terms of what your handset business is. West Bridge is about $40 million business, Optical nav, call it about $10 million business, and CapSense about $30 million, give or take. That kind of backs into a TrueTouch business and handsets alone of about $170 million. I know you have talked about TrueTouch being $160 million to $200 million. $170 million alone for handsets, and later on top of that tablets, PNDs, and digital still cameras as Norm talked about. Are those, is that the right way to look at it, am I in the ballpark? So, just curious if you can back check that math.

Brad Buss

You always correct me. So, it was 25% plus, number one. The components you talked about are fairly representative. You are probably way too high on the CapSense part of it. And again, don’t forget on the Touch, you have got stuff that’s not handset that’s been in the Touch. We are expecting a very robust touch number that’s going to more than double from what we did this year. And I think we are fairly conservative on what we think the tablet content will be. We are very bullish on it. You saw the announcement of the single-chip. We have a very strong design traction. It’s just when do they rollout and what is the sell-through that’s just very hard to figure out right now. If anything, we will be up quite in that area.

Adam Benjamin – Jefferies & Co

All right. Glad you could help there, thanks. And then just a follow-up on the Emerging Tech. It did see a little bit of a tick down in Q4. I was curious if you could comment what happened there, and then obviously small, but if you go into 2011, it’s going to start contributing a bigger way. I know you have talked about some metrics for AgigA Tech etcetera. So, is this, care to giving some color what happened in the quarter, and then how to think about that line time, both from a revenue over the next couple of years as well as margin perspective?

Brad Buss

So, again, you got a conglomeration of companies there at different stages. Sometimes you – and then you wait, and then you go into production. The big picture of Emerging Tech, I think about double year-on-year in 2010 versus 2009, and I expect it to double again in 2011. Design win traction remain very strong, they are all hitting their strides, but I think you will continue to see a lot of focus and revenue growth for those guys in Q1, Q2, Q3, probably being the bigger uptick in revenue based on the design cycles that we see right now.

Norm Taffe

So, the way I look at Emerging Technology, right now, we could run Cypress as a cash machine. We could just focus on the products we have got, we are interested in growing, and therefore we are making venture like steps on some companies. They did $4 million in the quarter. If they double, as Brad said, probably $8 million in the quarter year from now. And $8 million is not going to move our revenue needle a lot. So, what’s going to happen is they subtracted $0.04 from the earnings, we would have earned $29 million without investments in Emerging Tech. So, what’s going to happen next year, they are going to grow and they are going to get rid of the bottom line pressure. So, any per share added doesn’t matter, one group goes from $0.15 to $0.16 or group goes from minus 3 to minus 2, that’s depending to the bottom line.

So, when I am looking for them to do is get off my back financially from a bottom line point of view during the year, and then that will allow us to give us breathing time to let and grow and mature and see the winners and losers are. Again, ventures, let’s hope for one big winner and one that’s good.

Chris Seams

Yes, big picture. Everything is on track, and I am actually been very pleased with the design activity and more importantly how they are managing the drag on us.

Adam Benjamin – Jefferies & Co

All right, all goodness, I will talk to you later.

Operator

Thank you. Steve Eliscum, you may ask your question and please state your company name.

Steve Eliscu UBS

Yes, UBS. First of all, on SRAM, if we look at the inventory rebalancing, are we done, and just statements there, if you can give some comments in terms of just kind of given the sequential growth dynamics, what kind of growth can we expect for MID in 2011, excluding image sensors?

Dana Nazarian

Yes, Steve, this is Dana. The first question you asked was, is the inventory correction done. To the first quarter, I think so. I mean, we look at lead times, we look at the last six months. At the high point, we were in the teens, in the worst case, and now we are back down to 4 to 6 weeks. And people are not booking in a longer horizon. So, I think that’s mostly behind us right now. In terms of growth, I look at things in terms of share of market, and we continue to grow several points per year. We expect to do that again this year. That’s our prediction in terms of what does that mean for revenue growth. That all depends on how big the market is and that’s controlled by larger economic factors than I can predict. So, we expect continued share growth along the same trajectory as we have the last few years.

Steve Eliscu UBS

Okay, that’s helpful. Switching to Norm, on TrueTouch, if we break TrueTouch in three buckets, smart phones, tablets and then other, you mentioned number of applications. How should we – is it for the year or exiting the year, how should we think of in terms of revenue split, how TrueTouch is going to fall out? Is there going to be 50% smart phones, is there going to be 80%, and you could probably give a sense of how you think that’s going to break out, that would be great.

Brad Buss

Okay, Steve, sure. Right now, exiting the year, it is 80% really the smartphone segment and volume, but we are seeing, I would say even before that maybe with 90. So, we see some legitimate move up particularly with the large screen space or either ereader or tablet kind of space is now become actually meaningful revenue, and I think that’s way to grow even faster, but handsets still will dominate. I think long term, things like digital still cameras, navigation device will grow the share, but I still would expect well north of 50% going out of next year to the handsets, the only wild card it’s helping to tab its segment become for it.

Steve Eliscu UBS

Great. And just as a follow-up question, in terms of just given the huge book to bill that you have, how are you managing your manufacturing mixture of it? You don’t fall behind, book to bill sounds great, but at the same time, it also potentially suggests that there aren’t some supply constraints. So, if you can elaborate on that.

Brad Buss

Yes, now that’s a good question, and I am glad you asked that. So, part of the book to bill is related to frankly our customers being very disciplined, and booking out actually well in excess of our lead time. Honestly, I think they got scooped perhaps by some competitors a year ago, and so while they put a lot of bookings on it, they have laid that backlog in over the next really two quarters for, and we are right now delivering very well to their needs, and we have put in as we have talked earlier additional capacity in place. It is fortunate that we already were fully qualified in two places, Shanghai adjacency and Minnesota and we have been building up FA capacity because of all of our PSoC products are moved on to that technology.

So, fortunately we are well aligned with that, and I think most of that book to bill is really a reflection of customers giving us a lot of demand and a lot of visibility well into Q2 already, because they are very important product ramps for them, and they also recognize that these are critical components for their systems. So, you are right. It is ramping very fast and therefore lead times mentioned early by Chris, are they longer than our typical lead times, but we have been able to manage the customer ordering such that we feel very comfortable we are going to be able to match supply to demand.

T.J. Rodgers

If you look back in 2000, we weren’t very disciplined. Lead times went way out, everybody stated double and triple ordering, we took all their orders. So, it’s like (inaudible) where our book to bill is 7, and they ordered four times more products than they needed. And then, when it came time to ship, and we sorted it out more on a stay-live basis to keep the factories alive in the places you wanted to align with.

Our operations group is much better now, and we can – to answer your question specifically about our book to bill, we have the manufacturing capacity to support that is we can schedule wafers, support the bookings we have taken. I haven’t said that we are right at the edge, and if we get more upside, and if somebody comes in who wants a lot more product, then we are going to have to do some extraordinary things. And it’s going to take time and it’s going to cost money. So, we are at the edge of – we have only taken what we can ship, but we are right at the edge of our capacity now.

We are obviously adding capacity very rapidly. That will phase in over the next two or three quarters.

Chris Seams

And again, the other big thing is our foundry partners have about 60% to 70% of the wafer starts in that area. So, the Flex Fab model that we have moved to over the last four years, I think it’s been the right decision, and it’s paying off from a flexibility standpoint, too.

Brad Buss

One final note on the flexibility is, is don’t forget our SRAMs are also using a Flex Fab model. So, it gives us an extra degree of freedom inside the company to move the side, inside or outside, not just in TrueTouch, but also with SRAMs, because we use the same capacity in Minnesota for both.

Chris Seams

And my comments related to PSoC and the TrueTouch technologies, which are on the process we call FA, which is non-volatile SONOS Technology or eighth generation technology. Other products PSoC won for example, RAMs, you can still order them and we can still deliver them. That’s one of the reasons you have heard earlier that our capacity utilization at fab was only 82%, and my first thought was, why isn’t 100%, and the answer is that, that some of our older commodity products, the market in general is doing a classic Q4 slowdown right now, and those older products, the older technology actually full capacity right now, hence 82% utilization. So, one of the ways we are going to improve our capacity is we are going to do a mix shift in fab 4, the capital I talked about earlier where we are going to get all of our capacity in fab 4 up to the state-of-the-art for that fab as opposed to having a mix that we could start some old stuff and some new stuff.

Steve Eliscu UBS

Thank you very much for that answer.

Operator

Thank you. Jeff Schreiner, you may ask your questions. Please state your company name.

Jeffrey Schreiner CapStone Investments

Yes, thanks, CapStone Investments. I was wondering, in terms of the SRAM market data, you talked about a lot of factors outside your control for the overall market, but are you really expecting any significant change in the size in the SRAM market as we enter calendar year ’11?

Brad Buss

No, I think it’s going to be pretty stable. I think it was a pretty big increase last year in the overall semi market. But I think it’s going to be a pretty flat year-on-year.

Jeffrey Schreiner CapStone Investments

Okay. And then I was wondering if we could talk maybe, talk about where the design wins are right now for PSoC 5 and how that’s been received out there? We know that, that had a lot longer design cycles than maybe some of your consumer-based products. And just wondered kind of how that’s progressing as we enter calendar year ’11?

T.J. Rodgers

Yes, let me answer the questions for both PSoC 3 and 5, are generations beyond PSoC 1, and let me give that question to Norm.

Norm Taffe

Yes, Jeff, PSoC 3 and 5 kind of both similar architecture generation. They are being designed in I think very broadly, we are very happy with the interest level, and we actually just at the end of last year introduced what’s called PSoC Creator to full production that the software tool supports them. And that has broadened the interest of those products. As I think I have mentioned before on the call, it is definitely a different market segment space, we have had particular interest in really three areas, the medical instrumentation area which is one of the target, because PSoC has outstanding low-power analog along with digital capability.

And so, we have very significant design wins in the medical instrumentation space. Another area is really just the communications and kind of big iron almost system infrastructure for something called system management control. That we have multiple design wins at large server and communications companies that is driving part of the design activity. And third segment, which is driving some of the early wins is something called made for iPod or iPad interfaces. So, like target segment where we are actually able to integrate due to our programmable analog inside. That proprietary interface into the device and that’s driving a lot of from even some early consumer opportunities which isn’t the general target market for PSoC 3 and 5, but it’s going to give us some shorter-term revenue uplift.

So, it is going to start this year, 2011 will have its first meaningful revenue. And from a design, it’s going to give you a flavor versus PSoC 1. It already has a funnel, a sales funnel three times the level we achieved in our PSoC line. It’s very early in that funnel, but it is clearly addressing a much broader market than our entire PSoC 1 family did, which is what we expected.

Brad Buss

And obviously much higher ASP, longer design cycle, but we expect to have a longer revenue production cycle as well.

Chris Seams

Hi Jeff, this is Chris. One interesting statistic that we covered through all of our Ops review so far this last week. PSoC 3 and 5 actually had more activity on our Website than PSoC 1 now.

Jeffrey Schreiner CapStone Investments

Thank you. One final question for me. We talked about TrueTouch the success the company has had, obviously it’s out there, it’s being seen. We talked about tablets and handsets, but I was wondering maybe what you think about any notebook, additional notebook penetration during calendar year ’11, maybe in the Touch pad beyond what you did with the Acer design that was announced in the quarter?

Dana Nazarian

We do see additional interest in notebook space. We don’t see it nearly as I would say superheated as the tablet space, which is really both completely on a touch model. In the notebook space, here it’s kind of a mix where the vendors are offering solutions, let’s say, 8 percentage of the portfolio they would offer, maybe kind of high-end percentage, while in the tablet space, it is essentially, that is the interface, it’s a touch interface. So, certainly it’s not superheated there, but the fact that we won the Acer which we consider to be, I would say one of the most difficult technical solutions, has placed in a very good position and a lot of credibility with the notebook suppliers. If we can do it on both screens, we can certainly do it on one. And so, we do have quite a few opportunities there, but it’s not as intense as a tablet area.

Chris Seams

And Jeff, this is Chris, that same technology that we have brought to the touchscreen market, the ten fingers, multi-touch is what we call it, we are also bringing to the track pad market, I think you asked that part of the question. And you will see end products from our customers, few of the big PC OEMs we released this year as well.

Jeffrey Schreiner CapStone Investments

All right, gentlemen, thank you very much.

Operator

Thank you. Raji Gill, you may ask your question, and please state your company name.

Raji Gill – Needham and Company

Needham and Company, thanks. And congratulations on the results. Question on the new single-chip product you announced for tablets, which I think is very interesting. Maybe can you talk a little bit about the pricing for that particular component, or what that would be relative to a multi-chip solution? Your nearest competitor has talked about a $10 to $15 for tablets, which implies three to four controller chips. So, I just wanted to get your thoughts on the pricing impact, which you see when the market maybe move to a single chip?

Brad Buss

For tablets, okay. Well, I don’t want to discuss really specific pricing per se, but certainly from a kind of a higher level the way we look at it, certainly one of the benefits single chip will be a path to lowest cost solution for our buyers. At the same time, they see quite a bit more value in single chip beyond costs, because it makes thinner devices and also saves space, which is critical even in the tablet space.

So, we do add value, and we are very – we want to make sure we get benefits for that value, real price to that value. All of that being said, we do expect we will move downward, we think that will increase demand, but we expect it to be south, certainly of the $10 to $15 range, but we don’t expect it to be in the same kind of space you think of handset ASPs.

Chris Seams

This is Chris; let me add just one more note on the other side of the aisle, if you will. One thing, you have to remember is most of the volume tablets today are the 7-inch size. Most of those actually have implemented using a single-chip solution. That single-chip solution is not capable as T.J. talked about of creating the same performance as what we released in single chip just announced today, or the iPad like or maybe even iPad superior like experience. So, I actually think for single chip today versus single chip going forward, we will see price rise.

Raji Gill – Needham and Company

Okay. Very good. And are there any performance trade-offs or what are the performance metrics versus your new single chip for large touchscreens versus a multi-chip, because as you talked about, there are more rows than columns that the center has to read. So, this is going to be very high-powered type of chip?

Brad Buss

No, I mean, certainly one of the performance benefits, when you go to a single chip, as you lower the power of the system, you don’t have multiple IC powered at the same time reading the screen. So, that’s a benefit actually of this. And really, it’s a fairly simple technical thing. The more sensor you have, the better accuracy right on the screen. It’s really just rows and columns. To give you a flavor of how much bigger this is, our flagship Gen 3 [ph] product is driving our revenue in the handset space. It is the leader and that it supports up to 256 nodes. But we just introduced something with 884 nodes, so clearly more than three times the number of nodes that can interface on the screen. And that just gives you a lot more accuracy.

And relative to multi-chip, what you are really doing with multi-chip is you are creating those nodes by taking several devices and adding them together. So, there is no loss of capability by doing it in a single chip. There is a benefit certainly in power. They are actually, also a secondary benefit, and that it can be faster, because you don't have the communication between the devices. But that’s kind of a second order impact.

Raji Gill – Needham and Company

Thanks for that. And just last question on TrueTouch. Brad talked about it, more than doubling all in, I think we had, initially thought about TrueTouch doing about 100 million or maybe a little bit less than that for 2010. So, I am looking at maybe a 250 [ph] type of number. And if you kind of take what your ASPs are, which you had historically talked about $1.70, you are looking about 148 million [ph] units or so in the market, which puts you into a kind of a leadership position in terms of unit share. Just wondering if that type of math centers in line with your thinking of the market.

Brad Buss

I think on the unit one, I think, comment on that.

Dana Nazarian

I think your math is probably reasonable. Again, it’s early and we don’t really like to comment to that level, but I don’t think you are probably that far off.

Brad Buss

I think unit-wise, it’s probably neck and neck with us and the other silicon provider in that area. And I think the big thing really like we said is going to be really the tablet end of it, where we are very bullish on the area, but in other software that needs to roll out, those devices that need to get up, what’s the uptake, it’s just very hard to tell right now, very hard to tell. I mean, there is many devices and everyone is going to be Number 1, but we are all trying to figure that out as well. So, I think more than double is a very good number. We came in close through the higher end, than I think what most of you expected and I would be ecstatic if we more than double – there’s upside in there hopefully. We are subject to the rollout of these things. When did they roll out, did they all roll out on time, the same thing with cell phones. It’s going to be a big year.

Raji Gill – Needham and Company

Very good, congrats again on the new product. Thank you.

Operator

Thank you. Sandy Harrison, you may ask your question, and please state your company name.

Sandy Harrison – Signal Hill

Yes, thank you, Signal Hill. Real quickly on the TrueTouch, we have talked a lot of the capabilities as far as multiple fingers and things like that. What about security, are you seeing more and more demands for security like some sort of fingerprint sensing or things like that, that is going to be built into these things. There is more and more incorporated into the designs.

Brad Buss

Sandy, relative to security, we have not seen a pull for that. The things that for the most part they are focused on in the – they are huge pull, continuing adding features. I haven’t seen that, but certainly things related to different capabilities in terms of the way the Touch operates. Things featured like stylus or hover, those are very demanding and very quarter, there is a new push for additional capabilities.

Honestly, we haven’t seen too much of people trying to integrate the footprint. So, that one, we haven’t seen.

Sandy Harrison – Signal Hill

Okay. And then T.J., you have gotten rid of the image sensors now or in the midst of giving image sensors, so in some ways that clears the deck for another project. As you look into the future, some ideas of where Cyprus is calling in some of the success you have had in these markets with your TrueTouch on others. Do you see any other science projects kind of coming around or some other sectors that you would be looking to invest in, now that maybe you have cleared the deck for some?

T.J. Rodgers

Yes, we are going to another project. Interestingly enough, we acquired something like 23 companies in 1999 through 2001. We don’t have a spec on how to acquire a company, how to integrate your IP system that’s book. So, we have a machine that’s pretty good at driving a company and bringing it in. On the other hand, there’s batting average and every company you acquire with the expectation of coming and wage revenue and profit, and the batting average is somewhat like startups, some of them work and some of them don’t. In the case of acquiring companies, it’s a culture primarily. We are regimented company, say it that way and some of the companies we would acquire are a Lucy-Goosie and some of those people don’t like coming in and running the ship more effectively. So, we become – this maybe a little bit extreme, we have become acquisition-phobic. Having said that, I probably look at one acquisition possibility every other week 52 weeks a year, and we now have the capability to do numbers on them, we have an MBA group in India that is very high quality group that’s going to analyze very well for us. And we are looking at stuff all the time.

I have two or three companies that are far enough out that if I said anything would have a 50% chance of being wrong. So, I won’t mention anything, but yes, we are looking at two or three things right now that look interesting, and yes, you are right. We have room for another project.

Sandy Harrison – Signal Hill

Got it, thanks. And I think it’s been asked a couple of different ways before, but I think that if you look at your really strong book to bill and CCD, and then you highlighted the fact that lot of that backlog has been laid in for the out quarter or for the futures and there was more associated with the concern of lead times. If you had to hazard a guess, what would you think your book to bill would be for the business that wasn’t being laid in because of increasing lead times? Is it one-two, one-one, what would be your shot there?

Chris Seams

This is Chris. My guess, and I don’t have the actual number. We will be north of 1 but probably less than 1.2.

Sandy Harrison – Signal Hill

Okay. Thanks for taking my questions.

Brad Buss

Yes, and again, don’t forget like I said at the beginning, Sandy, that at this time in a regular quarter without the touchscreen, you know, you are normally flat to down on your book to bill ratio. And again, don’t forget, these are six months, so they can wobble around a lot.

Sandy Harrison – Signal Hill

Sure. I was just trying to get just a little bit better view. That’s all.

Brad Buss

Okay.

T.J. Rodgers

I would say book to bill is more on the one side of that 1 to 1.2-inch [ph]. And I am not guessing really, but I don’t have the data, the graph in front of me. If our harbingers of the broad market are SRAMs, asynchronous SRAMs in particular and USB chips, and although those businesses have worn down dramatically, they were seasonally down in the fourth quarter, and we expect them to be flattish in the first quarter. So, the non-cell phone, non-TrueTouch, non-PSoC business is working about normal right now.

Chris Seams

It’s very consistent of what you are seeing from everybody else. Lead times is seasonal, there is no big gotcha one way or the other.

Sandy Harrison – Signal Hill

Okay. Thanks.

Chris Seams

Thanks for touching base.

Operator

Thank you. Charlie Anderson, you may ask your question and please state your company name.

Charlie Anderson – Dougherty & Company

Yes, Dougherty & Company, thanks for taking my questions. I have kind of the opposite question of Sandy. I wonder, T.J., if you look at your business now, kind of what’s not proprietary, what’s not programmable, kind of what’s not core, what percent of your revenue is left sort of in that bucket, and do you pull the trigger on another divestiture at some point here do you think?

T.J. Rodgers

We believe we have cleaned the place up, we have got everything together strategic alignment right now with the image sensors. Again, image sensors would have been aligned if we could have made at the market we intended, but we have changed the company and we didn’t proceed with that. Right now, we are happy with the divisions we have got. So, I don’t – we are not talking about blowing anything up.

Charlie Anderson – Dougherty & Company

Okay, good. And then a question for Norm, on the single-chip. I wonder, do you lose any latency with the single-chip versus the multi-chip, that’s one question? And the other question I wonder is it feels like a real good differentiator. I wonder if you could just kind of give us some commentary around, you are giving commentary around number of smartphone OEMs you are going to do. Can you give us any commentary around the number of the key tablet makers you think you will do, how many design wins, how many different OEMs, that will be helpful? Thanks.

Norm Taffe

I will answer the first part and then let Chris talk on the second. Relative to the latency, you should know, there really isn’t any drop-off or change in latency relative to the multi-chip or the thing, because if we do multi-chip, you are actually measuring different parts of the screen, each piece and add it all together. Now, we can just, we have enough bios to do the whole screen in parallel.

Chris Seams

Hi Charlie, Chris here. In the fourth quarter, we actually shipped well over 1 million units into the greater than 7-inch segment for touch to six different customers. I think we will add two or three more that we are shipping to in the first half and probably double that number over the course of 2011.

Norm Taffe

And you will see Tier 1 mixed up in there.

Charlie Anderson – Dougherty & Company

Perfect. Thanks so much.

Chris Seams

Wish him all success.

T.J. Rodgers

Another comment, there’s another segment that is taking us to the needle. Digital cell cameras in Japan are going touch. So, in this case, it’s a touch controller. All of you know who got a camera, the controls are pretty elaborate and complicated. So, the digital cell camera world, that’s a couple of 100 million units for the year. So, it’s not cell phones, but it’s certainly not trivial. It’s moving towards touch control and we believe we have market share in that.

We have got a bunch of design wins. Some of them are already in the market, and the rest of them are on their way shortly.

Operator

And our next question comes from Doug Freedman. You may ask your question and please state your company name.

Doug Freedman – Gleacher & Company

Gleacher & Company, thanks guys for taking my questions. If I could try to tie you down on a few numbers here, you are spending 70 million this year for CapEx, how much capacity do you expect that to add?

Brad Buss

We are going to triple that from 10 for S8.

Doug Freedman – Gleacher & Company

I guess I am looking for a very – you presently said you are shipping almost at capacity for Q1 was my read from, T.J., your answer. How much incremental capacity?

T.J. Rodgers

What I said was book to bill was 1.46 and this time around, we are not taking orders, we can’t support. So, our capacity if you will has build future to build out 1.46 as well. So, we are ramping our capacity very rapidly, and we are staying with that book to bill of 1.46.

If somebody comes in, so it’s congratulations. I am going to take your book to bill at 1.8; our answer is going to be we will have to talk about that.

Chris Seams

What are you trying to get at, Doug?

Doug Freedman – Gleacher & Company

I was looking for this capacity that we are adding can support 250, 270 exiting the year, 300, whatever the number is, how much revenue can this capacity addition support exiting the year?

Chris Seams

It will more than support what we need, plus a very nice buffer, plus growth that we expect to have going into ’12, but don’t forget, we got to be laying in capacity, not laying for this year, but to start cranking up the way for ’12. I mean, we are not here to give a position on ’12, but we see ’12 being a very another big strong year, and we want to have the capacity going into that as well. And we could add further capacity later in this year, and then whether we do it or foundry do it, where some combo like this current one is, we will decide.

So, to give a non-equivocating answer to that, our capacity at the end of the year will support the $300 million a quarter, rough-cut. I don’t have that number directly in front of me, but the capacity meetings, the last one was last night at 6 O’clock and we are going to get our capacity ahead of our demand. That’s imperative for us because these two have proprietary and simply can’t not have chips when the customers need it.

And Doug, when you talk again on the 70, don’t forget, that’s just our investment where like 40% to 50% of this tripling right, the balance is really – the vast majority is going to come from the foundry guys, because we are doing it all ourselves, we would be talking a monster number. We would be having a hard-hat party out at Minnesota.

Doug Freedman – Gleacher & Company

All right. Terrific. Thanks for that color, that’s what I am looking for. At your Analyst Day, you guys mentioned the plans to take the memory group down to the 28-nanometer node. How do we think about the spending on that line? Is that all going to be sort of OpEx – CapEx spending or you are going to see some impact on the R&D line there to make that transition?

Brad Buss

Nothing extraordinary. We are partnered with UMC. We have a very tight partnership with them. They are developing the technology and we are helping them with our expertise, and therefore, we won’t necessarily have to outlay a huge expenditure, of this proportional expenditure for new technology platform.

Chris Seams

Yes, his operating income model will not change due to that note.

Doug Freedman – Gleacher & Company

All right. And then if I could just focus a little bit in on the gross margins. Your guidance really holding things very close to a pretty tight range. We did see some gross margin degradation, most segments that saw revenues down. Is there any sort of, how do I think about mix or pricing driving margins going forward? Most notably, I guess, in the memory sector, and what the margins on the imaging piece that goes away. How do I think about those mix pieces moving around?

Brad Buss

Let me just give you a comment on the current quarter, you are right. Between revenue and then what we are doing with utilization, you saw some of that especially in MID. Pricing-wise has been pretty good, and Dana, he can talk on that. And I think going forward, right, like I said, it’s going to be really a mix issue. We don’t see a lot of pricing variation really in any of the group. We will get some leverage of the foundry. We will get a little more CapEx or depreciation, I should say, in the second part of the year for some of the expansion, but nothing that I think is going to throw the margin model out of whack. Utilization will be the big factor, and that’s pretty standard stuff and Dana, I don’t know if you want to comment.

I mean, on the image sensors, it’s been consistent around the average for the division. So, again no big impact one way or the other.

Dana Nazarian

The margins in the various divisions are CCDs 61.5% for last quarter; Datacomm, 68.9%; and MID, 55.5%. So, as you switch business back and forth, if we have a memory run, then the 55 component will get bigger. But the numbers are pretty close and plus or minus a couple of points is pretty much the range right now. There’s a tightness of supply in the market right now. So, we don’t expect to see a lot of price degradation going forward.

Our ASPs are held in between $1.48 and $1.50 for the last four consecutive quarters. So, right now, unless we screw something up, lose some wafers somewhere or something like that, have a recall for some reason, sort of 59%, 60% is stable.

Doug Freedman – Gleacher & Company

All right. Yes, I've got to give you guys credit. I mean, the numbers you've put up have been spectacular. My last question before I go away, the emerging tech group, you have got a whole bunch of rabbits stored in that group. Do you want to give us some color on which one might jump out and start running away with some revenue growth?

Chris Seams

I think all of them are growing, are going to grow nicely. It’s not like it’s one of them that’s driving that 100% growth. I think if you want a little more granularity like you do, I would say, some of our track pads and our finger nab stuff would be the areas that you will see higher and quicker revenue growth. And then we brought our other little stealth one that again, will not be generating any revenue this year, but it will be more of a 2012 event, and we hope to talk further on that in Q2 as they complete a couple of technical milestones.

T.J. Rodgers

I would second the track pads and the finger nabs. Finger nab is a PSoC chip where we have added on a very specialized image sensor. And to the finger nab, our own technology there that’s very different. We think it has advantages, we have got design wins. And then in track pad, that market has been stable/boring. And when you look at what’s happened to sensors on cell phones, all the touches and gestures and stuff like that, there is absolutely no reason with that technology which we have can’t be mapped back on to a track pad to advance track pads taking into beyond the year 2000.

So, we have got some products there that’s a little bit farther back, but that could be reasonable revenue by the end of the year.

Doug Freedman – Gleacher & Company

Great. Thanks so much.

Operator

Thank you. John Barton, you may ask your question, and please state your company name.

John Barton – Cowen and Company

Thank you, it’s Cowen. Both Norm and T.J., you've talked about Touch and tablets in kind of many different ways, the benefits of having the power to support 10 fingers, the single-chip that you believe you're first to market with. Kind of a two-fold question. First off, could you highlight what you think the schedule is for competitors who have single-chip solutions, and then if you look at the potential negative side of the equation, is there anything unique within tablets that is more of a threat than what you saw in cell phones, be it the possibility to integrate into other chips that have larger horsepower because of the tablet or anything along those lines.

Norm Taffe

Hi John. Yes, I guess, relative to competitive position, we kind of only know what we hear when we are at the customer base. We keep first ones out of that, but that’s what our customers have told us. I think our competitors are working very closely in a similar way. Really one specific competitor, I would say, we don’t see as broader competitive attacking this space as we see in the small screen space, we think it’s a more narrow field at least for now. Your second question about integration, maybe that’s possibly, it’s certainly not what we are hearing the customers right now. Again, this product amounted often on a Flex scale connected directly to the actual screen. That’s not where you put your main componentry. Maybe wrong term that could be, but honestly, these products are very I/O intensive, and if I'm making a big main screen device I want to devote, add 80 to 100 I/Os to my base band chip and I think very unlikely. So, I don’t really see that as a theat.

I will tell you it’s a newer market, so there could be threats that come. But if anybody wants to integrate, it's a billion unit handset market, and they are not integrating. So, I don’t see a strong trend in the tablet space.

T.J. Rodgers

And furthermore, if you look at the inside of an iPad, it’s the iPhone with a big screen, really. And that’s the model. So, how the system is partitioned in cell phones, will carry across, we think to the tablet.

John Barton – Cowen and Company

Staying on TrueTouch, you've highlighted two things. First off, your customers have booked out for basically a full two quarters, your lead times have extended to 10 to 16 weeks. I'm looking at that data and saying, okay, you're putting the signal out to the customers, they've done the right thing by putting the bookings in place. Could you just touch on what your performance has been to customer request date? I assume T.J. for some of your comments, the importance of supporting the proprietary devices, that you do not currently have an issue there, but if you could confirm that, and then obviously, the interest, what that might mean from a design-in perspective in next generations?

T.J. Rodgers

For what the percentage always be right now.

Brad Buss

Under 2%.

T.J. Rodgers

But right now, again, we have been working at making our operations group better and we are pretty proud of it right now. Right now, we're shipping 98% on time to original schedule, so if we promise it, we are going to ship it. We want people to count on us. So, again, the orders are going dramatically and we are scrambling to stay up within and we are doing it without trashing our metrics.

Brad Buss

And I wanted to make sure I don’t want to get the wrong message out there. Yes, we have had tremendous bookings laid in the backlog, but I can tell you that, for example, our Gen-3 flagship product will not only become highest volume product in the company this quarter, but we will actually ship twice as much next quarter this quarter. So, we have actually have already put this stuff, we actually prepared for this quite well. And so, I don’t want us around saying another thing the operations team has done a very good job is reserving capacity, making sure we don’t ship every last unit, but we actually have enough to respond to changes, and we have been supporting the customers during these ramps I think very, very well.

T.J. Rodgers

And John, I think as you all know, there is a lot of new customers and a lot of new phones we are going into and you generally get 4 to 6 months for all the new stuff, so that you can add yourself into that ramp. So, that’s a good portion of it as well. I mean, as Chris said, we are shipping in monster volume to new guys that we didn’t ship into next year or last year at all.

John Barton – Cowen and Company

Got it. And maybe Chris, if I could go back to a comment you made in your opening statement, you highlighted a fact that the number was I think you're 101% booked for the quarter and it makes you real happy as a sales guy, because you get to sit back and watch the factory execute. I'm curious, no turns for the quarter whatsoever? I get it in TrueTouch with respect to things that have been booked out, but no potential for any upside when it comes to the Com area or the others?

Chris Seams

Right now, John, we are sticking by the guidance. By product family, by division, yes, there are some terms we got to go get, but it’s lot smaller than it normally is.

T.J. Rodgers

You have always got the wildcard of DISD sell-through anywhere, but from what we can tell with them, things look pretty good and we are better than seasonal in a lot of areas. A lot of the matured stuff is seasonal and it’s down. So, I don’t want you guys thinking everything is on fire, beyond just the touch stuff.

John Barton – Cowen and Company

Last question if I could, Brad. You've talked about the revenue impact of the image sensor sale; you have talked about the gross margins. On the OpEx line, what was dialed into your guidance with respect to getting rid of some OpEx in Q1, and probably more importantly, what goes away incrementally in Q2?

Brad Buss

Yes, I mean, there is – the OpEx usually resets in Q1. We probably would have edged up a smidge higher, but at the same time, no one is consuming quite a bit of people, we are adding a lot of support and sales and marketing applications and software to add it. So, pretty much most of the savings that you would have normally seen in a divestiture, we are going to reinvest in the company to keep growing that topline. And I don’t expect any real marginal impact one way or the other to the bottom line on it.

John Barton – Cowen and Company

And your statement about taking the savings and putting it elsewhere, that's true of both Q1 and Q2, correct?

Brad Buss

Yes.

John Barton – Cowen and Company

Thank you.

Operator

Thank you. Srini Pajjuri, you may ask your question and please state your company name.

Srini Pajjuri – CLSA

Thank you. CLSA. Hi, Brad, just a couple of quick ones. I missed the OpEx guidance for the quarter. I know you just mentioned that there was not going to be much of a change, but what was the original guidance?

Brad Buss

You mean, for the current quarter?

Srini Pajjuri – CLSA

Q1, yes.

Brad Buss

84 plus or minus.

Srini Pajjuri – CLSA

Okay. And the tax rate for the quarter and the full year?

Brad Buss

You can take between 9 and 10.

Srini Pajjuri – CLSA

9 and 10, thanks. And then given that you're off to a strong start for the year, how should we think about seasonality? I mean, obviously, historically, you had a better second half than first half. Do you think that is sustainable this year as we go through the next few quarters?

T.J. Rodgers

Yes, at this point, I don’t think we see anything that would change it. Again, the wild card would be Touch ramps and tablet ramps. Take that out of the equation, we have got a good growth in the Emerging Tech. We have got our PSoC growing, growing to PSoC 3 and 5, that’s going to start to grow. But they are all going to edge in throughout the year.

Srini Pajjuri – CLSA

Okay. And then on the buybacks, you said you spent, you bought back about 2 million shares. Is that kind of a ballpark run rate we should think about going forward, or is there any price point where you could get more aggressive? Thank you.

T.J. Rodgers

It’s hard to say. I mean, like if you look at what we bought plus the YEPs we had outstanding, we could have taken 10 million shares out if those YEPs would have returned the stock, which we price them hopefully to return the stock by the way, but the semis were on fire, we did better than that, and that went beyond it. So, we said at the beginning we are going to be opportunistic. We like doing these YEPs, we either get a big chunk of stock at a discount or we get a very nice fast return and I think we will continue that strategy going forward. The market that goes weird on us are or the whole market, we are going to, we will take advantage of it. We are not on auto pilot, is the main message right?

Brad Buss

Our way of buying back is yield enhancement plan as we call it, it’s a prepaid call. So we sell calls at marketers, like discount – roughly at market, sometimes a few points above, sometimes a few points below. And we put out tons of money like $50 million, and if stock is below the strike price of the call, we end up taking the stock, and if it’s above it, we keep $2 million to $3 million. And we took our cash earnings from six-tenths of 1%, which is what we're earning the old-fashioned way to 3% for the quarter by collecting cash. So, it’s not a model like we are the grinding kind of plan, we are going to take back 1.75 million shares for the quarter.

What we like about is you think about what they pay us for the call; it’s in effect of being a discount of the share price. So, if we get $0.50 and the stock is $21, we are buying it back effectively at $20.50 or we get free money. Both of those sides are pretty good.

So, the way we work is, if the stocks keep swelling up like it has and we will keep going after it, 10-ish [ph] million shares per quarter, and keep investing and taking money and save in your bank account. If the stock takes a nose dive, then we are going to be right there and hold multi-million shares out of the market in one quarter. So, it’s opportunistic sounds haphazard. It's really very structured; it’s probably ballistic and will depend upon the share price.

Srini Pajjuri – CLSA

Thank you.

Operator

Thank you. Suchi Gustalva, you may ask your question and please state your company name.

Suchi Gustalva – Thinkequity

Hi, ThinkEquity. Hi, guys. Brad, it's hard to tell by phone, how's your body language?

Brad Buss

Body bigger and I am very casual and happy.

Suchi Gustalva – Thinkequity

Just kidding. Nice job on the quarter. So, you guys have alluded to this, but how is the revenue going to shape up quarter-by-quarter? Is it just going to be a steady and up and to the right quarter-by-quarter, or are there some reasons it would accelerate or not?

Brad Buss

I will just send you our internal plan; I will post it on the Web.

Suchi Gustalva – Thinkequity

We are trying. No, is there any point where it flexes in the year, just to understand?

Brad Buss

I think the earlier question on seasonality, right, as we sit right now, we don’t see anything different that would alter that. I mean, we normally pick up in Q2, have a good Q3, and then Q4 normally a wild card depending on how Q3 is so. I think modeling normal seasonal growth is still good at this time, and there could be a couple of things that could nudge it a little higher, but it’s too early to tell, right. We need to get through some of that. I don’t think you guys try to take us to $1.2 billion.

Suchi Gustalva – Thinkequity

Fair enough. And then on the Touch ASP, it sounds like there's some puts and takes that make it potentially flat or even go up. I just wanted to understand some of the commentary you've made and how that plays out. What's your expectation for the ASP for the TrueTouch product year-over-year?

Brad Buss

I think you are right. Really what happens, our ASP is going up and going up is driven by the shift of mix towards higher-value products. So, our Gen-2 solutions actually less expensive solution, but we are seeing higher and higher demand frankly for all points, which is at a higher ASP. So, we are seeing a mix shift upward, and then as we get into the larger screen size, that mix shift of course is quite a bit higher upward. So, we certainly expect them to hold and probably grow through the year just like they did it the back half last year.

Suchi Gustalva – Thinkequity

Okay, great. Last question, perhaps for T.J., now that you've had a crossover with CCD and SRAM, any updated thoughts on the value of keeping these two businesses under the same umbrella or not? Thanks.

T.J. Rodgers

The value of keeping what?

Suchi Gustalva – Thinkequity

I am sorry, the SRAM, the memory part of the business, and the CCD part of the business. Together. The synergies there, now that CCD has grown.

T.J. Rodgers

You mean, split the company?

Suchi Gustalva – Thinkequity

Yes.

T.J. Rodgers

Back when our stock was down at $3, $4, $5, and we are talking private equity firms, they talked to us about that. On the other end, the SRAM group is making north of 30% [ph] pretax, and it – we have been working as a company on SRAM for 28 years. I worked on SRAMs for seven years before that, that was how I got into the business. It’s part of us, it drives, it adds synergistic strategic synergies, but frankly, you guys asked us about 28-nanometers. So, our SRAM group is working with UMC, because we have an SRAM group, they are willing to work with us, because we have experts on yield in reliability. And so, wafers are going to come to us, we are going to be beat them up and tell them where the problems are and we are going to take them and tell them where the reliability issues are, and we are going to debug, help them debug 28-nanometer technology.

And then, changing gears, as we work with them on 65-nanometer technology, the next step will be to make it non-volatile. So, we have a deal with UMC to create, what they call their 65-nanometer technology, LL65. And we made a technology called S65, which is three mass added on to the base technology, nothing else changes and it makes non-volatile memory.

So, the next thing we will do is we will put our non-volatile memory in there and when the non-volatile memory is going there, then all of a sudden PSoC, if it needs it, or whatever we are making at that time, who needs 28-nanometer, so that a non-volatile system on chip technology. So, the memory group leads us by even more than one generation and causing with that design roles and yield and reliability studies for other technologies. So, right now, no, we are happy being together and we think the businesses are complementary.

Suchi Gustalva – Thinkequity

Okay, thanks for the color.

Operator

Thank you. Chris Danely, you may ask your question. Please state your company name.

Chris Danely JPMorgan Chase & Co.

Thanks, JPMorgan. Most of my questions have been answered. I just had a couple of quickies. Brad, how do you expect OpEx to trend post-Q1 throughout the year?

Brad Buss

I think you will add $1 million, $2 million a quarter is fairly normal. There may be the odd quarter where we wobble around a little more depending on R&D projects and then the other wild card is just variable comp-related stuff commissions, rep commissions, the comp for the employees depending on profitability. So, I don’t see any monster step-up. I know there is a lot of paranoia in other companies. Even in the Emerging Tech guys, it’s fairly measured, we are taking costs out in other areas while we are reinvesting whether it’s image sensor, whether it's some centralization or offshoring stuff we're doing. It's a very, very, very big focus area for us this year.

Chris Danely JPMorgan Chase & Co.

Great. And then can you guys just run through your expectations for relative growth rates of the CCD, MID, and DCD divisions this year?

Brad Buss

CCD by far will grow monster, the vast majority due to the Touch end of it. And then you have got PSoC 3 and 5 starting to ramp. I think in DCD, you have got a lot of older stuff, end of life stuff. I mean, that’s flattish, you have got PowerPSoC that will start growing. West Bridge, pretty much I think flattish in that area. Dana kind of gave you his comments earlier, unless you don’t think the com and Internet is growing, I think it will grow with that market. It’s obviously not going to grow like 40% plus like happened in the prior year, and I think you will see Emerging Tech. So, you want to keep your eye on TrueTouch, the PSoC brand, the Emerging Tech, which have the finger nab and then some of the track pads. Those are the big levers for the year and the more mature businesses will go along with the market. But I am pretty confident when you wrap them all together, we will grow much faster than the industry by a good stretch.

Chris Danely JPMorgan Chase & Co.

And so, between the MID and DCD, it sounds like you would expect MID to outgrow DCD slightly?

Brad Buss

On a percentage basis?

Chris Danely JPMorgan Chase & Co.

Yes.

Brad Buss

Yes.

Chris Danely JPMorgan Chase & Co.

Okay, great. And then, last question, T.J., could you just kind of give us your sort of opinion or your run down, or your ruminations on the various end markets out there, what's going on, and how you expect them to evolve throughout the year?

T.J. Rodgers

I will make one comment that related to your question, and then I will have Chris answer your question directly. Back on OpEx, I am paranoid about OpEx, and I have made it clear, the last time I made it clear was yesterday. We have been, from a CEO’s perspective, us companies that have $2 trillion in the bank and aren't creating jobs, blah, blah, blah, it's been really nice having hunker-down economies and really, really tuning up the company, enforcing hiring to be a scare resource that people debate, I should hire this guy, I should hire that guy, which is exactly how we run it.

Now, we are going into a period of relatively rapid growth and I am absolutely scared that 2000 is going to happen again. Of course, I am going to prevent that. So, I am putting systems in place. My bonus is paid on a point system, and I report in a six-page single space letter to my board every quarter on my point score, we call it, CSF, critical success factor score, and I can tell you that I have a bunch of goals, many of them one or two points.

EPS for example is only point for me out of 100, but my five big goals, which are 10 and more points, one of them is OpEx, and I actually have Senior VP in the corporation whose only job is tracking OpEx, and he’s the cost hawk, and I am all over it, and I am getting reports all the time, and I am working on controlling the way we hire. So, what I want to do and the same way as I said, our operations group is really going to shift what we put in the books, and are not going to play the book to bill game 2000-style, I am not going to play the Wahoo [ph], hire everybody you want game of 2000 either. So, we are going to have controlled growth, and I am going to be on top of it. I am worried about it, but I think we got enough in place to prevent this from happening.

Chris Seams

Hi Chris, this is Chris. Let me just kind of go our current view on the end markets, I will give you kind of a year-on-year view, ‘10 to ‘11. Computation, if you don’t add tablets in that space, probably we would be flat to maybe flattish for us year-on-year. If you put tablets, then obviously it’s going to grow, and as Brad talked about, we just have to see what product rollout and market uptake is going to be for those devices. And I tend to put them in Computation rather than handsets, because that’s what I actually see people displacing with those units today.

The consumer space for us is going to grow fairly well, but nothing like handsets. Handsets will be a large growth market for us this year, as both smart phones, the percentage of that market and capacitive touch grows in even larger portion of both smart phones and future phones in that market. So, the end market could be constant, we are going to grow a lot in it.

Industrial, probably will be just slightly modestly up year-on-year for us. And in the comp, overall year-on-year, probably be flattish to just barely up, but we have all seen kind of a tail-off at the end of ’10, and there would be a growth throughout this year I think is what’s going to happen in that market, and those are the end markets and how we classify.

Chris Danely JPMorgan Chase & Co.

Great, thanks guys.

Operator

Thank you. Glen Yeung, you may ask your question, please state your company name.

Glen Yeung Citigroup

From Citi. Obviously, you have got orders now that are starting to stretch out because you have lead times lengthening in the TrueTouch products, but if you think about the overall gear and the kind of demand you think you might see and you relate that to the capacity that you have available to you this year, what's your sense of the level of tightness versus looseness for lack of a better term in 2011?

T.J. Rodgers

I think that because we got the orders late in, yes, I expect it to be tight, but at the same time, I expect it will be able to support all the business and the new business pursuing today. I don’t think we will limit our growth or limit our customers’ ability to get products, because we are bringing on the capacity very quickly, and because we had already planned to grow this year.

Glen Yeung Citigroup

In an environment where you think it's – again, understanding your point that you're not missing any business, but in an environment where you would characterize it as more tight, not less tight, what is the impact of that on the way we should think about ASPs for the year?

Brad Buss

That’s a good question. I think the ASP growth I talked about earlier will not be driven by supply issues, these are proprietary products, I think it will be driven by shift towards higher-end products. I don’t – this is not a market where you – this is not a commodity market, you drop proprietary products. Customers don’t look too favorably on you, getting them into a proprietary socket and then deciding that it really cost more than it used to. I do think that it will be – there is a lot of value in what we are providing and that value was reflected in strong ASPs and strong – continued strong ASPs as we have had, and I think the mix toward higher end will also help ASPs.

T.J. Rodgers

As I said earlier, ASPs have been between $1.48 and $1.51 in every quarter of the prior year. We have heard some ups and downs today. If I had to guess, and it would be a guess because this isn’t something that you really can’t predict too well, put a $1.50 in for every quarter for this year, and you won’t be that far off. What things would go down, there is pricing pressure in some of the commodity markets because as we have excess capacity on the low end in fab 4, but we are out of capacity in the high end of fab 4, the world is that way.

On the other hand, in these high-volume businesses, when a customer comes in and says, I need 5 more million, I need 5 more million touchscreens, because of blah, blah, blah, and of course, you are going to give me step pricing on that. The answer is not 5 million but 4 million, and we are not talking about step pricing. So, one of the – so the contractual step pricing things we have to deal with the big manufacturers of cell phones, that dynamic goes in your favor when you are giving upside to them.

Brad Buss

And I think, Glen, as I think you know very well, right, there is a very big separation that’s gone on in the industry. And I think we think it’s only going to continue. We are guys that are providing system level solutions, really which is the predominant amount of our revenue are becoming integral parts of the design and architecture team of these customers, you are just not some commodity saying that some purchasing guy is winging you around on. Hence the reason, we are all spending engineering time, because they basically subcontract that out to us, and I think when you combine it with – I know you have done a lot and you know the number of fabs that have disappeared at lagging edge processes like we are on, you get an environment where you are delivering value, you don’t have a lot of capacity and you are able to enjoy finally a decent margin.

Now, I will make a comment that the bottle of water I am drinking, it still costs more than the average ASP on our chip. So, I think the industry in general has had good margins, and I think you are going to see them in you going forward, because there is a lot more religion that we have all got.

Glen Yeung Citigroup

I still think you're better than the water business. T.J., one last thought for you here, which is or a question for you, which is, you think about this idea that from an industry-level perspective, that we have taken some capacity out, we are adding some capacity back, when you think about Cypress' position in the market, do you think that your ability to control some of your own capacity is a competitive advantage? i.e., you can be gaining business, obviously because you have a good proprietary product, but the fact that you can supply it alone is also an added benefit.

T.J. Rodgers

There is absolutely no doubt that having not just some capacity, but half your capacity directly in your control, it’s a big deal. The advantage of having Chinese foundries it that they are very cost-effective, they are typically using in many cases, use market equipment with lower wage rates. The disadvantage is that you can wake up one morning and find out that you can’t give as many wafers as you would like to have, the good old capacity works when they're back.

So, we absolutely have to keep a bunch of capacity like half, under our control to make sure that, that we don’t get surprised by our fabs, and I do believe it’s an advantage over a completely fabless house

Glen Yeung Citigroup

That's interesting. Thank you very much for that.

Operator

Thank you. John Vinh, you may ask your question and please state your company name.

John Vinh – Collins Stewart

Yes, Collins Stewart. I want to follow up on a comment that Norm made earlier in the call, you said that in the tablet market, you only see one other competitor with a single-chip solution, and you actually see fewer competitors. You have always talked about the smart-phone market being a three-horse race. Does that imply that in tablets right now, it's more of a two-horse race, and that your market share is potentially meaningfully higher in tablets versus smart phones? And if you could maybe talk about what that could be, that would be great.

Norm Taffe

Yes, at least right now, that is the way it appears. And I think that market is certainly much earlier, but the competition doesn’t seem to be as broad at this stage as in the handset business.

John Vinh – Collins Stewart

Great. Okay. And then just a follow-up question on gross margins. CCD gross margins continued to trend up pretty nicely. It sounds like that's being driven by TrueTouch, as TrueTouch continues to grow meaningfully in 2011, where could your CCD gross margins go in 2011?

Brad Buss

I think the zip code where Norm is at is a very good area.

Norm Taffe

They are 61.5 in the last quarter and if someone would say to me, write a check for $250,000, and I will guarantee 61.5% for every quarter of the next year, I would sign the check.

John Vinh – Collins Stewart

Great. Okay. That’s helpful. Thank you.

Norm Taffe

I might cash that check.

Operator

Thank you. And our last question comes from Mr. Tim Luke. Please state your company name.

Tim Luke – Barclays Capital

It was answered already. Thank you so much.

T.J. Rodgers

And answer to that question, yes, the Green Bay Packers are going to win the Super Bowl. All right. Thank you very much. We have a good quarter and a good year. We have given good return to our shareholders and we are feeling pretty bullish about 2011. Thank you for tuning in.

Operator

Thank you. This concludes today’s Cypress Semiconductor conference call. You may disconnect at this time.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Cypress Semiconductor CEO Discusses Q4 2010 Results - Earnings Call Transcript
This Transcript
All Transcripts