Cypress Semiconductor Corp. today announced that it completed the divestiture of its TrueTouch® mobile touchscreen business to Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading supplier of video displays and interface ICs headquartered in Silicon Valley. The divestiture, which was completed as expected on July 31, 2015, will enable Cypress to continue its focus on embedded automotive and industrial markets.
Under the terms of the deal, Cypress will continue to provide TrueTouch capacitive touchscreen solutions to automotive, industrial and home appliance customers. The $100 million cash consideration from the deal will accelerate the capacity for shareholder returns.
"Parade's state-of the-art display solutions and its relationships with Tier 1 consumer and PC manufacturers make it the right choice to continue to serve TrueTouch mobile customers," said Hassane El-Khoury, Executive Vice President of Cypress's Programmable Systems Division and Software. "We will continue to have a significant focus on TrueTouch in automotive and growth segments of the industrial and home appliance markets. Many of these segments, including the automotive human-machine interface segment, have high gross margins and are growing faster than the broader marketplace. Additionally, these markets will provide us with stable, long-term sources of revenue that are less subject to the typical peaks and valleys of consumer markets."
In conjunction with the divestiture, Cypress announced revised non-GAAP expectations for its third-quarter financial results. The company now expects revenue in the range of $470 million to $490 million, operating expenses in the range of $133 million to $135 million, and earnings per share (EPS) in the range of $0.15 to $0.18.
Cypress's TrueTouch capacitive touchscreen solutions deliver robust performance and a natural user experience in a broad range of challenging environments with best-in-class waterproofing, noise immunity, passive stylus and glove-touch capabilities, as well as proximity sensing and face detection. The company's unmatched IP portfolio is backed by hundreds of capacitive touch-sensing patents and includes true single-layer sensor solutions with Cypress's Single-Layer Independent Multi-Touch (SLIM®) sensor for dramatically reduced touchscreen costs.