Cypress Semiconductor - Immersion 2/2

Some more from CY conference call (available on seeking Alpha):

Sandy Harrison - Signal Hill

Thanks for that update. Just a quick clarification on a prior question on the True Touch and I guess T.J., you had asked when they could get to 10 million a quarter. Was that Q3 of this year or Q3 of next year?

Norman P. Taffe

This year.

Sirini Pijirri - Analyst

Okay, got it. And then just a couple of questions on the True Touch -- obviously you guys have had a lot of success and a lot of buzz about the touch market. My question is, I mean, what do you worry most about in this market? Are you seeing any new competitors out there or you know, some of the issues that you can talk about for the next couple of years?

Norman P. Taffe

As far as competition in this space, it’s a very exciting market. There’s going to be lots of competitors, no doubt about that. I think the broad growth of the market and the move from resistant to capacitive is going to make a lot of room for a lot of people to succeed. We are very confident in our position. We’ve gotten very good technology. It’s very flexible and we are right now, we are quite sure we’re gaining significant market share in terms of design sockets and we intend to keep doing that. But it’s definitely going to be very competitive. Any market that has grown this fast attracts a lot of people trying to get into it.

Adam Benjamin - Jefferies

Thanks, guys. Nice job. Just a couple more follow-ups on the touch side -- I think last call, you talked about having design wins norm with all five of the tier ones. You announced the LG KS360 back in February and you announced the Omni HD today. If you look out to the back half of this year, on top of those that you are already shipping, can you talk about how many other tier ones you expect to ship this year and roughly how many models you are looking at?

Norman P. Taffe

It completely depends on the end customer but I will tell you we are shipping in some where they just don’t want us to announce that, even if it’s publicly known, so there’s additional ones that we are already shipping in.

I think what I can say is we do have wins, and design wins at six of the top eight and we are quite active on a seventh of the top eight suppliers, so that momentum continues to kind of what we described earlier.

As far as shipping before the end of this year, looking over at Chris I believe I guess the answer is --

Christopher A. Seams

We’ll ship at five or six of those -- probably seven [inaudible].

Norman P. Taffe

Yeah, I would say that, so there will be first shipments there. Now, whether we announce them or not, it really highly depends on how open they are in terms of disclosing what technology -- I mean, we do whatever the customer’s preference is there and a lot of the customers are very sensitive about that but we are getting -- having quite a bit of success at all the top guys, really.

T. J. Rodgers

And the other thing too is we’re finding you are getting more design wins, the attach rate is far greater at each of these than we expected going in, so --

Norman P. Taffe

Yeah, I think it’s safe to assume that if we get a win, we get more than one win and in some cases, we literally at some of the top tiers got double-digit wins, and in most -- very few of those are shipping as yet.

T. J. Rodgers

So I think the way to look at it too is the number of design wins in individual handsets, which we are not going to get into a practice of going down to the number or which ones, and I know you guys like to track them but as Norm said, from a customer standpoint, we just cannot do that and we are not going to go down that level. But we are shipping on a very small number of the wins right now. That’s why we have a fairly high confidence on that $100 million mark that we talked about.