2 0 1 1 a N N U a L R E P O

CYPRESS SOLUTIONS DRIVE THE WORLD’S BEST END PRODUCTS TrueTouch® and CapSense® Touch Sensing Cypress Semiconductor Corp. 2011 Annual Report and 2012 Proxy Statement 2011 ANNUAL REPO R T “The good news is that we have already done—market willing—everything required in Acer’s ICONIA™ TAB A100, the The NTT docomo PRIME series The Clarion touch panel featured in The Sony Mobile Communications R&D and manufacturing to produce $1 billion in revenue and $1.00-plus in EPS in 2011.” industry’s rst 7-inch tablet based F-01C mobile phone uses unique, the dashboard of the Suzuki MR Xperia™ sola phone is the world’s rst T.J. Rodgers, 2010 Annual Report on the Android 3.2 Honeycomb patent-pending TrueTouch technology Wagon is driven by Cypress’s with “hover” technology that tracks a platform, uses Cypress’s TrueTouch® to enable the touchscreen to CapSense® touch-sensing solution. nger close to, but not touching, the large touchscreen solution to operate even when wet. screen. This feature is enabled by MILLIONS OF UNITS drive its vivid display. technology found only in TrueTouch. 2,750 USB 3.0 ONS Finger Navigation 2,500 2,250 SRAM 2,000 1,750 XIMEA’s MQ Series industrial cameras are the world’s Samsung’s Intercept™ QWERTY mobile phone smallest and fastest. Cypress’s EZ-USB® FX-3™ SuperSpeed employs Cypress’s OvationONS™ sensor in the optical USB controllers provide 5-Gbps performance, enough to trackpad modules for easy and intuitive single-handed 1,500 generate 400 Megapixels per second. screen and menu navigation. 1,250 PSoC® SRAMs UNITS SHIPPED 1 BILLION UNITS = 1,000 100 MILLION UNITS/YEAR FOR 1 DECADE USB 750 Juniper Networks’ EX8208 Ethernet Switch uses Cypress’s QDR™ II+ PSoC SRAMs in delivering performance of 960 million packets per second. 500 Bicom’s playGo USB sends media wirelessly from PCs to entertainment 250 Cypress IPO systems. PSoC® controls LEDs, an RF module, an infrared receiver and six CapSense buttons inside the playGo. 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Oscium’s iMSO-104 mixed-signal oscilloscope YEAR ENDING uses PSoC 3 to turn this iPad The Aclara UMT-R residential power into an electronic instrument. meter relies on Cypress NVSRAM™ devices to provide fail-safe memory. PSoC® Joins SRAM and USB in the 1 Billion Unit Club: PSoC passed the 1-billion mark in units shipped during 2011, joining SRAMs and USB controllers as Cypress products that have shipped in very high volume and become industry standards. Cypress Semiconductor Corporation 198 Champion Court, San Jose, CA 95134-1709 (408) 943-2600 www.cypress.com ©2012 Cypress Semiconductor Corporation. All Rights Reserved. Trademarks are property of their respective owners. Printed in the U.S.A. CYPRESS USB: THE WORLDWIDE MARKET LEADER PSoC® CREATOR™ SOFTWARE: ACCELERATING SYSTEM DESIGN Cypress entered the Universal Serial Bus market in 1996 with the In 2000, Cypress changed the microcontroller market forever, introducing its revolutionary new PSoC product—a dynamic WORLDWIDE USB-ENABLED DEVICE goal of "Making USB Universal." Since then, we have shipped over solution integrating an MCU with programmable digital and analog functions, dramatically accelerating customer time to market. SHIPMENTS & FORECAST: 2011-2015 1.2 billion USB controllers and become the worldwide market leader. PSoC’s development environment, our PSoC Creator software, simplies and accelerates the design process through the use of Cypress offers the industry’s most complete USB portfolio – from the Millions of Units “components” – virtual chips with programmable digital and programmable analog capabilities, along with embedded rmware. 1.5 megabits per second (Mbps) throughput of its Low-Speed USB 6,000 As shown in the graphic below, PSoC Creator enables designers to drag and drop components into their system from an exten- sive library of predened and pretested functions, creating an entire system in the Creator software environment in just four steps. 1.1 devices to the ultrafast 5-Gbps connection speed of its USB 3.0 5,000 The result is a highly differentiated central processor for feature-rich end products. SuperSpeed solutions. USB 3.0 Over the next three years, the USB 3.0 standard is expected to 4,000 Increasingly what this means is that Cypress is a software company as much as a hardware company. Over the past ve years, contribute more than two billion units to the growing USB market, as the number of software engineers at Cypress has more than doubled to over 200. Our investment in software and software 3,000 shown in the graph at right. Cypress’s EZ-USB® FX3 controller, and its engineers enables us to produce unique, proprietary solutions with better margins than those of ordinary microcontrollers. ® ™ West Bridge Benicia storage solution for mobile and tablet applica- 2,000 tions, are uniquely positioned to tap into the signicant expansion of USB 2.0 CREATE AN ENTIRE SYSTEM IN SOFTWARE IN JUST 4 STEPS the USB 3.0 standard—which delivers connectivity and the seamless 1,000 transfer of music, video and images across a broad range of devices USB 1.1 1) Drag & drop components from the library 2) Congure the components’ parameters 0 from PCs to cameras, printers, medical imaging equipment and 2011 2012 2013 2014 2015 storage devices. Source: 2011 Intel Developer Forum Virtual chip: Congure MFi component MFi component TARGETING THE USB 3.0 SUPERSPEED MARKET Virtual At the heart of Cypress’s FX3 solution is a 200 MHz, 32-bit ARM9 PC board core and a exible, 32-bit General Programmable Interface (GPIF II) CYPRESS FX3 DESIGN RAMP that enables customers to add USB 3.0 connectivity to any system, 3) Add your custom rmware 4) Program the chip with your system design simplifying designs and improving their time-to-market. In just three Total Active Designs 400 quarters, our FX3 product has garnered more than 350 active Add rmware to Physically program the congured designs in applications such as data acquisition, gaming, biometric 300 MFi system system and rmware in a PSoC scanning, medical imaging, and machine vision. from PC to dongle to chip. Cypress is part of the USB Implementers Forum – the governing USB 200 standards body. FX3 is part of the USB-IF “Golden Tree” of device controllers, meaning that it will be used to create test conditions for 100 USB hosts and hubs. This makes it an important growth catalyst in the 0 fast-growing USB 3.0 ecosystem. Q111 Q211 Q311 Q411 PSoC IN Made for iPod | iPhone | iPad DESIGNS DATA THROUGHPUT/FLEXIBILITY PSoC Creator has more than 100 pre-tested, ready-to-use components in its software library, including a “Made for iPod” (MFi) FX1 FX2 FX3 component that connects a wide range of real-world devices – such as oscilloscopes, medical instruments, karaoke players and even musical instruments – with any product running Apple’s proprietary iOS operating system. Apple has certied this MFi – USB 1.1 (12 Mbps) – USB 2.0 (480 Mbps) – USB 3.0 (5 Gbps) connectivity component and selected PSoC 3 as its platform to test new MFi solutions. – 8-bit 8051 @ 48 MHz – 8-bit 8051 @ 48 MHz – 32-bit ARM9 @ 200 MHz – Up to 16-bit GPIF™ @ 48 MHz – Up to 16-bit GPIF™ @ 48 MHz – Up to 32-bit GPIF™ II @ 100 MHz MFi CONNECTIVITY MADE EASY WITH PSoC SOFTWARE Protocol MFi_1 Analyzer MFi Connectivity Monitor AUDIO_IN Rx Tx AUDIO_OUT clock Interrupt DMA Printer Wireless Keyboard and Mouse Set Top Box Medical Imaging Camera COMPLEX EMBEDDED IN DRAG & AND CREATE INNOVATIVE More Applications Higher Volume MFi CONNECTIVITY DROP PSoC CREATOR TO DEVELOP & PROTOTYPE NEW MFi PRODUCTS SUCH SPECIFICATION… MFi COMPONENT… MFi ACCESSORY USING PSoC… AS SONOMA WIRE WORKS’ GuitarJack™ FELLOW SHAREHOLDERS: * INTRODUCTION REVENUE AND PROFIT BEFORE TAX $ MILLIONS In the last sentence of Cypress’s 2010 Annual Report, 300 265 255 I wrote, “The good news is that we have already 242 250 232 233 223 227 done—market willing—everything required in R&D and REVENUE 194 202 200 manufacturing to produce $1 billion in revenue and 179 156 $1.00-plus in EPS in 2011.” Although the chip market 150 139 did slow down considerably at year end, Cypress 100 performed well in 2011, with $0.995 billion in revenue— 27% 25% 26% 23% 23% 23% 21% or 12.6% year-on-year growth vs. 0.4% for the 50 19% 16% PBT semiconductor industry overall. Our Programmable 11% 0 System-on-Chip (PSoC®) business drove our growth -2% -21% with $410 million in 2011 revenue, almost double our -50 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 2010 PSoC revenue of $208 million. Figure 1. Cypress’s revenue dropped to only $139 million in Q1 Cypress’s 12.6% revenue growth—combined with a of 2009 during a sharp recession, after which it grew consistently over the next two years due to a ramp in PSoC sales. Beginning rigorous cost-reduction effort that held operating in Q210, our PBT exceeded 20% for seven consecutive quarters, expense growth to just 5.0%—led to 24.1% profit and averaged 24.1% in 2011. before tax (PBT) in 2011, our best in a decade. (Our Cypress’s 10-year revenue trend is shown in Figure 2. PBT record was 32.6%, set in the dot-com boom year REVENUE $ MILLIONS of 2000.) Our EPS—further bolstered by the repur- 1,200 chase of 36 million shares during the year—was $1.25, 995 1,000 up 33% from the $0.94 reported in 2010, and the 938 884 855 second best ever for Cypress (also vs.

Load more