Strategy Tranparency – CY

I have followed Cypress Semi (CY) for some time.  Currrently, I am long $14 calls that will probably evaporate valueless.  But, CY is doing something that merits pointing out.  They are in the midst of what they are calling “Cypress 3.0” – a business transformation that was probably not all voluntary.

In a recent analyst meeting the CEO talks about the strategy and their expected results.  His remarks:

(Quote) “And obviously for a meaningful size revenue from that, it’s not going to move the needle in ’18 and ’19, but think about in the ’20 as those things get deployed as that connectivity happens, and when you have a software-as-a-service than that starts to be almost an annuity as you go through it and that will start diversifying our revenue stream while maintaining a big focus on because we need good connectivity on the silicon side in order to enjoy this seamless connection on the software, both of those together are what’s going to enable that power of cross-selling.”

I appreciate the fact that he is willing to talk long term outcomes of the strategy without too much visible anxiety of short term expectations.  Transparency of strategy outcomes in longer term timeline is refreshing.  I will keep watching and along with MRVL, CY is a top IOT narrative connectivity watch list item.

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