Cypress Progress Report: Strong Traction with Cross-Selling Initiatives | Cypress Semiconductor
Cypress Progress Report: Strong Traction with Cross-Selling Initiatives
By T.J. Rodgers
In my last blog entry, I wrote about how the merger of Cypress and Spansion earlier this year created New Cypress—a $2 billion global leader in MCUs and specialized memories for embedded systems.
Cypress is No. 1 in SRAMs, No. 1 in NOR flash and No. 3 overall in MCUs and memories for the automotive market.
I wrote about some of the ways the market-leading products of our company are helping to drive innovation in Infotainment, Instrumentation and Automated Driver Assistance Systems (ADAS) applications in luxury automobiles. These segments are growing much more quickly than the broader automotive market, and the innovations I described have quickly begun to trickle down into the mass market with the promise of revenue expansion for established suppliers.
In Cypress’s Q2 earnings report to investors, which we delivered in July, I talked about the $51.6 million in cost savings we achieved as the result of our plan to capitalize on synergies between Cypress and Spansion and how that plan was ahead of schedule.
Innovation and improved efficiency are positive signs that we’re on track with our vision and plans for our new company. But there’s a third part to our plan—arguably the most critical part: the expectation that the complementary product positions of Cypress and Spansion in stable, fast-growing markets such as automotive and industrial would lead in very short order to cross-selling opportunities and significant revenue growth.
To cross-sell products, you have to cross-train your sales force. I’m pleased to report that effort is well underway. We trained more than 600 Cypress direct sales and distribution personnel at multiple regional, worldwide Sales Conferences in Q2. We exited these training events with aggressive incentives and additional field training in place for our distribution partners.
The fruits of our training effort have quickly become apparent: The design wins and design opportunities from our efforts have also exceeded our internal projections.
- In one example, a Tier 1 U.S. auto maker selected not only the Traveo™ automotive MCU, the HyperRAM™ and HyperFlash™ memories, and an analog Power Management IC (PMIC)—former Spansion products—but also a Cypress PSoC® programmable system-on-chip for the infotainment cluster of its next-generation models. This win is particularly noteworthy in that former Spansion products opened the door for Cypress's longtime flagship PSoC products. This is a dynamic we expect will repeat itself as customers become more familiar with the synergies of our new product portfolio.
- One of our new distribution partners, which had represented only Spansion before the merger, scored a design win in a Bluetooth Smart remote control at a large Korean Set-Top Box manufacturer for our PRoC BLE (Bluetooth Low Energy) programmable radio-on-chip solution.
I will post to this blog on average once or twice a month. My goal will be to keep you updated on New Cypress progress including our design wins, cross-selling efforts, developments that impact our top and bottom lines, new products and technologies, changing dynamics in the markets we serve and our efforts to continue to provide superior customer satisfaction and shareholder value.
If you have ideas for the blog or simply want to pass on your feedback, you can email me at email@example.com.