Cypress Semiconductor Corporation (NASDAQ:CY) announced that Hassane El-Khoury has been named its president, chief executive officer, and a member of its board of directors, and that Ray Bingham’s current role as chairman of the board has been expanded to executive chairman, providing him with a day-to-day role in support of the CEO focused externally on customers and investment opportunities.
“The goal of our comprehensive internal and external executive search was to identify a CEO who would drive the transformation of Cypress, expand our leadership position in embedded systems and enhance our focus on revenue and earnings growth and long-term shareholder value,” said Bingham, a 30-year veteran of the semiconductor industry who sits on numerous high-tech boards of directors in addition to Cypress. “Among the many interested and qualified candidates we interviewed, El-Khoury emerged as the clear executive leader to deliver on Cypress’s enormous potential and unlock its value for customers and investors. He has demonstrated strong leadership and judgment over the past nine years as a senior executive at Cypress, heading up some of the company’s most innovative and successful businesses. He is an agent of change who brings to this position an extensive knowledge of our target markets and a mindset focused on customer value and profitable growth.”
“Cypress is at an inflection point,” said El-Khoury, who played a key role in Cypress’s successful integration with Spansion over the last year and a half and its more recent acquisition of Broadcom’s Internet of Things (IoT) business. “We’ve architected our company to become more valuable to our embedded-systems customers, significantly expanding our portfolio of high-value solutions in growth markets such as automotive, industrial, consumer electronics and the IoT. I am thrilled and humbled to lead Cypress into the future as we expand upon our position as the supplier of choice for the world’s most innovative embedded-systems customers and partners.”
Before joining Cypress in 2007, El-Khoury served in various roles with Continental Automotive Systems in the U.S.,Germany and Japan. Prior to Continental, he earned his bachelor’s of science degree in electrical engineering (BSEE) from Lawrence Technological University in Michigan and his master’s degree in engineering management fromMichigan’s Oakland University.
Bingham served as the non-executive chairman of Cypress’s Board of Directors from its merger with Spansion in March 2015 to the present. He serves on the boards of high-tech companies including Oracle Corporation, he is the chairman of the board of Flex (formerly Flextronics), and he has served as the managing director of General Atlantic LLC, a technology-focused global private investment firm with offices in Silicon Valley. From 1993-2005, Bingham served in leadership positions with Cadence Design Systems, Inc., including president and chief executive officer and executive chairman. His executive experience provides Cypress with the critical perspective of someone familiar with all facets of an international enterprise.
Concurrent with these changes, as planned, former Cypress CEO T.J. Rodgers has resigned from Cypress and the Cypress board. “T.J. created a company with the resiliency to stand up to more than 34 years of change in the semiconductor industry, and one that is positioned for considerable future success,” El-Khoury said. “On behalf of all of our employees around the world, we would like to thank T.J. for his contributions and dedication to Cypress.”(Original Source)
Shares of Cypress Semiconductor are down nearly 4% to $10.90 in pre-market trading. CY has a 1-year high of $12.36 and a 1-year low of $6.30. The stock’s 50-day moving average is $10.90 and its 200-day moving average is $9.22.
On the ratings front, Cypress Semiconductor has been the subject of a number of recent research reports. In a report issued on July 29, Needham analyst Rajvindra Gill reiterated a Buy rating on CY, with a price target of $14, which implies an upside of 23.7% from current levels. Separately, on July 28, Pacific Crest’s John Vinh reiterated a Buy rating on the stock and has a price target of $14.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Rajvindra Gill and John Vinh have a total average return of 15.7% and 5.3% respectively. Gill has a success rate of 60.3% and is ranked #46 out of 4110 analysts, while Vinh has a success rate of 46.6% and is ranked #865.
Overall, 2 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $12.75 which is 12.6% above where the stock closed yesterday.
Cypress Semiconductor Corp. manufactures, designs, develops and markets digital and mixed signal integrated circuits. Its offerings include the flagship Programmable System-on-Chip families and derivatives such as CapSense touch sensing and TrueTouch solutions for touchscreens. The company operates through four reportable segments: Memory Products Division, Data Communications Division, Programmable Systems Division and Emerging Technologies Division.