When you think about touchscreens, the first name that springs to mind might be Apple
After that, you might think of Synaptics
So far, so good. But when you lift the next curtain, you'll find a plethora of chip designers fighting to establish themselves as the supplier of touchscreen controller chips. That's where you'll find Cypress Semiconductor
Cypress lost $0.13 per share in the third quarter on $178.7 million of revenue. That's much better than the second quarter's $0.32 loss per share and $155.8 million in sales. And if you back out one-time charges and stock-based compensation, you get a net profit of $0.10 per share, up from a loss of $0.03 per share three months ago.
Management held up its TrueTouch touchscreen controller products like that old baboon hoisting newborn prince Simba to accept the kingdom's adoration in The Lion King. "Customer acceptance of our new products remains very strong and we are pleased with high-profile design wins in many new end markets," CEO T.J. Rodgers said. "We continue to achieve significant proprietary product design wins -- especially with our TrueTouch touchscreen products."
Just to name a few examples, publication DigiTimes reports that TrueTouch is the multitouch technology Palm
Cypress has a few other products as well, including entire programmable systems on a single chip and USB controllers. But the company isn't head-and-shoulders above the rabble in those sectors. If and when multitouch screens catch on in a big way, bringing the revolution Apple started to its logical conclusion, small-cap Cypress should be one of the biggest winners along the way.
Companies with disruptive technologies, like Cypress, can make you rich in a hurry. Fool contributor Anders Bylund holds no position in any of the companies discussed here. Apple is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.