Cypress To Discontinue Participation In Reverse Auctions.Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. Practice Does Not Allow Cypress to Realize Full Value for Its Solutions; Undercuts Development of Long-Term, Strategic Relationships With Customers SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif. -- Cypress Semiconductor Cypress Semiconductor is a semiconductor design and manufacturing company. It began operations in 1982 and listed publicly in 1986. Two years later, the company shifted over to the New York Stock Exchange under the symbol, (NYSE: CY). Corp. (NYSE NYSE See: New York Stock Exchange : CY) today announced that it will no longer participate in reverse auctions - the procurement process whereby suppliers bid against one another in real-time over the Internet for procurement contracts. The process is called a "reverse" auction because prices fall over time instead of rising as they do in traditional auctions. Cypress also does not use the practice in awarding contracts for its own vendors. The reverse-auction process has numerous drawbacks. It does not allow bidders to realize the full value of their solutions, instead focusing solely on the lowest price as a differentiator. It also devalues collaboration between suppliers and customers that is critical to introducing innovative new products. "A driving force behind Cypress's new mission to become the leading supplier of programmable solutions is the ability to obtain more value from our intellectual property," said Christopher Seams, executive vice president of Worldwide Sales and Marketing for Cypress. "In addition, we pride ourselves on the ability to work with the world's leading OEMs to develop long-term, strategic relationships that benefit both parties. The reverse auction process is not conducive con·du·cive adj. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable. to either of these important outcomes. It is not good for Cypress, our customers, or our shareholders." About Cypress Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value. Cypress offerings include the PSoC[R] Programmable System-on-Chip[TM], USB USB in full Universal Serial Bus Type of serial bus that allows peripheral devices (disks, modems, printers, digitizers, data gloves, etc.) to be easily connected to a computer. controllers, general-purpose programmable clocks and memories. Cypress also offers wired and wireless connectivity solutions ranging from its WirelessUSB[TM] radio system-on-chip, to West Bridge[TM] and EZ-USB[R] FX2LP controllers that enhance connectivity and performance in multimedia handsets. Cypress serves numerous markets including consumer, computation, data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , automotive, industrial, and solar power. Cypress trades on the NYSE under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors CY. Visit Cypress online at www.cypress.com. Cypress, the Cypress logo and PSoC are registered trademarks and "Programmable System-on-Chip" and PSoC Designer are trademarks of Cypress Semiconductor Corp. All other trademarks are property of their respective owners. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion