Cirrus Logic Inc. (CRUS) reported first-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.12, which surpassed the Zacks Consensus Estimate by 80.7%. Also, the bottom line expanded 67.2% from the prior-year quarter’s 67 cents.Total revenues of $374 million beat the Zacks Consensus Estimate by 17.7% and soared 18% year over year. The uptick was driven primarily by stronger-than-anticipated shipments into the smartphone market. The company’s largest customer accounted for 88% of total revenues in the ...

Financial Data and Key Metrics Changes - Cirrus Logic reported revenue of $374 million for Q1 FY 2025, exceeding the top end of guidance due to stronger-than-expected smartphone shipments, representing an 18% year-over-year increase [6][13] - Non-GAAP gross profit was $189.2 million with a gross margin of 50.6%, reflecting a sequential decrease of 130 basis points due to higher supply chain costs [13][14] - Non-GAAP net income for the quarter was $62.4 million, or $1.12 per share, benefiting from higher revenue and profitability [14] Business Line Data and Key Metrics Changes - The flagship smartphone audio business saw significant milestones with the ramp-up of next-generation products, including a custom boosted amplifier and a 22-nanometer smart codec [7][8] - The company anticipates growth in high-performance mixed-signal content in smartphones, particularly with new customer introductions expected later this year [9][10] Market Data and Key Metrics Changes - Cirrus Logic has design wins with all top six laptop OEMs, indicating strong demand in the laptop market, which is expected to enhance user experience and increase market share [11][12] - The company is also exploring opportunities in industrial applications and automotive markets, leveraging its audio and mixed-signal technologies [30][44] Company Strategy and Development Direction - The long-term strategy focuses on maintaining leadership in smartphone audio, expanding high-performance mixed-signal functionality, and penetrating new markets [7] - Investments are being made in advanced power and battery-related technologies, with ongoing R&D programs aimed at high-efficiency charging and battery management [10][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained demand for products, noting that the guidance for Q2 FY 2025 anticipates revenue between $490 million and $550 million, benefiting from a longer production ramp period [17][24] - The company is focused on controlling discretionary spending while strategically investing in product development to drive long-term growth [18] Other Important Information - Cirrus Logic ended Q1 FY 2025 with $744.6 million in cash and investments, with no debt outstanding and $300 million undrawn on its revolver [15] - The company plans to continue returning capital to shareholders through stock repurchases, with $274.1 million remaining in its share repurchase authorization [16] Q&A Session Summary Question: Strength in Business Guidance - Management noted that the strength in guidance comes from sustained demand and historical patterns, with a slight offset in quarter comparisons due to a 53-week year last year [22][23] Question: Opportunities in AI PC Market - Management highlighted excitement around the AI PC upgrade cycle, with over 100 designs in progress targeted for calendar 2025 launches [25][46] Question: Strategy for Industrial Applications - Management discussed rejuvenating analog catalog products for industrial applications, emphasizing strong customer feedback and potential in pro-audio and automotive markets [28][30] Question: Battery Management Opportunities - Management confirmed significant investments in battery-related technologies, focusing on improving performance through advanced analog mixed-signal integration [36][37] Question: Revenue Timing for Data Converters - Management indicated that revenue from new data converter products will contribute to the broader market business, which is not heavily reliant on any single customer [32] Question: Content Growth in Smartphones - Management stated that growth is not solely dependent on smartphone unit increases, focusing instead on enhancing content offerings [48]

Core Insights - Cirrus Logic (CRUS) reported quarterly earnings of $1.12 per share, significantly exceeding the Zacks Consensus Estimate of $0.62 per share, and up from $0.67 per share a year ago, representing an earnings surprise of 80.65% [1] - The company achieved revenues of $374.03 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 17.73% and increasing from $317.02 million year-over-year [1] Earnings Performance - Cirrus Logic has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [1] - The company also exceeded consensus revenue estimates in each of the last four quarters [1] Stock Performance - Cirrus Logic shares have increased by approximately 35.7% since the beginning of the year, compared to an 8.7% gain in the S&P 500 [2] Future Outlook - The company's earnings outlook is favorable, with a current consensus EPS estimate of $1.70 on revenues of $477.77 million for the upcoming quarter, and $6.04 on revenues of $1.75 billion for the current fiscal year [4] - The Zacks Rank for Cirrus Logic is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [4] Industry Context - The Electronics - Semiconductors industry, to which Cirrus Logic belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [5] - Another company in the same industry, Pixelworks (PXLW), is expected to report a quarterly loss of $0.15 per share, reflecting a year-over-year decline of 66.7% [5][6]

Investor Relations Update As of August 6, 2024 Safe Harbor Statement Except for historical information contained herein, the matters set forth in this presentation contain forward-looking statements, including industry market projections; our revenue growth opportunities; our ability to grow the percent revenue derived from high-performance mixed-signal (HPMS) solutions beyond audio; our ability to fuel product and application diversification; our ability to maintain our leadership position in smartphone au ...

For the Transition Period from ____ to ____ Commission File Number 0-17795 CIRRUS LOGIC, INC. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Title of each class | Trading Symbol | Name of each e ...

Exhibit 99.2 Q1 FY25 Letter to Shareholders August 6, 2024 August 6, 2024 Dear Shareholders, In Q1 FY25, Cirrus Logic delivered revenue of $374.0 million, up 18% year over year. Revenue was above the top end of our guidance range due to stronger-than-expected shipments into smartphones. GAAP and non- GAAP operating profit were 12.5 percent and 19.0 percent, respectively, while GAAP and non-GAAP earnings per share were $0.76 and $1.12, respectively. During the quarter, we started ramping production of our ne ...

The semiconductor industry’s global sales are gaining momentum. The Semiconductor Industry Association recently reported a 1.7% month-over-month increase and 18.3% year-over-year growth in global semiconductor sales, reaching $50 billion in May.Year-over-year growth was strongest in the Americas, with sales jumping 42.8%, trailed by China and Asia Pacific/All Other, sales of which increased 21.6% and 12.7%, respectively.In the second quarter of 2024, global sales increased 18.3% year over year and 6.5% sequ ...

An optimistic note from a Wall Street analyst lifted Cirrus and other chip stocks, too.Shares of audio mixed-signal chipmaker Cirrus Logic (CRUS 3.86%) were rising on Tuesday, up as much as 6.3% at one point before pulling back to a 4.1% gain as of 2:30 p.m. ET. Cirrus rose on the back of a positive analyst note, which had good news for this smartphone-related chipmaker, as well as others.Keybanc's checks leave its chip analyst optimisticIn a research note published today, Keybanc analyst John Vinh raised h ...

Core Viewpoint - Cirrus Logic's stock has surged 48% in 2024 due to optimism surrounding a recovery in the smartphone market, strong quarterly results, and potential improvements in its largest customer, Apple [1][3]. Group 1: Financial Performance - Cirrus Logic reported $372 million in revenue for Q4 fiscal 2024, flat year-over-year but exceeding Wall Street's estimate of $317 million [3]. - Non-GAAP earnings rose 35% year-over-year to $1.24 per share, significantly above the consensus estimate of $0.64 per share [3]. - The company forecasts $320 million in revenue for the current quarter, surpassing the analyst estimate of $302 million [3]. Group 2: Customer Dependency - Apple accounted for 87% of Cirrus Logic's revenue in fiscal 2024, up from 83% and 79% in the previous two fiscal years [1][2]. - The decline in Apple's iPhone shipments by nearly 10% year-over-year in Q1 2024 impacted Cirrus Logic's top-line growth [4]. Group 3: Market Outlook - The AI smartphone market is projected to grow at a CAGR of 65% through 2027, which could benefit Cirrus Logic as Apple integrates AI features into its products [4][5]. - Analysts expect Apple to sell 244 million iPhones in fiscal 2025, a 10% increase from the current fiscal year, with continued growth anticipated in fiscal 2026 [5][6]. - The upcoming release of AI-capable MacBooks and the expected upgrade cycle for iPhones could further enhance Cirrus Logic's growth prospects [6][7]. Group 4: Investment Considerations - Cirrus Logic's revenue in fiscal 2024 decreased by almost 6% to $1.79 billion, but analysts predict a small improvement in the current fiscal year [7]. - The stock trades at 26 times trailing earnings, which is a discount compared to the Nasdaq-100's trailing earnings multiple of 32, indicating potential for further upside [7][8].

Product Launch and Features - Cirrus Logic Inc. (CRUS) has launched a new lineup of digital-to-analog converters (DACs) and an ultra-high-performance audio CODEC aimed at recording artists, live performers, and audiophiles, focusing on sound quality and performance [1][2] - The new products include the 8-channel DAC CS4308P, 4-channel CS4304P, 2-channel CS4302P, and CODEC CS4282P, which feature minimal power consumption and hybrid gain control [1] - The devices are designed for superior analog functionality and digital integration, compatible with various audio equipment such as USB audio interfaces and professional speakers [1] Power Efficiency and Customization - The new solutions offer configurable advanced digital filters, allowing customers to customize their sound [2] - The 8/4-channel DACs consume only 10 mW/channel, highlighting the company's commitment to energy-efficient products [2] Financial Performance - In the last reported quarter, CRUS generated revenues of $371.8 million, a slight decrease of 0.3% year-over-year, attributed to a reduction in general market and custom components [3] - The revenue exceeded the Zacks Consensus Estimate of $320 million, and for the first quarter of fiscal 2025, the company expects revenues between $290 million and $350 million, with gross margins projected between 49% and 51% [3] Strategic Collaborations - CRUS is enhancing its position in the semiconductor industry through innovative product launches and strategic alliances, including a collaboration with Intel and Microsoft to develop a new PC reference design [3]