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Try Media/iStock via Getty Images With our past coverage of Cirrus Logic (NASDAQ:CRUS) noting revenue forecasting for 2024 in Cirrus Logic Beats Wall Street Again And More, we offer an update drawing from a significant level of new and important information. Cirrus held two conferences confirming ASP increases with new iPhones launching in September plus continued ASP growth over the next few years. The road ahead appears clearly labeled and bright. Shall we go for a drive? What kind do you favor, a thrill ...

A month has gone by since the last earnings report for Cirrus Logic (CRUS) . Shares have added about 14.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cirrus Logic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Cirrus Logic Q4 Earnings Top EstimatesCirrus Logic ...

Financial Performance - Fiscal year 2024 net sales decreased by 5.7% to $1.79 billion from $1.90 billion in fiscal year 2023, with audio product sales down 7.5% to $1.08 billion and HPMS product sales down 2.8% to $705 million [199][205]. - The company achieved a net income of $274.6 million in fiscal year 2024, which included an income tax provision of $89.4 million [200]. - Net sales for the fiscal year ended March 30, 2024, were $1,788.9 million, down 5.7% from $1,897.6 million in the prior year [258]. - Gross profit for the same period was $916.1 million, resulting in a gross margin of approximately 51.2% [258]. - The company reported a net income of $274.6 million, an increase of 55.5% from $176.7 million in the prior year [258]. - Basic earnings per share increased to $5.06, up from $3.18 in the previous year [258]. - The effective tax rate for fiscal year 2024 was 24.6%, a decrease from 30.6% in 2023 and an increase from 11.5% in 2022 [383]. Expenses and Costs - Research and development expenses for fiscal year 2024 were $426.5 million, reflecting a decrease of 7.0% from fiscal year 2023 [210]. - Selling, general and administrative expenses for fiscal year 2024 decreased by 5.9% to $144.2 million compared to fiscal year 2023 [212]. - The company recorded restructuring costs of $10.6 million in fiscal year 2023 related to impairment of lease assets and workforce reduction actions [214]. - The company reported a stock-based compensation expense of $89,271,000 in fiscal year 2024, compared to $81,641,000 in fiscal year 2023, an increase of 9.9% [264]. - Total rent expense under operating leases was approximately $23.6 million for fiscal year 2024, down from $24.4 million in 2023 and $19.9 million in 2022 [369]. Cash Flow and Investments - Cash flow from operations in fiscal year 2024 was $421.7 million, an increase from $339.6 million in fiscal year 2023, driven by an $18.4 million favorable change in working capital [223]. - The company used $163.0 million in cash for investing activities in fiscal year 2024, primarily for $124.7 million in net purchases of marketable securities and $38.3 million in capital expenditures and technology investments [224]. - Net cash provided by operating activities increased to $421,674,000 in fiscal year 2024, up from $339,568,000 in fiscal year 2023, representing a 24.2% increase [264]. - The company repurchased and retired common stock amounting to $185,995,000 in fiscal year 2024, compared to $191,382,000 in fiscal year 2023, a decrease of 2.0% [264]. Assets and Equity - Total assets as of March 30, 2024, were $2,231.6 million, compared to $2,064.0 million a year earlier, reflecting a growth of 8.1% [255]. - Total stockholders' equity increased to $1,817.0 million, up from $1,658.3 million, indicating a growth of 9.6% [255]. - As of March 30, 2024, the company's inventory balance was $227.2 million, a decrease from $233.5 million in the previous year [255]. - The goodwill balance remained stable at $435.9 million as of March 30, 2024, unchanged from the previous year [329]. Market and Sales - International sales accounted for approximately 99% of net sales in fiscal year 2024, consistent with previous years [207]. - The company faced challenges with the new HPMS product not launching as planned in fall 2023, impacting overall sales performance [198]. - Revenue from China was $1,114.3 million, a decline of 9.4% compared to $1,230.6 million in fiscal year 2023 [341]. - The Company’s ten largest end customers accounted for approximately 95% of sales in fiscal year 2024, with Apple Inc. alone representing about 87% of total sales [292]. Taxation and Compliance - The company recorded an income tax expense of $89.4 million in fiscal year 2024 on pre-tax income of $363.9 million, resulting in an effective tax rate of 24.6% [219]. - The company expects the OECD's Pillar Two legislation, effective in fiscal year 2025, to have no material impact on its consolidated financial statements [221]. - The Company reported gross unrecognized tax benefits of $32.1 million as of March 30, 2024, with a decrease of $0.8 million during fiscal year 2024 due to the expiration of the statute of limitations [389]. Future Commitments and Liabilities - Future operating lease commitments total $200.5 million, with the largest commitments in 2025 at $21.0 million [346]. - The Company has a remaining purchase obligation of approximately $840 million of wafers from GlobalFoundries under the Capacity Reservation Agreement as of March 30, 2024 [372]. - The company expects restructuring-related liabilities of $1.6 million to be substantially paid out in cash during fiscal year 2025 [348].

Cirrus Logic (CRUS) witnessed healthy momentum this year so far. Shares of the company have gained 37.1% in the same time frame compared with the sub-industry’s growth of 16.3%.Cirrus Logic is a fabless semiconductor supplier that develops low-power, high-precision mixed-signal processing solutions. The company focuses on expanding markets where it can apply its high-precision, low-power mixed-signal processing knowledge to address challenging issues across the analog-to-digital divide.Image Source: Zacks I ...

Group 1 - Computer Modelling Group Ltd. (CMG) has appointed Alex Davern as an independent non-executive director effective May 23, 2024 [1] - Alex Davern has over 25 years of experience in senior executive roles at National Instruments and has held positions such as CEO, COO, and CFO [1][2] - CMG announced the resignation of Judith Athaide from the Board of Directors effective February 29, 2024 [2] Group 2 - Mark Miller, Chairman of CMG, expressed confidence in Alex Davern's leadership and experience in managing high technology companies [2] - Pramod Jain, CEO of CMG, highlighted Davern's record in growing technology companies and creating shareholder value [2] - CMG is a global software and consulting company focused on solving complex challenges in the new energy industry [3]

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Blowout fundamentals are possible when your top client is doing well.Buoyed by a strong quarterly earnings report and resulting analyst price target lifts, audio processor specialist Cirrus Logic (CRUS 1.51%) was an outperformer of a stock in recent days. As of early Friday morning the company's share price had increased more than 17% week to date, according to data compiled by S&P Global Market Intelligence.A dynamite quarter for the specialty tech supplierCirrus posted its results for its fiscal fourth qu ...

Cirrus Logic Inc. (CRUS) reported fourth-quarter fiscal 2024 adjusted earnings per share (EPS) of $1.24, which beat the Zacks Consensus Estimate by 85.1%. Also, the bottom line increased 34.7% from the prior-year quarter’s 92 cents.Total revenues of $371.8 million surpassed the Zacks Consensus Estimate by 16.2% but decreased 0.3% year over year. The downtick was due to a reduction of general market and custom components, primarily in non-smartphone applications.Following the announcement, the company’s shar ...

Financial Data and Key Metrics Changes - Cirrus Logic reported Q4 revenue of $378.1 million, exceeding guidance due to strong smartphone demand [6] - Full fiscal year 2024 revenue was $1.79 billion, down 6% year-over-year, attributed to reduced shipments in non-smartphone applications [7][14] - Non-GAAP earnings per share for Q4 was $1.24, and for the full year, it was $6.59, reflecting a $0.17 increase year-over-year [17][20] Business Line Data and Key Metrics Changes - Non-GAAP gross profit for Q4 was $193 million, with a gross margin of 51.9%, driven by supply chain efficiencies [15] - Non-GAAP operating income for Q4 was $76.5 million, representing 20.6% of revenue [16] - Full fiscal year 2024 non-GAAP operating income was $447.1 million, with an operating margin of 25% [17] Market Data and Key Metrics Changes - The company experienced a 40% sequential decline in revenue for Q4, primarily due to reduced smartphone volumes [14] - Inventory at the end of Q4 was $227.2 million, with an increase in days of inventory to approximately 116 days [19] Company Strategy and Development Direction - Cirrus Logic's growth strategy focuses on maintaining leadership in smartphone audio, expanding into high-performance mixed-signal functionality, and penetrating new markets [8] - The company has made significant investments in camera controller products and power-related technologies, with expectations for future growth in laptops [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the laptop market, anticipating significant growth opportunities with new product launches [11][12] - The company expects Q1 fiscal 2025 revenue to range from $290 million to $350 million, reflecting seasonal weakness [21] Other Important Information - Cirrus Logic returned $186 million to shareholders through share repurchases during the fiscal year [13] - The company ended fiscal 2024 with nearly $700 million in cash and cash equivalents, maintaining a strong balance sheet [18] Q&A Session Summary Question: Gross margin outlook with new product introductions - Management expects gross margin to be slightly below the midpoint in the current quarter due to ramp costs but maintains a long-term gross margin model of 49% to 51% [27][28] Question: Early progress in the laptop market - Management is pleased with early progress in the laptop market, seeing a significant opportunity with a projected serviceable available market of over $1 billion [30] Question: Growth expectations for non-top customer revenue - Management indicated that non-top customer revenue could grow in the low tens of millions, with positive momentum in the Android and PC spaces [34][35] Question: Impact of generative AI on design and customer base - Management sees opportunities in generative AI, particularly in voice interfaces, and believes it can enhance customer base participation [41][42] Question: Expectations for smartphone market and content growth - Management is cautious about unit assumptions and does not provide specific guidance for the full year, focusing instead on current quarter guidance [52][53]