Financial Data and Key Metrics Changes - Cirrus Logic reported record revenue of $490 million for Q4 2022, a 67% increase year-over-year, and a full-year revenue of $1.78 billion, up 30% from the previous year [10][12] - Non-GAAP gross profit for Q4 was $259 million, representing a gross margin of 52.9%, which is up 240 basis points year-over-year [11] - Non-GAAP net income for Q4 was $118 million, or $2.01 per share, with full-year net income of $408 million, or $6.90 per share [12] Business Line Data and Key Metrics Changes - The growth in revenue was driven by high-performance mixed-signal content gains in smartphones and sales of fast-charging ICs, as well as audio products in laptops [10][11] - The company maintained its leadership position in smartphone audio and saw growth in laptop revenue compared to the prior year [7] Market Data and Key Metrics Changes - The supply chain environment remains constrained, with demand outstripping supply, particularly due to COVID-19 shutdowns in China [8] - The company anticipates continued strong demand for certain components in smartphones, contributing to expected revenue growth in the upcoming quarter [13] Company Strategy and Development Direction - The company focuses on three strategic pillars: maintaining leadership in smartphone audio, broadening sales of audio components in profitable applications, and leveraging mixed-signal engineering expertise for product diversification [6][7] - Future growth is expected from investments in high-performance mixed-signal areas, including power and charging solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about creating shareholder value through product diversification and long-term growth despite supply chain challenges [8] - The company expects gross margins to normalize around a long-term model of 50% due to shipping inventory built at higher costs [13][14] Other Important Information - The company ended fiscal year 2022 with $444 million in cash and cash equivalents, up $173 million from the prior quarter, and has no debt outstanding [12] - Cirrus Logic repurchased approximately $75 million of its common stock in Q4 and a total of $167.5 million during the full fiscal year [13] Q&A Session Summary Question: Seasonality expectations for the second half - Management noted strong results in the March quarter and guidance for the June quarter, but visibility remains limited due to supply constraints [19] Question: SoundWire technology and its market opportunity - Management discussed the potential of SoundWire technology in laptops, indicating it could lead to new product opportunities in boosted amplifiers and codecs [21][22] Question: Changes in June quarter guidance - Management attributed the higher confidence in June guidance to stronger-than-expected customer demand, despite initial expectations of a demand pause [26] Question: Progress in Android market - Management confirmed good progress in Android, particularly in boosted amplifiers and haptics, but noted ongoing supply constraints [41] Question: Programmability in power products - Management explained that as technology advances, more digital control logic will be integrated into power products, enhancing battery management and charging capabilities [43]

Financial Data and Key Metrics Changes - Cirrus Logic reported record revenue of $548.3 million for the December quarter, exceeding guidance due to increased high-performance mixed-signal content in smartphones and strong overall demand [7][8] - High-performance mixed-signal products accounted for 38% of total revenue, with significant growth from camera controller content and power conversion ICs [8][10] - The company anticipates that high-performance mixed-signal products could represent at least 50% of revenue in the future, up from 33% year-to-date in fiscal year 2022 [10][60] Business Line Data and Key Metrics Changes - The audio product line saw robust design activity for flagship and mid-tier Android smartphones, with initial shipments of boosted amplifiers in laptops marking progress in this category [9][10] - Fast charging products are being promoted heavily by OEMs, despite some softness in the China smartphone market towards the end of the calendar year [8][10] Market Data and Key Metrics Changes - The company noted a comparative softness in parts of the China smartphone market but remains optimistic about flagship Android smartphone launches in the first quarter of the year [8][28] - Laptop revenue is expected to grow significantly, from approximately $5 million in fiscal year 2021 to around $40 million in fiscal year 2022, driven by codec shipments and boosted amplifiers [23][24] Company Strategy and Development Direction - Cirrus Logic is focusing on diversifying its product and technology portfolio, particularly in high-performance mixed-signal solutions, sensing, power, and battery systems [10][31] - The strategy includes maintaining leadership in smartphone audio while expanding into adjacent product areas and broadening sales in audio beyond smartphones [31][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand for products and the ability to meet that demand, indicating that the March quarter does not follow typical seasonal patterns [12][26] - Gross margins are expected to normalize around 50% as new costs and pricing adjustments are phased in, with management cautiously optimistic about sustaining improved margins [18][67] Other Important Information - The company is investing in R&D to support growth in high-performance mixed-signal areas, with a significant increase in headcount to capitalize on opportunities [36][32] - Management highlighted the importance of maintaining strong relationships with key customers and the potential for growth in non-major customer segments [41][39] Q&A Session Summary Question: Guidance for March quarter and ASPs - Management indicated that the strong guidance is primarily driven by unit and content increases, with price adjustments also contributing [12][13] Question: Investment in new product areas - The company is in the early stages of shipping new power products and anticipates sustained growth in camera controller content [15][16] Question: Sustainability of gross margins - Management expects gross margins to normalize around 50% due to transient effects and cost increases [18][67] Question: Growth in non-major customer revenue - Management is optimistic about growth opportunities in high-performance mixed-signal space, both with major and non-major customers [41][39] Question: Supply constraints and unmet demand - Management acknowledged that unmet demand could have been higher if more wafers were available, indicating a resilient demand environment [45][44] Question: Fast charging product differentiation - New fast-charging products focus on higher charging rates and efficiency, with opportunities to extend beyond smartphones into laptops and other battery-centric devices [48][49] Question: Seasonality in June quarter - Management expects a typical seasonal step down from March to June, but with a stronger March quarter than usual [26][66]

Financial Data and Key Metrics Changes - Cirrus Logic reported record revenue of $465.9 million for Q2 FY2022, representing a 34% year-over-year increase, marking the highest revenue for the September quarter [8][9] - The company achieved year-over-year operating profit growth alongside record earnings per share [8] Business Line Data and Key Metrics Changes - The high-performance mixed-signal products segment contributed 30% of total revenue in the first half of FY2022, up 117% from the previous year [9] - The attach rate of camera controllers in smartphones has increased, contributing positively to revenue growth in the high-performance mixed-signal category [31] Market Data and Key Metrics Changes - The company is experiencing strong design momentum and diverse relationships across Android and other markets outside of smartphones, although supply constraints remain a challenge [35][36] - The company estimates a $400 million serviceable available market (SAM) in the notebook segment over the next five years, driven by strategic transitions in audio and video technology [19] Company Strategy and Development Direction - Cirrus Logic is focused on diversifying beyond audio, with significant milestones achieved in high-performance mixed-signal products, including new power conversion and control ICs [9] - The integration of Lion Semiconductor is expected to enhance the company's roadmap and expand its market reach, particularly in power products [12][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by supply chain disruptions but expressed confidence in long-term planning and customer relationships to navigate these issues [39][61] - The company aims to maintain a gross margin target of 50%, although it may dip slightly below this target in FY2023 due to pricing pressures and cost increases [60][82] Other Important Information - The company announced the retirement of CFO Thurman Case, who will assist in the transition to a new CFO [6][7] - Cirrus Logic has welcomed Raquib Hussein to its Board of Directors, enhancing its expertise in the semiconductor industry [8] Q&A Session Summary Question: Integration efforts with Lion Semiconductor - Management emphasized the priority of helping the Lion team execute on existing opportunities while exploring synergies with Cirrus Logic's technology [13][15] Question: Opportunities in the notebook market - Management indicated a $400 million SAM in the notebook segment, highlighting both opportunistic and strategic growth factors [19][18] Question: GlobalFoundries payment and capacity - The $255 million payment includes capacity reservation and wafer supply commitments, with expectations for increased capacity through 2026 [22][24] Question: Camera controller attach rates - Management noted a growing attach rate for camera controllers, with expectations for continued innovation and product updates [28][31] Question: Revenue outside the largest customer - Management reported a $50 million increase in revenue outside the largest customer, driven by design momentum and new wins [33][35] Question: Gross margin expectations - Management reiterated a target of 50% gross margin, with potential for slight dips due to market conditions [60][82] Question: Cash balance and financing needs - The company is comfortable operating with a cash balance above $200 million and does not foresee immediate financing needs [73][74] Question: Haptics opportunities - Management acknowledged modest expectations for haptics but is actively engaged with customers in AR and VR markets [76][78]

Cirrus Logic, Inc. (NASDAQ:CRUS) Q1 2022 Earnings Conference Call July 28, 2021 5:00 PM ET Company Participants Thurman Case - Chief Financial Officer & Vice President of Finance John Forsyth - President & Chief Executive Officer Chelsea Heffernan - Director of Investor Relations Conference Call Participants Tore Svanberg - Stifel Ruben Roy - WestPark Capital Blayne Curtis - Barclays Ananda Barowa - New Capital Matt Ramsay - Cowen Duksan Jang - SIG Rick Schafer - Oppenheimer Rajvindra Gill - Needham Operato ...

Financial Performance - Cirrus Logic reported net sales of $277.3 million for the first quarter of fiscal year 2022, an increase of $34.7 million, or 14%, compared to $242.6 million in the same period of fiscal year 2021[93]. - Gross margin decreased to 50.5% in the first quarter of fiscal year 2022 from 52.6% in the first quarter of fiscal year 2021, primarily due to pricing reductions and higher supply chain costs[97]. - Research and development expenses rose to $85.7 million in the first quarter of fiscal year 2022, an increase of $7.0 million from $78.7 million in the first quarter of fiscal year 2021[97]. - Selling, general and administrative expenses increased to $35.1 million in the first quarter of fiscal year 2022, up $5.4 million from $29.7 million in the first quarter of fiscal year 2021[98]. - Cash used in operations was $26.8 million for the first three months of fiscal year 2022, compared to $0.5 million generated in the same period of fiscal year 2021[104]. - Net cash used in investing activities was $16.7 million during the first three months of fiscal year 2022, compared to $9.2 million in the same period of fiscal year 2021[105]. - The effective tax rate for the first quarter of fiscal year 2022 was 12.3%, compared to 10.6% for the first quarter of fiscal year 2021[102]. - International sales accounted for approximately 98% of net sales for both the first quarters of fiscal years 2022 and 2021[95]. Strategic Initiatives - The company announced the acquisition of Lion Semiconductor for $335 million in cash, aimed at accelerating growth in its high-performance mixed-signal product line[82]. - Cirrus Logic has entered into a $225 million Capacity Reservation and Wafer Supply Commitment Agreement with GlobalFoundries to address market demand and supply assurance[83]. - The company is considering potential future acquisitions of companies or technologies as part of its growth strategy[108]. Credit and Financial Agreements - The company has a $300 million senior secured revolving credit facility, which is guaranteed by all material domestic subsidiaries[109]. - As of June 26, 2021, the company had no outstanding amounts under the credit facility and was in compliance with all covenants[111]. - The credit agreement includes a financial covenant that limits the ratio of consolidated funded indebtedness to consolidated EBITDA to not greater than 3.00 to 1.00[110]. - The credit agreement contains negative covenants that limit the company's ability to incur debt and make certain investments[110]. Market Risks - The company is exposed to market risks associated with interest rates, currency movements, and the value of marketable securities[112]. - The company uses forward contracts to manage foreign currency exchange risk, with gains and losses recognized in earnings[112]. - The applicable margin for Base Rate Loans ranges from 0% to 0.50% per annum, while for LIBOR Rate Loans it ranges from 1.25% to 2.00% per annum based on the Leverage Ratio[110]. - A commitment fee accrues at a rate ranging from 0.20% to 0.30% on the average daily unused portion of the lenders' commitment[110]. - The company believes its expected future cash earnings and existing cash will be sufficient to meet capital requirements for at least the next 12 months[108].

Financial Data and Key Metrics Changes - Cirrus Logic reported FY 2021 revenue of $1.37 billion, representing a 7% year-on-year increase [9] - Non-GAAP EPS for FY 2021 was $4.58, up 27% year-on-year, driven by content gains and higher unit volumes [9] - The company experienced strong demand but faced capacity constraints that impacted revenue in the last quarter and outlook for the first quarter of FY 2022 [9][10] Business Line Data and Key Metrics Changes - The high-performance mixed-signal category saw a 55% year-on-year revenue growth, attributed to the introduction of a new camera controller [8] - Audio solutions in smartphones continued to penetrate the market, with growth expected in non-smartphone categories as well [7][22] Market Data and Key Metrics Changes - Demand remains strong in the semiconductor industry, with some areas experiencing excessive supply, particularly in older products [9] - The Android market showed signs of recovery, with expectations for strong growth in FY 2022 [24] Company Strategy and Development Direction - Cirrus Logic is focusing on product diversification in high-performance mixed-signal areas as a key pillar of its strategic vision [8] - The company is excited about new technologies and R&D investments aimed at enhancing its audio and mixed-signal solutions [10][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating revenue growth in FY 2022 due to a strong pipeline of new products [10] - The company acknowledged ongoing capacity constraints but emphasized that they would not impede the ability to meet ramp schedules [29] Other Important Information - The company is participating in several upcoming conferences hosted by Cowen, Bank of America, and Stifel [47] - Management refrained from discussing specifics about their largest customer due to company policy [10] Q&A Session Summary Question: Content expansion in premium devices - Management highlighted excitement about the power conversion and control IC, expecting a healthy attach rate and significant ASP value [12][13] Question: March quarter results and guidance - Management clarified that supply constraints did not impede service to their largest customers, but affected general market customers [19] Question: Growth and profitability in segments - Management indicated that gross margins are consistent across new product segments, with some exceptions for legacy products [26] Question: Pricing environment and ASPs - Management noted normal year-on-year ASP declines for older products, with some pricing pressure due to capacity constraints [36][37] Question: Opportunities from the pandemic - Management observed increased demand for higher quality audio in laptops and tablets, driven by the rise in remote work and video conferencing [39][40] Question: Transition in product offerings - Management confirmed that the new power conversion and control IC is not replacing any existing products, indicating a new market opportunity [32][45]

Cirrus Logic, Inc. (NASDAQ:CRUS) Q3 2021 Earnings Conference Call February 1, 2021 5:00 PM ET Company Participants Thurman Case - CFO John Forsyth - CEO Chelsea Heffernan - Director, IR Conference Call Participants Tore Svanberg - Stifel Ruben Roy - Benchmark Company Matt Ramsay - Cowen Blayne Curtis - Barclays Derek Soderberg - Colliers Securities Rajvindra Gill - Needham & Company Vivek Arya - Bank of America Christopher Rolland - SIG Andy Hummel - Oppenheimer Operator Ladies and gentlemen, thank you for ...