Cirrus Logic(US:CRUS) ZACKSยท2025-02-05 13:06Core Insights - Cirrus Logic Inc. reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.51, exceeding the Zacks Consensus Estimate by 23.65% [1] - Quarterly revenues were $555.7 million, down 10.2% year over year, primarily due to lower smartphone sales, but exceeded management's forecast [2][3] Financial Performance - The adjusted EPS in the prior-year quarter was $2.89 [1] - The Zacks Consensus Estimate for revenues was $510 million, while the company's largest customer accounted for 91% of total revenues [2][3] - Non-GAAP gross margin expanded by 230 basis points year over year to 53.6%, driven by a shift to higher-margin products [6] - Non-GAAP operating income declined 12.1% year over year to $168.9 million, with the operating profit margin falling to 30.4% from 31.1% [6] Segment Performance - The High-Performance Mixed-Signal segment contributed 38% to total revenues, with revenues falling 12.9% year over year to $209.5 million [5] - The Audio segment's sales decreased 8.5% to $346.3 million, contributing 62% to total revenues [5] Cash Flow and Balance Sheet - The company ended the fiscal third quarter with cash and marketable securities of $564 million, up from $478.3 million as of September 28, 2024 [8] - Cash flow from operations was $218.6 million, down from $313.7 million in the prior-year quarter [9] - Free cash flow for the quarter was $211.9 million, and the company repurchased almost 679,000 shares worth $70 million [9] Future Outlook - Management projects revenues for the next quarter to be between $350 million and $410 million [10] - Expected GAAP gross margin is in the range of 51-53%, with non-GAAP operating expenses estimated between $119-$125 million [10]