Financial Data and Key Metrics Changes - Cirrus Logic reported revenue of $580.6 million for Q3 fiscal 2026, exceeding the top end of guidance, driven by strong demand for smartphone components and a favorable mix of end devices [4][12] - On a sequential basis, revenue increased by 4%, attributed to higher smartphone unit volumes, while year-over-year sales also rose by 4% [12] - Non-GAAP gross profit was $308.2 million with a gross margin of 53.1%, reflecting a 60 basis points increase sequentially but a 50 basis points decrease year-over-year [12][13] - Non-GAAP net income reached $156.7 million, resulting in record earnings per share of $2.97 for the quarter [14] Business Line Data and Key Metrics Changes - The flagship smartphone audio business experienced strong demand for new products, including a custom-boosted amplifier and a 22-nm smart codec, contributing to sustained revenue [6][8] - In the high-performance mixed-signal business, customer engagement remained strong, particularly for camera controller products, with ongoing R&D investments in battery and power applications [7][10] - The general market business faced challenges, with a decline in revenue attributed to a strategic shift away from Android and aging products reaching end-of-life [28][30] Market Data and Key Metrics Changes - The company is expanding its footprint in the PC market, with significant progress in ramping shipments of amplifiers and codecs for mainstream PC platforms [8][9] - Interest in new components for AI-enabled PCs is strong, with expectations for revenue growth from these products in the coming years [24][25] - The automotive market is seen as a growth opportunity, with new haptic components announced, although revenue contributions are not yet specified [39][40] Company Strategy and Development Direction - Cirrus Logic's long-term growth strategy focuses on maintaining leadership in smartphone audio, expanding mixed-signal solutions, and leveraging expertise in new markets [5][6] - The company aims to diversify its product portfolio and drive growth in new applications, particularly in PCs and automotive sectors [10][11] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for smartphone components and the potential for growth in the PC and automotive markets [4][39] - The company does not foresee major supply constraints impacting operations or outlook, indicating a stable supply chain management approach [37] - Future revenue from new technologies, such as voice interfaces for AI, is anticipated to materialize in calendar years 2027 and 2028 [24][25] Other Important Information - Cirrus Logic ended the quarter with $1.08 billion in cash and investments, up $185.9 million from the prior quarter, and has no outstanding debt [14][15] - The company utilized $70 million for share repurchases during the quarter, with $344.1 million remaining on its repurchase authorization [15][16] Q&A Session Summary Question: Insights on the revenue beat and guidance for the March quarter - Management noted that the revenue beat was due to being further away from the peak than initially anticipated, with a favorable mix contributing to the results [21] Question: Revenue expectations from voice interface technology - Management indicated that the voice product targeting PCs is expected to generate revenue in 2027 and 2028, with strong interest from OEMs [24] Question: Decline in revenue outside the largest customer - Management explained that the high percentage of revenue from the largest customer was due to a strong product launch, while general market revenue faced headwinds from strategic shifts and aging products [28][30] Question: Guidance on PC revenue opportunities - Management expects PC revenue to roughly double in fiscal 2026, with strong growth momentum anticipated into fiscal 2027 [33] Question: Supply constraints impacting outlook - Management confirmed no current supply constraints, indicating effective capacity management [37] Question: Automotive market revenue contributions - Management did not provide specific revenue targets but highlighted a significant market opportunity in automotive haptics and related technologies [39][40]