As I interact with Camera Control, note how zoom is disabled in this new configuration. Let’s change the control. I’ll swipe out on the overlay, and now I can checkout my picker in the list.I’ll scroll over to it and press lightly to display its options. Now I can select each effect in turn, and watch as they play in the preview. Rock on. ...

Core Viewpoint - Cirrus Logic's stock price has increased by 23% recently due to favorable tariff developments for its largest customer, Apple, which accounts for 89% of its revenue [1][2][3] Group 1: Company Performance - Cirrus Logic's revenue for fiscal 2025 grew by 6% year over year, while adjusted earnings increased by 14% to $7.54 per share [6] - Despite a slight decline in Apple's iPhone shipments in 2024, Cirrus Logic managed to gain more business from Apple, including supplying power management modules [7][8] - In Q1 of the current year, Apple's smartphone shipments rose by 10% year over year, significantly outpacing the overall smartphone market growth of 1.5% [9] Group 2: Future Growth Potential - The sales of AI-capable smartphones and PCs are projected to grow at a compound annual growth rate of nearly 35% through 2029, indicating a positive outlook for Cirrus Logic [9][11] - Cirrus Logic's sales in Q4 of fiscal 2025 increased by 14% year over year, with earnings growing at a stronger pace of 34% [10] Group 3: Valuation and Investment Opportunity - Cirrus Logic is currently trading at less than 18 times trailing earnings, making it an attractive investment given its recent earnings growth [12] - If Cirrus achieves expected earnings next fiscal year and trades at 29 times earnings, its stock price could potentially reach $221, more than double its current price [14]

Financial Data and Key Metrics Changes - Cirrus Logic reported Q4 revenue of $424.5 million, exceeding guidance, and full fiscal year 2025 revenue of $1.9 billion, up 6% year over year, driven by new generation products and higher smartphone volumes [7][17] - Non-GAAP gross profit for Q4 was $227.1 million with a gross margin of 53.5%, while for the full year, non-GAAP gross profit was $997.4 million with a gross margin of 52.6% [17][18] - Non-GAAP net income for Q4 was $90.6 million, or $1.67 per share, and for the full year, it was $416.6 million, resulting in record earnings per share of $7.54, up from $6.59 in the previous year [20][21] Business Line Data and Key Metrics Changes - The flagship smartphone audio business saw the introduction of two new generation products, a boosted amplifier and a smart codec, which are expected to contribute to revenue in the coming years [11][12] - The camera controller product line experienced increased unit shipments, indicating success in this area [12][14] - Investments in high-performance mixed signal areas are expected to enhance customer products, with a focus on advanced battery technologies [12][13] Market Data and Key Metrics Changes - The company reported a customer concentration figure of 89% for its largest customer in fiscal year 2025 [30] - In the laptop market, Cirrus Logic expects to double its revenue from fiscal year 2025, with significant growth in design activity and SKU shipments anticipated [34][35] - The automotive market is viewed as a long-term opportunity, with potential for significant revenue growth, although the timeline for substantial revenue impact remains uncertain [42][43] Company Strategy and Development Direction - Cirrus Logic's long-term growth strategy focuses on maintaining leadership in smartphone audio, expanding mixed signal functionality, and leveraging expertise to grow in new markets [10] - The company aims to diversify its product portfolio and expand its addressable market, with ongoing investments in R&D for new applications [15][26] - The strategy includes geographic diversification of the supply chain to mitigate potential trade-related challenges [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic macroeconomic environment and potential impacts of tariffs, emphasizing careful monitoring and proactive supply chain management [9][25] - The outlook for Q1 fiscal year 2026 anticipates revenue between $330 million and $390 million, reflecting a 15% sequential decline and a 4% year-over-year decrease at the midpoint [25][26] - Management expressed confidence in the company's ability to continue delivering solid financial results while executing on strategic initiatives [26][65] Other Important Information - Cirrus Logic returned $261 million to shareholders through share repurchases in fiscal year 2025, with an additional $500 million authorized for future buybacks [8][24] - The company ended fiscal year 2025 with nearly $835 million in cash and investments, maintaining a strong balance sheet with no debt [21][22] Q&A Session Summary Question: What percentage of revenue did the largest customer represent for fiscal year 2025? - The largest customer represented 89% of revenue for fiscal year 2025, with limited pull forwards observed in Q4 due to anticipated tariffs [30][31] Question: What is the progress in the PC-related traction? - The company achieved low tens of millions in revenue from the laptop market in fiscal year 2025 and expects to double that in fiscal year 2026, with significant design activity growth [34][35] Question: Is there an expectation for HPMS to surpass audio? - Management sees this happening over time but has not set a specific timeframe, emphasizing the growth opportunities in HPMS [38][39] Question: What is the potential for the automotive market? - The automotive market presents a long-term opportunity, potentially adding nearly $1 billion to the serviceable addressable market, though significant revenue impact may take time [42][43] Question: What are the ambitions for general market products? - There is potential for general market products to represent 10% of revenues in the long run, with ongoing efforts to leverage IP and expand this segment [59][62]

Financial Data and Key Metrics Changes - Cirrus Logic reported Q4 revenue of $424.5 million, exceeding guidance, and full fiscal year 2025 revenue of $1.9 billion, up 6% year over year driven by new products and higher smartphone volumes [7][17] - Non-GAAP gross profit for Q4 was $227.1 million with a gross margin of 53.5%, while for the full year, non-GAAP gross profit was $997.4 million with a gross margin of 52.6% [17][18] - Non-GAAP net income for Q4 was $90.6 million, or $1.67 per share, and for the full year, it was $416.6 million, resulting in record earnings per share of $7.54, up from $6.59 in the previous year [20][21] Business Line Data and Key Metrics Changes - The flagship smartphone audio business saw the introduction of new generation products, including a boosted amplifier and a smart codec, which are expected to contribute to revenue in the coming years [10][11] - The camera controller product line experienced increased unit shipments, indicating growth in this segment [11][13] - Investments in high-performance mixed signal areas are expected to enhance customer products and contribute to future profitability [12][14] Market Data and Key Metrics Changes - The company noted a strong performance in the smartphone market, with higher unit volumes contributing to revenue growth [7][17] - The laptop market is anticipated to double revenue in fiscal year 2026, with significant design wins and increased engagement with PC OEMs [34][36] - The automotive market is viewed as a long-term opportunity, with potential for significant revenue growth in the coming years [43] Company Strategy and Development Direction - Cirrus Logic's long-term growth strategy focuses on maintaining leadership in smartphone audio, expanding mixed signal functionality, and leveraging expertise to enter new markets [9] - The company is actively investing in geographic diversification of its supply chain to mitigate potential trade-related challenges [8] - Continued investment in R&D is aimed at product diversification and expanding revenue opportunities [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment and potential impacts of tariffs, indicating close monitoring of developments [8][24] - The outlook for Q1 fiscal year 2026 anticipates revenue between $330 million and $390 million, reflecting a sequential decline but a slight year-over-year decrease [25][26] - Management emphasized the importance of ongoing investments in key areas to drive shareholder value [26] Other Important Information - The company returned $261 million to shareholders through share repurchases during the fiscal year, marking a record for Cirrus Logic [7][23] - The balance sheet remains strong with nearly $835 million in cash and investments, and no debt outstanding [21] Q&A Session Summary Question: What percentage of revenue did the largest customer represent for fiscal year 2025? - The largest customer represented 89% of revenue for the full year, with limited pull forwards observed in Q4 due to anticipated tariffs [30][31] Question: What is the progress in the PC-related traction? - The company achieved low tens of millions in revenue from the laptop space in fiscal year 2025 and expects to double that in fiscal year 2026 [34][36] Question: Is HPMS expected to surpass audio? - Management believes this will happen over time but has not set a specific timeframe, emphasizing growth opportunities in both areas [39][40] Question: What is the potential for the automotive market? - The automotive market is seen as a significant long-term opportunity, potentially representing $1 billion in additional serviceable available market [43] Question: What is the outlook for camera controller content? - There is considerable opportunity for growth in camera controllers, with ongoing development and increased processing capabilities expected to drive future value [48] Question: What are the ambitions for general market products? - The company aims to leverage its IP to grow the general market business, which could potentially represent 10% of revenues in the long run [60][62]