Cirrus Logic (CRUS) Conference Summary Company Overview - **Company**: Cirrus Logic (CRUS) - **Date of Conference**: August 12, 2025 - **Speakers**: Jeff Willard (CFO), Kala Birligi (VP of Mixed Signal) Key Industry Insights Smartphone Demand Dynamics - There has been a pull forward in demand for smartphones, impacting the company's fiscal year outlook [4][5] - The increasing share of camera content in total revenue is leading to earlier shipments, affecting seasonality [6][7][8] Growth in Camera Controllers - Cirrus Logic expects continued growth in camera controllers driven by higher attach rates and increased average selling prices (ASPs) [10][11] - The latest generation of camera controllers features a 6x increase in processing capability, enhancing customer value [11][12] Expansion Beyond Smartphones - The company is expanding its High-Performance Mixed Signal (HPMS) content into haptics and power conversion, particularly for AI applications [14][15][16] - The focus is on optimizing power delivery and battery management to support new AI use cases [19][20] PC Market Opportunities - Cirrus Logic has seen significant growth in the PC market, with expectations to double revenue in the coming year [21][22] - The company is leveraging similarities between mobile and PC platforms, particularly in audio and voice solutions [22][23] Competitive Landscape - Cirrus Logic is displacing entrenched incumbents in the PC market by offering superior audio experiences and total cost of ownership advantages [27][30] - The company emphasizes the importance of audio quality in laptops, which has been historically overlooked [22][23] Market Addressability - The addressable market for Cirrus Logic in the PC notebook segment is estimated at approximately $1 billion, focusing on mainstream applications rather than low-end markets [36][37] Automotive Market Entry - Cirrus Logic has a long history in the automotive sector and is re-engaging with new products aimed at enhancing in-cabin experiences [52][53] - The transition to zonal architectures in vehicles presents new opportunities for audio, voice, and haptic technologies [52][54] Financial Performance Gross Margins - The company has been operating above its long-term gross margin target of 49% to 51%, driven by product mix and supply chain cost reductions [40][41] Operating Margins - Cirrus Logic has maintained mid-20s operating margins while balancing investments in R&D for growth [44][45] Strategic Initiatives M&A Opportunities - The company is exploring M&A opportunities to diversify its portfolio and enhance value through synergies [46][47] Customer Concentration - Cirrus Logic aims to diversify away from mobile concentration while continuing to grow in that segment [48][49] Android Market Focus - The company has reduced investments in the Android market, focusing instead on more promising growth areas [50][51] Conclusion Cirrus Logic is strategically positioned to capitalize on growth opportunities in the smartphone, PC, and automotive markets while maintaining strong financial performance and exploring diversification through M&A. The focus on enhancing audio and power management technologies aligns with emerging trends in AI and consumer electronics.

Company Overview - Cirrus Logic was founded in 1984 and is listed on NASDAQ as CRUS[5] - The company's FY25 revenue was $1.90 billion[5] - Cirrus Logic has approximately 4,210 pending and issued patents worldwide[5] Growth Strategy - The company's three-pronged strategy includes maintaining its leadership in smartphone audio, increasing HPMS content in smartphones, and expanding into additional applications and markets[22] - Cirrus Logic is expanding its SAM (Serviceable Available Market) in a vast mixed-signal market, projecting the audio and high-performance mixed-signal market to reach $8.5 billion in 2029, compared to $6.8 billion in 2025[24] - The company is focused on expanding into laptops, tablets, wearables, gaming, and AR/VR, as well as professional audio, automotive, industrial, and imaging end markets[35] - The PC SAM (Serviceable Available Market) is approximately $1.2 billion, comprising ~$440 million in audio SAM and ~$800 million in HPMS SAM[37] Financial Performance - In Q1 FY26, Cirrus Logic's revenue was $407.3 million, with a gross margin of 52.6% and combined R&D/SG&A expenses of $141.6 million[48] - The company's Q2 FY26 guidance projects revenue between $510 million and $570 million, with a gross margin between 51% and 53% and combined R&D/SG&A expenses between $153 million and $159 million[48] - In Q1 FY26, the company's largest customer represented 86% of total revenue[52] - The company generated $1.7 billion of operating cash flow over the last 5 full fiscal years[58]

Company Overview - Cirrus Logic's FY25 revenue was $1.90 billion[5] - The company has a strong IP portfolio with approximately 4,130 pending and issued patents worldwide[5] Growth Strategy - The company's three-pronged strategy includes maintaining leadership in smartphone audio, increasing HPMS content in smartphones, and expanding into additional applications and markets[22] - The company is leveraging mixed-signal expertise to address new opportunities, with a significant investment in high-performance mixed-signal technologies[33] - The company is expanding content beyond smartphones, focusing on laptops, tablets, wearables, gaming, and AR/VR[37] Market Opportunity - The audio market SAM is projected to grow from $2.6 billion in 2023 to $3.3 billion in 2028[24] - The high-performance mixed-signal (HPMS) market SAM is expected to increase from $1.4 billion in 2023 to $5.7 billion in 2028[24] - HPMS SAM in smartphones is projected to grow from $0.8 billion in 2023 to $3.3 billion in 2028[27] Financial Performance - Q4 FY25 revenue was $424.5 million with a gross margin of 53.4%[52] - Combined R&D and SG&A expenses for Q4 FY25 were $140.8 million[52] - The company generated $1.7 billion of operating cash flow over the last 5 full fiscal years[65]