Cirrus Logic(US:CRUS)2024-05-08 01:15Financial Data and Key Metrics Changes - Cirrus Logic reported Q4 revenue of $378.1 million, exceeding guidance due to strong smartphone demand [6] - Full fiscal year 2024 revenue was $1.79 billion, down 6% year-over-year, attributed to reduced shipments in non-smartphone applications [7][14] - Non-GAAP earnings per share for Q4 was $1.24, and for the full year, it was $6.59, reflecting a $0.17 increase year-over-year [17][20] Business Line Data and Key Metrics Changes - Non-GAAP gross profit for Q4 was $193 million, with a gross margin of 51.9%, driven by supply chain efficiencies [15] - Non-GAAP operating income for Q4 was $76.5 million, representing 20.6% of revenue [16] - Full fiscal year 2024 non-GAAP operating income was $447.1 million, with an operating margin of 25% [17] Market Data and Key Metrics Changes - The company experienced a 40% sequential decline in revenue for Q4, primarily due to reduced smartphone volumes [14] - Inventory at the end of Q4 was $227.2 million, with an increase in days of inventory to approximately 116 days [19] Company Strategy and Development Direction - Cirrus Logic's growth strategy focuses on maintaining leadership in smartphone audio, expanding into high-performance mixed-signal functionality, and penetrating new markets [8] - The company has made significant investments in camera controller products and power-related technologies, with expectations for future growth in laptops [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the laptop market, anticipating significant growth opportunities with new product launches [11][12] - The company expects Q1 fiscal 2025 revenue to range from $290 million to $350 million, reflecting seasonal weakness [21] Other Important Information - Cirrus Logic returned $186 million to shareholders through share repurchases during the fiscal year [13] - The company ended fiscal 2024 with nearly $700 million in cash and cash equivalents, maintaining a strong balance sheet [18] Q&A Session Summary Question: Gross margin outlook with new product introductions - Management expects gross margin to be slightly below the midpoint in the current quarter due to ramp costs but maintains a long-term gross margin model of 49% to 51% [27][28] Question: Early progress in the laptop market - Management is pleased with early progress in the laptop market, seeing a significant opportunity with a projected serviceable available market of over $1 billion [30] Question: Growth expectations for non-top customer revenue - Management indicated that non-top customer revenue could grow in the low tens of millions, with positive momentum in the Android and PC spaces [34][35] Question: Impact of generative AI on design and customer base - Management sees opportunities in generative AI, particularly in voice interfaces, and believes it can enhance customer base participation [41][42] Question: Expectations for smartphone market and content growth - Management is cautious about unit assumptions and does not provide specific guidance for the full year, focusing instead on current quarter guidance [52][53]