Cirrus Logic(US:CRUS)2021-04-30 00:50Financial Data and Key Metrics Changes - Cirrus Logic reported FY 2021 revenue of $1.37 billion, representing a 7% year-on-year increase [9] - Non-GAAP EPS for FY 2021 was $4.58, up 27% year-on-year, driven by content gains and higher unit volumes [9] - The company experienced strong demand but faced capacity constraints that impacted revenue in the last quarter and outlook for the first quarter of FY 2022 [9][10] Business Line Data and Key Metrics Changes - The high-performance mixed-signal category saw a 55% year-on-year revenue growth, attributed to the introduction of a new camera controller [8] - Audio solutions in smartphones continued to penetrate the market, with growth expected in non-smartphone categories as well [7][22] Market Data and Key Metrics Changes - Demand remains strong in the semiconductor industry, with some areas experiencing excessive supply, particularly in older products [9] - The Android market showed signs of recovery, with expectations for strong growth in FY 2022 [24] Company Strategy and Development Direction - Cirrus Logic is focusing on product diversification in high-performance mixed-signal areas as a key pillar of its strategic vision [8] - The company is excited about new technologies and R&D investments aimed at enhancing its audio and mixed-signal solutions [10][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating revenue growth in FY 2022 due to a strong pipeline of new products [10] - The company acknowledged ongoing capacity constraints but emphasized that they would not impede the ability to meet ramp schedules [29] Other Important Information - The company is participating in several upcoming conferences hosted by Cowen, Bank of America, and Stifel [47] - Management refrained from discussing specifics about their largest customer due to company policy [10] Q&A Session Summary Question: Content expansion in premium devices - Management highlighted excitement about the power conversion and control IC, expecting a healthy attach rate and significant ASP value [12][13] Question: March quarter results and guidance - Management clarified that supply constraints did not impede service to their largest customers, but affected general market customers [19] Question: Growth and profitability in segments - Management indicated that gross margins are consistent across new product segments, with some exceptions for legacy products [26] Question: Pricing environment and ASPs - Management noted normal year-on-year ASP declines for older products, with some pricing pressure due to capacity constraints [36][37] Question: Opportunities from the pandemic - Management observed increased demand for higher quality audio in laptops and tablets, driven by the rise in remote work and video conferencing [39][40] Question: Transition in product offerings - Management confirmed that the new power conversion and control IC is not replacing any existing products, indicating a new market opportunity [32][45]