Cirrus Logic (NasdaqGS:CRUS) FY Conference Transcript

Cirrus Logic FY Conference Summary Company Overview - Company: Cirrus Logic (NasdaqGS:CRUS) - Date of Conference: December 11, 2025 Key Industry Insights - AI Spending Trend: There is a significant trend in AI spending, particularly in data centers, with over $3 trillion announced for data center investments. Cirrus Logic sees potential in the edge computing space as AI applications expand beyond data centers [3][4][5] - Automotive Sector: Cirrus Logic is entering the automotive haptics market, addressing consumer dissatisfaction with current automotive interfaces. The company aims to enhance user experience through advanced haptic feedback technology [8][10][13] - PC Market Dynamics: The transition from legacy audio interfaces (HDA) to new architectures (SDCA) is expected to drive growth in the PC segment. Cirrus Logic estimates that 15%-20% of laptops currently use SDCA, with a target of nearly 100% adoption in the next few years [39][41][89] Core Company Strategies - Power Efficiency: Cirrus Logic focuses on creating power-efficient chips to support intensive computing at the edge, which is crucial for AI applications [4][5] - Voice Technology: The company has a strong portfolio in voice-enabling IP, positioning itself to capitalize on the growing trend of voice interfaces in AI devices [6][92] - Automotive Haptics: The company has announced automotive haptics products aimed at improving user interaction in vehicles, which is currently lagging behind consumer electronics [10][13][21] Financial Outlook - Revenue Growth: Cirrus Logic anticipates doubling its revenue from the PC segment in fiscal 2026, starting from low tens of millions in fiscal 2025 [37][39] - Mainstream PC Revenue: By fiscal 2026, approximately 50% of Cirrus Logic's PC-related revenue is expected to come from mainstream devices priced between $800 and $1,000, marking a significant growth trajectory [89] Product Development and Innovation - Camera Controllers: The company has seen a sixfold increase in processing capabilities for camera controllers over five years, indicating ongoing innovation in this area [70][74] - Battery Technology: Cirrus Logic is developing differentiated IP around battery technology to enhance system performance and power efficiency [81][82] M&A and Capital Allocation - M&A Strategy: Cirrus Logic is open to pursuing acquisitions that can accelerate growth in non-phone segments, leveraging its strong IP assets [98] - Capital Return Strategy: The company maintains a consistent capital allocation strategy, prioritizing organic growth opportunities, followed by potential acquisitions, and then share buybacks [101][103] Conclusion - Future Focus: Investors should pay attention to Cirrus Logic's growth in the PC and automotive markets, as well as its ongoing efforts to expand content at its largest customer. The transition to SDCA in laptops and advancements in AI-enabled devices are expected to be significant growth drivers [105][107]