Financial Data and Key Metrics Changes - Cirrus Logic reported record revenue of $490 million for Q4 2022, a 67% increase year-over-year, and a full-year revenue of $1.78 billion, up 30% from the previous year [10][12] - Non-GAAP gross profit for Q4 was $259 million, representing a gross margin of 52.9%, which is up 240 basis points year-over-year [11] - Non-GAAP net income for Q4 was $118 million, or $2.01 per share, with full-year net income of $408 million, or $6.90 per share [12] Business Line Data and Key Metrics Changes - The growth in revenue was driven by high-performance mixed-signal content gains in smartphones and sales of fast-charging ICs, as well as audio products in laptops [10][11] - The company maintained its leadership position in smartphone audio and saw growth in laptop revenue compared to the prior year [7] Market Data and Key Metrics Changes - The supply chain environment remains constrained, with demand outstripping supply, particularly due to COVID-19 shutdowns in China [8] - The company anticipates continued strong demand for certain components in smartphones, contributing to expected revenue growth in the upcoming quarter [13] Company Strategy and Development Direction - The company focuses on three strategic pillars: maintaining leadership in smartphone audio, broadening sales of audio components in profitable applications, and leveraging mixed-signal engineering expertise for product diversification [6][7] - Future growth is expected from investments in high-performance mixed-signal areas, including power and charging solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about creating shareholder value through product diversification and long-term growth despite supply chain challenges [8] - The company expects gross margins to normalize around a long-term model of 50% due to shipping inventory built at higher costs [13][14] Other Important Information - The company ended fiscal year 2022 with $444 million in cash and cash equivalents, up $173 million from the prior quarter, and has no debt outstanding [12] - Cirrus Logic repurchased approximately $75 million of its common stock in Q4 and a total of $167.5 million during the full fiscal year [13] Q&A Session Summary Question: Seasonality expectations for the second half - Management noted strong results in the March quarter and guidance for the June quarter, but visibility remains limited due to supply constraints [19] Question: SoundWire technology and its market opportunity - Management discussed the potential of SoundWire technology in laptops, indicating it could lead to new product opportunities in boosted amplifiers and codecs [21][22] Question: Changes in June quarter guidance - Management attributed the higher confidence in June guidance to stronger-than-expected customer demand, despite initial expectations of a demand pause [26] Question: Progress in Android market - Management confirmed good progress in Android, particularly in boosted amplifiers and haptics, but noted ongoing supply constraints [41] Question: Programmability in power products - Management explained that as technology advances, more digital control logic will be integrated into power products, enhancing battery management and charging capabilities [43]
Cirrus Logic(CRUS) - 2022 Q4 - Earnings Call Transcript