Cirrus Logic : Presentation Q4FY2025

Published: 2025-05-07 04:13:51 ET CRUS

Published on 05/07/2025 at 04:13

Investor Relations Update

As of May 6, 2025

Industry and Market Data

In this presentation, we rely on and refer to information and statistics regarding the sectors in which we compete and other industry data. We obtain statistics form third-party sources, including reports by market research firms. Although we believe these sources are reliable, they have not been independently verified. We have supplemented this information where necessary with our own internal estimates, taking into account publicly available information about other industry participants and our management's best view regarding information that is not publicly available. Such information is inherently subject to uncertainties by its nature, and actual results may differ materially from the assumptions and circumstances reflected in this information. Accordingly, you are cautioned not to place undue reliance on such information.

Use of non-GAAP Financial Information

To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information in this presentation, including operating profit, and operating expenses. Non-GAAP financial information is not meant as a substitute for GAAP results but is included because management uses such information to evaluate and manage the company and believes such information is useful to our investors for informational and comparative purposes. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Cirrus Logic at a Glance

PROFILE

PRODUCTS

CORE STRENGTHS

Founded in 1984

Smart codecs

Analog and digital-signal processing

Listed on NASDAQ: CRUS

Amplifiers

Engineering execution

FY25 revenue: $1.90B

Haptics & sensing solutions

World-class customer support and application expertise

Headquarters in Austin, Texas

Camera controllers

Supply chain management and quality

1,660 employees worldwide

Battery & power ICs

Extensive IP portfolio (~4,130 pending & issued patents worldwide)

Strategy for Growth Through Product Diversification

Audio

Leverage core strengths and proven track record to fuel product diversification

Low-Power

Leadership

Outstanding

Execution

Extensive Intellectual

Property Portfolio

MARKETS

Advanced Mixed-Signal Design

Low-Latency Processing

STRATEGY

STRENGTHS

Proven Operating Model

Expand with more content & diversify

product portfolio

Design

best-in-class custom,

semi-custom & general market products

Leverage

best-in-class IP

Develop meaningful engineering

relationships

Target

fast-growing markets

Engage tier-one market leaders

SOLID OPERATING MARGINS

STRONG CASH FLOW

LEADING SUPPLIER OF LOW-POWER, HIGH-PERFORMANCE, MIXED-SIGNAL ICS

Award-Winning Corporate Culture

Helps attract and retain a talented workforce, including highly-skilled mixed-signal engineers

Fosters long-tenured employees who maintain relationships and continuity with customers

Plays a key role in motivating employees and fueling a culture of innovation

Technology & Market Overview

Cirrus Logic Growth Strategy

Laptops Tablets AR/VR

Wearables

Other

Smartphones

Audio

Amplifiers,

Smart Codecs

High-Performance Mixed-Signal

Camera Controllers,

Haptics & Sensing Solutions, Battery & Power ICs

THREE-PRONGED STRATEGY:

Maintaining our leadership position in smartphone audio

Increasing HPMS content in smartphones

Leveraging our strength in audio and HPMS to expand into additional applications and markets with new and existing components

Expanding SAM in a Vast Mixed-Signal Market

$4.0B 2023

Audio

$2.6B

High-Performance Mixed-Signal

$9.0B 2028

Audio

$3.3B

High-Performance Mixed-Signal

Audio: smart codecs, amplifiers, ADCs, DACs, and DSPs High-Performance Mixed-Signal: battery and power ICs, camera controllers, and haptic and sensing solutions

Source: Databeans, IC insights, and company estimates as of May 7, 2024

Growing High-Performance Mixed-Signal SAM

$1.4B 2023

Smartphones

$0.8B

Other Devices*

$0.6B

$5.7B 2028

Smartphones

$3.3B

Other Devices*

$2.4B

*Other devices includes laptops, tablets, wearables, and AR/VR Source: Databeans, IC insights, and company estimates as of May 7, 2024

High-Performance Mixed-Signal Capabilities

Power / Battery Management

Switched-Capacitor Fast Charging

Multi-Phase Boost

Low-Power Sensing AFE

Closed-Loop Control Algorithms

Amplifiers

High-Performance ADC / DAC

Low-Power MCU / DSP

LEVERAGING MIXED-SIGNAL EXPERTISE TO ADDRESS NEW OPPORTUNITIES

Investing meaningfully in intellectual property and new technologies on advanced mixed-signal nodes

Largest area of investment is in high-performance mixed-signal, including battery and power ICs

High-performance mixed-signal patent filings represented over two-thirds of Cirrus Logic's total new patent filings in calendar year 2024

CIRRUS LOGIC CORE INTELLECTUAL PROPERTY

Proven Track Record of Content Expansion in Smartphones

amplifier smart codec

haptic driver amplifiers smart codec

camera controllers

haptic driver amplifiers smart codec

power IC

camera controllers

haptic driver amplifiers smart codec

power IC

camera controllers

haptic driver

amplifiers smart codec

Continued investment in new technology areas expected to drive additional content opportunities

2012 2015 2020 2021

2023

Future

Note: Represents total number of components in a high-end flagship smartphone

Broadening Content Beyond Smartphones

EXPANDING INTO OTHER APPLICATIONS WITH EXISTING PORTFOLIO OF AMPLIFIERS, HAPTICS AND SMART CODECS:

Focused on laptops, tablets, wearables, gaming, and AR/VR

Growth driven by content expansion and increased penetration

Investing in next-generation technology to enhance performance and improve power and processing capabilities

PC SAM

~$1B*

Audio SAM ~$435M

HPMS SAM ~$580M

codec (1 attach rate)

haptic drivers (1-2 attach rate)

amplifiers (2-6 attach rate)

power ICs (1-4 attach rate)

Meaningful Opportunity to Capture More Laptop SAM

STRATEGY TO CONVERT SAM TO REVENUE:

Increase value per device

Expand footprint across mainstream, premium, and high-end laptops

Develop new products to address a broader range of feature and cost requirements

*PC SAM for 2028 Source: Databeans, IC insights, and company estimates as of May 7, 2024

Product Overview

Audio Products

AMPLIFIERS

Deliver louder and higher-quality audio experience from micro speakers

Ultra-low power consumption allows for extended playback

Advanced algorithms protect speakers and minimize impact on the battery without sacrificing audio performance

SMART CODECS

High precision, low-latency and ultra-low power data conversion coupled with software and algorithms to improve performance

Embedded low power processing

Hybrid and adaptive ANC

Voice capture/activation

Custom and 3rd party algorithms supported

High-Performance Mixed-Signal Products

HAPTICS & SENSING

Ultra-low latency, closed-loop boosted driver delivers highly responsive and consistent haptic feedback

Custom tactile feedback enables new user experiences

BATTERY & POWER ICS

Advanced switched-capacitor point of load converters, enable more battery life and sleeker designs given efficiency advantage and smaller solution footprint versus legacy solutions

Monolithic, fast-charging technology delivers efficiency at high power, enabling faster charging with less power loss than legacy DC/DC chargers

Custom high-precision, ultra-low power data conversion that measures and monitors different aspects of the system to improve battery health, longevity, and performance

CAMERA CONTROLLERS

Custom high-precision, low-latency component with an integrated processor for automatic focus and optical image stabilization, significantly improving results

Financials

Committed to Driving Shareholder Value

DRIVING LONG-TERM REVENUE GROWTH

TARGETING LONG-TERM OPERATING PROFIT EXPANSION

CONTINUING TO GENERATE STRONG CASH FLOW

Financial Results

R&D / SG&A

$424.5M 53.4%

REVENUE GROSS MARGIN COMBINED

$140.8M

(includes $19.1M in stock-based comp and

$1.6M in amortization of acquisition intangibles)

REVENUE GROSS MARGIN COMBINED

R&D / SG&A

$1.90B 52.5%

$585.7M

(includes $82.8M in stock-based comp and

$7.1M in amortization of acquisition intangibles)

*As of May 6, 2025

Outlook

REVENUE GROSS MARGIN COMBINED

R&D / SG&A

$330M - $390M 51% - 53%

$141M - $147M

(includes $20M in stock-based comp and $2M in amortization of acquisition intangibles)

*As of May 6, 2025

Revenue Q4 FY24 to Q1 FY26 ($M)

$542

$556

38%

$424

$372

$374

42%

$360*

40%

39%

41%

58%

62%

61%

59%

60%

600

500

400

300

200

100

Q4/FY24 Q1/FY25 Q2/FY25 Q3/FY25 Q4/FY25 Q1/FY26

In Q4 FY25, our largest customer represented 88% of total revenue

*Midpoint of guidance as of May 6, 2025

Gross Margin and Operating Margin Q4 FY24 to Q4 FY25

GROSS MARGIN (TTM) OPERATING MARGIN (TTM)

51.2% 51.3%

51.5% 51.6% 52.2% 52.3% 52.5% 52.6%

25.0%

25.6%

26.0%

25.6%

26.5%

20.9%

21.6%

19.2%

20.2%

20.4%

Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25

Note: Supplemental GAAP to non-GAAP information available on slide 26 and at https://investor.cirrus.com

TTM: Trailing Twelve Months

Strong and Sustainable Cash Generation

CASH GENERATION

CAPITAL ALLOCATION PRIORITIES

BUYBACK

Total cash and investments at the end of Q4 FY25 was $835M, up from $817M the prior quarter

Cash from operations for the quarter was $130M

Generated $1.7B of operating cash flow over last 5 full fiscal years

Continuing to invest in R&D to fuel organic growth

Focusing on M&A opportunities that strengthen our technology portfolio or broaden end-market exposure

Returning capital to shareholders through share repurchases

In Q4, we utilized $100.0M to repurchase 927,248 shares at an average price of $107.85. In FY25, we used $261.0M to repurchase ~2.3M shares at an average price of $112.33.

At the end of Q4, we had $54.1M remaining in our July 2022 share repurchase authorization. In March, the Board of Directors authorized the repurchase of an additional $500M of Cirrus Logic common stock.

Subsequent to Q4 FY25, the Company utilized $25.0M to repurchase 296,689 shares at an average price of

$84.26 under a Rule 10b5-1 trading plan.

GAAP and Non-GAAP Financial Information

SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL INFORMATION

(in thousands; unaudited)

(not prepared in accordance with GAAP)

Trailing 12 Months

Mar. 29,

Dec. 28,

Sep. 28,

Jun. 24,

Mar. 30,

2025

2024

Q4'25

Q3'25

Q2'25

Q1'25

Q4'24

GAAP Gross Profit

996,038

961,927

981,604

945,610

916,072

GAAP Gross Margin

53 %

52 %

51 %

Non-GAAP Gross Profit

997,370

963,261

982,982

946,994

917,475

Non-GAAP Gross Margin

53 %

52 %

51 %

GAAP Operating Profit

410,359

376,789

398,568

372,465

343,466

GAAP Operating Margin

22 %

20 %

21 %

20 %

19 %

Non-GAAP Operating Profit

503,315

472,738

496,065

472,410

447,086

Non-GAAP Operating Margin

27 %

26 %

25 %

Revenue

1,896,077

1,843,448

1,906,694

1,845,900

1,788,890

Disclaimer

Cirrus Logic Inc. published this content on May 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 07:48 UTC.