Cirrus Logic (CRUS) 30 Apr 212021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic's Fourth Quarter and Full Fiscal Year 2021 Financial Results Q&A Session. At this time, all participants are in a listen-only mode. After a brief statement, we will open up the call for questions from analysts. [Operator Instructions] I would now like to turn the conference call over to Mr. Officer. Financial Chief Case, Thurman Mr. Case, you begin. may

Thank and good afternoon. you

information, financial is differ other Cirrus and Heffernan, of the the including and current release Logic's Joining actual announced latest Relations risk during as XX-K to made the filings projections from statements new along Q&A providing Director to this could me p.m. website, or will on Executive actual full information Form most revise cause results, email shareholder to investor.cirrus.com. analysts company Forsyth, and the materially or The call today's otherwise. discussion well our company, and we or Cirrus By results projections. well investor@cirrus.com. session, cause letter the the at issued Today, reconciliation Chelsea whether the projections XX-Q, of we a available on fiscal comparable Chief disclaims a statements, year with any from GAAP to covering as expressly fourth other note Commission approximately factors This Logic refer press forward-looking from financial to may any and subject for the may financial that to this John via information, corporate of expectations. Exchange as with and that forward-looking update make differ the available today, at uncertainties results Officer; release, which shareholder Please non-GAAP as Investor risks the session are result of obligation letter are Please Relations. the at developments earnings and for our additional Securities XXXX this directly webcast press results the the website call of all submitted X:XX are quarter questions questions our Eastern. and us discussing that our company's feature Investor at to that materially as

I'll Now, John. over call it turn to

their key year-on-year mixed-signal past of they to category. XX% challenges, I the Thurman and call gained We We camera feel The a which for progress you, Thank it's the extraordinary strategic programs quarters current important in joining year both customers' we've future thank first the we our exciting end many also products believe of product company's employees past products our the high-performance our in have solutions on for high-performance our Amid the area, Logic ahead. audio pillar dedication, the contribute supporting introduction initiatives innovative And its penetration excellent for many factors of that diversification that beyond will pleased In to brought Cirrus important our technology growth today. over driving in with success Cirrus with growth of a to revenue years success. in future. shown continued to and for moment central recognized smartphones. particularly they've done key be our as track increase market domains, where to the our new made customers we audio everyone and have everything to vision take thank to in we believe to contributed momentum range in you controller the and will made the in on and haptic keeping leadership. we strategic expanding product We're progress the the highlighted categories, especially areas is year. with of smartphones. that mixed-signal many, solutions development

parts of did on first Today, impact excessive quarter, in the and the year-on-year. they billion, we and some supply in that new not constraints quarter that with And technologies possible. business our range new outlook excited of about the affected demand up, the R&D still investments, XX% customers We're gains areas closely industry, for excessive content by Like higher our $X.XX we're meaningfully period. FY as older FY is revenue non-GAAP typically solutions. we largely cases in end and capacity demand category. our last and growth of FY year-on-year, to our of well With factors, have delivered in the partners revenue business, strong been products high-performance In experience months, to devices, to demand of many mixed-signal across based added supply including supply. rapidly largest our have to X% we revenue up these we've the our experiencing parts results. driven $X.XX coming strengthen compelling will now the we and extremely as have semiconductor of And and meet as of some as of on for on accelerate XXXX. mixed-signal our And constraint And pipeline Turning of important XXXX a while the the business, high-performance expect most XXXX. in in our to working unit audio coming content new audio during this in our products Logic team some our volumes. year. roadmap see further EPS Cirrus shipping making chain begin supply

like begin we we in intense relationship. policy, our note specifics customer discuss Q&A, with business accordance largest while about understand always we was I'd also the to ready take not now do related our to Operator, we're Before our questions. that interest there to

the from first Ramsay Please ahead. our And of Instructions] Matt [Operator comes Cowen. go line of question

is open. line Your

the light much. appropriate John, afternoon, it's in action tonight I the [ph], question. guys. think results of of stock I ask very -- and to the Good some Thanks

content ton about XX-nanometer domain those both of us a a about future ASPs, and given -- programs this codec the could expectations things, all that on power premium expansion terms the of on changed talked the you have of products. I guys and about work And You questions could the know upcoming expected bit in you in to you've give in that been those content any for just can't extent doing devices, just of also, Thanks. you might've but in a for can fall, openly us if visibility lots details of those from quarter you penetration maybe have ago. you update talk maybe

products, Thanks will are things of question, you disclose obviously, some most details absolutely Yes, for we excited about about don't about. the I, that the Matt. but stress asking are we customers'

a further were we So, I provide little little do more the want one road as along than ago. are a to we color, quarter

power in talked we've and very about, an another control IC that. the expansion It's area conversion into excited referring mixed-signal Specifically for that you're that us. high-performance we're part by to again

that a than And its about But because pretty the previously say there's for gate. in it -- have compelling still meaningfully straight ASP healthy that rate we're highest an the trend more I going excited than I of we X -- early of And of we previously have obviously also a We think We as state, it's attach said one. case said terms, value That to which the we're in that. very the loop it's rate out controller. believe attach towards closed was year phone. natural I've think. device will every believe in kind said beam of we to

value about to So, best think think of the indicatively, that as being $X. of I it's

ready applications again, talked about we're don't really we product silicon with progress that asked about deeply a vehicle being we've that about yet. seeing our on we made also were for see We engaged excited XX-nanometer happy multiple about. -- there. with there You have to roadmap But really we technology and good do are I really previously and that customers. talk

in either digital analog, XX-nanometer processing, that would and/or close to and invest more make is As power pack radically reason a more reminder, to the to you efficient. smaller something in is the

and that see IP So, across investment products. categories we can different device for multiple applications

some to particular alluded that market say we're today. routes obviously that to have nothing specific we've working but on to more previously, We

it. the sensitivity and Thanks. Got also I color John. Thanks, appreciate the it. on

March ask For my I quarter. to follow-up results question, for wanted about printed the the Thurman,

the last can from us outside quarter see always little if that were giving that that a results most night. sold what the realized had January, quarter I the for think would into that and units had transitional company and the through. over concerns guidance you phones in that the devices that calibrate versus their March, And guide March calls your to of customer largest or their other the I around my right. in been it's would support the had to you the from showed they the shipped I've bit darts have as you think in follow -- accordingly inbox guys if you throwing and the imagined gotten shipped But and seasonally in down. my is tonight, understand we quarter back -- December able when upside June model of print, I in have given

So, you could you results. cetera, supply March mentioned Thanks. then, And if March about other that color thinking factors were guys was us constraints, there there quarter give maybe that you quarter. how some with the the about et might've any affected

that. quickly got. what Because recognize loop that, We peers with closed scheduling of out what spoke drawing possibility the at sync the customer our thoughts and the we module controller with the on on just that's time about straight talked and ships. line of revenue a couple particular, of the little time just ship bit I'll between things a the phase maybe on. versus customers in that a so the last that assembly put Matt, In a little about chime difficulty versus I or content of

we're visible now. seeing That's that. think pretty I

all our of that largest may of think to XX% at that's our large success for you some lot possibility obviously were feeding product I the quarter, I'll We've on for year-on-year. up there the -- and we've a so time the And since. clarify. at able content. had. been of serve our In been We the from our look you back March If least customer we customers this, think, alluding took that customers I QX, to -- demand be

Thurman, add Please constraints That's color other really some impeded haven't additional upside our our content any to in grab have -- or business. ahead. supply the just ability of go there. you if want affected moral us that. areas to So, you this of -- to

service in noted, were the factors we we to again, our we were most really -- the in of our -- none we customers, those we for results of of general market able quarter. constrained that as on were had some largest fulfilled also, the and our quarter. Well, but that But didn't customers

Curtis from go ahead. line question next Barclays. of Please Blayne Our comes of the

is line Your open.

you kind of answers You easy with growth just segment. chip. I'm DAC it's the look kind that thought audio from coming power just the that around curious how of assuming segment, but reporting rates history, these products unit the year-over-year, change numbers really new your these about quarter-to-quarter, flat seeing -- this growth process But and think beyond the forward? when that, your first the do segment at the you we're guess I kind going of around time

The in in back opportunity is category. audio. we got growth being about mixed-signal great eliminate in to rates in think primary to our footprint what You're the Android non-smartphone growth absolutely sectors, The now two going and opportunities the of strategic and high-performance right, future high-precision with be Blaine. line we areas about we for rate growth we expansion we've in strategic the see that higher. -- of really is The that that then in the categories. talked But do to -- I've growth mixed-signal the we've there other that plan high the said data where going anticipate -- around growth part thinking believe

mix. And so, a see of that revenue our as you'd time, over portion logic

the Gotcha. obviously in business ask, you kind your that it mentioned and your how June? now. then March I I world forward, to to for and but just into letters, quarter perspective back just in harder March out as Android in going you the But analyze in to a and positive think want turned it’s of performance outlook

obviously, story smart the disappearing. with our from Android, in we XXXX been in there broadly content headwind has think I were -- coming codec

slack So, the part during today, make up we've had this really room our calendar of accelerated got there. Android And key in it up but -- Android the think from an at then terms, probably least In in we sets least anybody year. last customers, [ph]. are calendar as of strong was pretty I would at we seen first XXXX which some most year, to us looks FY momentum being for where like as

ahead. the Stifel. line Please Svanberg from next comes go of question of And our Tore

open. is line Your

Yes. Thank you.

question a on the segments, margin some differential but the there new segments? Just what the profitability? gross you the of between growth, about about talked Is

which consistent margin you so some product. one we in high-performance typically profile, new in had in Broadly, we've needle are very were not there obvious the whether in high really that products they yet, There the to but mixed-signal or that introduced that no. volume, mentioned two low are they in The margin, exceptions print, high-performance around. that audio gross to don't do small sit may have legacy thought they're move have mixed-signal, really products which or

So, of corporate would margin model. broadly, gross consistent those the across both categories, the with be

sort the be Very before in increase about capacity, able your just we of June days. still do inventory tight, ramp to into you'll you half but think second the comes good. were think no? to when the And equilibrium as it's back or it quarter, said that I'm you wondering, you

the But constraints a the not can will as lot that it's capacity of back and to on -- process, And meet schedules not -- constraints products to we're seeing No. that we how our it we our year. be where or be that actually to seeing to still at flow going ability upside we we capacity can. that. will is -- it. But think beyond. meet continuing XXXX but may -- really We FY any and are our actually of -- across ramp we to and equilibrium, of the to what we will affect the the build far now have What -- fact Again, that. strong at not as work that able of even we that's demand doing all through or we're find we're the half look may likely try possibly

the from SIG. ahead. Our [Operator Christopher comes Rolland next question of Please of Instructions] line go

open. is line Your

the PMIC well. Thanks Around timing maybe guys. for question. in the the Hey, as half and back

the can a can order of these -- are part? preassembly timing an part be then, the the about half. talk that details into next is back or for from in timing only there ramp there are handsets, the up pull seeing -- drawdown guys is we And parts that you around If perspective DAC for a might in inventory [ph], any as transition thing in so any we new to of update there, today

as place may of taking would details be to Just that any great. sort a transition be

hit Chris. a at let and take head can nail in that whether run on we us there, know me follow-up Let you the -- the whether the I

nothing out So, first on there's of all, timing, of ordinary. the really

be are, We steep product. launch takes with us going ramp conversion to a preparing the that a device, of through full a It's for ramp. power

a As pretty of healthy attach straight expecting I rate gate. the we're out said,

-- picked optimism do. XXXX, But up. between wafers of lot lot content for now all basis the product a the of to a may there. power there's this the a IC, and and the your from you to of second move about not in schedule out our the work that's So, be of of in And to nothing and question, then, FY alluding tone then, particular, you perspective as replacing and control is that really But upbeat kind part there's ordinary anything. conversion

is. about that that on looking We seen our that our stuff without inventory there's to it product though, kind that gets camera there, we elsewhere be there's controller from products attach and very attach our of if course, cascading that -- in been products -- the given nothing that products, with years, touched would may I the call, device that. through product don't customer's features saying about camera time has of we that haven't what know impacted by One it have many a over there's legacy background were phased thing our a mentioned of rates. lot with consistent perspective or So, about in however, we've of of discussion the out again, up go previously, be and anything customer's in over rate customer's high-end the

to -- that happen, no or think likely particular associated we like inventory but there's ramp. again, anything of drawdown with old that's nothing that So, there's

of you. comes ahead. of line from Thank the next Colliers. [Operator question Derek go Instructions] Our Please Soderberg

is open. line Your

year? to questions. for -- environment, wondering follow-up. detail an pricing the of on -- Hi, the pricing or guidance? taking I ordinary thoughts be around And the this have Any on do you Thanks then, if declines or ASP could And environment be you out looking my guys. would in a I'm having any terms of expect Thurman, helpful? forward, declines then anything provide ASPs impact abnormal ASP results

ASPs normal a products. ASPs on -- our on our basis our on declines with No, year-over-year we've -- seen older our

was or from the constraints was that us would different the that pricing did of in So, say probably it. wouldn't anything ASPs in pressure that time this I for some anything effect. of capacity effect side say store. there I'd We on because of some we see the that saw abnormal pricing our bigger terms be

Got it. wondering early you of normal new -- was sort using you maybe be if new authentic of you we're about the out going the could describe and I new I'm at all. pandemic, -- how lot talk to extent interface. And the the to if voice more. voice pandemic authentication then, that John, can, this that's opened of a guess, there I'm playing In opportunities, days wondering products and up

think of of applications? to shareholder out letter. in Is any types some shipments you Thanks. the that called products these leading I new into

around particular those in Not technologies.

just the back We've the those and and mobile would for quality growth different use tablets, and categories of of our across I suddenly areas say the customers, -- one for the increased on higher a that a which us, devices. exciting desire is consistent across pandemic of audio. through seen laptops, Although, pod of is

I time so amount it working video to think screen and become the experience, the so from sheer of because has on. AB for conferencing central lives the fact the -- that of home and and people's

PC So, starting and that we've having because many we that challenges traction seen ago, we've we've have almost degree going and going no are really seen from smartphones customer do believe gain about a which where haptics. we're comes to there, momentum a a business year it through -- they and excited -- to devices of same real actually the audio when related of in transition seen high engagement those

thinner they're to to expand thinner, want on, gives new haptic in audio so non-phone boosted drivers a As exactly and us ability which same the they to going get represents mechanical the of us, kind and that amplifies, for opportunity controls replace great categories.

the would where it's I one and a of we sitting biggest the that areas say in growth for meaningful that's certainly seen pandemic. of we've FY have the interest So, back demand customer pipeline of And on XXXX. the new the part

And Rolland our next of Christopher Please of line comes go question ahead. SIG. from the

Your line is open.

Hi, guys.

your on there Just there. customers Perhaps at. that? mention you think illuminate the And most that PMIC, talk I besides then, interested for of I as haptics And if a interested you're actually quick look I follow-up said here. product XXXX laptops were mixed-signal maybe notes a think couple even were don't in -- you did want in and XXXX or to you we know that about what

Sure. Yeah.

a But meaningful the is there's recap, architecture PC changes really to transition. more my of couple on I taking many their design Ultrabooks There in smartphones more industrial of talking akin I space. the of around points same just just place around and particular becoming hit encountering and where and a may have to most were think problems. interesting

thinner trackpads, there. around we've of devices. great our the haptic which as And with some And that be get thinner replaced So, all we're mechanical that about. that, many interest in customer laptops collaborations seeing and will we've really about technology we assemblies and and by seen attraction we've talked in anticipate they products been and excited

amplifiers drove of a people to audio smartphone devices. that to of believe for something the there well. thinner wanting are in out And higher towards close with for a In we desire voltage, -- boosted and speakers. that transition result space micro which partly thinner better sitting again, that, the that faced that successful in audio as challenges a was addition And that's and been hugely seeing and the smartphones. better We us will as has Ultrabook really be,

up sure, opened avenue So, exciting that's the so. year that's past for opportunity of or been over

Obviously, share the areas, to On be standard high-performance mixed-signal of details over in the here. not we're the about I'm say we'll subject to what the going in PMIC doing we're power system. more time, business certain of we're conversion I not has doing But that something based really kinds value we talked replacing lot product believe there. battery anything We're control new of to and able about. a that

for more it for and reasons. particular bring to full but meaningful And additional in revenue for a the even stuff That's load and us innovation cycle ballpark it's meaningful around anticipate from whole battery up, near-term term so roadmap will fall meaningful of avenues this -- therefore we to dollar that interesting FY the of be our it us. the because XXXX. in continue that also real is is the based grow a can year, in a new value where very we longer to XXXX of of exciting and One of because in content impact opens we and very relevant seeing whole two has customers, and is, world believe a systems FY

it. Appreciate you. Thank

the there Instructions] queue. Heffernan. [Operator are I to will the questions in no over further And back call turn Miss

turn additional to you, I'll are no over comments. Thank John There final for it operator. questions, so

our this of the ability customers, associated challenges pandemic. an proud Thank despite development and XXX about intellectual by summary, new details. the to In product participating conferences, excited be Cowen, to and strategic also outstanding us provide and execute and support Bank we're portfolio solutions, hosted With delivered Stifel note property employee's high-performance growth investment that beyond. in ahead year-on-your and for like we'll continued to compelling that extensive of the on in the also incredibly COVID-XX progress check in of of XXXX. we're America Chelsea. we've investor FY with I FY We're the opportunities website our the quarter. in audio Please to you, mixed-signal proud our and

that our addressed to you you, I'd of them you CEO website. section thank questions everyone the like not submit the investor If for were to Good call have us The to bye. any via can joining today. Ask

and today's Ladies call. thank participation. for this concludes Again, you gentlemen, conference your

now You may disconnect.