Cirrus Logic (CRUS) 2 May 182018 Q4 Earnings call transcript

Company Profile

Participants

Thurman K. Case	Cirrus Logic, Inc.
Jason P. Rhode	Cirrus Logic, Inc.
Chelsea Heffernan	Cirrus Logic, Inc.
Charlie Lowell Anderson	Dougherty & Co. LLC
Tore Egil Svanberg	Stifel, Nicolaus & Co., Inc.
Ruben Roy	MKM Partners LLC
Jerry Zhang	Barclays Capital, Inc.
Rajvindra S. Gill	Needham & Co. LLC
Christopher Rolland	Susquehanna Financial Group LLLP
Adam Gonzalez	Bank of America Merrill Lynch

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic Fourth Quarter and Full Fiscal Year 2018 Financial Results Q&A Session. At this time, all participants are in a listen-only mode. After a brief statement, we'll open up the call for questions from analysts. Instructions for queuing up will be provided at that time.

call recorded this replay reminder, a is for being purposes. As conference like to to now call turn I'd the over Mr. Thurman Case, Chief Financial Officer. Mr. begin. Case, may you

Thurman K. Case

Thank afternoon. you and good

the Logic's of as factors results on or from discussion Securities otherwise. XX-Q, additional Please other made differ Cirrus cause as that that Logic may undertakes note subject or the today, uncertainties available non-GAAP information, our Exchange to our By GAAP the the call expectations. Officer; approximately refer company we and this The and could all This actual Relations on press and Today, reconciliation Director XXXX earnings release to as we me company today's website, projections obligation via at or financial to Q&A webcast is financial a X:XX risks Form Investor financial and most of information and questions is investor.cirrus.com. to Relations. Rhode, that covering press Joining investor.relations@cirrus.com. at a e-mail are Shareholder make that forward-looking for providing may directly with results full statements our of revise to information, and for year of will call current as well as to of Investor well Eastern. new actual Chief quarter including materially other materially feature Letter any Chelsea the and result from comparable Please are results available session, corporate us the which Cirrus Commission Executive differ the company's statements, projections. results, announced at this the at update projections questions Heffernan, fourth the discussing our PM latest release, Jason XX-K along risk submitted forward-looking from to issued President with no the website filings analysts cause this during the fiscal session, whether developments

Now, Jason. call turn over I'd to to like the

Jason P. Rhode

Thank you, Thurman.

make Before a we to begin comments. like few taking questions, I'd

a posted $XXX.X Relations account billion Cirrus of non-GAAP of results, GAAP our XXXX EPS read In For our QX, Investor and revenue of Logic respectively. Shareholder revenue million. $X.X of $X.XX, delivered EPS EPS please and $X.XX GAAP $X.XX Letter and of website. financial in and we $X.XX detailed the of reported on FY on non-GAAP

for the half unit year results smartphone back and were fourth by the volumes fiscal the full the year. quarter of impacted than lower in Our expected

a product While opportunities, product devices year-over-year customer to The these a wins, solid innovative and we span currently of our expect and solution to to Android new continue more diverse on company anticipate to meaningful content portfolio and expanded existing gains roadmap engagements, to including and headwinds penetration our new technologies boosted growth has response XXXX, and biometrics our and very including introducing audio our XX-nanometer amplifiers. been meaningful component that drive positive. haptic FY customer XX-nanometer boosted we XX-nanometer believe flagship continued the with customers. introduced increase will QX in our also market for expectations we return term, voice amplifiers with mid-tier for a design Since and near to continue expect new the XXXX, strategic to in of growth components demand and on initiatives executed In voice Cirrus company FY growing the XXXX. that on capitalize enable will We audio Logic for the in number future. believe we FY a

accelerate key platform at the of audio as expected world, throughout with shipments a and design amplifier largest pleased the many high-volume Initial customer socket OEMs move in account. the a wins are with to are begun in mid-tier quarter. our have Android this first We including smartphone to we have

gain haptics a OEMs. variety are and quarter designing actively in to continued amplifier of with our March Android also We with momentum the

which product, lead our secured first-generation our and haptic begin shipping expected we component. is are have to pleased on with this are second-generation engaging win the customers to We year, later design with

smart a and of enter and smart on our Cirrus portfolio Logic we expanding range home and on with applications, comprehensive compelling capitalizing amplifiers headset a DACs XXXX, FY is demand of boosted codecs, and hi-fi laser-focused digital target audio for smartphone, customer voice execution, components. As that base increasing wide

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

Operator

Thank you.

Your Dougherty from first Company. Charlie Anderson with comes question &

Your line is open.

Charlie Lowell Anderson

biometrics, quantify follow-up. of maybe reference roughly shipping speak a into to you're if narrow Thanks And I've a the you for that of how in then to when product, engagement a taking customer them, was materialize Android there Shareholder a the account making in interest beyond I the the sort think to sort you product. there, questions. standpoint with broad will Letter then got wonder it? types customer. could my seems or And to Jason, maybe you the that from both end however of products, want be progress or

Jason P. Rhode

it that the enough and secure that email the changes than indeed mean, fundamentally and really the cases I on to read that nobody the to for to what interest they like the it Sure. assistance non-hackable toy that in so as are have There's technology more Until we and use would the else, tin voice number enables we fact they're to talk say would say whatnot, universal. they're the not in your Yeah, reliable close it the if and hype a of really all of market. about voice does I is pretty it and everything useful. of biometrics

promise noisy out think so it. – able doing paper. the goals able in hoped and to met show of for to reliability the in and than of lot performance, initial on extremely interest to terms right would a up well. we I in it a device, works of fingerprint-like our has forth. when say better It's It there's we that our being even so worked deliver be have environment gate, I would So, dreamed would

So we're extremely pleased perspective. from that

if in is through they to to process what for will give business for what also device and it in how XX,XXX. for them relative we and they or more As in It's when it customer do simple just customers product is we've they of trying to the of and somebody sort say would methodology much impersonate they do how do and say – nature statistical both context. ourselves phone and XX,XXX what speakers past, it in in by extraordinarily-complicated as access use or different random and It the we to expected is person sell how you X do is, and some false accepts the an accepts, even mean our having X the as phrase think talked when every you even the discussion XX,XXX recognizes rest you it shouldn't. have as what a people in say or imagine, something our see a so that's this false not validate about might as or

to benchmark They a just a on to their whatever the number. with it set that run okay, So, to own. get the set We of, performance. methodology different benchmarks. to that a is their confirm next get They A for move through and work work customers. lot trying of on then say, it of we of lot net through – there's all is

So, design a reasons. as expected, of lot pretty it's a complicated for win

a of I of good we on interest really It we're out the one see that. growth lot progress think But things and traction good making remains customers. the on from further strategy.

of number some As definitely very is typically when customers. success our start then move try and we to our we style, up small need we large resources we'll on. the on to It's focus could possibly than move focused And there, case the where folks support needle a drum the that could are make that so interest us. we for can on we more sure getting

Charlie Lowell Anderson

little are how That wonder all audio there, it. you in makes other just a us And background areas along comment of also then could Got I the mixed-signal about into voice. than there and give was far Letter you a if other maybe branching Shareholder sense. in does guys in conjunction looking impact have it how margins new headwind are forward? And sort revenue as operating it's that of this R&D effort? the spending? you a at those with Thanks. that, How going of level efforts? how Is then, influencing we

Jason P. Rhode

already Sure. example that's of Well, out wide so the open it is haptic. in really a good

vis-à-vis great on really side. great did team a new the so compelling haptic an forth our repurposing of happens where, driving And and experience close haptic then that device job new that's So case, silicon amplifier, piece already terms a was had a example in we that XX-nanometer that a of the of for the fit via to be to in deliver a particular actuator. very algorithms user technology a

always do that finding applications very level of and analog lot low-power of XX high whether That's we something already large in a with digital we've So, range and like to are high or we things. very provide customer the that to voltages of mixed-signal where high-performance, pay increasingly, like do or already more the with reasonably that relationships. it's to to very to great a to and XX combinations also opportunities in haptics serve really we're new attention neat more scenario, XX-volt things high got and well-established voltages XX-nanometer integration that

and with we that good relationships with meaningful grow already really with ones capability. customers develop content and see we So to opportunity know love continue to our that new

headwinds first it we manage long-term of environment's us. we that front As to short-term from that it in it's the the an relates on try area to is and we are are a foremost opportunities be to the make when the the careful very also we perspective. and that sure we Obviously, today, company at time, way want op margin, very mindful where of but capitalize same

forth. pretty I so think and some guidance regarding the So there's OpEx specific letter in

helpful as So I as be that will working through. think far

Operator

comes Your Svanberg Tore next from with Stifel. question

open. is line Your

Tore Egil Svanberg

in your low a a bit obviously, of in pretty QX. thank you referenced Because income XX%. In Yes, you little Shareholder Letter, a us here now (XX:XX) the Could expect to XXXX be point starting you're give linearity? of down sense (XX:XX) you you. on

if that could of for be helpful. would a you linearity give So just that, us sense the

Jason P. Rhode

have in originally usually when to trueing we be be forth. And, very there up the you always, you at extremely go, Yeah, cyclical, sure. the expectations end so the headwind of the in the first the terms Well, our a like as of the It's the bit – chain supply of can back place. and then closer as further disconnect bigger course, to that usual, bullwhip relative are. things business the were the pretty we of a set probably moment, a don't expect linear we get and to significant certainly

of So we've got some that on. going

looking for forward, around. point, are data that Some change is we makes in conservative mindful frankly tone, a that that not of that bit naturally we're us too, of they of the so necessarily in, all things guide of A when are the number little just but noise some to markets with models forth. are any and way serve maturing of the the the more certainly we're

say positively than isn't So, turn in we mindful year be that customer of from this as for year some be that, that with out of as But do growth definitely it slowing progress when a with probably the between in that that the if lieu one, of of necessarily in it's anything but data, like next Shareholder is of isn't we to is it we outlook, that caveat a said, fiscal And Letter anyway, last growth can things next of – be we unusual. And ton we any signs we kind serve. see and more starting weighted calendar of exciting just more markets to early kind backend surprised. hinted far all year. around want of it the as year, let's

progress we we're which that take some of to think the advantage part, well-positioned should lead So to also, in growth, on of some front. diversification

Tore Egil Svanberg

tape-outs I historically. And the sounds you a a new tape-outs that market where from fire the or number the could can it just perspective big if perspective in has like in irons and talk of about I was you past. of many in had tape-outs. opportunity hoping put also you into lot helpful. large mentioned of mean, you've company a how just that relation you sort to have That's been on

Jason P. Rhode

a in this have quarter don't grow But, I that meaningful all expensive or which of it. a bit kind (XX:XX) the number content part content line usual, of zero, try processes, and, tape-outs new little products products number product a the I on to some as maintain share much to haven't all fine-line got as we've are in designed in Yeah, we geometry haven't the A, Rev which of mean, had are process, take specific to of share recently. at had next content in in that targeted some are of

broad So it's perspective. this out it's meaningful taping all are they're but our side, only needle-mover-type kind of – are that from much an gamut, a expense from quarter ones the but tape-outs not very

from about expense, good of looking that's kinds So, at of kind a perspective, shareholder can you're a expenses if you have. as

Operator

Your next line comes from of question MKM with Roy the Ruben Partners.

open. Your line is

Ruben Roy

into you asking Jason, assess – diversifying are some just Thank around started days wondering phones, content win that going be could I'm mid-tier just you now The I'm feature you. that content of guys opportunity early you the and assess opportunity guys sort the and and forward. of the the how in could to thanks. weren't that move question talk when phones Android Hi, the maybe the was if these those in in reason we have, mid-tier go phones high-volume wondering had I'm how and those of first types I win, sets phones. what is explore the up sure you starting to have about you flagship

Jason P. Rhode

reach I mid-tier the on there's folks, a mid-tier to further cost on room is little little they maybe you more yeah, conscious, a head. to a bit the there think the be on the more Definitely experience. little and a while lot nail discussion the think maybe compelling of deliver about I flagships need Sure, hit

with handset compelling It's handset that we're letter launched. compelling customers case folks been the no model we've phone. making, a that want for you about the that's – about talking in you're price I hearing matter a our believe good talking for the think speaker what the the I it and now on mid-tier to mid-tier, communications that of in a and in pretty and subsequently really really is in kind be

it be it in hear the to want You loud can you enough car.

louder for mid-tier to echo and see be and it good two not do and stereo bigger And things things along for it's to handset. one just really still because want make to to move or those opportunity there's space-constrained You speakers a time, – need we small that's great way a of over so distorted even lines. the a job a one for stereo it whether whether cancellation with forth versus really in in

So we do see mid-tier folks trying to move up.

it's It good think Android for. knocking sales one We'll that's moved just that. is example very marketing launched I we as but me. board to think amplifier just across the market, the towards general a I the side, possibly the great ball board as of we've team the off across about how right always hope market design the nice errata to the the great of time. competition, strategy, Android in nice also of primary box. to to it's (XX:XX) out challenges a very your And a just well, hit your nice it's pop China minimal on with really product rest while particularly have that of, the the really up And have It worked time. always competition at the same and have let's have from did the on job the cover to a could to of salutes, as bunch the see space, say, compelling looks market

job is the great right. just way and yeah, you by think So, exactly team it the I characterized

Ruben Roy

that you Last just Thanks. you're I the talked new of question as diversification flattish XX%. up I'm bit guidance with largest if new us XXXX, markets you're with you. the there as some get sort about upticks road versus up could we based mean, down idea this that of around from expect for the an what having in little and Thank maybe you I June coming could guidance. little wondering give up just about of how the just Tore's you if driving to a guys cleaning just are on follow and if a now to to coming up of relates now of continuing because down puts could And inventory your the having on these number bit just later it previously. talk are quarter year just – takes quickly sort fiscal potentially maybe with part revenues and significant discussion of customer. into with where

Jason P. Rhode

we the we or relative but Yeah, said them been. have very again, there, what mean, always real to we that handsets a you are and later us year, difficult comes inventories see doing the yeah, even is isn't out, Nothing just in our do is just difficult be pointed to continue with data I new that what and generally what fine, we're to little is the difficult about with handset Sure. not would customers due reconcile, the available. opportunities what just it shipping than it it up weaker getting our whatnot had various we previously, view from the of probably in any outside. now overall, are to difficult have all into to correlate as but expected for lines It's and specifics to ultimately and try just

out find new are you not then us, Everybody's actually many customers, or it. got the our drive had, more year that than not the handset and handset one, on of deltas little happens right an nobody conservative side; a on when to – modeling a happens weaker opinion bit are, in home, what's not knows market So, a what we that later (XX:XX). to again, biggest analysts, not, generally, frankly is point name the going people what buy launched how little which when two, we the just it's

could be we'll year then the from still just very on the bit some of growth we the of are external opportunities surprised. year. end change. timeframe. products we of a and then content from So And some modeling, penetration towards – see shipping of And growth sort good that positively is our with baselines really we've if thing, do two previously, that also it It's out good as of think relates had perspective to expected better that, in some new We than takeaway lower I see be little those it's maybe and kind that those that conservative coming be communication. should than finally, then although last there a got

Some that the end of at created of is their time the happened. is you customers people pointed or nonetheless, what expect some and towards change of we have diversification, have expected plan There's guidance to movement not is that And even meaningful at, that given the progress what our other we but their pretty holes this good as point, calls opinion year, the time. growth, good only meaningful from we've both which on to time. pretty out, record also with dramatically it are in that But be fronts. looking for

Operator

Curtis question Blayne from Barclays. line the Your comes with next of

line Your is open.

Jerry Zhang

up and what Thank Thanks. return my growth you. on-so next question This for are next is your expecting year? I do takes largest had year, you to to and taking Jerry or are puts down also, Zhang I'm within a just Thanks for that. expect customer And wondering just the guys you Blayne. on question.

Jason P. Rhode

that that kinds the out about. we Well, I'd that of rather we've customers, far timeframe in products specific see been on progress talking with comment not but

in ones been shape. like All or good the amplifiers initiatives past the have and for those of that are said of narrative year like nearer-in We've we're of that so headsets. our feel things strategic part

timeframe. see expect progress We good that to in

an and our forth, around opportunities even for That success getting way. can. term, relates any away well time. and to expand it shrinking over so that extremely our largest some be narrative we with to in our without and We to us opportunity long we firm's don't intact. the timelines there customer, certainly example, see headwinds, the potential do or robust whenever over continues remains going contribute into It with your to specific relationship there of, to As obviously notwithstanding for see opportunity content

(XX:XX). good want don't timelines initiatives a specific growth we lot of we in too there opportunity get via also success see for and So when. we've caught for But the what for by product to up opportunity diversification been do on happens talking

Jerry Zhang

gain content Sure. some that, a about follow-up, just there? about of content into guess, you year. you next as can within which talk products to most are the think talked you I And types gains going

Jason P. Rhode

been certainly on we I've those we closer and and time. talking would of are that amplifiers that underway on make in kind Well, headsets expect good have to as the just about, initiatives the progress in

Operator

line of Your next Needham & Company. Gill Rajvindra comes question with the from

open. is line Your

Rajvindra S. Gill

the you. thank Yes, A follow-up strategy. diversification on

the you're, those areas, out start seeing a digital traction have this several dollar codec, smart going which towards but So, going But in next now, that you nonetheless, outlined of it's you there you of XXXX. could going Because so lot grow year of on out opportunities. and basically I wondering mid-tier it codec, time microphones microphones, to if the And terms model into past, some you've are to long a grow. the the And whether putting opportunities, in provide boosted still year? headsets, to in MEMS in detail of, you're possible ones side. from was a amplifier, are bit hit you're put year more amplifier fiscal that's that to end going the

a was wondering some further bit little on specific on going the if of I those marketplace. elaborate and could the what's products with you traction So of

Jason P. Rhode

grow me, Sure. forward-looking to you our made current in expect we always just change, for that's to Things that timeframe. Well, the retract certainly can outlook. but statement

put and success a in question then and nearest chat just challenges some the being various we the our continued biometrics somewhere since there line on earlier yet, and microphones with on have product we are in which ago, Jerry's been amplifiers, Further than codec that to broader forms in said Had the nearer-in penetration of all being just and down on progress, strategy – second good things hit smart the I to as its think, I of there. continue penetration on headsets, is make call Android, microphones. voice whittling to the play. haven't in biometrics out mid-tier

we supplier in to to really chipset. with of we as components opportunity the sold space. believe we the much of some continue position our side, we've are that combination the We opportunity that audio on we traction ourselves the silicon as gain a think components And premier have do the that, got to as with microphones once

there is we So engagements there. still very, very receptive progress a once finish such technical believe challenge on be the get challenge. but line audience our that team to to I be hard there, the will think And mastered are pretty made good has (XX:XX) the we

Rajvindra S. Gill

Thank you a that. And just follow-up. for

So, made the voice quasi where people smart competitor And there, major the acquisition you a becoming given devices, in or do incumbent that's is competitor. a generally between very voice-assisted speakers or the opportunity somewhat big just market. that of interface and devices, an have

of you're know how are at focusing of what Thank wondering voice like, looking to as other about, devices smartphones. voice? biometrics was I But devices some I and on market So, you. you're to well. that kind include going the that start voice-assisted for

Jason P. Rhode

looked The an something Jetsons. It's watching Sure. we've watched at market. we were and since Yeah, intriguing all kids it's

of on hundreds that of dollar that perspective. dollars from hundred an for yet. broad But a opportunity if huge and it's if it, enormous then our opportunity. our So, from that it or certainly we've by. sort it's one I dollar $X.XX of something open the a eyes perspective, the short actually charging term, yeah, a it we're from know got and component you're whatever big is market might it's DAC or a you're yet. content be customers don't Obviously, intrigued But us, not in it's

those device, a a high devices biometrics We to, At for number home that you a very and the various and be it's in in handset. very are like you, interesting opportunity I like with us. are as not It very just they in text a or you're you as my access whether are for of are people things should other things, should those financial technologies or they different connected applicable think e-mail give our They know whatnot, level sensitive or remains in secure. opinion, systems those that components. are voice

our customers, today, of or Now, devices some opinions. of some pretty have suppliers such the different of

be own sell Some beamforming captive room. noise of your that. that We to of their always of hear little them from make some challenge one technology customers you It's technology. better their able distinguish say, think and can a from on, across has to far-field you it of have to into do bit than we the a own

it So we got to weigh against that.

there, be Some doing what data companies out Internet data, audio anything or a want that's cloud. and which going and the our From should knows Because gateway me beaming your between that little microphone of as frankly, you've secure with the perspective, to a cloud don't really (XX:XX). anything or consumer. interesting the biometric the on between But anyway, an there makes thing who all they're a there. it is said uncomfortable

play Again, can a handsets So we think voice role biometrics are today. bigger key there.

believe expect is we the a to in to really compelling longer term, hands-free us becomes to and like where a things is. things or in really things the in we selling a to and noise broadly that's home addition addition primary voice case, and short business voice suppression so technology, use target Because and for But we other with These smart bear codecs already can just compelling becomes D-to-A more speakers converters time. in cancellation that kinds then and more So like capabilities target our that forth. assistant. over echo bring term, the of

Operator

Group. with next International Rolland of Your from comes Susquehanna question the Christopher line

open. is line Your

Christopher Rolland

Hey, guys, thanks for the question.

design, some So you haptics guys mentioned commentary. some

then haptics And I You that was Perhaps there Thanks. said guess, first-gen this mentioned other for that how that could product customer? talk with existing as question well. an be some that haptics my you engagements first you secured second-gen is, is and about a shipping a year. you? big players with other

Jason P. Rhode

we in customer don't we've customer-the previous shipped the universe about. too one only talk haptic the things Well, the is other

of So, Shareholder customers. multiple in second-generation anything we're first-gen, we're When we Letter multiple devices kind this our engaged haptic on about to we're and product. product said is the And referring XX-nanometer latest then talking first-gen new. with

So That'd that'd all new. all be be diversification.

so about. user pretty compelling. is And we're that It's far, the really delivers really, something excited that experience

like offshoot which the both engagement a and and this of customer is on team, So, and again, side great much tools by audio-amp the algorithms team, an silicon job as on the well. just

we're the of kind that's to on that expecting the So, see. color opportunities haptics

Christopher Rolland

also the progress in had chain mentioned And on there. you supply Taiwan. Great. there then Perhaps and some microphones progress talk you made about

about You capacity capacity opportunity demand, just the you in Thanks. viewing place, potentially market and how the had you. increasing talked for that you're but about talk there maybe if

Jason P. Rhode

Well, satisfaction level certainly in not existing chain microphones say is for large. would that Sure. with high. microphones is supply the I the opportunity the

we key of chain production view can be turning the our we're So can is we to and space But making hundreds microphone with doing ours. the with work working which thing bit. for what range bad we for somebody's of newspaper as what it's and in and customers there's it our to some for goal it really millions to producible certainly single what the se mean, are scalable over to a do without a of a we line, that it scale definitely kind things tens supply microphone of have ensure longing and it source in on in silicon wouldn't certain in just vacuum space. capacity time up units that I or today. potentially do I is the per a cases

to as chain can our from productionable for to more and microphones challenges reliable everybody makes We're anyone again, it it the certainly a so what's no trying time point interesting silicon. involved to that all question, hard (XX:XX) (XX:XX). down way and make opportunity disrespect reliable Whether the to folks that than get boil to them an really has in think to demonstrated where is supply far. So, there's but been everybody it good we make much time as that is that really,

from over a and needle-mover we a to things good good we further that progress that that's as but perspective. signs of needle-mover next making we're hope sure remains So should of It pursue kind see year progress effort, one remains there the would it the we continue out opportunity. of on for

Christopher Rolland

Jason. much, Thanks so Great.

Jason P. Rhode

You bet. Thanks.

Operator

comes the Lynch. Your Gonzalez of Bank America of Merrill with next question line from Adam

open. is line Your

Adam Gonzalez

Hi. question. Thanks for my taking

earlier following targeting opportunities question and beyond voice. audio your R&D efforts up on an Just about

on Just at market. you're wondering looking the there's if anything of or the horizon accessory mobile that smart outside

Jason P. Rhode

also to the new in – go to to easier that accessory of share of is sort the a find you've where ones. opportunity already it We that in into of already is a it's much to that Certainly, new bring ton but than markets, today. engineering and we of take in got sort and for like lot existing see in existing intact we that shipping technologies kinds thing. things and serve is and leverage And we're all do. customers mobile of focused we new you're products products things boxes relationships bear kind of cases The that

of space skewed a it's handset kinds probably we've we're more real little to that the So towards doing. of in trying both, things position a good bit got of the expand where but

Adam Gonzalez

the we Thanks. And now? for be Got you then for is of the picked have the expect half the remaining you the so in up that's And or Should on a it quarter. like just in use to looks priorities first right front-loaded stock $XXX it. plan with then million up buybacks, us authorization? your pace Do following on where more remind they've somewhat can of buybacks cash? the

Jason P. Rhode

mean, sniff going I that because of I got side. algorithm we're about quickly. and a do don't all the we trading Yeah, on will Sure. and buyback in programmatic quiet ourselves don't to significant crafty figure pretty some to We've person period. pretty that when We front get what do try out

So when we just the it so how That's some and it that's market view get think frankly, take view to shares its time wrong, opportunistically and off kind from time we going of it. we'll how forward. we take

there, continue projection to keeping that. real don't we on but have be a an we'll So eye

Wolfson on better far as have as like worked good out As it as out cash, – acquisition of as in acquisitions that the worked paper, reality. well looked worked uses would it highest as the be could out priority been

don't for smaller use our done the and out would So rare. ones be they're much things We've like cash. quite of which also consume but highest really us, have well but best cash, as that subsequently, also worked

expect quite it. to continue We lot to of generate a

We think write-in lieu time. about the a that, we been, whether let's had largest highest time I and markets investor regarding lot it, between a how get we this question a consistent the we set to face The that's or So, from numerical from a of with and there's financially difference feedback time a certainly fact, think dividends cash. and, of we discuss In it from about in from – think we it. best whole efficient our buyback shareholders view, in way volatile our repurchase not from question are of to has use and the that time about own dividends. most to buybacks are go of about is perspective. and an dividends a We think about

to there's leverage the likely and advanced via to are had investors occasionally had okay, done won't you be flexibility the that have. would if the be that So, a of volatility don't be pay bunch analysis investors you a argument to volatile, suggest additional that invest sometimes likely company pursue gets there's would And in buybacks. that, are stork with and dividend, not a we your those if that we've to

and discuss on at outright cash. with the engage could of is an just as the to now and but it expertise buybacks time the as we for use certainly balance on better we stand view relevant needed, it So, from where time off change, moment we're

Operator

next question ahead. sorry, – the Your from comes go line

Jason P. Rhode

forget that, whether question not, more Sorry, can back I now if I on so you circle there and to was but spoke that move any about needed. or long on that

Operator

Your the question from Tore Svanberg with comes Stifel. next of line

open. is line Your

Tore Egil Svanberg

Yes, you you. question, thank question the that MEMS and so capacity I on already Taiwan, had a just answered

Jason P. Rhode

Okay, great. Thanks, Tore.

Operator

comes of Barclays. Blayne next Curtis the from with line Your question

open. is line Your

Jerry Zhang

question. for guys, my taking thanks Hey,

curious of last if (XX:XX) down future. I curious curious of guide, I'm that the your of to going kind largest your out up year. fiscal kind customer, it you've in Just your you revenue or this just a been I'm of be you of for look in to expectations. kind at just was portal lot have about is down? talking vectors year know revenue

Jason P. Rhode

Nothing – the always it want around model by don't isn't front. mean, rumors that changed to we, content there's do break expansion. And plenty see that out customers. this things are which future. very in We certainly of We on certainly there a Yeah. of I for opportunity course, has conservatively. big year of

But A a customers with in. working so big a timeframe a obviously, don't get So the I number extremely are when get of kind in think them, time and what I to ahead of over far we're ourselves ahead, about healthy, the long and it too think our We're engaged anything is on in this excited our kick we're us on we out we're for for kind relationship of is but them ways want there. to opportunity advantage opportunities about when great. way working those. thankful it's might work

Jerry Zhang

some getting those what mic you scale. small could on know here. some What's you've I'm wins of you I And talking mean, just you've kind working proprietary want on on in then you're have that also I smaller fairly to curious, but capacity, been you interface. wins time this about you. and be Got adding I had product asked, kind so might the different been approaches, and one expansion. mics? driving had is ask some the this a customer for mics, scale have of think but you're just

Jason P. Rhode

about more the you scale that in not the capability would then and bit. view little thinking units hundreds things of growing term, the how it's range volume the we pursuing in capacity so about wisely produce tens very of short millions and of can microphone I a We're making things. as sure business the really exercising more

the So previous where business Tier we or term for reliability much real today ship the like – that when is can questions long hundreds that's we're of do we and millions get year, and microphones us, X really comfortable, X customers able kind remains around it really microphone, around to of we are I the eye look the that's the say comfortably working single-source can everything customers we geared being for business produce. can towards becomes that pretty of ship of of and interesting couple point failure – a Tier product we in as lock, where that. a the the over quality at said remains success to our on microphone When ago, stock

capability the developing not – also, mean, that's So (XX:XX) the is it's engineering really but equipment production capacity and bringing more online. trying than primarily about I it we're the by rather problem

Jerry Zhang

terms customer, determined? level just one good And Or your view determined? year to apologize, still if Is the helpful. are this but in one, a visibility? I everything phones? That's have and I little some largest then You in pretty be could have those confidence supplying last be at there things in repetitive, you'll what's your of your chips

Jason P. Rhode

I'm But very plan. their change that plan current always is. can customers mean, I what confident we know the

Jerry Zhang

Jason. Okay. Thanks,

Jason P. Rhode

bet. You

Operator

America of question of Bank comes line from Lynch. Adam Your Merrill with the next Gonzalez

is line open. Your

Adam Gonzalez

follow-up. Great. letting a for Thanks me ask

it I I And fiscal if relatively your Just OpEx for year. OpEx said demand ballpark, the flattish unchanged, in weaker-than-expected had any XXXX wondering to looks implied year. XX% the just just you given something guide, why isn't think like that's rest of X% growth, outlook? looking I'm past at the the in the model, there extrapolate flexibility the Thanks. like

Jason P. Rhode

not-great something Sure. we for the the long the company Well, I manage But time, the looking certainly it's one call, at meaningfully of the there's a quarters at. around same outlook point longer really see we of optimizing nothing said have for questions around earlier handful we're as the on the term. don't We because a of small changed about ton of term.

to lowering at OpEx we're so, whenever rest do in caveat for going shooting So absolutely prudent of the foot targeting opportunities and the with that the that forward. things but assured, we look the ourselves reasonable and it's said, not

the the be So, in term. that in turn able it the relatively to difficult longer negative is screws pretty for without a short-term, to outlook company on the in OpEx effect context having the on

XXXX next FY then to in with our trying have (XX:XX) to just, see OpEx of we the not foot timeframe light short to in term in happen. we up back the the expect we're on timeframe, versus the expect we're being balance around to what catch FY what So, trying

balance. than be something And out turn to eyes forward. If better it's then we've modeled, well. of true So, conservatively on that's thing. kind It's what is opposite a got one as we've the things our going certainly,

of we our best something it can. So, got and balancing kind we now we're on, eyes as

Adam Gonzalez

That's helpful. Thanks.

Operator

turn call to And Heffernan. questions no further there over like now time. this I'd Chelsea the at are to

Chelsea Heffernan

you, Thank operator.

on questions We via and should you we how today that update email. an with received efforts Can about timing? will think diversification conclude the provide the were call

Jason P. Rhode

Sure.

And So a we've should of that I the say, the have. We as It's much of would many on those write-in couple hinted we appreciated. answers earlier. appreciate get of at like kind as I question. don't to

do see opportunities the we year timeframe. in good diversification next So for

we've And models hits. of good number the we've of a handsets actually higher over think the I it well. in a a A the composed We're couple past job of lot years. done of quite market set done lot stage significantly past. for with is frankly of those shipping quite Android the than base we've

year ones And are to the early recently launched be recently next little start swinging some bigger have of bigger fence some a and of the we're on timeframe, than the the certainly very the then others. won for bit most ones we've And still. in

diversifying good on expect would next see to The which that bad front is news is not year. I So we're the progress way, shrinking.

headsets, potentially we more opportunities over to back and to as XX-plus-percent on to to than microphones, opportunities start the And start growing your Again, hatched. biometrics can we customer. they're then that's customer time, one significantly the with We needle. our opportunity So, gain base. chickens diversify having pretty just We to see meaningful. by the till when never traction we more do see get move clear, be the to rest really count you see, the of business

Chelsea Heffernan

Thanks, Jason.

question and view Cirrus? related final to AI Our you how for was opportunity the

Jason P. Rhode

we're something It's Sure. excited about.

AI – at also, new to remarkable and the have about companies tinker to however or in do it. or their whether things market learning pivoting machine to look differentiating implemented respective just or opportunity in then AI you it historically nature I really We traditional there's And around using the of that. we AI, emerging see applications. us. really the audio was on. potential that, learning market year having audio job things voice voice to technology, for business, a it machine machine an – learning in done opportunities algorithms around general there for acquisition did the think which voice it impact our spaces, But that algorithms. the is change of want lot or a were I enable traditional more in see guess, either and is arena, targeted to learning machine at with That technologies more becoming out and today it kind area a as that – towards an to of to interesting last the year these We our biometrics general expertise-driven is thinking first and is applications tune to

we're outside that is biometrics, thinking (XX:XX) the So, an on noteworthy forward. yet, certainly it is carefully area going voice nothing that but that about is to well, – report real

Chelsea Heffernan

Great. That question. was the final

Jason P. Rhode

to Cirrus position thank years. with meaningful that summary, Logic return the progress initiatives numerous coming strategic company XXXX right, In to we growth you. All made believe in FY in the

coupled a help Stifel these XX at experience also and at and audio customer applications contribute available digital New markets of June with to home believe voice and on that flagship differentiated Boston innovative amplifiers, boosted our success. will be and the enable to moved smart Conference note our these Cirrus the Conference devices roadmap base. portfolio biometrics and codecs products, would events voice haptics May deliver targeting York we consistent be presenting investor.cirrus.com. and an Specifically, and expanded Logic will we with Live of smartphone, Cowen extensive smart I company's XX. headset into We broadened the will on mid-tier future in in products, the across and new webcasts and

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

Operator

you today's call. This for conference your concludes Thank participation.

disconnect. You may now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.