Cirrus Logic, Inc. · NASDAQ:CRUS
Cirrus Logic — Q4 2022 Earnings Presentation
28 slides from Cirrus Logic's earnings presentation, May 3, 2022
Slide 1: Investor Relations Update
Investor Relations Update As of May 3, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for historical information contained herein, the matters set forth in this presentation contain forward-looking statements, including industry market projections; our revenue growth opportunities; our ability to grow the percent revenue derived from high-performance mixe
Slide 3: Cirrus Logic at a Glance
Cirrus Logic at a Glance PROFILE PRODUCTS CORE STRENGTHS Founded in 1984 Smart codecs Analog and digital-signal processing Listed on NASDAQ: CRUS Audio amplifiers Engineering execution World-class customer support FY22 revenue: $1.78B Haptic driver and sensing solutions and application expertise Hea
Slide 4: Strategy for Growth Through Product Diversification
Strategy for Growth Through Product Diversification MARKETS Audio STRATEGY Leverage core strengths and proven track record to fuel product diversification Extensive Advanced Mixed- Low-Latency Low-Power Outstanding STRENGTHS Intellectual Signal Design Processing Leadership Execution Property Portfol
Slide 5: Proven Operating Model
Proven Operating Model Leverage best-in-class IP SOLID OPERATING Expand with MARGINS more content & diversify Target product fast-growing portfolio markets STRONG CASH FLOW Design best-in-class LEADING SUPPLIER OF custom, semi-custom & Engage tier-one LOW-POWER, HIGH- general market market leaders P
Slide 6: Award-Winning Corporate Culture
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 6
Slide 7: Technology & Market Overview
Technology & Market Overview 7
Slide 8: Cirrus Logic Growth Strategy
Cirrus Logic Growth Strategy Laptops THREE-PRONGED STRATEGY: Tablets AR/VR 1. Maintaining our leadership position in Wearables smartphone audio Other 2. Broadening sales of audio components in key profitable applications beyond smartphones 3. Applying our mixed-signal engineering Smartphones experti
Slide 9: Expanding SAM in a Vast Mixed-Signal Market
Expanding SAM in a Vast Mixed-Signal Market Audio Audio $2.4B $3.1B $3.4B $7.3B 2021 High-Performance 2026 High-Performance Mixed-Signal Mixed-Signal $1.0B $4.2B Audio: smart codecs, boosted amplifiers, ADCs, DACs and DSPs High-Performance Mixed-Signal: haptic driver and sensing solutions, camera co
Slide 10: Growing High-Performance Mixed-Signal SAM
Growing High-Performance Mixed-Signal SAM Smartphones Smartphones $1.0B $0.8B $4.2B $3.2B 2021 2026 Other Devices* Other Devices* $0.2B $1.0B This market represents a sizeable opportunity to fuel growth while also driving product and application diversification in the coming years. *Other devices in
Slide 11: High-Performance Mixed-Signal Capabilities
High-Performance Mixed-Signal Capabilities Low-Power High- LEVERAGING MIXED-SIGNAL EXPERTISE TO ADDRESS NEW MCU / DSP Performance OPPORTUNITIES ADC / DAC • Investing meaningfully in intellectual property and Closed-Loop new technologies on advanced mixed-signal nodes Amplifiers Control Algorithms •
Slide 12: Proven Track Record of Content Expansion in Smartphones
Proven Track Record of Content Expansion in Smartphones Continued investment in new technology areas expected to drive additional content opportunities power IC camera controllers camera controllers haptic driver haptic driver haptic driver amplifiers amplifiers amplifiers amplifier smart codec smar
Slide 13: Broadening Content Beyond Smartphones
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
Slide 14: Capitalizing on Market Trends Driving Demand in Laptops
Capitalizing on Market Trends Driving Demand in Laptops OPPORTUNITY FOR MEANINGFUL GROWTH IN LAPTOPS: • Devices becoming thinner and Present Future Past lighter • Work from home driving desire codec amplifiers for better user experience amplifiers codec • OEMs enhancing consumer smart codec audio an
Slide 15: Product Overview
Product Overview 15
Slide 16: Audio Products
Audio Products AMPLIFIERS SMART CODECS • Deliver louder and higher-quality audio • High precision, low-latency and ultra- experience from micro speakers low power data conversion coupled with software and algorithms to improve • Ultra-low power consumption allows performance for extended playback §
Slide 17: High-Performance Mixed-Signal Products
High-Performance Mixed-Signal Products HAPTICS FAST CHARGING CAMERA CONTROLLERS POWER CONVERSION & • Ultra-low latency, • Advanced switched- • Custom high-precision, CONTROL IC closed-loop boosted capacitor ICs enable low-latency component driver delivers highly fast charging and • Custom high-preci
Slide 18: Broadening Product Portfolio
Broadening Product Portfolio Audio Amplifiers* ASP $0.40 - $0.70 Audio Amplifiers* ASP $0.40 - $0.80 Haptic Drivers ASP $0.40 - $0.70 Haptic Drivers ASP $0.40 - $0.80 Smart Codecs ASP $0.75 - $2.00 Codecs Fast-Charging & Power ICs* ASP $0.60 - $1.50 ASP $0.50 - $1.50 SMARTPHONES BEYOND SMARTPHONES *
Slide 19: Financials
Financials 19
Slide 20: Committed to Driving Shareholder Value
Committed to Driving Shareholder Value DRIVING LONG-TERM TARGETING LONG-TERM CONTINUING TO GENERATE REVENUE GROWTH OPERATING PROFIT EXPANSION STRONG CASH FLOW 20
Slide 21: Positioned for Long-Term Revenue Growth
Positioned for Long-Term Revenue Growth ANNUAL REVENUE (M) AND EPS FY19-FY22 $1,781 $1,369 $6.90 $1,281 $1,186 PRODUCT DIVERSIFICATION AND EXPANSION OF $4.58 $5.52 HIGH-PERFORMANCE MIXED-SIGNAL CATEGORY $3.99 EXPECTED TO FUEL GROWTH IN THE COMING YEARS $2.64 $3.62 $2.64 $1.46 FY19 FY20 FY21 FY22 GAA
Slide 22: High-Performance Mixed-Signal Products Driving Growth
High-Performance Mixed-Signal Products Driving Growth Future FY22 FY19 12% 33% 50% 50% 88% 67% HPMS Audio Note: Audio and high-performance mixed-signal percent of revenue 22
Slide 23: Solid Track Record of Operating Profit Expansion
Solid Track Record of Operating Profit Expansion 27% 22% • Non-GAAP operating profit margin increased 21% 21% over 10% from FY19 to FY22 17% 16% • Targeting annual operating profit expansion 14% going forward by: 9% § Growing revenue § Capitalizing on R&D efficiencies § Leveraging SG&A FY19 FY20 FY2
Slide 24: Strong and Sustainable Cash Generation
Strong and Sustainable Cash Generation CASH • Q4 FY22 $444M total cash, up from $271M in the prior quarter GENERATION • Generated $1.3B of operating cash flow over last 5 full fiscal years CAPITAL • Continuing to invest in R&D to fuel organic growth ALLOCATION • Focusing on M&A opportunities that st
Slide 25: Financial Results and Outlook
Financial Results and Outlook REVENUE GROSS MARGIN COMBINED RESULTS R&D / SG&A Q4 FY22 $490.0M 52.8% $150.9M (includes $16.8M in stock-based comp, $7.9M in amortization of acquisition intangibles, $3.2M in acquisition-related costs) REVENUE GROSS MARGIN COMBINED GUIDANCE* R&D / SG&A Q1 FY23 $147 – $
Slide 26: Quarterly Revenue Q1 FY21 to Q1 FY23 (M)
Quarterly Revenue Q1 FY21 to Q1 FY23 (M) Audio HPMS 600 $548 $486 $490 500 $466 21% 38% 400 33% $370* $347 35% 19% $294 $277 300 $243 20% 22% 15% 200 79% 62% 67% 81% 65% 80% 78% 100 85% - Q1/FY21 Q2/FY21 Q3/FY21 Q4/FY21 Q1/FY22 Q2/FY22 Q3/FY22 Q4/FY22 Q1/FY23 In Q4 FY22, our largest customer represe
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (unaudited, in thousands, except per share data) (not prepared in accordance with GAAP) Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management beli
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