Cirrus Logic, Inc. · NASDAQ:CRUS
Cirrus Logic — Q2 FY2024 Earnings Presentation
27 slides from Cirrus Logic's earnings presentation, Nov 2, 2023
Slide 1: Investor Relations Update
Investor Relations Update As of November 2, 2023
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 Amplifiers Engineering execution World-class customer support FY23 revenue: $1.90B Haptics & sensing solutions and application expertise Headquarters in A
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. Increasing HPMS content in smartphones 3. Leveraging our strength in audio and HPMS to expand into additional Smartphones applications and markets
Slide 9: Expanding SAM in a Vast Mixed-Signal Market
Expanding SAM in a Vast Mixed-Signal Market Audio Audio $2.4B $3.4B $3.7B $8.4B 2022 High-Performance 2027 High-Performance Mixed-Signal Mixed-Signal $1.3B $5.0B Audio: smart codecs, amplifiers, ADCs, DACs, and DSPs High-Performance Mixed-Signal: haptic & sensing solutions, camera controllers, and b
Slide 10: Growing High-Performance Mixed-Signal SAM
Growing High-Performance Mixed-Signal SAM Smartphones Smartphones $1.3B $0.9B $5.0B $3.6B 2022 2027 Other Devices* Other Devices* $0.4B $1.4B 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 power IC camera camera controllers camera controllers controllers haptic driver haptic driver haptic driver haptic driver amplifiers amplif
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 lighter Present Future Past • Work from home driving desire for better user experience codec codec smart codec • Architectural transition to SoundWireⓇ amplifiers inte
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 • Ultra-low power consumption allows improve performance for extended playback §
Slide 17: High-Performance Mixed-Signal Products
High-Performance Mixed-Signal Products HAPTICS & SENSING BATTERY & POWER ICS CAMERA CONTROLLERS • Ultra-low latency, closed-loop • Advanced switched-capacitor • Custom high-precision, low- boosted driver delivers highly ICs enable fast charging and latency component with an responsive and consistent
Slide 18: Financials
Financials 18
Slide 19: 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 19
Slide 20: Positioned for Long-Term Revenue Growth
Positioned for Long-Term Revenue Growth ANNUAL REVENUE ($M) AND EPS FY20-FY23 $1,898 $1,781 $1,369 $6.90 $6.42 $1,281 PRODUCT DIVERSIFICATION AND EXPANSION OF $4.58 $3.99 $5.52 HIGH-PERFORMANCE MIXED-SIGNAL CATEGORY EXPECTED TO FUEL LONG-TERM GROWTH $3.62 $3.09* $2.64 FY20 FY21 FY22 FY23 GAAP EPS No
Slide 21: Audio and High-Performance Mixed-Signal Revenue Contribution
Audio and High-Performance Mixed-Signal Revenue Contribution Future FY23 FY19 12% 38% 50% 50% 88% 62% HPMS Audio Note: Audio and high-performance mixed-signal percent of revenue 21
Slide 22: Focus on Long-Term Operating Profit Expansion
Focus on Long-Term Operating Profit Expansion 27% 25% 22% • Continue to carefully control discretionary 21% 21% spending while prioritizing R&D investments 17% to address strategic opportunities 14% 13%* • Targeting long-term annual operating profit expansion: § Growing revenue § Capitalizing on R&D
Slide 23: Strong and Sustainable Cash Generation
Strong and Sustainable Cash Generation • Q2 FY24 $352M total cash and cash equivalents, down from $426M in the prior quarter CASH • Cash used in operations for the quarter was $23M GENERATION • Generated $1.3B of operating cash flow over last 5 full fiscal years CAPITAL • Continuing to invest in R&D
Slide 24: Financial Results and Outlook
Financial Results and Outlook REVENUE GROSS MARGIN COMBINED RESULTS R&D / SG&A Q2 FY24 $481.1M 51.3% $140.8M ($21.0M in stock-based comp, $2.3M in restructuring charges associated with the workforce reduction announced in July, $2.2M in amortization of acquisition intangibles, and $0.9M in acquisiti
Slide 25: Quarterly Revenue Q3 FY22 to Q3 FY24 ($M)
Quarterly Revenue Q3 FY22 to Q3 FY24 ($M) Audio HPMS $591 600 $548 $541 $540* $490 500 $481 41% 38% $394 38% 400 33% $373 41% $317 35% 300 38% 38% 200 62% 67% 62% 59% 65% 59% 100 62% 62% - Q3/FY22 Q4/FY22 Q1/FY23 Q2/FY23 Q3/FY23 Q4/FY23 Q1/FY24 Q2/FY24 Q3/FY24 In Q2 FY24, our largest customer repres
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (in thousands, except per share data; unaudited) (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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