Cirrus Logic, Inc. · NASDAQ:CRUS
Cirrus Logic — Q4 FY2024 Earnings Presentation
28 slides from Cirrus Logic's earnings presentation, May 7, 2024
Slide 1: Investor Relations Update
Investor Relations Update As of May 7, 2024
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: Industry and Market Data; Use of non-GAAP Financial Information
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 reliab
Slide 4: 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 FY24 revenue: $1.79B Haptics & sensing solutions and application expertise Headquarters in A
Slide 5: 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 6: 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 7: 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 8: Technology & Market Overview
Technology & Market Overview 8
Slide 9: 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 10: Expanding SAM in a Vast Mixed-Signal Market
Expanding SAM in a Vast Mixed-Signal Market Audio Audio $2.6B $3.3B $4.0B $9.0B 2023 High-Performance 2028 High-Performance Mixed-Signal Mixed-Signal $1.4B $5.7B Audio: smart codecs, amplifiers, ADCs, DACs, and DSPs High-Performance Mixed-Signal: battery and power ICs, camera controllers, and haptic
Slide 11: Growing High-Performance Mixed-Signal SAM
Growing High-Performance Mixed-Signal SAM Smartphones Smartphones $1.4B $0.8B $5.7B $3.3B 2023 2028 Other Devices* Other Devices* $0.6B $2.4B This market represents a sizeable opportunity to fuel growth while also driving product and application diversification in the coming years. *Other devices in
Slide 12: 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 13: 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 14: 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 technolog
Slide 15: 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 16: Product Overview
Product Overview 16
Slide 17: 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 18: 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 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 FY21-FY24 $1,898 $1,781 $1,789 $6.90 $1,369 $6.42 $6.59 PRODUCT DIVERSIFICATION AND EXPANSION OF $4.58 HIGH-PERFORMANCE MIXED-SIGNAL CATEGORY $5.52 $4.90 EXPECTED TO FUEL LONG-TERM GROWTH $3.62 $3.09* FY21 FY22 FY23 FY24 GAAP EPS No
Slide 22: Audio and High-Performance Mixed-Signal Revenue Contribution
Audio and High-Performance Mixed-Signal Revenue Contribution Future FY24 FY19 12% 39% 50% 50% 88% 61% HPMS Audio Note: Audio and high-performance mixed-signal percent of revenue 22
Slide 23: Focus on Long-Term Operating Profit Expansion
Focus on Long-Term Operating Profit Expansion 27% 25% 25% • Continue to carefully control discretionary 22% 21% spending while prioritizing R&D investments 19% 17% to address strategic opportunities 13%* • Targeting long-term annual operating profit expansion: § Growing revenue § Capitalizing on R&D
Slide 24: Strong and Sustainable Cash Generation
Strong and Sustainable Cash Generation • Total cash and investments at the end of Q4 FY24 was $700M, up from $587M in the prior quarter CASH • Cash from operations for the quarter was $171M GENERATION • Generated $1.5B of operating cash flow over last 5 full fiscal years CAPITAL • Continuing to inve
Slide 25: Financial Results and Outlook
Financial Results and Outlook REVENUE GROSS MARGIN COMBINED RESULTS R&D / SG&A Q4 FY24 $371.8M 51.8% $140.2M (includes $21.8M in stock-based comp and $2.0M in amortization of acquisition intangibles) REVENUE GROSS MARGIN COMBINED GUIDANCE* R&D / SG&A Q1 FY25 $290M – $350M $142M – $148M 49% – 51% (in
Slide 26: Quarterly Revenue Q1 FY23 to Q1 FY25 ($M)
Quarterly Revenue Q1 FY23 to Q1 FY25 ($M) Audio HPMS $619 $591 600 $541 $481 500 39% 41% $394 38% 400 $373 $372 41% $317 $320* 300 35% 38% 39% 38% 200 61% 62% 59% 65% 59% 100 62% 61% 62% - Q1/FY23 Q2/FY23 Q3/FY23 Q4/FY23 Q1/FY24 Q2/FY24 Q3/FY24 Q4/FY24 Q1/FY25 In Q4 FY24, our largest customer repres
Slide 27: 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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