On August 6, 2024, Cirrus Logic Inc (CRUS, Financial) released its 8-K filing for the first quarter of fiscal year 2025, ending June 29, 2024. The company, a leading provider of integrated circuits for audio and voice signal processing applications, reported revenue of $374.0 million, significantly surpassing the analyst estimate of $318.71 million. Additionally, the company posted GAAP earnings per share (EPS) of $0.76 and non-GAAP EPS of $1.12, both exceeding the estimated EPS of $0.92.
Company Overview
Cirrus Logic Inc is renowned for its low-power, high-precision mixed-signal processing solutions, primarily catering to audio and voice signal processing applications. The company's product portfolio includes amplifiers, codecs, smart codecs, analog-to-digital converters, digital-to-analog converters, standalone digital signal processors, camera controllers, haptics and sensing solutions, and battery and power ICs. A significant portion of its revenue is generated from China, with the remainder coming from the United States, Europe, South Korea, and other global markets.
Performance Highlights
Cirrus Logic Inc's performance in Q1 FY25 was driven by stronger-than-expected shipments into smartphones, which led to revenue exceeding the top end of the company's guidance range. The company also began ramping production of its custom boosted amplifier and first 22-nanometer smart codec ahead of new smartphone launches expected later this year. This strategic move is anticipated to bolster future revenue streams.
“Cirrus Logic delivered revenue above the top end of our guidance range in the June quarter driven by stronger-than-expected shipments into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer.
Financial Achievements
For the first quarter of FY25, Cirrus Logic Inc reported:
- Revenue of $374.0 million
- GAAP gross margin of 50.5% and non-GAAP gross margin of 50.6%
- GAAP operating expenses of $142.1 million and non-GAAP operating expenses of $118.0 million
- GAAP EPS of $0.76 and non-GAAP EPS of $1.12
These achievements are crucial for Cirrus Logic Inc as they reflect the company's ability to capitalize on market opportunities and maintain robust financial health in the competitive semiconductor industry.
Income Statement Summary
| Metric | Q1 FY25 | Q4 FY24 | Q1 FY24 |
|---|---|---|---|
| Revenue | $374.0 million | $371.8 million | $317.0 million |
| Gross Profit | $188.9 million | $192.6 million | $159.4 million |
| Net Income | $42.1 million | $44.8 million | $15.6 million |
| GAAP EPS | $0.76 | $0.81 | $0.28 |
| Non-GAAP EPS | $1.12 | $1.24 | $0.67 |
Balance Sheet and Cash Flow Highlights
Cirrus Logic Inc's balance sheet remains strong with total assets of $2.27 billion, including $491.4 million in cash and cash equivalents. The company reported total liabilities of $418.0 million and stockholders' equity of $1.85 billion. The cash flow statement indicates net cash provided by operating activities of $87.2 million, with free cash flow of $77.0 million for the quarter.
Business Outlook
Looking ahead to the second quarter of FY25, Cirrus Logic Inc expects revenue to range between $490 million and $550 million. The company forecasts a GAAP gross margin between 50% and 52%, and combined GAAP R&D and SG&A expenses between $149 million and $155 million, including approximately $22 million in stock-based compensation expense and $2 million in amortization of acquired intangibles.
“With a compelling roadmap of products and an outstanding track record of execution, we believe we are well-positioned to grow long-term shareholder value,” added Forsyth.
Cirrus Logic Inc's strong financial performance and strategic initiatives underscore its potential for sustained growth and value creation in the semiconductor industry. For more detailed insights, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Cirrus Logic Inc for further details.
