Cirrus Logic Inc (FRA:CRU)
€ 97 0.5 (0.52%) Market Cap: 5.11 Bil Enterprise Value: 4.80 Bil PE Ratio: 17.58 PB Ratio: 2.86 GF Score: 95/100

Q1 2025 Cirrus Logic Inc Earnings Call Transcript

Aug 06, 2024 / 09:00PM GMT
Release Date Price: €103

Key Points

Positve
  • Cirrus Logic Inc (CRUS) delivered revenue of $374 million, exceeding the top end of their guidance range due to stronger-than-expected shipments into smartphones.
  • The company began ramping production of their next-generation custom boosted amplifier and first 22-nanometer smart codec, marking significant milestones.
  • Cirrus Logic Inc (CRUS) has design wins with each of the top six laptop OEMs worldwide, indicating strong market penetration and future growth potential.
  • The company reported a non-GAAP net income of $62.4 million or $1.12 per share, reflecting higher revenue and profitability.
  • Cirrus Logic Inc (CRUS) ended the quarter with $744.6 million in cash and investments, showcasing a strong balance sheet with no debt outstanding.
Negative
  • Non-GAAP gross margin decreased by 130 basis points sequentially, primarily due to higher supply chain costs related to new product ramps.
  • Non-GAAP operating expenses increased by $1.5 million sequentially and $4.2 million year-over-year, largely due to higher employee-related expenses and variable compensation.
  • Inventory balance increased to $232.6 million, up from $227.2 million in the previous quarter, indicating potential overstock or slower inventory turnover.
  • The company anticipates higher inventory levels in the next quarter to support new smartphone launches, which could impact cash flow and operational efficiency.
  • Cirrus Logic Inc (CRUS) faces risks and uncertainties that may cause actual results to differ materially from projections, as highlighted in their forward-looking statements disclaimer.
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic first quarter fiscal year 2025 financial results Q&A Session. At this time, all participants are in a listen-only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing up will be provided at that time. As a reminder, this conference call is being recorded for replay purposes.

I would now like to turn the call over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may now begin.

Chelsea Heffernan
Cirrus Logic Inc - Vice President, Investor Relations

Thank you and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's President and Chief Executive Officer; and Ulf Habermann, our Interim Chief Financial Officer.

Today at approximately 4:00 pm Eastern Time, we announced our financial results for the first quarter fiscal year 2025. A shareholder letter discussing our financial results, the earnings release and the webcast of this Q&A session are all

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