Q4 2025 Cirrus Logic Inc Earnings Call
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Speaker Change: Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic fourth quarter and full fiscal year 2025 financial results Q&A session.
Speaker Change: At this time, all participants are in a listen-only mode. After a brief statement, we will open up the call for questions for Manellists. Instructions for queuing up will be provided at that time.
Speaker Change: As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference call over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may begin. The conference call over to Ms. Chelsea Heffernan.
Chelsea Heffernan: Thank you and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's Geese Executive Officer and Jess Wallard, or Chase Financial Officer
Speaker Change: Today, at approximately 4 p.m. eastern time, we announced our financial results for the fourth quarter in full fiscal year 2025.
Speaker Change: The shareholder letter discussing her financial results, the earnings press release and the webcast of this Q&A session are all available at the company's investor relations website.
Speaker Change: This call will feature questions from the analyst covering our company. Additionally, the results and guidance we will discuss on this call will include non-GAAP financial measures that exclude certain items.
Speaker Change: Reconciliation of these non-GAAP measures to their most directly comparable GAAP measures are included in our earnings release and are all available on the company's Investor Relations website.
Speaker Change: Please note that during this session, we may make projections in other forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from projections.
Speaker Change: By providing this information, the company expressly disclaims any obligation to update or revise any projections or forward-looking statements whether as a result of new developments or otherwise.
Speaker Change: Please refer to the press release and journal or letter issued today, which are available on the Cirrus Logic website and the latest form 10k.
Speaker Change: Thank you Chelsea, and thank you everyone for joining today's call.
Speaker Change: First, let me start by saying welcome to Jeff Woolard who is joining us for his first earnings call with Cirrus Logic
Speaker Change: Since we announced Jeff joining Cirrus back in February , I've learned from the many messages I've received just how highly Jeff is regarded by others in our industry. He brings extensive experience and deep domain knowledge to Cirrus, and we're thrilled to have him as part of the team.
Speaker Change: Moving on to company performance, as you've seen in the press release in the March quarter, Cirrus Logic delivered revenue of $424.5 million above the top end of our guidance range.
Speaker Change: For the full fiscal year 2025, Cirrus Logic delivered revenue of $1.9 billion, up 6% year-over-year given by revenue associated with our latest generation products and higher smart-footed unit volumes.
Speaker Change: We are also proud to have delivered record gap and non-GAAP earnings per share for the full fiscal year. Additionally, during the year we returned $261 million of cash to shareholders in the form of share repurchases. Another record for Cirrus Logic for a full fiscal year.
Speaker Change: In a moment, I'll hand the call over to Jeff to walk us through the financial results for the March quarter and the full fiscal year in greater detail.
Speaker Change: But before I do that, I want to touch on the current macroeconomic environment and the subject of tariffs.
Speaker Change: As I think everyone is aware, the situation is highly dynamic and future trade actions could potentially impact our business.
We are closely and thoughtfully monitoring developments.
Speaker Change: which we believe will help position the company and our customers to manage potential longer-term challenges stemming from the current trade environment.
Speaker Change: Now, turning to our progress, I'd like to highlight some of the serious teams' accomplishments over the past four quarters
Speaker Change: As many of you are aware, our long-term strategy for growth at Cirrus is based on three principles
Speaker Change: The first of those is maintaining leadership in our core flagship smartphone audio business.
Speaker Change: The second, expanding the value and range of high performance mixed signal functionality, in which we serve our customers in smart phones and similar products.
Speaker Change: And the first principle is to leverage that world-class expertise and intellectual property in both audio and high performance mix signal areas in order to grow and broaden our business in new markets.
Speaker Change: I want to now speak to our recent progress in each of those areas
Speaker Change: In our flagship smartphone audio business over the past year, most notably, we began shipping two new generation products, a boosted amplifier and a smart codec.
Speaker Change: The Boosted Amplifier introduced a highly innovative new architecture, significantly improving system performance and efficiency while saving board space and delivering enhanced value to our customer.
Speaker Change: The smart codec, the Cirrus Logic's first 22 nanometer product, and delivers meaningful advances in audio and mixed signal processing capabilities.
Speaker Change: These new components represent the culmination of years of engineering dedication and close collaboration with our customers.
Speaker Change: We anticipate that the products will ship from multiple smartphone generations, providing a sustained revenue contribution in the coming years and allowing us to target our R&D resources on customer needs in new areas where we believe we can drive further innovation and growth.
Speaker Change: Looking beyond audio and smartphones, we also made significant investments in certain high-performance mix signal areas, where we believe our mix signal design and signal processing expertise can meaningfully enhance our customers' products.
Speaker Change: Our progress in this area is evident in the continued success of our camera controller product life and this year we benefited from an increase in unit shipments of our camera controllers.
Speaker Change: We also believe that advanced battery and related technologies represent excellent opportunities for us. And during the year, we continue to invest in several exciting R&D programs that are focused on these areas.
Speaker Change: While new product introductions in these domains are a little further out, we made excellent progress in the development of key intellectual property in these areas in FY25.
Speaker Change: Our approach to running the business is to manage and invest for the long term, and we anticipate that the investments that we are making in these areas today will contribute to product diversification and the expansion of our revenue opportunities in the future.
Speaker Change: The third element of our strategy is growing in new applications and markets outside of smartphones.
Speaker Change: We continue to be excited about the opportunities we see in the laptop business and we have currently on track with our expectations in this market.
Speaker Change: During the year we passed several important milestones, which included securing our first high volume mainstream design win with our latest PC codec.
Speaker Change: Increasing our direct engagement with PC OEMs, delivering new generation products to our customers, significantly expanding our pipeline of design winds and our funnel of opportunities, and further expanding our presence in leading reference designs.
Beyond laptops, we also invested in our general market business.
Speaker Change: which spans a large number of customers across the professional audio, automotive, industrial
Speaker Change: Following the launch of our latest generation of analog to digital converters last year, this fiscal year we also added a series of new digital to analog converters and an ultra high performance audio codec to this product family.
Speaker Change: We also sampled our latest timing products at a family of high-performance analog front-end products.
targeting imaging applications
Speaker Change: These components all offer sustained differentiation with enhanced performance, lower power consumption and new features.
Speaker Change: and we've received that standing customer feedback on each of them.
Speaker Change: We believe they can be valuable contributors to our profitability in years to come
Speaker Change: To summarize our progress over the past year, we're proud to have delivered strong financial results while also continuing our track record of combining innovation with disciplined execution.
Speaker Change: With an extensive intellectual property portfolio and our design innovation in both existing and new technology areas, we believe Cirrus Logic is well positioned to continue to diversify our product portfolio and to expand our addressable market in the future.
Speaker Change: And with that, let me now turn the call over to Jeff to provide some color on our financial results for the fourth quarter and the fourth fiscal year 2025, as well as the outlook for the first quarter of fiscal 2026.
Jeff Woolard: Thank you, John . Good afternoon, everyone. I'll start with a summary of our financial results for both our fiscal Q4 as well as our full fiscal year 2025 and then provide guidance for our Q1 fiscal year 2026.
Jeff Woolard: Revenue in Q4 fiscal year 2025 was above the high end of guidance range at 424.5 million as a result of stronger than expected smartphone
Jeff Woolard: On a sequential basis, revenue was down 24% due primarily to reduction in smartphone volumes.
Jeff Woolard: On a year-over-year basis, revenue was up 14%, due to our higher smartphone unit volumes as well as an increase in revenue associated with our latest generation products.
Jeff Woolard: fiscal year 2025 revenue of 1.9 billion with up to 6% from a year ago. The increase was driven by revenue associated with our latest generation products and higher smartphone unit volumes.
Jeff Woolard: Turing to Gross Profit and Gross Margin, Non-Jap Gross Profit in the March quarter was $227.1 million, and Non-Jap Gross Margin was 53.5%.
Jeff Woolard: On a year-over-year basis, gross margin increased largely due to more favorable product mix.
Jeff Woolard: non-GAAP Gross Profits for the fiscal year 2025 was $997.4 million, and non-GAAP Gross margin was 52.6%.
Jeff Woolard: The year-over-year increase in gross margin reflects a more favorable product mix. This is partially offset by unfavorable inventory reserve expense and higher supply chain costs.
Now I'll turn to operating expenses [inaudible]
non-GAAP Operating Expenses for the Fourth Quarter, or 120 million
Jeff Woolard: On a sequential basis, OptX was down 9.2 million, primarily due to lower employee related expenses, variable compensation, and product development costs, which were largely associated with the timing of tape-outs.
Jeff Woolard: On a year-over-year basis, operating expense was up $3.5 million, mostly due to higher employer-related expenses and variable comp.
Jeff Woolard: The increase was partially offset by a reduction in product development costs, primarily associated with development and qualification of new products.
Jeff Woolard: non-GAAP Operating Income for the Quarter was 107.1 million, or 25.2% of revenue.
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Jeff Woolard: For fiscal year 2025, non-GAAP operating expenses were 494.1 million, up 23.7 million, primarily due to an increase in employer-related expenses and variable compensation [inaudible]
Jeff Woolard: non-GAAP operating income for the fiscal year 2025 was $503.3 million as a result fiscal year 2025 operating margin came in at 26.5% up from 25% the prior year.
Turning now to taxes [inaudible]
Jeff Woolard: For the March quarter, our non-GAAP tax rate was 21.7%. However, for fiscal year 2025, non-GAAP effective tax rate was approximately 22.5% for the lower end of our guidance range.
Jeff Woolard: And lastly, on the PNL, non-GAAP Net Income, in the fourth quarter, was $90.6 million or $1.67 cents per share.
Jeff Woolard: For fiscal year 2025, non-GAAP net income was $416.6 million, resulting in record earnings per share of $7.54 up from $6.59 in our fiscal year 2024.
Let me now turn the ballacy [inaudible]
Jeff Woolard: Our balance sheet continues to remain strong and we ended the fiscal year 2025 with nearly 800 to 35 million in cash and in that one.
Jeff Woolard: Our ending cash balance was up 134.9 million from the prior year, primarily due to strong cash flow from Operation, which was partially offset by stocked repurchases.
We continue to have note that outstanding.
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Jeff Woolard: Cumentary balance at the end of the fourth quarter was 299.1 million from 275.6 million in Q3 just a figure of 2025.
Speaker Change: Days of Inventory with up 40 days sequentially and we ended the quarter with approximately 138 days of inventory
Speaker Change: Looking ahead in Q1 fiscal year 2026, we expect inventory to decrease slightly as we continue to fulfill the man and manage our wafer purchase commitments for our long-term capacity agreement with global founders.
Speaker Change: Turning to Caslow, Caslow from Operations was 130.4 million in the March quarter, and CapEx was approximately 9.2 million, resulting in a non-GAAP free Caslow margin to the quarter of approximately 29%.
Speaker Change: For the 12 month period ending in the March quarter, cash flow from operations was $444.4 million and CAPEX was approximately $28.8 million, resulting in a non-GAAP free cash flow margin of 22%.
Speaker Change: On the share buyback front in Q4, we utilized $100 million to repurchase approximately 927,000 shares of our common stock at an average price of $107.85
Speaker Change: of $112.33. At the end of Q4 fiscal year 2025, the company had $54.1 million remaining on its July 2022 Sherry Purchased Authorization.
Speaker Change: Subsequent to Q4, fiscal year 2025, the company utilized an additional $25 million to repurchase approximately 297,000 shares at an average price of $84.26 under a rule 10b-5-1 trading
Speaker Change: Furthermore, in March 2025, the Board of Directors authorized the company to repurchase up to an additional 500 million of Cirrus Logic common stock.
Speaker Change: We expect to continue to return capital in the form of stock repurchases, which we believe provide a long-term benefit to shareholders going forward.
Speaker Change: Before we provide guidance for the first quarter, I would like to reiterate what John said earlier. We are closely monitoring the current macroeconomic and trade environment, including the potential impact of tariffs. Our outlook for the upcoming quarter is based on our current assessment of the environment as it stands today.
and now to guidance.
Speaker Change: For Q-1 fiscal year 2026, we expect revenue in a range of 330 million to 390 million down 15 percent sequentially and 4 percent year-over-year at the midpoint [inaudible]
Speaker Change: We expect Gross Margin to range from 51 to 53% [inaudible]
Speaker Change: non-GAAP Operating Expense is expected to range from $119,000,000 to $125,000,000 subsequently largely due to employee expenses.
Speaker Change: We expect our fiscal year 2026 non-GAAP tax rate to be approximately 21 to 23%.
Speaker Change: In closing, we delivered solid financial results and made significant progress, executing on our strategy to drive product and revenue diversification. Going forward, we will continue to invest in our existing business and key areas that we believe will grow a shareholder value.
Speaker Change: And before we begin Q&A, I would like to note, while we understand there is interest related to our largest customer, in accordance with Cirrus Logic company policy, we will not discuss specifics about our business relationship. With that, let me turn the call over to Chelsea to start the Q&A session.
Jeff Woolard: Thanks, chefs. We will now start the Q&A question of the earnings call. Please limit yourself to a single question in one follow-up. Operator, we are now ready to take questions.
Speaker Change: Thank you. If you would like to ask a question, please press star one on your telephone T-pad. Please ensure you are not on speakerphone and that your phone is not on mute when called upon. Thank you.
Speaker Change: Your first question comes from Gary Mobley with Loop Capital. Your line is open.
Good afternoon, everybody. Thanks for taking my question.
Speaker Change: I didn't see your 10k filing, perhaps it's not out yet, but maybe you can give us...
Speaker Change: A preview into what your largest customer represented for your fiscal year 25 revenue and then more broadly, you know, for all your customers, did you see any pull forward in the fourth quarter in their production, perhaps to get out of some parent dates.
Speaker Change: Gary, on the customer concentration figure for the full year, I think that's 89%.
Speaker Change: And regarding the pull forwards, within a march quarter, it's obviously difficult for us to determine with certainty without a very accurate view of self-route.
Speaker Change: But we believe we saw it to a very limited extent.
That's to say...
Speaker Change: Some of our customers, I think, pulled forward some quantity of shipments seemingly very small into the March quarter in order to have additionally inventory in light of anticipated tariffs.
Speaker Change: But we don't believe we saw any clear signs that there were pull-ins of the size that were material to the results that we're reporting today.
Speaker Change: and it's worth keeping in mind on that front, that of course the tariff themselves were announced after the end of the March quarter, so we believe that was a very limited impact on these numbers.
Okay.
Speaker Change: Thank you, John . It's my follow-up. I wanted to ask for a progress support on your PC-related traction. Now that we're at a...
Speaker Change: You know, end of the fiscal year and maybe you can give us a sense of the materiality of it for the full fiscal year and perhaps what you may be counting on for the current fiscal year we're just now starting.
Yeah, absolutely!
Speaker Change: We're definitely still very pleased with our progress here and excited by the opportunity ahead of us.
Speaker Change: In fiscal 26, we expected double our fiscal 25 revenue in the laptop space as we see more designs coming to market and then as we look further forward, we believe that that revenue number will continue to grow in the years to come.
Speaker Change: Over the past year, we also saw a significant expansion of our funnel of design activity which, as you know, is a very good leading indicator of progress.
Speaker Change: So, to give some color around that on that front, we saw the number of programs of programs.
Speaker Change: and the number of skews that we're part of continue to increase over the period.
We were shipping in a high double digit number of skews.
Speaker Change: We grew that significantly in 25, in fiscal 25, and in fiscal 26 we expect to be shipping in well over 150 different skews across the major laptop OEMs.
Speaker Change: products and categories beyond the flagship and the premium categories. So as we penetrate into the mainstream product categories, we also expect that the volumes and hence revenues will increase.
Speaker Change: So between those indicators in the funnel and the revenue and then our continued close partnerships on reference designs, we certainly think we're very well placed for sustained growth in the future in this space.
Thanks again.
Speaker Change: The next question comes from Christopher Rolland with Susquehanna. Your line is open.
Speaker Change: Hi, this is Aaron Nacto and for Chris Rolland. Thanks for taking the question. You had previously talked about HPMS surpassing audio. Is that still the expectation and is there rough time frame for that transition?
Speaker Change: Audio and HPMS have had this 60-40 split for some time, so when do you foresee that kind of flipping?
Yes, thanks Aaron.
Speaker Change: To the first part of the question, I do see that.
Happening Over Time
Speaker Change: I haven't put a particular time frame on it. As long as we can continue to grow both, we're not going to get too worked up about what point that transition takes place. I've highlighted that in the past really as a way of educating that we believe.
Speaker Change: HPMS opens up a ton of new Sam expansion and growth opportunity for us and that's been a very important part of the company's story over the past few years and it will continue to be
going forward.
I think we're at a period where...
Speaker Change: To your point, yes, there's a bit of a pause in that ratio, HPMS have been growing very rapidly, and we're in a bit of a pause in that ratio between the two, but that's put that in context. A lot of that is because we're in a year where we've undergone a major refresh of our audio-based content.
Speaker Change: who represented a step up in the value of the audio content, which obviously has an
Speaker Change: and many more. Thank you for watching. I hope you enjoyed this video. If you did, please click the Like button and subscribe to my channel. I'll see you in the next video.
Speaker Change: Great, and that's my follow-up. Auto is a new market for you guys so how larger of an opportunity is this for the company and when can you start seeing revenues here?
Speaker Change: So, we've actually been shipping products into audio for some time, but they have principally been what we would regard as legacy products.
Speaker Change: The reason you've heard a little bit more from us on this topic more recently is because we've started to refresh some of those products and look at where there may be other additional opportunities in the automotive space for us.
Speaker Change: So, I guess some of the examples there would be the timing products we announced late last year, which we've already seen very good customer engagement and some adoption of in the auto space.
Speaker Change: and we've also launched in the past year new high-performance audio products where one of the key target markets for those is again in the automotive space.
We do think there's-
Speaker Change: A good long term opportunity here. I'm going to head you a little on the time frame for that becoming a real needle mover because of course auto can take a while but the foundations are very attractive to us. We believe we can bring innovative audio solutions.
Timing Solutions, Haptic Solutions
Speaker Change: and products in other areas that can really make a difference in automotive.
and when we...
Speaker Change: It's kind of a step back from it and look at the overall opportunity. It certainly has the potential to represent, you know, the best part of a billion-dollar additional samfras in the coming years.
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Speaker Change: Once again, ladies and gentlemen, if you have a question, it is Star One on your telephone keypad.
Speaker Change: Your next question comes from Thomas O'Malley with Bart Leeds. Your line is open.
Thomas O'malley: Hey guys, thanks for taking my question. I wanted to understand.
Thomas O'malley: to the extent that you can camera controller content roadmap in the future. Obviously you don't talk about specific customers, but I had to notice from some tear downs over the last couple of months that it does look like you've seen some proliferation in the low end of the portfolio with camera controller content. So, like...
Thomas O'malley: You know, should we be thinking about, you know, the future of camera controllers being something where you need...
Thomas O'malley: and multiple across each camera. Have you kind of reached a point where that doesn't continue? But to the best of your extent like, you know, to the best of your ability, can you kind of describe, you know, where does that camera controller content hit a wall just because I'm seeing some really nice games that are already and will surprise you see it this year as well. You guys haven't talked about it at the low end at least. [inaudible]
Speaker Change: Yeah, thanks, Tom. I guess one thing you may be alluding to there is that when we had the last call there was a certain product which wasn't on the market and haven't been torn down for many by anybody which is now on the market.
Speaker Change: and represents the first time we've had camera controller content in a lower priced phone from one of our more significant customers. And we're obviously delighted about that. That was pretty significant to us, but then to your broader question, we see...
Speaker Change: A considerable continued opportunity in this space. I think the way to think about it is that there are at least three vectors by which we...
Speaker Change: can grow value here. One, of course, is attach rate and as attach rate increases, that's good for us but you may also be thinking about.
Whether or not that represents [inaudible]
Speaker Change: Saturation, however, we've also seen in the evolution of our camera control as generation by generation.
Speaker Change: that there is value in increasing the processing that the product can do and in providing, for example, additional channels to drive more lens elements or increase drive strength to drive different.
of mechanical components within the camera assembly.
Speaker Change: All of those things have been a part of the story of what got us to where we are today with camera controller content.
Speaker Change: Gotcha, super helpful. And if I look at the last fiscal year, you guys look like you grew your largest customer nearly double digits Which is kind of what you describe very strong content year to the point that you were just making
Speaker Change: about audio versus HPMS, obviously, there's some in both, but a big contributing factor there. If you look at the future and you look at content broadly,
Speaker Change: When you look at the next fiscal year, can you, just as we're starting here, give us a feel for what we should be thinking about. You were very communicative last year, obviously the Kodak and the AMP upgrades, but this year, I think there's just been a little less detail to the extent that you can, you know, give us a little color on just the base case expectations for this year. That would be super helpful. Thank you.
Speaker Change: Yeah, sure, look, I think I actually have been communicative. It may just not be quite so much of an eye catching story this cycle, but to be clear...
Speaker Change: We're always working a very, very thoughtful line. We do not want to disclose anything about our customers products, obviously. And this year, for us, it's more of a waterfall year. We're on the back of the very big.
Audio component refresh across the major audio components
Speaker Change: And as we get into further cycles of those products being in the market, representing more of the skews that are on sale, that's all good for us, so that's very attractive. And then, as we go forwards...
Speaker Change: You know, in future years we do believe there's opportunity to continue to grow value as I said in the camera controller space and then we think long term there's plenty of growth opportunity in power and battery related features as well [inaudible]
Operator, this will be our last question [inaudible]
Speaker Change: Thank you. Your last questions will come from Tore Svanberg with stifle. Your line is open.
Torres Vanburg: Yes, thank you. John , I know your comment then on maybe some pull-ins.
Torres Vanburg: from Customers in the March quarter. What about what you've seen so far in the June quarter?
Speaker Change: Obviously, you know, anything that is, you know, inflected to your guidance, but just wondering if you've seen any abnormal behavior and bookings from your customers, and what are some of the variables that you are contemplating as we navigate through this quarter? Is it mainly your, you know,
Speaker Change: Customers moving manufacturing, or what exactly are you eyeing to get a better read and what's going on in your term?
Jeff Woolard: Yeah, this is Jeff. For the June quarter, we're guiding with what we see from what our customers are telling us.
Jeff Woolard: You know, are they pulling in or not? You know, it looks pretty normal from a quarter for us.
Jeff Woolard: So, things look relatively stable as far as the geographic question [inaudible]
Jeff Woolard: You know, customers have been trying to diversify and move some of their supply chains and our approaches. You know, we are geographically distributed, we are trying to increase that, but we want to make sure we engage with our customers, you know, where their supply chain is and where they need us.
Speaker Change: Great. Thank you for that, Jeff. And for you, John , I know you mentioned that you're sharing the later some of these general purpose of general market products. What exactly are your ambitions there? I mean, is this something that eventually can become, you know, 10% of your revenues. I mean, I know that's probably premature now, but it does sound like you're trying to leverage.
Speaker Change: You know, your IP to do more. And related to that, I also saw you sampling some timing products. Is that type of the IP that you had for men's space? Microphones or these completely different IP blocks?
Speaker Change: Yeah, Tore, on the timing side, no completely different, completely non-man's, and happy that that's the case. But regarding the more general...
Comment about that part of our business.
Speaker Change: Could it be 10% in the long run? I don't see why not. If we look at that...
Speaker Change: I guess if I back up, I can explain to you what we're trying to do there and how we got here. We historically had a kind of long tail catalog business.
Speaker Change: which certainly has in the past for a presented, you go back a bit, has been like 15% of our business at one point.
Speaker Change: But it was relatively uninvested in and the reason for that was when we were a smaller company with less R&D bandwidth, we were just running to keep up with our largest customers.
As we've we've scaled and as we've seen
Speaker Change: Our IP and the kind of catalog of IP that we have expand further and further, we've recognized that there are opportunities in that space to leverage some of what we have and kind of breathe more life into some of the business that we've got there. So, certainly the case when we're
Speaker Change: doing a lot of custom silicon for some of our largest customers, but those can be very kind of sinusoidal in terms of the resource demands on the organization, so you go through periods where you need a huge spike in...
Speaker Change: in R&D Bandwidth, and then that backs off, and you have something of a...
To what extent we could exploit that?
Speaker Change: Along with the cutting-edge IP, we've been developing in a lot of our kind of larger business to go after segments within that kind of general market business and today that's produced some very good results. If you judge those results by...
Customer Engagement and Customer Adoption
Across a series of very high performance audio products.
Speaker Change: Analog Front Ends for Imaging Applications in a variety of verticals.
Speaker Change: We've really had a lot of interest there and so any one of those doesn't move the needle from a revenue point of view but they are really healthy gross margin well above the the corporate average gross margin and they run for a very long time and you know once they get designed in they typically run and run
Speaker Change: So our approach there is that over time as we continue to leverage our IP and resources to build that up, it can be a very, very healthy complement to the rest of our business.
Speaker Change: Great, with that, we'll end the Q&A session and I will now turn the call back to John for closing remarks. Thanks, Chelsea.
Speaker Change: In summary, we're pleased to have reported solid results for the quarter and to have made significant progress across our main areas of strategic focus in fiscal 2025.
Speaker Change: I'd like to extend my appreciation to the entire Cirrus Logic team and to our supply chain partners and our customers around the world.
Speaker Change: That commitment, support and partnership coupled with our outstanding execution drove these results.
Speaker Change: We're excited about the opportunities in front of us and we thank you for your continued interest in our progress.
I'd like to thank everyone for participating today. Goodbye.
Speaker Change: This is today's conference call. Thank you for joining and we now have to connect.
Speaker Change: and many more. Thank you for watching. I hope you enjoyed this video. If you did, please subscribe to my channel and give it a thumbs up. I'll see you in the next video.