Q1 2026 Cirrus Logic Inc Earnings Call - Q&A

August 5, 2025

John Forsyth: Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic First Quarter Fiscal Year 2026 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 conference over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may begin.

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic First Quarter Fiscal Year 2026 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 conference over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may begin.

John Forsyth: Ladies and gentlemen, thank you for standing by. Welcome to the CIRRUS LOGIC first quarter, fiscal year 2026 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 conference over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may begin.

Ladies and gentlemen, thank you for standing by. Welcome to the service logic first quarter fiscal year 2026 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. We'll be provided at that time. As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference over to miss Chelsea heeran, vice president of investor relations. Miss hefton. You may begin.

Chelsea Heffernan: Thank you and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's Chief Executive Officer, and Jeff Woolard, our Chief Financial Officer. Today at approximately 4:00 PM Eastern Time, we announced our financial results for the first quarter for fiscal year 2026. The shareholder letter discussing our financial results, the earnings press release, and the webcast of this Q&A session are all available at the company's Investor Relations website. This call will feature questions from the analysts covering our company. Additionally, the results and guidance we will discuss on this call will include non-GAAP financial measures but exclude certain items. Reconciliations 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.

Chelsea Heffernan: Thank you and good afternoon. Joining me on today's call is John Forsyth, CIRRUS LOGIC's Chief Executive Officer, and Jeff Woolard, our Chief Financial Officer. Today, at approximately 4:00 PM Eastern Time, we announced our financial results for the first quarter of the fiscal year 2026. The shareholder letter discussing our financial results, the earnings press release, and the webcast of this Q&A session are all available at the company's Investor Relations website. This call will feature questions from the analysts covering our company. Additionally, the results and guidance we will discuss on this call will include non-GAAP financial measures but exclude certain items. Reconciliations 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.

Thank you and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's Chief Executive Officer, and Jack Ward, our Chief Financial Officer. Today, at approximately 4 PM Eastern Time, we announced our financial results for the first quarter of the fiscal year 2026.

Chelsea Heffernan: Please note that during this session, we may make projections and other forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from projections. 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. Please refer to the press release and the shareholder letter issued today, which are available on the Cirrus Logic website and the latest Form 10-K, as well as other corporate filings registered with the Securities and Exchange Commission for additional discussion of risk factors that could cause actual results to differ materially from current expectations. Now I'd like to turn the call over to John.

Chelsea Heffernan: Please note that during this session, we may make projections and other forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from projections. 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. Please refer to the press release and the shareholder letter issued today, which are available on the CIRRUS LOGIC website and the latest Form 10-K, as well as other corporate filings registered with the Securities and Exchange Commission for additional discussion of risk factors that could cause actual results to differ materially from current expectations. Now I'd like to turn the call over to John.

The shareholder letter, discussing our financial results, the earnings press release and the webcast of this Q&A session or all available at the company's investor relations website, this call Will feature questions from the analysts covering our company. Additionally, the results and guidance. We will discuss on this call will include non-gaap Financial measures that exclude certain items. Reconciliations 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.

Please note that during the session, we may make projections and other forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from projections by providing this information. The company, expressly disclaims, any obligations to update or revise, any projections, or forward-looking statements whether as a result of new developments or otherwise,

John Forsyth: Thank you, Chelsea, and welcome to everyone joining today's call. As you have seen in the press release, in the June quarter, Cirrus Logic delivered revenue of $407.3 million, above the top end of our guidance range, driven primarily by strong end demand for smartphones incorporating our silicon. In a moment, I'll hand the call over to Jeff to discuss the financial results for the June quarter in detail, along with our outlook for the September quarter. Before we get to that, I'd like to make a few comments about the recent progress we've been making across our business. As many of you are aware, our long-term strategy for growth at Cirrus is based around three principles. First, we seek to maintain a strong leadership position in our core flagship smartphone audio business.

John Forsyth: Thank you, Chelsea, and welcome to everyone joining today's call. As you have seen in the press release, in the June quarter, CIRRUS LOGIC delivered revenue of $407.3 million, above the top end of our guidance range, driven primarily by strong end demand for smartphones incorporating our silicon. In a moment, I'll hand the call over to Jeff to discuss the financial results for the June quarter in detail, along with our outlook for the September quarter. Before we get to that, I'd like to make a few comments about the recent progress we've been making across our business. As many of you are aware, our long-term strategy for growth at CIRRUS is based around three principles. First, we seek to maintain a strong leadership position in our core flagship smartphone audio business.

Please refer to the press release in the shareholder letter issued today, which are available on the Sarasota website and the latest form 10K. As well as other corporate filings, registered with the Securities and Exchange Commission, for additional discussion of risk factors. That could cause actual results to differ materially from current expectations. Now, I'd like to turn the call over to John.

Thank you, Chelsea, and welcome to everyone joining today's call.

as you have seen in the press release in the June quarter, serious logic delivered, revenue of 407.3 million

above the top end of our guidance range driven primarily by strong and demand for smartphones. Incorporating our silicon

In a moment, I'll hand the call over to Jeff to discuss the financial results for the June quarter in detail, along with our outlook for the September quarter.

Before we get to that, I'd like to make a few comments about the recent programs. We've been making across our business.

As many of you are aware, our long-term strategy for growth at Cirrus is based around three principles.

John Forsyth: Second, we aim to expand the value and range of high-performance mixed-signal solutions with which we serve our customers in smartphones and similar products. And third, we are increasingly leveraging our world-class expertise and IP in both audio and high-performance mixed-signal areas to grow and broaden our business in new markets. I want to now speak to our recent progress in each of these areas. In our flagship smartphone audio business, during the quarter, we were pleased with the positive impact of our latest generation custom boosted amplifier and our first 22 nanometer smart codec. These components enable exceptional audio and voice experiences, along with significant power and efficiency improvements over previous generation products. We are proud to see these new devices contribute to the remarkable performance of our customers' products. Outside of our custom audio solutions, we also continue to serve customers in the Android ecosystem.

John Forsyth: Second, we aim to expand the value and range of high-performance mixed signal solutions with which we serve our customers in smartphones and similar products. And third, we are increasingly leveraging our world-class expertise and IP in both audio and high-performance mixed signal areas to grow and broaden our business in new markets. I want to now speak to our recent progress in each of these areas. In our flagship smartphone audio business, during the quarter, we were pleased with the positive impact of our latest-generation custom-boosted amplifier and our first 22-nanometer smart codec. These components enable exceptional audio and voice experiences, along with significant power and efficiency improvements over previous-generation products. We are proud to see these new devices contribute to the remarkable performance of our customers' products. Outside of our custom audio solutions, we also continue to serve customers in the Android ecosystem.

First, we seek to maintain a strong leadership position in our core Flagship smartphone audio business second. We aim to expand the value and range of high performance, mixed signal Solutions with which we serve our customers in smartphones and similar products.

And third we are increasingly leveraging. Our world-class expertise and IP in both audio and high performance. Mix signal areas to grow and broaden our business in New Markets.

In our Flagship smartphone audio business during the quarter, we were pleased with the positive impact of our latest generation custom boosted amplifier and our first 22, NM smart codec.

These components enable exceptional audio and voice experiences, along with significant power and efficiency improvements over previous-generation products.

We are proud to see these new devices contribute to the remarkable performance of our customers' products.

John Forsyth: While the majority of our general market R&D efforts are directed toward developing products for new markets, we continue to enjoy success and strong customer relationships in Android and expect new flagship smartphones featuring our components to launch in the second half of the calendar year. Looking beyond audio, we're excited about the potential to grow content in smartphones with our high-performance mixed-signal solutions, where we see a meaningful opportunity to not only expand our addressable market but also to diversify our revenue. Our progress in this area has been demonstrated through the continued success of our Camera Controller product line. We see considerable potential to add further value in this area as we identify more opportunities to enhance system performance and help enable advanced camera functionality.

John Forsyth: While the majority of our general market R&D efforts are directed toward developing products for new markets, we continue to enjoy success and strong customer relationships in Android and expect new flagship smartphones featuring our components to launch in the second half of the calendar year. Looking beyond audio, we're excited about the potential to grow content in smartphones with our high-performance mixed-signal solutions, where we see a meaningful opportunity to not only expand our addressable market but also to diversify our revenue. Our progress in this area has been demonstrated through the continued success of our camera controller product line. We see considerable potential to add further value in this area as we identify more opportunities to enhance system performance and help enable advanced camera functionality.

Outside of our Custom Audio Solutions. We also continue to serve customers in the Android ecosystem.

While the majority of our General market R&D efforts are directed toward developing products for new markets. We continue to enjoy success and strong customer relationships in Android.

And expect new flagship, smartphones, featuring our components to launch in the second half of the calendar year.

Looking Beyond audio. We're excited about the potential to grow content in smartphones with our high performance mixed signal Solutions.

Where we see a meaningful opportunity to, not only expand, our addressable Market, but also to diversify our Revenue.

Our progress in this area has been demonstrated through the continued success of our camera, controller product line.

John Forsyth: Beyond camera controllers, we also continue to invest in developing our capabilities around battery, power, sensing, and other domains and have a number of R&D programs underway in these areas. We anticipate that the investments that we are making in this space today will contribute to product diversification and expand our high-performance mixed-signal footprint in the future. The third principle of our strategy is to leverage our audio and high-performance mixed-signal expertise into new applications and markets outside of smartphones, for example, in laptops. During the quarter, engagement with our laptop customers was strong. We saw our next generation PC amplifier and PC codec designed into several new laptops that are expected to begin initial shipments in late calendar '25. These components expand our product portfolio's reach across price points and architectures, enabling us to support our customers' higher volume mainstream programs.

John Forsyth: Beyond camera controllers, we also continue to invest in developing our capabilities around battery, power, sensing, and other domains, and have a number of R&D programs underway in these areas. We anticipate that the investments that we are making in this space today will contribute to product diversification and expand our high-performance mixed signal footprint in the future. The third principle of our strategy is to leverage our audio and high-performance mixed signal expertise into new applications and markets outside of smartphones, for example, in laptops. During the quarter, engagement with our laptop customers was strong, and we saw our next-generation PC amplifier and PC codec designed into several new laptops that are expected to begin initial shipments in late calendar 2025. These components expand our product portfolio's reach across price points and architectures, enabling us to support our customers' higher-volume mainstream programs.

We see considerable potential to add further value in this area as we identify more opportunities to enhance system performance and help enable Advanced Camera functionality.

Beyond camera controllers. We also continue to invest in our capabilities around battery, power, sensing and other domains and have a number of R&D programs underway in these areas.

We anticipate that the Investments that we are making in this space today will contribute to product diversification and expand our high performance mixed signal footprint in the future.

For principle of our strategy is to leverage our audio and high performance. Mixed signal expertise into new applications and markets outside of smartphones. For example, in laptops.

John Forsyth: This, in turn, allows us to capture more of our serviceable addressable market and build additional revenue opportunities. In the June quarter, we also announced a collaboration with Compaq, a leading electronic design and manufacturing services company, to address persistent audio challenges in laptops, notably the mechanical rattle and audio distortion that often leads to poor and inconsistent audio quality. Further, we're also developing multiple new products that aim to significantly improve voice and audio capture functionality across a wide range of laptops. Beyond laptops, we also believe that there are great opportunities to expand our general market business, which spans a large number of customers across the professional audio, automotive, industrial, and imaging end markets. As part of this effort, during the quarter, we ramped production of our latest generation ADCs, DACs, and an ultra-high performance audio codec.

John Forsyth: This, in turn, allows us to capture more of our serviceable, addressable market and build additional revenue opportunities. In the June quarter, we also announced a collaboration with Compal, a leading electronic design and manufacturing services company, to address persistent audio challenges in laptops, notably the mechanical rattle and audio distortion that often leads to poor and inconsistent audio quality. Further, we're also developing multiple new products that aim to significantly improve voice and audio capture functionality across a wide range of laptops. Beyond laptops, we also believe that there are great opportunities to expand our general market business, which spans a large number of customers across the professional audio, automotive, industrial, and imaging end markets. As part of this effort, during the quarter, we ramped production of our latest-generation ADCs, DACs, and an ultrahigh-performance audio codec.

During the quarter engagement with our laptop, customers with strong, and we saw our next generation, PC amplifier and PC, codec. Designed into several new laptops that are expected to begin. Initial shipments in late calendar. 25 these components expand, our product portfolios reach across price points and architectures enabling us to support our customers higher volume mainstream programs. This in turn allows us to capture more of our serviceable addressable market and build additional Revenue opportunities.

In the June quarter, we also announced a collaboration with compound a leading electronic design and Manufacturing Services Company to address, persistent audio challenges in laptops. Notably the mechanical Rattle and audio Distortion. That often leads to poor and inconsistent audio quality.

Further, we're also developing multiple new products that aim to significantly improve voice and audio capture functionality across a wide range of laptops.

Beyond laptops. We also believe that there are great opportunities to expand our General market business, which spans a large number of customers across the professional audio automotive, industrial, and imaging and markets.

John Forsyth: Additionally, we expanded our professional audio portfolio with the launch of four new high-performance ADC and DAC products, making our high levels of performance and advanced features accessible across a wider range of applications and price points. Lastly, we recently began shipping our latest timing product to a leading automotive customer and to professional audio customers. We continue to be encouraged by the high level of customer interest across these areas of our business and by the strategic opportunities ahead of us. And with that, let me now turn the call over to Jeff to provide an overview of our financial results as well as the outlook.

What of this effort during the quarter? We ramped production of our latest generation, adcs tax and an ultra high performance audio codec.

Additionally, we expanded our professional audio portfolio with the launch of 4, new, high-performance ADC and DAC products.

Making our high levels of performance and advanced features accessible across a wide range of applications and price points.

Lastly, we recently began shipping our latest timing products to a leading automotive customer and to professional audio customers.

We continue to be encouraged by the high level of customer interest across these areas of our business and by the Strategic opportunities ahead of us.

And with that, let me now turn the call over to Jeff to provide an overview of our financial results as well as the Outlook.

Jeff Woolard: Thank you, John. Good afternoon, everyone. I'll start with a summary of our financial results for our fiscal Q1 and then provide guidance for our Q2 fiscal 2026. In Q1 fiscal 2026, we delivered revenue of $407.3 million, above the top end of our guidance range due to stronger-than-expected smartphone unit volumes. On a sequential basis, revenue was down 4%, primarily due to lower smartphone unit volumes. On a year-over-year basis, sales were up 9%, primarily driven by sales associated with our latest-generation products and higher smartphone unit volumes. Turning to gross profit and gross margin, Non-GAAP gross profit in the June quarter was $214.3 million, and Non-GAAP gross margin was 52.6%. On a sequential basis, the decrease was mostly driven by a less favorable product mix and a return to a more typical pricing environment.

Jeff Woolard: Thank you, John. Good afternoon, everyone. I'll start with a summary of our financial results for our fiscal Q1 and then provide guidance for our Q2 fiscal 2026. In Q1 fiscal 2026, we delivered revenue of $407.3 million, above the top end of our guidance range due to stronger than expected smartphone unit volumes. On a sequential basis, revenue was down 4%, primarily due to lower smartphone unit volumes. On a year-over-year basis, sales were up 9%, primarily driven by sales associated with our latest generation products and higher smartphone unit volumes. Turning to gross profit and gross margin, non-GAAP gross profit in the June quarter was 214.3 million, and non-GAAP gross margin was 52.6%. On a sequential basis, the decrease was mostly driven by a less favorable product mix and a return to a more typical pricing environment.

Thank you, John. Good afternoon everyone. I'll start with the summary of our financial results for our fiscal q1 and then provide guidance for our Q2 fiscal 2026.

In q1 fiscal 2026. We delivered revenue of 47.3 million above the top end of our guidance range due to stronger than expected smartphone, unit volumes.

On a sequential basis. Revenue was down 4%, primarily due to lower smartphone unit volumes.

on a year-over-year basis, sales were up, 9%, primarily driven by sales associated with our latest generation products and higher smartphone, unit volumes,

During to gross profit and gross margin non-gaap, gross profits in the June quarter was 214.3 million and non-gaap gross margin was 52.6%.

Jeff Woolard: On a year-over-year basis, the increase in gross margin was largely due to a more favorable product mix. Now I'll turn to operating expenses. Non-GAAP operating expense for the first quarter was $119.5 million. On a sequential basis, OPEX was down $0.5 million, primarily due to a reduction in product development costs, largely due to the timing of expenses for new products. The decrease also reflects a reduction in variable compensation and lower facilities-related expenses. This was offset by higher employee-related expenses, mostly due to annual salary increases. On a year-over-year basis, operating expense was up $1.5 million, largely due to higher employee-related costs, mostly associated with annual salary increases. This is offset by lower product development costs. Non-GAAP operating income for the quarter was $94.9 million or 23.3% of revenue. Turning now to taxes.

Jeff Woolard: On a year-over-year basis, the increase in gross margin was largely due to a more favorable product mix. Now I'll turn to operating expenses. Non-GAAP operating expense for the first quarter was 119.5 million. On a sequential basis, OPEX was down 0.5 million, primarily due to a reduction in product development costs, largely due to the timing of expenses for new products. The decrease also reflects a reduction in variable compensation and lower facilities-related expenses. This was offset by higher employee-related expenses, mostly due to annual salary increases. On a year-over-year basis, operating expense was up 1.5 million, largely due to higher employee-related costs, mostly associated with annual salary increases. This is offset by lower product development costs. Non-GAAP operating income for the quarter was 94.9 million, or 23.3% of revenue.

The decrease was mostly driven by a less favorable product, mix and a return to a more typical pricing environment.

On a year-over-year basis. The increase in gross margin was largely due to a more favorable product mix.

Now, I'll turn to operating expenses.

Non-gaap operating expense for the first quarter was 119.5 Million on a sequential basis. Opex was down 0.5 million primarily due to a reduction in product development costs largely due to the timing of expenses for new products.

The decrease also reflects a reduction in variable compensation and lower facilities related to expenses.

This was offset by higher employee related, expenses mostly due to annual salary increases.

On a year-over-year basis. Operating expense was up 1.5 million largely due to higher employee related costs, mostly associated with annual salary increases.

This is offset by lower product development costs.

Jeff Woolard: Turning now to taxes, for the June quarter, our non-GAAP tax rate was 22.1%, in line with our previous guidance. And lastly, on the P&L, non-GAAP net income was 80.3 million, resulting in earnings per share for the June quarter of $1.51. Let me now turn to the balance sheet. Our balance sheet continues to be strong, and we ended the June quarter with $847.8 million in cash and investments. Our ending cash and investment balance was up $12.9 million from the prior quarter, as cash generated from operations was partially offset by share repurchases. We continue to have no debt outstanding. Inventory at the end of the first quarter was 279 million, down from 299.1 million from the prior quarter. Days of inventory were down sequentially, and we ended the quarter with approximately 132 days of inventory.

Non-gaap operating income for the quarter was 94.9 million or 23.3% of Revenue.

Jeff Woolard: For the June quarter, our non-GAAP tax rate was 22.1%, in line with our previous guidance. Lastly, on the P&L, non-GAAP net income was $80.3 million, resulting in earnings per share for the June quarter of $1.51. Let me now turn to the balance sheet. Our balance sheet continues to be strong, and we ended the June quarter with $847.8 million in cash and investments. Our ending cash and investment balance was up $12.9 million from the prior quarter, as cash generated from operations was partially offset by share repurchases. We continue to have no debt outstanding. Inventory at the end of the first quarter was $279 million, down from $299.1 million from the prior quarter. Days of inventory were down sequentially, and we ended the quarter with approximately 132 days of inventory.

Turning now to taxes.

For the June quarter are non-gaap tax rate was 22.1% in line with our previous guidance.

And lastly, on the p&l non-gaap. Net income was 80.3. Million resulting in earnings per share for the June quarter of a151.

Let me now turn to the balance sheet.

Our balance sheet continues to be strong and we ended the June quarter with 847.8 million in cash and Investments.

Our ending cash and investment balance was up 12.9 million from the prior quarter, as cash, generated from operations was partially offset by share repurchases.

We continue to have no debt outstanding.

Inventory. At the end of the first quarter was 279 million.

Down from 299.1 million from the prior quarter.

Jeff Woolard: Looking ahead in Q2 fiscal 2026, we expect inventory to decrease as we continue to fulfill demand and manage our wafer purchase commitments per our long-term capacity agreement with GlobalFoundries. Turning to cash flow, cash flow from operations was $116.1 million in the June quarter, and CapEx was $2.8 million, resulting in non-GAAP free cash flow margin of 28%. For the trailing 12-month period, cash flow from operations was $473.3 million, and CapEx was $21.4 million. This resulted in a non-GAAP free cash flow margin of 23%. On share buybacks in Q1, we utilized $100 million to repurchase approximately 1 million shares of our common stock at an average price of $98.66. At the end of Q1 fiscal year 2026, the company had $454.1 million remaining on its share repurchase authorization. Now onto guidance. For Q2 fiscal 2026, we expect revenue in the range of $510 to $570 million.

Days of inventory. We're down sequentially and we ended the quarter with approximately 132 days of inventory.

Jeff Woolard: Looking ahead, in Q2 fiscal '26, we expect inventory to decrease as we continue to fulfill demand and manage our wafer purchase commitments for our long-term capacity agreement with Global Foundries. Turning to cash flow, cash flow from operations was 116.1 million in the June quarter, and CAPEX was 2.8 million, resulting in non-GAAP free cash flow margin of 28%. For the trailing 12-month period, cash flow from operations was 473.3 million, and CAPEX was 21.4 million. This resulted in a non-GAAP free cash flow margin of 23%. On share buybacks in Q1, we utilized $100 million to repurchase approximately 1 million shares of our common stock at an average price of $98.66. At the end of Q1 fiscal year 2026, the company had 454.1 million remaining on its share repurchase authorization. Now on to guidance.

Looking ahead in Q2 fiscal 26. We expect inventory to decrease, as we continue to fulfill demand and manage our wafer purchase commitments, for our long-term capacity agreement with global foundries.

Turning to cash flow.

Cash flow from operations was 116.1 million in the June quarter and capex was 2.8 million resulting in non-gaap free, cash flow margin of 28%.

For the trailing 12-month period. Cash flow from operations, was 473.3 million and cap X was 21.4 Million.

This resulted in a non-gaap free cash flow margin of 23%.

On share Buybacks in q1, we utilized a hundred million dollars. To repurchase approximately 1 million shares of our common stock at an average price of $98.66.

At the end of q1 fiscal year, 2026, the company had 454.1 million remaining on its share repurchase authorization.

Jeff Woolard: For Q2 fiscal 2026, we expect revenue in the range of $510 to $570 million. While we only provide guidance for one quarter, given our strong Q1 results and Q2 guidance, we want to share additional color on seasonality. We now anticipate that our sales will be more weighted towards the first half of the fiscal year. We would note that our unit and revenue forecasts for the full fiscal year are relatively unchanged from previous expectations. GAAP gross margin is expected to range from 51% to 53%. Non-GAAP operating expense is expected to range from 131% to 137 million. Turning to taxes, on July 4th, the One Big Beautiful Bill Act was signed into law. Among other provisions, this bill permanently eliminates the requirement to capitalize and amortize US R&D expenditures and makes modifications to international tax rules.

now on to guidance,

For Q2 fiscal 2026, we expect Revenue in the range of 510.

Jeff Woolard: While we only provide guidance for one quarter, given our strong Q1 results and Q2 guidance, we want to share additional color on seasonality. We now anticipate that our sales will be more weighted towards the first half of the fiscal year. We would note that our unit and revenue forecasts for the full fiscal year are relatively unchanged from previous expectations. GAAP gross margin is expected to range from 51% to 53%. Non-GAAP operating expense is expected to range from $131 to $137 million. Turning to taxes. On 4 July, the One Big Beautiful Bill Act was signed into law. Among other provisions, this bill permanently eliminates the requirement to capitalize and amortize US R&D expenditures and makes modifications to international tax rules. The effects of the new law are not reflected in our guidance for September quarter, as we are evaluating the impact of the legislation.

To 570 million.

while we only provide guidance for 1 quarter, given our strong q1 results and Q2 guidance, we want to share additional color on seasonality,

We now anticipate that our sales will be more weighted towards the first half of the fiscal year.

We would note that our unit and revenue forecasts for the full fiscal year are relatively unchanged from previous expectations.

Dap gross margin is expected to range from 51 to 53 percent.

Non-GAAP operating expenses are expected to range from $131 million to $137 million.

Turning to taxes.

On July 4th the 1 big beautiful. Bill Act was signed into law among other Provisions. This bill permanently eliminates the requirement to capitalize and amortize us R&D expenditures.

Jeff Woolard: The effects of the new law are not reflected in our guidance for September quarter as we are evaluating the impact of the legislation. In closing, we delivered strong results for the June quarter as we continue to execute on our strategy to grow our business and drive long-term shareholder value. Before we begin the Q&A, I would like to note that while we understand there is intense 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 now turn the call over to Chelsea to start the Q&A session.

And makes modifications to international tax rules.

Jeff Woolard: In closing, we delivered strong results for the June quarter as we continue to execute on our strategy to grow our business and drive long-term shareholder value. Before we begin the Q&A, I would like to note that while we understand there is intense 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 now turn the call over to Chelsea to start the Q&A session.

The effects of the new law are not reflected in our guidance for September quarter, as we are evaluating the impact of the legislation.

In closing, we delivered strong results for the June quarter, as we continue to execute on our strategy, to grow our business and drive long-term shareholder value.

That while we understand, there is intense interests 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 now turn the call over to Chelsea to start the Q&A session.

[Company Representative] (Cirrus Logic): Thanks, Jeff. We will now start the Q&A portion of the earnings call. Please limit yourself to a single question and one follow-up. Operator, we are now ready to take questions.

Chelsea Heffernan: Thanks, Jeff. We will now start the Q&A portion of the earnings call. Please limit yourself to a single question and one follow-up. Operator, we are now ready to take questions.

Thanks Jack.

We will now start.

Operator. We are now ready to take questions.

Operator: At this time, we will conduct the question-and-answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, press star then 1 again. We will pause briefly to compile the Q&A roster. Your first question comes from Christopher Rolland with Susquehanna. Your line is open.

John Forsyth: At this time, we will conduct a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star then the number one again. We will pause briefly to compile the Q&A roster. Your first question comes from Christopher Rowland with Susquehanna. Your line is open.

at this time, we will conduct the

star followed by the number 1 on your telephone keypad. If you would like to address your question press star, then the number 1 again,

we will pause briefly to compile the Q&A roster.

Your first question comes from Christopher Rowland with susco Hannah, your line is open.

Christopher Rolland: Hey, guys. Thanks for the question and congrats on the results. I guess with the results and guidance here, the results in particular, there's just a very big delta between what you were expecting and what actually happened. So I just wanted to understand what's driving that delta. Was it just conservatism in the guide, or is this better units or better content or a better inventory build or tariff-related pull-ins? What was driving this delta?

Christopher Rolland: Hey, guys. Thanks for the question and congrats on the results. I guess with the results and guidance here, the results in particular, there's just a very big delta between what you were expecting and what actually happened. And so I just wanted to understand what's driving that delta. Was it just conservatism in the guide, or is this better units or better content or a better inventory build or tariff-related pull-ins? What was driving this delta?

Hey guys, thanks for the question. Uh, and congrats on the results. Um, uh, I guess uh, with with the results and guidance here, uh, the results in particular, there's just a very big Delta between what you were expecting and what actually happened.

Um, and so um, I I just wanted to understand what's driving that Delta was it just conservativism in the guide, or is this better units or better content or a better inventory, build, or tariff related pull-ins? What? What was driving this Delta?

John Forsyth: Thanks, Chris. Yeah. Obviously, the big picture is strong demand for smartphones primarily, and there are no content surprises to us at this point in the cycle, but it is true that we're shipping more content in smartphones than ever before. So that strong demand had a significant effect on us. Obviously, when we guide, we guide based on our best judgment using all the information we have available. Relative to guidance, I would say that in the last quarter, we saw demand remain really robust and sustained during a period of the year where that is not something that we typically see. And so also factored into that, there was the launch of a lower-cost product earlier in the year, which contributed to an extent. So we obviously ship to customer demand.

John Forsyth: Thanks, Chris. Yeah, obviously, you know, the big picture is strong demand for smartphones primarily. And there are no content surprises to us at this point in the cycle, but it is true that we're shipping more content and smartphones than ever before. So that strong demand had, you know, had a significant effect on us. Obviously, when we guide, we guide based on, you know, our best judgment using all the information we have available. Relative to guidance, I would say that in the last quarter, we saw demand remain really robust and sustained during a period of the year where that is not something that we typically see. And so also factored into that, you know, there was the launch of a lower-cost product earlier in the year, which contributed to an extent. So we obviously ship to customer demand.

Hey Chris. Uh, yeah. Obviously, you know, big picture is strong demand for for smartphones uh, primarily and and uh

There are no content surprises, uh, to us at this point in the cycle. But it is true that we're shipping more content and smartphones than than ever before. So, um, that strong demand had, uh, you know, had a significant effect on us obviously. When we guide we we guide based on, um, you know, our best judgment, uh, using all the information we have available relative to guidance. I would say that in the last quarter, we saw demand remain really robust and sustained during a period of the Year where that is not something that we typically see. And so, um, also factored into that, you know, there was, uh, the launch of a, a lower cost product earlier in the, in the year which, uh, which contributed to an extent.

John Forsyth: That means we don't have perfect visibility of how much might be related to, for example, tariff-related pull-ins or pull-ahead-of-demand. We think that contributed somewhat to it, but it's difficult for us to put a number on.

John Forsyth: That means we don't have perfect visibility of how much might be related to, for example, tariff-related pull-ins or, you know, pull ahead of demand. We think that contributed somewhat to it, but it's difficult for us to put a number on.

Um, so we obviously ship to customer demand. That means we don't have perfect visibility of how much might be related to uh for example, tariff related pull-ins or uh you know pull ahead of demand. We think that contributed somewhat to it um but it it's difficult for us to put a number on.

Christopher Rolland: Thanks, John. I guess secondly, I wanted to kind of check in on your diversification efforts outside of your largest customer. On the PC side, I wanted to know how big the Compal thing was in driving new designs and then check in with the auto opportunity as well. And anything else that you can point to there, is it going better than you would expect, that diversification effort?

Christopher Rolland: Thanks, John. I guess secondly, I wanted to kind of check in on your diversification efforts outside of your largest customer. You know, on the PC side, I wanted to know how big the Compal thing was in driving new designs and then check in with the auto opportunity as well. And anything else that you can point to there, is it going better than you would expect that diversification effort?

John Forsyth: Yeah. Thanks, Chris. We're certainly very excited about the progress that we're making. Auto, I'll cover off first. That's still very early stage for us. To be clear, we've been shipping in the automotive market for some time, but it's really not something we've been investing in. It's been legacy products and so on. We've started reinvigorating that. It's going to take some time given the design cycles that we're all familiar with in that market. But I think we see plenty of opportunity there. There's fairly obvious ones that you would associate with us around audio and haptics and so on, just improving the in-cabin experience. And that's an area where we do have great engagement with customers. We also mentioned in the commentary for this quarter the design-in of the timing products that we I think we just launched late last year.

John Forsyth: Yeah, thanks, Chris. We're certainly very excited about the progress that we're making. Auto, I'll cover off first. That's still very early stage for us. To be clear, we've been shipping in the automotive market for some time, but it's really not something we've been investing in. It's been legacy products and so on. We've started reinvigorating that. It's going to take some time given the design cycles that we're all familiar with in that market. But I think we see plenty of opportunity there. There's fairly obvious ones that you would associate with us around audio and haptics and so on, just improving the in-cabin experience. And that's an area where we do have, you know, great engagement with customers. We also mentioned in the commentary for this quarter the design in of the timing products that we, I think we just launched late last year.

Thanks John, uh, I guess, uh, secondly, uh, I wanted to kind of check in on your diversification efforts outside of your largest customer. Um, you know, on the PC side, I wanted to know how big the, the, the comple compile thing was in, in, in, in driving, new designs. Uh, and then check in with, um, the auto opportunity, uh, as well. And, and anything else uh, that you can point to their um, is it going better than than you would expect? That's diversification effort.

The progress that we're making uh Auto, um, I'll cover off first. That's still very early stage for us. Uh, to be clear. We've been shipping in the automotive market for some time, but it's really not something. We've been investing in. It's been, uh, Legacy products and so on. Um, we've started, uh, reinvigorating that it's going to take some time given the, the design cycles that we're all familiar with in that market. But I think, uh, we see plenty of opportunity there

John Forsyth: Again, that's, you know, not a needle mover today revenue-wise, but those products will ship for a long time. Automotive is one of the target markets for them. And I think it's a great indicator of one of the strengths of the company, given that we have a vast array of IP and capability at pretty advanced geometries for the kind of mixed-signal stuff that we do, most of which has been, you know, targeted and developed for our major markets around smartphones. But we're able to take a lot of that IP and a lot of that design capability and refresh and upgrade existing kind of legacy product segments and see very positive adoption and response from our customers to that.

John Forsyth: Again, that's not a needle-mover today revenue-wise, but those products will ship for a long time. Automotive is one of the target markets for them. I think it's a great indicator of one of the strengths of the company, given that we have a vast array of IP and capability at pretty advanced geometries for the kind of mixed-signal stuff that we do, most of which has been targeted and developed for our major markets around smartphones. We're able to take a lot of that IP and a lot of that design capability and refresh and upgrade existing kind of legacy product segments and see very positive adoption and response from our customers to that.

Um, it was fairly obvious ones that you would associate with those around audio and, and haptics and so on, just just improving the in Cabin experience. And and that's an area where we do have, uh, you know, great, uh, engagement with customers. Um, we I we also mentioned in the commentary for this quarter, uh, the design in of the, um, the timing products that we, uh, I think we, I think we just launched late last year.

John Forsyth: That's what we've seen with timing, where we went from, I think, publicly launching those products not that long ago to talking this quarter about those being designed into a tier-one automotive customer. There is plenty of other activity around those products within both automotive and other segments as well. On the PC side, yeah, we continue to track to the kind of progress path and milestones that I've talked about previously. I think we're very excited about what that can turn into for us over time. We previously mentioned we were low $10s of millions revenue in fiscal 2025, expecting that to roughly double in fiscal 2026 based on the designs that have already been secured.

John Forsyth: And that's what we've seen with timing, where we went from, I think, publicly launching those products not that long ago to talking this quarter about those being designed into a tier-one automotive customer. And there is plenty of other activity around those products within both automotive and other segments as well. On the PC side, yeah, we continue to track the kind of progress path and milestones that I've talked about previously. I think we're very excited about what that can turn into for us over time. So we previously mentioned we were low tens of millions revenue in fiscal '25, expecting that to roughly double in fiscal '26 based on the designs that have already been secured.

Kids are on smartphones, but we're able to take a lot of that IP and a lot of that design capability and refresh and upgrade existing, uh, kind of Legacy product segments and see very positive adoption, um, and response from, from our customers to that. And that's what we've seen with timing. Where we went from, uh, I think publicly launching, uh, those products not that long ago to, uh, uh, talking this quarter about those being, uh, designed in to, uh, uh, to, uh, Tier 1 Automotive customer. And, uh, and as, uh, there is plenty of other activity around those products within both automotive and, and other segments as well.

John Forsyth: In the past quarter, we saw design activity around new codec and amplifier products, which we talked about sampling previously, but it's great to see those getting designed into products, the very first of which will hit the market even later this calendar year. The Compal thing, I think we just demonstrated that in May. So yet to see how that translates into kind of top-line impacts, but it is addressing a persistent, long-standing challenge in PC design, obviously, relative to, for example, our largest customer. The way products are designed and manufactured in the PC space is quite different. You end up with a lot of challenges when it comes to getting the best audio around mechanical rattle, distortion, and so on. And we've got a lot of expertise in tuning. We'd really like to vastly improve the audio experience in laptops because it's been subpar for so long.

John Forsyth: In the past quarter, we saw design activity around new codec and amplifier products, which we talked about sampling previously, but it's great to see those getting designed into products, the very first of which will hit the market even later this calendar year. The Compal thing, I think we just demonstrated that in May. So yet to see how that translates into kind of top-line impacts, but it is addressing a persistent long-standing challenge in PC design. Obviously, relative to, for example, our largest customer, the way products are designed and manufactured in the PC space is quite different. You end up with a lot of challenges when it comes to getting the best audio around mechanical rattle, distortion, and so on. And we've got a lot of expertise in tuning. We'd really like to vastly improve the audio experience in laptops because it's been subpar for so long.

On, on the, the PC side. Um, yeah, we continue to track to the uh, um, the kind of progress path and Milestones that I've talked about previously, I think we're we're very excited about, uh, what that can turn into, uh, for us over time. So, um, we, uh, previously mentioned we were low tens of millions of Revenue in in fiscal 25. Uh, expecting that to roughly double in, in fiscal 26, based on the designs that that have already been secured. Um, we in, in, in the past quarter, we saw, uh, design activity around, uh, new Kodak and amplifier products which we we talked about, uh, sampling previously. But it's great to see those getting designed in to products, which the very first of, which will hit the market, uh, even even later this calendar year,

John Forsyth: And that announcement we did with Compal is squarely aimed at helping customers do that and deliver much better experiences to their customers in audio. And just one final, I guess, one final milestone to talk to on the PC side, just to give a little more color of the progress. I think one of the most important things in the PC space is getting into the mainstream category. So you've got the kind of horizontal axis, which is getting across the customers, getting across as many customers as we can. So we're shipping in the top six laptop OEMs. But then the vertical axis is very important for volume, just getting down into the mainstream category. If you look back at FY24, when we were kind of starting this laptop strategy and starting to see that customer engagement, we had very little revenue at that time.

John Forsyth: That announcement we did with Compal is squarely aimed at helping customers do that and deliver much better experiences to their customers in audio. And just one final, I guess, one final milestone to talk to on the PC side, just to give a little more color of the progress. I think one of the most important things in the PC space is getting into the mainstream category. So you've got the kind of horizontal axis, which is getting across the customers, getting across as many customers as we can. So we're shipping in the top 6 laptop OEMs. But then the vertical axis is very important for volumes, getting down into the mainstream category. If you look back at FY2024, when we were kind of starting this laptop strategy and starting to see that customer engagement, we had very little revenue at that time.

Um, the uh, uh, the, the compile thing, I think we, we just demonstrated that in May so you have to see, uh, how that translates into, uh, kind of Topline impacts. But it is addressing a persistent long-standing challenge in, uh, in PC, uh, design obviously, you know, relative to, for example, our largest customer that that the way products are designed and manufactured, in the PC space is quite different. Um, you end up with a, uh, a lot of challenges, uh, when it comes to getting the best audio around, uh, mechanical rattle Distortion and so on, and, um, we've, you know, we've got a lot of expertise in in, uh, uh, in tuning. We'd really like to vastly improve the audio experience, um, in, uh, in laptops because it's it's been subpar for so long. Um, and that uh, that announcement we did with compal is is squarely aimed at uh at helping customers uh do that and deliver much

Yeah.

Uh, much better experiences to their their customers in audio.

Um, and and just 1 final, I guess, 1 final, uh, Milestone to talk to on on the PC side, just to give a little more color of the progress. I think, 1 of the 1 of the most important things in the PC space is getting into the mainstream category. So you know, you've got the kind of horizontal axis which is getting across uh,

The customer is getting across as many customers as we can. So we're shipping in the top 6, uh, laptop, oems.

Um, but then the vertical axis is very important for volume was getting down into the mainstream category. Um, if you if you look back at fy24, when we were kind of

Starting this uh this laptop uh, strategy and starting to see that uh that customer engagement.

John Forsyth: Roughly, $2 million or something came from mainstream devices. It was effectively rounded to zero. In this fiscal year, we expect that to be more like closer to 10x that, driven by mainstream. I highlight that because that's a really good milestone and indicator of the fact that we can break into the high-volume product tiers, which are really going to be significant for driving revenue.

John Forsyth: Roughly like 2 million or something came from mainstream devices. It was effectively rounded to zero. In this fiscal year, we expect that to be more like closer to 10x that, driven by mainstream. And I highlight that because that's a really good milestone and indicator of the fact that we can break into the high volume product tiers, which are really going to be significant for driving revenue. Your next question comes from David Williams with The Benchmark Company. Your line is open.

Um, we had, we had very little Revenue at at that time roughly like it 2 million or something came from mainstream, uh, devices. It was, uh, effectively rounded to zero, um, in in this fiscal year, we, we expect that to be more like, uh, you know, closer to 10x that, uh, driven by mainstream. Um, and I highlight that because that's a, that's a really good Milestone and indicator of the fact that we can, uh, uh, break into the, uh, the high volume, uh, the high volume product here is which, which are really going to be significant for driving Revenue.

Operator: Your next question comes from David Williams with The Benchmark Company. Your line is open.

David Williams: Hey, good afternoon, and thanks for taking my question. So lots of great color there on the last question. I guess if we kind of think about the volumes and the content and just kind of the puts and takes around the first half being more weighted versus the second half, is there a way to kind of, I guess, qualify the magnitude of that and maybe how to think about the difference between the content and the volume differential?

Your next question comes from David Williams with the Benchmark company. Your line is open.

Hey, good afternoon and uh thanks for taking my question. So lots of great color there on the the last question. Um, I guess if we if we kind of think about the volumes and the the content and uh just kind of puts and takes around the the first half being more weighted uh versus the second half, is there a way to kind of I guess qualify the magnitude of that and and maybe what uh how to think.

The, the the difference between that the, the content and the volume differential.

John Forsyth: Let me give a bit of color. Obviously, we just guide 1 quarter at a time, but I do want to give color to this. Clearly, we're coming off a record June and then a very strong September guide, which overall reflects strong demand for our smartphone products, which is generally a very, very positive picture for us. But there are a few factors which we think are giving a somewhat different shape to the seasonality this year that you should keep in mind when thinking about your models for the rest of the year. So I'll just touch on each of the factors that we think are playing a part there. One of them, I mentioned already, we think the pull-ins contributed to some extent from our position in the value chain. It's pretty much impossible to say precisely how much because we ship to customer demand.

John Forsyth: Let me give a bit of color. Obviously, we just guide one quarter at a time, but I do want to give color to this. You know, clearly, we're coming off a record June, and then a very strong September guide, which overall reflects strong demand for our smartphone products, which is generally a very, very positive picture for us. But there are a few factors which we think are giving a somewhat different shape to the seasonality this year that you should keep in mind when thinking about your models for the rest of the year. So I'll just touch on each of the factors that we think are playing a part there. One of them I mentioned already, we think the pull-ins contributed to some extent from our position in the value chain. It's pretty much impossible to say precisely how much because we ship to customer demand.

Let me, let me give a bit of color. Obviously we we just guide 1 quarter at a time. Um, but I do want to give give color to this, you know, clearly

We're coming off a record June. Um, and then a very strong September guide, which overall, reflects strong demand for, uh, uh, for a smartphone products.

A somewhat different shape to the seasonality this year that, um, you should keep in mind when, uh, thinking about your models for, uh, the rest of the year.

John Forsyth: But we believe we've likely seen a pull forward of some level of demand, and common sense says that has to come from somewhere. Secondly, although we don't have the perfect visibility of this, we do think it's possible that with a more complex and diverse global manufacturing supply chain on the part of certain of our customers, that we may have seen and may be seeing a need for parts to be available and on hand a little earlier than normal, which again would just pull forward some of the revenue ramp. And then finally, and this is certainly, I think, perhaps a secular trend for us.

John Forsyth: But we believe we've likely seen a pull forward of some level of demand, and common sense says that has to come from somewhere. Secondly, although we don't have the perfect visibility of this, we do think it's possible that with a more complex and diverse global manufacturing supply chain on the part of certain of our customers, that we may have seen and may be seeing a need for parts to be available and on hand a little earlier than normal, which, again, would just pull forward some of the revenue ramp. And then finally, and this is certainly, I think, perhaps a secular trend for us, as you know, the quantity of our camera content has been growing over time.

Uh so I'll I'll just touch on each of the factors that we think are playing a part there. Um, 1 of them, I mentioned already. We think we think the pull-ins contributed to some extent from our position. In the value chain is pretty much impossible to say precisely how much because we ship to customer demand um but we believe we've likely seen a pull forward of some level of demand and you know common sense says they have to come from somewhere.

Um secondly uh although we don't have the perfect visibility of this. We do think it's possible that with a more complex and diverse Global manufacturing supply chain, um, on the part of certain of our customers that we may have seen and maybe seeing a need for parts to be, uh, available and on hand a little earlier than normal, which again would would just pull forward. Some of the, the revenue ramp

uh, and then finally

John Forsyth: As you know, the quantity of our camera content has been growing over time, and that content is part of a longer supply chain process than our other products because it's typically incorporated into modules, and the manufacturing timelines associated with that are longer, which means that we ship the camera parts earliest than we ship the other parts that don't go into module. And that pulls a larger part of our revenue forward. So if you look, actually, last year, we also saw a comparatively stronger September quarter, and that again in part reflected this trend.

John Forsyth: And that content is part of a longer supply chain process than our other products because it's typically incorporated into modules, and the manufacturing timelines associated with that are longer, which means that we ship the camera parts earliest and we ship the other parts that don't go into modules. And that pulls a larger part of our revenue forward. So if you look, actually, last year, we also saw a comparatively stronger September quarter, and that, again, in part, reflected this trend. So I think although we just guide to what we can see, but as we commented and Jeff commented in his prepared remarks, we do see these factors all playing a part in tilting the demand pattern more towards the first half of the calendar year rather than the back half as it perhaps used to be for us.

And uh, this is this is certainly a, I think, you know, perhaps a secular trend for us. Um, as you know, the quantity of our camera content has been growing over time.

John Forsyth: So I think, you know, although we just guide to what we can see, but as we commented and Jeff commented in his prepared remarks, we do see these factors all playing a part in tilting the demand pattern more toward the first half of the calendar year rather than the back half as it perhaps used to be for us. That said, you know, as Jeff mentioned, nothing about that shift in pattern has changed our overall view and expectations for the full year.

John Forsyth: That said, as Jeff mentioned, nothing about that shift in pattern has changed our overall view and expectations for the full year.

And that content is part of the longer supply chain process, uh, than our other products because it's typically incorporated into modules and the, uh, the manufacturing timelines associated with that are longer. Which means that we ship the camera Parts earlier than we ship the other parts that don't go into modules and that pulls a larger part of our Revenue forward. Um, so if you look actually last year, we also saw a comparatively stronger, September quarter, and that again, in part reflected this trend. Um, so I think we, you know, although we just guide to what we can see, but uh, as we commented and Jeff commented, in his prepared, prepared remarks, we we do see these factors all playing a part in tilting, the demand pattern uh more towards the first half of the calendar year rather than the back half. Um as uh as it perhaps used to be for us. Um that said, you know, as as Jeff mentioned. There's uh nothing about that shift in pattern has changed our overall View and expect.

Expectations for the full year.

David Williams: Great. Lots of great color there. Appreciate it. And then just kind of thinking about the AI opportunities, and you've talked to this before, but just kind of curious if there's new areas or new products, potentially, that you could work into the AI trend, especially at your largest customer, but even beyond that, maybe in the laptop space or even on the Android side, anything, I think, to that future opportunity to be helpful. Thanks.

David Williams: Great. Lots of great color there. Appreciate it. And then just kind of thinking about the AI opportunities, and you've talked to this before, but just kind of curious if there's new areas or new products potentially that you could work into the AI trend, especially at your largest customer, but even beyond that, maybe in the laptop space or even on the Android side. Anything, I think, to that future opportunity would be helpful. Thanks.

John Forsyth: Yeah. I think on the product side, all of the above. I think we definitely want to be a part of the set of enablers that our largest customer of yours is critical for AI features. We for sure see that as being potentially something that brings a kind of paradigm shift in how people use laptops. I think it can be very significant there. I think other device categories are going to emerge around these technologies, which we haven't seen yet. We really want to be addressing all of those. So first and foremost, I think we're big fans of voice-centric devices and enabling voice technology. We think AI fundamentally really unlocks the conversational interface. That can be whether that's through your phone, through your laptop, or through some other yet-to-be-invented or announced device. We believe that we can play a very important part in that.

John Forsyth: Yeah, I think on the product side, all of the above. I think, you know, we definitely want to be a part of the set of enablers that our largest customer uses critical for AI features. We for sure see that as being potentially something that brings a kind of paradigm shift in how people use laptops. I think it can be very significant there. And I think, you know, other device categories are going to emerge around these technologies, which we haven't seen yet. And we really want to be addressing all of those. So first and foremost, I think, you know, we're big fans of voice-centric devices and enabling voice technology. We think AI is fundamentally really unlocks the conversational interface.

Great color there, appreciate it. Um, and then just kind of thinking about the the AI opportunities and you've talked to this before, but just kind of curious if there's new areas or new, uh, products potentially that you could work into the AI Trend or especially at your largest customer but even beyond that maybe in the laptop space or even on the Android side anything. Uh I think to that future opportunity will be helpful. Thanks.

John Forsyth: And that can be, you know, whether that's through your phone, through your laptop, or through, you know, some other yet to be invented or announced device, we believe that we can play a very important part in that. That's absolutely our wheelhouse, voice capture, voice processing, and so on. And then, you know, the other area where we think we can make a big impact is power. Everybody is fully aware of the amount of power that running AI features at the edge, inference, and so on consumes. And we both provide technologies which are incredibly power efficient on the voice and audio side and power-specific products which help customers get more out of batteries. Your next question comes from Tor Stanburg with a Stifel. Your line is open.

Yeah, I think on the product side, all of the above, I think, you know, we we definitely want to be uh a part of the uh set of enablers that that are largest customer of users critical for uh for AI features. We for sure see that as being potentially uh, something that that um, brings a kind of paradigm shift in how people use laptops. I think it can be very significant there and I think, you know, other device categories are going to emerge, uh, around uh, these Technologies which which we we haven't seen yet and we really want to be addressing all of those. Uh, so first and foremost, I think, you know, we're big fans of void, Centric devices, and enabling voice. Uh, technology. We think AI is, uh, fundamentally. Uh, really unlocks. The, the conversational interface and that can be, you know, whether that's through your phone, uh, through your laptop or through, uh, uh, you know, some other, uh, yet to be invented or, uh,

John Forsyth: That's absolutely our wheelhouse: voice capture, voice processing, and so on. And then the other area where we think we can make a big impact is power. Everybody is fully aware of the amount of power that running AI features at the edge, inference, and so on consumes. And we both provide technologies which are incredibly power-efficient on the voice and audio side and power-specific products which help customers get more out of batteries.

Uh, announced device we uh we believe that we can play a very important part in that, that's absolutely our wheelhouse voice capture uh, voice processing, and so on. Um, and then and then, you know, the other area where we think we can make a big impact is is power. Um, everybody is fully aware, uh, of the amount of power that uh, running AI, uh, uh, features at the edge inference and so on consumes. And, you know, we we both provide Technologies which are incredibly power efficient on the, uh, voice and audio side.

And uh, Power specific products which uh uh help uh customers get more out of batteries.

Operator: Your next question comes from Tore Svanberg with Stifel. Your line is open.

Your next question comes from tour. Stanberg with stifel your line is open.

Tore Svanberg: Yes. Thank you. So I just had a follow-up question on where you talked about seasonality there, John. And maybe I missed this from Jeff's comments, but I mean, typically, first half, first calendar is 40%, and then second half, 60%. So are we kind of looking more sort of at a 45-50 profile? Is that how we should think about it? Sorry, 45-55 profile versus 40-60?

Tore Svanberg: Yes, thank you. So I just had a follow-up question on where you talked about seasonality there, John. And maybe I missed this from Jeff's comments, but I mean, typically, first half, first calendar is 40%, and then second half 60%. So are we kind of looking more so at a 45-50 profile? Is that how we should think about it? Sorry, 45-55 profile versus 40-60?

Yes, thank you. Um, so I just had a follow-up question on where you talked about seasonality there. Uh, John and maybe maybe I missed this from Jeff's comments, but I mean typically first half first calendar is 40% and then second half 60 so we kind of look more. So at a 4550 profile is that how we should think about it?

John Forsyth: Well, I think as you want to think about it is just to reiterate what John said, what has been typical, as we have more camera content, and that becomes a bigger piece of the total revenue pie, it is shipped earlier. So if you think about that trend of it is a change what you had seen in years past, the camera content, bigger piece of the pie, gets shipped earlier. And then certainly, there was some amount of pull-in, which is hard for us to determine. So I think as you think about that moving forward, it's really a mix of the camera content and the total pie and how that has just shifted forward from where we have to place it in our customer supply chain.

Jeff Woolard: Well, I think you think as you want to think about it is just to reiterate what John said, you know, what has been typical as we have more camera content and that becomes a bigger piece of the total revenue pie, it is shipped earlier. So if you think about that trend of, you know, it is a change what you had seen in years past, the camera content, bigger piece of the pie gets shipped earlier. And then certainly there was some amount of pull-in, which, you know, is hard for us to determine. So I think as you think about that moving forward, it's not, it's really a mix of the camera content and the total pie and how that has just shifted forward from where we have to, we have to place in our customer supply chain.

345 55 profile versus 4060.

As you want to think about it, just to reiterate what John said, you know, what is typical as we have more camera content and that becomes a bigger piece of the total revenue pie.

It is shipped earlier.

Tore Svanberg: Got it. And related to that, you mentioned you expect inventories to be down sequentially September quarter. So does that also have something to do with that, or is it just purely the GlobalFoundries' commitments that are sort of trailing off?

So if you think about that trend of, you know, it is a change what you had seen in years past the camera content bigger piece, the pie get shifted earlier and then certainly there was some amount of pull in which you know is hard for us to determine so I think as you think about that moving forward it's not um it's really a a mix of the camera content and the total pi and how that is just shifted forward from where we have to um we have to place in in our customer supply chain.

Tore Svanberg: Got it. And related to that, you mentioned you expect inventory to be down sequentially in September quarter. So does that also have something to do with that, or is it just purely, you know, the Global Foundries commitments that are sort of trailing off?

John Forsyth: Yeah. It's mostly the GlobalFoundries commitments trailing off as we continue to work through that and manage both our customer demand and our GF contract. So we'll continue to see that going down. As we said in the last call, we had a peak there. And that's really all that is. And we'll get closer to our inventory sweet spot as we work through that.

Jeff Woolard: Yeah, it's mostly the Global Foundry commitments trailing off as we continue to work through that and manage both our customer demand and our GF contract. So we'll continue to see that going down. You know, as we said in the last call, we had a peak there. And that's really all that is. And we'll get closer to our inventory sweet spot as we work through that.

Got it and, and, and related to that. You mentioned, you expect inventors to be down sequential in September quarter. So it does that also have something to do with that or is it just purely? You know, the global foundries commitments that are sort of uh, trailing off.

Yeah. It's mostly the global Foundry commitments, trailing off, as we continue to, um, work through that and, and manage both our customer demand and our GF contract. Uh, so we'll continue to see that going down. Um, you know, as we said in the last call, we have a peak there. And that's really all that is and we'll get closer to our inventory sweet spot as we as we work through that.

Chelsea Heffernan: Great. Thanks, Tore. That was the last question. So now I'll turn the call back to John for final comments.

Chelsea Heffernan: Great. Thanks, Tori. That was the last question. So now I'll turn the call back to John for final comments.

David Williams: Thank you, Chelsea. In summary, Cirrus Logic delivered outstanding results for the June quarter, driven by strong demand for components shipping into smartphones. We also continue to make great progress in each major area of our long-term strategy. And the team at Cirrus remains very excited about the opportunities in front of us. I'd like to thank you for your continued interest in our progress. And I'd like to thank all of our employees around the world for their incredible dedication to innovation and to supporting our customers' success. Before we close, I'd also like to note that we will be participating in the KeyBanc Technology Leadership Forum in Deer Valley on 12 August. Please check our investor website for the details. I'd like to thank everybody for participating today. Goodbye.

John Forsyth: Thank you, Chelsea. In summary, Cirrus Logic delivered outstanding results for the June quarter, driven by strong demand for components shipping into smartphones. We also continue to make great progress in each major area of our long-term strategy. And the team at Cirrus remains very excited about the opportunities in front of us. I'd like to thank you for your continued interest in our progress. And I'd like to thank all of our employees around the world for their incredible dedication to innovation and to supporting our customers' success. Before we close, I'd also like to note that we will be participating in the KeyBanc Technology Leadership Forum in Deer Valley on 12 August. Please check our investor website for the details. I'd like to thank everybody for participating today. Goodbye.

John Forsyth: Thank you, Chelsea. In summary, CIRRUS LOGIC delivered outstanding results for the June quarter, driven by strong demand for components shipping into smartphones. We also continued to make great progress in each major area of our long-term strategy. And the team at CIRRUS remains very excited about the opportunities in front of us. I'd like to thank you for your continued interest in our progress. And I'd like to thank all of our employees around the world for their incredible dedication to innovation and to supporting our customers' success. Before we close, I'd also like to note that we will be participating in the KeyBank Technology Leadership Forum in Deer Valley on August the 12th. Please check our investor website for the details. I'd like to thank everybody for participating today. Goodbye. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect, thank you.

Great. Thanks Tori. That was the last question. So now I'll turn the call back to John for final comments.

Thank you, Chelsea.

In summary serious logic delivered outstanding results for the June quarter driven by strong demand for components shipping into smartphones. We also continue to make great progress on each major area of our long-term strategy and the team at xerus remains, very excited about the opportunities in front of us.

I'd like to thank you for your continued interest in our progress. And I'd like to thank all of our employees around the world for their incredible dedication to innovation and to supporting our customers' success.

Before we close, I'd also like to note that we will be participating in the Key Bank. Technology leadership Forum in Deer Valley on August the 12th, please check our investor website for the details.

Like to thank everybody for participating today. Goodbye.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Ladies and gentlemen, that concludes today's call, thank you all for joining. You may now disconnect

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