Q4 2026 Cirrus Logic Inc Earnings Call

May 6, 2026

Operator: Year 2026 financial results Q&A Session. At this time, participants are in a listen-only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing 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 call over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may begin.

Operator: Year 2026 Financial Results Q&A Session. At this time, participants are in a listen-only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing 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 call over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may begin.

Speaker #1: 2026 financial results Q&A session. At this time, participants are in a listen-only mode. After a brief statement, we will open up the call for questions from analysts.

Speaker #1: Instructions for queuing 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 call over to Ms. Chelsea Heffernan, Vice President of Investor Relations.

Speaker #1: Ms. Heffernan, you may begin.

Speaker #2: 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.

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 Q4 and full 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 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.

Speaker #2: Today at approximately 4:00 PM Eastern Time, we announced our financial results for the fourth quarter and full 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.

Speaker #2: 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.

Chelsea Heffernan: 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.

Speaker #2: 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.

Speaker #2: 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.

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 our risk factors that could cause actual results to differ materially from current expectations. Now I'd like to turn the call over to John.

Speaker #2: 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 #2: 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.

Chelsea Heffernan: 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 our risk factors that could cause actual results to differ materially from current expectations. Now I'd like to turn the call over to John.

Speaker #2: For additional discussion of our risk factors that could cause actual results to differ materially, from current expectations. Now I'd like to turn the call over to John.

Speaker #3: Thank you, Chelsea. Good afternoon, everyone, and thank you for joining today's call. As you have seen in the press release, in the March quarter, CIRRUS LOGIC delivered revenue of $448.5 million.

John Forsyth: Thank you, Chelsea. Good afternoon, everyone, and thank you for joining today's call. As you have seen in the press release, in Q1, Cirrus Logic delivered revenue of $448.5 million, above the midpoint of our guidance range. For the full fiscal year 2026, Cirrus Logic delivered record revenue of $2 billion, up 5% from the prior year, driven by demand for components shipping into smartphones as well as higher PC sales. We are also pleased to have delivered record GAAP and non-GAAP earnings per share for the full fiscal year. In a moment, I'll hand the call over to Jeff to walk us through the financial results for Q1 and the full fiscal year in greater detail.

Speaker #3: Above the midpoint of our guidance range. For the full fiscal year 2026, CIRRUS LOGIC delivered record revenue of $2 billion, up 5% from the prior year, driven by demand for components shipping into smartphones as well as higher PC sales.

Speaker #3: We are also pleased to have delivered record GAAP and non-GAAP earnings per share for the full fiscal year. 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.

John Forsyth: We are also pleased to have delivered record GAAP and non-GAAP earnings per share for the full fiscal year. In a moment, I'll hand the call over to Jeff to walk us through the financial results for Q1 and the full fiscal year in greater detail. Before I do that, I'd like to take a few minutes to highlight just some of the many accomplishments across our business over the past year.

Speaker #3: Before I do that, I'd like to take a few minutes to highlight just some of the many accomplishments across our business over the past year.

John Forsyth: Before I do that, I'd like to take a few minutes to highlight just some of the many accomplishments across our business over the past year. As many of you are aware, our long-term strategy for growth at Cirrus is based on three principles. First, we aim to maintain a strong leadership position in our core flagship smartphone audio business. Second, we seek to expand the value and range of high-performance mixed-signal content with which we serve our customers in smartphones and similar products. Third, we aim to leverage our world-class expertise and IP in both audio and high-performance mixed signal to grow and broaden our business in new markets. In FY 2026, we made significant progress in each of these areas.

Speaker #3: As many of you are aware, our long-term strategy for growth at CIRRUS is based on three principles. First, we aim to maintain a strong leadership position in our core flagship smartphone audio business.

John Forsyth: As many of you are aware, our long-term strategy for growth at Cirrus is based on three principles. First, we aim to maintain a strong leadership position in our core flagship smartphone audio business. Second, we seek to expand the value and range of high-performance mixed-signal content with which we serve our customers in smartphones and similar products.

Speaker #3: Second, we seek to expand the value and range of high-performance mixed-signal content with which we serve our products. And third, we aim to leverage our world-class expertise and IP in both audio and high-performance mixed-signal to grow and broaden our business in new markets.

John Forsyth: Third, we aim to leverage our world-class expertise and IP in both audio and high-performance mixed signal to grow and broaden our business in new markets. In FY 2026, we made significant progress in each of these areas.

Speaker #3: In FY26, we made significant progress in each of these areas. In our flagship smartphone audio business, we continued to see robust demand for our latest generation custom-boosted amplifier and 22-nanometer smart codec.

John Forsyth: In our flagship smartphone audio business, we continued to see robust demand for our latest generation custom boosted amplifier and 22-nanometer smart codec, both of which are designed to deliver meaningful system-level improvements and exceptional performance. As a consequence of their advanced design, we expect these products to enjoy extended life cycles and to ship for a significantly longer period than is typical for consumer products, thus providing solid long-term visibility and sustained revenue contribution. This, in turn, enables the company to deploy our R&D resources in new areas that can drive further innovation and growth. In our high-performance mixed-signal business, our goal is to expand the range and value of advanced products with which we serve our customers. Here, we also made exciting progress in FY 2026.

Speaker #3: Both of which are designed to deliver meaningful system-level improvements and exceptional performance. As a consequence of their advanced design, we expect these products to enjoy extended lifecycles and to ship for a significantly longer period than is typical for consumer products.

Speaker #3: Thus providing solid long-term visibility and sustained revenue contribution. This, in turn, enables the company to deploy our R&D resources in new areas that can drive further innovation and growth.

John Forsyth: This, in turn, enables the company to deploy our R&D resources in new areas that can drive further innovation and growth. In our high-performance mixed-signal business, our goal is to expand the range and value of advanced products with which we serve our customers. Here, we also made exciting progress in FY 2026.

Speaker #3: In our high-performance mixed-signal business, our goal is to expand the range and value of advanced products with which we serve our customers. And here we also made exciting progress in FY26.

Speaker #3: Customer demand for our camera controllers remained strong and engagement with our customer around our roadmap for future camera controllers was equally robust. These products continue to enhance a central part of the smartphone experience.

John Forsyth: Customer demand for our camera controllers remained strong, and engagement with our customer around our roadmap for future camera controllers was equally robust. These products continue to enhance a central part of the smartphone experience, and today we are actively designing the next generation of components and technologies that will bring advanced functionality and differentiation to the camera performance of future smartphones. We are also very pleased with our accomplishments in advanced battery and power applications, where we validated new technologies and intellectual property in silicon and demonstrated our ability to enhance battery performance, health, and longevity, as well as to improve efficiency for application-specific power management solutions. Moreover, our goal of expanding HPMS content in smartphones has frequently been advanced by demonstrating our capabilities in components designed for other end products.

Speaker #3: And today we are actively designing the next generation of components and technologies that will bring advanced functionality and differentiation to the camera performance of future smartphones.

Speaker #3: We are also very pleased with our accomplishments in advanced battery and power applications. Where we validated new technologies and intellectual property in silicon and demonstrated our ability to enhance battery performance, health, and longevity as well as to improve efficiency for application-specific power management solutions.

John Forsyth: We are also very pleased with our accomplishments in advanced battery and power applications, where we validated new technologies and intellectual property in silicon and demonstrated our ability to enhance battery performance, health, and longevity, as well as to improve efficiency for application-specific power management solutions. Moreover, our goal of expanding HPMS content in smartphones has frequently been advanced by demonstrating our capabilities in components designed for other end products.

Speaker #3: Moreover, our goal of expanding HBMS content in smartphones has frequently been advanced by demonstrating our capabilities in components designed for other end products. And in the past year, we were excited to deliver new high-performance power solutions for both accessory and tablet devices.

John Forsyth: In the past year, we were excited to deliver new high-performance power solutions for both accessory and tablet devices. While we continue to pursue multiple opportunities in power, our progress in this area was exemplified by a recent announcement from our largest customer that highlights our collaboration on a solution to support Face ID implementations in future products. This reflects a two-decade engineering partnership that has been built on exceptional execution, continuous innovation, and trust. It also marks an exciting new application space for Cirrus Logic, and we are presently in the design phase of our first product in this area, a smart power IC for 3D sensing that integrates high-efficiency power delivery, precision current drive, and programmable control. The third pillar of our strategy is to leverage our audio and high-performance mixed-signal expertise in new applications and markets outside of smartphones.

Speaker #3: While we continue to pursue multiple opportunities in power, our progress in this area was exemplified by a recent announcement from our largest customer that highlights our collaboration on a solution to support Face ID implementations in future products.

Speaker #3: This reflects a two-decade engineering partnership that has been built on exceptional execution, continuous innovation, and trust. It also marks an exciting new application space for CIRRUS LOGIC, and we are presently in the design phase of our first product in this area, a smart power IC for 3D sensing, that integrates high-efficiency power delivery, precision current drive, and programmable control.

John Forsyth: This reflects a two-decade engineering partnership that has been built on exceptional execution, continuous innovation, and trust. It also marks an exciting new application space for Cirrus Logic, and we are presently in the design phase of our first product in this area, a smart power IC for 3D sensing that integrates high-efficiency power delivery, precision current drive, and programmable control. The third pillar of our strategy is to leverage our audio and high-performance mixed-signal expertise in new applications and markets outside of smartphones.

Speaker #3: The third pillar of our strategy is to leverage our audio and high-performance mixed-signal expertise in new applications and markets outside of smartphones. In PCs, we delivered strong year-over-year revenue growth in FY26, largely driven by share gains across all PC segments.

John Forsyth: In PCs, we delivered strong year-over-year revenue growth in FY 2026, largely driven by share gains across all PC segments. We introduced new amplifiers and codecs that address a wider range of platforms, including mainstream and AI-enabled PCs. Looking ahead, we believe voice will be a critical enabler for agentic interaction across many different types of edge device, including PCs, and we will continue to leverage our expertise and intellectual property in this area to deliver significant enhancements to the AI user experience. Design momentum across our PC portfolio is very robust, and we expect increased adoption of SDCA and higher content per device to contribute to further strong growth in our PC business in FY 2027. Beyond PCs, we made meaningful progress expanding our general market product portfolio in FY 2026 and are encouraged by the momentum we are building in this area of our business.

Speaker #3: We introduced new amplifiers and codecs that address a wide range of platforms, including mainstream and AI-enabled PCs. Looking ahead, we believe voice will be a critical enabler for agentic interaction across many different types of edge device, including PCs, and we will continue to leverage our expertise and intellectual property in this area to deliver significant enhancements to the AI user experience.

Speaker #3: Design momentum across our PC portfolio is very robust, and we expect increased adoption of SDCA and higher content per device to contribute to further strong growth in our PC business in FY27.

John Forsyth: Design momentum across our PC portfolio is very robust, and we expect increased adoption of SDCA and higher content per device to contribute to further strong growth in our PC business in FY 2027. Beyond PCs, we made meaningful progress expanding our general market product portfolio in FY 2026 and are encouraged by the momentum we are building in this area of our business.

Speaker #3: Beyond PCs, we made meaningful progress expanding our general market product portfolio in FY26 and are encouraged by the momentum we are building in this area of our business.

Speaker #3: We introduced multiple new product families that target a broad range of customers across the professional audio, automotive, industrial, and imaging end markets. Our progress included continuing to ramp production of our ultra-high-performance audio ADCs (DACs) and codec both professional audio and automotive applications, sampling our latest family of prosumer high-performance audio converters, and launching a new series of industrial imaging components designed for high precision scanning systems.

John Forsyth: We introduced multiple new product families that target a broad range of customers across the professional audio, automotive, industrial, and imaging end markets. Our progress included continuing to ramp production of our ultra-high performance audio ADCs, DACs, and codec, both professional audio and automotive applications, sampling our latest family of prosumer high-performance audio converters, and launching a new series of industrial imaging components designed for high-precision scanning systems. Finally, over the past year, we made great progress both in driving the geographic diversification of our supply chain and advancing the process technologies that help us deliver exceptional performance in our products. This included joining our largest customer's American manufacturing program, where we are working with both our customer and GlobalFoundries to develop new process technologies and working towards manufacturing products for the first time at the GlobalFoundries facility in Malta, New York.

Speaker #3: Finally, over the past year, we made great progress both in driving the geographic diversification of our supply chain and advancing the process technologies that help us deliver exceptional performance in our products.

John Forsyth: Finally, over the past year, we made great progress both in driving the geographic diversification of our supply chain and advancing the process technologies that help us deliver exceptional performance in our products. This included joining our largest customer's American manufacturing program, where we are working with both our customer and GlobalFoundries to develop new process technologies and working towards manufacturing products for the first time at the GlobalFoundries facility in Malta, New York.

John Forsyth: Place to contribute to further strong growth in our PC business in FY27. Beyond PCs, we made meaningful progress expanding our general market product portfolio in FY26 and are encouraged by the momentum we are building in this area of our business. We introduced multiple new product families that target a broad range of customers across the professional audio, automotive, industrial, and imaging end markets. Our progress included continuing to ramp production of our ultra-high performance audio ADCs, DACs, and codec, both professional audio and automotive applications, sampling our latest family of prosumer high-performance audio converters, and launching a new series of industrial imaging components designed for high-precision scanning systems. Finally, over the past year, we made great progress both in driving the geographic diversification of our supply chain and advancing the process technologies that help us deliver exceptional performance in our products.

To contribute to further, strong growth in our PC business. In FY 27.

Speaker #3: This included joining our largest customers, American manufacturing program, where we are working with both our customer and global foundries to develop new process technologies and working towards manufacturing products for the first time at the global foundries facility in Malta, New York.

Beyond PCS. We made meaningful progress, expanding our General market product portfolio in FY, 26 and are by the momentum. We are building in this area of our business.

Speaker #3: To summarize our progress over the past year, we continued our track record of consistent execution as we delivered record financial results broadened our engagement with our largest customer, and advanced our plan to drive application and market diversification.

John Forsyth: To summarize our progress over the past year, we continued our track record of consistent execution as we delivered record financial results, broadened our engagement with our largest customer, and advanced our plan to drive application and market diversification. As we look ahead, we see the strongest pipeline of opportunities in front of us in recent history. Accordingly, to capitalize on these opportunities, we plan to increase our R&D investment throughout fiscal 2027. Cirrus has a strong record of operational discipline. We have previously made it clear to shareholders that we'll accelerate R&D investment where we have high confidence in the long-term benefits to the business of doing so. We believe these investments will generate substantial returns over time and that they will continue to drive shareholder value creation well into the future.

We introduced multiple new product families, that Target a broad range of customers across the professional audio automotive industrial and imaging and markets.

Our progress included continuing to ramp production of our Ultra High Performance Audio, adcs Dax and codec, both professional audio and Automotive applications.

Sampling, our latest family of prosumer High Performance Audio converters.

Speaker #3: As we look ahead, we see the strongest pipeline of opportunities in front of us in recent history. Accordingly, to capitalize on these opportunities, we plan to increase our R&D investment throughout fiscal 27.

And launching a new series of industrial Imaging components designed for high Precision scanning systems.

John Forsyth: Accordingly, to capitalize on these opportunities, we plan to increase our R&D investment throughout fiscal 2027. Cirrus has a strong record of operational discipline. We have previously made it clear to shareholders that we'll accelerate R&D investment where we have high confidence in the long-term benefits to the business of doing so.

Speaker #3: CIRRUS has a strong record of operational discipline, and we have previously made it clear to shareholders that we'll accelerate R&D investment where we have high confidence in the long-term benefits to the business of doing so.

John Forsyth: This included joining our largest customers' American manufacturing program, where we are working with both our customer and GlobalFoundries to develop new process technologies and working towards manufacturing products for the first time at the GlobalFoundries facility in Malta, New York. To summarize our progress over the past year, we continued our track record of consistent execution as we delivered record financial results, broadened our engagement with our largest customer, and advanced our plan to drive application and market diversification. As we look ahead, we see the strongest pipeline of opportunities in front of us in recent history. Accordingly, to capitalize on these opportunities, we plan to increase our R&D investment throughout FY27.

Finally over the past year, we made great progress both in driving the geographic diversification of our supply chain and advancing the process technologies that help us deliver exceptional performance in our products.

Speaker #3: We believe these investments will generate substantial returns over time and that they will continue to drive shareholder value creation, well into the future. And with that, let me now turn the call over to Jeff to provide an overview of our financial results for the fourth quarter and for the full fiscal year 2026, as well as the outlook for the first quarter of fiscal 2027.

John Forsyth: We believe these investments will generate substantial returns over time and that they will continue to drive shareholder value creation well into the future. With that, let me now turn the call over to Jeff to provide an overview of our financial results for the Q4 and for the full fiscal year 2026, as well as the outlook for the Q1 of fiscal 2027.

This included joining our largest customers American manufacturing program where we are working with both our customer and Global Founders to develop new process, Technologies and working towards manufacturing products. For the first time at the global foundries facility, in Malta New York.

John Forsyth: With that, let me now turn the call over to Jeff to provide an overview of our financial results for the Q4 and for the full fiscal year 2026, as well as the outlook for the Q1 of fiscal 2027.

Speaker #3: Thank you, John. Good afternoon, everyone. We'll start with a summary of our financial results for fiscal Q4 and full fiscal year 2026, then provide guidance for our Q1 fiscal year 2027.

Jeff Woolard: Thank you, John. Good afternoon, everyone. We'll start with a summary of our financial results for fiscal Q4 and full fiscal year 2026, then provide guidance for our Q1 fiscal year 2027. Revenue in Q4 fiscal year 2026 was $448.5 million, which was above the midpoint of our guidance range. On a sequential basis, revenue was down 23% due to lower smartphone unit volumes. On a year-over-year basis, revenue was up 6%, driven primarily by strong demand for components shipping into smartphones. This was partially offset by pricing reductions and, to a lesser extent, lower general market sales. Fiscal year 2026 was a record $2 billion, up 5% from a year ago. This increase was driven by demand for components shipping into smartphones as well as higher component sales into PCs. Turning to gross profit and gross margin.

To summarize our progress over the past year, we continued our track record of consistent execution. As we delivered record financial results, we broadened our engagement with our largest customer and advanced our plan to drive application and market diversification.

As we look ahead, we see the strongest pipeline of opportunities in front of us in recent history.

Speaker #3: Revenue in Q4 fiscal year 2026 was $448.5 million. Which was above the midpoint of our guidance range. On a sequential basis, revenue was down 23% due to lower smartphone unit volumes.

John Forsyth: Cirrus has a strong record of operational discipline, we have previously made it clear to shareholders that we'll accelerate R&D investment where we have high confidence in the long-term benefits to the business of doing so. We believe these investments will generate substantial returns over time, and that they will continue to drive shareholder value creation well into the future. With that, let me now turn the call over to Jeff to provide an overview of our financial results for the Q4 and for the full fiscal year 2026, as well as the outlook for the Q1 of fiscal 2027.

Accordingly, to capitalize on these opportunities, we plan to increase our R&D investment throughout fiscal '27.

Speaker #3: On a year-over-year basis, revenue was up 6%, driven primarily by strong demand for components shipping into smartphones. This was partially offset by pricing reductions and, to a lesser extent, lower general market sales.

Jeff Woolard: On a year-over-year basis, revenue was up 6%, driven primarily by strong demand for components shipping into smartphones. This was partially offset by pricing reductions and, to a lesser extent, lower general market sales. Fiscal year 2026 was a record $2 billion, up 5% from a year ago. This increase was driven by demand for components shipping into smartphones as well as higher component sales into PCs. Turning to gross profit and gross margin.

Serious has a strong record of operational, discipline, and we have previously made it. Clear to shareholders, that will accelerate R&D investment where we have high confidence in the long-term benefits to the business of doing. So,

We believe these investments will generate substantial returns over time and that they will continue to drive shareholder value creation well into the future.

Speaker #3: Fiscal year 2026 was a record $2 billion. Of 5% from a year ago. This increase was driven by demand for components shipping into smartphones, as well as higher component sales into PCs.

Jeff Woolard: Thank you, John. Good afternoon, everyone. We'll start with a summary of our financial results for Q4 and full fiscal year 2026, then provide guidance for our Q1 fiscal year 2027. Revenue in Q4 fiscal year 2026 was $448.5 million, which was above the midpoint of our guidance range. On a sequential basis, revenue was down 23% due to lower smartphone unit volumes. On a year-over-year basis, revenue was up 6%, driven primarily by strong demand for components shipping into smartphones. This was partially offset by pricing reductions and to a lesser extent, lower general market sales. Fiscal year 2026 was a record $2 billion, up 5% from a year ago. This increase was driven by demand for components shipping into smartphones, as well as higher component sales into PCs. Turning to gross profit and gross margin.

And with that, let me now turn the call over to Jeff to provide an overview of our financial results for the fourth quarter, and for the full fiscal year 2026 as well as the outlook for the first quarter of fiscal 2027.

Speaker #3: Turning to gross profit and gross margin. Non-GAAP gross profit in the March quarter was $237.9 million. And non-GAAP gross margin was 53%. On a year-over-year basis, the decline in gross margin is primarily due to higher freight expenses.

Jeff Woolard: Non-GAAP gross profit in Q4 was $237.9 million, and non-GAAP gross margin was 53%. On a year-over-year basis, the decline in gross margin is primarily due to higher freight expenses. Non-GAAP gross profit for the fiscal year 2026 was $1.1 billion, and non-GAAP gross margin was 52.8%. The year-over-year increase in gross margin reflects a more favorable product mix. I'll turn to operating expenses. Non-GAAP operating expenses for Q4 were $126.1 million. On a sequential basis, OpEx was down $6.9 million, primarily due to lower variable compensation and employee-related expenses. On a year-over-year basis, operating expense was up $6.1 million, mostly due to higher employee-related expenses.

Thank you, John. Good afternoon, everyone. We'll start with a summary of our financial results for fiscal Q4 and full fiscal year 2026. Then provide guidance for our q1 fiscal year 2027.

Speaker #3: Non-GAAP gross profit for the fiscal year 2026 was $1.1 billion, and non-GAAP gross margin was 52.8%. The year-over-year increase in gross margin reflects a more favorable product mix.

Revenue in Q4, fiscal year 2026 was 448.5 Million which was above the midpoint of our guidance range. On a sequential basis. Revenue was down, 23% due to lower smartphone, unit volumes.

Speaker #3: Now I'll turn to operating expenses. Non-GAAP operating expenses for the fourth quarter were $126.1 million. On a sequential basis, OPEX was down 6.9 million, primarily due to lower variable compensation and employee-related expenses.

Jeff Woolard: I'll turn to operating expenses. Non-GAAP operating expenses for Q4 were $126.1 million. On a sequential basis, OpEx was down $6.9 million, primarily due to lower variable compensation and employee-related expenses. On a year-over-year basis, operating expense was up $6.1 million, mostly due to higher employee-related expenses.

On a year-over-year basis. Revenue was up, 6% driven, primarily by strong demand for components shipping in the smartphones.

This was partially offset by pricing reductions and to a lesser extent. Lower General, market sales, fiscal year, 2026 was a record 2 billion of 5% from a year ago.

Speaker #3: On a year-over-year basis, operating expense was up 6.1 million, mostly due to higher employee-related expenses. This was partially offset by a reduction in product development costs, primarily associated with the timing of new products.

This increase was driven by demand for components shipping in the smartphones, as well as higher component sales into PCs.

Jeff Woolard: Non-GAAP gross profit in Q1 was $237.9 million, and non-GAAP gross margin was 53%. On a year-over-year basis, the decline in gross margin is primarily due to higher freight expenses. Non-GAAP gross profit for FY26 was $1.1 billion, and non-GAAP gross margin was 52.8%. The year-over-year increase in gross margin reflects a more favorable product mix. Now I'll turn to operating expenses. Non-GAAP operating expenses for Q4 were $126.1 million. On a sequential basis, OpEx was down $6.9 million, primarily due to lower variable compensation and employee-related expenses. On a year-over-year basis, operating expense was up $6.1 million, mostly due to higher employee-related expenses.

Jeff Woolard: This was partially offset by a reduction in product development costs, primarily associated with the timing of new products. Non-GAAP operating income for the quarter was $111.8 million, or 24.9% of revenue. For fiscal year 2026, non-GAAP operating expense was $506.4 million, up $12.3 million, primarily due to an increase in employee-related expenses. Non-GAAP operating income for the fiscal year 2026 was $548.8 million. As a result, fiscal year 2026 operating margin came in at 27.5%, up from 26.5% in the prior year. Turning now to taxes. For the March quarter, our non-GAAP tax rate was 16%. For fiscal year 2026, non-GAAP effective tax rate was 16.4%.

Turning to gross profit and gross margin, non-GAAP gross profit in the March quarter was $237.9 million, and non-GAAP gross margin was 53%.

Speaker #3: Non-GAAP operating income for the quarter was $111.8 million, or 24.9% of revenue. For fiscal year 2026, non-GAAP operating expense was $506.4 million. Up 12.3 million, primarily due to an increase in employee-related expenses.

On a year-over-year basis to decline and gross margin is primarily due to higher Freight expenses.

Non-gaap growth profits for the fiscal year 2026 was 1.1 billion and non-gaap gross margin was 52.8%.

The year-over-year increase in gross, margin reflects. In more favorable product mix.

Speaker #3: Non-GAAP operating income for the fiscal year 2026 was $548.8 million. As a result, fiscal year 2026 operating margin came in at $27.5%, up from $26.5% in the prior year.

Jeff Woolard: Non-GAAP operating income for the fiscal year 2026 was $548.8 million. As a result, fiscal year 2026 operating margin came in at 27.5%, up from 26.5% in the prior year. Turning now to taxes. For the March quarter, our non-GAAP tax rate was 16%. For fiscal year 2026, non-GAAP effective tax rate was 16.4%.

Now, I'll turn to operating expenses.

Non-gaap operating expenses for the fourth quarter or 126.1 million on a sequential basis. Opex was down 6.9 million primarily due to lower variable compensation and employee related expenses.

Speaker #3: Turning now to taxes, for the March quarter, our non-GAAP tax rate was 16%. For fiscal year 2026, non-GAAP effective tax rate was 16.4%. And lastly, on the P&L, non-GAAP net income in the fourth quarter was $102.3 million, or $1.95 per share.

On a year-over-year basis. Operating expense, was up 6.1 million.

Jeff Woolard: This was partially offset by a reduction in product development costs, primarily associated with the timing of new products. Non-GAAP operating income for the quarter was $111.8 million or 24.9% of revenue. For fiscal year 2026, non-GAAP operating expense was $506.4 million, up $12.3 million, primarily due to an increase in employee-related expenses. Non-GAAP operating income for the fiscal year 2026 was $548.8 million. As a result, fiscal year 2026 operating margin came in at 27.5%, up from 26.5% in the prior year. Turning now to taxes. For the March quarter, our non-GAAP tax rate was 16%. For fiscal year 2026, non-GAAP effective tax rate was 16.4%.

Mostly due to higher employee related expenses.

Jeff Woolard: Lastly, on the P&L, non-GAAP net income in Q4 was $102.3 million, or $1.95 per share. For fiscal year 2026, non-GAAP net income was $489.3 million, resulting in record earnings per share of $9.26, up from $7.54 in fiscal year 2025. Now let's turn to the balance sheet. Our balance sheet continues to remain strong, and we ended fiscal year 2026 with approximately $1.2 billion in cash and investments. Our ending cash and investments balance was up $319 million from the prior year, primarily from cash from operations, which was partially offset by share repurchases. We continue to have no debt outstanding.

This was partially offset by a reduction in product development costs, primarily associated with the timing of new products.

Speaker #3: For fiscal year 2026, non-GAAP net income was $489.3 million, resulting in record earnings per share of $9.26, up from $7.54 in fiscal year 2025.

Non-GAAP operating income for the quarter was $111.8 million, or 24.9% of revenue.

For fiscal year 2026, non-GAAP operating expense was $506.4 million, up 12.3%, primarily due to an increase in employee-related expenses.

Speaker #3: Now let's turn to the balance sheet. Our balance sheet continues to remain strong, and we ended fiscal year 2026 with approximately $1.2 billion in cash and investments.

Jeff Woolard: Our balance sheet continues to remain strong, and we ended fiscal year 2026 with approximately $1.2 billion in cash and investments. Our ending cash and investments balance was up $319 million from the prior year, primarily from cash from operations, which was partially offset by share repurchases. We continue to have no debt outstanding.

Speaker #3: Our ending cash and investments $319 million. From the prior year, primarily from cash from operations, which was partially offset by share repurchases. We continue to have no debt outstanding.

Fiscal year 2026 was 548.8 Million as a result, fiscal year 2026 operating margin came in at 27.5% up from 26.5% in the prior year.

Turning now to taxes for the March quarter, our non-GAAP tax rate was 16%.

Jeff Woolard: Lastly, on the P&L, non-GAAP net income in Q4 was $102.3 million or $1.95 per share. For fiscal year 2026, non-GAAP net income was $489.3 million, resulting in record earnings per share of $9.26, up from $7.54 in fiscal year 2025. Now let's turn to the balance sheet. Our balance sheet continues to remain strong, and we ended fiscal year 2026 with approximately $1.2 billion in cash and investments. Our ending cash and investments balance was up $319 million from the prior year, primarily from cash from operations, which was partially offset by share repurchases. We continue to have no debt outstanding.

Speaker #3: Inventory balance at the end of the fourth quarter was $240.9 million, up from $189.5 million in Q3 fiscal year 2026, and we ended the quarter with $104 days of inventory.

for fiscal year 2026 non-gaap effective tax rate was 16.4%,

Jeff Woolard: Inventory balance at the end of Q4 was $240.9 million, up from $189.5 million in Q3 fiscal year 2026, and we ended the quarter with 104 days of inventory. Turning to cash flow. Cash flow from operations was $151.4 million in the March quarter, and CapEx was $2.4 million, resulting in a non-GAAP free cash flow margin for the quarter of approximately 33%. For fiscal year 2026, the cash flow from operations was $650.6 million, and CapEx was $14.8 million. This resulted in a non-GAAP free cash flow margin of 32%.

And lastly, on the p&l, non-gaap net income. In the fourth quarter was 102.3 million or 1.95 cents per share.

Speaker #3: Turning to cash flow. Cash flow from operations was $151.4 million in the March quarter and CAPEX was $2.4 million. Resulting in a non-GAAP free cash flow margin for the quarter of approximately 33%.

For fiscal year 2026, non-GAAP net income was $489.3 million, resulting in record earnings per share of $9.26, up from $7.54 in fiscal year 2025.

Speaker #3: For fiscal year 2026, the cash flow from operations was $650.6 million, and CAPEX was $14.8 million. This resulted in a non-GAAP free cash flow margin of 32%.

Speaker #3: On share buybacks in Q4, we utilized $70 million to repurchase $491,000 shares of our common stock at an average price of $142.54. During fiscal year 2026, we returned $280 million of cash to shareholders as we repurchased $2.5 million shares at an average price of $113.91.

Jeff Woolard: On share buybacks in Q4, we utilized $70 million to repurchase 491,000 shares of our common stock at an average price of $142.54. During fiscal year 2026, we returned $280 million of cash to shareholders as we repurchased 2.5 million shares at an average price of $113.91. At the end of Q4 fiscal year 2026, the company had $274.1 million remaining on its share repurchase authorization. Now on to guidance. For Q1 fiscal year 2027, we expect revenue in the range of $430 to $490 million, up 3% sequentially and 13% year over year at the midpoint. We expect gross margin to range from 51% to 53%.

Jeff Woolard: Inventory balance at the end of Q4 was $240.9 million, up from $189.5 million in Q3 fiscal year 2026. We ended the quarter with 104 days of inventory. Turning to cash flow. Cash flow from operations was $151.4 million in the March quarter, and CapEx was $2.4 million, resulting in a non-GAAP free cash flow margin for the quarter of approximately 33%. For fiscal year 2026, the cash flow from operations was $650.6 million, and CapEx was $14.8 million. This resulted in a non-GAAP free cash flow margin of 32%.

Now, let's turn to the balance sheet, our balance sheet continues to remain strong, and we ended fiscal year 2026 with approximately 1.2 billion in cash and Investments. Our ending cash and Investments balance was up 319 million from the prior year, primarily from cash from operations, which was partially offset by Sheri purchases. We continue to have no debt outstanding.

Inventory balance, at the end of the fourth quarter was 240.9 Million up from 189.5 million in Q3 fiscal year 2026 and we ended the quarter with 104 days of inventory.

Turning to cash flow.

Speaker #3: At the end of Q4 fiscal year 2026, the company had $274.1 million remaining on its share repurchase authorization. Now onto guidance. For Q1 fiscal year 2027, we expect revenue in the range of $430 to $490 million.

Jeff Woolard: At the end of Q4 fiscal year 2026, the company had $274.1 million remaining on its share repurchase authorization. Now on to guidance. For Q1 fiscal year 2027, we expect revenue in the range of $430 to $490 million, up 3% sequentially and 13% year over year at the midpoint. We expect gross margin to range from 51% to 53%.

Cash flow from operations, was 151.4 million in the March quarter and capex was 2.4 million resulting in a non-gaap free cash flow margin for the quarter of approximately 33%.

Speaker #3: Up 3% sequentially, and 13% year-over-year at the midpoint. We expect gross margin to range from 51 to 53%. Non-GAAP operating expense is expected to range from $132 to $138 million.

For fiscal year 2026, the cash flow from operations was 650.6 million and capex was 14.8 million.

Jeff Woolard: On share buybacks in Q4, we utilized $70 million to repurchase 491,000 shares of our common stock at an average price of $142.54. During fiscal year 2026, we returned $280 million of cash to shareholders as we repurchased 2.5 million shares at an average price of $113.91. At the end of Q4 fiscal year 2026, the company had $274.1 million remaining on its share repurchase authorization. On to guidance. For Q1 fiscal year 2027, we expect revenue in the range of $430 to 490 million, up 3% sequentially and 13% year over year at the midpoint. We expect gross margin to range from 51% to 53%.

This resulted in a non-GAAP free cash flow margin of 32%.

Jeff Woolard: Non-GAAP operating expense is expected to range from $132 to 138 million, up sequentially, largely due to increases in R&D. As John previously mentioned, given the breadth of opportunities ahead of us, we expect fiscal year 2027 operating expenses to increase. We expect our fiscal year 2027 non-GAAP tax rate to be approximately 16% to 18%. In closing, we delivered record financial results and made significant progress executing on our strategy to drive application and market diversification. 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 to Chelsea to start the Q&A session.

Speaker #3: Up sequentially, largely due to increases in R&D. As John previously mentioned, given the breadth of opportunities ahead of us, we expect fiscal year 2027 operating expenses to increase.

On share Buybacks. In Q4 we utilized 70 million dollars to repurchase. 491,000 shares of our common stock at an average price of 142.54.

Speaker #3: We expect our fiscal year 2027 non-GAAP tax rate to be approximately 16 to 18 percent. In closing, we delivered record financial results and made significant progress executing on our strategy to drive application and market diversification.

During fiscal year 2026, we returned 280 million of cash to shareholders as we repurchase 2.5 million shares at an average price of 1113.91.

Jeff Woolard: In closing, we delivered record financial results and made significant progress executing on our strategy to drive application and market diversification. 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 to Chelsea to start the Q&A session.

At the end of Q4, fiscal year 2026, the company had 274.1 million remaining on its share of repurchase authorization.

Speaker #3: 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.

Now on to guidance,

For q1 fiscal year 2027, we expect Revenue in the range of 430 to 490 million.

Up, 3%, sequentially.

Speaker #3: With that, let me now turn the call to Chelsea to start the Q&A session.

And 13% year-over-year at the midpoint.

Speaker #1: 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 1 follow-up. Operator, we are now ready to take questions.

Jeff Woolard: Non-GAAP operating expense is expected to range from $132 million to $138 million up sequentially, largely due to increases in R&D. As John previously mentioned, given the breadth of opportunities ahead of us, we expect FY27 operating expenses to increase. We expect our FY27 non-GAAP tax rate to be approximately 16% to 18%. In closing, we delivered record financial results and made significant progress executing on our strategy to drive application and market diversification. 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 to Chelsea to start the Q&A session.

We expect gross margin to range from 51 to 53%.

Non-gaap operating expense is expected to range from 132 to 138 million. Subsequently largely due to increases in R&D

Speaker #3: If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Operator: Your first question comes from Christopher Rolland of Susquehanna. Your line is open. Please go ahead.

As John previously mentioned, given the breadth of opportunities ahead of us, we expect fiscal year 2027 operating expenses to increase.

We expect our fiscal year 2027 non-gaap tax rate to be approximately 16 to 18%.

Speaker #3: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Christopher Rolland, a Susquehanna.

In closing, we delivered record Financial results and made significant progress, executing on our strategy to drive application and Market diversification.

Operator: Your first question comes from Christopher Rolland of Susquehanna. Your line is open. Please go ahead.

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.

Speaker #3: Your line is open. Please go ahead.

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.

With that, let me now, turn the call to Chelsea to start the Q&A session.

Speaker #4: Hi. Thank you for the question. This is Yasha on for Christopher Rolland. I know you guys guide one quarter at a time, but I would love any color around how you think about seasonality and any puts and takes to consider as we get into the fall quarter.

Yash Shah: Hi. Thank you for the question. This is Yash Shah on for Christopher Rolland. I know you guys guide 1 quarter at a time, I would love any color around how you think about seasonality and any puts and takes to consider as we get into Q4.

Yash Shah: Thank you for the question. This is Yash Shah on for Christopher Rolland. I know you guys guide 1 quarter at a time, I would love any color around how you think about seasonality and any puts and takes to consider as we get into Q4.

Thanks Jeff, we will now start the Q&A portion of the earnings call.

Please limit yourself to a single.

Follow-up operator. We are now ready to take questions.

Operator: If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Christopher Rolland of Susquehanna. Your line is open. Please go ahead.

Like to ask a question.

Speaker #5: Yeah, thanks. So as you've noticed from our guide, the guidance for June is a little stronger than the typical average for this quarter. We believe that reflects the continued strength of our customers' current products along with some of the dynamics that we've talked about regarding a greater proportion of our content being ramped a little earlier than in the past.

Jeff Woolard: Yeah, thanks. As you've noticed from our guide, you know, the guidance for Q2 is a little stronger than the typical average for this quarter. You know, we believe that reflects the continued strength of our customers' current products, along with some of the dynamics that we've talked about regarding a greater proportion of our content, being ramped a little earlier than in the past. Yes, we do only guide one quarter, we think that those dynamics likely contribute to a smaller delta between the Q2 and Q3 quarters than what we've seen in the past.

Please press *1 to raise your hand.

To withdraw. Your question. Press star 1 again.

We ask that you pick up your handset when asking a question to allow for Optimum sound quality.

If you are muted locally, please remember to unmute your device.

Please stand by while we compile the Q&A roster.

Speaker #5: And yes, we do only guide one quarter, but we think that those dynamics likely contribute to a smaller delta between the June and September quarters than what we've seen in the past.

Yasha: Hi, thank you for the question. This is Yasha on for Christopher Rolland. I know you guys guide one quarter at a time, but I would love any color around how you think about seasonality and any puts and takes to consider as we get into the fall quarter.

Your first question comes from Christopher Rowland of Susana. Your line is open. Please go ahead.

Speaker #4: Perfect. Thank you. And then my second question is around the PC opportunity. So you called out higher PC sales, and I was wondering how large that business was in fiscal '26.

Yash Shah: Perfect. Thank you. My second question is around the PC opportunity. You called out higher PC sales, and I was wondering how large that business was in fiscal 2026. Would love to know how that opportunity is progressing and if you had any expectations for fiscal year 2027.

Speaker #4: Would love to know how that opportunity is progressing and if you had any expectations for fiscal year '27.

Jeff Woolard: Yeah, thanks. as you've noticed from our guide, you know, the guidance for June is a little stronger than the typical average for this quarter. you know, we believe that reflects the continued strength of our customers' current products, along with some of the dynamics that we've talked about regarding a greater proportion of our content, being ramped a little earlier than in the past. Yes, we do only guide one quarter, but we think that those dynamics likely contribute to a smaller delta between the June and September quarters than what we've seen in the past.

Um this is Yasha on for Christopher Rowland. Um I know you guys guide 1 quarter at a time but I would love any color around. How you think about seasonality and any puts and takes to consider as we get into a fall quarter?

Speaker #5: Yeah, thank you. So as you know, we don't break it out formally, but we do like to give some color to give our investors a sense of the momentum that we're building there.

John Forsyth: Yeah, thank you. As you know, we don't break it out formally, but we do like to give some color to give our investors a sense of the momentum that we're building there. We showed strong growth in fiscal 2026 and exited the year with really good momentum, meaning we expect to see continued strong growth in fiscal 2027. We continue to be excited about the long-term contribution that this can make to our business. One of the things I've said before is that for us to go after a new market, we need to believe it can become a 10% business for us, and that continues to be the case for PC.

Yeah, thanks. Um,

so, as you noticed from our guide,

Speaker #5: So we showed strong growth in fiscal '26 and exited the year with really good momentum, meaning we expect to see continued strong growth in fiscal '27.

Speaker #5: And we continue to be excited about the long-term contribution that this can make to our business. One of the things I've said before is that for us to go after a new market, we need to believe it can become a 10% business for us, and that continues to be the case for PC.

you know, the guidance for June is a little stronger than the typical average for this quarter. Uh, you know, we believe that reflects the continued strength of our customers, current products along with some of the Dynamics that we've talked about regarding a greater proportion of our content, uh, being ramped a little, uh, earlier than in the past.

John Forsyth: We continue to be excited about the long-term contribution that this can make to our business. One of the things I've said before is that for us to go after a new market, we need to believe it can become a 10% business for us, and that continues to be the case for PC.

And yes, we do only need a guide 1 quarter, but we think that those Dynamics likely contribute to a smaller, Delta between the June and September, quarters than what we've seen in the past.

Yasha: Perfect. Thank you. My second question is around the PC opportunity. You called out higher PC sales, and I was wondering how large that business was in fiscal 2026. Would love to know how that opportunity is progressing and if you had any expectations for fiscal year 2027.

Speaker #5: So if I wind the clock back a little, as you know, we did low tens of millions in fiscal '25, and then that grew into the 40s in fiscal '26.

John Forsyth: If I wind the clock back a little, as you know, we did low $10s of millions in fiscal 2025, and then that grew into the $40s in fiscal 2026. We, as I said, exited the year with really, really good momentum across our customer base. We are shipping in the top six laptop vendors and the indicators that we take as good kind of signals about the direction of travel for us and the momentum were all very positive as we exited the year. Just to give you a bit more color on those, one of the indicators, for example, is the number of designs which are shifting from a legacy audio interface called HDA to the new audio interface called SDCA. We've talked about that transition in the past and how significant it is for us.

Speaker #5: And as I said, exited the year with really, really good momentum across our customer base. So we are shipping in the top six laptop vendors and the indicators that we take as good kind of signals about the direction of travel for us and the momentum.

Jeff Woolard: Yeah. Thank you. As you know, we don't break it out formally, but we do like to give some color to give our investors a sense of the momentum that we're building there. We showed strong growth in fiscal 2026 and exited the year with really good momentum, meaning we expect to see continued strong growth in fiscal 2027. We continue to be excited about the long-term contribution that this can make to our business. One of the things I've said before is that for us to go after a new market, we need to believe it can become a 10% business for us, and that continues to be the case for PC. If I wind the clock back a little, as you know, we did low $10 million in fiscal 2025, that grew into $40 million in fiscal 2026.

Perfect. Thank you. And then my second question is around the PC opportunity. So you call that higher PC sales and I was wondering how large that business was in fiscal. 26 um would love to know how that opportunity is progressing and if you had any expectations for a fiscal year 27,

Speaker #5: We're all very positive as we exited the year. And just to give you a bit more color on those, one of the indicators, for example, is the number of designs which are shifting from a legacy audio interface called HDA to the new audio interface called SDCA.

Yeah, thank you. So as you know we don't break it out formally but we do like to give some color to give our investors a sense of the momentum that we're building there. So we showed strong growth in fiscal 26 and exited the year with really good momentum meaning. We expect to see continued strong growth in fiscal 27.

Speaker #5: We've talked about that transition in the past and how significant it is for us. We tend to stand a very good chance of winning SDCA-related designs.

And we continue to be excited about the long-term contribution that this can make to our business 1 of the things I've said before is that for us to go after a new market, we need to believe it can become a 10% business for us and that continues to be the case for PC.

John Forsyth: We tend to stand a very good chance of winning SDCA related designs. If we look back in time, in fiscal 2025, SDCA was still at a very early stage, and most of the market was HDA, most of our revenue was HDA as well. In fiscal 2026, we actually saw that pass an inflection point. SDCA revenue tripled so that it became almost 60% of our total PC revenue. In FY 2027, we expect that transition to continue, and we would expect, based on what we see, that the figure would be closer to 80% of our revenue being driven by SDCA related designs.

So if I wind the clock back a little as you know, we did low tens of millions in fiscal 25.

Speaker #5: And if we look back in time, in fiscal '25, SDCA was still at a very early stage and most of the market was HDA.

Jeff Woolard: We, as I said, exited the year with really, really good momentum across our customer base. We are shipping in the top 6 laptop vendors and the indicators that we take as good kind of signals about the direction of travel for us and the momentum were all very positive as we exited the year.

And then uh, That Grew into the 40s in fiscal 26.

Speaker #5: Most of our revenue was HDA as well. But in fiscal '26, we actually saw that pass an inflection point. SDCA revenue tripled so that it became almost 60% of our total PC revenue.

Speaker #5: And in FY '27, we expect that transition to continue and we would expect, based on what we see, that the figure would be closer to 80% of our revenue being driven by SDCA-related designs.

John Forsyth: Just to give you a bit more color on those, one of the indicators, for example, is the number of designs which are shifting from a legacy audio interface called HDA to the new audio interface called SDCA. We've talked about that transition in the past and how significant it is for us. We tend to stand a very good chance of winning SDCA related designs. If we look back in time, in fiscal 2025, SDCA was still at a very early stage and most of the market was HDA, most of our revenue was HDA as well. In fiscal 2026, we actually saw that pass an inflection point. SDCA revenue tripled so that it became almost 60% of our total PC revenue.

And uh, we as I said, exited the year with really, really good momentum across our customer base. So we are shipping in the top 6, uh, laptop vendors. And uh, the indicators that we take as uh good kind of signals about the direction of travel for us and the momentum, we're all very positive as we exited the year.

Speaker #5: So that transition is well underway now, and it's great for us because we believe we have the strongest portfolio of SDCA audio and voice products.

John Forsyth: That transition is well underway now, and it's great for us because we believe we have the strongest portfolio of SDCA audio and voice products, and it's great for consumers because it delivers a significantly better audio and voice experience. One of the other good indicators that we look to, and we've talked about in the past, is our penetration of the mainstream tier of devices. That's really critical for driving volume and is an important part of our growth strategy. Again, that's an area where if we look back over the past couple of years, that's been a relatively small proportion of our revenue. In fiscal 2027, we would expect that more than half of our revenue will likely come from mainstream devices.

Speaker #5: And it's great for consumers because it delivers a significantly better audio and voice experience. One of the other good indicators that we look to, and we've talked about in the past, is our penetration of the mainstream tier of devices.

Year and just to give you a bit more Colour on those 1 of the indicators. For example, is the number of designs which are shifting from a legacy audio interface called HDA to the new audio interface called sdca. We've talked about that transition in the past and how significant it is for us. We tend to stand a very good chance of winning. Sdca, related designs,

Speaker #5: That's really critical for driving volume and is an important part of our growth strategy. And again, that's an area where if we look back over the past couple of years, that's been a relatively small proportion of our revenue.

John Forsyth: That's really critical for driving volume and is an important part of our growth strategy. Again, that's an area where if we look back over the past couple of years, that's been a relatively small proportion of our revenue. In fiscal 2027, we would expect that more than half of our revenue will likely come from mainstream devices. We feel we're building a lot of momentum, and we're very pleased with the traction we've got across our customer base and excited about where it can go in the future.

And if we look back in time in fiscal 25, SDA was still at very early stage. And most of the market was HDA. Most of our Revenue was HDA as well.

But in fiscal 26, we actually saw that pass an inflection point.

John Forsyth: In FY27, we expect that transition to continue and we would expect, based on what we see, that the figure would be closer to 80% of our revenue being driven by SDCA related designs. That transition is well underway now, and it's great for us because we believe we have the strongest portfolio of SDCA audio and voice products, and it's great for consumers because it delivers a significantly better audio and voice experience. One of the other good indicators that we look to and we've talked about in the past is our penetration of the mainstream tier of devices. That's really critical for driving volume and is an important part of our growth strategy. Again, that's an area where if we look back over the past couple of years, that's been a relatively small proportion of our revenue.

Fdca Revenue tripled, so that it became almost 60% of our total PC Revenue.

Speaker #5: In fiscal '27, we would expect that more of half of our revenue will likely come from mainstream devices. So we feel we're building a lot of momentum and we're very pleased with the traction we've got across our customer base and excited about where it can go in the future.

John Forsyth: We feel we're building a lot of momentum, and we're very pleased with the traction we've got across our customer base and excited about where it can go in the future.

Speaker #4: Thank you.

Yash Shah: Thank you.

Speaker #3: Your next question comes from the line of Tom O'Malley. With Barclays, your line is open. Please go ahead.

Operator: Your next question comes from the line of Thomas O'Malley with Barclays. Your line is open. Please go ahead.

And in FY 27, we expect that transition to continue and we would expect based on what we see that the figure would be closer to 80% of our Revenue being driven by sdca related designs. So that transition is well underway now. And it's great for us because we believe we have the strongest portfolio of sdca audio and voice products. And it's great for consumers because it delivers a significantly better audio and voice experience.

Speaker #6: Hey, guys. Thanks for taking my questions. I wanted to ask on the smart power IC, which you talked about in the commentary in the shareholder letter and then you also saw in the Apple announcement.

Thomas O'Malley: Hey, guys. Thanks for taking my questions. I wanted to ask on the smart power IC, which you talked about in the commentary in the shareholder letter, and then, you know, you also saw in the Apple announcement. Can you talk about the timing that it takes to traditionally ramp up a part like this? Maybe a little bit of a technical deep dive on exactly what it's doing. Obviously you can't share specifics, but, you know, with a chip like this, is this just gating power to a certain functionality? Is it something to do with the camera as well? Anything that you can give there would be super helpful.

Thomas O'Malley: Guys. Thanks for taking my questions. I wanted to ask on the smart power IC, which you talked about in the commentary in the shareholder letter, and then, you know, you also saw in the Apple announcement. Can you talk about the timing that it takes to traditionally ramp up a part like this?

1 of the other good, uh, indicators that we look to. And we've talked about in the past,

Speaker #6: Can you talk about the timing that it takes to traditionally ramp up a part like this and then maybe a little bit of a technical deep dive on exactly what it's doing?

Thomas O'Malley: Maybe a little bit of a technical deep dive on exactly what it's doing. Obviously you can't share specifics, but, you know, with a chip like this, is this just gating power to a certain functionality? Is it something to do with the camera as well? Anything that you can give there would be super helpful.

John Forsyth: In fiscal 27, we would expect that more than half of our revenue will likely come from mainstream devices. We feel we're building a lot of momentum, and we're very pleased with the traction we've got across our customer base and excited about where it can go in the future.

Speaker #6: Obviously, you can't share specifics, but with a chip like this, is this just gaining power to a certain functionality? Is it something to do with the camera as well?

Is our penetration of the mainstream tier of devices. That's really critical for driving volume and, uh, is an important part of our growth strategy. And again, that's an area where if we look back over the past couple of years that's been a relatively small proportion of our Revenue in fiscal 27, we would expect that more of our more than half of our Revenue will likely come from mainstream devices.

Speaker #6: Anything that you can give there would be super helpful.

Speaker #5: Yeah, thanks for the question, Tom. Obviously, we are limited. I know you know this. And what we can say about a custom product that is being made for a customer product that hasn't yet been announced and is not on the market, to answer the first part of your question, from where we're at in the design stage today, I would say that we're looking at a couple of years before that gets introduced.

John Forsyth: Yeah. Thanks for the question, Tom. Obviously, we are limited, I know you know this, in what we can say about a custom product that is being made for a customer product that hasn't yet been announced and is not on the market. To answer the first part of your question, from where we're at in the design stage today, I would say that, you know, we're looking at a couple of years before that gets introduced. That's not speaking to our customers' plans, but just based on where we are at. As to its functions, I think, you know, we are limited in what we can say there, but what I would highlight is it's a really good example of something that we do well.

So we feel we're building a lot of momentum, and we're very pleased with the traction, we've got across our customer base and excited about where it can go in the future.

Tom O'Malley: Thank you.

Thank you.

Operator: Your next question comes from the line of Tom O'Malley with Barclays. Your line is open. Please go ahead.

Tom O'Malley: Hey, guys. Thanks for taking my questions. I wanted to ask on the smart power IC, which you talked about in the commentary in the shareholder letter, and then, you know, you also saw in the Apple announcement. Can you talk about the timing that it takes to traditionally ramp up a part like this? Maybe a little bit of a technical deep dive on exactly what it's doing. Obviously you can't share specifics, but, you know, with a chip like this, is this just gating power to a certain functionality? Is it something to do with the camera as well? Anything that you can give there would be super helpful.

Your next question comes from the line of Tom Ali with Barclays. Your line is open, please go ahead.

Speaker #5: That's not speaking to our customers' plans, but just based on where we are at. And as to its functions, I think we are limited in what we can say there, but what I would highlight is it's a really good example of something that we do well.

John Forsyth: That's not speaking to our customers' plans, but just based on where we are at. As to its functions, I think, you know, we are limited in what we can say there, but what I would highlight is it's a really good example of something that we do well.

Speaker #5: First of all, as you know, we've been investing in certain areas of power where we believe we can bring innovation to the customer. But alongside that, we have the ability to provide very, very high-performance power analog circuits combined with digital.

John Forsyth: First of all, as you know, we've been investing in certain areas of power where we believe we can bring innovation to the customer. Alongside that, we have the ability to provide very, very high performance power, analog circuits combined with digital. This is a highly programmable device, which will bring functionality and performance to that subsystem which hasn't been there before, which is a really good kind of exemplar of what we are good at bringing to our customers by virtue of the investments that we make in advanced node, mixed-signal IP.

Speaker #5: So this is a highly programmable device which will bring functionality and performance to that subsystem which hasn't been there before, which is a really good kind of exemplar of what we are good at bringing to our customers by virtue of the investments that we make in advanced node mix signal IP.

Uh, a part like this. And then maybe a little bit of a technical deep dive on exactly what it's doing. Um, obviously you can't share, uh, specifics. But, you know, with a chip like this, is this just gating power to a certain functionality? Is it something to do with the camera as well? Anything that you can give there would be super helpful.

John Forsyth: This is a highly programmable device, which will bring functionality and performance to that subsystem which hasn't been there before, which is a really good kind of exemplar of what we are good at bringing to our customers by virtue of the investments that we make in advanced node, mixed-signal IP.

Yeah, thanks for the question, Tom. Obviously, we are limited. I know, you know this and what we can say about a custom product that is being made for a customer product that hasn't yet been announced, and it's not on the market.

To answer the first part of your question, from where we are at in the design stage today.

Speaker #6: Great. And then as a follow-up, maybe sticking on the same side of the business to some extent, on the camera controllers, there's some commentary here as well.

Thomas O'Malley: Great. As a follow-up, maybe sticking on the same side of the business to some extent. On the camera controllers, there's some commentary here as well. I know you talk about that a lot, but you've seen proliferation at your largest customer over the last several generations as that continues to move from camera to camera, and then content per camera is going up. Is your commentary looking to call out anything particular, an inflection point in that market, or is it just kind of describing the ongoing penetration that you're seeing over the next couple of years?

I would say that, you know, we're looking at a couple of years before that that gets introduced that's not speaking to our customers plans but just based on where where we are at

Speaker #6: I know you talk about that a lot, but you've seen proliferation at your largest customer over the last several generations. Is that continues to move from camera to camera and then content for cameras going up?

And as to its functions, I think, you know, we we are limited in what we can say there. But what I would highlight is it's a really good example of something that we do. Well, first of all, as you know, we've been investing in certain areas of power, where we believe we can bring Innovation to the customer.

Speaker #6: Is your commentary looking to call out anything particular, an inflection point in that market, or is ongoing penetration that you're seeing over the next couple of years?

Thomas O'Malley: Is your commentary looking to call out anything particular, an inflection point in that market, or is it just kind of describing the ongoing penetration that you're seeing over the next couple of years?

John Forsyth: You, you are picking up on something there that we would like our investors to understand for sure, which is that we are in design of next generation components today. You know, that's a development that happened during the past few months. Beyond that, we have a very rich roadmap of IP. Because there is a differential attach rate across different SKUs, and then, obviously many different SKUs and multiple generations that are sold of our customer products at any one time, the impact of new content, it tends to be more linear than big step functions. Suffice to say, we've got great stuff coming down the track and an incredibly close and collaborative relationship with our customer around the roadmap there.

Speaker #5: You are picking up on something there that we would like our investors to understand for sure, which is that we are in design of next-generation components today.

Speaker #5: That's a development that happened during the past few months. And beyond that, we have a very rich roadmap of IP. So because there is a differential attach rate across different SKUs and then obviously many different SKUs, and multiple generations that are sold of our customer products, at any one time, the impact of new content, it tends to be more linear than big step functions.

But alongside that, we have the ability to provide very, very high-performance power analog circuits combined with digital. So this is a highly programmable device, um, which will bring, uh, functionality and performance to that subsystem which hasn't been there before. Which is a really good kind of example of what we are, uh, good at bringing to our customers, by virtue of the investments that we—

We make in advanced node uh, mix signal IP.

Tom O'Malley: Great. As a follow-up, maybe sticking on the same side of the business to some extent, on the camera controllers, there's some commentary here as well. I know you talk about that a lot, but you've seen proliferation at your largest customer over the last several generations as that continues to move from camera to camera, and then content per camera is going up. Is your commentary looking to call out anything particular at inflection point in that market, or is it just kind of describing the ongoing penetration that you're seeing over the next couple of years?

John Forsyth: Beyond that, we have a very rich roadmap of IP because there is a differential attach rate across different SKUs, and then, obviously many different SKUs and multiple generations that are sold of our customer products at any one time, the impact of new content, it tends to be more linear than big step functions. Suffice to say, we've got great stuff coming down the track and an incredibly close and collaborative relationship with our customer around the roadmap there.

Speaker #5: But suffice to say, we've got great stuff coming down the track and an incredibly close and collaborative relationship with our customer around the roadmap there.

John Forsyth: You are picking up on something there that we would like our investors to understand for sure, which is that we are in design of next generation components today. You know, that's a development that happened during the past few months. Beyond that, we have a very rich roadmap of IP. Because there is a differential attach rate across different SKUs and then, obviously many different SKUs and multiple generations that are sold of our customer products at any one time, the impact of new content, it tends to be more linear than big step functions. Suffice to say, we've got great stuff coming down the track and an incredibly close and collaborative relationship with our customer around the roadmap there.

Great. And then as a as a follow-up, maybe sticking on the, um, the same side of the business, to some extent on the, on the camera controllers. There's some commentary here as well. I know you talked about that a lot, but uh, you've seen proliferation at your largest customer, uh, over the last several Generations is that, um, continues to move from camera to camera and then content per camera is going up. Um, is your commentary looking to call out anything particular and inflection point, uh, in that market? Or is it just kind of describing the ongoing uh, penetration that you're seeing um, over the next couple years?

Speaker #5: So yeah, we did want to call that out that we see that as being an area where we believe we can continue to grow content and deliver more value to our customer and capture more value ourselves.

John Forsyth: Yeah, we did wanna call that out, that we see that as being an area where we believe we can continue to grow content and deliver more value to our customer and capture more value ourselves.

You you are picking up on something there that we we would like our investors to understand for sure. Which is that

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Operator: Your next question comes from Rick Schafer of Oppenheimer & Co. Your line is open. Please go ahead.

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Speaker #3: Please, go ahead.

We are in design of Next Generation components today. You know, that's, that's a, a development that, uh, that happened during the past few months and beyond that, we have a very rich roadmap of Ip, so because there is a differential, attach rate across different skus, and then, um, obviously many different skus and multiple Generations that are sold of our customer products, at any 1 time, the impact of new content. It tends to be more linear than, uh, than big step functions, but suffice to say, we've got great stuff coming down.

Speaker #7: Hi. This is Wayne Mark on the line for Rick. Congrats on the results and thanks for the question. My first question is on the PC market.

Wei Mok: Hi, this is Wei Mok on the line for Rick. Congrats on the results, thanks for the question. My first question is on the PC market. It looks like there's strong momentum in PC in fiscal year 2026. In the past, we've talked about this business potentially doubling again in fiscal year 2027. In light of, you know, all the industry-wide memory shortages, forecasts for PC units have come down. Just wondering if you maintain that view, given talks of all these memory constraints, how do you see the PC business operating this year?

Wei Mok: This is Wei Mok on the line for Rick. Congrats on the results, thanks for the question. My first question is on the PC market. It looks like there's strong momentum in PC in fiscal year 2026. In the past, we've talked about this business potentially doubling again in fiscal year 2027. In light of, you know, all the industry-wide memory shortages, forecasts for PC units have come down. Just wondering if you maintain that view, given talks of all these memory constraints, how do you see the PC business operating this year?

John Forsyth: Yeah, we did wanna call that out, that we see that as being an area where we believe we can continue to grow content, deliver more value to our customer, and capture more value ourselves.

Speaker #7: It looks like there's strong momentum in PC in fiscal year '26. And in the past, you talked about this business potentially doubling again in fiscal year '27.

On the track and an incredibly close and collaborative relationship with our customer around the roadmap there. So, yeah, we did want to call that out that we see that as being an area, where we believe we can continue to grow content, and deliver more value to our customer and capture more value ourselves.

Speaker #7: But in light of all the industry-wide memory shortages, forecasts for PC units have come down. So just wondering if you maintain that view given talks of all these memory constraints?

Operator: Your next question comes from Rick Schafer of Oppenheimer & Co. Your line is open. Please go ahead.

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Speaker #7: How do you see the PC business operating this year?

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Speaker #5: Yeah, thanks for the question. I don't think I actually have talked about fiscal '27 previously and set expectations around that. We certainly that is until about five minutes ago.

John Forsyth: Thanks for the question. I don't think I actually have talked about fiscal 2027 previously and set expectations around that. Un- that is, until about five minutes ago. We certainly do feel that we're exiting fiscal 2026 with great momentum across the customer base and a lot of product in design with those customers. For sure, we believe we can deliver strong growth in fiscal 2027. We believe we can do that even in an environment where there is some pullback in the PC market. I'm sure you're aware of the same commentary that we're aware of that's out there in the wild about what might or might not happen with the PC market. I wouldn't say we see lots of signals of that within our customer base.

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Speaker #5: We certainly do feel that we're exiting fiscal '26 with great momentum across the customer base and a lot of product in design with those customers.

Wei Mok: Hi, this is Wei Mok on the line for Rick. Congrats on the results, thanks for the question. My first question is on the PC market. It looks like there's strong momentum in PC in fiscal year 2026. In the past, you've talked about this business potentially doubling again in fiscal year 2027. In light of, you know, all the industry-wide memory shortages, forecasts for PC units have come down. Just wondering if you maintain that view given talks of all these memory constraints. How do you see the PC business operating this year?

Your next question comes from Rick Shaffer of Oppenheimer and Co your line is open. Please go ahead.

Speaker #5: So for sure, we believe we can deliver strong growth in fiscal '27. And we believe we can do that even in an environment where there is some pullback in the PC market.

John Forsyth: For sure, we believe we can deliver strong growth in fiscal 2027. We believe we can do that even in an environment where there is some pullback in the PC market. I'm sure you're aware of the same commentary that we're aware of that's out there in the wild about what might or might not happen with the PC market. I wouldn't say we see lots of signals of that within our customer base.

Speaker #5: I'm sure you're aware of the same commentary that we're aware of that's out there in the wild about what might or might not happen with the PC market.

Speaker #5: I wouldn't say we see lots of signals of that within our customer base. I think it's worth keeping in mind that we tend to be serving the largest OEMs in the PC world.

John Forsyth: I think it's worth keeping in mind that we tend to be serving the largest OEMs in the PC world, so they're probably better positioned to secure memory and so on. We tend to be skewed towards the upper tiers of their devices, which again, I think are potentially better insulated from some of what you're talking about. I think it's possible that we do see some pullback in the PC market overall over the course of the year, that doesn't change our perspective that we believe we can continue to deliver strong growth in fiscal 2027.

John Forsyth: Thanks for the question. I don't think I actually have talked about fiscal 2027 previously and set expectations around that. That is until about 5 minutes ago. We certainly do feel that we're exiting fiscal 2026 with great momentum across the customer base and a lot of product in design with those customers. For sure, we believe we can deliver strong growth in fiscal 2027. We believe we can do that even in an environment where there is some pullback in the PC market. I'm sure you're aware of the same commentary that we're aware of that's out there in the wild about what might or might not happen with the PC market. I wouldn't say we see lots of signals of that within our customer base.

Sorry, this is way, mark, on the line for Rick. Congrats on the results, and thanks for the question. My first question is on the PC market. It looks like this strong momentum in PC and fiscal year, 26. And in the past you talk about this business potentially doubling again in fiscal year, 27. But in light of, you know, all the industrywide, memory shortages forecast for PC units have come down. So we'll just wondering if you maintain the view given talks of all these memories and dreams. How do you see the PC business operating this year?

Speaker #5: So they're probably better positioned to secure memory and so on. And we tend to be skewed towards the upper tiers of their devices, which again, I think are potentially better insulated from some of what you're talking about.

Speaker #5: I think it's possible that we do see some pullback in the PC market overall over the course of the year, but that doesn't change our perspective, that we believe we can continue to deliver strong growth in fiscal '27.

For sure, we believe we can deliver strong growth in fiscal '27.

Speaker #7: Got it. Great. Thank you. As for my follow-up, you guys highlighted a closer collaboration with GlobalFoundries at their most in New York fab. And I believe they have 12 nanometer, 14 nanometer process.

Wei Mok: Got it. Great. Thank you. As for my follow-up, you guys highlighted a closer collaboration with GlobalFoundries at their Malta, New York fab, and I believe they have 12-nanometer, 14-nanometer process. Can you talk about some of the products you see can best utilize this fab, and what are some of the opportunities you can leverage off this collaboration? Thanks.

And we believe we can do that, even in an environment where there is some pullback in the PC market. I'm sure you're aware of the same commentary that we're aware of, that's out there in the wild about what might or might not happen with the PC market.

John Forsyth: I think it's worth keeping in mind that we tend to be serving the largest OEMs in the PC world, so they're probably better positioned to secure memory and so on. We tend to be skewed towards the upper tiers of their devices, which again, I think are potentially better insulated from some of what you're talking about. I think it's possible that we, that we do see some pullback in the PC market overall over the course of the year, but that doesn't change our perspective, that we believe we can continue to deliver strong growth in fiscal 2027.

I wouldn't say we see lots of signals of that within our customer base, I think it's worth.

Speaker #7: So can you talk about some of the products you see can best utilize this fab and what are some of the opportunities you can leverage off this collaboration?

Speaker #7: Thanks.

Speaker #5: Sure. We have a close collaboration with GlobalFoundries going back many years. And that has served us and GlobalFoundries, I think, extremely well over the years.

John Forsyth: Sure. We have a close collaboration with GlobalFoundries going back many years, that has served us and GlobalFoundries, I think, extremely well over the years. It is focused on process technologies for our high voltage products, for example, amplifiers and power conversion and control chips. Those would not tend to be on the geometries that you just referred to. They, for example, would be centered typically around 55 nanometer. I guess, for us, as we look forward, you know, we have a collaboration with Global that is focused on delivering the next generation of process technologies relative to what we've been using up until now for our high voltage products. Those technologies and that process development will deliver higher performance, greater power efficiency, greater cost effectiveness for our customers.

Speaker #5: It is focused on process technologies for our high-voltage products, for example, amplifiers and power conversion and control chips. So those would not tend to be on the geometries that you just referred to.

Keeping in mind that we tend to be serving the largest oems in the PC uh world. So they're probably better uh positioned to secure memory and so on and we tend to be skewed towards the upper tiers of their devices. Which again I think are are are potentially better insulated from some of what you're talking about.

I think it's possible that we that we do see some uh pullback in the PC market overall over the course of the year but that doesn't change our perspective that we believe we can continue to deliver strong growth in fiscal 27.

Speaker #5: They for example, would be centered typically around 55 nanometer but I guess for us, as we look forward, we have collaboration with global that is focused on delivering the next generation of process technologies relative to what we've been using up until now for our high-voltage products.

John Forsyth: They, for example, would be centered typically around 55 nanometer. I guess, for us, as we look forward, you know, we have a collaboration with Global that is focused on delivering the next generation of process technologies relative to what we've been using up until now for our high voltage products. Those technologies and that process development will deliver higher performance, greater power efficiency, greater cost effectiveness for our customers.

Got it. Great. Thank you. Um, as for my follow-up. Um, you guys highlighted it a closer collaboration with global Founders that they're most in New York Fab and I believe they have 12 nanometer, 14, nanometer processes. So can you talk about some of the products you you can best utilize to serve and what are some of the opportunities you can leverage off this, um, this

John Forsyth: Sure. We have a close collaboration with GlobalFoundries going back many years, and that has served us and GlobalFoundries, I think, extremely well over the years. It is focused on process technologies for our high voltage products, for example, amplifiers and power conversion and control chips. Those would not tend to be on the geometries that you just referred to. They, for example, would be centered typically around 55 nanometer. I guess, for us, as we look forward, you know, we have a collaboration with Global that is focused on delivering the next generation of process technologies relative to what we've been using up until now for our high voltage products. Those technologies and that process development will deliver higher performance, greater power efficiency, greater cost effectiveness for our customers.

Collaboration. Thanks.

Speaker #5: And those technologies and that process development will deliver higher performance, greater power efficiency, greater cost-effectiveness for our customers. And that's something that we're very excited about bringing up in Malta as well because we know our customers want to have access to semiconductors fabricated in the US.

John Forsyth: That's something that we're very excited about bringing up in Malta as well because we know our customers want to have access to semiconductors fabricated in the US. For us, the high voltage products today are obviously, as I said, amplifiers, haptic drivers, power conversion and control chips. We saw a press release over the past quarter from our largest customer, which referenced a product for the Face ID subsystem, which could be fabricated at that facility. As I've indicated in the prepared remarks, we believe there are still many other opportunities for us around the power space. That could also potentially be fabricated in the US using this process that we're collaborating with GlobalFoundries on.

Speaker #5: So for us, the high-voltage products today are obviously, as I said, amplifiers, haptics drivers, power conversion and control chips. We saw a press release over the past quarter from our largest customer, which referenced a product for the Face ID subsystem, which could be fabricated at that facility.

John Forsyth: We saw a press release over the past quarter from our largest customer, which referenced a product for the Face ID subsystem, which could be fabricated at that facility. As I've indicated in the prepared remarks, we believe there are still many other opportunities for us around the power space. That could also potentially be fabricated in the US using this process that we're collaborating with GlobalFoundries on.

Sure, we have a close collaboration with global Founders going back many years and that has served us and Global Founders. I think extremely well over the years it it is focused on process Technologies for our high voltage products. For example, amplifiers and uh Power conversion and control chips. So those would not tend to be on the geometries that you just referred to. Um, they uh, uh, for example, would be sent to typically around 55 nanometer.

um,

Speaker #5: And as I've indicated in the prepared remarks, we believe there are still many other opportunities for us around the power space that could also potentially be fabricated in the US using this process that we're collaborating with GlobalFoundries on.

but I guess, uh, for us as we look forward, you know, we we have uh, collaboration with global that is focused on delivering the next generation of process Technologies.

John Forsyth: That's something that we're very excited about bringing up in Malta as well because we know our customers want to have access to semiconductors fabricated in the US. For us, the high voltage products today are obviously, as I said, amplifiers, haptic drivers, power conversion and control chips. We saw a press release over the past quarter from our largest customer, which referenced a product for the Face ID subsystem, which could be fabricated at that facility. As I've indicated in the prepared remarks, we believe there are still many other opportunities for us around the power space that could also potentially be fabricated in the US using this process that we're collaborating with GlobalFoundries on.

Relative to what we've been using up until now for our high voltage products and those Technologies. And that that process development development will deliver a higher performance greater power efficiency uh greater cost Effectiveness for our customers.

Speaker #7: Great. Thank you.

Wei Mok: Great. Thank you.

Speaker #3: Your next question comes from the line of Torre Spanberg, of CIFL. Your line is open. Please, go ahead.

Jeff Woolard: Your next question comes from the line of Tore Svanberg of Stifel. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Tore Svanberg of Stifel. Your line is open. Please go ahead.

Speaker #8: Yes. Thank you, and congrats on the strong results. I wanted to come back to the new power product and just try and understand a little bit more what this means longer term.

Tore Svanberg: Yes. Thank you, and congrats on the strong results. I wanted to come back to the new power product. You know, just trying to understand a little bit, you know, more what this means longer term. I mean, is this a, you know, beginning of more, you know, content, more opportunities? You know, I'm just thinking about, you know, sort of when you got into the camera controller space, right? You know, there was a starting point and then, you know, eventually you were able to expand, you know, more content there. You know, any more visibility you could share with us, not just on the timing of this particular product ramp, but, you know, perhaps, you know, beyond this initial use case.

And that's something that we're very excited about bringing up in Malta as well, because we know our customers want to have access to semiconductors fabricated in the US. So for us, the high-voltage products today are obviously, as I said, amplifiers, haptics drivers, power conversion, and control chips.

Speaker #8: I mean, is this the beginning of more content, more opportunities? I'm just thinking about sort of when you got into the camera controller space, right?

Speaker #8: And there was a starting point, and then eventually, you were able to expand more content there. So any more visibility you could share with us, not just on the timing of this particular product ramp, but perhaps beyond this initial use case?

Tore Svanberg: You know, there was a starting point and then, you know, eventually you were able to expand, you know, more content there. You know, any more visibility you could share with us, not just on the timing of this particular product ramp, but, you know, perhaps, you know, beyond this initial use case.

Wei Mok: Great. Thank you.

We saw a press release of the past quarter, um, from our largest customer, which referenced, uh, a product for the face ID subsystem, um, which could be, uh, fabricated at that facility. And as I've indicated in the pre prepared remarks, we believe there is still many other opportunities for us around the power space. Um that could also potentially be fabricated uh in the US using this uh uh this process that we're collaborating with global Founders on.

Great. Thank you.

Operator: Your next question comes from the line of Tore Svanberg of Stifel. Your line is open. Please go ahead.

Speaker #5: Thank you, Torre. I guess the truth is we don't have a lot to say about that right now, but I think your observation is very fair, and it's a good reflection of the way we work with our customers.

John Forsyth: Thank you, Tore. I guess the truth is we don't have a lot to say about that right now, but I think your observation is very fair, and it's a good reflection of the way we work with our customers. In most of the products that we've delivered, we have then iterated on those products to deliver more value, to integrate more of the components that sit around us on the board, which is something we're very well positioned to do by virtue of the processes we're on and our approach to design. I think we've done that very successfully in really literally every other domain where we've served that customer.

Your next question comes from the line of Torres. Danberg of SEO.

Tore Svanberg: Yes, thank you, and congrats on the strong results. I wanted to come back to the new power product. Just trying to understand a little bit, you know, more what this means longer term. I mean, is this a, you know, beginning of more, you know, content, more opportunities? You know, I'm just thinking about, you know, sort of when you got into the camera controller space, right? There was a starting point, and then, you know, eventually you were able to expand, you know, more content there. Any more visibility you could share with us, not just on the timing of this particular product ramp, but, you know, perhaps, you know, beyond this initial use case.

Your line is open, please go ahead.

Speaker #5: In most of the products that we've delivered, we have then iterated on those products to deliver more value to integrate more of the components that sit around us on the board, which is something we're very, very well positioned to do by virtue of the processes we're on and our approach to design.

Speaker #5: And so I think we've done that very successfully in really literally every other domain where we've served that customer. I think what we launched the new generation audio amplifier in the fall of calendar '24, we indicated that that represented an ASP uplift for us, but a lower system cost to our customer.

John Forsyth: I think we've done that very successfully in really literally every other domain where we've served that customer. I think when we launched the new generation audio amplifier, in the fall of calendar 2024, we indicated that that represented an ASP uplift for us, but a lower system cost to our customer. The way we achieved that was by integrating stuff around us, as well, of course, as delivering higher performance.

John Forsyth: I think when we launched the new generation audio amplifier, in the fall of calendar 2024, we indicated that that represented an ASP uplift for us, but a lower system cost to our customer. And the way we achieved that was by integrating stuff around us, as well, of course, as delivering higher performance. This is definitely a very exciting new area for us, and you know, we're thrilled to be serving the customer in a new part of the system. You know, the first mission obviously is to execute flawlessly on the first product, but beyond that, we will look very hard at how we can deliver more value there and potentially iterate and, you know, expand from there.

Yes. Um, thank you and congrats on the strong results. Um, I wanted to come back to the new, uh, Power product. Um, and, you know, just just try and understand a little bit, you know, more what this means longer term. I mean, is this a, you know, beginning of of more, you know, content more opportunities, you know, I'm, I'm just thinking about, you know, sort of, when you go into the chemical controller space, right? And, you know, there was a starting point and then, you know, eventually you were able to expand, you know, more content there. So you know, any any more visibility you could share with us, not just on the timing of this particular product ramp. But you know perhaps you know beyond uh this

John Forsyth: Thank you, Tore. I guess the truth is we don't have a lot to say about that right now, but I think your observation is very fair, and it's a good reflection of the way we work with our customers. In most of the products that we've delivered, we have then iterated on those products to deliver more value, to integrate more of the components that sit around us on the board, which is something we're very, very well positioned to do by virtue of the processes we're on and our approach to design. I think we've done that very successfully in really literally every other domain where we've served that customer.

Uh, initial use case.

Thank you, Tori.

Speaker #5: And the way we achieved that was by integrating stuff around us. As well, of course, as delivering higher performance. So this is definitely a very exciting new area for us, and we're thrilled to be serving the customer in a new part of the system.

John Forsyth: This is definitely a very exciting new area for us, and you know, we're thrilled to be serving the customer in a new part of the system. You know, the first mission obviously is to execute flawlessly on the first product, but beyond that, we will look very hard at how we can deliver more value there and potentially iterate and, you know, expand from there.

I guess the the truth is we don't have a lot to say about that right now, but I think your observation is very fair and it's a good reflection of the way we work with our customers, in most of the products that we've delivered.

Speaker #5: The first mission, obviously, is to execute flawlessly on the first product. But beyond that, we will look very hard at how we can deliver more value there and potentially iterate and expand from there.

which is something we're very, very well positioned to do by virtue of the, uh, um, the

Processes. We're on and our approach to um, uh, to design. And so, I think we've done that very successfully in

John Forsyth: I think when we launched the new generation audio amplifier, in the fall of calendar 2024, we indicated that that represented an ASP uplift for us, but a lower system cost to our customer. The way we achieved that was by integrating stuff around us, as well, of course, as delivering higher performance. This is definitely a very exciting new area for us, you know, we're thrilled to be serving the customer in a new part of the system. You know, the first mission obviously is to execute flawlessly on the first product. Beyond that, we will look very hard at how we can deliver more value there and potentially iterate and, you know, expand from there.

Speaker #5: I would also highlight, though, that this is a great reflection of a lot of the work we've been doing investing in power over the past few years.

John Forsyth: I would also highlight, though, that this is a great reflection of a lot of the work we've been doing investing in power over the past few years, and that a lot of that investment led to us being very well positioned to win this socket, and that we continue to believe there are other power sockets out there where we could bring innovation to the customer as well.

really, literally every other domain where we've served that customer

I think, when we launched the new generation audio amplifier,

Speaker #5: And that a lot of that investment led to us being very well positioned to win this socket. And that we continue to believe there are other power sockets out there where we could bring innovation to the customer as well.

In the, uh, fall of calendar. 24, we indicated that, that represented an asp uplift for us, but a lower system cost to our customer and the way we achieve that was by integrating stuff, uh, around us, uh, as well. Of course, as as delivering higher performance.

Speaker #7: Very good. And as my follow-up, and on your general market product portfolio, you listed a few new products in your shareholder letter. What are some of the milestones that we should be looking for here?

Tore Svanberg: Very good. As my follow-up, and on your general market product portfolio, you listed a few new products in your shareholder letter. What are some of the milestones that we should be, you know, looking for here? I mean, are you eventually gonna tell us that, you know, it's become 10% of your revenues? You know, 'cause obviously, you know, these are longer, you know, time to revenue product cycles and so on and so forth. You know, any guidance on what to look out for for milestones there would be really helpful. Thank you.

Speaker #7: I mean, you eventually going to tell us that it's become 10% of your revenues. Because obviously, these are longer time-to-revenue product cycles and so on and so forth.

Speaker #7: So any guidance on what to look out for for milestones there would be really helpful. Thank you.

Speaker #5: Yeah. I think we'll certainly give that some thought on the milestone front. I would say you're characterization is absolutely right. These kinds of products are long lifestyle sorry, long lifecycle products that are going to be very solid contributors to us for the long term.

John Forsyth: Yeah. I think we'll certainly give that some thought on the milestone front. I would say your characterization is absolutely right. These kind of products are long lifestyle, sorry, long life cycle products that are gonna be very solid contributors to us for the long term and typically have significantly higher margins than our corporate average. No single one of them moves the needle that much for us in the space of 1 year. I think the way to think about this for you and our investors is that, you know, over the years, we've built a really formidable portfolio of IP.

So, this is definitely a very exciting, um, new area for us and is, you know, we're we're thrilled to be serving the customer in, uh, a new part of the system, um, you know, the first mission obviously is to execute flawlessly on the first product, but beyond that, we will look, uh, very hard at how we can deliver more value there and, uh, and potentially iterate. And and, uh, you know, expand from there. I would also highlight though, that this is a great reflection of a lot of the work we've been doing investing in power over the past few years. Uh, and that a lot of that investment led to, uh, us being very well positioned to win this socket and that we

Tore Svanberg: Very good. As my follow-up on your general market product portfolio, you listed a few new products in your shareholder letter. What are some of the milestones that we should be, you know, looking for here? I mean, are you eventually gonna tell us that, you know, it's become 10% of your revenues? Because obviously, you know, these are longer, you know, time to revenue product cycles and so on and so forth. You know, any guidance on what to look out for for milestones there would be really helpful. Thank you.

Continue to believe. There are other power sockets out there where we could bring Innovation to the customer as well.

Speaker #5: And typically have significantly higher margins than our corporate average. But no single one of them moves the needle that much for us in the space of one year.

John Forsyth: No single one of them moves the needle that much for us in the space of 1 year. I think the way to think about this for you and our investors is that, you know, over the years, we've built a really formidable portfolio of IP.

Speaker #5: But I think the way to think about this for you and our investors is that over the years, we've built a really formidable portfolio of IP.

Very good and as my follow-up um and on your General market product portfolio, uh, you you listed a few new products in your shareholder letter. Um, what are some of the Milestones that we should be? You know looking for here. I mean are you eventually going to tell us that you know it's become 10% of your revenues? Uh

Speaker #5: And when we have been entirely focused on serving our largest customer and not going far beyond that, then we haven't had the ability in the past to leverage that IP into other segments.

John Forsyth: When we have been entirely focused on serving our largest customer and not going far beyond that, then we haven't had the ability in the past to leverage that IP into other segments. This, the products that we announced that you referred to, so we recently announced new scanning and imaging products, that came on the back of other announcements we've made around prosumer audio, around timing products and so on. They all fall into this same category of leveraging some very advanced IP we have being comparatively economic, economical investments and addressing segments where the profitability is great, and those products will continue to run for a very long time.

You know because obviously, you know, these are longer, you know, time to revenue product cycles and so on and so forth. So, you know, uh, any any guidance on what to look out for, uh, for Milestones, that would be really helpful. Thank you.

John Forsyth: Yeah. I think we'll certainly give that some thought on the milestone front. I would say your characterization is absolutely right. These kind of products are long lifecycle products that are gonna be very solid contributors to us for the long term and typically have significantly higher margins than our corporate average. No single one of them moves the needle that much for us in the space of 1 year. I think the way to think about this for you and our investors is that, you know, over the years, we've built a really formidable portfolio of IP.

Speaker #5: But this the products that we announced that you referred to, so we recently announced new scanning and imaging products, but that came on the back of other announcements we've made around prosumer audio around timing products and so on.

Yeah, I think we'll, we'll certainly get. Give that some thought on the Milestone front. Um, I I I I would I would say your characterization is absolutely right.

These kind of products are.

Speaker #5: And they all fall into this same category of leveraging some very advanced IP we have being comparatively economically investments and addressing segments where the profitability is great and those products will continue to run for a very long time.

John Forsyth: They all fall into this same category of leveraging some very advanced IP we have being comparatively economic, economical investments and addressing segments where the profitability is great, and those products will continue to run for a very long time. When we look at the aggregate, we're by no means done in that, in that space, I should say. When we look at the aggregate of that over time, it gives us a really, really nice addition to the business, and we expect that part of the business to grow.

Long lifestyle, sorry, long life cycle products that are going to be very solid contributors to us for the long term and typically have significantly higher margins than our corporate average.

John Forsyth: When we look at the aggregate, we're by no means done in that, in that space, I should say. When we look at the aggregate of that over time, it gives us a really, really nice addition to the business, and we expect that part of the business to grow.

Speaker #5: So when we look at the aggregate, we're by no means done in that space, I should say. And when we look at the aggregate of that over time, it gives us a really, really nice addition to the business.

John Forsyth: When we have been entirely focused on serving our largest customer and not going far beyond that, then we haven't had the ability in the past to leverage that IP into other segments. This, the products that we announced that you referred to, so we recently announced new scanning and imaging products, but that came on the back of other announcements we've made around prosumer audio, around timing products and so on. They all fall into this same category of leveraging some very advanced IP we have being comparatively economical investments and addressing segments where the profitability is great and those products will continue to run for a very long time.

But no single 1 of them moves the needle that much for us um in the space of 1 year. But I think the way to think about this uh for you and our investors is that, you know, over the years we've built a really formidable portfolio of IP.

Speaker #5: And we expect that part of the business to grow. Yeah. I think I just add, Torre, while it does take time, we are continuing to invest in this area because we think there are more opportunities.

Jeff Woolard: Yeah. I think I'd just add, Tore.

Tore Svanberg: Thanks

Jeff Woolard: You know, while it does take time, we are continuing to invest in this area because we think there are more opportunities. We will continue to broaden out that portfolio. While it does take time, the products we have launched, we have been very positively received by customers and, you know, we're very encouraged by the opportunities.

Speaker #5: So we will continue to broaden out that portfolio. And while it does take time, the products we have launched, we have been very positively received by customers.

Speaker #5: And we're very encouraged by the opportunities.

Speaker #7: Great. Thank you very much.

Tore Svanberg: Great. Thank you very much.

Speaker #8: Okay. Well, with that, we'll turn the call back over to John for his final remarks.

Chelsea Heffernan: Okay. Well, with that, we'll turn the call back over to John for his final remarks.

Chelsea Heffernan: Okay. With that, we'll turn the call back over to John for his final remarks.

John Forsyth: When we look at the aggregate, we're by no means done in that space, I should say. When we look at the aggregate of that over time, it gives us a really, really nice addition to the business. We expect that part of the business to grow.

Speaker #5: Thank you, Chelsea. In summary, we're very proud to have delivered record financial results for the fiscal year 2026. While also making excellent progress on our strategy to drive application and market diversification.

John Forsyth: Thank you, Chelsea. In summary, we're very proud to have delivered record financial results for the fiscal year 2026, while also making excellent progress on our strategy to drive application and market diversification. I'd like to thank everyone who's a part of the Cirrus team worldwide for the amazing level of execution and customer focus that has delivered these results. I'd also like to express our gratitude to all of our customers for the trust and support they place in Cirrus Logic. We're very excited about the opportunities ahead, and we believe the company is well-positioned to drive further future growth and value creation. Finally, thank you all for participating today. Goodbye.

And um, when we have been entirely focused on uh, serving our largest customer and not going uh, far beyond that, then we haven't had the ability in the past to to leverage that IP into other segments. Um, but this, uh, the products that we announced that you referred to. So we recently announced, uh, new scanning and imaging products, but that came on the back of uh, other announcements we've made around, uh, prosumer audio around timing products, and so on, and they all fall into this same category of leveraging. Uh, some very Advanced IP, we have being comparatively economic, uh, economical Investments and addressing segments where the profitability is great. And those products will will continue to run for a very long time. Um, so when we look at the aggregate, we're we're by no means done in that. In that space, I should say. And when we look at the aggregate of that over time, it, it gives us a

Jeff Woolard: Yeah. I think I'd just add, Dori, you know, while it does take time, we are continuing to invest in this area because we think there are more opportunities, so we will continue to broaden out that portfolio. While it does take time, the products we have launched, we have been very positively received by customers and, you know, we're very encouraged by the opportunities.

Speaker #5: I'd like to thank everyone who's a part of the CIRRUS team worldwide for the amazing level of execution and customer focus that has delivered these results.

Really, really nice. Um, uh, addition to the business and we expect that part of the business to grow.

Yeah, I think I just add—sorry, um,

Speaker #5: And I'd also like to express our gratitude to all of our customers for the trust and support they place in CIRRUS Logic. We're very excited about the opportunities ahead.

John Forsyth: I'd also like to express our gratitude to all of our customers for the trust and support they place in Cirrus Logic. We're very excited about the opportunities ahead, and we believe the company is well-positioned to drive further future growth and value creation. Finally, thank you all for participating today. Goodbye.

Speaker #5: And we believe the company is well positioned to drive further future growth and value creation. Finally, thank you all for participating today. Goodbye.

Tore Svanberg: Great. Thank you very much.

You know, while it does take time, we are continuing to invest in this area because we think there are more opportunities, so we will continue to, uh, broaden out that portfolio. And while it does take time, the products we have launched have been very positively received by customers and, um, you know, we're very encouraged, um, by the opportunities.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Great, thank you very much.

Chelsea Heffernan: Okay. Well, with that, we'll turn the call back over to John for his final remarks.

I'll now turn the call back over to John for his final remarks.

Thank you, Chelsea.

In summary, we're very proud to have delivered record Financial results for the fiscal year 20.

Market diversification.

I'd like to thank everyone who is a part of the Cirrus team worldwide for the amazing level of execution and customer focus. That has delivered these results.

And I'd also like to express our gratitude to all of our customers for the trust and support. They place in serious logic, we're very excited about the opportunities ahead, and we believe the company is, well, positioned to drive further future, growth and value creation.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Finally, thank you all for participating today. Goodbye.

This concludes today's call. Thank you for attending. You may now disconnect.