Cirrus Logic Q1 2024 Earnings Call Transcript

There are 9 speakers on the call.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic First Quarter Fiscal Year 20 24 Financial Results Q and A Session. At this time, all participants are in listen only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing up will be provided at that time.

Operator

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

Thank you and good afternoon. Joining me on today's call is John by Cirrus Logic's Chief Executive Officer and Venk Nethamuni, Chief Financial Officer. Today, at approximately 4 p. M. Eastern Time, We announced our financial results for the Q1 fiscal year 2024.

Speaker 1

The shareholder letter discussing our financial results, The earnings press release and the webcast of this Q and A session are all available at the company's Investor Relations website. This call will feature questions from analysts covering our company. Additionally, the results and guidance we will discuss on call will include non GAAP financial measures that exclude certain items. Reconciliations of these non GAAP measures to their most Directly comparable GAAP measures are included in our earnings release and are all available on the company's Investor Relations website. Please note that during 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.

Speaker 1

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 ks as well as other corporate filings registered with the Securities and Exchange Commission for additional discussion of risk factors that could cause actual results to differ materially from current expectations. Now I'd like to turn the call over to John.

Speaker 2

Thank you,

Speaker 3

Chelsea, and thank you everyone for joining today's call. As you've seen in the press release, in the Q1 of fiscal year 2024, Cirrus Logic delivered revenue of $317,000,000 towards the top end of our guidance for the quarter, driven by products, shipping and smartphones. In a moment Venk will discuss the results in greater detail, but before we get on to that, I'd like to provide some color on how we're doing against the strategy that I've outlined on previous calls. The first pillar of that strategy is to maintain and build our leadership in smartphone audio. And to that end, this quarter, we taped out our next Generation custom boosted amplifier, a component that we believe will deliver significantly increased performance and value to our customer and which we anticipate will ship next calendar year.

Speaker 3

We also completed product validation of our first 22 nanometer smart codec, a new product which is also on track for introduction next year. This new codec represents a significant technology transition for Cirrus Logic and again will deliver meaningful feature and performance benefits to our end customer. In our general market smartphone business, we also secured several next generation Android sockets. And as a consequence, we anticipate seeing many great smartphone products featuring Cirrus Logic audio and haptics being launched in the market in the coming year. Moving on to the 2nd pillar of our strategy, we're excited about the opportunities we see to continue to grow our high performance mixed signal content in smartphones.

Speaker 3

The camera is a marquee feature of every major smartphone launch. We're proud of the progress that we've made in this area since we introduced our 1st camera controller product in calendar 2020. We're currently ramping production of our latest camera controller product for a smartphone that is expected to be introduced later this year. And looking forward, we believe there's still significant potential to continue to grow value in this area, and we are today investing in a roadmap of further products and features in pursuit of that goal. Beyond the camera, we've also previously indicated that we believe advanced power and battery related technologies represent great opportunities for the company.

Speaker 3

And today, we have a number of R and D programs underway related high efficiency charging, battery management and system side power delivery. We believe that the investments we are making in this space today will continue to drive product diversification and revenue growth in the future. Turning to our 3rd strategic vector, we're increasingly leveraging our Top market where we see significant greenfield opportunity for the company in the coming years. Today, we have well established relationships with the top 5 laptop OEMs who together account for significant majority of all laptop unit volumes and we are shipping content with each of them. While we're still in the early stages of our entry into this market, we already see significant customer demand and engagement around our amplifier and codec products that have been specifically for laptops.

Speaker 3

And we expect end devices incorporating these new components to come to market in the next 12 months. During the June quarter, we also secured our 1st business laptop win with our new amplifier, highlighting the growing importance of audio quality in this key segment. And we anticipate this device will begin shipping next year. Additionally, we're delighted that both our new amplifiers and codec have been selected as part of sound wire compatible reference design from Intel, which will accelerate time to market and enable adoption of our components across more OEM platforms. Beyond the laptop market, we also continue to invest in further products and customer engagements that we anticipate will expand both our revenue and market diversity in the long term.

Speaker 3

These include gaming, augmented and virtual reality, automotive, industrial and professional audio applications. The latter illustrated by our recent launch of a range of industry leading professional audio ADC products. We're excited about the number of ways in which We believe we can leverage our outstanding engineering talent and best in class intellectual property to grow our business in these areas and beyond. Finally, I would like to discuss briefly the difficult decision we took in July resulting in a workforce reduction of approximately 5% of our global employee base. This action was taken in order to better align our overall cost structure with our revised revenue expectations.

Speaker 3

In light of both our previously discussed change in customer plans regarding an HPMS product that we have been expecting to be introduced this fall and the current general market softness. We remain committed to disciplined execution of our strategy and believe that following this action, we are well positioned to invest in many opportunities we see to drive future growth. And with that, let me now turn the call over to Venk to provide an overview of our financial results for our fiscal Q1 2024 as well as guidance for the Q2.

Speaker 2

Thank you, John. Good afternoon, everyone. I'll start with a summary of the fiscal Q1 results and then provide guidance for fiscal Q2. Fiscal first quarter revenue was $317,000,000 which was close to the top end of our guidance range as unit volumes were higher than expected. Revenue was down 15% quarter over quarter and down 19% from a year ago due to lower volume of components shipping into the smartphone end market and to a lesser extent continued weakness in general market sales.

Speaker 2

Turning to gross margin, non GAAP gross profit in the quarter was $159,700,000 and non GAAP gross margin was 50.4%, which was slightly above the midpoint of the guidance range we have provided. On a sequential basis, gross margin increased slightly, while on a year over year basis gross margin declined by 110 basis points due to higher inventory reserves and a less favorable product mix. I'd like to provide an update on the high performance mixed signal product that John alluded to earlier. As we mentioned in the shareholder letter, we have removed the revenue associated with this component from our internal model. But during the quarter, we made good progress with both our customer and foundry partner on the disposition of wafers associated with this product and we do not anticipate the disposition to have a material financial impact.

Speaker 2

I'd also like to reiterate that our customer relationship remains strong as we continue to collaborate on a range of technologies and programs and pursue opportunities for both the next generation of our existing components as well as new products. Turning to OpEx, non GAAP operating expenses in the quarter were $113,800,000 down CAD6 1,000,000 sequentially. I'd note that operating expenses came in below the low end of our guidance range due to product development prioritization as well as controls on discretionary spending. Restructuring costs associated with the cost actions John referred to earlier are not expected to be material and are reflected in the Q2 fiscal 'twenty four GAAP operating expense guidance. I'd note that we're continuing to invest in products and technologies in order to pursue opportunities to drive our long term revenue growth.

Speaker 2

And overall, non GAAP operating income was $45,800,000 in the 1st quarter were 14.5 percent of revenue. And lastly on the P and L, non GAAP net income in the Q1 was $38,000,000 or CAD0.67 per share as the higher than expected revenue and the lower operating expense flowed through to the bottom line. Let me now turn to the balance sheet. Our balance sheet continues to remain strong and we ended the Q1 of fiscal 2024 with approximately $426,000,000 in cash and cash equivalents. Our ending cash balance was down $91,100,000 from the prior quarter as we built inventory to support seasonal product launches in the second half of the calendar year and also used cash to repurchase stock during the quarter.

Speaker 2

Specifically, cash used in operations was $39,800,000 during the June quarter, which is about 13% of revenue. We continue to have no debt outstanding and also we have $300,000,000 undrawn on our revolver. Now turning to inventory. As we indicated in prior quarters, we've been building inventory to support seasonal product launches in the second half of the calendar year and fulfill our wafer purchase commitments for our long term capacity agreement with GlobalFoundries. As a result, inventory was $301,000,000 up from $233,500,000 sequentially and days of inventory was approximately 175 days in Q1, up 60 days sequentially.

Speaker 2

Let me add some additional color on our GlobalFoundries agreement. While a portion of the capacity associated with this agreement was originally intended to support our new HPMS component, the agreement allows for wafer allocation flexibility within our product portfolio. As a result, these wafers are being reallocated to other products that use the same underlying 55 nanometer high voltage process technology including amplifiers, haptic drivers and battery and power ICs. Looking ahead, in Q2 fiscal 2024, we expect inventory dollars to increase from the prior quarter. However, Days of inventory are expected to decline due to seasonal product ramps.

Speaker 2

While we anticipate increased inventory levels of these other products during this fiscal year, We expect Q2 to be the high point of inventory for the remainder of the fiscal year. Turning now to cash flow. Cash used in operations was $39,800,000 in the June quarter and CapEx was roughly $12,300,000 resulting in free cash flow for the quarter of minus 16%. For the 12 month period ending in the June quarter, free cash flow margin was roughly 10%. On the share buyback front, in Q1, we utilized $38,500,000 to repurchase approximately 466 1,000 shares of our common stock at an average price of $82.59 As of the end of Q1 fiscal 2024, we had $462,600,000 remaining in our share repurchase authorization.

Speaker 2

We expect continue to return capital in the form of stock repurchases, which we believe will provide a long term benefit to shareholders going forward. And now on to the guidance. For Q2 of fiscal 2024, we expect revenue in the range of $430,000,000 to $490,000,000 We expect gross margin to range from 49% to 51%. Non GAAP operating expense is expected to be up sequentially in the range of $114,000,000 to $120,000,000 as higher variable compensation and product development cost is partially offset by lower employee expense. We will continue to control discretionary spending, but invest strategically in product development to drive long term growth.

Speaker 2

On the tax front, as we previously discussed, our fiscal 2024 non GAAP effective tax rate will continue to be unfavorably impacted by capitalized R and D expense and as expected our foreign tax credits will be lower this year. Our fiscal 2024 non GAAP tax rate is expected to be approximately 24% to 26%, consistent with our prior quarter's guidance. We continue to anticipate that the impact of capitalized R and D will become less unfavorable over time as additional years of R and D expenses are amortized for tax purposes. We're closely monitoring legislation recently introduced that would restore immediate tax deductions for R and D investments if passed. In closing, we had a solid Q1 fiscal 2024 as we executed well to deliver these results.

Speaker 2

Going forward, we will continue to focus on the best opportunities to enable the company to grow both revenue and profitability over the long term. And before we begin the Q and A, I'd like to note that fiscal year 2024 is a 53 week fiscal year and will include 14 weeks in the fiscal Q3. And finally, While we understand there is intense interest related to our largest customer, in accordance with SITAS Logik 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 and A session.

Speaker 1

Thanks, Fang. We will now start the Q and A portion of the earnings call.

Operator

We will pause for just a moment to compile the Q and A roster. Your first question comes from the line of Matt Ramsay with TD Cowen. Your line is now open.

Speaker 4

Thank you very much, guys. Good afternoon. John, I guess for both of you guys, I wanted to ask a couple of questions around The resolution of the HPMS product that didn't ramp with a large customer. So you guys talked about a couple of different things, One of which is sort of the resolution on the wafers that were built. If You could give a little bit more color on that if you're able to at all.

Speaker 4

And I guess, Finke is are those wafers still included in your inventory balance that you talked about? And then the second question on that topic is, John, this is kind of a longer term one and conversations over the years With yourself and with your predecessor, Jason, it's always been really, really hard to find mixed signal analog audio engineers. And I know it was A rough go, not of your own fault at all that things happen with that product. But I just kind of wondered the decision to Take the workforce reduction rather than just given the scarcity value of that engineering talent, Maybe reallocating that folks those folks. And so maybe you could talk a little bit about that.

Speaker 4

Thank you.

Speaker 3

Yes. Thank you, Matt. I'll speak to that and then hand over to Venk and he can talk about how we've been working through the dispositioning of the work in progress Around the products. Yes, first of all, obviously, that was not a decision that we took lightly at all. But The reality is there's a significant change to immediate near term revenue expectations there and we wanted to work very hard The cost structure more into line with that reality, whilst still ensuring that we were in a position to invest in all the things that we believe will drive us forward as a company in the mid to long term.

Speaker 3

And I'd emphasize the latter Because we do have very many areas of opportunity across those three pillars of the strategy and our plan is to continue to invest in that growth. So Although this action was kind of distributed across the business, we will in fact exit this This quarter with more people working in design than we had a year ago. So this is we had to take some steps Navigate the short term challenges, while at the same time ensuring that we're positioned, for execution on the opportunities that we believe are going to help us grow and diversify, by in the medium and long term?

Speaker 2

Yes. Thanks, Matt, for the question. This is Venk. So I wanted to address your question about the The inventory related to the part that's no longer expected to ship. So the first point I want to make is that we do not expect a material financial impact, as I mentioned in the prepared remarks.

Speaker 2

The inventory is in different levels. Basically, the high level, I want to mention that we've made really good progress with both our customer As well as a foundry partner on the disposition and clearly this is factored into our current guidance. Now one thing to keep in mind is that as we talked about The GlobalFoundry contract, we do have some flexibility in terms of how we allocate the capacity that we have across the different products. And suffice it to say that we have factored that into our guidance and there's no material financial impact of the inventory for the component that's no longer going to ship.

Operator

Your next question comes from the line of Tore Svanberg for Stifel. You may now go ahead.

Speaker 5

Yes. Thank you. If I could just follow-up on that last topic, Ben. So Your inventory is $175,000,000 I mean I know there's a lot of things that go into inventory, but what would that number perhaps have been without the issues with the HPMS product just roughly?

Speaker 2

Yes. Thanks for the question, Tore. So Couple of things on the overall inventory that we talked about is a lot of it is driven by the fact that we are building ahead of the traditional launch of our Key customers products that happens in the second half of the year. That's the vast majority of it. And obviously, we also have a commitment to our Foundry supplier in terms of fulfilling wafer starts and such.

Speaker 2

So without going into the specifics of what the split is, I can tell you that it's It's a relatively small number and clearly we're in discussions with both our customer as well as with our Foundry supplier. And as I said before, we do expect our inventory days to come down next quarter And we have taken into account whatever is the inventory associated with that particular product.

Speaker 5

That's very helpful. And for John, John, I know you don't I mean, you can't preannounce your customers' products, obviously, but Can you just give us some puts and takes right now on content growth for the second half and next year? I mean, second half, it sounds like it's mainly new camera controller products, but How should we think about possible or opportunities for 2024?

Speaker 3

Yes, sure, Tarek. So going into the cycle this fall, yes, the content growth that I've Alluded to previously is in the camera controller area. So we have a new product ramping then. As we Turn to next calendar year in 2024, we've got 2 significant products coming to market in our new audio components, The boosted amplifier and the codec, both of which we believe deliver meaningfully more value to the customer. So we're On track with those and very excited about those and their potential impact.

Speaker 3

As we look beyond that, We believe there are multiple opportunities to continue to grow in the camera space, but also expand in other HPMS areas. In particular, I've alluded to power and areas around the battery where we believe there's still further opportunity for us to grow.

Operator

Your next question comes from the line of Christopher Rolland from Susquehanna. Your line is now open.

Speaker 6

Hi, guys. Thanks for the question. I guess my first question is, you guys did mention some side in revenue due to better units, and also you guys had a nice guide as well. As we look out beyond September, and I know you guys don't guide, but is there anything we should think about in terms of Shipment pull in versus a typical cycle that you guys have out there. And These high DOIs and build aheads, for example, does that also even when you make an adjustment for the HPMS part and wafer supply Commitments.

Speaker 6

Do these high DOIs also tell us about something beyond September as well? Thanks.

Speaker 3

Chris, I'll make a comment here and then hand over to Bank to provide additional color if he wants. I obviously, we don't guide beyond the quarter. The additional bit of color that I would add is that when we look at The backlog today and the movement there, it's pretty robust and stable. We haven't seen a lot of really any signs of the kind of stuff that you're alluding to. So

Speaker 2

It's pretty steady as she goes. Yes. And I'll reiterate what John said. As we look at bookings patterns throughout the quarter, nothing unusual. And obviously, we have the business with a top customer, but also the rest of the business we've seen No changes in terms of order cancellations or push outs and pull ins and so forth.

Speaker 2

Obviously, we're only guiding 1 quarter at a time. But so far, whatever we've seen has doesn't give us any reason to believe that there's anything unusual, number 1. And then the second question, because you asked In terms of the inventory, again, I want to reiterate the point that for the prior couple of years, we were pretty much in a hand to mouth existence as it relates to inventory and obviously days were incredibly low. So we have been talking for the last couple of quarters about building that inventory so that we can Service our customers more promptly and that's what we are down the path of executing. And also reiterate the point that while inventory days are up this quarter, we do expect it to decline in the next quarter.

Speaker 6

Thank you, Bank. And then secondly, on your wafer commitments, how are you guys feeling about the $560,000,000 in 'twenty four and the $380,000,000 in 'twenty five yet to come. And you'll have less flexibility probably because of those high DOIs. Does that come into play here or not?

Speaker 2

Yes. Good question. So clearly from the long term commitment standpoint, we feel good about where we are With the supplier, we are working very collaboratively with them in terms of trying to figure out how do we Make use of those parts and repurpose them for the ones that we see demand going forward. And longer term, we still see a lot of opportunity in terms of Being able to work with this supplier and then obviously continue to look for other sources of supply over time because we do see the runway ahead over the last over the next several years in terms of the increased content and the new capabilities that we're working on.

Speaker 1

We can take the next question.

Operator

The next question comes from the line of Ananda Baru from Loop Capital. You may now go ahead.

Speaker 7

Hey, good afternoon guys and thanks for taking the question. Yes, two quick ones if I could. Guys, just sort of with regards to the go forward opportunity that you talked about, both with regards to advance power and battery capabilities. Is philosophically as smartphones If smartphones were to begin to adopt kind of more robust AI features And functionality. And even if ARVR, more robust ARVR features in smartphones were to work their way in, in the coming years, Would that create a need for a noticeable step up in advanced power and battery capability that you guys provide?

Speaker 7

And then I have just a quick follow-up.

Speaker 3

Yes, thanks. That's an interesting question. I guess I'll probably be veering into a kind of speculative domain here, but Favorable to us. One is that where we really specialize in is in the interface between the physical world and the digital domain. So anything where a lot of data needs to cross that boundary at very low power and be subject to some kind of processing, then we're really ideal for solving problems in that space.

Speaker 3

That's why We've done so well traditionally in the boundary between the boundary around audio and more recently in the camera and optical space. And I think in general, AI, augmented reality and so on, certainly Drive use cases, which look like that. So I think that presents opportunity for us to grab. And then Since you asked about the power space, I think one thing that's very obvious with anything related to AI is that it is very, very power hungry, causes major Spikes in power demand within any system. And that is that's exactly the kind of thing where Even already our power conversion and control IC is it really delivers a lot of benefits to the system, to the end user and to our customer in terms of battery protection, in terms of managing the system The power across the system and so on.

Speaker 3

So yes, I think that would probably accentuate some of the kinds of problems that we're really experts at solving.

Speaker 7

Yes, that's awesome. I appreciate that context. And the quick follow-up is, the context that you were giving, just around Yes, sort of I know you're not talking specifically about given December quarter guidance, you're just talking about the backlog looking stable and steady as she goes. Is that also to say sort of if we just look at what your classic seasonality might be, that's not an awful place The start for our modeling purposes.

Speaker 3

I think so. I'll caveat it because When we get into this part of the year, of course, around any quarter boundary, there's a lot of material on either side of that. So it doesn't take much movement to move the needle a fair amount. But if you look at the shape of The quarter we're guiding now relative to the last quarter, that is and then compare it against the last 6 or 7 years in terms of seasonality, it's straight down the middle of the fairway. So again, it kind of looks pretty normal to us.

Operator

Your next question comes from the line of Blayne Curtis with Barclays. Your line is now open.

Speaker 8

Hey, thanks for taking my questions. I had 2. I just want to ask you and it might be a tough one to answer, so answer as you can. But to the products that got Shelves, I'm just kind of curious if you can speak to, I guess, the why part. And I guess I asked because I'm wondering if you can speak Kind of what's the status of it?

Speaker 8

I mean, as the customer, but they're never going to use it, kind of who owns the chip? Is there any IP that you spent a lot of time on This development, I'm assuming, in cost. So I think you spoke to maybe getting some reconciliation on The wafers and the cost of like product that was made, I'm kind of curious as to either recouping your efforts or monetizing it later, Anything you can speak to as to the future of that product?

Speaker 3

Yes, I'm not going to go through The details as we understand them of what lay behind the decision. I did point out in the previous call, we were Certainly happy that we hit our milestones, but obviously there were other factors involved. Regarding expectations going forward for it, per the comment in the prepared remarks, we've taken it out of the model, which means that we don't have any Expectations around it. That's not to say it might not come back. There is some very cool technology in there, so we would obviously love that.

Speaker 3

And it's also not to imply that we're saying something about the actual plan that the customer has, because we're not and we don't have insight into that. But we it's just to say that we really don't have line of sight of the plan for it right now. So it remains on the shelf. But yes, there's a lot of great IP there that we would really like to find a way to get it to see the light of day.

Speaker 8

Great. And then just Vic on the workforce reduction, I was just kind of curious the timing of that. Obviously, OpEx is up in September and then you have the 14 week quarter in December. So I'm just kind of wondering how to think about OpEx for December And when you get the full impact of the reduction, does that offset some of the kind of the mechanics of the extra week?

Speaker 2

Yes, Viren. Thanks for the question. Yes, so clearly, from a guidance perspective, we're giving guidance only for the September quarter, but I understand your point. So essentially in terms of the timing, the effect of the actions that we took will obviously only be valid for about 6.5 months to 7 months of the full fiscal year. And so that's the way to think about it.

Speaker 2

And we announced in the 8 ks that it was roughly 4% to 5% reduction. So if you just do the math, it will work out to somewhere around The 4% to 5% spread out over the next several months, right? So I think that's the way to think about it. In terms of the December quarter, clearly, You're not going to see any benefit on the revenue side, but on the OpEx side, the extra week will definitely have an impact on OpEx and that's the way you should model it as well.

Operator

Your next question comes from the line of Matt Ramsay with TD Cowen. Your line is now open.

Speaker 4

Hey, guys. Thanks for letting me jump back in. John, I wanted to you've been having increased commentary about the laptop market and Your large customer is a big player there, but you talked tonight about getting in some reference design programs at Intel. Maybe you could expand on that a little bit, the status of that relationship, how immediate that might translate into revenue and just Your understanding of the size of the unit opportunity that might be covered under those reference design programs at that customer? Thanks.

Speaker 3

Yes. Thank you, Matt. I guess I'll talk about the PC opportunity on a couple of Axi, so one is just the timing of our expectations of how our market penetration and revenue potential looks. And then I'll talk about the stack of content that we believe is going to be Relevant and former part of our SAM there. So we're in the early innings.

Speaker 3

We've just sampled the codec and amplifiers to customers. We've just announced the Inclusion of those on the reference design, typically, those reference designs will be made available to OEMs between 18, 24 months before you see end products in the market. So We're we've still got some way to go for that to grow significantly, but we also have a number of designs, Pretty significant number of designs underway today, which predate that reference design. So I think the way to think about it is that we will see Some products coming out late FY 2024 that include those new devices from us, but the total revenue in FY 2024 is going to be fairly limited then growing somewhat in 2025 and then continuing to grow and become more and more meaningful through FY2026 and beyond. And the SAM that we see is going to be made up of audio and HPMS products.

Speaker 3

So if you look at designs which are underway today, we have at least one design underway where we can see multiple amplifiers, a codec and a haptics driver, which starts to become a pretty meaningful stack of content, obviously. And then over time, we expect power products from us to be layered on top of that. And we can see we can also see potential in some products for multiple dollars worth of power content. So if you look out to 2027, we think there's about $1,200,000,000 of SAM when you take both the audio products and the HPMS power related products into account.

Speaker 4

Thank you for all that detail, John. Appreciate it. Yes.

Speaker 1

This will be our last question.

Operator

Your next question comes from the line of Tore Sandberg from Stifel. Your line is now open.

Speaker 5

Yes, thanks. I just had a follow-up to that last topic Because I mean, this is obviously part of your 3rd strategy. Will you start to break out how much notebook is as a percentage of revenue? And if so, I mean, would it like 10% number or something like that be used? Because obviously, we want to track your progress there.

Speaker 5

And Just wondering numerically if you would share some of that with us.

Speaker 2

Yes, Toni, great question. So As John just mentioned, we're pretty excited about the opportunity that we see in front of us, especially in the PC market across multiple dimensions and Codecs and Amplifies and such. Clearly, from a short term perspective, everybody knows that the PC market is going through some But over time, we do expect these design wins to transfer to translate into meaningful revenue. And at the appropriate time, we will consider that. And, yes, watch the space.

Speaker 5

Sounds good. Thank you.

Speaker 2

Thanks for the question.

Speaker 1

With that, we will end the Q and A session. And I will now turn the call back to John for final remarks.

Speaker 3

Thanks, Chelsea. So in summary, Cirrus Logic delivered revenue towards the top end of our guidance for the Q1 and made great progress across our core areas of strategic focus. The first of which is maintaining our leadership in smartphone audio secondly, continuing to expand our high performance mixed signal content in smartphones and thirdly, leveraging our outstanding audio and high performance mixed signal expertise to diversify into new markets. We're excited about the opportunities in front of us and we thank you for your continued interest in Cirrus Logic. I'd also like to thank all of our employees for their incredible dedication and commitment.

Speaker 3

Before we close, I'd also like to note that we will be participating in the KeyBanc Conference in Vail on August 7. Please check our investor website for the details. Thank you all for joining the call today.

Earnings Conference Call
Cirrus Logic Q1 2024
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