Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic third quarter fiscal year 2021 financial results Q&A session. At this time, all participants are in a listen-only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing up will be provided at that time. As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference call over to Mr. Thurman Case, Chief Financial Officer. Mr. Case, you may begin.

Thank you and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's Chief Executive Officer, and Chelsea Heffernan, our Director of Investor Relations. Today we announce our financial results for the third quarter fiscal year 2021 at approximately 4 p.m. Eastern. The shareholder letter discussing our financial results, the earnings press release, including a reconciliation of non-GAAP financial explanations of the most directly comparable GAAP information, along with the webcast of this Q&A session are all available on the company's investor relations website at investor.cirrus.com. This call will feature questions from the analysts covering our company. as well as questions submitted to us via email at investoratseris.com. 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 Thank you for joining us.

Thank you, Thelma. Cirrus Logic delivered Q3 FY21 revenue of $485.8 million, above the high end of our guidance as we experienced strong demand for certain product shipping in recently introduced smartphones. During the quarter, we were especially pleased with customer evaluations and design inactivity across our product lines. We expect a variety of new end products utilizing our boosted amplifiers, truly wireless headset smart codecs, and haptic solutions to be introduced in the first half of this calendar year. In reflecting on what is really an incredible set of results for the quarter, I'd like to acknowledge and express our thanks to Jason Road and to Al Schooley, who were of course CEO and Chair of the Board of Directors respectively for the period, and whose leadership played such an instrumental role in building the company that we are today. In the December quarter, the company also completed our annual strategic review, and we are truly excited about the three growth factors that we believe will contribute to our long-term success. First, we anticipate strengthening our position as the leading audio supplier in smartphones. Second, we are focused on increasing sales of audio components in certain applications beyond smartphones. And third, we're drawing on our extensive mixed signal engineering expertise to develop technology in new product areas that we believe will drive diversification beyond the audio domain. In the last quarter, we took an important step along that path with the introduction of a closed-loop controller product. And in the last two earnings calls, we've also signaled that we are currently investing heavily in a product in another new area relating to power that we are aiming to introduce later this calendar year. While we won't go into details on those products, I will report that our engineering progress continues to be really positive and that we continue to be very excited about the journey we're on with our customer. With a rich portfolio of products available today and a pipeline of innovative new components in development, we're optimistic about our ability to execute on this strategic plan and we believe that this will drive both revenue growth opportunities and product diversification in the coming years. Before we begin the Q&A, I'd also like to note that while we understand there is intense interest related to our largest customer, in accordance with our policy, we do not discuss specifics about our business relationship. Operator, we're now ready to take questions.