Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic fourth quarter and full 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 announced our financial results for the fourth quarter and full fiscal year of 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 information to the most directly comparable GAAP information, along with the webcast of this Q&A session are all available at the company's investor relations website at investor.ciras.com. This call will feature questions from our analysts covering our company and and as well as questions submitted to us via email at investor at seris.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, whether as a result of new developments or otherwise. Please refer to the press release and shareholder letter issued today, which are available on the Cirrus Logic website, and the latest Form 10-K, as well as other corporate filings made with the Securities and Exchange Commission for additional discussion of risk factors that could cause actual results to differ materially from the current expectations. Now I'll turn it over to John.

Thank you, Kevin, and thank you everyone for joining the call today. In the past year, Cirrus Logic made excellent progress on the key growth factors and strategic initiatives that we believe will contribute to our continued success in the quarters and years ahead. We increased the penetration of our audio solutions in smartphones, we gained momentum with audio and haptic solutions in exciting categories beyond smartphones, and we brought innovative products to market in new technology domains, expanding the range of product areas where Cirrus is recognized for its leadership. We're particularly pleased with the progress we've made in driving product diversification in the high performance mixed signal area, which we have highlighted as a key pillar of our strategic vision for the company's future. The introduction of our first camera controller contributed to 55% year-on-year revenue growth in the high-performance mixed signal category. I feel it's also especially important to take a moment to thank our employees for everything that they have done over the past year. Amid many, many challenges, they've shown extraordinary dedication both to supporting our customers with their current products and to keeping on track the many important development programs that we believe will be central to our and our customers' future success. Turning now to our results, Cirrus Logic delivered FY21 revenue of $1.37 billion, up 7% year-on-year, and non-GAAP EPS of $4.58, up 27% year-on-year, driven largely by content gains and higher unit volumes. Like many in the semiconductor industry, we have been experiencing strong demand in excess of supply. And while capacity constraints have not meaningfully affected the largest parts of our business, they did have some impact on our revenue for the last quarter, as well as on our outlook for the first quarter of FY22. Today, we still see demand in excess of supply in some areas of our business, most typically in older products and in some cases in parts of our audio business that we've added during this supply-constrained period. and our experienced team is working closely with our supply chain partners to meet that demand as rapidly as possible. In the coming months, we will begin shipping new technologies to our customers across a range of end devices, including important new content in the high-performance mixed signal category. And based on these factors, we expect to accelerate revenue growth in FY22. With this pipeline of new products and the R&D investments we're making to further strengthen our roadmap of compelling audio and high-performance mixed signal solutions, We're extremely excited about the coming year. Before we begin the Q&A, I'd also like to note that while we understand there is always 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.