Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic First Quarter Fiscal Year 2022 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 purpose, 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 first quarter of fiscal year 2022 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 the analysts covering our company, as well as questions submitted to us via email at investoratsiris.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 current expectations. Now I'd like to turn the call over to John.

Thank you, Thelma. Cirrus Logic delivered Q1 FY22 revenue of $277.3 million, up 14% year-on-year, driven by higher smartphone volumes in Android, content games in smartphones, and an uptick in sales in laptops. During the quarter, we made great progress in both accelerating our sales momentum and executing on several of the strategic initiatives that we believe will position the company for sustained growth in the longer term. We increased penetration of our Android customers, ramped shipments for the leading laptop OEM, supported the adoption of new content in anticipation of product launches in the latter half of the year, and advanced the development of a number of exciting new devices that are expected to fuel future revenue growth. We also made very positive headway in the high-performance mixed signal category. Within this product line, our largest single area of both investment and growth opportunity remains power. The company's first-generation power conversion and control IC, which we are currently ramping, brings new technology and system-level capabilities to smartphones and adds significant diversity to our product and intellectual property mix. To further broaden our product portfolio in this space, we recently acquired Lion Semiconductors. Doing so extends our footprint into the rapidly growing wired and wireless fast charging market and brings considerable long-term growth potential. We also believe the addition of battery-centric charger products is highly complementary to our power conversion and control investments. With Lion Components shipping in volume in both flagship and mid-tier Android smartphones, the acquisition aligns well with our current target end markets while bringing meaningful opportunities for further diversification. With our continued leadership in audio, our innovations in high-performance mixed signal areas such as haptics, camera controllers, and power, and our continued investment in building strong and enduring customer relationships, we believe we are well-positioned to achieve sustained growth in the coming years. In addition to this progress in executing our growth strategy, I would also like to highlight that the company recently published its first environmental, social, and governance report, which can be found on our ESG website. In doing so, we formalized our ESG strategy, setting out both short and long-term commitments in the areas of sustainability, diversity, equity, and governance that matter most to our customers, our employees, our stockholders, and the communities in which we live and work. We also put in place structures for accountability to monitor and report on our progress in these areas in the coming years. and to continue the theme of energy efficiency that unites so many of our products, we also reported on the company's energy usage and emissions for the first time, establishing a baseline carbon footprint to help identify opportunities for improvement and to set science-based emissions reduction goals for the future. Before we begin the Q&A, I would also like to note that while we understand there is intense interest in 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.