Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic second quarter fiscal year 2023 financial results Q&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. 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.

Thank you and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's Chief Executive Officer and Bank Natamuni Chief Financial Officer. Today at approximately 4 p.m. Eastern Time, we announced our financial results for the second quarter fiscal year 2023. The shareholder letter discussing our financial results, the earnings press release, along with the webcast of this Q&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 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 also 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. By providing this information, the company expressly disclaims any obligation to update or revise any projections or forward-looking statements. Thank you, Chelsea. And thank you, everyone, for joining today's call.

As you've seen in the press release, Cirrus Logic delivered record second quarter revenue and earnings per share. The September quarter also marked the fifth consecutive quarter in which we have set a revenue record for the corresponding fiscal period. I'd like to thank all of our valued customers, our partners throughout the supply chain, and the entire Cirrus Logic team for their hard work and collaboration in achieving these outstanding results. Before we discuss the results in greater detail, I'd also like to provide a progress update on the key elements of the strategy that is currently driving our momentum. The three pillars of our strategy are first, maintaining our leadership position in smartphone audio by delivering world-class products and outstanding execution to the leading customers in the market. Second, expanding the reach of our audio components and technologies in key profitable applications beyond smartphones. and third, leveraging our world class mixed signal engineering expertise to build a growing footprint of products outside of audio in what we call our high performance mixed signal product lines. We've already seen meaningful contribution from products in this category, and we believe this area presents significant opportunities both within smartphones and in other markets that can contribute meaningfully to future growth. This quarter we continue to execute successfully on all three of these strategic vectors. In audio, against a backdrop where demand for our amplifiers and codecs remained strong and in excess of the available supply, we not only continued the development of our next generation 22 nanometer smart codec, but also began initial development of a next generation custom boosted amplifier. These are exciting and vitally important products for us and for our customers. Our 22-nanometer codec development will bring a new level of performance and power efficiency to audio, sensing, and other signal processing use cases. And our next generation boosted amplifier will bring significant performance, efficiency, and architectural advantages to our customers' products. I'd also like to point out that given that these types of products typically enjoy a long lifespan in production, we believe these new product development initiatives help to provide us with good longer-term visibility regarding our business, and Optimism about their potential for sustained revenue contribution. Looking beyond smartphones, we've spoken previously about the laptop market and its potential as one of the areas where we see an opportunity to expand the reach of our audio components profitably. I'd like to distinguish between the near-term softness in the PC space that we're all aware of and the secular drivers that we believe are meaningfully expanding our serviceable available market in laptops in the long run. These include a greatly increased emphasis from our customers and end users on higher quality audio experiences due to the growth of remote and hybrid working, a transition to thinner and lighter form factors, a drive for greater power and thermal efficiency, and an evolution towards a more smartphone-like audio architecture that leverages multiple boosted amplifiers. This quarter, we engaged with multiple customers in design activity around our first amplifier designed specifically for this market, and we also started sampling our first sound wire enabled codec specifically designed for laptops. We continue to believe this area can represent a valuable expansion of the market for our audio products and technologies. Moving on to our high performance mixed signal products, we're proud of the progress we've made growing HPMS revenue, which represented 38% of total revenue in the September quarter. With the launch of a new generation of smartphone devices this fall, we've also been delighted to see an increase in adoption of our camera controllers, which play a vital role in helping to deliver outstanding camera experiences. I've spoken previously about the consistent year-on-year expansion of value that we've seen in the camera space since the introduction of our first product. And looking forward, we believe we have opportunities to deliver further innovation and continue this trend in the future. Turning to power, we are currently also developing new power-related products and technologies that will expand our range of solutions in battery health, metrology, charging, and other areas. And we believe these investments can position the company to expand our footprint in the power area in the coming years. In summary, we made exciting progress this quarter on strategic initiatives that we believe will contribute to sustained multi-year growth. and our engagement with key customers around future products and opportunities remained extremely strong. With both the compelling lineup of existing components shipping today and continued investment in innovative audio and high performance mixed signal products, we believe we are well positioned to drive further growth and product diversification in the coming years. And with that, let me now turn the call over to Venk to provide an overview of our financial results for our fiscal second quarter 2023 as well as guidance for our fiscal third quarter 2023.