Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic third quarter fiscal year 2023 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 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 Natamini's Chief Financial Officer. Today, at approximately 4 p.m. Eastern Time, we announced our financial results for the third quarter fiscal year 23. The shareholder letter discussing our financial results The earnings press release and 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. Reconciliation 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. 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 revenue this quarter with sales of $590.6 million driven by products, shipping, and smartphones. I'd like to express my sincere thanks to the entire Cirrus Logic team whose innovations, hard work in execution, and commitment to our customers made these results possible. And on behalf of all of us at Cirrus, I'd also like to communicate our gratitude to our customers and to all those who work with us throughout the supply chain for their continued partnership and support. In a moment, Venk is going to discuss the results in greater detail. But before we get on to that, I'd like to provide a progress update on the strategy driving our current momentum. As most of you know, the first pillar of that strategy is to maintain our leadership in smartphone audio. And during the past quarter, we saw a significant customer interest and traction across our portfolio of amplifiers and codecs in this market. We remain on track with the development of our next generation 22 nanometer smart codec, which we taped out during the quarter, and with the development of our next generation custom boosted amplifier. We expect to see both components introduced within the next couple of years. These new products will deliver significant performance improvements over previous generations, enabling our customers to build even more compelling and power efficient devices for their users. One aspect of our flagship amplifier and codec business that's not always fully visible to those outside the company is that these products are designed in a very thoughtful and feature-rich way in close collaboration with our customers in order that they're able to run for numerous phone cycles following their initial introduction. In fact, over time, we've seen the lifespan of codecs and amplifiers increase. And this means that in contrast to many components in the consumer smartphone market, we can anticipate multiple years of sales at high volumes from our next generation audio products, providing the company with sustained revenue contribution, excellent long-term visibility, and the opportunity to redeploy our highly skilled engineering teams onto innovations that target other products and markets. So this is why maintaining our long-term leadership in these product areas is foundational to our future growth. The second key element of our growth strategy is to expand the reach of our audio components and technologies, especially into adjacent markets that we believe we can serve profitably by leveraging the intellectual property and innovations that we have developed for our smartphone products. One of those markets is laptops, and in spite of the current cyclical weakness in the PC space, we see laptops largely as a greenfield opportunity where we continue to expect our addressable market to grow significantly over the coming years. As evidence of this, in the last year alone, Cirrus Logic has been designed into more than 60 laptop models using existing audio products. And building on that momentum, during the last quarter, we saw considerable design activity around our new amplifier and codec products that have been specifically optimized for the laptop market. We expect the first platform utilizing these new products to begin shipping in the second half of fiscal year 2024. The third pillar of our strategy is to leverage our world-class mixed signal engineering expertise to build a growing footprint of products and intellectual property in what we call our high-performance mixed signal product lines. The significance of this facet of our strategy is that doing so expands our addressable market significantly beyond audio. And we believe that our considerable experience in mixed signal product development at advanced process nodes and in delivering high-performance data converters, high-precision sensing, and advanced signal processing is highly relevant to a number of product domains. The fact that we have already seen meaningful contributions from products in this category highlights that our customers also increasingly see us more broadly as a world-class mixed signal solution provider. And today we have more activity within our high-performance mixed signal R&D teams than ever before. During the quarter, within those HPMS activities, we saw continued strong customer engagement in the camera space. It's worth noting that as a consequence of increased attach rates, higher ASPs, and a more favorable mix over time, we've grown the total value of our camera products in each of the last three smartphone generations, and we expect this trend to continue with our next generation camera controller shipping later this year. We also made excellent progress toward the introduction of a new HPMS component during the second half of this year, and we continue to see strong interest in our capabilities around battery and power. Going forward, we believe there are further opportunities to grow our addressable market in the battery and power space, both within smartphones and beyond. And indeed, during the quarter, we also taped out our first general market power product targeting laptops, which is designed to deliver more efficient power conversion in order to enable OEMs to create more powerful single fan and fanless laptop devices. In summary, in the third quarter of fiscal 23, We continue to execute on our strategic initiatives to diversify our product portfolio and broaden our addressable market into new application areas and end markets. With a solid pipeline of products expected to be introduced over the coming years and a deep commitment to investing in innovative technology, we believe Cirrus Logic is well positioned to drive growth and capture new opportunities 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 fiscal Q3 2023, as well as guidance for fiscal Q4.