Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic fourth 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 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, CirrusLogix Chief Executive Officer and Venk Nathamuni, Chief Financial Officer. Today, at approximately 4 p.m. Eastern Time, we announced our financial results for the fourth quarter and full fiscal year 2023. 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. Reconciliations of these non-GAAP measures to their most directly comparable gap 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 statement, whether as a result of new development or otherwise. Please refer to the press release and the shareholder letter issued today, which are available on the CirrusLogic website, and the latest Form 10-K, as well as other corporate filings registered 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, Chelsea. And thank you, everyone, for joining today's call. As you've seen in the press release, in FY23, CirrusLogic delivered record full fiscal year revenue of $1.9 billion, up 7% year over year, driven by higher sales of components shipping in smartphones. Venk is going to discuss those results in greater detail shortly. But before we get to that, I'd like to take a moment to highlight the progress we've made on our long-term growth strategy over the last year. The three key pillars of that strategy include one maintaining our leadership position in smartphone audio by continuing to deliver world class products and outstanding execution to the strongest customers in the market. To increasing high performance mixed signal content in smartphones to build a growing footprint of products outside of audio and three. leveraging our strength in audio and high-performance mixed signal to expand into additional applications and markets over time with new and existing components. Looking at the first pillar of that strategy, Cirrus Logic remains a clear leader in smartphone audio. Today, 17 of the top 20 smartphone devices in DxOMark's audio quality rankings use Cirrus Logic audio components. In Q4, several Android customers introduced flagship devices that utilize our boosted amplifiers, and we anticipate a number of new smartphones using our audio components to be launched later this calendar year. During the year, our team also began design of our next generation custom boosted amplifier and our next generation 22 nanometer smart codec, both of which are now in advanced stages of development. We anticipate that these next generation audio components will not only extend our leadership position in smartphone audio, but also deliver significant revenue for many years following their introduction. Turning to the second key element of our growth strategy, increasing high performance mixed signal content in smartphones is critical for our success as it substantially expands our addressable market beyond audio. We believe that this product line represents a significant opportunity to grow and diversify our revenue, And to that end, in the past year, we saw both our R&D investment and the number of opportunities we're pursuing in this area increase. Over the last year, progress with our HPMS products included growing our penetration haptics in Android, along with the introduction of an updated camera controller in Q2 FY23. Indeed, since our first camera product was introduced in FY21, we have grown the average content of our camera controllers in each subsequent generation of smartphones. More recently, in Q4, we completed the successful production qualification on our next generation camera controller, which is expected to ship in the second half of this calendar year, continuing to build on our track record of innovation in this critical area of the user experience. The ultimate measure of successful execution of our HPMS strategy is revenue. And over the past four years, we've seen revenue derived from HPMS solutions increase from 12% to 38% as a proportion of total company sales and from 145 million to 726 million in dollar terms. We continue to believe that we're on a path where our HPMS business can generate at least half of our annual revenue in the future. That said, Among the HPMS opportunities we've discussed, a new product that we mentioned in previous shareholder communications as being scheduled for introduction this fall is no longer expected to come to market as planned. As we have limited visibility of our customers' future plans for this product at this time, we're removing the revenue associated with this component from our internal model to reflect this change in our expectations. And while this is undeniably a setback, we are proud of our execution in this program, and we continue to believe that our strategy of expansion through HPMS products provides us with many exciting opportunities. I'd also note that our customer relationship remains very strong, and we continue to collaborate on a range of technologies and products across both the audio and HPMS domains. The third pillar of our strategy is to leverage our existing products, intellectual property and capabilities in order to enable new applications and penetrate new markets, thereby unlocking further opportunities for growth. We've spoken about the PC market as being one of these areas, which, despite its present cyclical softness, remains a largely greenfield opportunity for us, where we believe a number of secular trends can act as favorable tailwinds in the coming years. During the year, we continue to gain momentum with customers in this market, increasing the number of models we're designed into and sampling our first boosted amplifier and codec products that are optimized specifically for laptops to our customers. We expect the first end products with these components to start to come to market in the second half of FY24. More recently, we taped out our first laptop-focused power solution. We continue to view the laptop market as a promising opportunity in the coming years we look to capitalize on the favorable trends and expand our share we also continue to evaluate further markets where our world-class expertise and mixed signal innovate innovation can benefit both new and existing customers in summary we're proud to have delivered record revenue in fy23 as we continue to execute on our strategic initiatives with a pipeline of products coming to market over the next couple of years and our and continued design innovation in both existing and new product areas, we believe Cirrus Logic is well positioned to continue to diversify our product portfolio and to expand our addressable market. And with that, let me now turn the call over to Venk to provide an overview of our financial results for our fiscal Q4 FY23, as well as guidance for Q1 FY24.