Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic first quarter fiscal year 2024 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 Q&A 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 Forsythe, Cirrus Logix Chief Executive Officer and Venk Nathamuni Chief Financial Officer. Today at approximately 4 p.m. Eastern Time, we announced our financial results for the first quarter fiscal year 2024. 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 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, whether as a result of new developments 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 the first quarter of fiscal year 2024, Cirrus Logic delivered revenue of $317 million towards the top end of our guidance for the quarter, driven by products, shipping, and smartphones. In a moment, Venk will discuss the results in greater detail, but before we get onto that, I'd like to provide some color on how we're doing against the strategy that I've outlined on previous calls. The first pillar of that strategy is to maintain and build our leadership in smartphone audio. And to that end, this quarter we taped out our next generation custom boosted amplifier, a component that we believe will deliver significantly increased performance and value to our customer, and which we anticipate will ship next calendar year. We also completed product validation of our first 22 nanometer smart codec, a new product which is also on track for introduction next year. This new codec represents a significant technology transition for Cirrus Logic, and again, will deliver meaningful feature and performance benefits to our end customer. In our general market smartphone business, we also secured several next generation Android sockets. And as a consequence, we anticipate seeing many great smartphone products featuring Cirrus Logic audio and haptics being launched in the market in the coming year. Moving on to the second pillar of our strategy, we're excited about the opportunities we see to continue to grow our high-performance mixed signal content in smartphones. The camera is a marquee feature of every major smartphone launch. We're proud of the progress that we've made in this area since we introduced our first camera controller product in calendar 2020. We're currently ramping production of our latest camera controller product for a smartphone that is expected to be introduced later this year. And looking forward, we believe there's still significant potential to continue to grow value in this area. And we're today investing in a roadmap of further products and features in pursuit of that goal. Beyond the camera, we've also previously indicated that we believe advanced power and battery-related technologies represent great opportunities for the company. And today we have a number of R&D programs underway related to high efficiency charging, battery management, and system side power delivery. We believe that the investments we are making in this space today will continue to drive product diversification and revenue growth in the future. Turning to our third strategic vector, we're increasingly leveraging our strengths in audio and high performance mixed signal to diversify into additional applications and markets. Most recently, we have focused on expanding into the laptop market, where we see significant greenfield opportunity for the company in the coming years. Today, we have well-established relationships with the top five laptop OEMs, who together account for a significant majority of all laptop unit volumes, and we are shipping content with each of them. While we're still in the early stages of our entry into this market, we already see significant customer demand and engagement around our amplifier and codec products that have been specifically optimized for laptops. And we expect end devices incorporating these new components to come to market in the next 12 months. During the June quarter, we also secured our first business laptop win with our new amplifier, highlighting the growing importance of audio quality in this key segment. And we anticipate this device will begin shipping next year. Additionally, we're delighted that both our new amplifiers and codec have been selected as part of the Soundwire compatible reference design from Intel, which will accelerate time to market and enable adoption of our components across more OEM platforms. Beyond the laptop market, we also continue to invest in further products and customer engagements that we anticipate will expand both our revenue and market diversity in the long term. These include gaming, augmented and virtual reality, automotive, industrial, and professional audio applications. The latter illustrated by our recent launch of a range of industry-leading professional audio ADC products. We're excited about the number of ways in which we believe we can leverage our outstanding engineering talent and best-in-class intellectual property to grow our business in these areas and beyond. Finally, I would like to discuss briefly the difficult decision we took in July, resulting in a workforce reduction of approximately 5% of our global employee base. This action was taken in order to better align our overall cost structure with our revised revenue expectations, in light of both a previously discussed change in customer plans regarding an HPMS product that we had been expecting to be introduced this fall, and the current general market softness. We remain committed to disciplined execution of our strategy and believe that following this action, we are well positioned to invest in many opportunities we see to drive future growth. And with that, let me now turn the call over to Venk to provide an overview of our financial results for our fiscal Q1 2024, as well as guidance for the second quarter.