Cirrus Logic, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic first quarter fiscal year 2027 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 Jeff Woolard, our Chief Financial Officer. Today, at approximately 4 p.m. Eastern time, we announced our financial results for the first quarter fiscal year 2027. 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 the 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 in the shareholder letter issued today, which are available on the Cirrus Logic 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 welcome to everyone joining today's call. As you've seen in the press release, Cirrus Logic reported record first quarter results for the June quarter, delivering revenue of $460 million, as well as GAAP and non-GAAP earnings per share of $1.47 and $1.84, respectively. In a few moments, I'll hand the call over to Jeff to discuss our financial results in detail, along with our outlook for the September quarter. Before we get to that, I'd like to provide an update on the progress we've been making across the key pillars of our strategy since our call in May. As I've outlined previously, our long-term strategy for growth is based around three principles. First, maintaining a strong leadership position in our flagship smartphone audio business. Second, expanding the value and range of high-performance mixed signal, or HPMS, solutions with which we serve our customers in smartphones and related products. and third, leveraging our world-class expertise and IP in both the audio and high-performance mixed signal domains to grow and broaden our business in new markets. I want to say a few words now about each of these areas. In our flagship smartphone audio business, we saw a continued strong demand for our custom-boosted amplifiers and smart codecs. Together, these components deliver exceptional audio performance and meaningful power and efficiency gains, and moreover, have benefited from an especially strong product cycle from our customer. While we continue to invest in innovations that will raise the bar of future audio solutions, we anticipate that these products will continue to ship for multiple future generations of customer products. This provides the company with solid long-term visibility and the ability to focus R&D resources on new applications that expand the reach of our business and serve our customers in new ways. Which brings me on to our second priority, expanding HPMS content in smartphones and related products at the edge. Our progress in the June quarter reinforced our confidence in the long term opportunity to grow content across camera, battery and power applications. In the camera area, our close engineering collaboration with our largest customer has spanned multiple generations of controllers to date, and today we are executing on a roadmap to deliver the next generation of camera products. In battery and power, our products integrate signal processing and control capability to get the most out of the system in terms of both performance and efficiency in a way that sets us apart from more traditional analog competitors. These capabilities were central to winning the smart power IC for 3D sensing we discussed on our last call, the development of which continued on schedule during the quarter. We also saw further close collaboration with our customer on other power and battery products that we think can expand content over time. Across our core audio and HPMS business, we see a pipeline of opportunity over the next few years that is as strong as any we can remember. Beyond smartphones, we also made progress on our third strategic priority, expanding into new applications and markets. The PC market remains our largest near-term growth opportunity outside of smartphones, where we see potential for growth in volume and attach rates over time of both audio and HPMS content. That said, our expectations for our PC business this fiscal year have come down since we spoke in May, and I want to be clear about the reasons for that. Three distinct factors have contributed. First, the constrained supply of a key industry platform in which we have content. Second, memory and component shortages and the pricing pressure that comes with them acting as a headwind for the broader PC market. And third, OEMs responding to these conditions by delaying some new model introductions and extending the life of existing platforms. Those new models generally represent both higher content per system for us and, in many cases, higher volume designs. So their delayed introduction pushes out some of the growth we would otherwise have seen in our PC business this year. I would characterize these factors as timing rather than anything fundamental. Our customer engagement, design win momentum, and competitive standing all remain very encouraging. And our excitement about the opportunity for Cirrus in this space over the coming years is undiminished. In particular, as we partner with our PC OEM customers on AI-enabled PCs, we see considerable interest in our voice technology solutions. Today, the PC voice experience is often limited because running always-on wake word detection on the CPU or NPU drains battery life rapidly and introduces latency that adversely affects the user experience. Our latest low-power smart codec delivers wake word detection, noise reduction, audio buffering, and other voice features in a standalone device, keeping system power consumption extremely low until the user engages the conversational interface. Customer interest in this product was strong during the June quarter, and we advanced engagements with multiple customers on designs for next calendar year. Lastly in this part of our business, during the quarter, several OEMs announced new PCs based on NVIDIA's RTX Spark platform. Products based on RTX Spark from several of our customers are expected to ship later this year with Cirrus Logic amplifiers and codecs onboard. We're excited to be a part of this platform and see these launches as further examples of our PC portfolio broadening its reach, along with the benefits our customers experience in being able to use the same voice and audio subsystems across different platform architectures. In our wider general market business, we continue to engage a broad base of customers across the professional audio, automotive, industrial, and imaging end markets. A highlight this quarter was the tape-out of a new family of high-performance analog front-end components targeting smart meters. We anticipate sampling these in the September quarter. These new products deliver higher accuracy voltage and current measurement for residential, commercial, and industrial applications, and their on-chip digital signal processing enables power quality analysis and fault detection while reducing our customers' overall system cost. We believe the underlying technology developed for these products can also extend beyond smart meters into a number of adjacent applications, including energy storage, data center DC metrology, EV charging, and grid monitoring. These smart meter products represent the latest example of how we can leverage our world class mixed signal IP into markets that can drive sustained and profitable long term growth. They complement launches over the past two years of products in timing, professional audio, and industrial imaging segments. Each of these product families should enjoy lifespans and gross margins well above our corporate average and so represent an attractive addition to the rest of our business while broadening our addressable market. Finally, I would also like to note that we recently signed a new capacity reservation and wafer supply agreement with Global Foundries. This agreement builds on our longstanding partnership with Global Foundries and secures dedicated wafer capacity and pricing for calendar years 2027 and 2028, further supporting the broad range of opportunities we see ahead. In parallel to executing this agreement, we continue to collaborate with global foundries on next generation process technologies and progressing towards manufacturing products on U.S. soil at their facility in Malta, New York. In summary, we're proud of our progress this quarter, during which we continue to execute on our strategy to be the chosen supplier for a range of critical audio and HPMS sockets in our core business, diversify our product portfolio, and drive growth in new applications and markets. We're excited about the opportunities ahead of us across all of these fronts. and that concludes the latest update on our long-term growth strategy. So let me now turn the call over to Jeff to provide an overview of our financial results as well as the outlook.