Cirrus Logic (CRUS) Oppenheimer 27th Virtual Annual Technology, Internet & Communications Conference summary

Growth strategy and market focus

• Pursuing growth both with the largest customer and by expanding into new markets to balance revenue concentration.

• Three-pronged strategy: maintain smartphone audio leadership, expand into high-performance mixed signal (HPMS) areas like camera, haptics, and power, and leverage IP for new markets such as PCs.

• New audio content, including next-generation codecs and boosted amplifiers, is launching in the coming months, representing a significant product evolution.

• R&D investments are leveraged for both current and future mixed-signal opportunities.

PC market opportunity

• PC segment is a greenfield opportunity, with Cirrus winning in audio, power conversion, and haptics, often in parallel.

• Entry into PC audio was aided by supply chain shortages, and the company developed PC-specific codecs and amplifiers to support new architectures.

• Power conversion wins are tied to the Lunar Lake reference design, with unique offerings compared to competitors.

• PC market could rival or exceed Android business, with a $1B+ serviceable available market (SAM) projected in four years, focusing on premium and mid-tier segments.

• Audio, haptics, and power efficiency are key differentiators, with strong OEM demand for improved user experience.

Forecasting and demand trends

• Forecasting aims for accuracy, not upside surprises; recent upside was due to atypically sustained demand and effective retail incentives.

• No change in forecasting philosophy; supply chain insights and historical patterns guide estimates.