Cirrus Logic Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christopher Rolland - Susquehanna Financial Group, LLLP - Analyst : Hey guys, thanks for the question. So, I do think I understand the extra week in September and the effect there, but still, this is for for December a larger than typical seasonal decline. I guess maybe you can talk about the inner play there between content, your content expectations, what was actually delivered versus like build the patterns, whether you had chip ahead there versus just unusual weakness in units. And then as we think about March, I know you don't want to guide a quarter ahead, but given that seasonality is all messed up for December. March is typically down high 20s. How should we think about that? Just given the messed-up December. Thanks.

Question: Christopher Rolland - Susquehanna Financial Group, LLLP - Analyst : Understood John. Maybe the next one for Ulf. So on the way for obligations, I think they're like mid-500s in '24. You get some relief next year, I think high-300s, the inventory that you're building, that's I imagine on that 24 number just as it's higher as we move into next year would you expect any inventory build or are we all out of the clear there on that side. And then anything else, any other pain points or things to think about on the way for obligations? Thanks.

Question: Tore Svanberg - Stifel, Nicolaus & Company - Analyst : Yes, thank you. So John, I appreciate you can't talk a lot about your largest customer, but it is a bit of an unusual time where, they're kind of updating their operating systems and their product cycles kind of on the go. Right. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2024 / 10:00PM, CRUS.OQ - Q2 2025 Cirrus Logic Inc Earnings Call So I'm just wondering if that has created any unusual linearity for you, whether it's staging inventory or lead times. Because it is a bit unusual. So I'm just wondering if that has created anything unusual for you as a supplier.

Question: Tore Svanberg - Stifel, Nicolaus & Company - Analyst : No, that's fair and just as a follow up and I'll use sort of what's happening in the laptop to try to understand what could potentially happen in the smartphone. I know it usually happens the other way around. But you did talk about selling in and a new laptop now, basically a codec amplifiers and power conversion ICs. And I'm a little bit intrigued about the power conversion ICs. Is this something that, you expect to expand on in the smartphone market in 2025?

Question: Tom O'Malley - Barclays Capital - Analyst : Hey guys, thanks for taking my question. My first one is just on seasonality until the last fiscal quarter as well. I know you guys want to stay away from guiding there, but just if I take kind of the better end of the historical seasonality kind of down 11 in the March quarter. And I look at where that puts you as a business, like you're still kind of growing mid-single digits in fiscal year '25. So I don't think you've updated really your expectations on the content side for this year. And I think that, you had a couple of really nice upgrades there. So what would, what would explain the difference, I guess between the initial outlook of a strong content year and kind of that fiscal year even at the best type of seasonality in March, not being up the kind of high single digits, low double digits.

Question: Tom O'Malley - Barclays Capital - Analyst : Helpful. And then on the PC side, you had talked about tens of millions of dollars, kind of exiting this year. Could you maybe talk about, how that's been tracking so far? And then as you look kind of into next year, are you still in kind of the tens of millions of dollars range or do you think that you have more confidence kind of sitting here today versus where you were three or six months ago on that side? Thank you.

Question: Ananda Baruah - Loop Capital - Analyst : Yeah, thank you for taking the question. Yeah, I guess just one for me, is there any context or useful way any context you can provide or sort of useful way to think about as you think forward with on this is on the smartphone side. If the growth coming forward -- and this is big picture, this is not next year, but it will be driven both from, I guess the content side or the unit side, more disproportionately, I guess really trying to think about where the bigger opportunity is for the company? If there, -- if one is bigger than the other? Thanks.

Question: Ananda Baruah - Loop Capital - Analyst : That that's really, really useful context. I really appreciate it. Yeah, that's it for me. That's great. Thank you so much.