Cirrus Logic, Inc. · NASDAQ:CRUS
Cirrus Logic — Investor Presentation (January 2020)
28 slides from Cirrus Logic's investor presentation, Jan 29, 2020
Slide 1: Investor Relations Update
Investor Relations Update As of January 29, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for historical information contained herein, the matters set forth in this presentation contain forward-looking statements, including industry market projections; our revenue growth opportunities; our ability to grow revenue by expanding content and share in smartphones
Slide 3: Cirrus Logic at a Glance
Cirrus Logic at a Glance PROFILE PRODUCTS CORE STRENGTHS Analog and digital signal Founded in 1984 Smart codecs processing Listed on NASDAQ: CRUS Audio amplifiers Engineering execution World-class customer support FY19 revenue: $1.2B Haptic drivers and application expertise Headquarters in Austin, T
Slide 4: Proven Operating Model
Proven Operating Model Leverage best-in-class IP SOLID OPERATING Expand with MARGINS more content & Target more products fast-growing markets STRONG CASH FLOW Design best-in-class custom, LEADING SUPPLIER OF semi-custom & Engage tier-one LOW-POWER, HIGH- general market market leaders PRECISION, MIXE
Slide 5: Compelling Strategy for Growth & Diversification
Compelling Strategy for Growth & Diversification Audio First Choice in Signal Processing Mixed-Signal Low-Latency Low-Power Outstanding Customer Design Processing Leadership Execution Focus 5
Slide 6: Focus on Market-Leading Customers
Focus on Market-Leading Customers MOBILE SMART SMART HOME ACCESSORIES Supplier to 8 of the top 10 Supplier to 4 of the top 5 Supplier to top 2 smart smartphone OEMs, headset brands home OEMs including top 4 Company expects to expand content with new and existing customers in FY21 Top 10 smartphone O
Slide 7: Unique Corporate Culture
Unique Corporate Culture
Slide 8: Technology & Market Overview
Technology & Market Overview 8
Slide 9: Expanding SAM in a Vast Mixed Signal Market
Expanding SAM in a Vast Mixed Signal Market 2019 2024 Further Adjacent Haptic Drivers Mobile Opportunities $240M Total Mixed Signal $1B Total Mixed Signal Market* Haptic Drivers & Market* “Closed-Loop Controllers” Audio & Voice: $45B Mobile, Accessories & Home $45B $1B $2.5B Audio & Voice: Mobile, A
Slide 10: Cirrus Logic Growth Vectors
Cirrus Logic Growth Vectors • Increased concentration of stereo smartphones with dual loudspeakers EXPANDING CONTENT AND • Boosted amplifier penetration increasing across global smartphone market SHARE IN SMARTPHONES • Increased adoption of seamless, always-on voice activation • Increased adoption o
Slide 11: Expanding Product Portfolio
Expanding Product Portfolio Haptic Drivers Haptic Drivers ASP $0.50 - $0.75 ASP $0.50 - $0.75 Audio Amplifiers Audio Amplifiers ASP $0.40 - $0.75 ASP $0.40 - $0.75 Mid-Tier Smart Codecs Digital Accessory Codecs ASP $1.00 - $1.50 ASP $0.60 - $1.50 Flagship Smart Codecs Smart Home Smart Codecs ASP $1.
Slide 12: Product Overview
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Slide 13: Audio Amplifiers
Audio Amplifiers • Delivering a louder and higher quality audio experience • Smartphones transitioning from mono to stereo speakers • Ultra-low power required for extended playback • Advanced power management applied to protect speakers and manage battery performance Boosted Amplifier Speaker Protec
Slide 14: Haptic Drivers
Haptic Drivers • Waterproofing and advanced industrial design trends are driving customers to replace mechanical buttons with sensor and LRA-based haptics solutions • Ultra-low-latency boosted driver required to deliver highly responsive and consistent haptic feedback to user • Enabling new user exp
Slide 15: Smart Codecs & Voice Processors
Smart Codecs & Voice Processors Cirrus Logic’s extensive portfolio of audio and voice technology delivers complete product solutions for a variety of applications. Hi-Fi DACs Voice Capture Secure Voice Biometrics Voice Activation Barge-In Ultra-Low-Power DSP Far-Field Voice Customer Software Continu
Slide 16: Headset Codecs
Headset Codecs • Demand for digital headsets and adapters fueled by transition from analog to digital connectivity in both wired and wireless products • Digital connectivity enables new and enhanced user experiences in audio, voice and sensing applications, including continuously adaptive ANC High-P
Slide 17: Voice Biometrics
Voice Biometrics CHECK WEATHER UNLOCK SET TIMERS READ PLAY MUSIC NAVIGATE GET JOKES CHECK SCORES ORDER MONITOR PAY LOCATE BOOK SUMMONS MANAGE …ETC. 17
Slide 18: Security is Critical
Security is Critical ALWAYS-ON VOICE ACTIVATION WITH ROBUST • Enables execution of any virtual assistant command without requiring fingerprint/PIN USER AUTHENTICATION HIGH-SECURITY BIOMETRIC • User passphrase for authenticating FIDO transactions VOICE PASSPHRASE • Allows financial transactions, logi
Slide 19: Positioned for Long-Term Growth
Positioned for Long-Term Growth • Multiple vectors for content and application expansion driving significant growth in SAM • Leveraging mixed-signal expertise to penetrate adjacent technology opportunities • Investment in innovative R&D projects expected to extend market leadership in audio, voice a
Slide 20: Financials
Financials 20
Slide 21: Track Record of Long-Term Revenue Growth
Track Record of Long-Term Revenue Growth 10-YEAR CAGR OF 21% ANNUAL REVENUE FY09-FY19 (M) $1,539 $1,532 Growth fueled by strong demand for audio, voice and other signal processing $1,186 $1,169 products $917 $810 $714 $427 $370 $221 $175 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 21
Slide 22: Financial Highlights
Financial Highlights BALANCE • $606M total cash, up from $483M in the September quarter SHEET • Q3 ending inventory $138M, down from the prior quarter • In FY20 YTD, we have used $70M to repurchase ~1.4M shares at an average price of $48.37 BUYBACK • In FY19, we used $160M to repurchase ~4.0M shares
Slide 23: Strong Cash Generation
Strong Cash Generation CASH GENERATION TRAILING TWELVE MONTH OPERATING CASH FLOW AND CAPEX (M) • Generated $1.2B of operating cash flow over last 5 full fiscal years $303 • Ended Q3 FY20 with $606M cash $259 $256 and investments globally $246 $207 USE OF CASH • Investment in R&D • M&A and share repu
Slide 24: Operating Profit Profile
Operating Profit Profile 30% GAAP Non-GAAP* 28% 25% 25% 22% 22% 20% 19% 19% 15% 15% 14% 10% 10% 9% 8% 5% 3% 2% 0% -2% -5% Q1/FY19 Q2/FY19 Q3/FY19 Q4/FY19 Q1/FY20 Q2/FY20 Q3/FY20 *GAAP to non-GAAP reconciliations available on slide 27 and at https://investor.cirrus.com 24
Slide 25: Financial Results and Outlook
Financial Results and Outlook REVENUE GROSS MARGIN COMBINED R&D / SG&A RESULTS Q3 FY20 $374.7M 52.7% $124.8M (includes $14M in stock-based comp, $6.5M in amortization) REVENUE GROSS MARGIN COMBINED R&D / SG&A GUIDANCE* Q4 FY20 $115 – $121M $250 – $290M 51% – 53% (includes $14M in stock-based comp, $
Slide 26: Quarterly Revenue and EPS
Quarterly Revenue and EPS CIRRUS LOGIC REVENUE Q1 FY19 TO Q4 FY20 (M) CIRRUS LOGIC EPS Q1 FY19 TO Q3 FY20 $1.80 GAAP EPS $450 $1.60 Non-GAAP EPS** $1.55 $400 $389 $375 $1.41 $366 $1.40 $1.27 $350 $324 $1.20 $1.13 $1.08 $300 $270* $1.00 $0.93 $254 $0.91 $250 $240 $238 $0.80 $200 $0.60 $0.49 $150 $0.3
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (unaudited, in thousands, except per share datanot prepared in accordance with GAAP) We use these Non-GAAP financial numbers to assist us in the management of the Company because we believe that this information provides a more consistent and complete understanding of
Slide 28: Cirrus Logic
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