Cirrus Logic, Inc. · NASDAQ:CRUS
Cirrus Logic — Investor Presentation (May 2020)
27 slides from Cirrus Logic's investor presentation, May 4, 2020
Slide 1: Investor Relations Update
Investor Relations Update As of May 4, 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 FY20 revenue: $1.28B Haptic and sensing solutions and application expertise Headquarte
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 the top 8 Supplier to 2 of the top 3 Supplier to top 2 smart smartphone OEMs truly wireless headset home OEMs brands Company expects to expand content with new and existing customers in FY21 Top smartphone OEMs based 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 $1B Total Mixed-Signal Total TotalMixed-Signal Mixed Signal Market* Market* Market* Haptic Drivers & “Closed-Loop Controllers” $30B Audio & Voice: $45B Mobile, Accessories & Home $45B $1B
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 • Increasing demand fo
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
Product Overview Yijiiijisiess... bpp trea gs
Slide 13: Audio Amplifiers
Audio Amplifiers • Delivering a louder and higher quality audio experience from micro speakers • 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 • Demand exp
Slide 14: Haptic & Sensing Solutions
Haptic & Sensing Solutions • Waterproofing and advanced industrial design trends are driving customers to replace mechanical buttons with sensor and LRA-based haptic and sensing solutions • Ultra-low-latency boosted driver required to deliver highly responsive and consistent haptic feedback to user
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: Voice-Enabled Commands
Voice-Enabled Commands • Multi-mic noise reduction: algorithms enhance speech recognition ALWAYS-ON SMART and enable clear voice calling CODECS WITH VOICE • Acoustic echo cancellation: enables full-duplex voice calling and speech command barge-in during loud playback DETECTION • Low-power voice wake
Slide 17: 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 • Dema
Slide 18: 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 19: Financials
Financials 19
Slide 20: Track Record of Long-Term Revenue Growth
Track Record of Long-Term Revenue Growth 10-YEAR CAGR OF 19% ANNUAL REVENUE FY10-FY20 (M) Growth fueled by strong demand for audio, voice and $1,539 $1,532 other signal processing products $1,281 $1,169 $1,186 $917 $810 $714 $427 $370 $221 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 20
Slide 21: Financial Highlights
Financial Highlights BALANCE • $598M total cash, down from $606M in the December quarter SHEET • Q4 ending inventory $147M, up from the prior quarter • In Q4, we utilized $50M to repurchase 683,217 shares at an average price of $73.18 BUYBACK • In FY20, we used $120M to repurchase ~2M shares at an a
Slide 22: Strong Cash Generation
Strong Cash Generation CASH GENERATION TRAILING TWELVE MONTH OPERATING CASH FLOW AND CAPEX (M) • Generated $1.3B of operating cash flow over last 5 full fiscal years $296 • Ended Q4 FY20 with $598M cash $259 $256 $246 and investments globally $207 USE OF CASH • Investment in R&D • M&A and share repu
Slide 23: Operating Profit Profile
Operating Profit Profile 30% GAAP Non-GAAP* 28% 25% 25% 22% 22% 20% 19% 19% 17% 15% 15% 14% 10% 10% 9% 5% 4% 3% 2% 0% Q2/FY19 Q3/FY19 Q4/FY19 Q1/FY20 Q2/FY20 Q3/FY20 Q4/FY20 *GAAP to non-GAAP reconciliations available on slide 26 and at https://investor.cirrus.com 23
Slide 24: Financial Results and Outlook
Financial Results and Outlook REVENUE GROSS MARGIN COMBINED R&D / SG&A RESULTS Q4 FY20 $279.3M 52.4% $136.2M (includes $13.8M in stock-based comp, $3M in amortization) REVENUE GROSS MARGIN COMBINED R&D / SG&A GUIDANCE* Q1 FY21 $111 – $117M $200 – $250M 51% – 53% (includes $14M in stock-based comp, $
Slide 25: Quarterly Revenue and EPS
Quarterly Revenue and EPS CIRRUS LOGIC REVENUE Q2 FY19 TO Q1 FY21 (M) CIRRUS LOGIC EPS Q2 FY19 TO Q4 FY20 $450 $1.80 GAAP EPS Non-GAAP EPS** $400 $389 $375 $1.60 $1.55 $366 $1.41 $350 $1.40 $324 $1.27 $300 $279 $1.20 $1.13 $1.08 $250 $240 $238 $225* $1.00 $0.93 $0.91 $200 $0.80 $0.68 $150 $0.60 $0.4
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (unaudited, in thousands, except per share data, not 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
Slide 27: GIKKUS LOGI Gey
GIKKUS LOGI Gey