A：Cirrus Logic announced revenue of $448.5 million for the March quarter of fiscal year 2026, above the midpoint of their guidance range. For the full fiscal year, the revenue was $2 billion, an increase of 5% from the prior year.

A：The three pillars of Cirrus Logic's long-term strategy for growth are maintaining a strong leadership position in their core flagship smartphone audio business, expanding the range and value of high-performance mixed-signal content for smartphones and similar products, and leveraging their expertise and intellectual property in both audio and high-performance mixed-signal to grow and broaden their business in new markets.

A：Cirrus Logic continued to see robust demand for their latest generation custom boost amplifiers and 22nm smart codecs in their flagship smartphone audio business. These products are designed to deliver system-level improvements and exceptional performance, which is expected to result in extended life cycles and significant long-term visibility and sustained revenue contribution.

A：Customer demand for Cirrus Logic's camera controllers remained strong, and engagement with their roadmap for future camera controllers was equally robust. These products play a central part in the smartphone experience and the company is actively designing the next generation of components and technologies to bring advanced functionality and differentiation to future smartphones' camera performance.

A：The collaboration with their largest customer on a solution to support Face ID implementations in future products signifies an exciting new application space for Cirrus Logic. This reflects a decade-long engineering partnership based on exceptional execution, continuous innovation, and trust. The partnership is in the design phase of their first product in this area, a smart power IC for 3D sensing.

A：Cirrus Logic expects strong year-over-year revenue growth in their PC business in fiscal year 2026, driven by share gains across all PC segments. They introduced new amplifiers and codecs for a wider range of platforms including mainstream and AI-enabled PCs. The company believes that voice will be a critical enabler for genetic interaction across different types of edge devices, including PCs. Design momentum across their BC portfolio is robust, and the expected increased adoption of SDCA and higher content per device will contribute to further strong growth in their PC business.

A：Beyond Pcs has made meaningful progress expanding its general market product portfolio, introduced multiple new product families targeting various end markets, ramped production of ultra high performance audio Adcs, Dacs, and codecs for professional audio and automotive applications, and launched new series of industrial imaging components. They have also advanced their technology and process collaborations with major customers and are planning to manufacture products for the first time at a Global Foundries facility in Malta, New York.

A：Fiscal year 2026 revenue was $448.5 million, which was above the midpoint of the guidance range. On a year-over-year basis, revenue increased by 21%, driven by strong demand for components in smartphones. On a sequential basis, revenue decreased by 23% due to lower smartphone unit volumes.

A：The key driver for the increase in non GAAP gross profit for fiscal year 2026 was the more favorable product mix, resulting in a year-over-year increase in gross margin from 52.4% to 52.8%.

A：Non GAAP operating expenses for the fourth quarter were $126.1 million, down $6.9 million from the previous quarter primarily due to lower compensation expenses. On a year-over-year basis, operating expenses increased by $6.1 million, mostly due to higher employee-related expenses, partially offset by a reduction in product development costs.

A：The non GAAP tax rate for fiscal year 2026 was 0%, resulting in a non GAAP effective tax rate of 0%. The non GAAP net income for the fiscal year was $489.3 million, resulting in record earnings per share of $9.26.

A：For Q1 fiscal year 2027, the company expects revenue in the range of $430 to $490 million, up 3% sequentially and 13% year over year. The expected non GAAP gross margin is between 51% and 53%.

A：The company's balance sheet remains strong, with approximately $1.2 billion in investments and cash from operations of $151.4 million. They ended the year with no debt and inventory balance up from $195 million to $240.9 million. For the fiscal year, cash flow from operations was $650.6 million, and the company repurchased $70 million worth of shares.

A：The company projects continued strong growth in the PC market for fiscal 27, implying a strong momentum in customer base and performance across various vendors.

A：The indicators of momentum in the PC market include the number of designs shifting from a legacy audio interface to the new one, and the revenue growth from SDC (audio and voice interface) related designs.

A：The transition from HD to SDC in audio interfaces has significantly affected the company's revenue, with SDC revenue tripling in fiscal 26 to become almost 60% of total PC revenue, and an expectation to reach close to 80% in fiscal 27.

A：The company expects that more than half of its revenue in the future will likely come from mainstream tier devices, indicating a significant focus and growth strategy in this area.

A：The company can confirm that the new Smart Power ID is a highly programmable device that will bring new functionality and performance to an existing subsystem and is a result of their investment in advanced node mixed signal technology. However, they cannot share specifics due to the product not yet being announced.

A：The company is seeing an area of focus in the camera controller market with the design of next-generation components and a rich road map of intellectual property (IP) due to the differential attach rate across different Skus. The impact is more linear than a big step function, but the company believes it's an area for continued growth and value delivery to customers.

A：Despite industry-wide memory shortages and forecasts for PC units being revised down, the company feels confident in maintaining strong growth in the PC market in fiscal year 27, even in an environment with some pullback, due to exiting fiscal 26 with great momentum and having products in design with customers.

A：The company believes that while there might be a pullback in the PC market, they have a strong position due to serving the largest PC Oems and being skewed towards the upper tiers of their devices which are potentially better insulated from market fluctuations.

A：The utilization of the 12nm and 14nm process at New York's fab could benefit products like amplifiers, drivers, and power conversion and control chips, which are currently the focus of the collaboration with GlobalFoundries. There are also potential opportunities around the power space that could be fabricated in the US using this process.

A：The collaboration with GlobalFoundries has been beneficial for both companies, focusing on process technologies for high voltage products such as amplifiers and power conversion and control chips. The current collaboration aims to deliver the next generation of process technologies for high voltage products, enhancing performance, power efficiency, and cost-effectiveness for customers.

A：The company acknowledges the potential for more content and opportunities with the new power product, similar to past successes in the capital controller space. While not providing specific details, they emphasize the importance of initial flawless execution and look forward to delivering more value and potentially iterating and expanding from there.

A：Investors should look out for the long-term significance of the new products announced, which are expected to be solid revenue contributors with high margins. Although no single product will significantly impact results in one year, over time, these products leverage advanced IP and provide a substantial addition to the business.

A：The company plans to continue investing in its general market product portfolio to leverage existing advanced IP for economic investments and address profitable segments. They expect the business segment to grow and remain committed to broadening the portfolio, with products receiving positive feedback from customers.