On Tuesday, 12 August 2025, Cirrus Logic (NASDAQ:CRUS) presented at the KeyBanc Capital Markets Technology Leadership Forum. The conference call, led by John Vin, highlighted Cirrus Logic’s strategic diversification beyond the mobile market. While the company is expanding into PCs and automotive sectors, it faces challenges with customer concentration and the evolving demands of AI smartphones. Key Takeaways: \n\n- Cirrus Logic is diversifying beyond smartphones, targeting PC and automotive markets.\n- The company is maintaining gross margins above its long-term target of 49-51%.\n- A partnership with CommPal aims to enhance user experience and address systemic challenges.\n- Cirrus Logic is actively exploring mergers and acquisitions to accelerate growth.\n- The company is pulling back on Android investments, focusing on high-growth markets.\n\nFinancial Results:\n\n- Gross Margin: Cirrus Logic’s gross margins have consistently exceeded the 49-51% target due to a favorable product mix and supply chain efficiencies.\n- Operating Margin: Operating margins remain in the mid-20s, driven by operational discipline and strategic investments.\n- PC Market: The company has generated tens of millions in the PC notebook market this year, with plans to double this figure next year.\n\nOperational Updates:\n\n- Camera Controllers: Cirrus Logic is shipping three generations of camera controllers, with the latest offering a sixfold increase in processing capability.\n- HPMS Expansion: The company is expanding its high-performance mixed-signal (HPMS) content to include haptics, power conversion, and control, especially for AI applications.\n- Android Market: Investments in Android are being reduced due to limited growth potential, with a focus on more promising markets.\n- Automotive Market: Cirrus Logic is introducing timing parts into the automotive sector, seeing potential in enhancing the in-cabin experience.\n\nFuture Outlook:\n\n- AI Smartphone Opportunity: The company is well-positioned to meet the increasing power management demands of AI smartphones.\n- PC Market Growth: Cirrus Logic targets the mainstream PC notebook market, excluding the low end, with an addressable market of approximately $1 billion.\n- M&A Strategy: The company is actively pursuing mergers and acquisitions to leverage intellectual property and achieve growth synergies.\n- Diversification: Efforts are underway to reduce reliance on the mobile market by focusing on PCs and automotive sectors.\n\nQ&A Highlights:\n\n- Smartphone Demand: Pull-forward demand in smartphones impacted the fiscal year’s latter half.\n- Camera Content: An increase in camera content is affecting revenue seasonality.\n- PC Market Success: Cirrus Logic displaced a long-standing competitor by offering lower total cost and superior audio experiences.\n- CommPal Partnership: This collaboration addresses challenges related to audio distortion and mechanical rattle.\n- Android Strategy: While sales in the Android market continue, R&D investments are directed towards more lucrative markets.\n\nIn conclusion, Cirrus Logic’s strategic diversification and focus on emerging markets position it well for future growth. For more details, refer to the full transcript below.

Cirrus Logic at KeyBanc Forum: Strategic Diversification Insights

Cirrus Logic presented at the KeyBanc Capital Markets Technology Leadership Forum on August 12, 2025, outlining its strategic shift from mobile to PC and automotive markets. The company reported sustained gross margins above 49-51% and mid-20s operating margins, driven by product mix and supply chain efficiencies. It highlighted a partnership with CommPal to improve audio performance and reduce distortion and mechanical rattle, while reducing R&D investments in Android due to limited growth. Cirrus Logic is expanding its high-performance mixed-signal (HPMS) technology into haptics, power conversion, and AI-related applications. The company is actively pursuing mergers and acquisitions to accelerate growth and diversify beyond mobile. It aims to double its PC notebook market revenue from tens of millions to over $200 million, targeting a $1 billion addressable market in mainstream notebooks. Additionally, Cirrus Logic is introducing timing parts into the automotive sector to enhance in-cabin experiences.