Cirrus Logic Reports 6% Net Sales Increase to $1.90 Billion for Fiscal Year Ending March 2025

Cirrus Logic, Inc. reported a net sales increase of 6% for the fiscal year ending March 29, 2025, reaching $1.90 billion, compared to $1.79 billion in the previous fiscal year. The growth was driven by a 5% rise in audio product sales, totaling $1.14 billion, attributed to the launch of new-generation products and increased smartphone volumes. The high-performance mixed-signal (HPMS) product line also saw an 8% increase in sales, amounting to $758.9 million, primarily due to higher content in smartphones. The company's gross margin improved to 52.5%, up from 51.2% in fiscal 2024, reflecting a favorable product mix despite higher supply chain costs.

In terms of profitability, Cirrus Logic achieved a net income of $331.5 million, which included a tax provision of $113.4 million, resulting in an effective tax rate of 25.5%. This marked an increase from the previous year's net income of $274.6 million. The company’s employee headcount rose to 1,660, up from 1,625 in the prior year, indicating a commitment to expanding its workforce to support growth initiatives.

Strategically, Cirrus Logic has focused on enhancing its product offerings and expanding into new markets. The company began shipping its latest-generation boosted amplifier and smart codec, while also making strides in the laptop market, securing its first high-volume design win with a new PC codec. Additionally, the company is leveraging its audio and HPMS expertise to develop new components for various applications, which is expected to drive future growth.

Operationally, Cirrus Logic's international sales accounted for approximately 99% of total net sales, with significant contributions from China, which generated $1.13 billion in revenue. The company continues to rely heavily on a limited number of customers, with Apple Inc. representing about 89% of total net sales. This concentration poses risks, as any significant changes in orders from key customers could impact revenue stability. The company has also entered into a Capacity Reservation Agreement with GlobalFoundries to secure wafer supply through 2026, which is expected to mitigate supply chain disruptions.

Looking ahead, Cirrus Logic anticipates continued growth driven by its strategic initiatives and product innovations. The company remains focused on expanding its market presence and enhancing its product portfolio to meet evolving customer demands. However, it acknowledges potential risks related to market conditions, customer concentration, and supply chain dependencies that could affect its financial performance in the future.