Cirrus Logic Reports 13% Revenue Growth to $459.7 Million in Q1 FY 2027

Cirrus Logic, Inc. reported a significant increase in financial performance for the first quarter of fiscal year 2027, with net sales reaching $459.7 million, a 13% rise from $407.3 million in the same period last year. The company's gross profit also saw an increase, totaling $241.9 million, compared to $214.0 million in the prior year. Net income for the quarter was $76.9 million, up from $60.7 million, resulting in basic earnings per share of $1.52, compared to $1.17 in the previous year. The increase in revenue was primarily driven by higher sales of components for smartphones, particularly in the high-performance mixed-signal (HPMS) product line, which saw a $43.5 million increase.

In terms of operational metrics, Cirrus Logic's customer base remained concentrated, with its ten largest customers accounting for approximately 96% of net sales, including Apple Inc., which represented about 90% of total sales. The company reported that international sales constituted around 99% of net sales, indicating a strong global presence. Additionally, the company’s inventory levels increased to $262.7 million from $240.9 million, reflecting a strategic decision to prepare for anticipated demand.

Cirrus Logic also made notable strategic developments during the quarter, including the signing of a new Capacity Reservation and Wafer Supply Agreement with GlobalFoundries, which secures wafer capacity and pricing for 2027 and 2028. This agreement is expected to support the company's growth in various markets, including automotive and industrial applications. The company is also advancing its product portfolio with the development of a next-generation camera controller and smart power integrated circuits for 3D sensing applications.

Despite the positive financial results, Cirrus Logic experienced a decline in cash generated from operations, which fell to $64.1 million from $116.1 million in the previous year. This decrease was attributed to a $42 million unfavorable change in working capital, primarily due to increases in accounts receivable and inventory. The company reported net cash used in investing activities of $19.4 million, up from $6.2 million, largely due to capital expenditures and technology investments. Looking ahead, Cirrus Logic remains optimistic about its growth prospects, particularly in the PC market and other emerging applications, while maintaining a strong liquidity position with no outstanding amounts under its $350 million revolving credit facility.