Cirrus Logic(US:CRUS)2025-02-04 21:02Financial Performance - Net sales for the third quarter of fiscal year 2025 decreased by $63.2 million, or 10%, to $555.7 million from $619.0 million in the third quarter of fiscal year 2024[88]. - Net sales for the first nine months of fiscal year 2025 increased by $54.6 million, or 4%, to $1.5 billion from $1.4 billion for the first nine months of fiscal year 2024[89]. - Net income for the third quarter of fiscal year 2025 was 21% of net sales, compared to 23% for the third quarter of fiscal year 2024[87]. - Income before income taxes for Q3 FY2025 was $153.7 million, down from $172.1 million in Q3 FY2024, with an effective tax rate of 24.5% compared to 19.4%[105]. - For the first nine months of FY2025, income before income taxes was $350.3 million, up from $304.3 million in FY2024, with an effective tax rate of 25.7% versus 24.5%[105]. Expenses - Gross margin for the third quarter of fiscal year 2025 was 53.6%, up from 51.3% in the third quarter of fiscal year 2024[93]. - Research and development expense for the third quarter of fiscal year 2025 was $113.0 million, an increase of $0.3 million from $112.7 million in the third quarter of fiscal year 2024[95]. - Selling, general and administrative expense for the third quarter of fiscal year 2025 was $39.0 million, an increase of $1.4 million from $37.6 million in the third quarter of fiscal year 2024[97]. - Research and development expense for the first nine months of fiscal year 2025 was $331.3 million, an increase of $8.2 million from $323.1 million for the first nine months of fiscal year 2024[96]. Cash Flow and Investments - Cash generated from operations for the first nine months of FY2025 was $314.0 million, an increase from $251.1 million in the same period of FY2024[107]. - Net cash used in investing activities was $111.2 million in the first nine months of FY2025, compared to $60.8 million in FY2024, primarily for marketable securities and capital expenditures[108]. - Net cash used in financing activities was $179.1 million in the first nine months of FY2025, mainly for stock repurchases totaling $161.0 million[109]. - Cash flow from operations in FY2025 was impacted by a $57.4 million unfavorable change in working capital, primarily due to increases in accounts receivable and inventory[107]. Customer and Market Information - International sales accounted for approximately 99% of net sales for the third quarters of fiscal years 2025 and 2024[90]. - The largest customer, Apple Inc., represented approximately 91% of total net sales for the third quarter of fiscal year 2025[92]. Financial Facilities and Future Outlook - The company has a $300 million Revolving Credit Facility, which matures on July 8, 2026, and had no outstanding amounts as of December 28, 2024[111]. - Future capital requirements will depend on sales growth, market acceptance, R&D projects, and potential acquisitions, with sufficient cash and credit available for the next 12 months[110]. Taxation - The effective tax rates were adversely affected by provisions in the Tax Cuts and Jobs Act of 2017, impacting R&D expenditure treatment and GILTI inclusions[105]. Risk Management - The company uses forward contracts to manage foreign currency exchange risk, with no material changes in market risk assessments since the last annual report[115].