Cirrus Logic(CRUS) - 2024 Q4 - Annual Report

Financial Performance - Fiscal year 2024 net sales decreased by 5.7% to $1.79 billion from$1.90 billion in fiscal year 2023, with audio product sales down 7.5% to $1.08 billion and HPMS product sales down 2.8$705 million [199][205]. - The company achieved a net income of $274.6 million in fiscal year 2024, which included an income tax provision of$89.4 million [200]. - Net sales for the fiscal year ended March 30, 2024, were $1,788.9 million, down 5.7$1,897.6 million in the prior year [258]. - Gross profit for the same period was $916.1 million, resulting in a gross margin of approximately 51.2$274.6 million, an increase of 55.5% from $176.7 million in the prior year [258]. - Basic earnings per share increased to$5.06, up from $3.18 in the previous year [258]. - The effective tax rate for fiscal year 2024 was 24.6$426.5 million, reflecting a decrease of 7.0% from fiscal year 2023 [210]. - Selling, general and administrative expenses for fiscal year 2024 decreased by 5.9% to $144.2 million compared to fiscal year 2023 [212]. - The company recorded restructuring costs of$10.6 million in fiscal year 2023 related to impairment of lease assets and workforce reduction actions [214]. - The company reported a stock-based compensation expense of $89,271,000 in fiscal year 2024, compared to$81,641,000 in fiscal year 2023, an increase of 9.9% [264]. - Total rent expense under operating leases was approximately $23.6 million for fiscal year 2024, down from$24.4 million in 2023 and $19.9 million in 2022 [369]. Cash Flow and Investments - Cash flow from operations in fiscal year 2024 was$421.7 million, an increase from $339.6 million in fiscal year 2023, driven by an$18.4 million favorable change in working capital [223]. - The company used $163.0 million in cash for investing activities in fiscal year 2024, primarily for$124.7 million in net purchases of marketable securities and $38.3 million in capital expenditures and technology investments [224]. - Net cash provided by operating activities increased to$421,674,000 in fiscal year 2024, up from $339,568,000 in fiscal year 2023, representing a 24.2$185,995,000 in fiscal year 2024, compared to $191,382,000 in fiscal year 2023, a decrease of 2.0$2,231.6 million, compared to $2,064.0 million a year earlier, reflecting a growth of 8.1$1,817.0 million, up from $1,658.3 million, indicating a growth of 9.6$227.2 million, a decrease from $233.5 million in the previous year [255]. - The goodwill balance remained stable at$435.9 million as of March 30, 2024, unchanged from the previous year [329]. Market and Sales - International sales accounted for approximately 99% of net sales in fiscal year 2024, consistent with previous years [207]. - The company faced challenges with the new HPMS product not launching as planned in fall 2023, impacting overall sales performance [198]. - Revenue from China was $1,114.3 million, a decline of 9.4$1,230.6 million in fiscal year 2023 [341]. - The Company’s ten largest end customers accounted for approximately 95% of sales in fiscal year 2024, with Apple Inc. alone representing about 87% of total sales [292]. Taxation and Compliance - The company recorded an income tax expense of $89.4 million in fiscal year 2024 on pre-tax income of$363.9 million, resulting in an effective tax rate of 24.6% [219]. - The company expects the OECD's Pillar Two legislation, effective in fiscal year 2025, to have no material impact on its consolidated financial statements [221]. - The Company reported gross unrecognized tax benefits of $32.1 million as of March 30, 2024, with a decrease of$0.8 million during fiscal year 2024 due to the expiration of the statute of limitations [389]. Future Commitments and Liabilities - Future operating lease commitments total $200.5 million, with the largest commitments in 2025 at$21.0 million [346]. - The Company has a remaining purchase obligation of approximately $840 million of wafers from GlobalFoundries under the Capacity Reservation Agreement as of March 30, 2024 [372]. - The company expects restructuring-related liabilities of$1.6 million to be substantially paid out in cash during fiscal year 2025 [348].