Cirrus Logic, Inc. (NASDAQ:CRUS) Q3 2023 Earnings Call Transcript

Venk Nathamuni: Yes, so the gross margin, as we reported in this quarter, we came in pretty close to the midpoint of our guidance range. Probably, 30 basis points higher. The way to think about our gross margin long term is we want to obviously optimize between revenue growth and profitability. Over the long haul, we certainly want to stick with the 49 to 51. Over time, we will as the mix of the product changes between how much we ship into smartphones versus what we ship into the general market, we’ll have some inter quarter variations in gross margin. But the way to think about our long-term model is to be in the 49% to 51% range, such that we can continue to grow the top line at a very robust pace and maintain profitability at the current levels. The operating margin is what we hope to expand over time as we improve R&D efficiencies and control discretionary spending and so forth. But the gross margin is where we want to be.

Operator: I would now like to turn the call back over to Chelsea Heffernan.

Chelsea Heffernan: Thank you, operator. With that, we will end the Q&A session. And I’ll turn the call to John for final remarks.

John Forsyth: Thank you, Chelsea. In summary, in the December quarter, Cirrus Logic delivered record revenue with strong execution across our three areas of strategic focus. Number one, continuing our leadership in smartphone audio. Number two, broadening sales of audio components and key profitable applications beyond smartphones. And thirdly, applying our mix signal expertise to expand into new adjacent high performance mix signal markets. We’re more excited than ever about the opportunities that we see in front of us. And we’d like to thank you all for your continued interest in Cirrus Logic. Before we close, I’d also like to note that we will be participating in the Susquehanna Conference on March the second in New York.

Please check our investor website for the details. And if you have any questions that were not addressed on this call, you can submit them to us via the Ask the CEO section of our investor website. I’d like to thank everyone for participating today. Goodbye.

Operator: This concludes today’s call. Thank you for attending. You may now disconnect.