Earnings Call Transcript - CRUS Q1 2022

Operator, Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic First Quarter Fiscal Year 2022 Financial Results Q&A Session. At this time, all participants are in a listen-only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing up will be provided at that time. As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference call over to Mr. Thurman Case, Chief Financial Officer. Mr. Case, you may begin.

Thurman Case, CFO

Thank you, and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's Chief Executive Officer; and Chelsea Heffernan, our Director of Investor Relations. Today, we announced our financial results for the first quarter of fiscal year 2022 at approximately 4:00 p.m. Eastern. The shareholder letter discussing our financial results, the earnings press release, including a reconciliation of non-GAAP financial information to the most directly comparable GAAP information, along with the webcast of this Q&A session are all available at the company's Investor Relations website at investor.cirrus.com. This call will feature questions from the analysts covering our company as well as questions submitted to us via email at investor.cirrus.com. Please note that during this session, we may make projections and other forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from projections. By providing this information, the company expressly disclaims any obligation to update or revise any projections or forward-looking statements, whether as a result of new developments or otherwise. Please refer to the press release and shareholder letter issued today, which are available on the Cirrus Logic website and the latest Form 10-K as well as other corporate filings made with the Securities and Exchange Commission, for additional discussion of risk factors that could cause actual results to differ materially from current expectations. Now I'd like to turn the call over to John.

John Forsyth, CEO

Thank you, Thurman. Cirrus Logic delivered Q1 FY '22 revenue of $277.3 million, up 14% year-on-year, driven by higher smartphone volumes in Android, content gains in smartphones and an uptick in sales in laptops. During the quarter, we made great progress in both accelerating our sales momentum and executing on several of the strategic initiatives that we believe will position the company for sustained growth in the longer term. We increased penetration of our Android customers, ramped shipments for the leading laptop OEM, supported the adoption of new content in anticipation of product launches in the latter half of the year and advanced the development of a number of exciting new devices that are expected to fuel future revenue growth. We also made very positive headway in the high-performance mixed-signal category. Within this product line, our largest single area of both investment and growth opportunity remains power. The company's first-generation power conversion control IC, which we are currently ramping, brings new technology and system-level capabilities to smartphones and adds significant diversity to our product and intellectual property mix. To further broaden our product portfolio in this space, we recently acquired Lion Semiconductor. Doing so extends our footprint into the rapidly growing wired and wireless fast charging market and brings considerable long-term growth potential. We also believe the addition of battery-centric charger products is highly complementary to our power conversion and control investments. With Lion components shipping in volume in both flagship and mid-tier Android smartphones, the acquisition aligns well with our current target end markets while bringing meaningful opportunities for further diversification. With our continued leadership in audio, our innovations in high-performance mixed-signal areas such as haptics, camera controllers, and power and our continued investment in building strong and enduring customer relationships, we believe we are well positioned to achieve sustained growth in the coming years. In addition to this progress in executing our growth strategy, I would also like to highlight that the company recently published its first environmental, social, and governance report, which can be found on our ESG website. In doing so, we've formalized our ESG strategy, setting out both short- and long-term commitments in the areas of sustainability, diversity, equity, and governance that matter most to our customers, our employees, our stockholders, and the communities in which we live and work. We also put in place structures for accountability to monitor and report on our progress in these areas in the coming years. And to continue the theme of energy efficiency that unites so many of our products, we also reported on the company's energy usage and emissions for the first time, establishing a baseline carbon footprint to help identify opportunities for improvements and to set science-based emissions reduction goals for the future. Before we begin the Q&A, I would also like to note that while we understand there is intense interest in our largest customer, in accordance with our policy, we do not discuss specifics about our business relationship. Operator, we're now ready to take questions.

Operator, Operator

First question from Tore Svanberg of Stifel. Your line is now open.

Tore Svanberg, Analyst

Good. Thank you and congrats on the results, especially that strong guidance. John, could you just talk a little bit more about your ambitions in power? I know initially when you sort of got into the space, I think you were working on a completely new function or a new application. But now obviously, you're extending your reach into charger technologies. So help us understand a little bit the long-term strategy in power, how ambitious you are going to be in perhaps going after other subsectors of the power management space. Thank you.

John Forsyth, CEO

Certainly, Tore, and thank you for the opportunity. As I mentioned earlier, we have three main growth areas. One is to strengthen our position in smartphone audio, another is to expand our audio reach beyond mobile devices, and the third is to increase volume and revenue in mixed-signal areas, initially focusing on smartphones. Our first targets in these mixed-signal areas were haptics, closed-loop controllers for cameras, and more recently, power conversion and control products. We believe our work is highly differentiated, and while we cannot disclose much due to the custom nature of our silicon, we have indicated it's related to power conversion control and is closely associated with battery technology. Additionally, we aim to expand our offerings in the power sector and broaden our market reach to capture more opportunities. Lion plays a critical role in this strategy by introducing advanced technologies that meet the growing demand for fast charging, as well as offering potential for application in markets beyond smartphones in the future.

Tore Svanberg, Analyst

Great. Thank you. And as my follow-up, this is the first time I've heard you guys be as excited about the notebook market. I mean I know you've had the wins in the past, but it sounds like you're starting to hit a bit of a bigger stride here. So if we think about the content opportunity in notebook, I know it's probably a little bit less perhaps than what it is in the smartphone. But beyond amps and haptics, are you starting to get design wins in other of your products as well in the notebook market?

John Forsyth, CEO

Yes, we are indeed focused on that. The laptop market has been quite strong over the past 18 months due to the pandemic. Much of the growth we are experiencing is new for us, which contributes to our excitement as it spans several products. We've discussed the transition from mechanical trackpads to haptic devices, but our laptop product sales also include audio components. Currently, we are integrating or shipping haptic drivers, codecs, and audio amplifiers into laptops. Looking back just over a year, we had one of the top five laptop manufacturers as our customer. Now, we are either shipping to or have designed in four out of the top five, and we have recorded substantial growth so far, with much more on the horizon. This is particularly thrilling for us. I've mentioned before that we see a strong convergence between the laptop segment and the smartphone segment, which aligns well with our product portfolio.

Tore Svanberg, Analyst

Great, thanks. Just one last quick one for Thurman. Thurman, any details you could share with us on the supply commitment agreement with GlobalFoundries? Any numbers that you can share with us?

Thurman Case, CFO

We're not releasing the numbers at this time. We discussed the prepaid and reservation fee, which we can elaborate on regarding pricing in certain areas, but we need to be cautious due to competitive sensitivities.

John Forsyth, CEO

What I want to emphasize, Tore, is that this agreement significantly increases our wafer supply and allocation for the upcoming year, especially during a time of high demand and challenges in meeting it. This increase is notable compared to this year, which has already shown meaningful growth over last year. It really supports our ongoing momentum and aligns with the strategic growth initiatives we've discussed.

Tore Svanberg, Analyst

Sounds good. Congrats, again.

John Forsyth, CEO

Thank you.

Operator, Operator

Next question from the line of Ruben Roy of WestPark Capital. Your line is open.

Ruben Roy, Analyst

Thank you for taking my question. John, I wanted to follow up on the laptop discussion you had with Tore. I want to delve deeper into it. In the shareholder letter, you mentioned strong design momentum and getting into more Tier one OEMs. You also discussed increasing operating expenses due to the expansion of your power-related products team and the Lion acquisition. It seems like there's an urgent need for new products and expansion into laptops. Looking ahead 12 to 24 months, will the laptop market be a primary focus for your power products, or will it be a mix with smartphones?

John Forsyth, CEO

That's a great question. So far, we've mainly discussed the laptop opportunity in relation to our audio and haptics products. However, the Lion acquisition and its accompanying technologies, particularly those that enable fast charging, are definitely relevant and appealing in the laptop market as well. Currently, the main focus for Lion's products has been the smartphone market, partly because the team was relatively small. We are eager to invest in the power sector to scale up and meet the demand for fast charging solutions that Lion experiences and that we anticipate for laptops too. Initially, most of the revenue from power will come from smartphones, but I see significant potential in the laptop segment for charging solutions as well. The idea of a laptop that charges quickly is very attractive and easy for consumers to understand. Over time, this will position us to offer a strong range of audio, haptics, and power solutions targeting the laptop market, helping us continue to grow.

Ruben Roy, Analyst

Okay, thanks for that. And as a quick follow-up, just on Lion. I don't know too much about the company, but it seems like most of their revenues that you guys are expecting kind of over the next year coming from the Android smartphone market. Is that correct, number one? And number two, can you give us an idea of what the partial quarter of revenue contribution will be for the September quarter? Thanks.

John Forsyth, CEO

First of all, yes, you're right. The revenue is all driven by Android devices there. And that's going to be the case to begin with with the Lion technologies. We haven't broken that out by quarter, but what we have said is that $60 million would be the rough contribution over the remainder of the fiscal year between deal closure and the end of the fiscal year, deal closed on July 20. So, you've got a couple of months of the present quarter and then the back half of the fiscal year to cover that $60 million. From the point of seasonality, typically, Lion's largest quarters are going to be the December and the March quarters, just given the nature of the customers that they're selling to. So you should be able to triangulate from that to something that's in the right ballpark.

Ruben Roy, Analyst

Right, got it. Thanks, John.

John Forsyth, CEO

Thank you.

Operator, Operator

Next question from the line of Blayne Curtis of Barclays. Your line is open.

Blayne Curtis, Analyst

Hi, guys. Thank you for taking my question. This is Tom O'Malley on for Blayne Curtis. Thurman, in the release that you guys put out, you kind of talked about a gross margin trajectory into fiscal year '23 that's below your long-term rate. Is that related to the new agreement with GlobalFoundries? Or can you talk about what's driving that gross margin profile down in the fiscal 23rd year?

Thurman Case, CFO

We mentioned in our letter that we are experiencing supply constraints and rising prices, and we have been discussing this for some time. As we enter fiscal year '22, which marks the start of the year for us, we expect our associated costs to increase. This isn't limited to just one supplier; it's a widespread issue with multiple complexities involved. We wanted to highlight that our long-term model has been around 50%, a point we've reiterated for quite a while, but this situation could bring us below that level. Nonetheless, we will continue to implement strategies to maximize our margins, as we have always done. That summarizes our current position.

Blayne Curtis, Analyst

Thanks. And then, John, not to beat a dead horse, but helpful on the $60 million that we saw before, but maybe that's just Thurman as well. Can you help us understand the cost profile? Obviously, a pretty significant step up into the September quarter. I would expect with the addition of the new business, you see some ramp up there as well in December and March. Can you help us kind of frame what the cost increases may look like from an OpEx perspective for the rest of the year due to Lion?

John Forsyth, CEO

Yes. The Lion team consists of about 35 members, and we are seeing a substantial increase in revenue from their side. Given the opportunities available, we have decided to expand our R&D in the power sector and have experienced a strong hiring phase alongside the Lion acquisition. Recently, we've brought on nearly 60 engineers focused on power and charging to support this initiative, which we are very enthusiastic about. This is primarily what is driving the increase in costs reflected in our guidance. I'll let Thurman provide additional details.

Thurman Case, CFO

Yes. And to note on that, I mean $3.5 million of that was nonrecurring additional costs. So that's not a way to look at the run rate. You could take the guidance that we've shown and pull that out. We would expect, as we see a full quarter of these expenses, we should see a step up next quarter in overall OpEx and through the slight increases, but that's really what the primary of what's driving it is the increase in headcount and the costs associated with it.

Blayne Curtis, Analyst

Thanks for the tour, guys.

Thurman Case, CFO

And we continue to invest beyond this. So the year is not over, and we'll continue to invest in product development.

Operator, Operator

Thank you. And next question from the line of Ananda Barowa of New Capital. Your line is open.

Ananda Barowa, Analyst

Good afternoon, guys. Thanks for taking the question. I apologize. I jumped on a few minutes after the call start. I was in another call. So this has actually been asked already. But is there an opportunity or can you frame the opportunity, potential opportunity for closed-loop controller technology in the Android space going forward or at some point in the future?

John Forsyth, CEO

You know, our initial opportunity around that has been in the custom silicon space, as you know. We continue to see plenty of opportunity to enhance that and grow the feature set and grow value in that part of our business over time. And at this point, that's the major focus for us. And maybe in time, there are opportunities outside of that in the general market. But right now, we're just concentrating on the biggest opportunities in that space in front of us, and they're very much in the custom silicon today.

Ananda Barowa, Analyst

That's really helpful. But does that also mean that nothing would prevent you in the future from entering the Android space?

John Forsyth, CEO

I wouldn't say we have no choices to make because we always face tough decisions regarding which opportunities to pursue based on our R&D resources. However, we are very excited about the direction we are taking with that particular product. It's something the team is very proud to be part of, as it enables a compelling camera experience. We hope to see it grow in value over time and become as significant in our customers' marketing and promotion as it has been so far, which would help drive our revenue and success.

Ananda Barowa, Analyst

That's really helpful context. I appreciate that. And I guess just a quick follow-up is with regards to the guidance. And again, I apologize if this was addressed before I jumped on. But could you just talk about what the drivers, the incremental drivers of the guidance are? It's a really nice guide up. So I would just love to get sort of the order of magnitude contributors to that. Thanks.

John Forsyth, CEO

Yes. The guidance reflects our entry into typically the strongest quarters of the year, with a significant ramp-up of new content, particularly in our power conversion and control integrated circuits. Additionally, as we move into the second cycle of our closed-loop controllers for cameras, we're likely to see increased volume across more models. This all contributes to a substantial impact in that area. Moreover, as we've indicated, we're experiencing positive revenue momentum in both Android and the laptop segment. Android sales have significantly improved compared to last year, although last year was not particularly strong overall for Android. Even when compared to the previous fiscal year, the quarter we've just reported shows about a 30% increase in Android performance. Therefore, Android continues to show solid momentum, which is also considered in our guidance for the upcoming quarter.

Ananda Barowa, Analyst

That's really helpful. I really appreciate it. Thanks a lot.

Operator, Operator

Next question from the line of Matt Ramsay of Cowen. Your line is open.

Matt Ramsay, Analyst

Yes. Thank you. Good afternoon, everyone. John, I apologize, there's a bunch of calls going on tonight. So if this has already been asked, I apologize. I was pleased to see that you guys did the Lion semi acquisition. I wonder if yourself or Thurman might talk a little bit about the valuation that you were able to acquire the company for. I get the thesis around expanding IP and products that you can potentially leverage with your customers. But I was surprised anyone could buy anything for three times revenue in semis these days. So it'd be interesting to hear your perspectives on how that process went and the really attractive valuation you were able to buy the company for. Thanks.

John Forsyth, CEO

Thank you, Matt. We believe the valuation is very strong compared to the opportunity we see both in the short term and long term. They are positioned well for revenue growth, and they have developed excellent customer relationships. We are excited about this. The process to reach a valuation that satisfied everyone can be quite complex. All parties recognized that this was a particularly good fit, with significant synergies between our efforts and what the Lion team is bringing to market. Thurman, do you have anything else to add? It's challenging to provide specific details on how we arrived at that figure with the investors, but all involved were very optimistic about the opportunity. Our relationship with the Lion team has been solid for a couple of years, and they were very eager to join Cirrus.

Matt Ramsay, Analyst

Thanks, John. I appreciate it. For my follow-up question, I know some people have already asked about the gross margin in fiscal '23 mentioned in the shareholder letter. I'm curious if you could provide more details on what's influencing those margins. I understand there are products in development, and while you haven't announced their timing, there is work happening on 22-nanometer technology. Additionally, there seems to be a shift towards non-smartphone opportunities and mixed signal products. Can you clarify whether the margins are solely affected by input costs or if there’s also a mix element involved? Thank you.

John Forsyth, CEO

It's really on the cost side, Matt. Some of the changes we've observed over the past few quarters have been more related to product mix, as we've mentioned before. However, anything new we are launching is generally supportive of our corporate model. If you encounter margin challenges, the preferred scenario is to be addressing costs rather than a lack of demand for your products. There is significant demand for our offerings, but we are facing a complex supply environment which may lead to challenges that could bring us below the 50 mark. We wanted to proactively inform you about this. The demand remains extremely strong, and the new products we are introducing continue to align well with our overall business model.

Matt Ramsay, Analyst

Thanks very much for the details, John. Appreciate it.

John Forsyth, CEO

Thank you.

Operator, Operator

Next question from the line of Duksan Jang of SIG. Your line is open.

Duksan Jang, Analyst

Hi. This is Chris Rolland, actually from SIG. Thurman, you talked about some supply constraints, are these with potentially your own supply chain? Or are you looking kind of downstream or upstream? We had some comments last night about the handset supply chain and perhaps some constraints there, if you could elaborate at all, that would be great.

John Forsyth, CEO

When we discuss the constrained supply environment, it's quite straightforward. We could sell more than we currently are if we could get more through foundries and to our sets. The primary limitation on our sales is supply. Regarding our customers and the overall structure of our business, particularly with our largest customers and key strategic relationships, we have invested significant effort and have an experienced team focused on long-range planning to secure capacity. We are collaborating closely with our customers and foundry partners to ensure we have what we need for our major products and key customers. While we are striving to meet demand, the main challenge arises from wafer supply, particularly affecting the short-term aspects of the business with many of our other customers.

Duksan Jang, Analyst

Understood. And John, while I have you, looking forward, call it one to three years or something like that. What are the products or the product categories that you're most excited about to drive incremental growth for Cirrus here? And if there are new products that you haven't disclosed yet, could that be a driver as well? Thanks.

John Forsyth, CEO

We're very excited about many aspects of our roadmap, although I'll keep details limited for obvious reasons. Broadly speaking, we see the potential to build on our success in the audio segment of smartphones and extend that to other areas. Earlier in the call, I mentioned how well customers in the laptop market have responded to our audio and haptic solutions, which will continue to fuel our audio business. We've made good strides over the past year, especially in tablets and wearables. Most AR/VR products include our audio and other technologies, so if that market really takes off, we believe we'll be well positioned. In addition, we are very enthusiastic about our initiatives in high-performance mixed signal technology. We've achieved significant success with the closed-loop controller and are now introducing a new conversion control product later this year, which offers a substantially higher value per unit than the closed-loop controller. This is an area where we see considerable opportunities in customer discussions. We have a large to-do list, including more test IP, development, test vehicles, and a robust product roadmap, which has been enhanced by integrating the Lion team, known for their impressive fast charging solutions. We're eager to explore how these solutions can complement our existing product portfolio and the potential for future integration. This will continue to enhance our content with OEMs in the Android space as well as other sectors, positively impacting our revenue.

Duksan Jang, Analyst

Thanks, John.

Operator, Operator

Next question from the line of Rick Schafer of Oppenheimer. Your line is open.

Rick Schafer, Analyst

This is Andy Hummel speaking on behalf of Rick. To begin, I want to discuss the annual growth guidance. It appears that you are still anticipating acceleration. Last quarter, you mentioned growth expectations for the year on an organic basis, and now you are incorporating acquisitions, which I estimate to contribute slightly over four percentage points of growth. This suggests a solid double-digit growth for the year, and it seems like many other factors are favorable in the Android and laptop segments. Can you provide any additional insights into your growth projections for the full year? I understand wafer supply issues are a consideration, but what other factors are influencing that growth?

John Forsyth, CEO

I believe your summary was quite accurate. Our initial assertion, which we reiterated this quarter, is that we expect accelerated growth for the entire fiscal year. We experienced 7% growth in fiscal 2021 and anticipate exceeding that in fiscal 2022. We made this statement before incorporating Lion into our figures, and we remain optimistic despite relatively conservative market assumptions. There are numerous variables beyond our control. Regarding your comments on the supply chain, we take all aspects into account when providing guidance. Our quarterly guidance reflects our confidence in our supply capabilities and our current materials availability. Looking ahead, we feel secure with our foundry partners and the overall supply chain concerning our growth projections. We are in a strong position. Entering into a strategic supply agreement for wafer supply with our foundry partner, which represents a substantial part of our business, enhances our confidence for growth next year, especially with a significant increase in our wafer allocation as we move into calendar 2022.

Rick Schafer, Analyst

Okay, great. That's really helpful. And then, as we think about the ramp, the new power control IC with your biggest customer this fall, I think you mentioned in the past that it's not going to be included in the full portfolio of the ramp. But is there any way to think about which models aren't going to include it? Is it just the higher end? Is it got thicker or broader than that? Is there any other color you can add on that product?

John Forsyth, CEO

Yes. I think the way to think about it is, okay, number one, if we did know when we wouldn't tell you because we don't disclose the details of customers' products and thoughts, but I said a couple of things elsewhere, which I think I can hit on now. Number one, that we think this is naturally a product which will have a one-to-one relationship with the devices that it's in. And with phones, there's a reason for one being in every phone. It's about $1 each, and we're making a lot of them, which would be broadly consistent with the wanted one attach rate from the get-go.

Rick Schafer, Analyst

All right, great. Thanks for taking my questions.

John Forsyth, CEO

Thank you.

Operator, Operator

Next question is from Rajvindra Gill of Needham. Your line is open.

Rajvindra Gill, Analyst

Yes, thank you. And congratulations on the acquisition of Lion. I think that's a really good acquisition. Just staying on that business, wondering if you could give us a sense in terms of its historical growth rate. You had mentioned for Lion that it's going to generate about $60 million. You mentioned that there's a lot of business there that the ramp is accelerating. Any sense of terms to what it was historically? And how do we think about that ramp going into the next calendar year? What is going to be the main driver, is it mainly going to be increasing the attach rates of these power ICs in the Android market or is it going to be expansion outside of Android?

John Forsyth, CEO

Yes. First, I believe the historic growth rate isn't particularly relevant since the company is small and has recently seen rapid growth in the fast charging market. The growth trajectory appears remarkable, but if you were to extrapolate it into the future, it would likely normalize. Over the past year and a half, they have experienced a significant increase in demand, mainly due to heightened competition in charging speed and user experience among higher-end Android devices. In the upcoming year, I anticipate that this trend will continue to drive the majority of revenue and design wins for the products developed by the Lion team. There remains substantial opportunity in the Android sector to sustain this momentum while we aim to develop and market new solutions. We believe the technologies are pertinent, as the speed of charging and power delivered to batteries are still significantly increasing and likely to continue this upward trend, boosting the demand for higher value products. When examining Lion's offerings across different market segments, the pricing can range from around $0.50 for entry-level products to about $2.50 for top-tier fast charging devices. The performance expectations at the high end will keep evolving, so our main focus will be to meet these demands and capture as much value as we can. Additionally, we see promising opportunities in other battery-powered devices, including laptops and more.

Rajvindra Gill, Analyst

And Thurman, last quarter there was discussion around the lead times being different for the camera controller versus the other components like the smart codec. And then the lead times for the camera controllers were shorter, and that caused a difference in terms of timing of revenue, which led to some differences relative to past seasonality. I'm wondering how we're thinking about the lead times for camera versus smart codec in the September guide?

Thurman Case, CFO

I believe what we discussed last quarter involved a different supply chain process. Typically, we sell directly to the contract manufacturer, but with the camera controllers, we sell to a module maker who then sells the module. This required us to adjust and better understand that process. We recognize revenue when we sell to the module maker, but the timing sometimes didn't align with the flow of orders or the backlog. We are becoming more comfortable with this and are gaining a better understanding as we navigate the process. I don't anticipate this impacting our results significantly this year.

Rajvindra Gill, Analyst

Okay, great. Appreciate it. Thank you.

Operator, Operator

Thank you. Next question from the line of Tore Svanberg of Stifel. Your line is open.

Tore Svanberg, Analyst

Yes. Thank you. John, I just had a follow-up on Lion and just kind of trying to understand the market opportunity. So you mentioned fast charging. My understanding, a lot of their businesses is in wireless charging. And I assume that their products are mainly in the device itself and not in the adapter where obviously, right now, there's a big move towards GAN. So if you could just elaborate on the market opportunity, that would be great.

John Forsyth, CEO

GAN technology is suitable for global applications but is not suitable for mobile devices due to various reasons. However, Lion's switch gap architecture in their seamless devices represents the forefront of fast charging technology for smartphones, and it can be applied to both wired and wireless charging. Wireless charging tends to be more efficient, and efficiency is a crucial factor for these products. The main limit on charging speed for mobile devices is heat dissipation, which relates to how much thermal capacity is available. With highly efficient power conversion, less heat is produced, allowing more power to be directed into the battery within the available thermal limits. Lion has shown leadership in the efficiency of its charging technologies, which is particularly important for wireless charging, which is generally less efficient. The speed-efficiency balance with Lion's technology is highly favorable.

Tore Svanberg, Analyst

Got it. Thank you, John.

John Forsyth, CEO

Thank you.

Operator, Operator

There are no further questions. I would now like to turn the call over to Chelsea Heffernan.

Chelsea Heffernan, Director of Investor Relations

Thank you, operator. There are no additional questions, so I'll turn the call back to John.

John Forsyth, CEO

Thank you, Chelsea. So in summary, in the June quarter, we significantly increased sales in smartphones, laptops, and other products, while also making great progress on several of our longer-term strategic initiatives. Those included the ramping of our Power Conversion control IC and the acquisition of Lion Semiconductor. We expect these initiatives to drive growth of our high-performance mixed-signal business, diversify the range of products that we offer, and meaningfully expand our addressable market. With a strong pipeline of audio and high-performance mixed-signal products ramping in the coming months, we continue to anticipate accelerated revenue growth in fiscal year '22. I would also like to note that we will be participating in conferences hosted by KeyBanc and Oppenheimer this quarter. Please check our investor website for the details. If you have any questions that were not addressed today, you can submit them to us by the Ask the CEO section of our investor website. And I'd like to thank everyone for participating in the call today. Goodbye.

Operator, Operator

Thank you. And that concludes today's conference. Thank you, everyone, for participating. You may now all disconnect.