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Cirrus Logic, Inc. Q4 2008 Earnings Call Transcript

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2008-05-16 09:47:22.0

Tags: Cirrus Logic Inc.

Question-and-Answer Session

Operator

Thank you. (Operator instructions) Our first question will come from the line of Heidi Poon with Thomas Weisel Partners. Please go ahead.

Heidi Poon Thomas Weisel Partners

Hi, guys. First off, I'd just like to ask if you could give us some more color on the fiscal Q1 guidance by segment please?

Jason Rhode

That's the level that we break out for our guidance going forward.

Heidi Poon Thomas Weisel Partners

In terms of audio versus industrial?

Jason Rhode

I don't think we've intended to break that out by quarter. We haven't done that in the past for the guidance. We do that, looking backwards. The color that I can put on that is, as we've said, really starting late last fall, industrial really stabilized and that's really what we expect it to do. We do have some new things that are exciting and growing within industrial like the Itron products that we talked about. But, that's not the real rapid growth kind of a thing that consumer or portable in particular can do. So what we're really looking for from industrial is really slow and steady as she goes and the growth that we're expecting in the second half is expected to come from the audio product line.

Heidi Poon Thomas Weisel Partners

Great. In terms of the multiple tier-one wins, do you have good visibility in terms of the ramp in the second half right now? Is that already in the backlog, for instance?

Jason Rhode

In some cases, yes; in some cases, we wouldn't expect to have backlog quite yet. But, yes, we've good visibility about what our customers expect to happen. So I think that's about as good as it gets in this climate.

Heidi Poon Thomas Weisel Partners

Great. In terms of mix of products, in terms of gross margin, do you anticipate as you ramp more of these consumer products for you to maybe going to the lower end of the gross margin target like towards 55 versus the higher end like what you did this quarter?

Jason Rhode

Yes, that's the expectation and the goal that we're setting for our operations folks and broadly through the company is that as we grow and as we achieve some success in the portable area and that becomes a bigger and bigger part of the company, we'd like to keep the overall gross margin above 55. That's not a cake walk, but it's certainly something that we believe can be done.

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