Cirrus Logic Inc, F2Q09 (Qtr End 09/27/08) Earnings Call Transcript

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2008-10-23 16:24:13.0

Tags: Oppenheimer & Co., Margin, Call Transcript, Cirrus Logic Inc., Earnings, Seeking Alpha, Oppenheimer & Co., Margin, Call Transcript, Cirrus Logic Inc., Earnings, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question is from the line of Dan Morris from Oppenheimer & Company. Please go ahead.

Dan Morris - Oppenheimer & Company

Hey, guys, nice quarter.

Jason Rhode

Thanks.

Dan Morris - Oppenheimer & Company

Just looking at the two segments there, it looks like audio account forward pretty much all the incremental growth this quarter. How much of that was the portable audio ramp?

Jason Rhode

We don't early break it out and there are a number of moving parts and there are some pieces that are up and some pieces that are down. But obviously the portable segment of audio is the fastest growing thing within the Company. We are pretty well on our way to -- I think as we said earlier in the year we would be real disappointed if we didn't have -- what did we say? 20% -- sorry, 10% of $200 million served segment. We'd be real disappointed if we didn't achieve that and we are well on our way to doing so. So again without getting into breaking out exact dollar amounts, certainly the fastest growing piece.

Dan Morris - Oppenheimer & Company

Okay. And with that kind of mix shift towards portable audio I thought gross margins certainly held in there extremely well. Could you talk a little bit more about why that was?

Jason Rhode

Sure. We put a pretty strong focus and an increasing focus on managing the supply chain and really trying to drive margins across the Board on a product by product basis. But to be completely honest, the overall margins being higher than what we had forecasted, and as you indicated where you were thinking it was going to go, really was due to a mix within industrial within the quarter. A little more industrial than we had -- than we had been counting on and then within industrial, a mix towards higher margin set of products even within industrial. And that actually was pretty -- we had some orders within seismic that we have talked about before have been -- that business has always been pretty lumpy. It comes in fairly significant chunks at one time or another and we had some orders come in that we were sort of expecting to be more in the Q3 timeframe and came in Q2 and that drove the margins up quite a bit.

 

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