Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 67

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 7
Chunk 67
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 Years Ended March 29,2025March 30,2024March 25,2023Audio Products$1,137,157 $1,083,939 $1,172,007 HPMS Products758,920 704,951 725,610 $1,896,077 $1,788,890 $1,897,617 

Net sales for fiscal year 2025 increased by 6 percent, to $1.90 billion from $1.79 billion in fiscal year 2024.  Audio product sales increased $53.2 million, or 5 percent in fiscal year 2025.  The most significant drivers of the increase were sales associated with our latest-generation products and higher smartphone volumes, offset by weakness in general market sales versus the prior fiscal year.  The increase in net sales also reflects a $54.0 million increase in HPMS product sales, or 8 percent, from fiscal year 2024 sales of $705.0 million, primarily due to higher content in smartphones and sales associated with latest-generation products, partially offset by lower general market sales.    

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Table of Contents 

International sales, including sales to U.S.-based end customers that manufacture products through contract manufacturers or plants located overseas, were approximately $1.9 billion in 2025 and $1.8 billion in each of fiscal years 2024 and 2023, representing 99 percent,  99 percent, and 97 percent of net sales in fiscal year 2025, 2024, and 2023, respectively.  Our sales are denominated primarily in U.S. dollars. 

Gross Margin

Overall gross margin of 52.5 percent for fiscal year 2025 increased from fiscal year 2024 gross margin of 51.2 percent.  The increase reflects a more favorable product mix.  This was partially offset by unfavorable inventory reserve expense and higher supply chain costs, compared to fiscal year 2024.  Changes in excess and obsolete inventory charges, including scrapped inventory, and sales of product written down in prior periods did not have a material impact on margin in fiscal year 2025.

Research and Development Expenses

Fiscal year 2025 research and development expenses of $434.7 million reflect an increase of $8.2 million, or 2 percent, from fiscal year 2024.  The increase was attributable to increased employee-related, variable compensation, and facilities-related costs, offset by decreased