Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 7

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1
Chunk 7
---
The principal competitive factors in our markets include: time to market; quality of hardware/software design and end-market systems expertise; price; product performance, features, quality and compatibility with standards; access to advanced process and packaging technologies at competitive prices; and sales and technical support, which includes assisting our customers with integration of our components into their new products and providing support from the concept stage through design, launch and production ramp.

Product life cycles may vary greatly by product category.  For example, many consumer products have shorter design-in cycles; therefore, our competitors have increasingly frequent opportunities to achieve design wins in next-generation systems.  Conversely, this also provides us frequent opportunities to displace competitors in products that have previously not utilized our design. 

Backlog

Sales are made primarily pursuant to short-term purchase orders for delivery of products.  The quantity actually ordered by the customer, as well as the shipment schedules, are frequently revised, without significant penalty, to reflect changes in the customer’s needs.  The majority of our backlog is typically requested for delivery within six months.  In markets where the end system life cycles are relatively short, customers typically request delivery in six to twelve weeks.  We believe a backlog analysis at any given time gives little indication of our future business except on a short-term basis, principally within the next 60 days.

We utilize backlog as an indicator to assist us in production planning.  However, backlog is influenced by several factors including market demand, pricing, and customer order patterns in reaction to product lead times.  Quantities actually purchased by customers, as well as prices, are subject to variations between booking and delivery because of changes in customer needs or industry conditions.  As a result, we believe that our backlog at any given time is an incomplete indicator of future sales.

Governmental Regulations

Our business and operations around the world are subject to government regulation at the national, state or local level addressing, among other matters, applicable environmental laws, health and safety laws and regulations, and laws relating to export controls, economic sanctions, and trade, including tariffs.

We believe that our properties and operations comply in all material respects with applicable laws protecting the environment and worker health and safety.  As a fabless semiconductor company, we do not manufacture our own products but do maintain research and laboratory space at certain of our facilities to facilitate the development, evaluation, and testing of our products.  These laboratories may maintain small quantities of hazardous materials.  While we believe we are in material compliance with applicable law concerning the safeguarding