Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 31

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1A
Chunk 31
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 of products have decreased over time.  Moreover, our dependence on a limited number of key customers may make it easier for key customers to pressure us to reduce prices.  Further, we have made commitments not to exceed certain pricing with some key customers on some of our products, and as a result, we may not be able to pass on any unexpected or additional cost increases or fees associated with our suppliers.              If the average selling price of any of our products declines or we are unable to pass on increased supply costs to our customers, and we are unable to increase our unit volumes, introduce new or enhanced products with higher margins, and/or reduce manufacturing costs to offset anticipated decreases in the prices of our existing products, our operating results may be adversely affected.                In addition, because of procurement lead times, we are limited in our ability to reduce total costs quickly in response to any reductions in prices or sales shortfalls.  Because of these factors, we may experience adverse fluctuations in our future operating results on a quarterly or annual basis.

We are subject to risks relating to product concentration.

              We derive a substantial portion of our revenues from a limited number of products, and we expect these products to represent a large percentage of our revenues in the near term. Customer acceptance of these products is critical to our future success. Our business, operating results, financial condition and cash flows could therefore be adversely affected by:- a decline in demand for any of our more significant products;- a decline in the average selling prices of our more significant products;- failure of our products to achieve continued market acceptance;- competitive products;- new technological standards or changes to existing standards that we are unable to address with our products;- manufacturing or supply issues that prevent us from meeting our customers’ demand for these products;- a failure to release new products or enhanced versions of our existing products on a timely basis;- the failure of our new products to achieve market acceptance or grow as expected; and- any changes to a customer's future product plans.

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We have significant international sales, and risks associated with these sales could harm our operating results.

International sales represented 99 percent, 99 percent, and 97 percent of our net sales in fiscal year 2025, 2024 and 2023, respectively. 

              We expect international sales to continue to represent a significant portion of product sales.  This reliance on international sales subjects us to certain risks, including risks associated with political and economic instability, global health conditions, currency controls, exchange rate fluctuations, changes in import/export regulations, and tariff