Company: CRUS
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0000772406-25-000007
Chunk: 13

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-02-04
Form: 10-Q
Item: Item 2
Chunk 13
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 2025 and 2024, respectively.  

No other end customer or distributor represented more than 10 percent of net sales for the three and nine months ended December 28, 2024 or December 30, 2023.  

18

For more information, please see "Part II, Item 1A - Risk Factors" — “We depend on a limited number of customers and distributors for a substantial portion of our sales, and the loss of, or a significant reduction in orders from, or pricing on products sold to, any key customer or distributor could significantly reduce our sales and our profitability.”

Gross Margin

Gross margin was 53.6 percent in the third quarter of fiscal year 2025, up from 51.3 percent in the third quarter of fiscal year 2024, largely due to a shift in mix toward higher margin products, partially offset by higher inventory reserves and supply chain costs.   

Gross margin was 52.3 percent for the first nine months of fiscal year 2025, up from 51.1 percent for the first nine months of fiscal year 2024 due to a shift in mix toward higher margin products and, to a lesser extent, favorable freight costs, partially offset by higher inventory reserves and supply chain costs.      

Research and Development Expense

Research and development expense for the third quarter of fiscal year 2025 was $113.0 million, an increase of $0.3 million, from $112.7 million in the third quarter of fiscal year 2024.  Significant drivers included increased employee-related costs, partially offset by reduced stock-based compensation costs and increased R&D incentives in the current quarter.

Research and development expense for the first nine months of fiscal year 2025 was $331.3 million, an increase of $8.2 million, from $323.1 million for the first nine months of fiscal year 2024 primarily due to increased employee-related, variable compensation, and facilities-related costs, partially offset by reduced acquisition-related costs, stock-based compensation, increased R&D incentives, and an investment write-off that occurred in the first quarter of fiscal year 2024.

Selling, General and Administrative Expense

Selling, general and administrative expense for the third quarter of fiscal year 2025 was $39.0 million, an increase of $1.4 million, from $37.6 million in the third quarter of fiscal year 2024, due primarily to increased employee-related expenses.

Selling, general and administrative expense