Businessweek

Cirrus Logic, Inc. develops high-precision, analog, and mixed-signal integrated circuits (ICs) for a range of audio and energy markets. The company delivers optimized products for consumer and commercial audio, automotive entertainment, and targeted industrial and energy-related applications. It also develops ICs, board-level modules, and hybrids for high-power amplifier applications branded as the Apex Precision Power (Apex) line of products. Strategy The company primarily focuses on providing custom products to market customers in the various markets it serves. It targets growing markets where it could showcase its expertise in analog and digital signal processing to solve problems. The company also focuses on building an engineering relationship with the design teams at these customers and work to develop differentiated products that address their specific needs using its own intellectual property, sometimes in combination with theirs. Markets and Products Audio Products The company offers high-precision analog and mixed-signal components, as well as audio digital signal processor (DSP) products for consumer, professional, and automotive entertainment markets. The company’s portfolio of approximately 250 active proprietary products includes analog-to-digital converters (ADCs), digital-to-analog converters (DACs), ‘codecs’ - chips that integrate ADCs and DACs into a single IC, digital interface ICs, volume controls, and digital amplifiers, as well as audio DSPs for consumer electronics applications, such as audio/video receivers (AVRs) and digital TVs. Its products are used in a range of consumer applications, including portable media players, smartphones, tablets, AVRs, DVD, and Blu-ray Disc players, complete home theater systems, set-top boxes, gaming devices, sound cards, and digital televisions. Applications for products within professional markets include digital mixing consoles, multi-track digital recorders, and effects processors. Applications for products within automotive markets include amplifiers, satellite radio systems, telematics, and multi-speaker car-audio systems. Energy Products The company offers high-precision analog and mixed-signal components for energy-related applications, such as light emitting diode (LED) lighting, energy measurement, energy exploration, and energy control systems. Energy products also include ICs, board-level modules, and hybrids for high-power pulse width modulation (PWM) and power amplifier applications. The company has approximately 450 active proprietary products, which include LED driver ICs, power factor correction ICs, ADCs, DACs, linear amplifiers, PWM amplifiers, and amplifier ICs. Its products are used in a range of high-precision, energy-related applications, including LED retrofit lamps, digital utility meters, power supplies, lighting ballasts, motor control, energy exploration, and high-power systems. New additions to its proprietary product portfolio are as follows: The CS1501/1601 are digitally controlled, variable frequency discontinuous conduction mode (VF-DCM), active power factor correction ICs intended for use in switch-mode power supplies rated up to 300 watts. The CS1501 is designed to address power supplies, such as laptop adapters, digital TVs, and PC power, while the CS1601 targets lighting applications, such as LED and fluorescent electronic lighting ballasts. The CS161X family of TRIAC dimmable LED drivers, which have been tested to provide approximately 100 percent compatibility with installed dimmers, which targets the retrofit incandescent replacement market. Customers, Marketing, and Sales The company offers approximately 700 products to approximately 3,000 active customers worldwide through both direct and indirect sales channels. Its major customers include electronics manufacturers. It targets both existing and emerging growth consumer electronic and energy markets. The company derives its sales both domestically and from various locations across the world, including the People’s Republic of China, the European Union, Hong Kong, Japan, South Korea, Taiwan, and the United Kingdom. Its domestic sales force includes a network of regional direct sales offices located in California, Massachusetts, Ohio, Nevada, North Carolina, and Texas. International sales offices and staff are located in Germany, Hong Kong, Shanghai, and Shenzhen in the People’s Republic of China, Singapore, South Korea, Taiwan, Japan, and the United Kingdom. Its technical support staff is located in Texas and Arizona. The company supplements its direct sales force with external sales representatives and distributors. Its customer is Apple Inc. Its distributor is Avnet Inc. Patents, Licenses, and Trademarks As of March 31, 2012, the company held approximately 1,027 granted U.S. patents, 109 U.S. pending patent applications, and various corresponding international patents and applications. Its U.S. patents expire in calendar years 2012 through 2030. It maintains U.S. federal trademark registrations for CIRRUS LOGIC, CIRRUS, Cirrus Logic logo designs, CRYSTAL, APEX, and APEX PRECISION POWER. Research and Development For the period ended March 31, 2012, the company’s research and development expenses were $85.7 million. Competition The company’s major competitors include AKM Semiconductor Inc.; Analog Devices Inc.; Austriamicrosystems AG; Dialog Semiconductor; Freescale Semiconductor Inc.; Integrated Device Technology Inc.; iWatt Inc.; Infineon Technologies AG; Linear Technologies Corporation; Maxim Integrated Products Inc.; NXP Semiconductors N.V.; ON Semiconductor Corporation; Power Integrations Inc.; Realtek Semiconductor Corporation; ST Microelectronics N.V.; Texas Instruments, Inc.; and Wolfson Microelectronics plc. History Cirrus Logic, Inc. was founded in 1984. The company was incorporated in California in 1984, became a public company in 1989 and was reincorporated in the state of Delaware in 1999.