Dylan Olivier

Dylan Olivier asked about the competitive landscape against non-RFID components, specifically BLE, and whether it poses a risk or if Impinj remains confident in RFID as a long-term solution. He also asked for clarification on the impact of the EM Microelectronic license announcement on the model, including potential recurring revenue.

Answer

Chris Diorio, CEO, expressed confidence in RAIN RFID as a long-term solution, viewing BLE (both active and passive) as mostly complementary due to different use cases, gigantic volume differences, and distinct infrastructure. He noted some overlap but doesn't see it as a significant competitive threat. Cary Baker, CFO, stated that the EM Microelectronic license has an immaterial impact on 2026 revenue, as the first chip (likely dual frequency) is not expected this year. Chris Diorio added that it should be viewed as a strategic partnership to build confidence for end users.

Dylan Olivier, on behalf of Christopher Rolland, asked about the significant quarter-over-quarter decline in revenue outside of Cirrus Logic's largest customer, seeking an explanation for the cause and expectations for its future run rate. He also questioned the company's progress toward its fiscal 2026 PC revenue opportunity and any preliminary expectations for fiscal 2027.

Answer

CEO John Forsyth attributed the general market revenue decline to a strategic shift away from Android, the end-of-life of older products in various segments, and temporary headwinds. He emphasized strategic investments in new growth markets like PCs and new product families, anticipating a healthy growth ramp for the general market business between FY26 and FY27. CFO Jeff Woolard added that PC growth is tracking as planned. Regarding PC revenue, Jeff Woolard reiterated the expectation for fiscal 2026 revenue to roughly double from fiscal 2025's low $10s of millions, projecting strong momentum into fiscal 2027. He highlighted key indicators such as shipping with top six PC vendors, expected doubling of mainstream platform revenue in FY27, and high adoption of the SDCA interface.

Dylan Ollivier asked about the high percentage of revenue from Cirrus Logic's largest customer (94%) and the implied significant decline in revenue outside this flagship, requesting color on the causes and future expectations for this segment. He also followed up on the PC opportunity, asking about tracking to fiscal 2026 revenue targets and expectations for fiscal 2027.

Answer

CEO John Forsyth attributed the revenue mix to the strength of the largest customer's product launch, a strategic shift away from Android, and the end-of-life of older products in general market segments. He noted that new products in PC, AI devices, pro audio, imaging, and timing are expected to drive healthy growth in the general market business from FY26 into FY27. For PCs, John Forsyth reiterated the expectation for revenue to roughly double in fiscal 2026 from fiscal 2025's low $10s of millions, with strong momentum into fiscal 2027, driven by shipping with top six PC vendors, increasing mainstream penetration, and high adoption of the SDCA interface.