Audio-chip developer Cirrus Logic (NASDAQ: CRUS) reported its fiscal first-quarter results after the market closed on Aug. 1. Revenue plunged by more than 20% due to weak demand for smartphones and a shift toward lower-priced components. Profits dived as well, and the company expects the pain to continue for the rest of the fiscal year. Cirrus is calling for a return to growth in fiscal 2020, but that will depend on new products and new customers.

Here's what investors need to know about Cirrus' first-quarter report.

Cirrus Logic: The raw numbers

Data source: Cirrus Logic. GAAP = generally accepted accounting principles.

What happened with Cirrus Logic this quarter?

• Revenue from portable audio products was $212.3 million, down 24.4% year over year.

• Revenue from nonportable audio and other products was $42.2 million, up 5.4% year over year.

• Cirrus blamed weak demand for portable audio products targeting the smartphone market for the revenue decline, as well as the sale of lower-priced components aimed at Android devices.

• Cirrus generated 76% of its revenue from Apple, its largest customer. That's down from 79% in the fourth quarter of fiscal 2018.

• GAAP gross margin was 48.9%, down from 50.4% in the prior-year period.

• Cirrus ended the quarter with $386 million of cash, down from $435 million at the end of fiscal 2018.

• Cirrus spent $40 million to repurchase shares at an average price of $38.87 during the quarter. The company has $160 million remaining in its latest share-repurchase authorization.

Cirrus provided the following guidance:

• Second-quarter revenue is expected between $310 million and $350 million, down 23% year over year at the midpoint. The company expects headwinds related to lower volumes on older headset solutions, partially offset by product-cycle demand in the second half of the year.

• Second-quarter GAAP gross margin is expected between 48% and 50%.

• GAAP research and development and selling, general, and administrative expenses are expected to total between $132 million and $138 million in the second quarter.

• Cirrus continues to expect to return to revenue growth in fiscal 2020, driven by new products and a broader customer base.

Image source: Getty Images.

What management had to say

Cirrus management gave an update on the digital headset market in the quarterly letter to shareholders: "The digital headset market represents a meaningful opportunity for Cirrus Logic over the next few years. While broad-based adoption in the Android market has taken longer than anticipated, we are starting to see a considerable increase in design wins with hi-fi digital headsets, continuously adaptive ANC headsets and USB-C to 3.5-millimeter analog headset adaptors."