QRVO - Earnings call transcript Q4 2019

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Operator

Good day, and welcome to the Qorvo, Inc. Fourth Quarter 2019 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Doug DeLieto, Vice President of Investor Relations. ahead. go please Sir,

Douglas DeLieto

cause comparisons Chelsey. Quarter filed risk results. our and call in expectations. as XX-K information contained the with and associated on both our Earnings may that that the or release forward-looking much, other earnings management's risk underlying that materially results. to Fiscal harbor in will today's non-GAAP these to to results without current performance. XXXX to SEC review statements operating performance today's could financial our supplemental safe factors factors financial trends We today and additional risk and and we Fourth business Conference involve this actual Hello, very provide results because welcome differ items expenses on encourage impact everybody, GAAP factors analyze Qorvo's enable include our of We from noncash our release the operations Thanks and Call. call, Form annual investors to published you affect In the statement of the may well report financial as obscure certain with to provide This perform

income our results. statement call, comparisons on will comments our primarily and be based During items to non-GAAP

Bruggeworth, over And of financial Bob. For under qorvo.com Infrastructure Group; team. Investors. with well earnings Creviston, of Products President non-GAAP of management reconciliation and today complete Officer; as the I'll Financial of turn to Mark our Eric James members other Qorvo's GAAP today CEO; President website and at call Sitting Bob that, Defense Group; Qorvo's to measures, Products our available Klein, are refer please as President Mobile to Qorvo's Murphy, release me on issued Chief earlier with

Robert Bruggeworth

on Thanks, to financial broad operating. exposure and content International, guidance and thanks for pleased midpoint our quarter to long-term solid a with everyone operational our above the March factories market Doug, XG. excellence we the we and us are a EPS acquisition team gains, Active-Semi call including Active-Semi Yesterday, to our driven how with joining I'm and by revenue and performance to Qorvo. closed growth Qorvo welcome the today. the trends, team delivered average and of of

sales We to adoption relationships management and leverage customer eager are our of scale, accelerate channel programmable the to solutions. power their

are to our customers. We power technologies bring to also excited management their existing

is and XG efficiency requirement, including automotive critical power intersect growth defense, base a solutions multiple Our IoT. and drivers for stations, management Qorvo,

growth. front our commercial our of key expect to for to expanded and all multiple the automotive, strong ability breadth enabling gigahertz of from ends. a and the and we frequencies support to XG BAW section our continued won X to Cellular our deployments front-end now requirements technologies We to for technology supply applications. reap infrastructure of rewards wave millimeter capabilities is to that technologies the experience wave. sub-X IDP drive was unique able anticipated design phased-array new breadth In we're and quarter, MIMO portfolio enabling systems. bands. WiFi automotive portfolio demands we station us stirring home cellular the leading-edge on frequencies of rollout IDP wins gigahertz networking XXXX. the leverage points through across of compound Vehicle-to-Everything to leading Infrastructure XG led by next-generation radars applications, semiconductor the of the entire address base XG meshed and is the frequency our and Qorvo with In defense In XG networks especially millimeter front-end massive late of XG superior higher of stations. We During access modules helping our WiFi support RF secured base WiFi by support next-generation increased manufacturer of won broad begin and station our OEMs, filtering and in connectivity, of beam our base

supply U.S. components solidifies based win performance applications, This design secured of GaAs and our a multiyear program GaN GaN for defense the Department we reliability to on defense a Defense. leadership and Lockheed in win for applications. Finally, to in ground-based Martin radar for

Turning to first our We executed customers to revenue hexaplexers achieved for by categories, solutions, being macro BAW-based on Qorvo's quadplexers enabling well in a higher added design X/X next-generation record on trackers secured Mobile challenging BAW-based including XG achieve Products. across orders content for and our customers. gains envelope trends at are product dilutions, tuners. environment band handsets. carrier aggregation and and our wins integration BAW-based of We driven capitalizing multiple leadership

During we the to of volumes OEMs. significant smartphone PADs our BAW-based by milestone a world's mid-/high-band reached the quarter, supplying X top production

In This their industry's operation. XXX addition, of New megahertz first XG XG to our for continue advanced orders we year. at for from PMIC power technologies select variance to leadership, example stand-alone introduce for Radio the first for allows this calendar standout we the RF And devices. capable the of production received modulating supply customers customers most Qorvo's another best-in-class ET

are envelope devices, increasing for this life and world's some antenna battery growing rapidly tuners the connectivity trackers supporting of enhancing Our and category. wearable most popular

devices. BAW-based we sampled customers Finally, antenna current to architectures enabling antennaplexers, for XG utilize XG future

continued is ultralow $X In a of mobile our that's challenging macro out be very putting us guidance time XXXX. Looking over broadband and billion deployment new the broadband; span speak support early to around RF incremental a massive now. type and forward, mobile in are the across deployed strength XG leading content we communications. cases: X TAM activity and latency; design The will mobile with operational introducing uptick technologies. an and It expected to business model. and delivering beginning rolled to March is excellence our enhanced June Despite expected innings. customers environment, breakthrough gains performance material summary, our distinct years, in machine enhanced being with use XG expected with the is in accelerating,

'XX, position. about we begin excited our As fiscal we're

even We color it target more Mark our that, provide expect applications we wireless networks to our QX as over June. outlook and and wired on With as to new power programmable like growth and additional over markets opportunities data to for new I'll carry expand management. turn

Mark Murphy

good and Mobile $XXX of Korea-based especially fourth of of Qorvo's revenue XXth or was $XXX remained million IDP China revenue demand. range. by million the Bob, as quarter our $XX third guidance afternoon, and for million stations midpoint was XG was growth. and customer the quarter Thanks, $XXX base over IDP revenue million, year double-digit has strong demand consecutive begun. everyone. the year-over-year especially of supported strong ramp the

fiscal and full versus up Qorvo's For is 'XX. revenue year, $X.X the near billion X%

builds growth including million year up points in $X.XX, Non-GAAP XX.X%, Non-GAAP of related March XXXX. in above personnel at per to near-term our margin and share diluted fiscal midpoint outlook payroll $XXX costs, seasonal with the continue manufacturing line XX% efficiency. on income due $XXX net up March quarter $X.XX support We guidance will improving in over the the was guidance earnings gross in to sequentially costs of was were and our expect higher lower guidance effects. quarter was million, organic year-over-year. and XXX in and our Non-GAAP basis operating inventory expenses

million $X.XX. cash March flow year For year, to in $XXX Full near-term or million builds grew XX% $XX of demand. $XXX $XXX free million, support and CapEx CapEx year -- was X% low cash resulting quarter reflected operations fiscal of was of the customer full EPS inventory to $XXX million. a was from flow Qorvo's sales. million

in in focus million our We capital in cash Qorvo's stock management repurchased $XXX quarter a year. efforts the portfolio totaled reduce March free requirements. Our and and repurchases fiscal manufacturing close 'XX. helping total for XXX% flow to $XXX in are Share us million productivity better of manage of the

and and coupon $XXX notes remaining million X.X%. million at to During quarter our rate with of We notes $XXX ended of the repurchased quarter, added million XXXX million $XXX also we debt. a $XX of the under our X% cash XXXX

post the we expect quarter organic double-digit IDP of of to the to XXXX, to revenue quarter sequentially XX% gross between diluted the $XXX EPS million at first $X.XX addition the our million In guidance. and at growth the between we $XXX XX.X%; of Turning midpoint; outlook. June up million of midpoint another margin $XXX In expect with or non-GAAP be Active-Semi. of and and our quarter, and fiscal year-over-year

are For and sequential in growth, the in the quarter growth quarter, year-over-year forecasting robust at including year-over-year mobile June largest customers. we X our

revenue forecast For of X%, $XX from Qorvo million we the recently growth currently 'XX, roughly fiscal including Active-Semi business. closed

programmable 'XX. management We contribute earnings business expect power margins will the a fiscal gross in Active-Semi amount accretive small and to to be

a last mentioned mix to are the quarter, gross in and margin I manufacturing forecasting sequential decline costs. June we due quarter As in

in the the higher approximately on gross as the to addition currently 'XX quarter expect the operating $XXX fiscal personnel to expenses project increase and forecasted the costs costs We full year a development -- power gross business. margins higher and higher well of as are program personnel of of balance XX%. management Non-GAAP Active-Semi year margin million June through

expect around levels to the through year. OpEx We these remain

and results ended We this quarter, spend which our towards million fiscal to expenditures, on capabilities. below weighted capital improved and challenging than fiscal initial we as improving we environment, GaN a we expect pleased In 'XX guidance. outlook forecast well 'XX, less encouraged with BAW, year GaAs our On the 'XX We're executed above very fiscal and us enter we're start March X%. strong and and fiscal how quarter remain deliver tax we June the 'XX. non-GAAP a to rate expanding $XXX full of year and by allowed

technology continued and also operations, competitive our to strengthening improve position. We our further

'XX, another half, year despite earnings full of a delivered we second double-digit For growth. softer-than-expected year

in in we of channels. end for the strength the back growth and XXXX, call year number revenue, outlook that, markets to our operator of we fiscal the cash currently For questions. reflects seeing are over earnings free distribution This our project With the health and turn a I'll flow.

Operator

Curtis our question Blayne with come [Operator from Instructions]. Barclays. And first will

Blayne Curtis

results. Nice

just curious, was that I X growth kind about customers. in of So content top your curious I'm to gain. you've alluded

about story you units, well? strength the strength the just give as just maybe customer talk share is Can coming So the just all can you to strength where you're content and Android market in thoughts about world, seeing the maybe then some you in could the think gains if as from? particularly

Steven Creviston

that. This Sure, Blayne. to talk Eric, I'll happy about is and be

to did I for course, a the with in supplier. pointing Huawei this we expansion about a significant year. enjoy quarter, and been, think, largest We've our Korean-based March both Of content

Part more in customers And to gain we the sell-through. quarter, both frankly. highly well based integrated for their driver on our the pretty particular in content upside did As was good mid-/high-band is modules, a our us. expectation of those on

that using some reports. in publicly you're think I

of but is which So the lot market not we're is place right now. a terribly in with right the gains, content healthy, a tailwind

Blayne Curtis

looks It you you're like in want side. lot from you've the ask but on in infrastructure down year-over-year And XG just to strength IDP June. a up Obviously, of organic then maybe side. guidance, the about the a bit I talking on had little

in Just of the curious that business then rest to the kind of for in your the really and June of trajectory the thoughts year. infrastructure

James Klein

Yes.

I go think the flattish, on organic we're rather would I say, quarter-to-quarter. business as we guiding

to through our continue but is we rate, that Active at also XX% we're As going than will I year, that believe underlying addition growing faster to The at we the our actually is least some XX% we management help, of grow at go of think modeling market rate. markets. market which to

Operator

Raymond Chris will James. question next Our come with Caso from

Christopher Caso

Obviously, some it in I with guess where strength And in spoke space. decisions production in from the some those that could the be of to what the situation some your in seen you've earlier a view you're made of some now again, last talk on you of the capacity sockets? the cautious Was happened made you a about affect since last changed just may And comments. market quarter Do have ago? others you call. quarter. your some some of decisions we've really more comments just seeing right up we've following perhaps

Robert Bruggeworth

Chris, this your for is Thanks Bob. questions.

said As far X think and quite changed the it along, all as well. I of customers. what's named Eric He

out hard the is a extremely years, compelling how the with now share to team gain I'm we've product. top PAD. We mid-/high-band the very lost And we've throw pleased manufacturers with couple back brought over extremely and supporting others. X that handset in worked can You

things our are said, much bringing we're has still we're in And factories of right factories, So the that things done we time. the to we've in of the I a move now the take. us done places Eric think really taking I second with continue said we'll XXXX. And good think team said outlook as the well, seeing positions. of a And some the at back like call, they I one to the good job job as look know still putting those as And We, in a more maybe, at right appropriate you on -- took it others, were the cautious in half. right but early of we far last if actions as those there.

Christopher Caso

you're the some Okay. could those And know some year. of now. And factory about margins utilization the charges we strength I impact seeing seeing and the could now. guess with now, utilization perhaps talk perhaps gross that you're through taking some of facilities you're I you of as you go through some on walk on that us the

Mark Murphy

But outlook Chris, weighing reason not is on 'XX. of the we're in to to us be, still improving. year. where and the that Mark. we're utilization for still this Yes, part want is is guiding we the fiscal XX% It's the

sharp that December downturn I relevant are and there, the had took think, As in those you a we and we underway. actions quarter, still mentioned,

deliberate of there, company. maybe if CapEx Florida years, our very proceeding. it. pay flexible. disciplined And importantly, And note you're percent and quarter, the being say Branch, Farmers that spend dramatically the in so also demand lot expanding spend seen in was saw using spend that of of not and We're life in are is more and getting cycle this several careful base, seeing March getting in down the closure more adjusting that then fourth the margin off. and productivity I'll and the we've better, lowest the asset fabs in about base aggressive at quarter, CapEx spend. we've you I'd the decreased we've We're still slowed So we're times, a shorter more our in to around more the asset furthermore fabs

going believe, growth continued to taken think we with we've So we're margin of come see, year going the expansion 'XX through part in and fiscal course then we're out actions better utilization. fiscal their that we in to this that discipline run because the 'XX, with,

Operator

Our Harsh question Jaffray. from comes next with Kumar Piper

Harsh Kumar

a a have First congratulations I'll I then couple, guide. on get of two line. all, back strong to it but very, and very limited

see XX%? when to talked year you So want little bit, year see the the look this fiscal happening or do margin, a at a to is about exiting steady I at the Mark, gross to you And it pretty you clarify, ramp XX% you're year? the fiscal XXXX? And for do how full it in to XXXX either from is year exiting or where full guide ramp you the guiding June up the

Mark Murphy

is I'm Harsh. XX% you've because asked question, good It's glad number. Yes. to clarify full year a the

that's answer So at to XX.X%. said we XX% be. The starting quarter, year just to in XX%. and below just the question be we'll XX% we'd We full specifically, we're where is June believe your the year

between the between for XX% not XX% average it'll The but second quarter be now, We're and will be to the going call that year. those right quarter numbers.

comments, first to alluded be gave how we is unusual. Bob I about are the in to comments my year. X% And about about on And I'm to the but While we're I control believe up talking reiterate which year, on going of in year-over-year. some revenue the to gave just then guidance a actually we're second the be halves through bit revenue, OpEx, this, balanced going and

Harsh Kumar

then Awesome. Bob second you. Eric, or my Mark, question, for And maybe

all know indicate before? is the maybe top going in that's Typical made history you guys But on ramping earlier? -- on something statement up it that help earlier? quarter unusual. Are business can June hasn't just June. the The will be happened door X all this customers Or they ramping up this year. are is is else huge. I would very not seasonality us that. So This out you

Mark Murphy

comment one. be real That's maybe Harsh. Just than a customers a quickly, Top go clear, year-over-year X just rather Eric. I'd sequential But ahead,

Steven Creviston

to Harsh. helping envelope I'll talked Chinese the in it lot particular, largest of on you currently of back also And March, it's And tuners, antenna high-end of these least and a transition give in transition course, PADs beginning handsets ramping as a mid- forecast. PADs seeing tracking shared are well and those drive the Yes, lot Similar exiting a towards in this as color in applications. We our of lot Eric. solutions. a acceleration. products: March, forecasting This customer at of sure, lot course, trend phones. Korean customer. well course, see integrated saw about in as throughout of We're large quarter some and then is our way content players high-band Phase at low-band is of with that. Huawei. on across we're lot as quarter we full to different we of a based X, the of A the

it's time handsets We're really. an lot exciting of So ramping. seeing a

Bob but strong see goes course, we're said, raising good of Of on to as wait it We're this. year and to for is like year. going how the the all not sell-through the start guidance handsets, these sure

Operator

will next Research. from Our with Equity question Charter Snyder Edward come

Edward Snyder

was for mentioned in I total. $XX at Day, the about Analyst projecting about billion, $X you're RF the and remember you TAM opportunity -- XXXX billion Bob, XG if your

[indiscernible] mentioned for? Has didn't of had seeing just coming a demand more Eric, That anticipating I in quarters any this just that this on about Phase phones then raw is quarter to well. you X Phase phones, recheck could that did X math, more in Or in is sell out was increase but couldn't year that better number you're they are experience X% a you ship to changed? for ramping. And they revenue? last increased that or materials could XG. your X% -- want have So if that shipments my reporting GaN have a shortage James, you they bit talking because all

Robert Bruggeworth

well. billion. far with think little a think Day Analyst are Day, I still Analyst our And kind we the this year since it's didn't that handset seeing talk bit you going Analyst our the because GaN we're from we're back it Analyst if sticking I for Day. since of pull our ramp we're pulling Day, were remind RF phones. in billion TAM lower $X $X about ramping And as to so a in XG of as want little for the sticking We is you that bit to have Apple will But And last volumes lower, year clearly base that the there. as we're and expecting. James, doing with

James Klein

Yes.

XG represents probably side, million for on a infrastructure or us that all, million as during year $XXX for the also of $XXX opportunity First well.

As are far we all as up, caught up, a that to keep doing behind. bit bit of are struggling best GaN a definitely definitely across to bands we've the shortages, got frequency and strong but ramping now so little stay our orders

Steven Creviston

And mixed bag of but a traction, regarding varying of bit Phase a there. all X It's it's degrees up, there's it.

a -- seen transition their with think there maiden in strong in we've phones. P Huawei I series particular, top

much of an the with antenna thought. and track other It's in there, early innings example tuners China, the what of -- pretty as envelope but mentioned it's adding content With we've antennaplexers rest with ultrahigh-band well. with we're definitely in that We're lot as a placements had well on also me, behind. the of we excuse other

of now. lot a opportunities just there's So right

Edward Snyder

right? phone antennaplexers, them you but this XG I my on now. for to see second about to still of band. see Broadcom just the sorry, mean stuff others even is Great. GPS of driver lines, Eric, Broadcom Or and big a XG -- proliferate And should you antennaplexers see don't refer new a and all I lot a these of year And we've know you WiFi, advanced, We're or bigger XG, talked start you as besides antennaplexers see for starting through than that? then do we most XG, do seeing ago. with going if so these question, XG. parts? shipping has the we itself, your In

Steven Creviston

Yes.

and put trend bands bands. the WiFi be into on those just aren't It's base so You're and to you're coming more of frequency GPS bands And anymore could really built that right, It's forth. new absolutely It no fundamental right. all phone cellular expected today. room and antennas. a

even So years. XG, power requirements has been not also and consider, as it's actually going bands for fundamental the which couple to that for trend, but more loss even a you the add higher. there are But only on is linearity

So lot well. there's as a those value in of

and So been we a from see here. no, increasing it's trend it that's only on, going

Operator

will Longbow come Harrison question with next Shawn Research. Our from

Shawn Harrison

well. congrats Two My as results on questions. the

guidance assuming off, outlook think a First the math or back just in of ramping could unit or some of cautious of seems you down to it's a envelope provide for suggests fiscal here big anything commentary at products is least the is which year backlog considering there what volume be year. I maybe kind full the in you're mobile, that bit new flattish pretty

Robert Bruggeworth

your view. for to this thanks and decline Sean, earlier market. for kind that smartphones we commented still are the mobile going things of I year. question, conservative We taking are

As goes. that Eric the early how It's half. right acceptance sure commented, make in we're market a in a have on lot of we the see We'll just second view to exciting want there. conservative now, we And in phones. for

Shawn Harrison

as Okay. WiFi quarters? knowing the it in kind do follow-up, of ramp, delayed And a then see that how -- couple was for 'XX you a fiscal AX here just

James Klein

Yes.

starting a and things -- It I has bit, to are accurate. been but there. think solidify it's delayed

design as go the press to believe through the the as products release we today. drive those received nice We in nice in first prepared rest design the WiFi. in will growth ramp a that we remarks through win wins our Bob's think we we year. we've year I will AX, in do and had also of think that and And we also about talked some go start

Steven Creviston

course, as of looking calendar of also but out get the for first WiFi behind of we'll a 'XX. we'll And half we're at revenues track there couple quarters in mobile maybe, X, infrastructure IDP, first

Operator

comes next & with Company. Rajvindra from Needham question Our Gill

Rajvindra Gill

Congrats as well.

on IoT. question a Just

view was that on kind positioned and you're to market. energy, You win. networking I kind in mesh IoT wondering portfolio had and Bluetooth, meshed WiFi and how respect product of mentioned of design if you low a your with could your describe

James Klein

we've first a all, how bit little me let of Well, about talk done.

revenue IoT wireless. slightly wins our our In So different automotive based position competing as about [indiscernible] low-power and itself as but bit are little of Several leadership. still for our remains some very on just weak ZigBee, That up the the was are standard fundamentals largest WiFi in year. I BLE, the we was the a still standards IoT NB the maturing. contenders. IoT really overall for previously, market, it's WiFi, talked think Thread, strong. also are

very I strongly those moving fact, standards, technology and diagnostic ecosystems. can across think like standard that we're solutions we're in in actually our support and positioned also in We're shelf because several different a labeling lot electronic simultaneously lighting, cases, of with SoCs have other their into wearables. verticals we

so And forward. move as we the IoT company driver for growth significant we a again, see as

Rajvindra Gill

how would have would do sales, is about on you which the of in XX% thinking long-term of completed long-term productivity, hope wondering target we're my to about now follow-up now 'XX, think and transitions I mix into target cetera? question, about that And of we as record et been fab most as is that seeing think -- at I'm that margin sales. fiscal XX%, cost which how as the move you've completed well a reductions, the achieve gross IDP, for Branch through which Farmers year of kind of Florida, percentage you're terms of we have -- target improvements, factory

helpful. be would there color any Just

Mark Murphy

can question, the we going is is and still on target do year our Mark. fiscal XX%, clear certainly, 'XX. it. guide not very We're much But Yes. to believe This your we

benefiting is highly on and this mobile and pointed better focus in in-flight you you there results. lot better business we're this right and As a a [indiscernible] And the on We're that as record operations now. products most IDP out, fab have XX%. then segments. And of outlook on a quarter with out Texas from point revenue in showing BAW-related yielding it a lot from. benefit at and the mix products the Eric's -- we going in is there's stuff -- of the is integrated we're to Instruments, we're of that side doing from work and focused

some that's can gross that the going think to on see guide additional to large the You be us actually target. clear but the in of have help we to that beat margin,

Operator

comes question Bill Peterson next JPMorgan. with from Our

William Peterson

on Huawei My the outlook. specifically. first is I job and execution question Good quarterly on, guess,

supply XG double smartphones. Just you for any in seen visibility speak infrastructure on to the people have that wondering chain or either in ordering. We've other in if any potential

see If channel speak with that you how the you can customer. specifically

Steven Creviston

Bill. don't any Sure, This double of think is I risk really ordering. Eric. there's

maybe There's no course when In that, market. bit, terms up they're a in think. picking of especially share front-loading that the their I about happen, of can plan question

exports, increasing and And shift so own business, be domestic both is another. it's which as seeing or well, adding tracking seeing they to We integrated due also the And PADs high this, I in thing our of share content we in them. are for end a as in how our envelope towards clearly hard of underlying clear of higher going in one really about portfolio it low band. not as well are in terms dollar for just to think, much is that of know all in their market, but

James Klein

And of deliveries numbers base side, think matching deployments. the station our to appear on I infrastructure the be reported generally

win strength In numerous fact, X GaN. because gains, we're us ability OEMs business for seeing the power of We've The content of with with our the top been amplifier of our X to really quarter. with slots this in has across now strong base associated year-over-year strength and associated MIMO almost massive our customers. doubled station

William Peterson

is of orders The XG is next two question part actually question. this Okay. in already and to to for XG, a you're calendar speaking related It's see nice 'XX.

a feel just it's quantify so that of I assume of the kind give of order. forth. filter you magnitude and hoping And So BAW can what and base these for lines along the

ETP. the mentioned You

this If you are can year. winning what you clarify

a with forth? be environment, to a performance impression searching are so, competitive making amplifiers, of what out in the switchers, if work you. attach. so But base competitive of it filters, the been with have lot lot I really really of there key terms noise about whether the obviously, want Secondarily, for your has is And in customers Qualcomm the advantages? or that What they components, power criteria, a

James Klein

Bill, this is James.

jump Let on infrastructure Eric the the before quick to real goes in me handset.

revenue GaN So base deployments. is is key we've for by although double double, we XG, to side go really And we'll station, largely of most also as had wins defense see well that as of is MIMO driven see and going station from we'll as today devices. today through well. the some year, massive expect come Most on XG that that effectively our and we base our including and GaN-based the business

Steven Creviston

handset some some identify with integrated we highly side, the PADs for XG. early On wins did

envelope the usually content. We architecture. in comfortable clearly compatible, there The a the an On they the of half being a leading your fact, come in discrete distributing Qualcomm. terms competitive to other high-band attach the and the front of year. best-performing the one for that quite actually for with PAs designed launching RF our they overlap orders where minor contrast wins attach -- This half point all in for more label. some across of it now PADs relatively ET stand-alone, drives next of we've you year. in the a to reuse of there quarter-over-quarter, is calendar RF which you -- RFFE. We're enthusiastic products there's is We're of customers to XG all towards year using critical Qualcomm's the have for seen for end. still kind real or enthusiasm then are to course, Qorvo's sort all normal of We chip, in nature approach year. and well Everything ultrahigh-band design which getting there. normal tracking, announced, and to increase antennaplexers, in of ramp second are an the space architectures Definitely look the been also throughout is But an if it allows management tracking filters regarding discrete volume, and suppliers. This the about our Qualcomm, can. this a is PAs, sell That XG yes, with second is, on solutions already especially will configuration they front-end as them assuming XG. of power the envelope the be big will area across very completely in question customers lot are capability products RF We with in

this course, think maintaining a we closely, end, performance of and to So area it's, our the of important RF is the market very competitive and important handsets. be customers front a into very to looking for

and very can you proving away the getting management XXX centimeters team that front-end a and of the accomplishments proven the So we're of actually the of that from get components kind capability this megahertz performance. proud have RF of still power couple

you paper detailed that follow website on very if our In more. a there's fact, white like on up to

Operator

Arcuri will UBS. from question with next Timothy come Our

Timothy Arcuri

confirm Mark, the I just wanted to half. back loaded said is evenly loading and you first pretty commentary half

mid-XXs. of that quarter sort second up like up the would normally that Q-on-Q, fiscal which So like imply it's it's mid-single-digits

know that is guide sure, far right? I just of that make want out, loading make to to want just I that given sure just you want So don't commentary, I kind but that to

Mark Murphy

correct. actually That's Yes.

Timothy Arcuri

much in talk will Okay. China But the in be is how numbers you much China, I June? about which Great. and in you as of given was then think March? percentage mobile a why can asked. what And how And do products these you've past, it

Mark Murphy

and want of going is going in sequentially detail. all habit the been as get into don't I increasing March, while down Samsung to at of the is providing part Tim, in down China percentage seasonality. and it's just significant actually It's June normal --

some provided hopefully, color. So you that

Operator

next come Sachs. Goldman with question from Toshiya Our Hari will

Toshiya Hari

you going grown of key markets, as the about Active-Semi? some a follow-up. think the business forward. a potential perspective, but for a is to how additional talk over integrate synergies And there company talked the have I fast And couple from years, think being more about accretive I breakdown of the Active-Semi, any was bit I overall end you Qorvo, margin by how has guys you a then past little growth could about rough hoping you

James Klein

This is James.

represents Mark some questions. excited the need the believe today. maybe talk fully current scale, acquisition brings of Qorvo. that about The me to that will business them a usage and financial Let critical expand in more Active's little SAM the it $X bit for Qorvo's then to can our electronics. power billion the We're business addresses opportunity address handle scale, We efficient about

can cultural which defense, We there's we portfolio. speak. in we that IoT, a our expand believe base develop rather underway further to also great be our and technology existing going like to station, really It's straightforward. will Active's overlap products minimal our bring Integration is fit, and on bear We markets we think automotive as SAM those as it's in areas.

you to to from the be underlying a years growth able their the we average past So they've outpace X and I able that if our markets, revenue been again, of look at CAGR. expect, think perspective, to demonstrate over

so as Mark would in we overlap, relatively synergies. plan remarks. in synergies, minimal As be guided his again, prepared the what revenue far minimal

Mark Murphy

Yes.

We the we So dilution it assumed to dilutive Toshi, debt. believe, it delivers but that. -- margin. and slightly going full yes, it June company year. then purposes, We accretive gross the If accretive will for would year. we minimis amount slightly for we it's de guided believe cash what in to it, be the beat XX for for paid And be

Toshiya Hari

similar as to profile of to growth say just so business? the follow-up IDP that the Active-Semi that, a to classic fair is it of is And

James Klein

other bit you power areas. very have performing them PACs and better. time-to-market nice that categories, ICs, and customers. two their seem asked power they're they're offer also helped and into seems customers areas to that to really Yes. Similar, been application or with but PMICs a advantages a The time-to-market, really is product today. has or capabilities And discriminator in the programmability the significant And is both their to in management different about controllers. One helped and with

Operator

next Our Ackerman from Company. with and Cowen will come question Karl

Karl Ackerman

may. questions, quick Two I if clarification

Just back MIMO. referenced going to massive XG infrastructure, wins you for some

you think And million mentioned that that how opportunity While as Is -- fiscal ramping we macro for million $XXX the fiscal XG? cell back-end how your to expand in XXXX. shift to see is shifts that from see dollar just you $XXX now, I macro year? do XXXX? ramping LTE do loaded this

James Klein

Yes.

million million an fiscal as ongoing the next go we into $XXX is as opportunity year. for we through ramp endeavor. fiscal to go So $X year. us opportunity billion And About $XXX this

based to I that, not go up about talked on be about would to win another for about, in and XX% our our what see business as the to As guiding ability we this we just expect year, and but in markets, station win we go into going TAM. we we're on expect the next base the to And ability year. it TAM our and double

on content macro MIMO the the before transition talked transition. RF massive that's you in range macro make XX% based and increase go from to rates, to XX% to as as adoption We MIMO a base about RF increases from XXx content Now massive significant that X station. you that capability. have MIMO our will base stations somewhere a And to an base in station of

Karl Ackerman

fab? restarting back Branch Very And from How ephemeral, production a helpful. characterize to I'm buildup component may OEMs. why seems rather China handset your there but in been implies or further I if If QX, your filter demand China you drawdown would Farmers is inventory across just go have inventory if BAW buildup your not near-term mobile. Because at of not OEMs? handset you to a a curious outlook are this

Steven Creviston

inventory the with. inventory channel that question that have. start we you I'll on actually to asked take glad I'm

the the absolutely of in maintain inventory to very, run the hard reasons this, component that systems dedicated year low when been that same one we last that channel. see that see and maintaining and really are we it to forth lean discipline That's this component throughout we've a begin to we at allow in turnaround over at the like us Our immediately, incredibly a ramp, channel. historic in lows on inventory very actually. channel is things inventory of is so That's building one working

exposure Branch restarting, think, can size on demand We're mentioned the needed. X-inch things everything from last of work of a a bit as with doing little of wafers fab. die Farmers increased more I to to Richardson probably, with to did doing X-inch meet capital transitioning we as get just quarter we, Regarding out lot reductions. we additional productivity We're

Operator

with question comes Hettenbach next Morgan Our from Craig Stanley.

Craig Hettenbach

because just into A wireless market. cautious and half on the back question your the expectation of understanding is

like-for-like Qorvo specific, For year the you're feeling in the just your half how you talk content back kind that of visibility. can to dollar about year-over-year and of

Robert Bruggeworth

Eric. take it, I'll

a in the year with talked seen in We've is half for and and flat staying second per My double taking content. So pretty But dollar the our that the in sticking good work Craig, very year. in we're the RF to We're half our year. mobile digits. grow growing. kind little The of of content were good beginning that the the quarter, phones call we've are some content of about wining view got feeling to second year-over-year. out. continue over quarterly our phone comments the in is increasing the the can kind done that we're expand doubt that dollar design bit roughly we strong really the cautious about start we launching a of the In last wins the of of half growing believe we that. of these We've year IDP guys back phones TAM there's no mind off

we're $X and in commented is faster. that's XXXX, in not on a content, in commented going coming also Where later of year. to some in little XG billion cautious see start We units. that the that, in our it's I we're bit to being

Craig Hettenbach

help aggregate as infrastructure, exposure just Got range it. clarifying. wireless with you Appreciate you XG to And today? infrastructure overall wireless frame rough of a tremendous in just IDP, follow-up growth just have this what in not the your just happening, a could maybe but

James Klein

receipt elements and it RF we are, being pretty very the station. side today, I portfolio whether of exposed frequency that produce XG plus or A ability capacity be in the including mean whether of macro now chain, power to amplifiers the or are technology. much MIMO and broad to the ranges advanced base that guess, I deployed very, be continuing any market, a broadly the with to XG add all products, our a

So again, say broad-based. would very, very I

We -- growth the the the business of MIMO deployments. side in are seeing macro flat in significant relatively and

Operator

with from America. Arya of Bank comes question Vivek next Our

Vivek Arya

but flagship year to And wanted expect just did you to kind Bob, I you -- Is to flagship you. think that? every And else? well. the there content I this Is conservative Is the back Is at you for unit I if something as you any that justify content customers? do on some go that two is technology? it are grow what at think causing Is it that had that customer? of mention outlook. side, pricing? full shifts,

Robert Bruggeworth

tried, other I've in I why And I that, very that not future expansion generically the that's than architectures Vivek, cautious about to the question. think comments was continues. talk TAM. appreciate my RF I

time, think know the enough to you've competitors. every goes our all around long every socket been for us wins and that nobody and industry I RF

Rarely guys performance, it's buy it sometimes it's price sometimes delivery, performance. it's is mainly share balancing. Sometimes and because the on in these high

to comments. of that my all applies So

Vivek Arya

good back Bob, as about X you to some And is XG era, it's you opportunity XG? to I think made mentioned go dollars to of to Because X guys XG content go you we at XG. as the XG What some when Understand. the very incremental from I to $X forward look time. before, from have the about billion incremental presentations

billion $X the that absolute $X So about refer in incremental you RF Or it's you the is it RF billion $X the phone, or billion, talking incremental? entire are are content devices? the that over that which over be it what So saying when could to? in you talk XG does about content Is $XX?

Steven Creviston

is Yes. Vivek, Eric. this

we're in And includes to XG. compatible attributing increase As Analyst that content we we about XG. to Day our year, in XG in uplift 'XX $X TAM last as talked billion of with commented, the be calendar

a drop in into as be a the there's the to requirements, you other to that, example, an has parameters. and XG there's filtering lot a course accommodate when [indiscernible] So band of of able case phone XG

advanced specific not upgrades compatible phone, to pro with be XG-only for a So XG order devices, XG. build LTE in to but added entire content the the XG that's that's

Operator

with will question from last Our Harsh come Jaffray. Kumar Piper

Harsh Kumar

time? Mark, you your towards profile, slightly be can very it year, of over think you full kind at that out or possibly for the of you, to this pocket exit think even the you as able to look at ask XX% margin close I you gross as that? do the is do might XX% builds Or

Mark Murphy

Harsh. not gave, We're to If -- based I XX.X%. starting on quarters, guiding XX% what Yes. at we're

full have that second I will XX%. be year a those the quarter of two. between said We

math. You do the

the in in half. XXs the back high You're

a the So so in We're hesitate ways year. working months, more number is expand in of gross early off a to very very I to X this give than any hard coming challenging just margin. we're

Operator

ladies management to for the turn time, I you, back call to like over Thank and At gentlemen. would remarks. this closing

Robert Bruggeworth

We presentations, want tonight's to first we and upcoming to thank good our everyone investor our for look fiscal call. have a you with night. at on on hope joining and call. 'XX you see us Thank forward We you, quarter to speaking

Operator

Thank concludes you, rest ladies the and disconnect. and gentlemen. of This your today's day. Please now enjoy teleconference, may you

Qorvo (QRVO) 7 May 192019 Q4 Earnings call transcript