QRVO - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Qorvo Inc.

First Quarter 2020 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Douglas DeLieto, Vice President of Investor Relations. Please go ahead, sir.

Douglas DeLieto

Todd. much, very Thanks welcome Fiscal and Earnings First Conference Call. to everybody XXXX Qorvo's Quarter Hello, include that materially forward-looking that will call This statements our expectations. results current could involve actual to management's differ from cause factors risk affect We risk encourage harbor in associated operations as earnings filed our the on with well the the factors our published because as our risk with statement Form results. annual today, report contained financial release the to you review may safe factors these business SEC and and XX-K

certain In today's comparisons both that items to results. this release and the and call, trends noncash obscure additional underlying we may of performance. financial information operating of on We expenses our GAAP provide today's analyze or enable supplemental perform without to financial other and to in results investors non-GAAP performance provide impact

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

of earnings Investors. please GAAP qorvo.com measures, under to financial earlier For our at on issued complete available release reconciliation website non-GAAP our to refer today

with President Mark Officer; of Bruggeworth, Financial Mobile President Chief of Eric as and Klein, Group; as other Group; Qorvo's today well of management me Products team. President Products Murphy, Infrastructure James are Qorvo's Qorvo's CEO; Creviston, members and Sitting Defense Bob

And over with call that I'll to Bob. turn the

Robert Bruggeworth

flow. double-digit cash thank both free sequentially for Doug, delivered in joining with EPS everyone, June you, and quarter growth Thanks, a and and us today. strong Qorvo revenue, year-over-year

quality; of intact, industry drivers our us our third, is growth ramp market respond are portfolio changing Our leaders extremely XG strong quickly performance and the was allows supplies of featuring long-term very premium factors: IoT. proliferation products broad second, Qorvo by the driven to with Qorvo much award-winning of conditions; operating the including and several well which First, team to

a the business. XX have has in XG reality XG last Over for our operators deployed XX months. become

applications. millimeter right compound proficiency ultra-high favors This other high technologies, front the We Qorvo's new high-performance requiring at right place premium including GaN and technologies, we simply, technologies and and placements seeing the Quite band right time. with in our are BAW, semiconductors new wave band, premium not rewards the ends. in are frequencies and it only

to across markets. and now we defense BAW-based we leading expanded solutions customers. to satcom our drive newest for C-band expanded targeted U.S. shipments the We including radars Ka-band phased-array growth continued radar orders and In won the multiple edge released Qorvo IDP. for into defense, DoD amplifiers programs GaN for S-band Turning X-band F-XX. of GaN programs and

auctions GaN delivering schedule. For frequencies. amplifiers space-based deployments anywhere selected licenses for our the orbit continue X additional the or June. multiple wave In on granted were low recently wideband China, this in options U.S., ahead In of enable issued proceeding completed to to spectrum in millimeter satellites sub In XG gigahertz there in Japan, Earth Also for for applications, originally fall expected world. with licenses be were were internet infrastructure, auctions connectivity frequency.

XG We broad between and antenna. with transceiver products well-positioned of are a the extremely the serve portfolio to

receive MIMO LDMOS. and applications, these channels. in the associated continues transmit larger increases components content architectures take GaN our step for demand share to with XX In is up MIMO, with massive In by XX array from growing to and with

X In IoT, sampling commenced we of our gigahertz extended to of filters. the and gigahertz technology X.X BAW frequency our rereleased BAW range up newly

our for and key design throughput win BAW-based enabling integrity. range, secured industry-leading iFEM also We signaling

design multiple and Finally, wins filters. coexistence we secured BAW for LNAs automotive

the management power about business Active-Semi We progressing well. are programmable our also and new very is of integration excited

our customers We programmability IP shorter customized to which are and leveraging continue sales our and our enable market. time channels these we products achieve with to for to box win

next-generation range power devices, of adoption trends industrial broad equipment. and powering to support the new for a smart of DC tools like appliances, motors expect brushless and controlling We opportunities

Now tuners. for product turning probability we trackers to categories, across BAW-based including profitability. are to IDP, our solutions, growth and Mobile and envelope highest Products. on to Similar opportunities the Qorvo leverage focusing leadership continued our portfolio

XG XG and we solutions, enjoying pads, additional band interest ramps, and and including customer including require band devices in BAW-based XG hexaplexers, coexistence antennaplexers. increased high challenges frequency are As multiplexing bring filters performance, enhanced antennaplexing.

XG a a megahertz and complex on emphasis tuning. plays antenna tracking devices also XXX greater more require envelope they

applications. All product requirements portfolio of in higher of expanding Qorvo's unique and technologies, favor these years experience frequency

we quarter, BAW-based antennaplexers. the received newly released During orders from

market. carrier We export multiple our shipments hexaplexers smartphone band BAW-based for higher X, of commenced to aggregation of X, X also enabling orders their Chinese-based OEMs,

In and path, at leading for low, addition, smartphone. an China-based OEM smartphone solutions main secured XG the we combining high our entire also ultrahigh band upcoming

win we are performing awarded capable XG and impedance programmable first for aperture design of tuners our antenna Finally, tuning.

I'd about I finish, make a like few Huawei. Before to comments

Ultimately, we begin a an Huawei we have the participant worked able of Now there the one companies is list, license our officials can BIS and times impact closely counsel leaders of for largest address to sell. were industry we members important other team quarter expand place senior multiple and to telecommunications if along with was of to world's business. in on we with government certain the a late our products and applied with entity in shipments the on understand the our industry. products I, and met and management

consistent them applicable requirements. with continue legal We support to will all

continue and environment September Finally, solid sustainable challenging our our guidance technology and quarter results. and demonstrate, June we are effectively to a support products as navigating

our additional XG our and are that, to color to September. as opportunities turn over for June our and I'll IoT continue confident We quarter to Mark? the call With expand proliferates. outlook on will ramps Mark provide

Mark Murphy

above review. legal Roughly first in good driven from Qorvo's and of guidance, select Huawei the midpoint to an of the in May was our demand. following variance everyone. the favorable was XX of products $XXX million which quarter the revenue shipment stronger-than-expected quarter afternoon, for million, by mobile Bob, June the $XX revenue Thanks, half commenced extensive

and the full our XXXX. quarter year in June period the revenue total compared XX% to of last for during XX% fiscal XX% were Huawei to approximately Sales year same

quarter, year-over-year million grew higher top to For double-digit the products. several $XXX primarily infrastructure by $XXX to million June was with of revenue customers. demand of over growth IDP driven mobile year-over-year for our due

Non-GAAP basis gross points June productivity gains. due favorable operating were was guidance million, lower below manufacturing to XX in Non-GAAP our effective and control guidance $XXX above the measures. expenses personnel margin and XX.X%, costs mix quarter our on cost

our of higher and in $X.XX, year-over-year. up the Non-GAAP was was from diluted company in net the $XX in June level quarter. record and the midpoint improved $XXX and performance effects. on $XXX capital XX% quarter working resulting discipline. guidance earnings This and operations million share cash our income for income a CapEx capabilities June favorable was over $XXX ongoing million quarter $X.XX of million, cash first million the flow per was operating capital flow cash free free flow reflects

growing During adding and plans in IDP debt. of to and the quarter, of the our modestly net on management increased are business Both Active-Semi portfolio. we rapidly diversified million the we track. power quarter $XXX completed opportunities repurchased International, stock the purchase integration We

share at to the Turning million, $X.XX fiscal XXX to XX.X% of guidance. -- In in between per the of midpoint diluted XX% our of million million outlook. range $XXX revenue the margin the second $XXX our $XXX Non-GAAP of non-GAAP and gross earnings midpoint. at expect XXXX, or quarter and we

the significantly typical offset to ramps quarter. by revenue at seasonal our sales largest Our lower outlook customer, quarter September a Huawei reflects for compared June to the

For the XX% year, will sales of we fiscal our fall Qorvo's full sales. Huawei currently to project total below

difficult scope, filed the to have other and duration we sell Huawei, impact the predict. proactive to are financial and Although our address for products license restrictions of to unclear ability a and taking steps remain to long-term

For and markets these year the Wi-Fi recover sales and other with project quarter strengthen. restrictions. IDP, infrastructure to customers decline due picks as September market up other we through to But the

we increase sequentially seasonal to higher expect ramps by to September offset Huawei. lower mobile, For part revenues quarter with from significantly sales in sales

we year, compared to second effects project mobile due and first For XX% to the half be trade approximately down to half seasonality. fiscal

gross guide forecasted enhance quarter. roughly in quarter June compared Lower the weighing on is On gross to our margin, XX.X% to of flat volumes margins. XX% are utilization weaker-than-previously September

the quarter quarter growth of Programmable slightly projected Power decrease cost to are investments $XXX business. full Management to by and offset are addition around Non-GAAP in operating the benefits as million in expenses programs the control September

to below of million the $XXX year. quarter per the remain rest for expect fiscal OpEx We

quarter projecting spend BAW We are and expenditures, tax non-GAAP to $XXX of capabilities. September be adding fiscal GaN and weighted 'XX to improving expect the On our this less towards we capital rate fiscal highly on than capacity. million we be remains X.X%. continue approximately Spend disciplined as year

flow. Certain and The June a unclear a taking and and year-over-year customer other of sales sales markets so measured the strong earnings our was well record market Qorvo we quarter abrupt quarter to of But delivered double-digit an growth disruption cash responded evolving free important and view. first conditions. of challenging remain quarter aspects with are

to Specifically, to as only modest it Huawei, relates of include outlook have our we sales Mobile reduced Products.

infrastructure the will of in modeled side from second pickup we of but expect time the business, our fiscal a this in in take IDP we customers a business year. have the other recovery On and half

the and conditions. navigate this market these demonstrated we As evolving capabilities products, quarter, we technologies have operating help to

questions. call the back operator the to I'll that, With for over turn

Operator

[Operator Instructions].

James. will take Caso We from first question of Raymond our Chris

Christopher Caso

you're could And you're shipping the clarify the types permitted I trying which then components first you're could components you the we on question ship, to Huawei now, perhaps dollar guess respect year get the beginning where talk you so to Huawei. not, what with that basis about of that shipping with licenses? of what Perhaps the have shipping -- of on you're to in exchange? to you been September quarter, calibrate in the a compares that your what sort how can the to

Robert Bruggeworth

Mark, part. to I'll second take first the want part. you take if the

a opening little your gave about comments; in Chris, you think for I question. thanks them that. the bit

with ours of builds products supply variety shipments that. of are detail. goes The lot manufacturing It this those a call start are of part for including like regulations analysis. component, depends factors part particular companies beyond it a scope materials, to really export me think the Let chains, I like flows extremely with on by unfortunately, and complex. where restricted go the things requires a And each detailed more global into

on I process. you, analysis the the opening his for with And comments, appropriate, Mark in to consulting of guidance is counsel, we legal parts work very advice, ongoing do detailed export before as able as officials a this are in government has said turning rules. any we tell ship, will an that get even outside now

I, parts a mobile we and commented, and the Export So comply U.S. the IDP. we don't for government both expand to with of as both we from of applied license can that those the Bureau Mark number parts we have Enforcement officials, applied, the for feel of ship encouragement

I licenses the so As of issued believe now, any don't government has far. U.S.

be will licenses for or to when So will difficult. us predict be extremely granted estimate even

In the case been can of the it's of volume. ship that those some we products actually clear Mobile Products, in

been As we've in shipments and volume for in it cleared IDP, products some the extremely goes limited dollars. have but

gives you I Chris, to an So idea we hope of that are ship. what able

Mark Murphy

Yes.

comments. I more provide So be may The -- Huawei Chris, majority provided I to directly here. of the $XXX in think vast enough of But million just that first product just to detail in sold quarter. pre-ban. my I opening We was

opening roughly my variance $XX in our see levels level. million We or said comments, to I post-ban. of Huawei our about guide about that would half was As

sales So forward going principally that X% mobile. what is modeled and our certainly, have be less of would than we

Christopher Caso

are available? I to could to whether -- get what place? Huawei your to or to the of able out design kind of being just for helpful. the -- That's would not words, what risk perhaps, be guess wins what I all there vendors they designed licenses, And address in ultimately How exposure U.S. on you would to? sticky trying And difficult reduce this? what going despite uncertainty Are permanently if And of is can that would how the substitutes you forward the restrictions guess is or have other Okay. you be perhaps with in provide substitutes are perhaps not for therefore, are you're Huawei?

Robert Bruggeworth

answer. to of Let China. me that, a all competing story outside at That's Chris. you take one trouble pretty know is Number they're having a shot complicated

those picking So were designs actually up another are customer.

we I'll to somewhat So the had; those keeping design are already make those. comments market. China In wins my we that

ship also those that are wins to picking up them. we continue design We on can for parts

I'd like out point Huawei And world is from customers supply the technologies. our customers like I think like other thing around and technologies. premium we the to

in I'm at supply a candid. product sure So Huawei's I'm or them, not to to question comment their great That's a chain. be position for strategy quite

in think As Mark modeled and you said, fiscal can what's gain year. for what we've for out we the we

more much be to can we grow and how will to add. a wins able is our expand our I don't granted I we do believe What if design continue So know I license, do are business.

Operator

our J.P. next take will question Bill of Peterson We Morgan. from

William Peterson

Certainly up the I design majority lot to first again, My a in RF. question about thing bring hate talks mobile. is vast the wins it using more Qualcomm with the

them also customer, give to XG out are a year Chinese discussed pipeline look the I designing other have But sub-X-GHz? where new design guess the which advantages as you in your the And months? I How And in engagements, Huawei would the us over your guess about be as use seeing talked are I in of be XX winning assume around update on launched hand, into win we XX that the Qualcomm phones XXXX. you the On this can motors next we the guess especially most an reported later RFs for phones? competitor and antenna. about think I to that they should going you traction fact.

Steven Creviston

This Eric. Bill. Sure, is

in are acceleration comments, as new an we definitely lot about activity So Bob infrastructure exciting of that and rollout really mentioned of But terms China, leading coming in the China. seeing but are certainly all both it's his our licenses out. in just in of opening devices excitement of all not customers A throughout handset and rollout. Huawei, accelerating, XG the in terms

high management ultrahigh are band seeing entire highly covering Certainly product modules and and across So antenna advanced management, across low, integrated mid, activity power we frequencies. our family. customers all broad-based and

it's a active So cycle. design very

Qualcomm Qualcomm. large Now we including do course XG doing see basebands well shipping is there. see content multiple And of on all ramping. for We base do opportunities bands the

William Peterson

calling guess here for -- September, sequential IDP. is based you're the that. in again amongst on we followed for guess and quarter I decline that so Wi-Fi I and June in that Okay. guess a in, by forth? half. We And and defense back all Thanks how infrastructure the this year? And question about I in for specifically, improvement this growth should think IDP versus saw

Robert Bruggeworth

to those OEMs. talk So are the strong deployments, to demand are slots let take and come GaN quarter the We quarter with a current of in MIMO Eric, particularly on slots. strong because because XG a of follow-up major me we products massive That from and in most we well-positioned did lot station MIMO current strength seeing about massive do see continuing quarter. have we base has

station base a strong did quarter. So have

believe As our associated quarters We as to several of do chains. activities very business. part bit that a of quarter further, we with projecting far and of of little design win out experienced rollout have business. with part the strong supply Wi-Fi weak of still in delays our and We trade a repositioning particularly the that had that AX IoT

of strong So we indications that a are that starting to we out have are should that see back coming we half. and

So expecting back we are that half.

bit very look that, business. like in business half indications think starting are are But have to chain past lumpy. to the a business, positioned have the strong defense adjust. supply it see defense the we back some about of we a being On of starting I also top infrastructure talked our the And we in Bill, early to does

bit. quarter Predominantly -- in start products decline of though, are to and do soon experienced customers quarter ship Huawei. will with our to of our that that that We to a are ability will associated we begin MIMO we've and some massive fill other ramps the lack with this have next

Mark Murphy

a of bit to with Bill, maybe Clearly in quarter. profile June had sequential decline a help the just IDP. the

quarter. Expect the growth in return sequential the September We expect another sequential in business to December quarter. the to decline

year-over-year, with still to As the business Huawei. issues grew June relates despite in it the

and September in expect year-over-year growth the we half decline the in returning do year-over-year. back for However, a quarter, IDP IDP then to

Operator

Gill We of will & take our next Raji question from Company. Needham

Rajvindra Gill

from Asian any your HBT trade qualifying customers? I in China customers. commentary it. that main risk seeing Asian seen wanted in FE it of out wondering with some the trying for that any are sense you relates and competitive to if products appreciate from where from war seeing competition of a some solutions you ramping -- new I your and in-source if possible? get just and your you're to houses terms solutions are any China just I'm to We've as FinFET

Steven Creviston

combined speak filter I This what At the can switching sell few capabilities. and vast least is are HPT business. very advanced or modules for include amplifiers solutions. power Eric. is mobile The selling of we We discrete that majority

least at GaAs I seen there with So HPT competitive haven't a element supply. the

Rajvindra Gill

has regards one be ramp. of build you're lot the China's or on of to a seems in been would in with lot from a And a deployments. a indicated Okay. bit China, out there that side, little But who that of massive competitor the terms after MIMO basically XG, there what XG differ orders to of deployment pause saying of

wanted an Just has there get factors? to overbuild perhaps a or other is been there sense,

Robert Bruggeworth

and that. don't with This can in think I'll slowdown stations. what go all and base a I is From our conversations carriers been take you there see; Bob, there's

there's fact, an even think for it's coming for round year, I RFQ another late additional larger base November. In this out stations

on slowdown So the we infrastructure side. any are not rollout seeing in the

Operator

our take Carl of next Barclays. question We will from Curtis

Blayne Curtis

is kind impact stations how base said there pieces. be just these is any I to IDP? quarter. much of I'm understand $XXX just the on the a way you of that to May million, trying had Huawei know moving gauge impact good of

that up. Huawei that trying in shipping partially in understand. though just still June business assume to to the even I quarter, I'm stopped So you was

Steven Creviston

quarter, growth into stations range. June double-digit the year-over-year, well had nice the In still Yes. base

of amount it revenue question, And out. split of split so we business as out, the by don't as end units far other the

Mark Murphy

provide don't We that.

Steven Creviston

business Details unit. down level by that

Blayne Curtis

for into some you maybe could at the And ask looking September. growth you're slight you. mobile I other Got way,

ramps. a maybe to as just of And color about whatever you're part kind growth? provide curious Can Huawei, getting offsetting you're so there, obviously, where seasonal will you can talk You can geography give color you little or by I'm talked geography a that helpful. -- you us be more of if

Steven Creviston

again, growth effect. is customers. half in the of The multiple significantly into driven then Eric. Huawei seasonality mobile going Sure. This the muted quarter September in sequential second And flagship across top-tier ramps is by by normal it's

Operator

We will Sachs. from Goldman take next Toshiya from Hari our question

Toshiya Hari

a little year-over-year I was guide your revenue on hoping to understand quarter better better. September bit basis a

take the is we if that your think up. customer much Huawei? about that your up. I Active-Semi of down is million. much biggest How of $XXX is to obviously revenue be I'm guide, expected midpoint U.S.? your in How IDP is assuming is non-Huawei the of

pluses you the of helpful. walk follow-up. minuses I If kind that on of have basis, some a a will year-over-year be and through Then

Robert Bruggeworth

bit take it high-level. largest flat in I a are I'll we our little Bob. China. we is customer, and roughly year-over-year. down is This Huawei largest primarily in on mean, part the are a

at it If were remember doing you we last which was was this China on the extremely year talked accurate. taking well conservative market about a view time, we and

essence, it's in Huawei and So China.

Mark Murphy

Huawei, of Yes, it X/X Toshiya over is

Toshiya Hari

Got it. Thank you.

terms follow-up, gross seasonal in dilutive a typically you sequentially mobile to September ramp guiding essentially despite gross down in are guys of IDP margins, margin. the Mark, As being and sequentially flat is

improvements there guess going surface. be I the some must So beneath operational on

of no the and if year, ban, talked can going kind before But can longer for the helpful. the fiscal will I you talk year. improvements your assuming second I'm guys And case. expectations speak to that points. if guess be the you sequential going So you about hitting the about forward that's Huawei into XX% half, full into half those of importantly, have back the of more some

Mark Murphy

question, Yes, it's a good Toshiya.

progress. a a efforts absolutely were versus there taken and are can. we margin dollars in for disappointment productivity hit mean, X has of of our that we revenue So utilization May network. up factory here gross making on undertaking, that guidance couple reduced hundred the we year good million is set the we've really we is very great are the I And the all obviously,

said, quarter now, said full gross I in by I for about addressed call. X being beat margin expected Right we on points. as the margin did the XX year. gross you the we May basis June the XX% And

I negative That's guided be positive then by some mix offset mentioned, September effect the you flat. largely gains As effects. to the utilization productivity and

view is full and moment the between margin. at gross the for year, XX% our Now XX%

Operator

Snyder We of will question Edward next Charter take Equity our from Research.

Edward Snyder

Modules talk our sure gotten Eric, you've there's phones, substitutes for Huawei's ship tired trackers latest question. and Filter, like lot it in for level Skyworks. and But you for I'm tuners of looks about it's teardown envelope Switch and a of off-components the own modules Full your of China, Amp,

from any high of this kind of to the of phones OEMs been the of the coming of or they advanced all, for years? are modules are to out First kind that basic many moving China street all same moving back of architecture Apple's using integrated

less you're the XG, quick, moving of especially the GaN you're then could, James, bands? new on some defense half it to secondly, tear these between primarily all antenna back become does Is acute handle trying second being year. the when the as like to I the if the and to defense this two, more new the slots in is group? of on interface acute due real And And to now largest sounds gains your and or is that in regard to

Robert Bruggeworth

first part? Eric, you the take want to do

Steven Creviston

Sure.

possible. outside architectures packed is even the acceleration The certainly demand integration, China, customers driving Huawei, higher regarding leading in clear. to for the at in So trend get of more the trying of levels our smallest Advanced of is XG Pro the LTE

that address in cycle. had XG late ultrahigh bands forth. added customers there have even They're several We actually bands in adding to we development more requirements of to more their as and have carrier were so platforms the the

integration. question, your drives more that to first part the towards So only of --

part more top bands that into to in more antenna acute, difficult becoming on definitely yes, question, added all before. the everything there being manage the your of the it's was new with And of second interface

years TAM year. we've more trends we anything, a now. So the anything next confidence than don't And in see expansion about even all other been for of of if talking couple acceleration the an

Robert Bruggeworth

defense, there. the great have basically yes, much is but striking So businesses It's role as half. really would is GaN and to larger poise I back a pretty broad-based as growth say far a playing

of think so across of domestic, And a will broad-based Really, platforms products. from the our international most come broad growth GaN-based range I both and frequencies.

but that up and the down have we You the wave way X product saw up in the all in also C-band in wins and frequencies. S millimeter

As level. far as I'm all towards inside end will the being probably largest of thoroughly if product largest guided business year, that yes, not close be But line, at the the got IDP. the it segment that we've

Edward Snyder

Great. I here. talk if Skyworks about utilization to so to brought And and about all talking last then up year because Mark, several Qualcomm's obviously of I times. investors is quarter, BAW, real revenue that lot There's BAW used competitors a down know stuff. mentioned was talking winning is could, quick. your We ago BAW. down a or

was this BAW all year? what be your you of seeing it what how update on utilization us at here, going I area BAW profile maybe that is filters? much expect on know if Richardson Any give but or higher utilization as to from percentage talking come on to either So to an than are can regard you just you earlier out revenue position has in Richardson? be we could kind down your of

Mark Murphy

Yes.

will product rates Texas with or our But believe see, more lot around have forward we've we Eric of branch BAW yes, Farmers talked year the We've things that complexity, we tremendous confident because of is position forth. operations was say I for is of same be there we RF think, are in plan we us continuing it lot and the hard that done Richardson be. modules some a particularly that going the Yes, Ed, to stringent the density I were and a and a Texas. seeing would increased utilization on requirements along for next going lower there so had asset X activity plant, bands Phase in this hit revenue movement trends and in so. other to that were you what to about,

year. utilization and see, we product use So to we beyond we levels BAW the have, improving a the this in roadmaps see like it greater we'd in see of

Operator

Markets. We will of take Capital our next BMO Ambrish Srivastava question from

Ambrish Srivastava

I quarter. Active-Semi. for basis. any one have reported strong it's for And very flow quick very you. the any quick can, one was IDP so I my give there cash Active-Semi you guidance follow-up a in full But provide appreciate on trying a You was in free I the reported two higher guys But and as is does is have Mark. free flow clarity The know that on year-over-year us able quarter? said you, thanks that for as you include -- to for cash It's uncertain a that. with much be would to really the year? Actually,

Mark Murphy

sales drop to view. cash Combination the flow income free this On Yes. relative year. believe the for of sustaining our previous we decent free year, for do despite we will have cash flow growth

We and and CapEx discipline good management are flow growth. expect working control, cash capital good to exhibiting good free cost see

question. First

Ambrish Srivastava

Active-Semi.

Mark Murphy

if IDP small you There Active-Semi was It amount. Ambrish. that. the Active-Semi. was still a year-over-year business, in IDP grew exclude

Operator

of take We question our Roy from next Ruben will Benchmark.

Ruben Roy

a the the or Is folks for modem baseband XG of wondering technology. for Eric, you process. Eric. about working or qualification your quick XG. by combination? for either clarification And quick qualification then by various that How that the baseband said you with handsets I'm handset wondering or manufacturer that with if with RFs having there design can does OEM actual clarify, design follow-up, you had in also I that wins a mentioned wins manufacturers have out group you a work? had

Steven Creviston

And in and we it and fact interfaces in are with position forth. including in China the Sure. the multiple defining XG Yes, just placements of to really, wins, a across the today, of we lot production and Qualcomm. reiterate, works design we content that have can content basebands in RF confirm process, as leadership and so

between happens and RF's team largely So our the customers directly. integration

Operator

will question our of from Bank Merrill take next Lynch. We Arya Vivek of America

Vivek Arya

actually. had two I

have is curious of For than that disruption. number there without June it I'm been the going into be forward Did Because would of quarter? first number. was less June? and sales high kind such very Huawei Because X%. you that think September, think large I sense pull for that mentioned was for a of just the was about how to I'm you're including seems I disruption? sales you just understand saying realize, your it how XX% Bob, one, a the to is I much trying

Robert Bruggeworth

Vivek, actually this XX%. drove of of about their XX% been about share quarter from what's you even quarter quarter, XX%. their they in Huawei, if And look I think, talked think China last last published they the when you to if I lot remember in share at I grew more first a

they were growing miss we our we recall to with about was taking we we that our last price right. We a thought it also ETP that significant knew remind and were share. back We low you So mix Huawei. didn't share talked gaining was generation. were was it right, you I'll quarter, as business going

they were So were we were XX%. gaining Remember share, gaining year, last share. we

question, doesn't was to answer share. a taking big would've yes, to story. were We more. been great So your And like me. But it a taking XX% seem they're It number share.

Vivek Arya

the the share China? in approach a my XX% in XX%, which for that at your you Got is it you are you similar of share it is broad all your then in -- Makes the the and range content and much look how And or you're And how share phones the much the Bob take lift share the so? seeing when RF it. content design, is follow-up, RF is Just XG was those how sense. is those kind winner or XG in the seeing to doing had designs? in in market phones XG

Steven Creviston

is this Eric. point is, our take this Vivek, in expectations. It time, I'll exceeding at that.

even said, bands than are we being sooner added I As more expected.

we billion the what at upgrades $X are the also And phone driven part so only expansion been to we've confident with be next in not XG bands saying XG least new compatible the to TAM year of XG that. which includes but by in

at expecting $X are we billion told, all TAM expansion. least So of

share. routinely are have And look sort $XX of at out the within higher to getting the of XG level, RF content. at can are worth that $XX definitely you that our When of handsets of that some fair tier China we coming handset tier

I does the total expanding models XG. will as add think various we of it there be are seem our that share RF but

Operator

take question will next from We Rolland Christopher SIG. our of

Christopher Rolland

there. was some them color in inventory there. that that not the gaining natural demand, most infrastructure was their of great spike it that to Is not Huawei an at share building opinion that actually revenue guess that and contribution on I that of your a of part? large XX%, kind means Back sort on handsets was from

Robert Bruggeworth

which we saw our that's was a a Yes, point. massive Chris, our Huawei at that quarter-over-quarter of the for growth high process. is The also IDP lot GaAs MIMO good GaN performance plus,

more James the it. Mark were very technology So Vivek's as working that were was. share nice that. been the a doing side, moved of leading. large percentage we business and of clearly LDMOS question a handset that That where comments now we and who's GaN other same the resources; technology. his our I Huawei taking Huawei for growth that's with We being Huawei for that did the my adopting some a behind taking we've opening we so was took But one just customers no, total portion company. drive in of they're talked comments, It's is good part larger a leader to I And growth saw are the in not and of a customers on I ramping was the in and where of of that. about apologize of and alluded how side from very example

Christopher Rolland

it. into well. as I guess those infrastructure Got And comments playing

when look who as kind you away as idea that new XG, and well. of players what from XG? move LDMOS at share here early materials and Any new we your to And you we HPRF of from on of market any is? your XG think are there's move indications competitors As definitely biggest in

Steven Creviston

I first from share see to all, away do of more definitely Well, architecture get we starting mean macro. and MIMO more

channels macro is And being I still massive think base stations. this then a number percentage -- so quarter. So And the trend MIMO channels trending in are year. we macro certainly And that probably trend in of or being continues. eclipse a MIMO fact, XX% talked that awards, number base will probably last of stations about

way for entire as far major we both transmit all As really all the side. the receive RF OEMs compete of through the competitors, at chain, and side

strengths moving bit GaN between LDMOS GaN fairly component to amplifier Among LDMOS have talked capability. side, a Bob what each power is rapidly, that from so competition and it's few about, and a company's is different GaN the depending into transition And the away on And those individual going been as then the predominantly are. conventional that players of

Operator

Morgan Craig our take from question next will of We Stanley. Hettenbach

Craig Hettenbach

just of that there, You've kind of series think Samsung kind mentioned portfolio how you you are mid-tier curious and traction forward? as in progress could the about the you the of as go and where today A kind

Steven Creviston

mass it's a been to and what with they part flagship integrated closely out the exciting series really key Sure. as We we that tier in story focus us really for team's work series. Thank going for A -- that several do generations were solutions the to been more we less really of That's in and excited most are able for tier the that had on customer. you. the there with

working to well. technologies with years, like at really which moving where things customers with culmination our portfolio new couple of integration our they're at seeing a all of and looking look over and them the now So just so the beginning adopting curve of forth align the that architectures on up rest you're and

revenue gets chunkier antenna tier. that the bits this it. of the the path in all been into us is in course. tuning there So in into medium this first present step of some We've along But or main of

Craig Hettenbach

just thinking And cash on potential from Active-Semi? strong you are a Thanks. back How of free about Mark question the kind follow-up of tuck-ins it. flow. buybacks versus Got like the

Mark Murphy

nothing's free continue cash We've strong we Yes, -- generating been to changed. flow.

We will technology and business. continue to business for for for look James' Eric's bolt-ons buys

thrilled integration we going team well Qorvo this Active-Semi are plans quarter. in on and is track. contributing have and the the And immediately said, to As

did at I'm opportunities, rate we stock continue We the To leverage I've our levels clear going targets. to but and these have the about on been comment be don't not base. extent we tick buyers up of a to bit

Operator

of Shawn We will next Research. from Harrison Longbow take question our

Shawn Harrison

coming other linger I potentially and coming back branch Farmers demand, next guess or mobile demand further into the mobile the weaker as that back And some With 'XX? weaker online then -- year versus branch affect the closure Farmers the facilities? cause does you also fiscal the the savings does consolidate kind of

Mark Murphy

we've it In The right opportunity, about of before taken configuration couple we've facility I 'XX. look sort times different the a at plans have a fiscal talked plant to volume, the of now are in contributing the operationally slower way. this think to in still

are lot able we before more with in So the higher less capacity future. of levels to thought capital a to be we do achieve what would

have the and Great the So utilization we leadership over and facilities and there X.X years. next see capabilities great about improving good down we team feel Texas. that in we

Shawn Harrison

a considering muted do in? in And few see years. new then over phone that the quarter March past it's seasonality March But follow-up, I XG how you XG could in as phone calendar that does out been launches know come the coming with the brief all launches typical 'XX, affect place and quarter seasonality mobile?

Mark Murphy

Yes.

will thought the 'XX. the changed has detail And We not other I right gave since is to then. lot we year-over-year the mention impacted going X% mean, be May view too that year call, that items that out. Huawei to X take very that have revenue opportunity would a A on on there's get we our now up are ban, the I fiscal in difficult a outlook. it's there much far quarters predict. in to

were So it's on off where a hundred -- we we're view. that few million on

tough or predict. that. handset demand be the some and outlook if improves accelerates, X sizing if better Wi-Fi are conservative experience And a situation for better XG -- year think, But could that we more spur Now we now. it's trade adoption releases we and than are to right maybe than some demand

Operator

We Rakesh will question take from next Vijay our of Mizuho.

Vijay Rakesh

about you the quarter if issues looks? talked the revenue any the in if on or side second China sure in seeing inventory Not the handset profile in December half, how you're

Robert Bruggeworth

I'll This take go is and that. Bob,

that our they've and -- components from I remained channel think days two how the own low and we've at talked last the about quarters; of way. historically supply are

channel we is China don't in that stores pretty the So are It's sold And through carriers. their own healthy. most in of think actually actually. go the phones

from what building them, doesn't it anything from we So is appear up. hear

Vijay Rakesh

of the Do side. some stuff. I Got building it. you lot from know war talked HiSilicon complete Huawei and just just look XX% RF continued the I It with supply side when about probably components has we to thoughts from RF at believe on some I'm sourcing of more you up trade wondering base. the they And could is landscape, the your tensions a been the in-house of what of like that looks think that the HiSilicon the are. source in-house? the almost

Robert Bruggeworth

James, not your of address can you I'm business infrastructure any. HiSilicon? and aware

James Klein

to rest don't I HiSilicon OEMs. very Yes, relying on base still direct we inside of similar see supply the mean, manufacturing. the They're the

supply ability our to on very today. relying they're different course, part, similar components chain most is side. U.S. the get But Of significantly on for the RF

Operator

Ackerman We Karl next Cowen. question of will from take our

Karl Ackerman

you progression great it of order in of and have revenue back you opportunity fiscal massive then we XG that operators, moment, 'XX I discussed less $XXX follow-up. a the But MIMO is guess a have If view to for $XXX half If your portfolio. to exclude for 'XX. go million the your And I could infrastructure you see I for fiscal prior million fiscal a network China-based than and XXXX?

Robert Bruggeworth

James? Sure.

James Klein

not I'm individual first, Well, by to company. guide going

for So business. There be buying business, I early see And on rollouts as see talked are will suppliers that do that that going China. pace. multiple mean we earlier, that in China on that about competing for in being we Bob

United likely wave to on on with the ramp continuing follow going rollouts places. Most States multiple that demos U.S. was around go carriers with country. the see think to X and I and also will activity in commentary other the millimeter below of in we Europe cities most into and then the up gigahertz the of

Karl Ackerman

Appreciate that.

hear your when where to beyond companies if Wi-Fi mobile, about For capturing think Bluetooth to love several sought on may, own within thoughts as M&A have been adjacent such there my diversify to your to desire have follow-up and Bluetooth content your we areas acquire I'd I portfolio assets applications. tangential and Wi-Fi. announcements And

Robert Bruggeworth

you with Bluetooth. already James, competing

James Klein

doing years and to well and continue we into business of IoT the and did -- ago in I business integrated we've past. couple We talked that of acquisition that GreenPeak a the about our see and

place. capability that area continues that's that continue chipset I that offer for be think acquisitions a we in customers space. to somewhat in the agnostic to to we resolve compete probably And try in really of adding And we demand. standards amount an there interested think be company in see down ability to offers look a I the or to that few remain our will will that and significant a to standards

Operator

remarks. turn We back further queue. management closing it no questions to for I'll in have

Douglas DeLieto

to for call. to We and good forward us look on thank everyone have our second many and joining upcoming tonight. We see investor quarter at with speaking hope Thanks we you conferences a night. of again our you

Operator

Thank you. Ladies and gentlemen, today's this conference. concludes

disconnect. now may You

Qorvo (QRVO) 1 Aug 192020 Q1 Earnings call transcript