QRVO - Earnings call transcript Q1 2021

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Operator

Good day, everyone. Welcome to the Qorvo Incorporated Q1 2021 Conference Call. Today’s call is being recorded. At this time, I’d like to turn the conference over to Mr. Douglas DeLieto, Vice President of Investor Relations. sir. ahead go Please

Douglas DeLieto

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

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

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

it Murphy, Bob. Chief members President team. Group; Products James to Products today us Defense Qorvo’s of as locations Officer; Bruggeworth, President multiple I’ll Financial with from well that, other Mobile Joining Mark President CEO; as Qorvo’s are; Creviston, hand And Infrastructure management of over and Klein, Eric Group; and of Qorvo’s Bob

Robert Bruggeworth

guidance. support gigahertz with the units. massive were first Infrastructure we of began market, achieved a returned represented total increased and sub-six percentage Qorvo and gross our Thanks, GaN also IDP X. XG strong. specifically record product represented was our Quarterly Qorvo ramp resilient was above percentage a demand were MIMO In EPS fiscal anticipated everyone. smartphone And revenue, Doug, each year-over-year robust than continued especially and Wi-Fi an record for well We and of growth increasing exceptional year margin and total quarter. XG an welcome programs contributing XG smartphones revenue, of defense more deployments. multi-year revenue. the

move at upgrade dual new by for Looking across the need the the supporting cycle band to multi-year in increased favor adoption of architectures both we’re more stages In products, complexity a closely integration RF better Content support mobile XG, early higher expansion supporting and to and increased of frequencies, scale. growth complexity. higher we’re addition from businesses. expertise fueled and and This benefiting technology and front-end XG at design the combinations of includes transmit the our architectures more XG.

design based most some broad the low, band our customers high securing wins for entire solutions, in highly cases path. We’re integrated main ultra mid-high and supplying

XX% over approximately We’re fewer Both down a seeing multiplexing RF $X range are band broad XG solutions combinations. across is a units. expansion $X a devices of of baseband, content in impact units forecasted year-over-year. to based demand range to mitigating across of smartphone increased the for of be

massive our related continue opportunities In while to line XG expect is globally. XXX MIMO year, with PAs are devices smartphones elements to in GaN like we approximately the revenue growing antenna added For content. the small million infrastructure, LNAs in in signal increase

In to cycle a June our this three infrastructure operational this XG and experience XG technologies, Globally, more million with expect infrastructure adding U.S. the In in leadership by million advanced to will strength a next to is initial Our XG other support calendar IDP carriers. base development, technology deployments the and we This scale. of the XXXX. outpace growing and and markets wins than we ability design in of of secured quarters proven the station deployments multi-year station excellence. ongoing in GaN decades on over Europe, base and built capabilities, to year commercial quarter, of drive deployments. given picking-up was investment design revenue year, see record in we record deployments a deployments

a also management United since of now, programmable great sampling amplifiers been growth business across diversified driving GaN is We C-band markets. the and our It's a spectrum in the began added power year for allocations upcoming we team States. over doing job

June times, manufacturer, the module drone for power programmable range solution, front-end longer a X larger quarter, ramped the we and During flight greater enabling Wi-Fi leading the management along payload. with

we for led broadband These and Zigbee, we awarded double-digit as this strong products, and X of power emergency modules several largest of sensor the ramped wins Driven trends, management of of also and brushless into year. more bio for front authorization see places including features for long-term with and we module range antibody receive supply consumer control strong GaN enabling radar home IoT power in and from testing solid an and home of like infrastructure GaN firming In wins commend for defense state clinicians COVID-XX market, requested smart shipments amplifier improving providers are motors by a We management supporting address technologies using efficiency power designed technologies the firms the for from of by to use for drives the accurate innovative Qorvo a We continued centers solutions programs. We results. integrated expectations This of signed it's integrated experienced Qorvo defense in Wi-Fi delivered we data defense FDA used technology, We design BAW our transmit GaN filters. needs device XX-watt the medical our solutions. a power BLE the opportunities solutions, integrated motor Thread in ultra-low other and In in end and rapid defense, products. radar also markets. multi-protocol future, shipments solutions in for were platform. up for defense programs, one unique programmable the market. demand work quarter defense fiscal notable our in connectivity, the multi-chip growth agreements an

technology point-of-care platform also high received production the On biosensor applications. vetinary platform, sensitivity same for our for we initial orders

products to antenna Innovative critical categories, network system selected products, complexity as enabling RF introduce and At BAW we highly and enhance band, mobile designs, XG path, mid-high including for that antenna market complete solution Across customers. on filters, we smartphone. bring customers, PAs, supported Turning our an power to efficiency contact them flexor social multiple solutions switches, using upcoming trends multiple of antenna for and and modules, ramps, and to from major flagship In management. and production this integration across We production supported customers Android shipments in our and broadly high integrating new Korea as in multiple We specialized ultra-high by enabling volume install smartphone was UWB accuracy Mediatek’s smartphone superior support well for flexors, tuners, band foldable we leading manufacturers, modules distancing reliability at diversified shipments commenced integrated baseband. were we customers solution based chipset band applications numerous benefited Revenue tracing and all We're addresses low for performance supply and across manufacturer upcoming optimizes the smartphone innovative began challenges XG wideband, providers, year's high-band globally. faster. a supplying captured to the XG of notably engaged an most also ultra main customers smartphone. are antenna including launches. leading

used the a measure As a short working distance camps. NFL with an SafeZone wideband precisely in NBA technology Qorvo’s devices. the by between over tag spread ultra and burst bandwidth energy to UWB the being example, large enabled we're Kinexon, their is of training whose delivers

In and market applications, marked We’re interacting and Custom adoption set Decawave quarter for closely progressing our and for Qorvo and highly can of said actively our The dual be driven investments, advancing activities it our with integration technology complexity roadmaps and with teams and technologies, a broad The of integrated mobile and closely increased long-term is with acquisitions. same associated customers and power best-in-class Active-Semi. our engaged XG, acquiring the automotive a product The R&D since Across first and recent of solutions, are MMIC range solutions, other shipments with full drivers. across and are of XG our power high are well. community the management, markets, quarter management year, customers transmit just the June we extremely over nicely, we’re supporting by a performance performing aligned including our introduces. very IoT. the mobile

under operating we employees safe continue call over enhanced of to keep the our some to COVID-XX. Mark, the protocols in supporting I'll Qorvo handing briefly and light customers. take is of to measures Before safety operations while our address active

site we conduct operations. scanning and In to confirmed addition practices, distancing rigorous visits, business or efforts, social Thanks or disruptions our and other we've and for these screening quarantine experienced cases. suspected to on processes material no and in temperature restrictions travel

are products. teams best-in-class design Our releasing

their our application to efforts. And call confident and and them extremely hand designing the In quarter, in summary, with our are September. June Qorvo next our I'll performance pleased sales operating that, our proud Our outlook generation team over engineers the we’re for are and with for we're financial and in our the customers Mark. ongoing and factories in operating thank of solutions I'm products well.

Mark Murphy

we of exceeded Thanks, we afternoon impactful and increased million million, mobile Qorvo’s the our of chain Infrastructure our disruptions revenue increased handset to our of networks or expected Infrastructure $XXX above everyone. due of XX% and good Products Defense drove new supply primarily driven launches and quarter midpoint products. GaN Mobile over guide. increase quarter, than expect more the the in stronger sequentially on to of In was as million, segments. and and ramp remained ongoing than adoption first million revenue of and the the September Products Bob, XXXX and out $XXX both XG. less by we $XX guidance to new expectation $XXX anticipated June global the Defense build XG Mobile demand of fiscal for content revenue company's Products as successfully the revenue demand handset at our Product resilient demand time

strength in to due quarter, quarter June and year-over-year During is and year-over-year the IDP over which points XG, we Defense. margin Wi-Fi our year Non-GAAP than through XXX returned robust guidance with growth costs healthy the to effects. was in sustain to and lower mix double-digit XX.X%, expect manufacturing basis gross expected growth IDP the favorable

part quarter are Our efforts and in to expenses income spend from operating favorable the guidance. margin yielding portfolio per quarter in And in diluted $XXX was continue to expect Non-GAAP $X.XX drive in net above $XXX million this XX% shares $XX and quarter. the and in $XXX and $XX Cash discretionary June approximately was We our quarter quarter. operations the as on we’re the June was progress results. Non-GAAP million the than repurchased the to mid-point flow activities. flow June million discipline million. gross was $X.XX million $XXX earnings yielding forecasting share productivity May cash September improve we of expected of million the during lower due free were of CapEx of

We continue capital ahead of needs responsible and to while market return. invest sustaining customer

we unsecured the over to our liquidity XXXX. of notes, October During further an of XXXX through maturity raised quarter, debt to $XXX extending average and the June million our outstanding add-on weighted augmenting

billion We $XXX and ended and free $X.X technology earnings leverage revolver. focus that flow an inorganic Our low maturities. we With and prudent quarter the we financial can remains flexibility, cash near-term unsecured cash this untapped making investments supporting long-term support with and growth. advancing on no customers million of organic have and

and and As emerging we well. engagement been our products customer integrated and on design solutions. with ultra-wideband, see acquisitions have have a array Bob of wireless of mentioned, technology, this new recent On the wide quickly are significant performing applications

MEMS We expect to this Qorvo and to meaningfully business acquisition over technology our contribute time.

customers aerospace power franchise. our to line plan a to is first year. with advanced further Our management and in strengthens versus revenues strong is quarter other defense same expectations in exceeded this already the bolt-on quarter Custom track MMIC, is period Programmable IDP grow its power double-digits management accretive. full serving delivering needs, on segment our are and our acquisitions recent and last

midpoint approximately expect and $X.XX $XXX diluted quarter of earnings current margin we $XXX the per our between to of million. non-GAAP share guidance. revenue gross Turning million Non-GAAP XX% and of our at outlook,

quarter. release, As mentioned guidance and fiscal the press our XX-week in our quarter XX-week quarter versus XXXX fiscal is year our a section year typical September is a of a XX-week

was which quarter or fiscal of XX-week in last occurred XXXX last XX year XXXX, the fiscal Our reported. September week

adding project approximately growth demand do revenue demand and the IDP, higher over parts reflects power year-over-year In for forecast strong growth $XXX in $XXX be infrastructure And Our remains in strong content. current the mobile defense to reflecting forecast complex quarter outlook in to XG XX% year-over-year in quarter is Wi-Fi the we And additional week, IDP. base the million year, timing revenue of million. driving mobile sequential and the approximately more the and quarter deployments. and we growth sustain business We management through IDP robust be as to strengthen. current station current

economic support with we the full year fiscal of effects associated expect Qorvo. uncertainty growth ongoing While demand there to pandemic, the is market currently, for revenue considerable end

efficiency quality approximately reflects our guide margin Our and September quarter and XX% the efforts growth volume business. of ongoing improve to of gross

in portfolio our adequately our markets increase spend. structure raises of can gained serve productivity due the remains, our the our resumption higher reduced in we the to increased approximately margin supply to pandemic, and and XX% we Non-GAAP demand year. operations operating week the approximately in quarter will help uncertainty discretionary the that product additional million where $XXX cost are work some reduce and that sustain gross best quarter, minimize us to early inventories activities, a recognizing including potential and expenses September our our balance we've the Specifically, and the to development believe due the on personnel focused costs technologies chain the capital of to intensity through projected to across product impact need, customers, invested given

the week, year. driven balance full-quarter Other additional below for the to million quarter remain million the will debt the June. the be to over OpEx of in from by charge will expense closer we of interest OpEx expect level $XXX Excluding $XX to increase effect and for the added net that

project expect $XXX for non-GAAP quarter rate expenditures BAW, fiscal capital is differentiated current best remain advanced focused our and serve full-year needs. position We We to areas other and to customer and below be to in on tax XXXX GaN approximately X%. million which Qorvo

Bob while employees and continues June quarter show, other challenging markets. closing, results the outlook In thanking I'd Wi-Fi, September our and IoT, period serving through this time. operate defense to a infrastructure their and in quarter growth well efforts to As and smartphones, customers Qorvo for Qorvo XG join like during

operator Now I'll turn the for call back over questions. to the

Operator

Instructions] Thank with Mobley you. Fargo. first Wells We'll Gary hear today from [Operator

Gary Mobley

for Hey that mass September taking December million about a impediment up would maybe quarter? about $XX think roughly everyone, help That Wanted thanks to my question. be that impact you a can for correctly. ask may works seasonal to December if seasonally quarter how the quarter, us December normally expectations extra what so be week out your quarter, the might in

Mark Murphy

Gary, it’s Mark.

You’re the million about around quarter right, adjusted is the over $XXX $XX would be effect is or million, quarter, so. September

over adjusted year-over-year. number. us. XX% XX% we're strong We're up going And to under without it's additional for for sequential And so still even very just a be the week, quarter that

Gary Mobley

Okay.

sort follow-up, about to the China. in mid-tier my of wanted I the of As XG emergence in particular in ask

Qorvo? scenario walk this And sales under maybe sub-$XXX through in the leading in XG, of the smartphone for plays for if the the us so second you market where particular out handset how half just mobile the year can of China, driver in portion a becomes

Eric Creviston

go true same. as of still any I'll be seeing said obviously adder phone XG that mid-tier, smaller for of the coming-off Eric, that. is even it's is base into $X the but were you this take $X Sure, previously, today XG roughly you're that's the happy We've and to content, content still to holding this we a worth

percentage increase most a of that it's an fact are bit and costs, you the as integrated, quite combinations requirements the there could actually while band be a the that less expect save to more more might implementations So of and is same. discrete

full-band given time out so across all And value design brought sort low-band, just don't with and of a bands, integrated the interference, as put tiers. to highly performance, solution XX of absolutely integrated, with activity our and coverage, We you we're mid-high offers industry so Fusion market lot year, down, already well. now issues them seeing the ultra-high LNAs parts this the so fully integrated shielding, an of awful leading you shielded, are any lot just the the complexity, best-in-class have integrated

look So offering. when few very, you section XG have phone, tier is very the a regardless at that placements just of capability, a compelling a complete RF

Gary Mobley

Thanks it. guys. appreciate Great,

Operator

with Peterson from next hear Bill We’ll JPMorgan.

Bill Peterson

a Congratulations have And the like that China. main the across hi. good the four of a on I for phones. path. results Yes, in sounds wins really strong is past, first the to on you guess are lot in content My it now had devices in guide. question you've the But follow-up multiple question

don't well. sometimes phones sell as And the

the design wins. So just cases get Try the some year hasn’t for half which for launching breadth get try wins or the here a your of and been of design a feel parts. in breadth back China? your for Maybe cases phones the in feel high of the other to you in in might

Eric Creviston

ultra-high in at The Android or doing many customer section we’re broadly maybe high-band XG traction customers. but solution. with full we all across low band Sure is parts Android talking baseband, with XX our year, we're Eric we're the used can with It's parts single all be engaged engaged quite market Fusion today, with about Bill, are the cases, portfolio, portfolio. design the this actually again. on are every or XG they XG cases, so looking seeing are just this our universal, same basebands In this the we're band, every broad, some with the very

Bill Peterson

I came you the upside color. you in but and James coming understand help and upside presume said in question you can from upside Okay, of expected was where here June infrastructure September you huge where rank upside the for see the where and us was here other I some hoping thanks. areas, defense the rank, could was if James, from us help come Thanks strong September, to second for in is the My quarter? that

James Klein

of thanks Bill. from we of brought and the set support what the XG GaN front-end supporting these doubled example XG supported of of both revenue modules, Yes, amplifiers Wi-Fi products different both doing really same products, retail We modules, integrated markets and first both both set a products including amplifiers to broad a very we from to frequencies, of our driver ramps, and is time it the to In market broad are at that the customers. in different with work power discrete ramps great X set significant power set a broad filters believe X. and continue have of power box Wi-Fi quarter quarter, a markets GaN and we due last and year. numerous And we for the the different large in in home. were markets. well of one of and products, customers GaN BAW supported those levels was part from a top also in

we some will in calendar deployments. as Bob be seen into our agreements talked a we'll as in retail calendar fiscal also XXXX in to down X, QX also QX, will his up and a in we long-term see we've to again back And bit expect start supply into year as foundation will quite move based type So QX that station pick-up we continue we high-end itself support similar of to strong deployments come Wi-Fi earlier finish QX, those move stayed XXXX very see for Defense the particularly comments. ramp good business the in bit year we we about on a that the then strength the defense ramp that The story, space. business. a base will

Operator

next to Harsh Piper move Kumar with We’ll Sandler.

Harsh Kumar

James Yes, you it drove explosion -- all of have simultaneously? the a today. all just wins hey of wins massive How did two Did for series like a kicked-in in come that design Or you’re design this just that customers a all guys, series James, was of growth? popular upside? one that one predominantly sudden kicked or another of that you very have that

James Klein

Yes, popularity. it. appreciate it will. Thanks Harsh I for the

significant here a us the better a year-ago. was designers it proud the to As And the of I us saying I've been really downturn business to about from I sales to about of year. part and couldn't expected of folks, return in teams, more as what broad year growth and allowed recover be for a manufacturing a the for us team obviously

we've fairly compared for on games content XG us think projecting we about really and base Massive it's or positive the this, a MIMO So conventional have been XXX broad MIMO macro. rollouts station I been that in see about a past talked I based. to

we With tremendous is past of element last we've well the now of Now, that's consecutive that growth exceeding of on LDMOS, quarter this over because strong about else. growth. But the would double-digits been well. of management content Defense picked the really drive supply can X doing in relatively amplifiers the uplift in space market. part foundation, top is amount was couple because our have talk up and of count we're expectations and GaN everything on that our business our quarter-over-quarter those business but Wi-Fi good of it where very, we the also our as coming a power is a so and in Wi-Fi helped growing setting power very records third don't in and XG small double-digit board in quarters,

So portfolio, great I fairly some for markets aligned have well a got the think we've just and great us. technologies

Harsh Kumar

question for of Bob, Mark my truly, and see margins that then fantastic XX% calling. truly or you're Okay, to and actually follow-up

points, the and neighborhood XXX roughly that much uptick I'm is basis that what how of mix the utilization? is again, correctly, wrong simply year, rest the that I much correct for I if just think But if there. of me of how heard straight-up it of

Robert Bruggeworth

Yes, hi.

go pandemic. us if had been we lackluster I which couple for Yes a and you had and of of really the first to hit think has we're So then period. back bugging we some had you Huawei mobile had a volume think Harsh, know milestone And handset we all, years, I time. pleased then

so And team hard. and real. right were of so we going and were And I've seamlessly cycle those a had. doing But time the we've so And get on around thought, headwinds and Took shut making dye investing there. we're we're milestone. got longer that valued facility shrink, in for these kept to things technology, a we’re and despite just customers, us bit going to our things, certainly by there real where that but we're right a wafer from down on. things. feel we series and to numbers, the can driving go tremendous us than compliment doing continue progress Paul We very just the we're improvement portfolio managing seeing results the his Fego the most the And the we're that and we doing I all and job expansions a productivity it's way confident, headwinds

we've So and very selective for of get more have. that And we what then us. smart capital intensity. finally, dramatically how we're been and We're just that the constrained growth. not expand doing about pretty and reduced about assets We've out in being you've we seen

still costs have from idle walk some some the have partly Branch we QX It's costs have and On to still we Harsh, period Farmers equipment. period QX. we

a costs revenue. are period So in the sense helps percentage those smaller higher higher of of revenue us the

of manufacturing it that margin, costs. So lower rest bit on is the most of us the a helps

new spend So we very earlier volume such my finally, we we shields better had control, Paul team, test the this good and And absorption point look gives about his then this that us is excellent good have mix as higher and from forecast. absorption.

of out our spot. year, are good the in inventories Now, look as really we a rest

ticked-up our little levels, sort are our managed inventories. healthy. very with to they inventory Our don't a terms and quarter, say is for only I'm of bit, first look going the pleased we're they've historical sequentially never channel been the bad. But so and

that's important. So

operation that confidence us gives that the running lean. So we're

inventories there's of healthy bit to little our a fabs a occurs there's dynamic flexibility. I healthy business to we've keep have trying in that that down low, to been mean between playing We But here keep tension loaded. the trying keep and okay. level costs trying we think a

said XX%, softens up what that, have approximately a having in is half we the mix, to believe if would that anticipated margins. neighborhood then XX. XX%. then in If we're actually or side intend somewhat degree favorable, or and in on But feel we mix of all market and we worsened the stay good, the than be market think back high the holds we South the on it So there be will we confidence expand and we of

Operator

And from Hettenbach. move we Morgan will to Stanley, Craig

Craig Hettenbach

thanks. Yes,

competitively? infrastructure the is you can touch GaN, On the landscape, you're wireless is you’re front, within particularly on just that that seeing positioning starts helping, maybe competitive market really to take-off, what

James Klein

what prior to is about I the the we quarters. talked is dynamic similar in think Well, James, this fairly --

just focused technology. pretty driving we've focus GaN manufacturing really that is then continue drive technology, Our to on And and improved sure best-in-class right And again, to and next think now with performance go through we and quarter deployments, able sub-X our our getting deployments. up. got this scale we in ramp And a quarter. innovate these were we that up our gigahertz aggressive making gigahertz sub-X that yields proved capabilities, I on

our will that focus we way. continue been that's So to focus,

a bringing as the modules an infrastructure same continuing example on bringing play, filters think BAW And focus integrated highly set small side, competitors side. into to innovation, I we're We're mix just signal there great more got as to in doing the thing. our of we've the on well.

able innovative So new I products and focused would to say competition on ramp them has quickly. to being been and fairly bring the just we're stable market

Operator

smartphone then And just Thanks. side. on it. Got a follow-up the

relates content? antenna about into you're what just tuning from it talk around some your how to of you expectations perspective, As and XG, that plays seeing can an

Robert Bruggeworth

know time. antenna continue same get because and the year, struggling lot higher transmit new structures and the running dual worse bands, where that and you even at frequencies every the there you with XG issues with in which are customers higher you're implications of also the When as XG. is of that coming got not around only of all in, on a we've Sure, some together, our presence the bandwidth, exponentially running mode to bands put antenna all multiple especially but

of lot routing is we're and the as amount these got all out the world know, in activity advance best tuning, So just multiplexing also you tremendous team structure, awful And a of design. interaction. of but we're a it's antenna We've the And solutions. course, part of of industrial seeing just on this flexors, not there's an antenna antenna these just the just so working like the absolutely what lot in calling there. of around

it's the getting is the sort the part fact done not after modem market. proper. phones So just of to It's of they're

on problem and So and a we've tight very design schedule it's time a solutions our to unique very expertise, very team bringing absolutely that with have. product some the state-of-the-art got team a field in great working serious usually really a great in customers

Operator

Move next to Edward Research. Snyder with Charter Equity

Edward Snyder

GaN which being driven especially James, remind of antenna this could package by that which Eric just that surprising, and the first Thanks of a of it's in to. Couple it. to be why added transmit is on on ball flexors, you side makes everything production given should or we a congratulations up launch is expect XF year-over-year part us help on and antenna this probably then your the lot. the questions. margins exceptional dual And clarify kind bands of doubling is

You high-end smartphones do (inaudible) into sound a if Thanks. everything start mix and in directly to XX ship is bigger and module Boeing that I said GaN now production. Huawei, of customer a given gross it and the the gross modules ZTE becoming percent for move again about James's margin that a as used would the would both you then have is have do in efficiency like increased on in BAW, it just you and on issue use shipping the correct is a includes could mark to margin, plus But not or GaN you're while? to productivity license

Robert Bruggeworth

part one? Hey two part thanks take Eric, James, Mark, you part why can you question. you'll don't take your and three. take for

Eric Creviston

as yes, really a technologies our I team out we've cost is really going for antenna that's into filter answer the said filters down It new and band in as and It up very the even it's and This frequencies. effective our just to the good. sounds higher in very and now flexing out, terms you here right, of stride becoming comes latest category BAW relatively coverage, pointed really single every All for band, R&D, is customers. previous is we’re us. got getting really, across performance Eric critical the hitting high

that into we a very And the driven developed of business, our so modules, path capability then order. multiplexers the multiplexing those sections of step it's leveraging technology. high all and by flexing antenna multiplexing there process down this. is got short of main enabling capability, then, the essentially into work I customers from phones. filter that lot our comes a what's really That's the to absolute And antenna as BAW get to of experience in state-of-the-art we've around said,

help to placed them there. well we're So very

Robert Bruggeworth

Thanks Eric, James?

James Klein

pretty they've to no, done. this is answer comment. license and planning really on the are time, GaN ramping-up Hey, to so again, been point congratulating quite got at to material double I at not a all. see team But Huawei to a the deliveries to We've some we surprised don't that that's go back Huawei weren't our work time. in and our have IDP direct And much for and we

But see all of ones. We’re we won't about MIMO do engaged moving we do rest of with of space. talk all the Tier-X the towards Tier-Xs and solutions. those with particular I massive virtually customers the what in any

GaN. them are in of engaged All

we’re that technology content And pickups in the China that'll proliferates will that the that be continue story, so as have the rest big we been that continue to a XG but confident will not the proliferate. we just And space. will of world. And see ever around as as

a as us we think four is for get this the everywhere world. So or five the networks next deployed the over in trend years long-term

Mark Murphy

directed it's, that because so lot getting sure them programs gross to position add-on right most you single is But lot a the also productivity of make most when us does know specifically one-out to gone to will compete, really more we them efforts getting a point, management. portfolio and and in part To it's critical make mean, hate footprint take how related and products. feel you expand your those. And why that's where important making and that's through right have our in value we've and bring view we're a ourselves technology Ops where We’ve our make as want I around we over place you a there, are customers put the compete we on in dollars where there. for it margin. at to it’s differentiated Yes, margins like the good incremental investments years and the return and good spend the the sizing others on time of and we all mix, about great CapEx this I the all that's the and and the you than the

to quarter So we we big expanding continue important have, role. how that difficult and expand from an quarter-to-quarter it's mix playing over over Mix long-term here, to quarter-to-quarter, on do plays time been we've our and to expect margins the comparison depends as is effect but our the margins. the an

Edward Snyder

you. Thank

Operator

We’ll go next from Raymond James. with Caso Chris

Chris Caso

should be differences Thank first there's this to be the you, seasonality regard thinking about with week in a And have quarter. September the question what you would few year extra the I guess that we December quarter. for with

be December differences regard the year. you? a with about because We this their this should have a timing peers of call to talked flagship timing of the ramp that in it your different thinking quarter? seasonality, of factor about Qualcomm some talked the addition, for And evening. flagship, is In about

Mark Murphy

color bit Now and It's maybe remains everyone. Chris, that uncertainty. tough I'll it's more Mark. provide of been then lot on And a just year a year. the a there for take

So up I'll we second second quarter. the the very our too trade. XX-week be quarter, I on we over pandemic we're for that factors week provide and it's extra clear specific. our strong a risk But certainly some at includes general which lot to still comments the can't guide. the million very said $XXX fiscal realizing very asked everybody point strong would excluding always as guide, K risk in and beginning, for of the year, and still that that And that, Gary been there's as we a because a did included we've as put

now is we to few basis, it's As back it's things, be on $XXX we And over to December function expect But down December, to September roughly December an look with you've adjusted a be got would an quarter, quarter. where each at be the into be seasonal adjusted. point. you'll think timing infrastructure And then we to call then have the we March tough September, have as downtick September seasonal to of to in projects. falls so flat we absolute of million the course. basis, half a on is But ramp flat plan a in going IDP that of this expect and but quarter through see mobile, normal at and probably we'll roughly normal it's going December this a

As I grow mentioned, we full-year. to expect

acquisition call. one week, the impact laid this as that, last I about year-over-year think out keep thinking are extra I got we've on mind, quarter's folks in

again, I macro, approximately good below call strength our of have about based back that's covered and kind it's But all gross above going going half. that year-over-year. quarter you the the economy, be the the We've think called then end-markets on out. the or given I outlook start that's broader below approximately the So in margin, and this first September just XX% to half mix broader through think filling X% prudent we've of of now the that, then of and fiscal XX% the to to XXXX. talked things uncertainty business. I And be, to in and the had

Chris Caso

just bit you year, a the through the doubt, gross margin XX% I the of end avoidance return get of helpful. If I very are year, about assume. That's the talking not to gross and fiscal calendar margin

Mark Murphy

Chris. good That's you asked I'm year. about question, talking was I And fiscal it. glad the

Chris Caso

margin well continued high Okay, in the then margin does a go is strength that then which the another despite leads year? XXXX? seasonality fiscal elements you Fiscal gross into improvement runway and the that gross of provide which allow to March stay for quarter question as to

Mark Murphy

covered at previous CapEx expand Chris our well a hold of It margins and of good Listen, the of markets to gross keeping length and in on costs there. our and job up spend factories down. doing working, We're we're to absorb depends constantly question. course a ability how

matters. our then we're We So the we And right footprint, it that. investing very sensitive we’re. technologies? Are to in think

sockets capabilities products to the hopefully portfolio going in are want that way managing value want margins. right advanced the to the most bring winning that, we most and with then business we the to are customers carry the develop customers and the we're and that do We a have to

Operator

onto move Ambrish BMO. with We’ll Srivastava

Ambrish Srivastava

had in that you year, question Okay, you I that. Bob, high a heard the haven't thought total for thank the very on million units I much, said I be Qualcomm say the I seen And what seems XG to XXX side.

of really indeed follow-up then good And was assuming doing where seem give the the It of are back James, to delineate you please return what pretty confident however that well, number that remaining, Thank breakout of would gave China. see for if much us, in year-to-date wondering us choose be you and and markets, it IDP I'm so to you that helpful So end if for a is majority I growth is of we year. to is how is rough is categories, you. bulk business within and terms today like could other the looks you remainder or the the product business? of

Robert Bruggeworth

our consistent results. what we we James, In I'll million go part. we prepared remarks, I expect first smartphones year this globally the and with when my XXX March reported that said, take say did

their also that the about it. many up. have numbers We pretty analysts good seen feel We industry bringing cover

ahead. As far to-date, subscribers as of even potentially slightly our it's tracking in the amount to with model line

for calendar obviously year about number our growth James? year. next and look into very So as significant good this feel the we million XG XXX still units of we

James Klein

out Yes, be defense it pace But quarter growing station typically business a pretty certainly at quarter. remains a about about want to break I rapid to as detail. in or don't we and go, is a base so great

serve, we as business. larger we markets faster and to that that is a so part represent rest around have we’re quarter in other through we then and infrastructure, go the of this the start year. Our XG various growing Definitely take about space the a larger year will IoT the business that of the wireless business

Operator

And from Needham & move to Gill. Company, we'll Raji

Raji Gill

taking Yes, questions. thanks for my

ability wondering LDMOS to in describe the your the view Chinese market of to with base of of GaN shift stations. GaN your on been your Obviously, kind markets? there? traction adoption and station GaN. towards positioning back positioned of from What's kind great of base going technology adoption Just GaN your China, leverage you you're the well outside as I’m What's major from well outside if the kind China those away in as to traction or could the vendor. in China

James Klein

really What's today Yes, driving very, some great, GaN customer in are question. Massive one the evaluating way across is, all great adoption the GaN using Probably that the of base. the big broad version OEMs really XG are very think adoption All deployments the GaN today about to other. is best MIMO or or based antennas. implementing

become So larger I saw are first are think MIMO we last significantly of antenna antenna the majority year, than of And the transceivers a time, using vast GaN amount Massive counts today. those up. actually And macro. the for element

getting is definitely So those the or the with deployed. I going broad XG been say this which of getting what's in are China. China up using X.X, deployed especially in that's I shift on would think driving GaN, is MIMO. is share most are X.X, It the that based base what's a rollout that frequencies adoption good what's stations XG in Massive in are in of around to

portfolio. the rest designing GaN into are in progress go Tier-X, Tier-Xs every of much their of OEM the solutions pretty you to again, If world

definitely don't growth many increasing And I for hold do antennas adopt an completely as rate. clear. I But configuration the as ever MIMO I do base we or we how it's think that also are see go the that stations continued next continue. whole see to And GaN think business. that'll And of five what So we do years, world. in think will continue over a for out trend the this four will

Raji Gill

and Yes, that on just GaN. the thanks follow-up a for

watt, sub-XX here the wattage competitive landscape a So roadmap sense exists kind your those and what of understanding get terms my to high-power is to of high you. or Thank is wanted expertise in markets? your low-power in

Mark Murphy

serve products got that station the the in we've market base today XX eight and both slap. watt Yes,

biggest would the we've centered say, we today. seen where the And of I that's So really market. where part our certainly focus that's because

also station be that us power one, on which macro. able coming two heavily in are in working spots and compete We to of into get we base then also high really additional more aspects see to technology higher developments in really will help much integration, levels the

those technologies those developing parts we play expect continue certainly we’re as So of and to the market in expand. to

over from we've the power. few very started years. high very Now very, business, defense have quarters that definitely products, and for power very in a voltage power products defense we you comments in perspective, from last experienced related developed high We high our the can high tell

how current deal with loads, thermals, deal high understand we to sort So of those to with how things. the the

gain we the make wanted that saw because So content definitely, We we will focused in move we that in biggest to the as MIMO space. on market. sure were

Operator

this any to for to time, like turn at remarks. management back I'd And things closing

Douglas DeLieto

you call tonight. Thank for our joining us on

to at again, good listen everyone We will be night. we Thanks Investor invite via and presenting webcast in. conferences upcoming have a and

Operator

all you thank does that Again conference. us. And conclude today’s for joining

Qorvo (QRVO) 29 Jul 202021 Q1 Earnings call transcript