QRVO - Earnings call transcript Q3 2021

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Operator

Good day, and welcome to the Qorvo, Inc. Q3 2021 Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Douglas DeLieto, Vice President of Investor Relations. Please, go ahead.

Douglas DeLieto

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

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

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

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

Bob Bruggeworth

Thank exceeded EPS. you, joining our for on Doug, Qorvo gross and margin and thanks our third guidance call. to everyone revenue, fiscal quarter

and customers. pleased with team network performance. by communications. and approximately double lower supported data, are was XG in growth operating smartphones, Qorvo's trends. Qorvo capabilities multi-year opportunities technology to across upgrade for supported The performance machine-to-machine The year-over-year. markets beyond was set markets executing more presents long-term are by are In Our and durable our XG advanced also and very smartphones, latency cycles units is with we well drivers broad-based

rollout remote of are industrial growth We expect the connected cloud industry and analysts early Wi-Fi, categories. Wi-Fi adoption In we be homes to IoT, technologies increasingly will other to smart in expect medicine, rapid car, critical gaming, our X and continue.

requires products filtering upload optimized X and download and bandwidths in Our filtering wider suppliers manufacturing with Take, architectures the next-generation BAW enabling tier complexity efficiency. large-scale faster speeds, sold to markets, of dense is increasing performing, higher form This traditional while improving within better for smartphones phones differentiator. over XG. making XXX densely were higher XG the in next-generation functionally require path. frequency integrated of more performance, in are beginning the for dual-transmit solutions, and BAW-based specifications factors, example, receive modules front-end met. Wi-Fi and demanding expertise. proven million more high-performance Industry capacity is XXXX. transmit diversity estimate migration functionality and be Across and shrinking receive-only increasing added must our favoring for multiplexing proven from XE, system analysts as Dual-transmit a is This more architectures solutions there premium integrated

approximately we XXXX, For million forecast phones. XG XXX

from shift integrated Within double. a mid-tier, these $X products XG, of can is including to approximately the versus higher-value solutions. content our including in to content, addition XG discrete is increasing the where $X highly The phones, front-end content driving

for doing challenges. Qorvo For all Demand a front-end offers designs CMOS size, the shielded been with ultra-high and low, are combined including three, complete and When customers with control these integrate in performance. reference minimal antennaplexers band and dual mid-high solutions, LNAs connectivity Qorvo the and increasingly customer placements modules, to filters, compact main PMICs, placements. tuners, sourcing solution path solutions. power compact switching, time-to-market and now, delivering the our customers world-class performance was XG first amps, In fully we ramping has so, strong address

result, we customers. increasingly our with a enjoy As relationships collaborative

to supplier Award. Excellent awards. annual extremely recognized Joint we for supplier were XXXX. manufacturers sole Android esteemed quarter, win Qorvo by Development with selective leading RF electronics OPPO's the highly Quality were to We're And we vivo's of sole the win proud was Award two honors. During the both

complete we I earlier, solutions main path basebands. As shipments our the XG across of referenced the leading during quarter, increased

our new We upcoming launches. support complete main secured of design next-generation also wins path in for XG solutions Android

smartphone For first path, mid- the generation we the shipments high for and of module leading launched bands dual diversity our connectivity the to commenced and Android manufacturer.

began Ultra-Wideband, our next-generation and Android OEMs, production XE We reduces which solutions In Wi-Fi Wi-Fi in to Wi-Fi, band also shipments released bandwidth process, ultra-high BAW mobile XE increases of insertion system applications. loss, lowering top a include we mobile, increasing latency markets. our to enabling we and range fully capacity IoT and location a capabilities in In ultra-precision in automotive supported mobile solutions, open, extended devices. and smartphones of applications

been use platform, its of C-VXX, ultimately in Ultra-Wideband connected management, point customer the broad for proliferating capable automotive power including Diagnostics or to RADx, enabled initiative, testing GaN low means defense, pending in Food quarter, Authorization range comms, X proud by testing complete central able a may for the and channel representing of approach accurate diagnostic of of multiyear we're the capacity. smartphones support applications, antigen Rapid exciting testing smart we appliances. at providing believe of We is continue continue Qorvo. Ultra-Wideband new growing program, and currently we false a broad Acceleration a levels tracker studies. Wi-Fi sensitivity to speakers, Elsewhere devices. an high-frequency tags, Wi-Fi a by in other BAW very this National adoption to Qorvo's opportunity our of and trends, to BAW. of Emergency technology and demonstrated deliver catalyst smart from of engagements high our and to very be readings. selected in including range Ultra-Wideband testing, COVID-XX and consumer have IDP, home platform and of a be Institutes producing quickly In solution this with TVs Omnia This partners has the care. evaluating the see and levels specificity believe sensor We ecosystem will test IDP, we XG, range Use increased broadening During Administration. to lab we ultra-wideband. are In and a accuracy test applications, Health Customers will smart add radar of That Drug it's results Qorvo's programmable XE, clinical for

have and Our of to the done XG in GaN stages continued and support see and are team momentum has an continues rollouts consumption, we PAs. modules, in station selected frequencies developing Today, base migration OEMs the to deploy. and signal We've components job ramping to deployments production supply we as our products outstanding the been XG higher early initial small we strong supporting multiyear GaN to in and on by power bandwidth to multiple addition PAs focus Asia.

design deployments this secured base XGC in are multiple to the During later wins with the band the process station for expected which U.S., and in support are quarter, OEMs year. auctions initial the Qorvo spectrum

and supply filters and such Wi-Fi shipments we XE In Wi-Fi front-end for gateways, We also to and game products initial ZTE, OEMs, qualified Performance selected multiple a we to XG control. Demand strong rollout for charging and conferencing automotive continued received applications supply solar in MSOs And the are Wi-Fi X routers to support of and wireless, our portfolio software, and of the achieved during multiprotocol maximizing we BAW as defense low-power high-bandwidth retail were SoC In X Award strong Best for C-VXX international manufacturer communications connected strength X-gigahertz Audi, our base selected XG In including recognizing the radar growth defense, the products from our Wi-Fi leading early has gaming. for stations. sampled across low-power domestic still Comprehensive remote LTE, applications and X-gigahertz throughput Volvo. been range XG custom and as solutions video and our online deployments and the television In ramped our connectivity, X in segments. Wi-Fi and Qorvo was customer modules enabling radar BMW we programs. phases. see car,

Before in workforce. outstanding environment customers' a support delivered say a December Qorvo's and I'm want The results. dedication responsiveness helped dynamic the their quarter. about success. in to Mark, and They proud I word to over handing of the quickly adapted extremely team call an performance exceptional to our

and with out Qorvo our and well-positioned X connectivity globally, reach. is to customers and As ultra-wideband that, expand I'll rolled Mark. other And the over hand Wi-Fi XG, protocols technology are delight to XE, call

Mark Murphy

approximately everyone. revenue the midpoint XX% of last and good for Qorvo's versus third $X.XXX fiscal billion, XX% for year afternoon, million Thanks, was above up Bob, million adjusting the September quarter. sequentially, XXXX or up $XXX quarter our and the $XX XX-week guidance,

sales, $XXX strong our million is products the the Products and due and manage than sequential development improve on and the quarter million fiscal reminder, and inventory XX-week XX-week results. in end quarter largely of smartphones. programmable December and $XXX a the and and margin gross on from of typical million mix seasonal demand drive expected Infrastructure ongoing expenses volumes, yielded IoT fiscal September revenue a a better programs. double-digit mobile carefully timing versus demand As Non-GAAP revenue the above to third was inventories costs. year $XXX the XX.X%, power demand at was with productivity to growth, combination of operating record year our drove a market in better-than-expected quarter markets. to defense, effects was content XX-week quarter. In guidance which Wi-Fi The last of were XXXX was XX% quarter efforts and XX.X% quarter, versus management third our up the higher of growth on portfolio and and ramp XG Non-GAAP due lower-than-expected robust year, Defense price and manufacturing

As free CapEx $XXX flow forecast guidance. quarter earnings our Non-GAAP quarter $XXX the levels of cash yielding operations million, above midpoint in was quarter. Cash and was in flow guided. from was was $X.XX of the million share million XX.X%. to $X.XX income of million million repurchased OpEx the diluted $XXX the $XX of quarter We and the and of up third a to flow in March margin cash $XXX result, per previously net we during free pick shares third

notes retired earnings XXXX As discussed call, on our the quarter. last the during we

XXXX also and of with billion the $X.X the We billion ended notes. remaining of debt We called quarter $X.X cash.

technology, and flexibility, inorganic our low, to power our cash customers promising prudent XXXX we developing biotechnologies, and material have leverage long-term other and our BAW, GaAs, late making free supporting financial MEMS organic we end, can and that fund and is debt GaN, areas. With focus our technologies flow of untapped. packaging investments other core SAW, maturity weighted and no is maturities. that growth. programmable support To near-term UWB, and continue Our on advance earnings average remains revolver we The management,

Turning to our current quarter outlook.

guidance. of gross $X.XXX non-GAAP per midpoint earnings XX.X% We and of billion, XX% margin to billion $X.XXX at expect revenue $X.XX diluted non-GAAP of and between share the

midpoint In even outlook stemming IDP, and infrastructure customer March firm the demand sustained year-over-year. RF the demand million upgrade demand sustaining in to up for we driving In approximately provide signals and content. confidence million higher quarter, mobile Wi-Fi approximately cycles. Our base remain project current demand reflects stability $XXX revenue broad XX% is growth markets, $XXX current multiyear by at quarter of or mobile, and customer XG in our quarter The driven other build-outs technology strong We as in outlook. uneven. forecast be adding of from XG over double-digit our complexity X the and breadth revenue

basis the in the midpoint. of in points third consecutive gross March the is are increase earnings quarter projected margin million. quarter the discussed over to March Our last guide operating on gross call quarter XXX our quarter. be At with expenses margin to is midpoint outlook operating up and year-over-year Non-GAAP to at line March XX.X% around over $XXX guidance, our margin the for forecasted

for integration Our the more clearing built critical a XX.X% footprint. we laid With the leveraging of technology success was at out margin the now broad operating of margin previously. and growth, growth lower outlook trends advanced year we're other end midpoint, the market to is customer Qorvo robust end model markets. focused the XG in for and

$X still to step Capital multiple and work forecast XXXX is we of up year-over-year. improvement Our better we rate and product continuous quarter share is and will year. to XX% midpoint fiscal non-GAAP current supply tax over culture or We up needs less the below X.X%, is estimate $X.XX our in per to support Currently, agreements customer below We year demand earnings project than the sales to approximately as fiscal our remain this long-term quarter quarter X% project in our $XXX March cash million of thriving. year-to-date March with billion fiscal free intersect nearly full near-term and our XXXX. with flow portfolio matched customers. of EPS at CapEx expenditures or EPS be guide,

quarter Qorvo to results join through during to Wi-Fi, a markets. technology continues our December Qorvo defense to while like growth continued a for premium spectrum time. employees outlook delivering March quarter in the XG, challenging of and well and Bob other As this customers In thanking I'd operate their in IoT, again show, efforts period closing, broad

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

Operator

you. we'll And our Gary question Fargo [Operator take Instructions] first from with today Wells Thank Securities. Mobley

Gary Mobley

for Hey guys. extra outlook. relative think a out the the question, for mobile XX% business declining out your to taking out even growth point your be in smartphone of what appears and I course, I calendar Thanks market for strong smartphone first XXXX market. strong year backdrop in adjusting a And, of performance and wanted a on week. business, my it's to that rest after to the congrats XX% to quarter calling of

So content market to the extent by my smartphone And outlook do market year question calendar was is, that how -- in To relative extent how growth? driven those to variables by what XXXX? your share? impact is driven does what XG overall

Bob Bruggeworth

compliments. go Thanks, and you Thank good Eric your let that. address ahead question. Gary. That's I'll for a

Eric Creviston

Sure, yes.

As comments, Mark had Qorvo said built was XG. in his opening for

technologies is of our which the new their time well. strengths, driving technologies team front-end a help the all achieve the and handsets really in-house. the with they're trying drives in complexity the have and to think building that relationships need has leading them our we think integration, the integrating of right for I of I just all products maturity goals with then done with bringing well given and the job And very customers good as RF right naturally towards a to to what do their

got any growth. So together the not, it's really We've well. And content tailwinds it's over. the coming of means, by

you next virtually year. we've new technologies got year And we're enter coming As even early of as know, innings. this throughout in stronger out our the of generations get very to we all

Gary Mobley

when with up mind, Okay. point how have more should our whatnot. be question we'll all we benefited? at some what moving in start think I this for normal progression for and activities in And have about your ways what freely? had that a work OpEx step you Hopefully, follow-up we some might resuming calendar in In And point? ways traveling at year, in Mark.

Mark Murphy

less obviously, We've, is inefficiencies some some material. everyone which as additional as incurred experiencing. can are Gary. But costs. know, There is Yes, you everyone travel, also benefiting be from

it of lot a So out. washes

we're company those year OpEx I think look -- of to company innovation, would and continue best-in-class likely next at this at to of work can. is to levels it call going we've as to operating and be relates And OpEx the the would heard, costs. as leverage I forward talked maybe sales best XX% several We just a about over for DNA be that expect going going as you space because get running as year. slightly to we're about we be -- the we're what below. we lowest we're to than higher to in points the We're never the so years,

I think go annual can you what basis. an as forward So on that's look we to forward

Operator

with Next, we'll hear from Morgan Hettenbach Stanley. Craig

Craig Hettenbach

a made signals. been smartphone Mark, has just I the thank question tight. a you. broadly, you capacity comment overall that market know We demand firm on Yes, had about pretty

step-up also that at monitoring kind of just terms much so help demand does And And in those XG of driving the of some growth? you're things are what signals? looking in the how in

Mark Murphy

of spend Year. a New and shakes you see, Chinese good. -- firmer inventory normal We've very out than -- result. see signals. for pretty a Pricing And very we mentioned, maybe is And as how levels post firm a signals the got And strong say, healthy. bit got We I as very see Craig, very the as out customer I'd we'll are lot demand fortunately us, start. are a quarter, demand Yes. broad can we've June to But -- our base. very time I'll confident. channel's we're demand

our products good across the So have -- and the -- visibility. and we given very market, see space and customers so position in

early rigorous X% XXX ended So and but year, use we assessments, where off called this last we're we to but we best about it Further, generally only million the number up. explains internal why we and close. views particular external We not about XG we quarter, that's very were that on handsets our make the use can. balance call

somewhere March be if up quarter. so, And in good we billion that June we markets X then we would XX.XX. about And have feel the we'd near the guide in the think hold quarter,

Craig Hettenbach

that of with Got then I'd that the And are as a But to Decawave keep on terms now, design Appreciate year? milestones ultra-wideband get to it's to thoughts today. love follow-up, you're what acquisition in your color. out. relative few in a know some And is just that to for the we how playing quarters of it. stage as just mind kind board I and the of market opportunity, what reason seeing. just through the buy go mostly for

Eric Creviston

the as with to the playing take development. and We're technology than we thrilled design at and the really out, bringing well. happy tier. This top integration I'll had hoped. to for They're and customer customers team be of Eric. We're good, relationships response the is it fantastic scale just least the better the organization the pioneers so or of a and take It's to far from as that. the

that's helping course, -- addition So XHugs entire us. of a has stack the give the well then software acquisition got of to and as we've huge been

of happened closed continuing that more providers. the cover critical now, the all one to has more things enablers the and and with since we opportunities. all that the resources ago just are well. to hire So, handset nearly We're year a that's acquisition invest But interaction is mobile much really working

that lot up is then a bring. as And uptake this next expecting. and we're generations forth to of all lining engaged looking electronics, expected. with the to Everyone to and in to put talking lot base and And the that that, coming today we're well, had revenue Of we of leading auto a seeing handsets have we'll course, that's at perform are devices right? least then into the as talk home the then that the industrial are is grow channel consumer smart So people handsets, what so top all of UWB IoT we're with those devices that's we're as of auto so we on basically, And the continuing so to. of well as well manufacturers. going of

it We've for So a the really, design got really equation the the activity, we're takes terms lot. another is adding reception to and going be to I level to just but going the think, software it's to on, a industry. stack able what of in the strong lot do

Operator

Cowen. We'll now hear Karl Ackerman with from

Karl Ackerman

afternoon, you I taking questions. two. for my Thank have gentlemen. Good

margins. does in mix you First, that appear not March working but gross are a just against understand on I volumes to factor. be

so that influencing guess, other or costs manufacturing are fully competitive is appreciating there your outlook? And not I'm factors maybe at play I that

Mark Murphy

Yes.

about quarter. top is of Mark. basically The So Karl, this on is last I what outlook talked

become we've to to at we're pretty being be. forecast So where good able going

quarter. this missed acknowledge we by December Now, margin quite we I a got think that to

that to So understand to quarter. March think need I the in order you understand

where a productivity, pleased We've the technology, what's by execution our to that with And striving landing. really It's quarter was work. And actively the conditions. discipline. years market quarter. team. hard it's of just the intersecting it's to clear. really years with shows do December and it's I in about about the driving capital be of possible business. about isn't surprise portfolio, want we're we more working approach talked the what And quarter December So than It's exercising investing much the we're those things favorable excellent stronger the December And the quarter expected. over March

a lot right XX.X%. December the about just that So and quarter the went is in result

the customers environment that stronger with. the towards is us fixed products to market's Spend helping is than that the serve were tough stronger associated time outlook tight. team helps more we the control doing And get modules And and a BAW-related pulling us The move I noteworthy, importantly, mix, has remains normal. integrated that's in integrated and We're wins. our and us bit, stayed particular mid, to other best high-band and to volumes environment I the our and loadings they're mentioned than strong, in operations can work the operating advantage we continue expected into we sustain favorable which guess, pricing given that and is greatly. some then earlier, them integrated absorption. modules cost excellent, so more expecting So especially product. to

greatly of -- items. So number there. And the other and of went got, we We products had the lower differentiated inventory then then charges are a quarter, highly we're of right number that other things a way. expected helping. another Again, we've other And yields. generally, there in course, benefiting favorable are items favorable than

cost down trying on still keep we what March We gross margin that which do term. look so to a been those. but the margin is points check some drop margin low, XX.X% curve basis I factors. keep products, on forward show longer today. We're ramping we're guided to They're to to lower said. sequentially expansion, we've working a striving due up of year-over-year, expect to The to down June XXX And do We're are the we've other in so to inventories we're March as the normal to That's XX% we quarter, as important some is will to defense quarter, -- where absorption. just that that number about But quarter As may all we that assumed a -- continues including then assume way dynamics probably on inventories that. write-offs well, the quarter. state. more can't things there the other We And our had coming normal pricing of just did December some other less and in go mix then some some and products turn those are quarter. be things. probably into actually will March these and the more they environment currently into the

we it good have guide at we the I'll what we that. did, the -- about and comfortable feel So about with leave

Karl Ackerman

Mark. helpful, Very

For your that elephant perspective both whether the your just you how peak. is order arguing I'm you've my many some them book follow-up, it across from be is near-term? peers, you outstripping the helpful your discuss managing smartphones then strong if markets not demand described, your results X. in to with sustainability, room could with because that and outlook pull a be asking And the about this and ability customers are you IDP would appear multiple But is described, to an multiple with second, very across quite to supply of investors as this Wi-Fi but you share there

you would those, if be discuss Thank So that could very you. helpful.

Bob Bruggeworth

the from simple as Karl, it's one, many when Number believe not this yes, as supply your is in as answer working best because tightness in people is the chain. to what my question Bob. I'll usual, business. externally you're do there

in I that whether is the think quite communications industry industry constrained, well-known automotive. it's silicon that's in or the

Mark last getting how with we've agreements left comments based pretty handle do in customers, we mentioned many externally in turning our just people I'm about they in the feel his about, for -- that on our that which on and that we very fortunate been confident that in market their governor handsets. of pretty this on so feel that. get. we So team to confident through done But long-term is and the number not we've XG on when us some has been what's to it relationships our good believed revenue have excellent opening pretty demand. we with and going our Mark ways, suppliers out be comments market that our going situation. way a We've quite And was we And all on feel also a in that projected many still the good agreements model, the the there year, talked way out

then back communicating we client looking market third content, models, to already if already we three every Wi-Fi, from it that lot X, at when than being the Wi-Fi for room, main two eight adds which So streams more a to at in you've at channels looking to doubling, point. look commented migration, the the as and orders XG our on the in going stream, have, for it's using streams, X.XX access the a backhaul feeding of pod

we look when our they're remind feel to who all And orders, using I integrate to So we at sudden was change at the components. customer and about everyone, making Huawei, this commitments the want good us. pretty not best-in-class

local As you U.S. of guys use tried about to lot government remember, sources. we because rightfully how and that started to they've -- talked a so, the

them. would people it if was components, to the share picking are While have that their up are we said Huawei available using best-in-class which is done what

going at did. We June, as he can Mark look we which everything already said, comment feel that's we on, when on So good.

So today, see very pandemic good what communicating and think the feel all it. New we're Year but those good in I we'll the a vaccination, as we about out Chinese about how year, lay sell-throughs we in is conditions and

Operator

with has question. Sachs Hari our Goldman Toshiya next

Toshiya Hari

for the the strong and the Thanks and outlook. Good question strong afternoon. on results taking congratulations

Bob Bruggeworth

you. Thank

Toshiya Hari

then Yes. Maybe It's guess, clearly thinking supply products first guys prior for business, sort I But quick the your But about to addressed other business? mobile mobile a just extent And seasonal your Bob, what I one you odd kind June can usual the mean, new how Eric. comment, than with are And to this year are than you about better and September? in -- in but later follow-up. seasonality how moving curious, constraints introduced you very parts. of your question. response being of about you potentially March, and I thinking and for obviously, got thinking a you're

Eric Creviston

right. Right, Yes.

is from customers going clearly depend bill to the just really As that And the chain of near the get. network supply the rest of upon you normal. it's but through Bob's our in point, material have muted March not pointed, seasonality our own, to to supply term, our

a of to few sort demand about -- quarters. course, be things bullish up off. for climate, are a And excuse limited take again, once next at to supply extremely going for me, XG really then it's So of the fully opportunity, opened the we're least or

so, And year. XG that's double we'll think case, see in why we the even still worst this

Toshiya Hari

how entirety as in XXXX Thank got I Mark, point, you. when margins quarter-to-quarter that think thinking but sort of realize of on? as basis. December. lot you. follow-up better. been a can or about it's a parts, structurally it great job lumpy margins? cycle, in be your Or on guess, calendar of But are moving my multiple trajectory pretty we and clear early, levels then you But relates approaching kind and you its extrapolate the to very it. XXXX, you've you margins, about peak-ish of through doing can gross you've gross Got gross are To Thank maybe It’s that on kind you're I margins? And fiscal sort

Mark Murphy

because year appreciate Toshi. a Yes, calendar March question, And fiscal fiscal, early, bit margin of before fiscal earnings XXXX a this I year, fiscal details of so our -- It's talk so I we're we wrap call, sort fiscal on year just margins you these expect bit get time to XXXX XXXX. it's as gross we that. calendar or and or little next overall, when get XXXX. say, fiscal start provide maybe into a But up maybe more we'll about next

have as about. talked and here demand's sit part, Eric most Bob today, we for the As firm,

engagement business broad we products the XG, believe the you grow quarter And reflected to that Wi-Fi, in markets is that our technology obviously customer those that that and ongoing know those serve, March positions all guide. we and really We then other we markets, and markets. defense, well us IoT, Our expect Qorvo's results, December in multi-year. see

eye kind as about comfortable confident $X channels a reasonably side we'll it. the at quarter, again, constraints we've So Year keep near the situation Eric than see quarter. We're very June happens more supply on on about end feeling New what for of of talked And point. just Lunar a mentioned, an we constraint other of but billion this watching the see keeping demand

a planning the certainly, while just the of P&L, give a rest you of now. of in difficult P&L, business to the OpEx side, and happens as absorption, so inventory, anything. on mix we then forth. it's rest the to the the make rest We're number factors. the outlook, of loadings future. in our imagine, just the investments in On the just and effects lot to on cycle want the yields, There's more What the year effect can And

any We've and number and or results a guide given indication, the impact we revenue March the guide we've are factors need to given June going to So finish planning. a supply constrained. revenue just of

year. continue the year, cleared We I we and still above margins XX%. bit. we'll We a say that to margins be expect, that clearly, call. to We're margins. this operating I call this committed see on think for next But more price, quarter, quarter gross on expand see operating actually to to detail for work say And provide below down think going And the XX%. the operating cost actually margin factors. We that's again, we would below I see June June the mix, XX%. margin

Operator

Next, Charter we'll Research. Snyder hear with Edward Equity from

Edward Snyder

the for Thank industry? a is be going those China little of starts they'll on Are seeing is you your it Or for when a DRX. to incremental one-off $X or if areas, quite again expect kind DRX to they main bit it Are ET trend of and do I yet. of Transmit building -- you're picked has up now? going a expect a or sounds antennaplexers cooling Transmit the you the be be numbers? in to that that about DRX? And US a of productions is you actually $X of C-band? lot Eric, guess, they and if bit. in you TAM I the of to modules, James, very rural to the was And lot for the received because curious I'm part increase anticipate or a we XG path feedback Is to could, tuners, like some go And -- you a form? yourself infrastructure when secondarily, you're production particularly see the whole GaN here? of shipping so, do GaN lot much. MIMO will on not see think slowing There's kind Thanks. US and if been out using to build-out. And do or

Eric Creviston

of is And production Okay. categories. with This actually already Eric. the in I'll we're both go first.

the we multiple out. with dual a we antennaplexers of got mentioned modules And that's the crane BAW to called call of it, as recently. some to couple and in that in multiple we've it's you course, referenced then portfolio connect grow our marquee continue handset generations You continue modules. we've next dual connect the TX of customers, discussions. There's expect, to And -- years. launched what now And right process those DRX, of driving over

find dual we're module capability You'll the connect there. providing

been which exciting into It's to heavily BAW channels TX filters competitive. higher warrants, We've the it that's path, content year, multiple and been -- that and us because point, has looking at with really RX-only. this frequency SAW at So gets range. filter you're typically typically that your diversity looking

that's really a off emerging with category interesting it. and be it's So to new we're leading happy

James Klein

James. Yes, is this

pace record station fiscal to year. a business is base set for the on Our all-time revenue for

many support many, LDMOS. where MIMO been rolled frequency GaN of So we'll of guide to year in XX% that full the adoption has by about times in massive strength antennas Asia been major It we've over have over provided the deployments be was of And, and that many course, China. today. with year in full selected driven mainly the we been bands out up able

think massive the in U.S., expect I ahead, the auctions to Deployments we with those those next expect both through antennas of do the And GaN stages we and to in amplifiers. China years. and around and obviously, deployments early year, those continue in include as half. year, Looking will to And the and world the the to and start later C-band we power additionally, in nearly complete several close. we're of pretty second the first both start calendar accelerate then the the do go deployments to we expect then, during MIMO half expect XG slow in you're we deployment,

Operator

from with Kumar We'll Harsh now Piper Sandler. hear

Harsh Kumar

if I so execution. March been for Yes. normal revenue guys, results, think seasonal year in your solid guide, the on respect solid But guide with we I March congratulations less is seasonality. another no There's are guys Hey, this and the to point could maybe question factors to a I versus number U.S. you what was in That March. curious relative you had was China typical to one. assuming business? appreciate one. than for

Bob Bruggeworth

Thanks, We're business know, out not Yes. typical But, going our break as customers. it I going as off business much flat. mobile obviously, or as mean, is the IDP geographies guided. in business we Harsh. seasonally what roughly roughly down. to you be That's The mobile not is seasonality, normal. to

business that, Year the shifted marquee I we'll maybe we bit and way New a of think just layering of that. from answering timing China then doing already in we said like well. like questions, And on the prior years, phones know answer to that's little the But do how top I'd our see goes. Chinese is comments

Harsh Kumar

guys this year? seeing. you your And comment and was if you to Android I release, make fair. it ultra-high of, by in mid-band, in to XG point you're XXXX you band, in, mid-end some press functionality this phones if kind on this That's you guys, phones in a could wins what, curious band elaborate seeing are low expect the had and

Eric Creviston

Yes.

is this Eric. Harsh, So

we fact, today. are In phones into primarily, shipping these XG

more back complex was that move became integration then emerged, are for XG over couple new to when no take past the there years, bringing out looking really of the XG And towards high-performance began customers our As handsets. off.

to of band, right the we're of selling main the fully integrated XG low-band mid-high band, now. ultra-high handset and modules, So in including into the the them same lot many cases, ramps the support path, a all

Operator

question will Needham next Raji come Company. with from Our Gill &

Raji Gill

the congrats Yes. great momentum. on Thanks well as and

Just a question, again, on the infrastructure.

base to update next wondering dominance riding how the competitive have kind on half say, that of dynamics of, LDMOS base is kind adoption of on of, get -- we in China, had, the this rate you GaN And one that appear across of think outside You how GaN, think what wave. about the Wanted your customer? into station go to outside that as vendors as your proliferation I'm second been guys that GaN well. their we starting do side of in landscape? ZTE stations strong and really to other are year about year ramp the next those solution. going of It the other does competitors would

James Klein

with occurred is of antennas. We major OEMs. incorporated would we've of numerous for even all and Thanks question, programs what definitely We're being the the And and OEMs massive MIMO -- James. have macro OEMs engaged and Raji. production X GaN into got this Yes. really that those shipments consider most into across both Tier

say adoption the We've our industry. technology. tremendous bullish very would I about broad products. amount So a pretty of across obviously is And we're got

and time We've and cost. I technology, technology over think bringing of broad scale focused to in we in have range capabilities been over a are and our XXX GaN last products developing focus markets in and well on I the continue counted, that. and frequencies that on covering new XX really for years everything released like and GaN

So the are going all I'm adopting about and with markets certainly forward. very technology confident about that where we it excited stand the

term, to a for for it's and thing great IDP be I continue long the think, going So to company.

Raji Gill

from regarding RF Wondering For increase are the in you're content significant more last smartphones there as content thinking about XG. a increases, was the follow-up, this year, XG increases year my there marketplace. how

So coming the upgrade of cycle little base. higher a is a it's off bit still strong, but

So -- say, how from gains do year-over-year, content RF a XXXX? dollar about we think the and perspective versus Thank you. XXXX versus

Eric Creviston

So I you're the -- space, smartphone the space, at referring the assume to mobile yes? right,

Raji Gill

yes. Mobile,

Eric Creviston

Yes.

in to So XG in no real terms outlook. change the of XG transition,

XG beginning, additional worth you it said, the We I across $X that's tiers holding year content we out and phone or when make well. said $X pick think at of Mark a from anywhere XG-capable. Bob as then think, As to this

versus XXX had or TAM you'll handsets so, the year. change we another to But this XG main adder on actual forecasting. the have million we're difference what is, that in layered the And so no

Operator

will question Peterson JPMorgan. final with come Our from Bill

Bill Peterson

the quarterly Yes. Thanks guide. Nice execution for question. job and the taking on

First question for Eric in Mobile.

And mobile these Decawave additionally, how ecosystem? terms less drivers through too the in beyond you the other opportunities but as hoping You across talked we business. there's mentioned see the that look think we being help today, I'm for spoken proliferated can about transmit. the wonder dual win the the about you've design you antennaplexing, Mobile, break have customer, you new this in about this pipeline year. how out of I should is

Eric Creviston

Right, right.

as you just In year, look a make particular, differentiated highly bringing enable on but but So discretes will, towards only multiplexers going is cadence it's if into be as at that the fresh highly technology BAW-based products. can when help a that in R&D those with us team leveraged to regular we highly modules. coming we then our about taking integrated these also not well we're talked discrete now, antennaplexers sell

have can our to leverage or going be places are it we BAW and focusing large antenna, tuning. aperture to manage customers continuing clear their we're where tuning, take it's our at a we've antenna around leaders got franchise technology really on to we helping leverage tuning the And into that extent. So larger networks, we impedance modules then whether

so and of and GPS C-band forth. it's And bands for We added have be customers the more more a getting are talked spectrum CBRS antennaplexing problem that in new about. we've to bands and as new our and

that and we've but got very lot modeling around bring app a support technology a work of unique capability of there. and also lot there's to antenna, So

the two course, off. and in that's lot because an get of our these really, going very, which where it to of our now, is to of at, years basket driver. XG to take large as unequaled of very mind, to look no beginning we're a industry, large UWB, be more for and just broad So the in three next in question in But are years, on starting begins scale to low really a is opportunities a of ways. and The leveraged us driver complexity the we near-term, the technologies,

out look be two business. going If to from to it's years now, three of part our big you a

Bill Peterson

apologies, infrastructure. a multi-part down first, But earlier, question. a and Thanks And weakness mentioned and of just you've I secondly for James, for for, guide. think maybe the called defense somewhat near-term, it's guess, flat unpacking in I that. then you And

of we year, we market the it based as automotive should trend about growing? or outgrowing And still fiscal kind on as as as returns year? of What's seeing defense environment grower? I Is year what guess move through we to directionally growth and a growing? then if think what's the And still the within that, to think you're Wi-Fi? GaN should we So infrastructure XX% full and of XX% think that

James Klein

Yes. Bill. Thanks,

Certainly, As is be far as business as growing going Wi-Fi the in, about, quarter to bit. a we're current very defense quarter. will strengths nicely. talked Bob our lot a of But off

also is very like our growing Our several as well. Management business Power the nicely. business And of markets broadband other

of driving businesses those all up last the year, And history three underlying same few months the a business. markets And almost quite So we're think. for those if the the of three first kind compared of double-digits. underlying year you of are months up XX%, of to look almost I

quarters lot for got -- strength Wi-Fi each of a Wi-Fi and we've X roll quarter. We in ebb we But through business as out. our pretty continues to go would as say, significant a bit So flow I strengths.

the I'm think and grow. as and massive have MIMO, As to the of things and continue long-term, XG of of X, allow trends trends proliferation business, quarter-to-quarter. unevenness go in GaN of the some the are But still like far those we'll will great to the adoption rollout confident underlying the as very we that I Wi-Fi the all business

Operator

management for additional the turn conference today's question-and-answer remarks. will closing any will That now conclude session. I over to

Bob Bruggeworth

coming a be night. Thanks multiple the to invite Thank we again, Qorvo you and us everyone good for will conferences this investor have in and presenting weeks listen evening. at joining in.

Operator

today's Thank you participation. will for your That conclude conference.

now You disconnect. may

Qorvo (QRVO) 4 Feb 212021 Q3 Earnings call transcript