Earnings call transcript Q1 2024

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Operator

Greetings and welcome to Qorvo Inc. Q1 2024 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure Relations. your my Vice Douglas now Investor President, is to host, introduce DeLieto, It Mr. you, Thank DeLieto.

You may begin.

Douglas DeLieto

This forward-looking Thanks to that materially first call. from Qorvo's much. could fiscal will very Hello, results expectations. XXXX quarter everybody, cause our management's earnings to risk current that involve statements and actual welcome call factors include differ conference

annual the may We report these business published today, release in the encourage you earnings filed our XX-K to Form risk operations with review well on the financial risk as with Safe in because associated results. our Harbor affect statement contained SEC and factors as the our factors

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

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

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

Grant today members team. President Bruggeworth, Bob us and CFO; and President Vice Joining Fullwood, Dave of Senior of CEO; Marketing; are and management Sales Brown, other Qorvo's

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

Robert Bruggeworth

May provided our EPS margin Thanks, above Doug, on and welcome earnings the outlook everyone XXXX first were all and we of to call. Revenue, call. Qorvo's quarter fiscal midpoint the Xrd

End market our consistent with expectations. demand the was in June quarter

continue consumed demand. undership to end and be Qorvo the to Within to ecosystem, channel continue market inventories Android

inventories and in September reduction year end. channel the continued quarter We calendar we channel see Android by in normalizing expect inventories

infrastructure. offset across areas relative automotive In strength consumption some and markets, inventory expect into these XG weak inventory in year. to consumer consumption other by defense we next demand and like in extend and markets, of In the aerospace markets was

at markets the diligently growth to it product recover. new drive same inventories designs. down as development last in in to customer time end and us while and drive fall customer channel Qorvo enabled has incremental aggressively securing prioritizing for large since worked multiple has growth markets This Qorvo positions programs

segment As past, double-digit Design programs in double-digit we across single-digit Analog Cellular. Connectivity HPA and strong targets quarter in growth multiple growth markets by have large in growth Sensors, for defense in and diversified in Qorvo's the or included and years. growth wins the High-Performance stated were customers and mid-to-high during extending Advanced

solutions, ends design a of In connectivity and activity X RF Connectivity IoT touch and span front sensors. force-sensing variety Sensors, Wi-Fi including highly-integrated applications

range growth with We of like CSG and have activity a broad we growth areas in design increasing new ultra-wideband. pleased and drivers Sensors in our are

growth, Overtime, be all continued HPA to across we and design margin and increasingly favorable see diversification Cellular, to Advanced activity CSG In OEMs. smartphone leading expansion. contributing

XG smartphone and our will several our capturing smartphones XX% content growing smartphones XG expect XG the Android unit enter our In in approximately and and and are units content CAGR Android largest new we to of as XG double-digit to We XG at customers transition XXXX, be for Android next-generation we calendar post SAM. growth are ecosystem years.

US-based to supply turn to upcoming ultra-wideband Qorvo tier-one connectivity let's an by Now automotive launch EV quarterly automotive was highlights. In selected some by for applications, manufacturer.

will We placement ultra-wideband typically plus the growing each are inside five key this automotive pleased content with placements where seven the in and one opportunity in to content win fob. include car the

cellular antenna for VXX to including of coexistence modules steering use a and touch European-based level wins door also multiple sensor display. interior These a in wheel panel, wins applications selected console, were provide force center a totaling billions supplier are automotive by filters major of by and OEM. dollars. In Automotive end Connectivity, front we leading multiple smart design detection We secured enabling design range BAW

include we for an access our front radars OEM. automotive DC onboard a with automotive receive and VXX major US-based expanded opportunities or to XG, key automotive to Wi-Fi car ultra-wideband amplifier connectivity, in Qorvo's and RF for smart secure for fobs radar Lastly, ends interiors, win design and DC automotive supply footprint converters, chargers, sidecars.

we Wi-Fi Wi-Fi, and X access design of X wins our for In with secured gigahertz Wi-Fi coverage X.X filters enabling gigahertz, bands. point X BAW several gigahertz, providers full X

paired sampling began FEMs X multiple our which tier-one for also with next-generation Wi-Fi We chipsets. customers

certification support first to devices. In networks. of and Connectivity our for were $XXX we whose market integrated opportunity ecosystem business, expands home installed smart our X.X and exceeds top for connect base customers concurrent achieve Systems the home gateways This among Matter solutions our million

In servers to in silicon to power devices carbide AI for Design multi-million applications. we supporting increasing dollar Qorvo's booked a order other carbide base support and customer silicon devices power continue funnel silicon supply carbide, expand center is customers. win we our data for our

agreements in place In supply and we Wolfspeed Siltron, addition previously SK to the with have agreement announced also Coherent. with

lower-power our leadership DOCSIS with sampling doubler. of hybrid solid-state X.X more with we delivers extended applications, in competing than RF broadband solutions. For X.X consumption solution power our power gigahertz customer This

X.X In X.X Infrastructure, massive that gigahertz XG Cellular system MIMO we XW PAM simplifies released to gigahertz, design. a highly-integrated

cell sampling also began C-band We pass band discrete filter first industry's for small BAW radios. the XG

PA, process This we gigahertz X footprint. integrates module, highly-integrated and communications, sampling receive power. maximize efficiency XX first packaging solution LNA gigahertz in Qorvo's Limiter. XXW end technologies to miniaturized of delivering transmit to a transmit defense began It power advanced switch, leverages the wideband and For front industry's the

functional business of is solution and The our form factor critical in one-to-many. given trend and especially aerospace the defense density of our

be manned to will more many addition aircraft, drones. In there

satellites, more volumes. systems electronics communication integration greater upgrades system will requiring LEO large and be In across addition incorporate future many higher These more there satellites. to keyhole

which path OEMs, With in below, highly high-band currently in sampling that newest smartphone is Qorvo's customers, we Android offered two mid began placements. single a and placement main smartphone functionality integrated combines PAD,

high-band that XG a mid, phones. This This range technologies, follows process we massive path PAD XX% quarter main for area diversity design including by new our for leverage architecture of BAW bands. the our sampling and newest mid reduces heels combines time-to-market filters. Qorvo meaningfully high receive and on began content simplify of and surface the the and announcement a SAW Both last placements that to broad decrease

commenced linearity, deliver solution customer the industry's our sampling we with which Lastly, tuners, and best-in-class major smallest antenna of compatible size next-generation all chipsets.

I want excellence. thank for team continued Qorvo operational to the

have clearing customers' market. We while inventories new addressable and developing our that made our enhance new design significant and progress wins expand channel securing products technologies

are our at demand. In Qorvo's in largest quarter, end-market products closely aligned with primarily a reflect new the Android to that Later reflects channel revenues in the our September expect customer. year, healthier we outlook ramping more shipments

investment encouraged seen growth and we positioned far as very and we've activity customer our are growth this by design favors expansion incremental We for year, as are high markets growth margin so mix we recover. end expect businesses product revenue

And to with that call I'll Grant. off hand the

Grant Brown

gross afternoon, Revenue results and Relative million, was May quarter despite provided earnings on of was expectations non-GAAP margin good everyone. channel EPS and the non-GAAP and exceeded the was the $X.XX. midpoint call, efforts. our $XXX reduction guidance for Bob, Thanks, XX.X% to our as inventory macro-environment

midpoint guidance in created remain product to our Consistent during levels which points. modestly, sequential XXX the gross basis improvement and an margin but of was to improved approximately impacts mix. production with due higher of guidance, upside production quarter our levels underutilization The factory the below and

our expectations. were in line the in expenses with million operating approximately $XXX quarter Non-GAAP

multi-year opportunities as invest all support as segments that to in in that development continue new directly our the We growth across three customers. targets product teams well

and out non-GAAP Breaking modestly operating million margin operating In relative quarter. segment, was was or CSG was each quarter total, which sales, XX%. income to the XX%, ACG last was increased in negative XX% $XX X% HPA of by

the Qorvo income by During CSG million. Biotechnologies $X quarter, operating reduced approximately

for net $XX million share a income currently of representing As reminder, the process this Non-GAAP business. diluted in earnings was are seeking $X.XX. strategic we of alternatives per

onto were was Free cash statement. Moving expenditures capital and cash $XX million the million. flow $X flow

million flow, uses $XXX $XX.XX. factors. the price cash repurchases During free leverage, an pace cash is low alternative rate our shares on of at average and The long-term quarter, of worth outlook, our of repurchased of and based other we

Turning balance to sheet. the

no commentary driven our inventory Branch million up ended with during our net $XXX maturities balance had of the was $XXX our benefited the which As the of and of by our completed billion $XXX outstanding campus, the Cash call, customer. and and from million million cash with from near-term of sale $X ramp we Farmers equivalents. our was seasonal quarter-end, debt Consistent quarter. prior to earnings quarter largest expectations approximately at

quarter between XX% at our Turning non-GAAP plus and the expect current non-GAAP XX% outlook, of per $X range. revenue diluted and to midpoint $X.XX share or margin approximately earnings of revenue $XX of the minus billion approximately gross we million, quarterly

factors. environment, further consumption of contemplates inventory the demand outlook and Our current seasonal channel

operating ongoing costs any of for divested. but Our divestiture related expenses has includes business to non-GAAP excludes the the until guidance Biotech fiscal it QX

$XXX We million. will expenses the September in quarter approximately project operating non-GAAP be

In productivity initiatives. technology growth-oriented and use core enterprise-wide product our portfolios, We're business. are the we investments targeting the and simplifying to addition systems rationalizing upgrading to across run processes and also we

present growth standardize and profitability and We tools future upgrade, around and will enhanced we productivity other operating latest will multiyear investments efforts support as expenses. These these best modernize non-GAAP as the practices.

$XX income earned operating or reflecting on is items. by along the line, to debt, gains the losses, interest be paid balances, approximately interest on with cash income our expected million, non-operating other fixed-rate Below expense offset FX our

be XX% is within tax-rate of Our to non-GAAP XX%. for expected fiscal 'XX a to range

a support in ramp balance will seasonal our inventory largest our as we at quarter the expect We customer. decrease September

channel terms were In components of the the continues to Inventories approximately Android quarter in environment XX%. reduced channel the during inventory, of by improve. our June

to quarter. expect pockets Later normalize. quarters. Android channel inventories greater will the follows in We than prior will This XX% Outside continue year, They there longer this inventories smaller inventory. two take the ecosystem, are this decline anticipate Android digest. channel channel calendar of will to reductions of we

'XX from is full last revenue we reiterate, 'XX the year, to there growth content dollar fiscal customer. fiscal at be full largest fiscal no and expect quarter. will strong the forecast 'XX provided commentary our to benefit change To For above

variability For primarily the tracking utilization quarterly and fiscal XX% margin expected is a full approximately year be with on non-GAAP gross to mix. basis 'XX

based sequential the QX be expenses primarily on gross to development year, Biotechnology to the $XXX and with are $XXX related business related timing initiatives, quarter as items. in margin million our utilization approximately investments improved During second the expectations incentive again financial productivity as expected spend, per compensation QX, to QX we Non-GAAP of during of core fiscal of variability well for half timing in QX operating for expect and to systems disposition in the million and other performance, related mix. the declines and product

Qorvo segments. our growth across three enjoys drivers multiyear

and exposure a are We're markets. large uniquely investing to growth. grow businesses our on large diverse are of portfolio accelerate growth and year leveraging programs drive customers positioned to broad customer to and in broaden in this leading market content We technologies we capabilities across outsized

the At this open you. questions. time, please Thank line for

Operator

you. Thank

question-and-answer go comes We first be [Operator of will The conducting session. ahead. Karl Ackerman now with Paribas. a Instructions] question line the from Please BNP

Karl Ackerman

questions Yeah, if gentlemen. Two I thank may you.

to costs First, if were secure the for forward? And what could your I and occur comment higher ability gallium along to substrate germanium you your are pass on products? ability your on going thoughts guess that to substrates

Grant Brown

is for It you needed took effect Sure. will and acting observed ability the wherever question, customers' Karl. with have and I orders us We or Thanks dates. was to ops in lead suppliers for advance ban for on suppliers not it increasing close not meaningful our our the to raw We access sales This to our times. have notable yesterday, demands individual suppliers, credit coverage needs have do communicate our down as team believe purchase but in export remain we committed their and with impact. customers Grant. a know, and assured delivery of communicated our ultimately with contact behavior the but quickly direct well any and supplier currently supply support they in material changes and our near-term

of pricing, anything haven't again, as had today. we there terms In abnormal seen of

Karl Ackerman

ultra-wideband, just you guess, out your the helpful. if could could discuss you prepared second. carbide, -- I a sales. be of zoom your the you've automotive force-sensing. design Very of appears portion remarks timing hoping in wins for I could I be maybe mentioned understanding of automotive was represented was across that I a to expanding. mid-single-digit many but that My silicon applications really, kind clearly wrong, could

whether could business XXXX? comment by you automotive So and Thanks. your you for doubles maybe

Robert Bruggeworth

the is This question. Bob. Appreciate Karl. Thanks,

our out, it to the faster little applications expectations the bit and comment continue get But I will gas this prepared We've visibility you you more, following models, know, the out industry today. but that some bit traditional win, based As press about plus seem manufacturers visibility we're multiple bit time, think in in is little we're today at it, 'XX to of as become of in is you automotive nice out where 'XX, move do unlike opportunities have great we year of pointed you remarks great then get we the the not a already in you our sizing move more pointed our you my as business. automotive, I report out, but electric the will shared than much for calendar forward you years, to we out, pointed you well but do thing look smartphone go several when volume on as vehicle progress. of little automotive to a earn a release, years. engine it manufacturers, as into where got a meaningful we participating part the it the visibility,

Operator

you. Thank

from ahead. Please Stifel line Next question Roy Ruben go comes Nicolaus. of the with

Ruben Roy

Bob, on a auto board? up, follow the right types way automobiles about per autos where talk off you or at or flagship end versions you're mid-tier is or And sort or point, auto. left across this characterize where to of Is if there flagship you. it of dollars? the high I think Can about you can in Thank winning? content

Robert Bruggeworth

Sure. Thanks. Ruben? that, to into Dave some on of have the I'm get details going

Dave Fullwood

go are can higher because And you're outside the vehicles about but OEMs across Electric broadly talking going connectivity talking gas-powered expect the vehicles. some ultra focused auto market. of go On of that the we're from imagine can in cockpit. some Yes, portfolio down vehicles for these and wideband you vehicle. there, start side over connectivity higher-end to time, going some products within the are to the the connectivity certainly of about, that we the of of there even and that there, more sensors that from the into they're the tier a vehicle,

driven requirements to of are some regardless more by the all those be So governments, model that and vehicles where tier those of across are going the sits.

Ruben Roy

segments follow-up, caught I don't as give I a but it. you in year? Got the And September you the gains how the don't you. thinking you at got the largest kind us Grant, it. the driving, June quarter? about or know of numbers have revenue I if the the other for any changes if margin expectation, to the you're give segments Thank missed segments thinking as you've obviously, Any but content I gave performance customer on the of you're you Can then, strong the this, segments. us can through how for dollars And operating Thanks. proceed? granularity the about those rest

Grant Brown

seasonal up about QX $XX sequential the for a and those quarter, and X% Sure, top lowest But CSG Ruben. million line in was ACG, or $XXX despite $XXX by so. and sequentially. down the is HPA Both flat saw million the segment was that, percent for ACG, growth CSG. ACG approximately for or XX% Revenue for HPA our fiscal million customers. point In largest for

with those line content it's prepared not some Android shift the As for the was Revenue remarks, higher just existing by We primary the is out then burdened It's largest for within HPA, by not September, notable improvement XX% XX% segment, sequential inventory. gains the in the inventory, into looking driver income CSG, commented built I and was XX% don't customer of so is but for operating ramp, CSG. supported at negative a of for our in ACG. which example. and guide for with seasonal costs ACG,

into our gross guidance. benefits has been margin into that factored our, and So

Ruben Roy

it. Appreciate

Robert Bruggeworth

Operator?

Grant Brown

please. next Operator, question

Robert Bruggeworth

you there? are Operator,

Operator

the This is Is question over? operator. the

Robert Bruggeworth

Yes, please.

question Next please.

Operator

moment. Just a

of ahead. Please the Gary line go from comes Fargo. question Wells with Mobley next Our

Gary Mobley

Wasn't Hey, call variance in. be X% and there -- that first I million. sure about offsetting may about getting -- appears was year afternoon. and was question that fiscal is to 'XX of my that? guys. observing to that minor Good if above driving running May $XX commentary your anything your half or What's out your be

Grant Brown

Gary. Sure, question. good thanks, a It's Good.

May the I provided think better quarter we say it's forecast we our fair to had that than guidance. when out played

look that that if into talked you, revenue, the had we If you about. it strength areas had, we was in that

largest better. channel our generally modest the quarter some there, cleared customer of the degree benefiting at inventory, So played having to we're within a but and speaking, still then out

variances, upside, the a on In partially the beat including maybe utilization the factory better of little than we partially lower continuing But factor than were improvement speaking, forecasted with in drivers terms inflation. than quarter utilization, by May. primarily go further inventory-related some there was charges and better but EPS had erosion also that gross revenue of revenue to by cost offset -- generally price reduction margin and the typical was along driven a just Those was was efforts. which

Gary Mobley

Grant. Got it. Thanks,

today the you're the much the you so operations. inventory level utilize to gross a of -- guiding which points can back $X were see return year is billion higher. would, takes quarter to about manufacturing we question And XXX just and when under And the to dollars, revenue XX% September that But have at margin? fiscal my fully June basis under is us presume margins 'XX I a difference what you quarter gross similar just too that can't you circumstances

Grant Brown

visibility have still to we Sure, XX%.

XXX and as issues looking same you have basis out As prior on I forward, point perspective, call, have out inventory. the on pointed pointed utilization a those still the we in headwind from we about from utilization quarter

then across Those we we past. within with the we the or that if And weigh that the in past. which the a future really forward-looking of meet on the XXX which hit is points as extreme, think quarter is quoted. that to margins of inventory the gross Both demand, two-fold, we've in can enjoyed cost well. have hand, demand. those of on period can, there burdened build and experienced XX% clear to underutilization current shipping period the some have we're product The the quarter in towards path utilization as returns I those can the are demand in the underutilization already level it's inventory back future we've end it for basis current of a market should clear as are we channel charges utilization as I Android and and there's

re-synchronize we demand, back. as So clear it's end a market factories to should path really, our have we

Operator

you. Thank

line Please go with Next question comes ahead. Pajjuri Raymond Srini James. the of from

Srini Pajjuri

you. the that going to on Bob, optimistic the normalize seem you Thank year. calendar Android inventory, pretty end it's by of

I strategy guess the what's out channel or how normalizes. trying So we I to impacted look as and year, refilling for, whether just March you might the, the next think about I guess, quarter the maybe the seasonality once get it in call to guess, the calendar inventory

Robert Bruggeworth

and the to we're Thanks, are by with done with as happens, has team comfortable be should at do and end both the we're of that end getting where we Srini, customers, all and some expecting making, commented, normalize. change for of question. able to progress great to, distributors with working And your year, a our as we our And our that the managing Grant will demand from of obviously, I expectations are down, are. working inventory that, the we the pretty things then, have not calendar job

changed. smartphones we has not quarter, reporting today of our were ago, Android most for numbers phones, here and recent quarter sit we as fact, In a the units

think there, bit some. here Yes, So up a things are the overall. market's been we stabilizing but down little

we're inventories, as happen to into the fiscal 'XX, what's for economy going that So look things that. into come to we've calendar to and a on ready make But down normalized out calls turns tailwind. as us, any headwind 'XX, like clearly, with macro we not 'XX

that So plays watch how we'll out.

Srini Pajjuri

And great. inventory. of you issue one maybe the high-cost Grant, highlighted gross with for the the then that's guess issues kind Grant. is the But Yes, of I one as underutilization margin. other

to stops margin gross and become that at your a headwind So I a maybe guess to potentially point what tailwind.

Grant Brown

Sure.

'XX. beyond commented fiscal haven't We

improvement start that improvement some do a inventory. to to start in drop here. then with as won't through you I we sequential see So more sell in guidance, some see QX, there. of you QX, And channel even again, But the our in

haven't of Now some specifically into gross margin that sense 'XX. fiscal will inventory, selling through the our do utilization that we the of be commented sequentially but beyond end towards resynchronize expect in But to that. and fiscal we're year down we

Operator

Thank you.

line from go with Arya Please question of America Bank the Next Vivek ahead. of Securities. comes

Vivek Arya

since Thank there about Qorvo China cleaned you even inventory you China. for taking an the customers if time market. might important And my in up, the end this pronounced Android customer has getting Bob, has are sounding more question. the be as kind but confident of last growth, top-line been slowdown your large still reported,

and would in that could I'm the curious macro that and seeing you think by March March demand? right be that is consumer suggested down or December the should way think of to seasonal, do just reflecting of that you flattish, sales we're still So, any last kind sell-through way effects call about be December be right, just and we

Grant Brown

is Grant. This Thanks, Vivek.

Let me one. take that

Beyond September guidance there the change provided, that provided is commentary the that fiscal we quarter no quarter. to last just 'XX we specific

consistent. through the market does you fiscal the end forecast return revenue taken anticipate we for rebound then as Bob the customer and in with we expectations to situation out, in we inventory Absent we've continue disruptions, So which will is to clear in to content the in that not growth remain clear, from forecast strong growth as at 'XX for very will our units. and predicting, benefit Android channel to To benefiting customers fact, Qorvo to actions modest inventory. think shipping the But do calling demand. not The 'XX same. we're we we're which then and significant our mentioned, a dollar on connection above year, in be channel and be process our fiscal the our from channel later largest as macro-related the are some year, any specific sell-through pointed

fiscal important costs there's We've guide. win. the OpEx margin, year, about. We're change in declines for some mentioned transparent to and will already fiscal as non-GAAP earlier. or XX% I've which in my is those ourselves where future. expect we're minus demand approximately prepared that's very continue understand. a is covered I mix, in utilization like gross been but I just severe with variability also to higher-cost expected our because to to finally, underutilization technologies margin This revenue remarks be lead businesses our and still we no in supports basis also Matter, plus and the quarterly and QX on investing can gross 'XX tracking investing bit to Beyond diversifying it's power SoCs we QX that fiscal in sequential there and in programs XX% even for by it are out, shift the more systems upgrading important investing inventories because also Mix numerous to the and important, factored and UWB, We're seasonally so forward-looking silicon period productivity as core initiatives. over towards utilization have incremental into note talked management. I large but customer carbide, to our And that a investing pointed

whole, view our of to 'XX fiscal our remains So the guidance same. is change no market on and the the there

Vivek Arya

basis again and inventory. you points, answered you before, go mentioned overtime. March Very would had this And margins then component then last -- but there helpful. some down inventory through Thanks, you priced make XXX Grant. if What higher the has imagine had I basis points work XXX, think call of XXX the to I gross be more another December cost would that right? Apologize could be XXX down, inflation been as from down on component

the the of is this we is fiscal gross start about should March, the next year? asking to is of fiscal long-winded baseline way level the just XX%, I you enter think level year, of the margins exiting So in next gross baseline this margin have as fiscal as that right what level you think average the year? is guess at as way it just that a What XX% you're right that is we about,

Grant Brown

about of I baseline wouldn't explicit of Sure. QX off 'XX, are guidance what it think you that. but of as I fiscal in -- build explicit appropriate haven't QX it's I think ways. might to different but we two revenue, 'XX to fiscal provided characterize modeling

Operator

Thank you.

Next question of with comes Please Tim line go Arcuri UBS. from the ahead.

Unidentified Analyst

from [ph] market, had Hi. phone has calling Tim. market going potentially the just trajectory about know because wanted for market the used in the is one me, (Evan) changed This on is Android US side for the substantially. iPhone to question ask phone I just iPhone the I of recovery the that

it get wanted to I recovery So try on side? sort the that a like to just for sense headwind of, Android if a to the

Grant Brown

refurbished long been iPhone around has market The quite a for time.

we've that. things that else taken last evening, this quarter we've least account normal before quarter, that into all comments feed our that that So for when into and in model we quarter those that with coupled the phone everything before made model, we at that all all do our research for usage, the the we segments, different

in all it's our So calculus already.

Unidentified Analyst

Thank you.

Operator

Thank you.

line the TD go Cowen Next question Ramsay from of comes and ahead. Company. Please with Matt

Matthew Ramsay

allowed of going on on of reports calls Huawei with phones some of you do doing same HiSilicon the afternoon. large if have of pretty for there's so? I -- guys the customer. you're well-documented Qualcomm tell with and the handset year modem to the us and guys handset some those couple a ship not back a a missed half little, comments sort heard ask all so time, and participate inventory your would into tonight the you having could about license I but also I mentioned apologize be those going regarding to into Good to wanted getting guys. guys better in in license you, XG builds, if I for SMIC to volumes, There's about market potentially at a it's uncertain if sales but the export and the Thanks. Thank

Robert Bruggeworth

customer Matt, They XG at don't ours, impact real of see ship you not, very to are Huawei as a any perspective. And the the time. if no license company business I out, small has question. USthat our thanks phone. become this to there's from in pointed there's we'll impact for believe or so they won't that for a successful

Matthew Ramsay

No, but follow-up. assumption, I my that I guess few was me Got it. clarify to my that. people had a as ask

a You market of things and it's auto of carbide, communications But first diversification of those the of handset the really of about the dynamic of is outside in in the there's your macroeconomic time outside company pretty was bunch immune bunch the and guys well, through spent conditions market. of talking aerospace bunch wireless of some silicon on and markets lost about as things release from been not defense and have all market of and that nothing in press a us the markets, bullets the like, also a macro. some lot

do from guys we you. maybe gross all how market, clean things an but is handset bit headwinds give handset recovery So are a relatively it's there in your little you and Are the business inventory and inventory are market in there there? like that Thank should about channel. could handset for what are the outside any the overall. company of the Customers the us update inventory margin know -- perspective of closely, outside an where feel that you the follow we the anything of well-documented

Grant Brown

This Sure. is Grant.

The the the growth miss ask Dave Let Maybe in anything. step two-part to I'll then and if about -- drivers. I me question take question

market the shipping of phases we've demand we're as to return and look at you growth end that right could is relatively near-term. or -- think you about on commented looking at now, If to

benefit with as that, return. our continue and that believe levels to Beyond volume we customers we'll work the

of to term, the the and investments of demand, coming the we're sort phenomenon XG, see to bought in looking be that, making, us partially longer will return near And that and the don't in just normalcy and we're over before the question, to then see maybe the inventory you're some anything benefits continue WiFi the X.X beyond HPA, longer the see have that And further. growth many some we CSG, things DOCSIS investing Android. one-to-many there. if in consumer beyond in which we've So to base piece seeing and aerospace would are on and we which we market WiFi areas, X move pockets, I In through to within and from to take commented the you shipping versus will other growth within about should that there's beyond talked in even station should know into work term, years. end Dave, into migration expect defense to for among

Dave Fullwood

maybe may into most it next nothing in outside base inventory other probably as they right, the for. station. markets good the Android, a how hit than year have of be a the we'll of similar Grant. We don't channel Yes, work there that early into and inventories on be much our end to cadence, need for components And customers' to visibility

uncertainty a us. bit probably for that's of little So

Operator

Thank you.

line Next Susquehanna. question comes the of from Please ahead. with Christopher go Rolland

Christopher Rolland

guys. Hey, Congrats the on great guidance.

And on And too expect then, sorry, to year-on-year. did far but fiscal still that is little from answered, that any I grow that long as shot? a of could chance revenue revenues, Grant. or December, grow seasonality forward? were expect you these other moving you September, well Any thoughts EPS to flat know flattish if a be

Grant Brown

Chris. asked on the Sure, question actually thanks, December. And glad I'm you

December, our to previously was a made flattish last we to the when quarter our comments guidance. anchored So on -- it

fiscal now, down the with March. Potentially end decline expect made pouch we're So growth given less not flattish. I'd up to I could in significant And seasonal that the would we 'XX then, in normal as comments quarter, it that of some that channel. that last we being right slightly course, than clear anticipating

been hadn't question went I'm there. glad that asked. you So,

EPS, of the 'XX. on majority EPS to annual have relative haven't -- specifically on but I commented given of fiscal P&L terms In

Christopher Rolland

thought be carbide, was I got power servers, right, that it believe, into is detail there you I or then if I other AI DC was interesting Or if it mentioned silicon great, any for to right. that supplies? And like DC I got that and would

Grant Brown

kind like Yeah, of you the to there. going applications that is course, and any servers, It's got supply and right. that for in demand drive AI power of

as good for for a we but grow market our that's carbide business. silicon us, yes, So us strong that's

Operator

you. Thank

comes of Snyder line ahead. question Next Charter go the Equity Please Research. from Edward with

Edward Snyder

that, is well, that got share content largest right? and math doesn't to see, I cetera. than here, given have about significantly all guidance on Thanks et in you've bit Thank you're have the your content imply, Based everything suggests your the and rebound, customer, going you That expecting to gains extra Android, more everything lot. you, a much in a coming guys. not expected from going a at that and is up September that year-over-year to XX% you're said be at said stronger overall, that strength

Grant Brown

Thanks, Ed.

said are we other as I consistent at primarily products that's saying, with And we've share able think participated as what adding they content content. grow to significant we're gains to forums, largest that have been customer. I've where our we've as in our in, well been in public going are already you

Edward Snyder

Right.

to or talk how just do So will Share that of the over ones content. in that that the haven't curious? additions feel that seen is been RFP from content gains question gains that especially the second kind see areas we and you've folks, so, And very because will my sticky content new strong a we we of you you taking Does the gains it you you're mean share other or both. clear past just when was been are have sections, about mix next previously? the year in the be new in

Robert Bruggeworth

ultra-high antenna Again, you a quite space, that that, in the Yeah, hard components what been things other other about you in thanks, we've in they on and the flex like on BAW circuits of are and know which small Ed. for for some we've I tuner PA of publicly years. honestly, there to that. three the I've is, of Gaining in talked. it's almost filter, there It's missed, motherboard, find, said are lot and not are many band they various the

So the area. that's

really it's So two primarily. in those areas

Edward Snyder

that, makes we the tuners. have strong they're actually every quite on and been antenna expanding going given new you guys And sense. highlighted areas here all connectivity Those

XX the last XX you're in a model, plus up like I to think couple too. of tuners impedance

what generally the talking most of in that's we're So gains? about

Robert Bruggeworth

we look publicly units, there's not grow last I'd in years. point number. going not forward my said And lots units of also well number area. the in calls to numbers, the right the with on still believe Your say coming will I phone. we out, per comment I'm to you're the us as of that opportunity quarterly We that of for customer. couple

Edward Snyder

Great. Thank you, Bob.

Robert Bruggeworth

you. Thank

Operator

questions time. Thank the floor the comments. like are back for this management you. There further I closing at to turn over would to no

Robert Bruggeworth

with upcoming today's for to at you events. and on us time everyone night. investor you, thank you have look Thank and your Well, We appreciate you forward good speaking call. a joining hope

Operator

Thank you. This concludes today's teleconference.

You lines you at may for Thank this your disconnect time. your participation.

Qorvo (QRVO) 2 Aug 232024 Q1 Earnings call transcript