QRVO - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to Qorvo, Inc. Earnings Conference Call. [Operator Instructions]

Please note, this event is being recorded. I would now like to turn the conference over to Douglas DeLieto, Vice President, Investor Relations. ahead. go Please

Doug DeLieto

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

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

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

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

of Joining members and the Bob us and President President Grant Marketing; CFO; to Bob. that, over today call Dave team. Vice Senior and Bruggeworth, Brown, other And management of Fullwood, turn Qorvo's CEO; with are Sales I'll

Robert Bruggeworth

Thanks, Doug, Call. and welcome, everyone, to Qorvo's Quarter Fiscal XXXX Fourth

begin that a.m. our held a press and will issued be will at announcing of It webcast our release we event date XXXX upcoming Eastern. Qorvo all I'd be audience like Investor reminding X:XX audiences, XX. begin to week, the Day. it June by for will last The

future. our in our for enthusiasm opportunities very Investor Day last was Our and we're XXXX, and expanded excited discuss to detail in the

of These devices and the is to at many trends we secular forefront new macro are electrification Qorvo Across are datafication. and macro supplies made the trends, company's our user you global new experiences, enabling by including which and accessible mobility, connectivity, applications businesses, of enable. Qorvo the

battery time Our out, to charges. and functional form and enterprise. markets areas where efficiency, is focus life delivers consumer and power factor This parameters key as infrastructure, industrial aerospace talk improve seek our continually throughput, performance is such customer between a on density, increasing in power automotive, Qorvo defense, across customers and time, competitive current other consumed, significant It advantage. happening

improve this, functionality. like active standing in systems, Complementing a more system sensing technologies power enhance range centers, on to and system transitioning advanced a management, are and legacy technologies MEMS, RF chip advanced performance to touch and [indiscernible] of solutions package electronic

connectivity new product WiFi XG is and being our across driving Qorvo our offerings a expanding are Matter set target to to capabilities of including and adopted while opportunities. growing Also, these protocols businesses, advance, X, enable X.X, innovation trends ultra-wideband. DOCSIS [indiscernible],

to highlights, the base growth in and March HPA. to continued in beginning than let's strategic aerospace other Now HPA sequential growth supported the quarter, turn year-over-year improvement defense returned end with markets in by stations. and strong

and and high-performance completed portfolio aerospace, proven in capabilities for Their to ] quarter. and complementary The transmit-and-receive RF our are [ includes array commercially silicon D&A, integrated solutions, defense brings team front silicon conversion to antennas. for Anokiwave In Anokiwave ICs the IS which ICs, SATCOM, RF to XG applications. beam beam-forming end forming other March active the have acquisition very intelligent and we're pleased robust of

contain power ] our hundreds of race tens can products. and large solutions Defense elements The annual where and revenue to state radars, growth. and multiplier we radars integrated driven are Phase is management transmit RF X PA receive X in that up especially was SATCOM for this, developing content opportunity in by Design more combine elements. IC applications for D&A solutions strong per receive [ quarterly Anokiwave and portfolios. underscoring programs for shipborne Record effect ] solid placements and the thousands quarter airborne highly spanned enable March our to the of [ SATCOM transmit D&A Qorvo Phase can system, Qorvo. Adding wins existing with

BAW-based first BAW We large In architectures engaged bank solution applications, SATCOM our earth for design connectivity. support filter LNAs, secured win that new to ubiquitous switches, including we Qorvo for multiple low customers. mixers enables are supply to nonterrestrial orbit defense and products, multiplexers

management. Turning to power

as our mobile, and more We also and reach targeting Qorvo while to more industrial customer long-standing in such expand diverse markets. markets investing are where consumer, enjoys relationships fragmented D&A

a and During and the of with residential tool March a and quarter, we platform motor commercial control win manufacturer power design lawn products. leading secured a garden

PMIC new solid-state at and secured customers. also new drive existing We designs

and requirements Looking volume and content, in ecosystem and in increasing for opportunities power in new compute that growth are for mobile, The significant more Qorvo the management closely and opportunity exceptional are PMICs. both our customer processing at device to vectors relationships. are is leverage there able creating power we

customer leader addressing related density Qorvo and solutions, consumption. challenges functional recognized a efficiency, RF is power delivering to

Our RF tracking, includes power portfolio average power management envelope tracking.

opportunities RF consumption, Qorvo and phone to battery management, Beyond improve there our power is the life incremental better more accommodate leveraging are use expertise in power cases. management data-intensive where current reduce

portfolio strong engine growth and We have that very across extended can markets, IP for management making PMIC profitability. be an power our diversification,

recently signal extending with in building and also customers circuit by of them and speed, simulation to engage with out our new analog broad design QSPICE existing circuit gained launch, and functionality engineers has measurable quick QSPICE reliability has unique providing XX,XXX surpassed Since traction its reach our as such improvements simulation. tool. QSPICE downloads. by and are more launched markets in We ways mixed

Qorvo devices, in silicon the and from power for carbide, to remains customers our activity design strong In markets. silicon target to transition continue

secure added the for high-density a server supplies second American X server to and wins Tier North design quarter. continue power We during OEM

DOCSIS of increase XX transition products. per will by gigabits of upload to a In experience. with to increase of X.X user X.X second significantly X.X to DOCSIS download portfolio from and enhance Xx and infrastructure X.X the DOCSIS markets, speeds existing speeds the will compared DOCSIS the to gigabits per Qorvo leading broad X is second. DOCSIS support X.X efficiency infrastructure up

we award to remain continue by design support to expect term, our wins are OEM environment However, station business, we very their a Qorvo selected development XG been demand customers efforts. European-based In have weak. Longer to the to pleased base

CSG. to Turning

supporting Samsung an our placements their many of number supplied are among across other We precision Galaxy of ultra-wideband and markets. mobile, automotive requiring applications SXX support and our solutions flagship increasing ultra-wideband solutions or of awareness the Qorvo's in to In security brand. consumer, mobile, location

recent this Qorvo's wins include markets, location provide leverages the lawnmower that to ] consumer ultra-wideband In accuracy precision robotic a to enable application. [ required

engagements [ enable a applications technology Automotive detection include access reliable capabilities. of ] expanding and the for key to intrusion range occupancy. ultra-wideband Qorvo's that secure applications leverage customer as digital of In both sensors as kick are automotive, well radar ultra-wideband our and and

North During ultra-wideband secure manufacturer the an in an enabling activity for win, design access quarter, EV customer America. included

In 'XX. supply OEM. were calendar in selected OEM selected were other an to automotive supply a our applications, in also for ramping automotive we North solution solutions American VXX XE WiFi a EV on to of in platform We different support Europe automotive

[indiscernible] contain Xs. BAW this power to device additional be XG automotive Asia, our with For program OEM Tier marketed access diversity Production and average enable was which solutions, ultra-high reference for as network high-performance XG band tracker selected to of and noteworthy each low-band, X this year Qorvo an mid-high band, design and in OEMs the their begins is will this filtering. win EV

we WiFi new roll For out markets, continue solutions. to and technologies

filters WiFi that portfolio. We X launched X next-generation in our and across BAW using most switch will our and LNA WiFi our we iFEMs our combine a WiFi are migrating X with We soon newest PA, advanced and placement. gigahertz our BAW, technology next-generation cloud content single launch

Tier network we our operator sampled X FEMs in for long a high-efficiency leading a FEMS mobile newest aligning We X next-generation and the also X chipset. ramped WiFi with WiFi nonlinear WiFi U.S.

next-generation our Connected home SoC for win a the home applications, we network ] U.S. our a and ZB supply secured SoC, with remote [ design we BLE matter gateways. to in at controls began operator leading to sampling

pads consumer sensing expanded engagements touch for track we And in other applications. sensors, and our

drive in OEMs. unique In ACG, growth smartphone across to opportunity major our Qorvo is

Our largest gains opportunity customer. remains our dollar at content largest

a reflect investments our clearly have opportunity. account our multiyear growth larger to of this revenue We date in to continuing represent confidence and percentage invested our to grow Qorvo's

decade. Within the set transition XG the to through to are mass-market smartphones Android ecosystem,

We positions us to collaboration and primary the benefit supplier to RF road strong are Android the ecosystem multiyear the map ecosystem, continues Android and to as our XG. transition to

band, and ultra-wideband to of Qorvo market quarter, band the highlights our supported transmit smartphones. their are the This receive, and our low-band, we and strength XG solutions. During mass opportunity breadth portfolio Galaxy WiFi the support flagship of at secondary across tuning, launch Samsung, pleased with our them the and and SXX mid-high ultra-high

our the recently mid for see For by area reduces Qorvo's band by and/or placements. XG we low, mass surface content X smartphones, in low, solution high strong LMH high path pull in [ combining market mid, X traditionally main placement, offered band ] launched XX% and pad.

engagements We have OEMs expanded are X XG China-based volume to commence top year. this the calendar include set and to Android shipments customer

To continue best-in-class new broadly support all to across products. our advance we with customers portfolios, technologies

are We next-generation solutions. proliferating our discrete high-performance BAW across and technology integrated

BAW SAW and LRT bands. released advanced in complement process a recently our SAW also We processes to next-generation select

SAW our this first support BAW filters flagship LRT a combining and later summer. The launch module, will

solutions. for smaller, content emphasis opportunity more integrated growing efficiency performing, on throughput, and the and power size highly Qorvo's summary, increasing in RF In markets demand is and better

automotive, capabilities portfolios system-level our For aerospace, scale, power customers our broad core defense outsized we product manufacturing markets, and including consumer, and advanced and to expertise growth. expand in leveraging enterprise and and RF industrial deliver strengths, and are packaging

opportunity. market, XG our across to product mobile the new the market tiers, a to capture tier total we of from the are percentage addressing expanding flagship the categories growing in customers For tier and SAM mass

to And with that, it I'll hand off Grant.

Grant Brown

all midpoint gross our increased Thanks, everyone. $XXX XX.X% EPS diluted approximately year-over-year. for range. Revenue fiscal the XX% QX Revenue the was guidance Non-GAAP million. quarter afternoon, and was was margin exceeding for $X.XX, Bob, and non-GAAP good of

in HPA by defense last stronger-than-anticipated HPA quarter, our communicated year-over-year demand As a revenue in growth. improving return to grew performance XX% driven quarter, March supported in customer a business. the year-over-year

content grew March In by year-over-year XX% customer the supported strong ACG, large revenue multiple platforms. in on quarter,

delivered year-over-year we areas. to and CSG, of our sequential In quarter WiFi, due growth growth, consecutive XX% in and automotive fourth other strength

periods market operating of non-GAAP during quarter percentage were $XXX March XX.X% a Consistent gross quarter of which million. with prior was the for the utilization. margin of comments, mass expenses reflected lower our Non-GAAP Android factory in manufactured XG product, higher

multiyear across our invest to We continue product in new growth development to drive businesses.

systems we're us upgrade growth-oriented our and investing This multiyear our advantage intended initiative to Alongside core enable extend dynamic run competitive processes scale to investments, the to growth use in diverse we to markets. business. is our and

to support capabilities including growth operational software is Our new leverage and to internal objectives. efficiency, AI data broad-based increase goal unlock the our

spend the present initiative will on other this in X years, expect and will We approximately P&L. non-GAAP operating span expense we our

we a progress will the related through we guidance provide expense project, As on basis. quarterly

were In of quarter Turning to during with cash we included cash cash fee $XXX QX, in termination flows. for the and closing the of million. that recorded payment Notable period flow cash the agreement cash million flow fiscal flow occurred the capital silicon $XX items in the long-term transaction expenditures operating supply flows statement. recorded the investing Anokiwave operating of and associated a generated

strategic We to of at rate our $XXX brought key share. long-term $XXX our stock uses relevant per aligns our strategy of ensures shareholder $XXX flow, The alternative financial the $XXX for 'XX balances underlying million of maturities, free of long-term growth return cash considers fiscal with and and per in including allocation This of repurchases factors, future share that repurchased an goal value. at with quarter, other our total average outlook, and capital cash several share price of the approximately our capital million considerations. pace delivering debt approach which

of $X.X cash we of and the of over debt sheet, On approximately equivalents. as $X quarter billion balance long-term billion had end, and

XXXX the the these and will year. in as notes Subject this other expect and retire notes to current presentation, classified short-term rate December. sheet interest in factors, changes are balance currently later environment to Regarding mature we

balance inventory In of successfully expectations call, previous ended balance we million, our shared during $XX We reduced sequential net the of the a our inventory the period. line quarter with over a million. net with $XXX earnings decrease

and XX.X% we For the $X.XX. margin EPS fiscal X, In revenue 'XX, full was customers. billion. was was year, $X.X Non-GAAP gross had XX% non-GAAP

consistent up 'XX, in of represented revenue. XX% customer revenue, and Our XX% largest was our XX% from largest customer fiscal second year-over-year at of

to current Turning outlook. quarter our

$XX We million, $XXX expect between revenue approximately minus diluted of and XX% XX% or margin non-GAAP plus million, EPS $X.XX between gross and non-GAAP and $X.XX.

was XG expect product that during manufactured percentage lower we March, to to June Relative periods a of margins gross reflect utilization. of higher mass market Android

paves it sell-through, inventory cost levels the higher way of these for that As margins increasing reflect utilization. future gross

quarter the point be September the the gross and low June for quarter. substantially We to in year improved the expect margin in

continue gross year-on-year. year We improve modestly to margin full expect to

operating non-GAAP million development to with of be and $XXX timing in the project will We approximately program June other related quarter expenses spend factors. variability the

expense OpEx and for quarter includes guidance operating approximately modernizing business processes. related this systems other to Our million our of core $X

During quarterly progress-based we approximately variability expense achievement to million milestones. with related 'XX, project expect the $XX to of this fiscal record related to of

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

changes due range the minimum XX% rate tax within to Our project XX%. tax of legislation is to such as other to be time will non-GAAP 'XX tax for a We and global factors. this over fiscal in increase expected

of significant progress This to to we've close in the test achieving readiness this further close is Beijing we work capital intensity, the a to transaction completing divestiture assembly Dezhou made operational ongoing and other Regarding continue facilities, efforts quarter. reduce expect the and to step towards and our and required transaction. our

this chain, a We our We'll production partners. differentiators critical factories and strong and internal complex and uniquely are including that differentiates will a products OSAT where for network each manufacturing operating where our focus. managing are it foundry maintain efficiently ongoing of we leverage remain of supply outsource an internal segments,

share long-term to our during segments. each our Qorvo capitalize to upcoming is in excited growth We're well participation. within and positioned forward on Investor your operating look more to X June, Day drivers multiple we of

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

Operator

Your Instructions] Roy comes question with first [Operator Ruben from Stifel.

Ruben Roy

But in saw detail little of -- Grant, the segments strong a walk you provide quarter? as can how release I X in just if some June. guidance going bit after was quarter wanted the think could had kind on to to the more defense parts And I guidance of moving what's the for you the the maybe through the with ACG commentary and on you you see and about if wondering you think sort the for press we March? us the June about if on guidance in could

Grant Brown

X June segments. The revenue Thanks Ruben. the question, decline and HPA, large start as previously. defense we in sequential And that within June quarter then of the primarily a patterns and Sure. seasonal the guide our ACG. ramp into guidance for the with rollout I'll overall, timing largest customers off get DOCSIS the slower programs in then of about the X.X, can quarter we've reflects talked

decline is decline the And digits. in decline to expected ACG ACG HPA the break in will be flat. to approximately down, single expected to -- digits is is to it in double CSG June. high expected low just

XX% up break 'XX represented in my which out Looking 'XX quarter, back customer don't we mentioned at customer in largest ACG, I in fiscal from revenue, of our was 'XX. by fiscal XX% total remarks approximately percentages but that XX% prepared and

to revenue seasonal have quarter. increase ramp the we follows and those it our June there So impacting the customers, largest exposure with increases patterns our that's that

Looking at a HPA, similar it's dynamic. seasonal

successfully defense sequential grown 'XX, having We we and within QX. performance June size aerospace, of this to is set program and base the D&A a largest revenue and outsized on an the record revenue our grow relative represents quarter, impact in while percentage in business timing the given in just actually and our fiscal seasonality expect HPA year-on-year And the fiscal HPA. in have

the full should June, it, year we all modestly fiscal improve September as in say, continue will substantial a we to majority at I sell Looking gross inventory gross through the high-cost improvement we expect over margin or 'XX expect 'XX. of and vast margin, in

Ruben Roy

modest in guess detail. a I 'XX modest view into the in reasonable longer-term And last don't follow-up. 'XX. release the -- great. into it? you thinking you're about your year, growth press you changed That's In you think expecting as know expecting XX days wondering, 'XX anything said just expect any meaningful growth And were over in be the also, XX I it I provide over growth has about But fiscal about quarter. you the guidance to Because way talked -- would new with

there's if inventory growth levels helpful. or or how wondering sell-through be viewing been changes just the demand would So any in you're

Grant Brown

inventory, view within Sure. inventory, No change to the channel our clear. especially on area looks relatively Android

I think June really will the high-cost talking inventory with that. associated energization be the be last impact quarter about we'll the and

far in past that goes. one to maybe spoken as change timing So the that's we as haven't

the terms In 'XX revenue margin 'XX provide It's be general, with fiscal the to modestly to both a defense do content market, year-over-year expect pointing those worth fiscal and fiscal revenue full ramp basis. guidance. aligned earlier, quarterly timing year But absent customer of success on disruptions, gains annual detailed more it's any of out as in the grow at that macro-related I our a mentioned the in any and of we early given our profiles. gross will largest little closely seasonality

that's but also be fiscal our included our full in year. So clear QX will guidance, in

In do December. sequential revenue even growth then and stronger in and across September, will fiscal That revenue expect December, sequential reflect strong modest 'XX, September is terms growth profile in the in of begins shape defense. we sequential of growth that in the some in

bigger December strength the So unlike -- than there our current 'XX, because have fiscal we slightly, defense. maybe in September we'll a expectation of is

we September. substantial margins, in gross improvement On expect

I slightly in in then roughly March. flattish down As mentioned, December and

similar a seasonal again, So profile.

a fiscal for implied year, gross year margin mid-XXs. Overall, the for in full the probably fiscal 'XX

Operator

from with Paribas. BNP Ackerman comes question Karl next Our

Karl Ackerman

driven peer guide increased said Android in Android while follow that spoke in rose seasonally September, by half? the evening second guess that this does while your I then been to China And suggest I the gross about. you data margin just gross margin the half, in June? question the up want because conflicting [ sales lower first margins gross in I weaker in is to the that half. have second on asked some ] year-over-year XX% is Android demand points Android stronger there

be could that, that would you if clarify So helpful.

Grant Brown

Yes, sure.

when I But underutilization are any product manufactured in you're look manufacturing any selling, variability the on think market I to given be in as heavily products by So with of going out, by gross costs there's at associated terms margin, the category. manufactured. it's pointing and we're end right, they're is where and dependent impacted quarter, what impact as mix,

So rate of time the products matters produced it's the where OSATs Qorvo, utilization at higher and impacted when contain because foundries for from less the that the internal or are matters loadings. by our because where external content

June, our gross X guidance for primarily I things. guess, margin really reflects, So

First, artifact somewhat selling underutilization. of underutilization. an is burdened higher cost the we're through by of actively inventories this And past

then second see, third, decline mix, we I that to Like most our programs. are margin. defense of gross customer, largest these lower of levels mentioned, we typical businesses, the a decline in higher volume in seasonal accretive The the content. is products expect seasonal And those external our contain as high and

So mix it's heavily dependent.

the inventory. through we of and pave high-cost it year earlier. sell that sell those June correction. believe well actively for whipsawed again, And that massive the I caused utilization I full underutilized the fabs the inefficiencies by were color the talked I fiscal past for about remaining on gross commented as a will through margins material, will higher out, we're way worst reflects levels low pointed those we by We point as mark inventory that the really

The experienced will external points For September, seasonal the, to call revenue defense XXX and it, grow the gross pivot ramp headwinds as quarter. XXX around substantially reverse. versus basis The basis we should improve or if margin less -- impact to expect to expected points content. X last that, to we fall more that is sequentially reflect underutilization we than we

Karl Ackerman

thoughts Very comments on industrial Yes. own industrial has that, the the If quick carbide, and/or any sneak your hear in I is thoughts about your of script. recovery or that in recovery silicon downturn. just I on may the your success mentioned I you carbide, know a any I carbide clear. business through in one. silicon defense? prepared did defense. a was influenced silicon not And a market macro But the it's whether curious, going whether

David Fullwood

Karl, that take this I is one. can Dave.

past, comment that's we've had rate about areas quite of this, success on talked good. We've of Bob, data like by some been So the in of can we've the and success there too, in but some our part looks interest market in centers some solar, heavily you had that impacted actually good the environment.

extremely is soft And so that now. market right

look It's small of it's mixed markets. into kind silicon growing we're our so a you when a new business, So still business. carbide quite bag at

we're of opportunities there. lots markets the there's of The environment growing the is so some dependent end sales strong, And rate that interest on really and funnel are but experiencing.

Operator

Your Equity from Charter next Snyder question Edward comes with Research.

Edward Snyder

Yes.

if of could. I an couple Sorry that update Last second guided this the if that, in to about just know the had content possible. questions, quarter, I to quarter about and discussions you guys. A I half. strength want all. growth we get haven't at

working Now awarded terms you're how on to anything at revenue alteration Any in all be that it, wins just the probably second feel get changed. content you've of it. trying if have it in guiding? or you for and strong think I'm in growth chance, a of those terms will had has half without qualifying a of most been

Robert Bruggeworth

in the confident, 'XX, I share customer. our last good said with year outlook Bob. And FY time, those. gaining and for real We're in about very gaining question. our Thanks growing feel Ed, revenue. outlook share confident both it's our FY for we're gaining in still share in 'XX, -- and very of this confident Still as largest

Edward Snyder

copy carbon to win anything some there that the closed news wave -- a And Anokiwave a you there's millimeter be folks, platform. that. mobile need And there at there, their then most a to you for pretty if much deal. line, with And look product seem it's recently you Good. a been

has to was any how it's to be that traction mobile it? was impression normally -- given an gain confident [indiscernible] my first it you play have that a And are a it how infrastructure going the Does Is that we business going to when for mobile while? been was in that play. announced,

Robert Bruggeworth

to actually this When up. it's but clear plans at pretty on that defense. infrastructure to primarily bring there's the of we but opportunity a We side. phone on still is time there, the any -- it defense good mobile our focus volatile, don't acquisition, the Ed, our think was into we market play mobile business. have The made part

Operator

question next Pajjuri Raymond from Your comes Srini with James.

comes Pardon me, Research. next with your question Caso Chris from Wolfe

Christopher Caso

The a just first comment you that made. question, wanted to clarify I

You And revenue comment and but that talked gross you margin? for about that, gross to or sure was modestly. a up gross revenue margin up in make -- fiscal modestly said that wanted just meant just 'XX, I modest margin and

Grant Brown

Chris. question, It the for for was Thanks both.

Christopher Caso

Okay.

-- and that's both okay, So so so clear. revenue

As to of color a you're were on talk kind on a you're taking. that that and that done where give to wanted you when you to doing that, and kind the Can changes what with about capital targets intensity of that? achieve more program might little I follow-up sit the

Grant Brown

Sure.

It be that CapEx capacity So target from but a capital look over still vary our current level think support we perspective, in based intensity target. time. that's X% customer as out I we'll to on spending required that could demand, around and

Operator

Pajjuri Your comes James. Raymond question with Srini next from

Srinivas Pajjuri

grow Bob, be largest revenue expect modestly. in you your fiscal this up said to customer for Obviously, previously guidance year. your year that to year-on-year you

some while. not lumpy, seem market, of I be guess, broad rest given market for -- non, curious, business, a segments but broad to the of smartphone them I the been mean I'm They weak -- just are back. coming So we've in

curious here? what's of you're causing outlook just as than the cautious quarter. like largest you -- a your bit you're outside sounding I'm It the more kind seems So last for bit what's a to customer, more to be cautious of

to just trying you understand So giving what's pause? I'm that

Grant Brown

Sure.

Let me fill of that the of can latter and your then question. one Bob part take in kind

think do We're fiscal see it. currently for going We gross expand margin generally, to 'XX, expect to as we we're optimistic. I grow.

our will the think I in having approvals our the recent for but opportunity grow we're seeing year [indiscernible] which to our is It at congressional some also creating some defense seasonality, on as business, as driving an us in budget where which that's June, customers, the largest of there. whole, activity and be more creates well up. packages, we're you're success seeing order

second defense the seeing strong tailwind the So we're business fiscal half. a on in

So December for are quarter see. drivers follow Those through and that in was us of into beginning the some again. the we March

Bob. know, don't I And

missed we your think of part the question. last I

around our was largest confidence at think I customer? it

Srinivas Pajjuri

I I would definitely sounded and looks like as year was largest thought, your up largest hasn't about more customer And you just fiscal guidance last quarter, the customer, on bit than modestly. wondering, your guess, your a year next X, would've changed. I confident view given the that be more just

I'm trying that you just of pause leaving largest your to what's kind So customer? understand of outside

Robert Bruggeworth

Android still in going the ecosystem clear. we're to grow believe We be to

was in had market was to correct some So that at largest comment I the make last again, we made I we socket and customer, that about I didn't on the year full lost clear. potentially noise to time. our The the comment only want wanted

I'm clear. across So came sure that

of over we for I the mean, when year, lot look out year. the things However, to a judge there's

at how But least what's going we say, I'd today. that I we're color, just some provide anything, it's if great think things of being to think conservative you on. able given we're somewhat

As quite of our the where you there, cautious know, going market China they're we're quarter-over-quarter some in export and up. honestly, Android around be very China, in to turning slightly doing actually economy the it's markets. to well on But flat

of We're demand but end with we're own and customer, when on going given around that. our think going to And we Fed largest units I'd number how So the with what's rates, our confident consumers. to it's globally, the country can we on in prudent see the to grow. conservative that's it's you that at what's whether we see being just I interest think outlook, our I going view world, give everything take a happen leave cautious, going just

Srinivas Pajjuri

peak maybe have follow-up XXs. think I exiting to back -- gross -- the in do go may XX% fiscal Or the mid- I go margin to of guess other I high previous, XX%. obviously, place gross year that If do high levels level? to are you're half the how margin year. plan guess, on initiatives any of it gross in we you from talking get second a you're How Grant, to XXs the margins. mean, to the revenue? fiscal XXs, are the mid- is I function a from to that to about I of what's us high improving And in there

Grant Brown

Sure. for Thanks question. the

the U.S. quite up across our maybe improving. obviously is utilization bit fabs year currently it. it's a just is spoken actually But a critical, So points XX about and QX to utilization into ago. we've context, that percentage And versus put

at across looking the wafer yet. the just hasn't our to percent simple average and from now P&L that XXs, into XXs the flowed went the utilization all So fabs, a

we WiFi have and [ optimal to is fab each business coupled example, qualified. the a was and board. We've products opportunity Carolina gas the our more that CSG, it, the the higher of or bit, improve talked specific ] still in in designed to which North call here reach underutilization levels, is meaningful in XXs our So facing line, to those across a as

optimize time, And so we this. can't move we production overnight. But can over

evaluated, and So there. opportunity always across networks being it's a load balancing for potential factory

gross we are improve margin. utilization, to But beyond steps taking just active

ACG, If it from maybe perspective, by the maybe business in you with tiering. a better we're product managing to our manufacturing cost or look at portfolio specifically, match

This single the segment are family product, new low, that for integrated to market. better optimized mid, but Android's actually not align high great a of a entry are products that of So is tier, our products example. a

fiscal half lower the is In I've generally budget well and gross a expect year approvals volume where HPA, spoken example. among margins fiscal that, continue we expect a we this strong opportunities. be mix, our Defense businesses to activity beyond fastest-growing to for the carry given growth second good to we're seeing. order our high higher and

just partners. CSG, I mentioned run our growth external that business, the highest it's products there high-volume in are in WiFi opportunities but silicon

role faster bigger because sourced. lines mix underutilization, mix, grow externally course, over of in So and to play they'll they're revenue overall margin business less expansion time. will will portion susceptible of a Those product become a our

increases and we size benefit reducing take factory intensity. and [indiscernible] [ From ] can operations, facilities to looking from manufacturing optimize as and as facilities. reductions, our such as well an footprints our Beijing size our steps consolidate at Dezhou continue opportunities for perspective, branch capital seen our divesting you've there to already we overall We're and continued us Farmers continuously wafer expect

but So of a to there. lot we utilization, part simply have opportunity not big It's get a of it. obviously, that's

Operator

Your next Thomas O'Malley Barclays. question with comes from

Thomas O'Malley

on Does does peak that being you're the at terms similar? seeing June? of last the of you 'XX. at update a June 'XX very kind fiscal you look talked QX December shape in shape because if the lighter, year? just call, on you're in year could the of of a bit the all year that similar what Or and With seeing just in September, kind being bit on at about the shape color higher weaker? bit we're us the year what Any with how a the year-over-year was fiscal period of of year looking change coming in So

Grant Brown

Sure. It's similar fiscal to 'XX.

unlike fiscal March. 'XX, September I do expect, larger then than As a December seasonally have that in mentioned, and we'll down we

generally than But largest regard, fiscal saw in in 'XX. what will December September, fiscal So be we different the speaking, year. our slightly the quarters that within it's

Thomas O'Malley

a just the helpful. nail on super but into then in And put the the just coffin business to Android June quarter. That's here,

I some growth June you rates. hard you a in various idea grow customer. large It's see specifically? another size, net better you're also the the launch of from there you the business, kind China, the you Android June sequentially quarter? on So talking into give flagship just about When but any do have out, June just quarter know but color the that you could ability don't to know have to of

Robert Bruggeworth

the this for going is most June, off flat be Bob. June -- to likely ecosystem. is with likely Android most

As you offsetting big pointed them. a out, we're we're with growth with customer largest coming outside and off of our ramp content, flagship tremendous that second

Operator

Christopher Rolland next Susquehanna. question Your with comes from

Christopher Rolland

magnitude Yes, to about margin that to for September. gross XXX just through get points need? gross working we're margin Is we roughly that the talking XXX basis like expansion thing, that or

Grant Brown

for think you're gave a the rough in estimate Chris. the right I ballpark, I year.

you properly. backed believe it into I So

Christopher Rolland

I And other questions. Great. no Okay. have

Operator

with Your comes next question JPMorgan. from [indiscernible]

Unknown Analyst

expecting all Just expecting want you modest you revenue to decline go in segments? growth certain growth. Or some segments? back Are are to that across

Grant Brown

we growth For expecting are the full across all segments. year,

Unknown Analyst

range. talked full that in And quarter, you just smartphone view more low is that XX%-plus the if guess, Has guidance, about Got So it. digits that think That's last XGs I kind maybe helpful. single then -- And is there changed? shipments, of I and year conservatism there? can you add?

Unknown Executive

We're you than for low overall the like change XX%. outlook. No said, And growing greater in XG single the digits thinking market. Yes. still

Operator

with from comes question Arcuri Your next UBS. Tim

Unknown Analyst

you visibility think a you Tim. jumping at then should And some This in hearing year? we we from growth And is in have inventory calendar terms through your some in built progress trend? largest we look peers as as customer Are of content largest your customer March. seeing this in do growth [indiscernible] how next similar into of for about We're year?

Robert Bruggeworth

is I We we inventory customer. and their that between Bob. see can is tell the channel And you us ship largest manufacturers. straightforward. This to pretty what don't our reason is any And directly

and has year anything come or this come that. see now, now maybe and a ago So up so don't we like up

Operator

I That conference to management question-and-answer any turn session. back concludes like the remarks. to closing our over would for

Robert Bruggeworth

and We hope with great during Thank thank Qorvo, appreciate want I for to events. and interest June us you have a on tonight. Investor in forward joining everyone upcoming we you, Day speaking look our XX evening. at We investor and to your you

Operator

for attending now The concluded. presentation. conference has today's you Thank

now disconnect. may You

Qorvo (QRVO) 1 May 242024 Q4 Earnings call transcript