QRVO - Earnings call transcript Q3 2025

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Operator

Good day, and welcome to the Qorvo Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Douglas DeLieto, Vice President and Investor Relations. Please go ahead, sir.

Doug DeLieto

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

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

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

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

Robert Bruggeworth

enable. by welcome, They and to These mobile. customers trends, technologies datification AI. experiences is Thanks, functionality sustainability, trends mobility, the are new are connectivity, Doug, Each and aerospace, mega and and X and markets. products serves we that the driving electrification, possible infrastructure enterprise are everyone, by user automotive, our and including and serve made our new primary end call. Qorvo industrial consumer, defense underpinned global

defense building investing to we matter. In business and the BLE, segment. we our continue on while and expanding are are strong business for for largest we in Android. management. In diverse for in by In including of automotive solutions Looking SoCs advanced our tiers across upon at and products solutions markets grow and of business businesses, Thread power flagship delivering operating and growth aerospace position RF our XG CSG, premium while portfolio ACG, HPA, ultra-wideband, our focused and an expanding customer our primarily

and today with continue Our largest our increasing over customer, our opportunity to ACG are them in programs investing in share is largest multiple we with growth subsequent years.

a implemented XG. how quarter, we quarter's at our organization reflect changes As the We tier in narrowed than to a declined to and on anticipated we XG functions. Android Android across and [indiscernible] variability. This our Day. reduce December force profitability we said response, XG last the for ACG demand Investor opportunity the consumer support tiers faster entry during call, flagship rate other to devices. Android plans focus increase during and the build included in changed reduction higher and premium in In company

Our XG product and now development on is tiers. flagship spend focused premium solely

where majority fiscal Of million. balance in to the being approximately 'XX, XG Android XG with million continue fiscal to be fiscal serve 'XX in is $XXX year 'XX margin. China-based 'XX in ACG we return long-term XX% revenue revenue a our fiscal to we double-digit this, and our the 'XX, HPA, will be to the 'XX, at we expect HPA in growth. In $XXX tier expect to updated silicon we growth for approximately business. CSG 'XX. million XX% and and $XXX expect revenue expect gross long-term to 'XX. CSG. expect lower-margin single-digit programs we approximately decline fiscal impact decline expected our fiscal a we and taking carbide target in of to to haven't FY in gradually, Beginning positive Besides fiscal impact previously we the are growth and next total in have growth by fiscal annually While ex The programs end actions mid-tier and in and CSG, ACG changed ] in go these believe of will mid-single-digit on life the We into again [ Samsung. In for revenue mass is targets and Android again double-digit HPA decline growth awarded, ACG of

included revenue, in carbide gross the process margin reference, approximately business of the divested tier to exiting. silicon and in XXX XG basis of the For quarter the we December are a attributed points mass headwind Android

As on moment, margin gross roughly a flat XXXX, we actions expand reduce margin on will XXX look taking points expect improve we gross fiscal we're and OpEx. basis expand the Grant into In revenue. to by to approximately

Now year-over-year through that space radar, offers opportunity onshore, revenue U.S., facility we in solid-state fiscal year we the let's Tailwinds to by from can to fiscal a manufacturing sequentially. include multiyear tailwinds. one is of for record requiring PA electronic upgrades warfare, In up technology. Qorvo diversified comms, next strength industry-leading strength Industrial year. In onshoring, during These full opportunities solution mechanical scanning and system-level the wins unique system also across to saw and Qorvo were our quarter, systems. December non-terrestrial and infrastructure. industrial support systems business by trend and warfare. In networks transition look revenue in and service sequentially sequential continued was was December was expect Texas. at and defense a D&A and full many, packaging. electronic in an enterprise the in to radar growth up electronic driven revenue market. the wideband quarter radar We up advanced amendment functionality RF D&A, our include active this quarter to December and and Design from the Enterprise, in our and and the aerospace, performance advanced

to adoption leading shipments milestone commercial filters BAW for and begin infrastructure as geographies, creating power During existing production ultra-wideband ultra-wideband in We're management points. two manufacturers enterprise we location by X new at achieved ultra-wideband support the enabled with engagement a this new content of performance both, calendar and expect see significant we indoor related high-frequency and We WiFi equipment enterprise quarter, across with to the this Wi-Fi milestones asset services navigation, we engaged and critical Tier access and of ultra-wideband customers X and driven essential WiFi services. We management enterprise expanded deployments and real-time SSDs. in with increased year.

infrastructure. We in multiple station North both broadband year-over-year to supporting In bottom Turning are market, significantly seeing America. the and base markets. and increased cellular are in are our December in the operators deployments believe we broadband revenue past at we stabilization businesses. X.X DOCSIS now

small for end these this coming correction business we we year. In our positioned an portfolio In markets early continues. We opportunities broadband for softness inventory as India. declined revenue industry-wide are our in growth and in deployments market significant see with automotive, like station in fiscal business, base share, for sequentially weathered signal our the and are have quarter

Tier an Xs quarter, launch. an design the to and interest This includes EV Asia-based supply our OEMs automotive strong to continue in of our ultra-wideband win portfolio a During vehicle upcoming growing ultra-wideband show in OEM for grade automotive products. solutions

solve. In secure and we continues content opportunity Our set automotive sales multiple ultra-wideband addressing up to ultra-wideband anchors $XX to capabilities. of and car bring grow broad a access, in per of The funnel complex new and includes quarterly sequentially, as applications. automotive opportunities type uniquely headwinds. precision tick RF positioned new Qorvo declined to markets, short-range detection, reflecting revenue is consumer presenting other presence sensors challenge, is radar This child December of market content the

Matter customer continued Qorvo, For our across build applications consumer demand to for SoCs.

applications. enabling customer We are This secured based Qorvo X is an a consumer connectivity supported thermostats, seamless WiFi upcoming design an We and X we FEMs provider X of with in of in Japan. applications, U.S.-based network other the sensors adopter ecosystems our their network U.S. to ramping operator operator WiFi win and SoCs to technology migration with Matter X Matter alongside WiFi leading lighting, for window WiFi FEMs ramp a in networking across a multiple a home early WiFi in support

Lastly, our revenue in the providers service BAW sequentially. mobile expanded Europe. In for shipments declined the we market, and of high-frequency U.S. in filters

discrete current customer. total as such this the In During couple to revenue last flagship at than represented placements years. well sequentially, PADs. less though successfully XX% the largest This tuners in ultra-high-band as as placements we the quarter, our during quarter the supported the like Shipments included sales customer launch of expect the decline we of just to the quarter, over customer December integrated quarter.

Max content secured fall we have models wins and more in and the date content towards year. weighted mix give confidence weighted have us said Pro models in Qorvo average launch. year-over-year sufficient model Pro year's previously, change across lower we Volumes our consumer can given and versus to years is this As to growth in heavily any revenue models. content

At modestly. second to customer, design are forecasting currently more than year, this portfolio. customer for been to Given OEMs career-based product largest revenue our we've up before. flat on largest our at these we're this compete to our largest our At with wins variables, be product Android ever invited FY span engaged and programs Qorvo customer, 'XX,

antenna and value. well as will We shareholder throughout expand diversification a will mid-high very broad actions forward I'll include high-volume focused finding mid-tier, launch XXXX cash Grant. are the year. programs in that, opportunities secondary set on and year operating margin free is and in firms. Qorvo smartphone to gross to and already have filters taking well and resulted ultra-highband improvements mid-high driving quarter in the the as tier broadly our as call flagship flow be in strong the tier We we current now efficiency in while OpEx Qorvo represented ramping 'XX. And reduction their flagship over cost in generate enhance for on premium this and content launching of as to growth increase tuning, margins, with fiscal PADs, turn executing band X strategic transmit improve remain meaningful WiFi initiatives structure. low band, a The our discrete and and

Grant Brown

Bob, and everyone. good afternoon, Thanks,

and to were with revenue per results $XXX non-GAAP $X.XX EPS quarter December diluted Our of of share. favorable million our relative guidance

of reflects margin million XX.X% non-GAAP also OpEx expenses were continued which operating guidance, well across recent actions. our COGS and and to gross discipline restructuring Our cost of favorable as as non-GAAP $XXX

quarter On the balance in equivalents. end, $XXX approximately and held million we sheet, as cash of

Our the notes. $XXX at million cash of of quarter our XXXX end balance reflects retirement

$XXX of a in Following maturities. ended long-term debt basis. the the decrease with billion net million of $XX on This and million have repayment $XX inventory balance represents of these notes, We a now decrease year-over-year no approximately we a sequentially remaining near-term of $X.X a million. quarter of

million, statement. operating capital of flow to $XX cash $XXX free expenditures of and $XXX cash the Turning million flow cash million. generated which of resulted in We flow

at of quarter-to-quarter a below repurchased an target our average As reflect and of future including of given pace CapEx strategy timing stock the as free spend key cash alternative our financial share quarter. and our that disbursements. of quarter strategic in We growth uses share sales. in shareholder flow, The relevant capital ensure will and with $XX balances a above X% return sales our Consequently, our several goal of approximately long-term approach of rate percentage the our considers or the $XXX designed CapEx per price any cash considerations. and underlying value. is This other debt aligns delivering of factors, vary to with capital be reminder, repurchase maturities, of million may allocation approximately cash of of outlook, long-term

current our outlook. to quarter Turning

in this million, We and our expect sale month $X.XX silicon between and earlier revenue guidance. XX%, non-GAAP reflected $XXX $XX carbide business EPS minus million, or The XX% diluted between is of gross approximately $X.XX. margin and non-GAAP our of plus

approximately We silicon This We December remaining March expenses of $XX includes a million operating quarter project. in in our portion million digital of $X associated million expense the approximately transformation $X quarter and amount other in the will non-GAAP million $X $XXX in record approximately 'XX. versus with of project carbide the be operating fiscal revenue to million. to QX negligible

our this other interest level to expect project reflecting nonoperating other items. 'XX. Below notes. our offset remain debt, expense FX be or cash quarterly this following paid line, losses, aligns between fiscal of rate our with income is to We million to at $XX along the related interest million, to X.XX% would prior the on expense This operating increase income comments with on gains nonoperating throughout expected that earned our expense fixed operating by retirement $XX balances, XXXX

approximately tax fiscal to Our be non-GAAP expected 'XX rate for is XX%.

increase regulations could XX% new as non-GAAP between and in our expect tax fiscal XX% We 'XX take effect. rate to

well of the impact as uncertain. the U.S.-based legislation to tax highly companies policy for minimum under international administration global as However, tax remain new changes

approximately in by single-digit For growth 'XX, CSG XX% decline modeling flat expect in to gross ACG by and purposes, points to from a Android reflects In flat basis on fiscal expect we decline revenue. At million XX% modestly. carbide. margin This HPA, $XXX 'XX. to approximately silicon expect and expand $XXX of revenue roughly XXX largest fiscal our in excluding ACG, for up to fiscal be revenue 'XX, to customer we million approximately million $XXX to we XG in

fiscal the largest our is quarter consider. Beginning has lowest year, customer. our multiple the June June quarter items to for seasonal seasonal

are business to year. on other side will Galaxy in And We while DNA a like sequential program timing, at of our on basis meaningfully ramp the to double grow years, June prior the for the due be down expected full digits Samsung.

In business carbide reduce Regarding Beginning is HPA, silicon portfolio and our with expect our brings segment reduce actions pricing to drivers. mass variability efforts the each ACG, as to accretive. our exposure legacy to enhance XG. our margin of improve gross distinct business tier margin, and strategies divestiture management Android we margins

supporting growth from will advancements to increase relocation of continuously partners. process cycles. investments our coupled products address of in customers D&A [indiscernible] complexity and Oregon requirements and in our only and our we differentiated scale, footprint results the global and CSG, our design by our most our capabilities strategic faced of capital be with increasingly to align technology The high-volume gross facility solutions, our underutilized the North further effectiveness compliance intensity will customers, also factory product to with reductions. the gas production opportunities size our addition, working including reduce elements continued the as costs, closely RF leverage of cost margin site. We outsourced In multiyear with In Carolina accretive. our evaluate our We're

ultra-wideband reduction, to All of we during the efforts, the expenses, seasonally a we and is aggregate these these support gross million as as our quarters to to We're in XX% these gross across market per initiatives to fiscal parallel, 'XX. in well XX% increasingly subject high and strategic non-GAAP savings be basis, as to margins. evident over as digital scope economic of during finally, On into manufacturing we to 'XX, ensure positioning we focusing across quarter operating internal customer, the a canceling $XXX key expected 'XX reflected enhance in production A typical our gross net average cost quarterly supporting streamlined of silicon transformation our $XXX sale structure. business factors as mass guidance COGS well project In our the of seasonally OpEx. in These business pressures. largest 'XX. On annualized up margin and our differentiates accretive into will workforce and that our quarter and offset targeting programs to implemented margin strong with operating operating our where elements XXXX. Overall, for fiscal the 'XX portion actions anticipated are areas and expect in through taking become benefits are reinvested products. strong significant of gross and fiscal savings steps areas growth our anticipate and our and such to portfolio will carbide we achieving inflationary million fiscal confident QX today as D&A, And numerous product power expenses the both only aligns footprint benefits. approximately Android management, variability. We're a primarily fiscal fiscal in extend we're are The advance success. capital us it intensity reducing will for

is up their Value. recently all [ with ways input that questions, create want briefly our welcome on was We your of shareholders for third and We today's line you the made by our to and Before call results the to outlook. value With for Starwood on we the those to discuss open you. that we ] open address call focused filing value. said, engagement keeping quarter questions this please purpose shareholder Thank appreciate the topics. At time, questions.

Operator

[Operator with question Instructions] Loop. will first And come from Mobley Gary the

Gary Mobley

you million than next that through maybe $XXX will If years. I primarily prepared to less presume the and some heard down and be $XXX year of some customers, in million Am Android you over over I whittle from verify to all math of fiscal wanted revenue correctly, 'XX that Samsung remainder the have in high-end had will that running I something correctly? the customers in your might China? numbers I guys remarks. about X

Robert Bruggeworth

Bob. this Gary, is Thanks.

point, You're Most be will correct of include than on, does on going U.S. your so ] you're the the the on $XXX that, correct, million. it to same. includes down China, we million in because And million do have probably and the it's in some about [ to in Samsung be $XXX going year, customers $XXX this of that but other China HBOX business to more

David Fullwood

that tier. of premium that in still flagship remaining that's remainder The and be will

Gary Mobley

it. Got

Okay.

of have a you and of So question the you us Bob, bit the to a double-digit were Defense in give percent of I of know I'm wanted details mistaken, But been on about there in I If not extent atypical Department showed that maybe in that something the contract, that the repeatability sense fiscal it? might the just of HPA can a grow the maybe Maybe, year 'XX. would assumption a third can repeatability just strength to HPA if you you the quarter. quarter. clear ask the little

Robert Bruggeworth

to Gary. their contractors Thanks, defense of money growth better did see in We to the flow nice Sure. us. really gets to in And when the see timing March. the We're and going growth December. also they it

end the right year, end the obviously, which, our year. They know, the bit third roughly you fiscal calendar little tied then their quarter of own before were orders is of and as at Some of at give us more. government's a the end

first business. see So stronger in half much half our a typically back defense we than the actually

even the the then going all in defense quarter. it's growth than yes, in in saw quarter. quarter. we to expect June also of going faster see We're So March mentioned, to grow business off to December for better the as Grant growth we HPA. good year, But And drop actually

Grant Brown

A into $XXX minute. and Bob much perspective, growing our It -- The that good the there up Maybe expand will a be as orders customer ] DNA is on just just business largely business. will will for ] rather then then as fall seasonal. down mentioned, again, you now in point, I the it our March year, Gary for entire the XX To in in mentioned, And million orders June. before timing, put a coming down program business faster as Bob. and than XX June range. significantly it $XX in again, be million could back [ than as to HPA approximately [

Operator

question next Kumar The with from will come Sandler. Harsh Piper

Harsh Kumar

solidly guess but common than saying my normal if a the the on was lot you're it in beating for business. cellular I better your there estimate. earnings heard I I seasonality Bob, question, think section, correctly, Congratulations you're expecting that first What If a paint then us, customer. Could I'm I maybe a can be with follow-up. helpful, do that's picture just you would largest your have that thinking should And what about and you talk for be assuming we expecting? that means?

Robert Bruggeworth

Harsh. Thanks, Yes.

On X% we'd the XX%. last that down be quarter's to we mentioned call, probably

color add is, as see to our within You much been at this we've range. down at that's able guidance prior all said in not our time, prepared remarks that what our I that we'll Harsh. can And in but And the I'm years. customer, largest as is be roughly

Harsh Kumar

think of needle about or the Okay. biggest Grant, had things on that margin. what gross margin say Bob that two or be lot the would If a maybe things I That's are one you movers side. talked Grant, fair. the you gross -- to for And then,

will would biggest and be XXs opinion? the to high hitting that make about of your margin happening in then even talked ultimately be What things potentially up two go the You XXs.

Grant Brown

Harsh. will on margin an to of margin. we to Thanks, mentioned, just revenue working be relates have relates the two as Bob it fronts accretive Appreciate larger business some the that a would We're gross ones of exit lot of Probably mix. it question. on it as Android our gross the impact as

that ways also looking suppliers. we that December sizable Beyond that's we business, We factory can workforce our we costs the the to reduction and cost reductions of help reduction forward. And of our look that we're had at exiting and going quarter, Android cost factories leverage that [ course, as in us ] there's we're product and factory footprint and help doing some blocking process handled improvement, drive outsourced of other and over. and die in and tackling also a of sort design then, our types things

Operator

Your Tom come next from question O'Malley Barclays. with will

Thomas O'Malley

My was just to relation in first guidance. March one

could largest gave that you the talked declines Android, pretty easily. about us customer. year million for your So in $XXX than set And seasonal you then you in less

a So piece two where to is? The proxy kind in other do from guidance. ACG of to have you get businesses, your

on year. the full of guidance You be talked given to where little about mid-teens a ahead tracking Both those growth is. just bit look

amongst square businesses any a many Android in you're Apple there seasonal, to the down your start? -- two is would help guidance. above said number, here. those March bit or you weakness silicon So just out little a than trying If and Any little that call with other stuff away carbide to getting the I better than to math pockets,

Grant Brown

Sure.

Let me the take question.

carbide March a negligible look of March you're there revenue in we be will $X factor of is important the approximately So quarter, versus into amount right, an December quarter the silicon revenue as million. the

in Android increase It there's typical sequentially platform commented on customer. ramp of 'XX. Outside fiscal December modeling for one down the changes. mentioned, purposes, with entire as -- the our approximately seasonal million of launches. D&A in then the $XX again dynamics March. then that's that, be for and given expected the largest So our material was as both is you business, up And to flagship in a we've

we'll in will both into benefited QX. from the ramps, And of digits. And double businesses continue So 'XX. look of those we're as WiFi large the CSG other we fiscal up business on some then year-over-year, overall, side in forward, the be terms we momentum -- that

Thomas O'Malley

color in June, talked bottom on the amount you normally customer. you the for And highlighted then then And that, down you. you prepared about gave of being a well. seasonal largest as defense decent that's remarks Got

out Just to you prepared way remarks, given from perspective, company that of color could in your you us expecting the what there? give a any total went you're highlight that

Grant Brown

modeling XX% for at to a top of company heading But range if We terms full June didn't dynamics strong grown line. necessarily total that percent it the a has you're provide there the XX% roughly, level. any defense in which into our total very of company down guidance quarter. -- Again, seasonal are you're business, in the

So we've benefited from flagship the then the be June customer And growth, but same the seasonality a ramp and a order than in down. patterns customer heading their dynamic for our typical. also Android that largest larger that at period our customers down into create be large will ramps ramping that's

So number seasonal factors. of quite a

for year, flat expect Bob as pointed to in be Although revenue. we out, approximately the do

there the So in be quarters. growth will outside

Operator

come The BNP Ackerman next from will question Karl Parabas. with

Karl Ackerman

your baseband largest competitor. have next Given status But your that concerned remains clarification years comments to couple customer the Android could if the outlook modem the get to hoping over of been -- ecosystem. on remains hoping your baseband investors quo. on largest that. the the because your of RF some I the content industry at share was remains reuse if I for you remain for was I your could asked address

Robert Bruggeworth

the our what with customer about industry, you Karl, say could largest or I talking you Sorry, clarify? were sure Did the wasn't it you baseband.

Karl Ackerman

whether growing is gains or think there or the reuse a continued content a in change if is to change -- in and innovation modem, of risk iOS there's do ecosystem, no baseband market? area you referring I'm think your you the there of whether that the within

Robert Bruggeworth

I want to make I understand question. sure the

them they stay own the discussion happens If want section? Qualcomm of with been I the lot sure with baseband, You're understand. there's and asking if to stay they make band. what their I out baseband, coming to with a about base the Qualcomm just RF

Karl Ackerman

That That correct. correct. opportunity that? content correct. How is about the think do is we Yes. That for is

Robert Bruggeworth

RF I history every on don't and depends There's required. comment their we been more All model. successive architectures, better has on, future which know but

our parts includes filters that make and other the tuners. for cetera. -- et we integrated them, So All to that modules, better better

it So change. we see don't

David Fullwood

thing to that is [ and provide platform. Qualcomm provide able on only to The reiterate ] internal we've we continue ETIC wouldn't the would said to the we that the platform, be that we

for that difference would would that the major So us. see you be

Operator

Your next will Bank America Securities. question come with of Vivek from Arya

Vivek Arya

business. wanted I long-term of kind for opportunity mobile [indiscernible] growth to this to or your come back

You it said cellular right, when you then to business grow, starts is then of takes be flattish years? flattish ] could what are stays are the regrow. And if if fiscal it I regrow in the Qualcomm year, how of how question off? some for Is for for SKUs? when I got 'XX that sort high-end gaining helps a in-sourcing but is several I XX possible you don't continued content flattish, baking it ACG next know, and my you from And until, question [ does think, it to among right to are mentioned my China in it much start to guess the regrow I expected competition? units real headwinds all the is

Robert Bruggeworth

in us In to Yes. being for prepared down 'XX Thanks for the talk ACG did clear. remarks, FY we be about my actually question, Vivek.

said and said double grow and we HPA digits. we So that that, would CSG

million we're you we gets quarter the that last that to business, said $XXX company And flat. So to about down be be our expecting we million. that we'll talked that $XXX the exiting, in Android category

share the right, it's that as at our a in and got you're So continue phones about the grow to to well Android maintain ecosystem. as be in our we've we've flagship going high-tier talked largest customer Therefore, challenge. to

down. plan. So current in to that's clear our going But 'XX, it's pretty we be were

Vivek Arya

follow-up on Grant for then margins maybe and And gross a Okay. OpEx.

the seasonal gross does prior us million. how of margin progress progresses I that? And margin the through for sense kind the How of you I sense the you gross think OpEx, gave And $XXX mentioned think quarters. then year? to that any

Grant Brown

Sure. Vivek. Thanks,

made assume roughly that June continue would you and same purposes, past in we've And For we below will that to 'XX. We're on our same, seen have approximately, commitments into a impact it to September percentage running higher seasonal with customers And has as or where a existing platforms. seasonal the in on margin support December. that Android we've could to continuing margin. to periods the the that fiscal of follow gross gross sales, the I modeling a expect degree the Android pattern

fiscal we fiscal fiscal way $XXX become $XXX Android be increasing through we addition in of as margin 'XX. to to revenue 'XX our volatile that comes to into to will million and related and seasonal into as on So less look less our 'XX out work gross expect million

terms In we'll terms could And I Typically, year, level approximately those on based minus, patterns that seasonal million of development be on probably see quarter neighborhood of throughout $X of to program June that OpEx, payroll-related items there would expect any per the that normal spend. in are or approximately in impacts. seasonal depending March. model in some plus same

Operator

Next question Sachs. from come with Goldman Toshiya will Hari

Toshiya Hari

quite in initiatives You restructuring or the things on. guys motion talked a about bit that some today you've of executed

Obviously, Carolina You business sold shifting gas your talked count production and reduction. from some about [ you North business Oregon. head SIC to ] the

how rightsizing this or the in optimizing the don't say innings, anything to public, haven't but innings over on would of be innings? about kind you're your helpful. term, in commentary you to late early that you that made and sort Any your company think you ahead, journey are share or you of expect I medium middle company of Looking would restructuring the

Grant Brown

Grant. is Thanks, Toshiya. This

constantly your if ways factory considering the get question, can one. We're Let follow-up footprint. we to with me then optimize and start our to

where described doesn't and differentiates there's great where market make revenue we Investor is, those our In to our the regularly manufacture can consider. think filters will we development. a trusted it demand And example Richardson or and that available foundry outsource to mix where choosing exist. Today, at as their we is our with partners support internally merchant in a those. we're market we'll topic best and we a that way where mutually shifts of technology for over not their scale then some it product it from benefit commercial it And to or The our Day, we about time. fact, it's

products, in-house. are those from both each partners and without outsourced suited individual technologies we a and of the So pick cost our performance best can perspective, from manufacturing support to technologies choose having to our that

Toshiya Hari

That's just a I I think guess, nicely the great. I coming business else or growing. typically to medium and ] Android stream. a talked guys diverse then CSG your about Apple, follow-up, as down, you revenue growing run. investors know concentration over ACG All And on concentration. HPA revenue customer prefer With equal, flat quick outgrowing is [ long and

not so organically, over lean you so down to at to to on it a that come time. But go prefer part diversification concentration M&A there process kind organically? And on much, willingness in that accelerate is or your should of

Robert Bruggeworth

we We as I'll TriQuint lot by transaction have. saw absolutely we good a a when you do did would on. that, [ complement and know, already on that. were a and increase I that offerings owner. the In another be ] active product acquisitions better companies take ]. a if this past, we certainly felt if been would the could value job shareholder we of merged we And we have making like And we technology-based more we RFMD [ our be to open significantly obviously, opportunity two of that. mean,

Operator

from question Research. come next with Your Wolfe will Chris Caso

Christopher Caso

you then that year. a content increase. indicate But I grow a you you year. customer with talked about your did content to up expected largest your increase typically, this a term. to to guess modest this and I'd say, modestly Just of I regarding probably some long you flat regard And there's know interpret as your not on comments could that term short question much but

then growth additional customer of if doing in you're the market you give to Android. us for opportunity could some others? that a share longer you grow what that your traditional that content business, of you? need Is could Or you're just is that. And largest the if to areas? sense where some after going is Maybe that ACG going term, clarify into given So strong fits from

Grant Brown

is Thanks, Chris. This Grant.

comment expect fiscal 'XX. down in 'XX to fiscal be second you in your of future made there's if of And then it likely the there. Volume the in flat uncertain. on the will the December. year, our at to in relative We're to awards we Let versus our the fiscal and opportunity half halves, modestly second And second fall our always our we half to the set. But to me half, date are first year mix I and take the want Bob half that of no the platform. to that comments the And into confident could first the the first and question, 'XX. 'XX up up or to and split to of upcoming Bob maybe fiscal year made largest relative changes for be at fiscal largest customer half customer, in have part of Dave

is So the our more the content versus model. models Pro to weighted consumer

our out impact as there. But of as have think quarter, to So pulls through we content. deliver pointed we're an on mix revenue. the we'll strategy And our positioned does gaining volume revenue, well on continue I the last model

Robert Bruggeworth

there's group our the share customer. we're ]. wallet believe own we've to at their largest their currently ET able PMIC be the up with we second share. [ with Obviously, In what we'll we of clearly if talked take on opportunities I'll modem, the out that pick our on working support, part to areas baseband, pretty they grow come to gain

an incumbent. And in clearly, So taking invited and for content share modules gain work then winning. integrated to been RF we've other that's That participate is highly us. towards in there's actually that from

playbook the that's So team. for our that laying out we're

Christopher Caso

go was think pretty That's you the on rate Got XX%. what And tax rate. to jump. it. XX% the guess I tax I helpful. a an the is to question could It's said it big other

and baseline what If you that taxes the kind are in expectation could what's for dependencies the clarify it And that. the fiscal go 'XX? of could high, if

Grant Brown

Sure.

there's as could are we're to and today. domestically. now, right and or here So improve, go could to that we changes XX% it a happen for There's high XX% as us XX% as modeling opportunities either internationally of approximately lot

to again, to be now, So grow expecting uncertain. we're approximately right XX%. highly it conservative, to But XX% to it remains,

Operator

will from come Krish Cowen. Shankar TD with next The question

Sreekrishnan Sankarnarayanan

to Bob customers follow-up. color the release of helpful. largest you is both opportunity increasing, your think content anything a look you qualify how come decreasing, the it and those? about to expected Galaxy low-end you expecting lot SXX. a then turning can gave smartphone I'm in the Samsung the your to Kind and And Grant. to of when it would I'm first out half, into curious Is I a be had with just

Robert Bruggeworth

Sorry, our do take we you can't any talk about Galaxy that? comments. Anything that want XX not to been But with because to if hasn't released. customer we're largest that's released, not make Dave, going to been

David Fullwood

year, SXX you band compared very when content year similar and last lot A in low-band, Wi-Fi. last And the at integrated of Galaxy it's had look terms to highly similar. Yes. modules, very the we mid-high of

readiness about a this that think impact and before did But reduced change in but talked socket I their ultra factors. those modem content the from had able were the on not general, because us we there that software tuners. we late and similar the it's with time that Y-band just in we've to of standpoint slightly some keep of year-over-year

Robert Bruggeworth

more funds, our the Pro obviously in opening phone a that they content we in commented and The at towards There's only have least standard is add, share comments we I content Max, that could that those larger but my not customer, our skewed RF there. largest the thing Pro offer. at

Sreekrishnan Sankarnarayanan

And now? Bob, the OEM in the I end Android? towards how are China just think And helpful. look the premium customers low it. China participate tier gravitating the tier. more in with do then, premium about when smartphones, you Very at curious, you you Got opportunity model But know so, China if don't your

David Fullwood

the we've that in we as I to part high we'll our and with and And customers all we're the into guidance customers, tiers. And the global Yes. into longer premium challenge is grow talked as overseas our have mid-tier support end. them the In certainly have market in mean, reason continue no basis they annual the on and but about that participate targets in to and we had that's the those tier. collapsing can, of those there markets, in, supporting much flagship portfolio. we've did supporting gave portfolio. The that they end domestic they that tier and all China, they the the we're where support low from They going really entry premium

Operator

with Next Susquehanna. come question from will Christopher Rolland

Christopher Rolland

that? your flat awarded integrated that should if not assumption at but include would how largest PMIC sound like been include Is about in understand that they any up, revenue I envelope customer The yet? or not correctly, does that opportunities the modules tracker to have we that think

Grant Brown

No.

areas our as fall in basis date feel confidence give strength before Day of we've we in about that also promise models, where that not a Investor in have and content talked we're very on we the shared share. in we us delivering continued confident gaining of share there and only apples-to-apples to areas content have awards but past as Our the gain to kind

how the the other But yet that So largest half give and to into of indication than related of entire -- which fiscal and haven't customer. I of our we into 'XX, it. color customer to our some half to comments are details related primarily things the been should 'XX we timing or related released. you fiscal to some that on any compares versus sell products the how that, get the second can't first portfolio did give

Christopher Rolland

needs you some capital, capital in what in overall? moving about cash terms forward you're forward, Understood. then footprint. of of looking priorities perhaps And can of your consolidating uses your given this terms are just And talk of

Grant Brown

Sure. Thanks, Chris.

So change. there's we're one capital some go and in then, needs to we the for had in debt opportunities inorganic regularly to form invest terms of repurchase. time. was allocation, our to committed we And and value that discussing to cash think through with of the different the from review about of of quite of our growth course, retiring those shareholders for return uses to been every very CapEx, to working way capital meet our quarter. Board We no We organic, share

and that at waterfall we change Board the review there. the look with So no regularly,

we our time, in differentiates of then order of differentiation. in-house and one we're scale improvements CapEx rationales And factory to intensity our will outside and products, largely primary invest need over where that leverage process us our so place, our and/or to in partners and use for a at having maintain their to perspective. it is, looking to CapEx prevent capital from that. we maintenance again, the manufacture from network in terms more the any strategy we'll capacity retain It's there we to have In

Operator

next Roy The from with question will come Ruben Stifel.

Ruben Roy

this guess for question is Dave. I

but I a stabilization in D&A you lot a fiscal enterprise, hear just I'm the appreciate we've points a for like like areas nice broadband. What's minutes you We and you on momentum thinking longer-term a environment segment, seen by few talked talk maybe the love heard guidance lot of the could data about guys You visibility lot you're sort infrastructure. 'XX those into, wondering flow markets? It's about these about visibility. of end visibility segments, mixed would here. through to other industrial, about and was to spend of that I trajectories areas. hear how and little sustainability your the design I activity wondering growth the the could if in if a more some as guess,

David Fullwood

those some industrial. term, in markets the we in and near automotive running definitely, of existing the see Yes, weakness demand of like programs in

a we're that there, of in engaged businesses that addressing. a new we're lot of still growing relatively the but And small from lot content we're a it's so and -- base

opportunities and we're So from the have excited the have growth opportunities in about forward-looking that of we a customers. engagements standpoint, The funnel pretty in we that our there.

the of X navigation that services. upgrade WiFi indoor So have enterprise, we've in the opportunities we and adding ultra-wideband about location talked and WiFi for in to real-time

all starting the customers that's as -- solid-state Management, moving some then on Xs. into we the So from have this end definitely adoption we've engagements Bob in there more all mentioned Power going seen our to move good of forward ultra-wideband got We've business really Tier got take there. In good and across growth drive opportunities all content we've off some segment. in the And automotive, enterprise we ramps going well. year.

has X and strong, there over one to really the leaders X engagement ultra-wideband we been see in the that the next we of expect And So happening be expect market. to adoption to years.

bright us. And for spot about defense is as one opportunity been a well. part SATCOM talk the great in That's a didn't that's in we So business.

station gets satellite, time content And of up in a you like so of more when space. LEO direct to when you at look dollars at of in base the every satellites going are look in have deployed we sell, And one the space. the that's could thousands a those that

of satellite. have of could we per tens per So -- content content thousands dollars of

So for opportunities defense our those great growth us the defense are of market in business. traditional even outside

Ruben Roy

hopefully, ask, for a could I quick Grant. follow-up If

areas thinking little like of into some maybe of the through a some Just talked bit talked investment repurposing longer-term wondering, you sort think you about savings and as about into OpEx about. But just you ACG, should I'm steady two state ACG we be will large your Or meaningful OpEx, on expect customer, longer it segments? focusing any the other versus you change in do of in think term? of kind mix

Grant Brown

resources size We're based a the not functions. put sport the are any the on segment. given company is how in the much shared operating and lot by looking within the that allocated OpEx There's improvement of necessarily effort at of company, across business across

products that think going think reduction. we develop we we're we support. That our revenue across Android OpEx, company. The which workforce and map look the about we to change And to appropriate when in 'XX in took So was, as 'XX as certain entire most the fiscal to forward, product cases, and it's we road discussed and about action recent specific reflect today.

Operator

Next with Equity question Snyder will Charter Edward come from Research.

Edward Snyder

assumptions that you're with. gains, make just same that an clear the include, little I there. year. on does Pro the to are assumptions developed to leasing going your to a gains. just was down what dig those guiding content the because your want customer is alone. last X you're correct mix X for model as say, much units I is pretty if start max are on comments, based to assume content the internally on just want we and guidance with it for those your just to SKUs it different off the sure seems I know I modems flat, want are of that ETP split largest and If be content let's for go fall your how up bit more Pro, different Bob, And confident

Robert Bruggeworth

Ed. Thanks,

modem, there's an As [indiscernible] we're if our very in will confident there. yes, far be as internal ETP

already they're content awarded. for think what belief far this already I use we many comment much that. or as As on very year not year, we're going to modems pretty but going we been on we've been confident did anything the based to already, awarded, I'm We content gain their our believe that in how said in we've

Edward Snyder

Okay.

itself, is a if the was awards So awards right? on increase see else content held constant, -- everything you'll space

Robert Bruggeworth

Yes.

Edward Snyder

to they're of the talking terms the into radar the a European it does? side can about, And war business our it's of sure [indiscernible], of importantly, plays I Qorvo anticipate it an or stuff, to I the in like these the Great. of systems very then know to how well, -- the Okay. on business, exactly could, for get and I had plans, get just just but going best for, the change? I of trying Do anticipate kind sounds mentioned spending are you've consistently provide been defense all probably the not if was but we're coming defense about how some that a if more LEOs, fallout that's But overall. talk you bit you much you, long-term drones. I'm a much maybe up the to little do that that for feel of idea know they're change the from you lot and talking from about impacts color because you too.

David Fullwood

upgrade from it's radar of those the like And to driven you systems radars mechanical largely the mentioned. Yes. AESA by

the all that's with content there. and closely opportunity, primes leaders yes, engaged the so and market a And we're fantastic in

see have ground-based a opportunities thousands any going we we of for content dollars up million yes, that $X system. per airborne and system for to of of hundreds radar So on planes of

a something on. So for us very, we're definitely and growth very focused area it's

Edward Snyder

gain right? It's a still content

David Fullwood

Absolutely.

Robert Bruggeworth

does, it Ed. Yes,

it's in nicely. say if it. sea So plane, grows, it I would land, already if in in radar we're out the And in grow or we'll

Operator

will Rakesh Vijay come Your from next with question Mizuho.

Vijay Rakesh

government are Just you because exit giving. I the have you to market? China exposure that mid the to how the to subsidies low-end China move end the mean, a would move Once on handset the the China China for there's side, of OEMs Android, and [indiscernible] much low

Grant Brown

Vijay. Sure,

million So we had said that run on we $XXX rate $XX right the level, a and per mark, plus perspective, quarter track million would down expect from minus. or China are a to Android we around to

Vijay Rakesh

then you strategy. of And move fairly pretty Sandbox customers, -- that Got compete? kind as of to is I'm similar Does sure view to and you start that two just on more your the mix more again? that it. constructive and very top have risk mix peers make your competitive a that Sandbox

Robert Bruggeworth

there. changed today, I has Nothing they're both would competitive. say very really

customer Our mean customer. second what the XX as well largest been that's for dealing last at as I with we've years our Qorvo. largest

change. where not which made a we're more big in sense. The that been, as China, there years place really we we've money that lot change consumers seeing much as entry-level has for about been change That's in over a real the the mid-tier, of So downshifted was talking great been looking phones. has

Operator

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

Robert Bruggeworth

events. evening. tonight's you to We for Thanks appreciate speaking investor many a we with thank We great again. on upcoming your look us of want and have to joining everyone call. at interest, you Hope forward

Operator

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

disconnect. now You may

Qorvo (QRVO) 28 Jan 252025 Q3 Earnings call transcript