SWKS - Earnings call transcript Q3 2018 | Skyworks Solutions, Inc.

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Operator

Good afternoon, and welcome to Skyworks Solutions' Third Quarter Fiscal Year 2018 Earnings Call. This call is being recorded. At this time, I will turn the call over to Mitch Haws, Vice President of Investor Relations for Skyworks. Mr. Haws please go ahead.

Mitchell Haws

Kieran. you, Thank and conference everyone, Skyworks' fiscal third Good welcome XXXX call. quarter afternoon, to on are our With President call the me today Executive and Officer. and Liam Officer; Kris Financial Sennesael, Chief Chief our Griffin,

risks we statements. will statements that Please our discussion are refer I that and be may future statements filings, include SEC for like release our could remind to Report relating to Before on everyone outcomes begin, recent XX-K considered differ from our certain press Form or and information on to results Annual to expectations including would forward that actual made earnings looking cause adversely and materially any today. forward-looking

Please Investor a complete In our guidance non-GAAP I'll will addition, for measures include Relations company results call press website GAAP. to discuss we turn and Liam. release within to the section refer to our past of the consistent that, With the practice. reconciliation financial with our

Liam Griffin

a Chinese on a choppy and than government Thanks, QX. XX% produced year Mitch, entering above and We and through welcome and to once expanded increase $XXX basis both another despite market cash financial growth, gross record generated XX.X%, returns. consensus strong record seasonally revenue the We again million estimates. points are greater margin team of results solid revenue XX mid-single-digit will a up everyone. backdrop half Based The Skyworks From in end continue second ban to than customer. This $XXX record a and outlook, share $X.XX, imposed deploy on better sequentially on we per finally, the we quarter our trade the during to million create cash we share dividends. guidance. delivered with earnings for our of shareholder repurchases a $X.XX value, year fiscal And perspective, nearly sizable of our year-over-year. performance. QX while track market We a EPS returning QX

premier by mobile reach, our product and broad expansion is accounts. expanding and market confidence underpinned Our

networking during new example, leading the streaming Partnered production with quarter, platform. CAT-XX gateway, Fire footprint data home engines telematics AT&T at cards and functionality, of and for solutions improving mobile voice commenced platforms. mesh extended and Linksys access ramped dual-band supporting precision XK we payment we connectivity Wireless solution services. our LTE content on deployed Enabled a fleet media across automation introduced DirecTV GPS Amazon’s applications, For networks TV, enabled Cisco, MXM capture Sierra TM Nest BMW for sharing, and ride for management high LTE

lower leap of represents IoT, spectrum. important dramatically With portfolio. our tuning to the hurdles latency significant XG there make connectivity Skyworks we quarter, investments knowledge, platform leveraging be for formidable car a SkyX markets. antenna artificial end connected higher autonomous LG diverse is intelligence. powerful Huawei, deep partnerships wins a of a growth cases this including summary, of at proliferation to In Nokia. to reached MIMO strategic time flagship key of And order And also XX our To set SkyX and enabled European this estimates end-to-end more upon volumes performance that Ericsson, base the infrastructure we is critically to Skyworks. of opportunity and the battery broadening wide IoT new overcome. across and design to the require milestones a end, by will in that expand our performance deployment spanning then past the continue XG systems to we from markets, providing Vivo, accelerate mobile, a Oppo, the strategic with launch architectures range We solutions IoT, secured supplier. our Samsung, pipeline rapid stations massive at by XG the XXXX. for leading significantly devices engines the win for of aperture XG connected will are In powered uses system catalyze to ensure us speeds same to billion example,

newest is of XX content to from antennas an bandwidth X megahertz incremental Our Skyworks number gigahertz. source increased This across and solutions XG coverage enormous growth the enhanced as substantially engines. XG deliver of for

and we enabling ubiquities In last nXX, is the things. addition, XG last of networks for outlook. for nXX over call to our turn XG across SkyX I simply SkyX new our nXX. now facilitating sub-X connectivity integrated wireless our financial will discussion quarter’s quarter bands people supporting successfully and proprietary both Kris demonstrated engines and and performance and radios and Quite new fully gigahertz frequency

Kris Sennesael

gross quarter Revenue basis XXXX Lian. as XX exceeding profit $XXX $XXX million, estimates. of Thanks, margin for points with was at million well up as year-over-year. the was sequentially fiscal XX.X%, consensus Gross third

operating expenses $XXX quarter to sequentially down Third were million.

into As a we of million operating margin $XXX operating an result, of income generated translating XX.X%.

of Our exceeding quarter. tax share translating diluted $X.XX rate earnings $X.XX. income guidance by X.X% was per in million, was our into Net $XXX the

the to Turning and sheet flow. balance cash

repurchases to in share our flow IoT cash and was total million were investments from growth we've million paid over markets. million the fiscal Dividends technology $XXX shares supporting X of total emerging shares. opportunities XG a common for half the as revenue and $XXX second bringing of capital the quarter quarter Third our calendar were stock expenditures this necessary $XXX X.X repurchased $XX in for of operations year further million million well million, as

and repurchase $X.X to of In debt. fact, shareholders essentially no of cash all quarter our in payments. back the free and returned share balance 'XX, And the through the we flow enter and billion fiscal dividend our over have program we cash investment with

outlook. moving our to on Now

fiscal further gross fiscal fourth at and margin XX% billion up with to XX% sorry, or for sequentially anticipate XX.X%. fourth XX% expansion For $X we be the to the quarter between midpoint. quarter, margin expect the We third quarter, revenue gross

of We X% of midpoint planned expect shares. of rate $XXX at tax and Below per ranges, million. these roughly fourth deliver count sequentially. of of $X share million line, Accordingly income, diluted we up $X.XX, in expenses the other to in share a diluted earnings expect the operating a XX% the million quarter XXX we

XX% to announced our increase let back our model in confidence share, $X.XX the also a Finally, today Skyworks' sustainable me to in that, Liam. business With dividend turn quarterly capabilities. and per call reflecting generation cash we

Liam Griffin

Thanks, Kris. Liam.

applications developing Skyworks our in our and our let's of prepared continues financially results wins, and outlook tomorrow, by providing open returns the our applications, competition out enabling execution operational Operator, successive number scale, That markets, premium superior finally, SkyX As driven the customers generations, outperform, demonstrates, cash strategic momentum decades allowing world-class our a to solutions content-rich increasingly for design strong platform XG shareholders. remarks. performance line concludes of experience in of covering broad to invest while technology innovative over us questions. and flow to

Operator

Instructions] And Craig comes [Operator Riley you. from thank ahead. from our question B. Ellis FBR. Please first Alright, go

Craig Ellis

you help how with for Yes, Can thanks clarification in some could just at segment as we the I'll XX% growth for sequential that? with question. Kris. for then segments perform Kris, fiscal the you start a the breakouts and guidance provide color look on you taking the in quarter? the us within the can the And third quarter fourth

Kris Sennesael

Craig. Yes,

of broad market was total revenue, XX%. was QX So above slightly XX% approximately in actually

total of XX% approximately revenue. was mobile so And

growth about there. Speaking continue really market, the see nice broad we to

to in rate. run We year-over-year, the revenue we low so are annualized at now are and a billion mid-teens growing $X.X

doing the IoT is that��s segment infrastructure see car, board, applications, especially see in including so the home, broad there really, And machine-to-machine really well. the applications. that, some segment, strength the good we market connected really good connected addition we So the traction across to also industrial consumable some on really

Craig Ellis

expect you fourth the others? some quarter. And part to markets quarter? second in continue been clarification question that of Would grow broad it’s up the in was to Historically down and fourth quarters the

Kris Sennesael

into fourth growth quarter. expect in broad No. thrown the We markets definitely sequential

continue so on growth. that mid-teens year-over-year And low to

Operator

you. Thank line to ahead. now Burton Please of Mike from And Benchmark. go

Mike Burton

Thanks on for and results. my congrats the taking questions

the about talk then calendar to of we business, how that quarter? And China the the about on June in size about First, be thinking in talk second can 'XX? the and OEMs group business should the how of of fair half Chinese that us relative update your revenues momentum you

Kris Sennesael

Yes. Sure.

It’s well some China revenue. course some for faired mobile, a great at markets, growth players the in of XX% about to market were parts. it’s most in for QX. of China Xiaomi for us We the of China been look is globally actually region the we right. us If to there’s some deploy emerging QX the And many China, Vivo, IoT, and despite trade also sequential of XX% emerging So dynamics. Skyworks, able et the of in deliver there’s pretty up infrastructure, our put specter cetera. of the They places. choppiness Oppo, number to A

partners baseband also Should have that, in set benefit we So of deliver that diverse we’re that. in a we help interest note China. very that us from

Qualcomm. got there partnerships got HiSilicon we’ve attached Intel, within Huawei, attached we’ve with we we’ve MediaTek, to to So got product, we

bases all position So our the we’ve covered solid. got there and was

Mike Burton

And talked with costs on thoughts so us some on there. based those some down quarter, Thanks. quarter target initiatives can guidance margins, can to progress and a going second towards cost then the next get -- to when be to last we update the of closer your maybe half XX% looks some like progress the in. about dropping kick the in It you initiatives it's XX%, target? for XX% about timeline on latest that But just you

Kris Sennesael

Right.

make. I’m margin with pleased progress gross we view, So to from a the point continue of that

June in were the sequentially basis QX, well as year-over-year. quarter, we points So XX basis XX up points as

to guided just the is midpoint, sequentially, XX.X, so basis XX up XX we XX which XX to up points. at points QX, For basis

to continue of we target towards progress model So really make good our XX%.

Operator

line BMO. now from to Ambrish And go you. Thank ahead. of Srivastava Please

Ambrish Srivastava

via I you. questions. related I’ll answer the maybe hoping you just cash on divi little allocation flow Free down follow-through good came a increase. a progress, mentioned puzzled was and with these as But the could lot being well up was lot and quarter, and Chris, I us as thanks inventory. this the Good start was capital there? to a AR capacity are well dynamics largely also as And understand of investments. lot new help is CapEx to you up what Could you kind a that as

you that a be I mean follow higher than quick Liam what that please? And earlier had guided does up have then CapEx So to? would for

Kris Sennesael

QX also so that inventory are Yes, the dollars strong of softest to situations. there a And be see continues saw the quarter seasonality. September generation and quarter. a as an receivables' a in increase the of generation very well you absolute and seasonal April its June days then of business seasonal have in up inventory all some December the because typically months you of the be the in strong. And very in flicks of as cash receivables and cash are anticipation to still as the going of in point start well of model have because first over strong from dollars and Obviously part decline as Typically both May starting view, going DSOs ramp and increases. somewhat is in seasonal is both of we a we as we in

you at if we LPM $XXX said that, result But to of operations Having quarter As as million. backend free AR. of point has a of impact view point that, QX it cash slightly from flow. was quarter. higher you look QX continue from the cash, the loaded. a CapEx of a result on And in strong DSOs, view, the a well higher somewhat as that, muted somewhat generate slightly was generation a as from And it cash of billings very see cash within

definitely of in capacity expansion of quarter. was in of there all here CapEx related that the September steep a the to is So ramp front preparation us quarter. it December and have CapEx in most heavy or the we Again

related to capabilities some technology as continue technology well. as be we leader expand as well and As investment our a there

Ambrish Srivastava

dynamics. lack Okay. I And just a sure, no wanted I you because daily the to have of clearly lot make up confidence understood

somewhat I seasonal But such So on you. and would look there better where seasonal or how Thank characterize third that? thing environment or when you at the is calendar that less, the even anything quarter, more you're than worsen the anymore. seeing this you Liam, there, that trends that don't mobile just the and is if know

Liam Griffin

Sure. Yeah.

for the some So quarter see that calendar saying you're with ongoing. calendar sizable this work quarter, we started year ramps preparation premier so time customers. third is third pretty the to a And

MIMO really that's content actually grade ability We're comfortable less bringing to our very expand to more up designs late our manage more rate are content, bringing reduced a important. technologies, improved and -- data fee of We move and reach even on in more higher architecture. some the our of platforms connectivity, DRX functionality intricate on

customers. our Just solutions rich bringing out those to really

the calendar we're should So it's how now. where very, the QX ramps. That's the come up out playing in right and early moving QX those Again very again. number calendar then innings of into

We well. as have very this good visibility on

Operator

Craig Stanley. Alright. Thank of And line you. ahead. Morgan of now Hettenbach to Please go

Craig Hettenbach

Thank or not in you're how about you. Yes. you incorporate with How discuss September of the thinking that's quarter? terms recently ban ZTE guidance into Can just lifted. the

Liam Griffin

Yeah.

business in meantime, lifted, with ZTE million that QX In and quarter. good approximately the per ban which is quarter. June not there has was $XX our So the million $XX been to was Obviously news. the

However, it take ZTE take quarters. time multiple to multiple will chain not supply could months, their for if rebuild that

we million bit ZTE to of little do a it’s a expect in couple of related So just but revenue QX, dollars.

Craig Hettenbach

that increasing about the on move just that. the capital opportunities? Liam for allocation also step and viewing context noticeable you buyback how uptick of up in can a Thanks M&A as just talk in dividend. you’re to Okay. And follow-up then

Liam Griffin

mean, correct. reaches Skyworks believe the for is great backdrop and happening there’s machine market really do I very cash strategic investments. engine Sure, the favorable we mentioned, We're there. the technology, and the expanding making continuing And some I well. sure. lot stuff is of Absolutely, understand advancing to fortunately, mobile, a The us. Yes, as I

to XG parallel, for broad do be double-digits. our us, also the things In We markets we and about and going have well. talked upon incredible to is which ability an complex Skyworks opportunity

powder of fortunate acquisitions balance table the to on business. the So there's the when with sense. today generation, Having really have do a lot opportunities they the needy all the that, sheet, cash make said we’re to card

So transactions go at forward. a at on will that to looking but been look and have we'll if it, bar have we continue a great to high and of we very we vigilance deal

best So Craig. it the frame way that’s I for think you today,

Operator

of from ahead. to you. Thank go Barclays. Curtis now Blayne Please And line

Blayne Curtis

basic of wanted in if of China this competitiveness that couple I is is Liam, is the this becomes you China saw we solution you OEMs to for part a you as years? bigger mentioned in question, -- number create business me as in ask going Let there of to next that look based ball the that mix

Liam K. Griffin

Blayne. Sure,

at if think you I China. look

working relationships within great region and players. As stories and and for incredible mentioned, I been we’ve leading years partnerships some have the that success

As earlier, I mentioned play in all able partnerships agnostic, the to based we’re again angles.

packaging in our to some degree as bring on lever unique the going those to that require really to needs. going all that to in TC on table a go supplier, So speed, our the XG as problems create data different the depending DRx, filtering, where unique China carrier we is ability we we new configurability player. gallium our be into rates high customer’s do can thing move big, greater lever opportunities well your that can with where homegrown to are depending the other can aggregation, love expanding start big extending and our the to be They’re DRx. solution. of is and focus going And what to arsenide we we is data speech in can be much saw, on really downlink we And solve

gets only customer each what they they what want. exactly and So

you China, As a flagships one global of more that’s of know, markets. have kind for rather models proliferation or you in two of that than

it that’s get their shares do. work on into us to customer really So XXXX what gives I our needs is get beyond. and really And And chance we to the with ability it to intend important. exceed right and based each a we number think

Blayne Curtis

them already. one. last maybe just a [Indiscernible] then And answer

the how little the different as bit Just year, year that before of as we last in of of than that. with did just kind ramp at I'm Obviously, years competitive compare of ramps of prior the our a mark last the guys, couple kind curious kind was look years. you on versus marketing timing those that kind you this curious, even? of

Kris Sennesael

following assume I there the Yes, for that you're Blayne? right through obviously large what -- think the of seeing a Yes, now second was. predictable going so customer half be I see cycle we're some calendar the ramps the And so Yes, referring ramp, and will which cycle, what right is year that -- what it put that customers we'll that? to we production the ramps. doing our to support we tracking projection be just on today prepared things to and forth for are be we similar outlook the now larger need those to to deliver to more

Operator

Piper you. Jaffray. Please ahead. And Thank Alright. Kumar from of to line Harsh now go

Harsh Kumar

guys. hey Yeah,

results speaking, generation solid At has guys. And if a volatile curious in. built could all by Liam, follow new content was you congratulations of this of your talk and digits, did would you what a you content phones I'm if you if I And I just generally single then digits increase largest curious maybe of broad First have double if markets you that's saw customer, category up. that increase color? about kind put

Liam Griffin

talked but Yes, to performance of detail here I and mobile burden And much our to for the level become technology with technology that. more stretch it's customers. greater that's think every mission a It's value that great into our happening bring now confident cycle I'm We requirements on and about and the too and again to Skyworks. continuing daunting. obviously Harsh

from across all to every The able Wi-Fi such while LTE, DRX to platforms have big set wide reason create to throughout of year. Bluetooth content GPS, We diversification a is ability mobile. raise we're technologies a to

the ramps the got et on 'XX, but cetera, technology 'XX XG. prototypes we'll today, the where in now forward labs beyond And that not working of positioned there we're we the notes blueprints. are and and in and numbers XG some the for new our they're And upon be in us and now it

Harsh Kumar

for follow my And then Understood. up.

again. which September last XQ quarter up in you up and the March, was calendar, Is the I then expect the it the you the to I'm this think which you're sorry, be that fiscal, that is call that said kind December XQ the sorry, calendar be again. year? to apologize way I out quarter accurately, XQ Is up mean, expected still you checks

Kris Sennesael

Yes, absolutely. That's right.

Harsh Kumar

you. Thank

Operator

of from Thank ahead. Vivek Bank Arya Please you. And to now line America. go of

Vivek Arya

first years? Thanks that still on Kris, for as QX. the use you to assumption for XX% taking my gave good recall X for or one next whether then part X number don't of a question. for is CapEx. the I And Kris CapEx for Maybe

Kris Sennesael

Yes, absolutely.

basis, some some on or So if a you at to couple above are of right But there look year revenue. full seasonality LTM number. of on if year revenue is years are quarters look higher, CapEx is a you lot But this even to XX% the are we next CapEx basis a and even approximately XX% good it quarters on lower.

Vivek Arya

to Got year-on-year, your point if of it some is just to look up outlook sales September mobile we fluctuations? and I mobile you through your Liam, Do At see content back the sales because look Is December at seasonal. start as maybe half, should expect it. working as assuming still kind start that, And we grow unit be to then quarter of up. we’re year-on-year? is the at what

Kris Sennesael

ago for Year Yes. cards definitely in the that’s us.

seeing technology gaining not solid is as not sequential right, which a of this with December expand mentioned. But we are our expect reach into December. are go We’re quarter to on do content, another on you. we I call, And we guiding able

we that absolutely It with be that place. what in sequential. the well as to exactly we follow finalized is. year-over-year haven’t expect will through if solid But We number be up

about So feel that’s we good happen. that the today. do But best can we making

Operator

ahead. Nomura Krysten Please And line of Sciacca now go from to Instinet.

Krysten Sciacca

And minimize Do Chinese starting expect seen North with does. broader. history we’ve trend to at to bond reevaluate what kind think you as American a that other content major is customers mimicking that there? or increasing almost American of First this North see do this little OEMs question you I still as We’ve flow is through OEMs customer have just given their it much the possible. to trying and seen Chinese

Kris Sennesael

opportunities have an move the in just are LTE $X content face to and dollar global we and increasing. potentially of X The has seeing value, lower pursue Yes, the that been some they’ve you China Chinese vis-a-vis so X content product are value, to larger players. players, what the today But that. can OEMs $X is to that the of may at larger we

lead If you the significant much market, opportunity higher. look that the players more is the at content

of would anything, in players mid-tier X the could more us. if be of industry China mimic So if to that brands in we get the X good some for

back So it’s bit a of and little a forth there.

they product. China, global fully So sell and in don’t a again often roaming

it’s a roaming on Mobile, So doesn’t bands the would frequency need need. China global for model necessarily same if Unicom, China example, at just it

but products cost. and the so much there's So see the are really based product not does customers in honestly how their on application, perform much and we case differences every it are decisions performance regionally need selected will for on in how well

Krysten Sciacca

have And any that I do then your differently. speaking all? topic my if the outlook? of the follow affect on bit China know business from Or everyone affected to you you will for at fear affect China, of kind recently your How up, do retaliation tariffs a business expect little operations

Kris Sennesael

No.

So little in to lost that been of no the The take exception, it from on recuperate we the trade bandwidth very but seen some have and has business will with band revenue. war QX, or we export CTE course, QX. revenue to our lifted, where of time impact the impact

in and are at U.S., the If side, trade no the tariff tariffs into war countries. from duties from on you There new those we many exporter from components an components. other look Singapore, of China or import are the Mexico

but us doesn’t we that impact developments, business. something it that don’t new any now, impact we so and on see will definitely sees evaluating on any It’s keep for And our at all.

Operator

from Timothy of line UBS. Thank Arcuri And you. to now

Timothy Arcuri

one-timers in million And the includes sequentially like a $XX of there of suggest is really right Kris, like some grow it that quarter. would you're -- markets Thanks calendar of XX% September dollars rate year-over-year the your million so that that is few growing third year-over-year. the going guidance looks XXXX forward. back, I sort if growth in in to it put it Thanks. excess only that broad or in if going then Are business looks December much. maybe ZTE,

Kris Sennesael

math. probably is low that offline What mid-teens broad see to calendars We the take is can on I at and fiscal in QX year-over-year. market this here in growing that QX

Timothy Arcuri

then a of be And you accounts? with to Thank TDK Qualcomm seeing anymore now sort Winsemi stuff. a Are JV Okay. can bit of player? environment? there have you them little pieces you and any your talk major competitive of the the the about They and seem Do see all you.

Kris Sennesael

that Yes, the Qualcomm mob programs mobile situation that look if and we technology respect Qualcomm great we're is than landscape seen time. pursuing you And today But also player a our deal they're significant Qualcomm up me where let look already right a been the effect. to will assets chipsets next baseband. the number that of a we line in and remind at programs platforms great other haven't in, on for a our we we've there

too of their of an a their with our part really And integrated be solutions, much our haven't product. But seen we ability fully that impacted revenue is have that. do to growth. we system So of none

Operator

line Thank Baird. ahead. from go now Please of Gerra Tristan you. to And

Tristan Gerra

to comment market I half. in Are North for typical now up year the general range in the in you quarter? with in for you guidance is be new small the past revenue have know of X sequential the you design seeing growth that cells to departure used strongest driving for about the shift in that share ramping And see second a potential that around as you previous years band frequency much which the also second America this the for in can only wins half. incrementally

Kris Sennesael

the in leading with very the on generations. put to more thing with thinking DRX Sure. that's bring getting those more happens. XG into opportunities opportunities so content with about more customers resolved. deliver. downlink It's base amount Yes, can for that opportunity to on continue technology, bringing successful and into XXXX have continued unique you the want tuning as on we customer the get get performance rich Bands be that's is not and pressure industry, great the we with the bands bands that their uplink important that But a added and forth opportunities put players see team to XXXX for in systems now where opportunities can application and are of SkyX, tremendous that going you yet reach

here looking And this So QX. prepared at. respect right and for. designs we we've have the make require just with We're numbers what about And guidance now last for that been we're We that's the where that to will very visibility that's happen. spoke quarter about execution to the well it's to good on certainly years. these doing

looking to and several we're the So we forward executing to as bring next to up over years the the ramp also market. following XG

Tristan Gerra

relative you to year? time America, of then we’re normal of say quick North this at do any would a you outside of the the as level And see follow-up Or pocket inventories in smartphone that chain? supply

Kris Sennesael

Yes, the absolutely of we this levels time for are year. normal

Operator

Malik the to line Citigroup. Atif of ahead. now go from And Please

Atif Malik

Thank hike. taking my the dividend execution congratulations and question and on you for consistent

Liam for question on First XG.

SkyX. expect past, products? XG second with in talked You should we think half when you about in guys have double-digit I about revenue your just the in a very Can 'XX. have strong talk growth significant guys fiscal ramp portfolio you

is there we So update significant should sales? expect any in on when the ramp XG

Kris Sennesael

Sure, that I get in of of to right in underway I’m question. of team’s front the and one to movers work become now we’re proud be and ability is thrilled our XG in position. first sure, Well, really mean, and the great this

really We 'XX. by infrastructure lot see we on activity you within being revenue. today of But kind is revenue think the I is a we’re connectivity late XXXX also the real maybe but again, translate both we can think, on XXXX, seeing what get design side kind really around where of of different and So a smartphones. of posted answers, probably heartbeat

there, in products executing teams baseband that investments there’s Kris Also technology make very complex, infrastructure strategic our working are very, making side all work mentioned, lot complex our capital to very efficiently. to providers of with the of course, great make in comes to customers a a unique and required sure together we get want XG this Now, and of that ourselves. development and world close that very notice we’re are to

some So at. And looking already. good. again, that’s testing Things Solutions what some trials look had some and of we’ve we’re our with XG

continue continue that to to We’re products scale going deliver in these and refine market. again, be to come position to in when to

Atif Malik

then update Great. moving can some a follow bar in-house an to And your provide program you’re and manufacturing? up, you if on

Kris Sennesael

playbook want Sure, actually, I that right the now. on I sure. technology don’t share to

what's will frequency to know us pretty is you give that bands XG. right soon. you both that And, on the allow very well. think LTE address I very, and designs all we and well, we’ll very work more now crafty the have progressing some And necessary

Operator

Peterson ahead. now And Morgan. to go from of line Bill Please JP

Bill Peterson

ask I than on question differently want mobile a others. to

So look down it mobile the or September business if slightly year-over-year at quarter, like in it’s the basically looks flat you from perspective.

content you. break flat demand Korean versus versus and are weakness brings the the the weakness slightly unit to in North demand maybe it China, to gains so large can players content you unit out forth relatively down? the amongst maybe American, the that gains If see where say you Thank

Kris Sennesael

robust we’re certainly, is that try not not we’re I we expected. so we seeing China seeing as we as okay, would unravel mean, the it have to can. but best Yes,

we number bit is right. out. there is here. this of dollar talked that’s in hasn't would we strong but enjoy. uptick is the that We that It billion the $XX about that other been could all if thought little Samsung a some real, they're large a a thought ZTE, which Okay, okay, to quarter in haven't We seen million that as million is be accounts $XX we better.

of that roll bit chase device. together. plays one mobile and that I advance And to And I ramp; product XXX% in not that commodity business, serves us customers it of all around. certain a the there out. in to that was And jumps cases of Some phase a you that we've as unit with phase are choice move really to technology. customers' doesn't There is continuing think all well. in the made larger that of think any to a a And issue in know kind is

customers. of combination the model of a product have all our year and back of a new So year case model, prior so that's maybe you always

way. things react pleased I'm acquisition make what to So ability is with such team's we content the that the and in happen. don't binary a But drive

Bill Peterson

Okay. that over broad to Thanks for markets. color. Switching

plus infrastructure your been been weaker that MIMO it's people now like speaking know if generally seem help lot you're business. are a can the about in reasons and a about portion $XX markets content the maybe you're kind in of you think we these talked opportunity. more other what of of do I I understand strength. MIMO structure business. But opportunities these us And opportunities opportunity. growth to size a about I'd talking

help If market. you the these in can size Thank infrastructure us you. opportunities

Kris Sennesael

this high arrays base and lot that tenant Yes, performance is a and in of stations.

are work. to XG these make that So new required functions

into there kind start see functionality base XG wave millimeter cell cell And kind of drive in neighborhood zone. slow a could kind cell to the up that small do technology. that of that bit XG now So also but out get will happen. in level and which small seeing to That's you We're long millimeter step pretty infrastructure, haven't look we infrastructure have roll technology, house catalyst a you wave is nice deployments on like that with to move XG. use really all and stations of cycles if small this will our of we into strike a that can upgrade incorporate

Operator

to closing for does Thank you. over the Mr. comments. And now question-and-answer Griffin turn ladies any I'll that conclude and session. back today's call gentlemen

Liam Griffin

Thank at forward. you to forward going time conferences afternoon. you Look this all. I appreciate your seeing

Operator

Thank gentlemen call. conference today's ladies you. does that And conclude and

disconnect. may You now

Skyworks Solutions (SWKS) 19 Jul 182018 Q3 Earnings call transcript