SWKS - Earnings call transcript Q4 2018 | Skyworks Solutions, Inc.

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Operator

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

Mitchell J. Haws

welcome fourth and XXXX and everyone call. conference afternoon to fiscal Skyworks' year-end Good the are our call President on me With today Executive and Officer. and Liam Officer; Kris Financial Sennesael, Chief Chief our Griffin,

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

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

Liam K. Griffin

Skyworks demonstrating business and welcome, QX team everyone. record Mitch, a within model, resilience Thanks, the environment. choppy end The and delivered market results, of XXXX fiscal our

representing revenue Xth share up of over dividends, a and mobile year. strong revenues Let the Skyworks gross points billion Notably, fourth billion highlights. revenue. top expanded grew cash sequentially And to $X.X most traction our team ecosystems. returned across perhaps of and up of than $X sequentially, growth record delivered generated with share XX basis. in earnings by and year through prior billion, importantly, And Things sequentially consecutive our quarter shareholders fiscal per produced $X.XX XX% up by our EPS, the on XX% our of $X.XX, in few win me guidance. XX% with We line of to $X year-over-year design and We financial exceeded begin as a returns, basis of with margin Internet a XX.X%. guidance $X.XX earnings we share to per perspective, better we fiscal X% we $X.XX, year or and XX% From buybacks a compared

quarter, applications. capitalize ramping across enterprise We automotive enterprise, Hyundai, with new upgrade gigahertz spanning are solutions Samsung's we scale world-class as we've key technology flagship uniquely secured M connectivity exceptional the established Toyota. and wave Skyworks solutions of last front-ends, and to We XG momentum large avionics SkyX Cat supported mobile gaming a u-blox's design we and In solutions. TV defense, platforms. level, BMW, positioned Powered at cable telematics all automotive, our higher with high-density captured the and Nintendo millimeter phones, across for X.X LTE of RF networking consoles. gateways machine-to-machine Cisco launched wireless our we and smart numerous sockets XG suppliers Geely, build approaching industrial, DOCSIS Specifically, over Microsoft is Galaxy performance home X.X past the segments, at enabled and content upon X we cycle And Sony, rapidly in demonstrate validated suite finally, modules. well within At major audio radio as Tesla wins and flagship on strong capturing short, foundation automation, decade.

a Our strategic of based conviction number is catalysts. on

level is highly-integrated driving uptick including MIMO a seeing deployments, initial of technologies Skyworks' we're in for portfolio, the at base network efficiency, small complete to require engines. around massive switches, significant advanced leveraging the and station as achieve LTE demand First, as our well cell world these and as solutions, speeds, forefront carriers greater vast system higher circulators our and experience capacity amplifiers, coverage. multi-gigabit

infrastructure deployments the of positioned OEMs. leading are to well rapid We support the world's

already us. And aggregation. dramatic set technology most broadband frequencies multi-channel use the across Skyworks categories, customers. solutions This increase architectural expansion turn carrier a the the broadest market architectures, keep of opportunity complexity, gains LTE, We've content proven in selected driven which poised discerning expanded up vast in and step leadership other hand resolve our mind, complex a in industry's in leading entirely critical refarmed a our preparing XG for us of offers demonstrated systems, portfolio new is the bands, product existing increasingly performance smartphone complementing of as is by on market-tested drives the and Second, connection, in by XG. for for demanded for addressable

three across ZigBee, capacity leadership particularly our including we with the expanded Thread high augment SkyOne cover power a we installed innovative management, network by and of portfolio positioned wireless Bluetooth, transmit times uniquely XG That's XG by the leveraging receive this and disproportionate to driven solutions equally and with capture expect billion Leveraging beyond are XG, tuning well we modules advent share on ultra-high-bands, vehicles, spectrum optimize devices we and including and Our technologies. all the multiplexing ax, connected time, low virtual to to commerce. functionality, base. autonomous new as product cellular, and Z-Wave, the and industrial DRx accelerate. category same Wi-Fi, MIMO, the XXXX. precision wave XX growth Further, GPS will millimeter as of And from LTE IoT, XXX.XXac reality, IoT to solutions. and well new frictionless performance. see XxX With At compelling standards and broader today's be LoRa, continues horizon, antenna major TAM this growth,

convergence AI applications. as enable of performance our Kris provides strategic becoming last solutions, on critical and a With to call radios I voice with Finally, proliferation connectivity engines. of across a our acquisition that, differentiated synergistic acquisition over and a its for capitalize will of means IoT will QX. turn array of rapid The discussion Avnera the communication outlook the and Avnera set a we and of see of advanced for our complementary diverse cognitive of to us quarter's

Kris Sennesael

was $X.XXX $XXX and billion, basis We an XX% up the $XXX XXX improvements up of operating XX.X%, XX.X%, margin or exceeding XX resulting XXXX sequentially, expenses of points sequential margin generated Thanks, of up operating XX of million, into gross following Operating guidance million our in was a profit Liam. revenue estimates. of the XX.X% for quarter basis points Gross fourth were Skyworks' sequentially, from fiscal $XXX quarter. translating income, basis million fiscal of revenue. points in QX. consensus June

exceeding diluted rate net Our or of of income X%, effective tax guidance $X.XX. was up $X.XX XX% per driving by sequentially our $XXX share, million earnings and

$XX flow, stock of for cash the repurchased fiscal balance million. total capital operations $XXX our and $XXX from were X.X paid quarter million to in dividends a million common expenditures Turning sheet was and We of flow cash million shares million. $XXX and fourth

fourth Operating fiscal is also income a year-over-year. record per the XX% share, net this was diluted billion $X.X and revenue, XXXX, of translating As X% up year-over-year. delivered results. earnings review We quarter up billion, into of $X.X income billion of was let's our $X.XX annual $X.X

investments no fiscal shares our we under $XXX XXXX, fiscal $X we to $XXX of XXXX of million and billion growth, the solid in over well our addition of to repurchased from cash shareholders In dividend debt. just X and million and top share cash buybacks, free we have operations We We year of returned year. ended and fiscal generated million cash the with line in with throughout bottom XXX% as billion over $X.X billion. flow, $X.XXX payments

for of move QX to XXXX. fiscal our on outlook let's Now,

with and diverse of the of Continued mobile declines markets smartphones in strength launch broad in is a solutions new softness. China performance offsetting coupled set unit high premium overall

$X.XXX billion revenue As and be we in XXXX, billion. first anticipate the a between to result, fiscal $X of quarter

$XXX expect million. We or anticipate XX.X%, XX gross and rate margin roughly the of Below line, we a points, tax of in $X income basis million expenses plus XX%. approximately other minus of operating and

turn million Accordingly, ranges, diluted at we diluted to the to approximately Liam. further of to call over the $X.XX. back XXX earnings With share per We shares. intend these midpoint expect to I our that, share deliver reduce count of will

Liam K. Griffin

operational double-digit our Skyworks fiscal fiscal and across Kris. business, results our XXXX. open creating shareholder remarks. year lines revenue sustained a prepared by expanding clear growth our concludes delivered XXth Thanks, a unwavering is have in near-term the consecutive pipeline weakness, commitment Despite growth range our of and questions. and market powerful finally, earnings customers markets a and please and applications, for win driven That value. to execution the encompassing broad record wide outlook Operator, to world-class This deliver design of XXXX. we path in scale,

Operator

our the go And from Please line B. question first comes of Ellis Riley. Craig ahead. from

Craig Ellis

Thanks for taking the the question, close. deal guys, congratulations on and Avnera

prepared think side. Is the the So, you're question the seasonality? would seeing it issue you're seeing impact to the high-end integrated relative is that X% versus some softness of you're what the plus guide I out of seeing flat mobile unit possible China things on following remarks of to a up the headline that vis-à-vis smartphones the break regarding just on some be X% versus first that with

Liam K. Griffin

months Yeah. we demonstration hard within engines over smartphones months nine content lot is If look six a This moving very make that have to complex QX premier gain had the to Sure, been up some great Craig. at what into mean, is done and QX, work happen. a I last of moving here to we Liam. and that and that of we've

rolling into that So, and discounted demonstrated on strong QX set rolling and devices and of were performance were basis. QX platforms unit those ready same in a

in bit and smartphones, unit content of great QX. a here X miss came for of lot kind of a late again, So premier entering us Tier that a but

On the us. China an important be China market front, for continues to

Huawei, very strong media tech well. alignment We with have platforms with position, Oppo, as relationships the diverse great a Vivo,

QX in quarter. premier of our Tier in to have the relatively into to share market the there. line business that China But contain tends little So, the and bit seasonality December Xs with as is the expectation of going tend a most occupy

Craig Ellis

can markets you way That's your group fraction your longer helpful. and in Kris. for have is part from can fiscal contribution to gain one And guide? can then you and baked provide for around Kris, fourth specify one what guys. then going Thanks, what within you the integrated fiscal term, two-part scale mobile? extent how quarter maybe broad this the you, some should channels Liam, first part we within quarter it leverage to business think is question, that both and And the into what Avnera about the parameters you follow-up,

Kris Sennesael

is Sure, Craig. This Kris here.

our was we books of quarter. the the on weeks closed Avnera $X in margin. September August basically average above Revenue gross six so we million, approximately Avnera acquisition at had XX, So, on

$XX the for the are quarter, Avnera. included very there. with pleased acquisition we guidance to for So, we $XX the In revenue million million of December

Liam K. Griffin

already piece. Right. well that And the we've with technologies markets Avnera The lines the to of alongside deployed that, portfolio kind broad Craig, follow-up just today. up on very

not think only there. that technology will Avnera ago, how very really customers, and historically years you So, several set made that with and smartphones levered deployed we early SiGe strategy channel, specific through in the through innings we brought that that same IoT technology, about if of look good acquisition but our of broad a unique be

Craig Ellis

guys. Thanks,

Operator

Barclays. question go our Blayne And ahead. Please comes next Curtis from from

Blayne Curtis

Hey, guys. my Thanks taking for question.

curious, a its reset translates into into given this just March? stronger, want Just don't to you that to in I you environment, probably that's any kind March, perspective venture but have how too curious far of do know and quarter typically as

Liam K. Griffin

look to Blayne. in of tough the expect normal right the into capture would that March QX Yeah, – I into little Sure, here we the imputed we describing feel going That's and our I seasonality are into quarter. that we here, that most way it. the a March dynamics expect but mean, pain is we're at it guidance now go

would business You any seasonality occurs. we there's there's have kind able to concern We been nothing mobile have problems there. that that weakness going see typically markets of of that has March, kind in give when broad do mobile offset in to that but some still be us today a that

we it. feel So, about good

We broader to in business markets. more more Avnera going are and is gains seeing The the help.

position in to the in we in past a the than been storm So, quarter. March had better we're weather

Blayne Curtis

through a a look margins clicking there? margins. you little should you quarter, unit the the a us just moving bit. that hurt know absorption. I pieces can maybe over moving up on question pieces of margins, are walk obviously just walk headwind, mean, about there? if longer a down Kris of through bps for that Can horizon, maybe a I talked some seeing you kind Avnera XX just XX deal gross gross The Then us year-over-year, margin your you've so you're is accretive bps,

Liam K. Griffin

Yeah. Absolutely.

our our September addition all, gross points, XX So, first of basis the to improved quarter. points in further basis XX with we second we that fiscal quarter added margins in in

pleased I'm So, that. with

helps always volume continue margin will drive We gross growth to improvements. with further that. Obviously,

kind is point so of to for gross as so gross on margin from the XXXX, back of of flattish guidance half of the flattish but quarter target into our view, margin And point and the improvements of make will we view from we continue December look a fiscal a further XX%. revenue also towards

Operator

line question Raymond next from James. of ahead. go comes Please Our Chris the from Caso

Chris Caso

allow Yes. word be guess we here I I'm and is you would first with technologies I ready you Last with that content regard XG being XG, I new to feel disclosed new say some frequency the crafty. you're of would more your regard what's so Thank Is as you're whole I that now, them go your technologies some address and not is allow stand where perhaps new talk content to there's bands. question than bands safe picture you. we with new used needed far? have XG the strengthen position, that of Good evening. guess not the to quarter, things like sure it been the think going but some – some to to to to Liam, frequency about with into

Liam K. Griffin

Absolutely. Chris. Good question. Sure,

sampling. to technical performance. are So, work feedback. that's fact We're extremely XG. well and positioned working with big how let getting in we're that begin getting what me There's lead on We're with doing a to customers system. just We're step-up in the validation in their going we today. We're

technologies. be technology solutions a to differentiated a And a some need customer asked above have And to our upgrading you being deliver expertise some and asked backward XG gig XG start that in above that altered to enhancing we it's opportunity sure. in and to and then the X move is even when that would some XG. technology compelling for great and be world. include frequencies that's that So, when into gig, way there's will those now. new and and devices Millimeter we wave really work in you deliver Even on will an proper, now and to in we're think sample compatibility X

to really are we're part we've and made in-house. And we're all ready our very band, that to of see been work Kris' going more ready but step doing. process some that, said CapEx that technology. start that comes but through the in across we going We're Not our the be XG the more our work didn't we talked actually, about whole the a on capability fully done and but work develop number high-band. BAW. You're for here we lot low-band And up have having only will and gets full we're filtering we're we've today, and we normal of to developing BAW We've a enhanced on sampling we've interested targeted the and technology of that technologies, filter disclose of done and to in with of have mid little bit spectrum. it, iterating in when investments. number working customers It's

Chris Caso

just and of I to earlier you And some unit your pretty some X right. Thank unit is your if that, headwinds interpretation Tier you. All that the return to my to. regard headwinds was could comments That's referring of what with were comments you facing were of now is helpful.

it that the to went math to have with as As you're December have And abnormal help also into little do year-on-year something could last Did looking bit do if timing regard there. do well? you we're different. some The was quarter, seasonality to with that year, a as does us shipments. was you looking to to there the that at something growth

Liam K. Griffin

put customers' did timing Chris, our grow mean, of that forth know, tricky. most and is the we job advance to content and as you and content the performance compelling our I Yeah, is that. all

to dynamics it's are how out. see So, the playing tricky

the Tier and provided I everybody's think players understanding have been some of that. helpful, the that signals that have digesting X

players to kind cycle business. expect a tell, As it still markets can negative I the robust of we some We quarter. that cases, In don't is be have I March don't offset. have broad anything mentioned mean, early ordinary. the out solid of as the get into on in the question, the APAC last some of but we March,

prepared The reflecting in are the XXXX. back other thing on I still would say remarks, growth just is modeling we

to the and So, top-line committed growth we're absolutely delivering fiscal through EPS XXXX quarter.

here QX about, we're only comfortable but talking it's that that. we're So, with

Operator

And our next go from BMO. comes question Ambrish ahead. Please Srivastava from

Ambrish Srivastava

had quarter? you the Hi. Thank bit for know just got how a well. page, seasonality all little you March would on for very And Kris. of characterize so business the much. Liam, broad-based I more then now has same that the a the segment we're I as normal follow-up it's

Liam K. Griffin

market expect to to of I I'd QX. But we to offset the committed the XX% mean, we just see. non-mobile in XX%-ish fine at We but make XX% mobile that be tends is I call. concluding sure, March, in that quarter's early we're It fully certainly the aspire Yeah, typical always potential we March, do QX to be guided. I'm or I seasonality, as better. say, in to said, areas midpoint. mean, that's do net-net, guiding that do that We're volatility. range we'll it so, year. to growth the and things not But, some

Ambrish Srivastava

then the please? what also then is OpEx Thank and the Kris, modeling acquisition, on CapEx implications the front, you. Okay. from And the

Kris Sennesael

revenue. Yeah, so million from was over to we $XXX CapEx spent which slightly over in point XXXX, just of in CapEx, view a fiscal XX%

the as factories as as capacity continue the And advance well to make necessary in our indicated we investments technology-related continue as filter operation to those CapEx expand well. and back-end We operation. well, in in the technology our Liam

the about to or a on was in same stay to CapEx expect do it as I XXXX. revenue level forward, percent fiscal going as So,

in the mainly you quarter. bit OpEx, will quarter here a of that's the a driven of a December the by guidance of that us can and December see Avnera OpEx terms full step-up hit in little In

Operator

of our Please question next Vivek ahead. line go the And comes Arya. from

Vivek Arya

my taking for question. Thanks

Kris, give a mobile and broad clarification. for quarter? markets September for you mix the December you're just could of expecting and First, what us the

Kris Sennesael

Sure.

total the XX% broad of double-digits. full-year September on a was It So, well as on in was broad growing market growing basis, revenue. quarter, basis, approximately market was year-over-year double-digit a

with pleased we're So, there. very the performance

growth. market an very rate of into our billion We continue QX broad looking to we double-digit fiscal ahead now in see annualized have of $X.X year-over-year run and XXXX, strong

have the of the on we quarter XXXX. revenue side, of So fourth was fiscal in course, of total flip XX% which mobile our business

Vivek Arya

Liam, we And on right. maybe the then more one forward, visibility as look

market some are could seasonally offsetting and growth get You doing here primarily bottom in mentioned perhaps and to that back March. your on you the Just more seasonal December December confidence? us is curious the is and trends they bottom could give that in things back you normal remaining confidence orders, to March. get some better whatever customers? real-time right, is at what that U.S. are back larger that returning perhaps broad your give us and China could have of to stabilized? is If it sense for giving you Or I'm predicated general, declines

Liam K. Griffin

Right, a no, that's great question.

which that somewhere We articulated, contemplated do to to the magnitude As it is the view our XX% we would I broad have where say quarter. said, we today, What normal. positive thought March quarter to from the could range we've guidance. and it's and expect around the March we the complete I I those what really some a stand we look see catalysts that in comprehended in reductions markets. in full, the be we give just We sequential, were hard of is at of XX%

period. with in line. earnings, in happens little bottom and should So, then full But in warms market to better we units. case, the environment are smartphone fiscal outperform to a growth year, bit. full we'll China line hopefully we we Tier year a and be again, X any up positioned committing what think a that see But top And of

Operator

Hettenbach comes Stanley. Morgan Please And from line with Thank Craig you. the go question of ahead. next our

Craig M. Hettenbach

that Yes. play Liam, year fiscal follow-up Thank the just at point, could on looking to you. out. how just potentially

full X% X% a unique fiscal a first back roughly in line as from March and of get happening grow year, an there just of and unique or or inventory right to sight be looks after to be the You down to little challenged? half year-over-year the is would kind December next to in So, anything half perspective of the from content year? growth now have

Liam K. Griffin

Yeah.

some seeing marketing should in there programs than and but the into year doing, and think of with already recovery of we're of cases, Avnera embrace second expect I going mobile, we're broad Skyworks scale. and just and is a the the brand that some ramping then offer customers lot what half wins design opportunity the the we of new sales our market we're platforms many Quite we more have and a work frankly, lots we channel team. that

reach so We do have that's in going operationally integration levels organic business. the a of tremendous to addition have some of all core they line, high a discrete in, to where product roll to

into of as XXXX. So, are some look those full we and second the of give things sense out the a the through that us half bullishness

Craig M. Hettenbach

distribution ramp Got a on of but on see, just and Avnera, into that kind really been the you just Skyworks how a story. kind while, then kind Avnera SiGe terms the it. mentioned follow-up of else your you success that the playbook to in around has tie of you or more strongly of ability because for the Anything ownership. and business can And

Liam K. Griffin

Yeah. Absolutely.

have bring accounts and So, leverage around a trust that we built opportunity and that to great of the customer certainly element years one. engagement work with couple now our a Avnera that customer things. and years There of channel. done is through That's the an we've to we've

for system to and that consume. it an easier, right, we've taken fundamental versus think i.e., very would easier wrapped kind bundle, customers leveraging test that their of SkyOne, and integrated to solution, technology package it have be it much to an difficult up ability them We product made create also our of engine, as do point own, much the a on new a ability how amazing for into some solutions to and

So, work in cognitive some really they're doing radio. special

portion, microphones and voice just the a the not also connection. listen these it's it's the or highly So, audio create to but discern that sensitive signal

we do that impact all years up. time things in the the in well. take positively and It'll we together certainly outer a think it should we can really before an do significant incredible some and will revenue XXXX partnership form build So, some be opportunity. see But

Operator

Thank you.

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

Edward Snyder

by you. Liam, Have bands? you what band today mean Thank If you in what ready BAW? duplexers BAW? do filter sampled Rx you're samples. so, in We've heard of single

Beyond that, we've not seen anything.

So, than seem any much changed? heard quarter stronger make in I'm BAW about a just you to curious, of statement What's in periods I've the this your past.

Liam K. Griffin

made What's in that We've lot work, we've done hard of changed? a technology. Ed. is What's the changed investments

Our end and We're level But been it, are it weren't We're ready going suite process in haven't stay there. we our around as be you more have to not a to for all differently. for going leverage that systems developments. a company. because details I products. get technology with about filter been time and want And the We're going credible talking discrete And long sampling. around But we're are to iteration be engineering company. to working just this do SkyX we the We're into a tuned accounts. we sampling feedback. getting we know, now. the I teams and ready. don't There's key

Edward Snyder

especially and higher of Is now this? regard of the expect and new in XG? SkyX that products some the Is products, most the that bands frequency out, – attacking focused to going then future putting to we there's going of to this with be be can in what you're samples see first to

Liam K. Griffin

yes. Yeah,

the there move us for our our solutions proven clearly to stuff then long compelling And architectures, an have that's but something diversity leverage customers. is and legacy wouldn't from spot. is ambition really we that really SkyOne the sweet to opportunity XG I the agenda that's to a full technology high-band been back – may the really with that providing our in So, long, to a go in think in customers bringing we into suite for of be don't It's augmenting XG mean, forward and our on see, we LTE time. here this some role I and

talked right. said lot haven't ready about it, the a reason more in and you're is than much we've a good This we're there's We now. And for but past it.

Edward Snyder

in clear lot I Okay. And some phones, manufacturers, more then it DRx know that running this this next standpoint And into especially this. huge sense. year's it from a head-long That amount Skyworks? makes premium Tier problem. already seems that if And looks could, X functionality antenna I the put be of You've like does redesigned they'll Where of pulling kind a got BAW-based thing. whole they insertion into that locked this in year-over-year significant content that be new expect don't tear-down you too. lowering you of do increase section is you've to bands content got, are I at something you loss? out, with Or you're the about? talking show But giving that those you a that technology in it premier supplier. put looking bit does disadvantage at a for little could that

Liam K. Griffin

in very obviously And place family in solid there's to for and performance iterations make while from that been in we're Yeah. whole No, low that's high. improvements to we mid a annually. and the DRx

that multiplexing, think I antenna the for that's new a On also we opportunity us will pursue.

we out still on opportunities how and as But for other on are perfect we'll drawing forward. are will there DSM and some And that I'm soon. today. that market some to very pleased I'm we the and we and hard really board need the of today we of that protect really and patience, high-band happy the the is filtering think team's address. technology I the So, and low-band curate our that the technology certainly cycle, forth to to. alter our if go core we'll happen putting to able their It's be in with work, have we're one not that going to in performance, their diligence, demonstrate the all devices with but know

Operator

Thank next UBS. comes line go of Timothy from Arcuri with question ahead. you. the And Please our

Timothy Arcuri

despite you the all low overall kind year-over-year. couple like I despite If revenue broad grown sort and content of year-over-year, look the the have teens Thanks. growth growth, Hi. past growing markets of quarters guys barely at

if looks XX% So, down going assume XX% down be, and to into like a I to look I it again normal March seasonal, March. sort in you're of year-over-year

So, really can Is that high-end why not really you. Is case? the growing smartphone? why is the Thank that company's highlight you just the last four again quarters? it

Liam K. Griffin

mean, where more the premier significant. a a really a going Yeah, content big The of grew mean, change been contemplated. I listen, we that's that's XXXX. the fiscal softness, bullish we've there's We're what of unit fundamental players, issue. is broad I higher-end us. would I not the mean, grow from very XXXX. some some guidance And We that. China surprise talked here set with just fiscal about we for to I something that's has change have have accounts. but been fundamental mean, the

a market. to We have broad of we're bringing set technologies that

new We into out coming have XG. solutions

We broad IoT to that double-digits. a markets have that grow grow an and to at double-digits landscape continues continues at

total, quarter-by-quarter, line are for So, in we're the guiding will providing bottom with the be top-line but year growth growth. we which comfortable an outlook not whole and

Operator

Pajjuri our of line you. with And next Thank ahead. the go Srini question Macquarie. comes Please from

more content I the taking Pajjuri unit expected Srini my understand want understand open. the weaker guess, have Thanks weakness, a bit little given just the of is your (USA), to quarter. upside question. Liam, Hi. - Inc. being expansion, to I bit would but the a for I line I – Macquarie Your Capital outlook little because

the line takes in mean, You curious, did other I'm but came – you any is have you that started the seeing decent, in were impacted weakness I there the quarter and quarter? puts Or itself? pretty which

Liam K. Griffin

the of softness in little In really. period, A China. QX not bit

quarter for us. The we're a fairly impact by We We is what seeing it we're now exceeded grew through. EPS I was strong $X.XX, QX guidance. XX%. think and talking

that's the the in I guidance think So, that amount into taken think something imputed we've that. the on guidance. we've We of right pain

There's Our leading position no in loss our platforms. share content is solid.

parts business really Tier able sockets Srini weren't the And we We'll this And a the follow-up or Inc. didn't So, there's able compelling - it's of to the fumbled well. that Liam. of other where recover will Pajjuri pursued. there. be Capital then are Macquarie business larger on of just There's to most not it. and recover Great. well. the that an I case impact from execute think (USA), as the that we part platforms, across a doing bit Xs, to But win

there little As looks little next but the the year, guessing it's about XG, XG? talk the and more It look out is progress you making intensity definitely fiscal dynamics any a environment not like competitive in you a in of Qualcomm and units more is in over of we and market the I'm to next you. growing terms Thank out any are nature? four can terms some bit the seeing quarters, pricing competitive early,

Liam K. Griffin

And and on a theme landscape, competitive solve especially been the has more and getting work I'm what And players, this driven you the the very end, to is all or all going rely do broad to while, the the is have It's their agility and work high honestly, that the been hard at within high seeing that's where and and complexity the is to four. transmit more problems. the money have customers them. tuning, high platforms, and that being that. set a have with of having multiple technologies last of Yeah, The the two you in Wi-Fi, have OEMs, techniques hard scale mobile three having is to the and a the talked for about performance right, by maybe and by end delivering we've is filtering few very, questions, can receive upon by they work suppliers do that made the where being made for the the money way.

environment So a for given high-performance that these our It's expertise, and Skyworks. outperform that chance very technical fact, in been leverage our good manufacturing we've us don't has made of to the in filters. – we some and really scale investments

do think And So, going that and competitive challenge challenge is and we'll field be to among to very complexity I that. and will and going can very, do well. narrow deliver that the can meet is the high be that few the those

Operator

of JPMorgan. Bill the next Peterson comes from our And question line with

Bill Peterson

and thanks in half. is full-year taking we What going you're next to about XG? when year, stronger by? about it this growth Hi, the I the driven question. for second talking guess, be implied Is Yeah. Is that it's think the to in content be China? flagships? drive Increased to you of If type plexing? Is can next diverse that'd in understand help this more tuning receive? helpful. year, it some More What it content the products? what's us of going growth

Liam K. Griffin

I parts Yeah. In portfolio. all drive the of new there's we're across across there's developments the mobile move mean, certainly multiple to of continuing parts a business. the content side,

that and and phones developing some like to talked will create the but about the we portfolio, in take and Samsung right There's with market important for remarks. mid-tier everyone high we technology end, going a That's and China are about in that I we see, players are experience XG. an mid a our to talked in solutions the to the new and be mid-tier opportunity that their pursue we also meaningful XG an puts opportunity, and in that makes having experience to a flexibility select opportunity markets other catalyst. certainly technologies advance little one. able we have, performance for to customers work make have, have and and us different it long in different and – the do move technologies go differently. do know-how assets multiple hard and I'll each more you to it and XG, – current manufacturing the budgets, the with from the very They technology again it the bands. position. demand and people crafty customers with for budgets, a we and high that ability They very, of breadth The differently. the things into the every baseband that broad to have very suppliers. you even And know level it prepared So, starting the more our they're good of There We to providers to customers, in equally word given be tier. up space it to challenging now, our going are And XG meaningful do product. in Customers use ability take in

we're of more to of more year positive for start engines. up. we'll the incrementally getting going space The our in half as year, see to second opportunity, first well. be continues this to us That's that. Avnera complex and So, IoT The move that calendar

as we very get So, through of periods. there's number a QX and catalysts the positive QX on going here

Bill Peterson

Okay.

likely follow-up, launch And wave about do I that my XG, wave smartphone. more then your be is, as for later, on start at agree wave. millimeter would millimeter maybe millimeter as As in you first can year. sticking but talked if infrastructure earlier you guess market the guess sub-X millimeter perhaps you their your next that both to products as I be A question would a think the I as call with expectations own and on competitor yesterday that? discussed well would from in expand on maybe well perspective required expand

Liam K. Griffin

seeing we'll up are a that. we kind on a to and stepped Yeah, of wave pace on Sure. be positioned millimeter deliver

that's So, a industry. that the for catalyst be very something could positive

where of handheld back company devices. in We are around into millimeter IP technologies in our infrastructure that absolutely we on area, hadn't side. the quite can that used, lot frankly, wave the IP deploy been days other some also and goes of in side we positioned typically infrastructure on to that the a a that lot execute certainly and handheld have There's

able exceptional. if be to So, would I we're deliver that, think

want the semiconductor technology. market not commercial to ready just It's working We'll the be use. pace us. this It's of the are see about in which really and a for the a matter deploy in it. on want We side. It's new technology when system to our customers does on

Operator

Our next and go Cowen Please from line Ackerman of comes the Company. question ahead. Karl with

Karl Ackerman

is are Are the around Thank today? applications cash It such build do how areas as would Good palatable infrastructure, primary your the networking you point for need afternoon, acquisition Kris a focal Or of you. you XG? you think a additional other precursor And separately, bolt-on Liam. more appear run to as Avnera economic and M&A. voice going much forward? business

Liam K. Griffin

areas Sure, think we've Karl, like I'll it have haven't about out of and we things start and that the discerning we is already like over these that one view then is Kris. and transactions. so some we've Yeah, we pretty dovetails worked the done one that those obviously well. done We – into the in created very many real I value. had our technology of things, to deals a that this on I'll pass it But well that

Avnera, a core much comparing do IP then our There's in that's some team IoT have areas, technology big even common customer in level we great both real of set an mobile. broad an process with occur, kind their more the of MCM in but at that up and the and with in to just wrapping opportunity about somewhat at opportunity integration our bigger. IoT we there's scale across to imagine and And So, have a every customers for organization a much, Skyworks technology just chip packaging and smaller. something customer in just then globe, you that mobile at and but could leveraging

We good. form and of to matter you bringing and is works. to how don't today plays. market that a to technology. really of great. It's the it more upside It's maybe So, technology create And changing factors could just see It some configurability. the leverage have their fix more

Kris Sennesael

ended sheet. definitely of to year in the quarter the we the And fiscal business, billion comfortable. over a little and actually to the last just just of run cash run very level business. bit need That's with investments question so the $X cash of well, less on balance cash that's the We a on

do we So, cash. still excess have

Given ton strong operations also from have that fact very we and a very flow. cash free cash, flow the of cash generate a we strong

shareholders. our margin cash XX% free returns of to we cash and continue target the flow with will to also continue We

in we our returned as during buyback indicated fiscal the the the our we XXXX $X fiscal so program share than remarks, XXXX through cash As to billion will more do of program. shareholders well to and as in prepared continue we dividend

Karl Ackerman

you, Thank gentlemen. Great.

Liam K. Griffin

Thanks.

Operator

Thank ahead. go you. with Piper Jaffray. And our Kumar final Please question Harsh comes from

Harsh V. Kumar

on Yeah. Thanks getting I follow-up Hey, for BAW. in. by me had the done Congratulations, squeezing guys. on a BAW way, in-house.

around ready that year. of commercially are would We be handsets, do you BAW timeframe? some products out will at the least think the in hearing next that calendar XG your second be models, Liam, half

Liam K. Griffin

Yeah. work sampling We're right our the It's our of and in possible. design middle now.

next XX indicated. I I date but certainly want as on So, months to don't hang to a XX that, months, the in

and to It to work kind There's of of it's could spectrum. leverage done a So, possible. that be lot sooner. validate be

and segment. but wait player in see, going be we'll to So, we're definitely that a

Harsh V. Kumar

usually wanted that is then follow-up, for Is say to down trend? down by usually to assume tell China another I China timeframe ask or I normal on back And my be correctly that hear you I might the be. up question is that Did you December. it. March you that would China. Got March? in us maybe in China for March what ticking And it seasonal could in

Kris Sennesael

trend quarter, with then into No, the December the into sequential a is in a the pretty decline typically December sequential a strong coming business back increase. decline we the sequential March, seasonal but quarter; see

Harsh V. Kumar

you guys. Thank

Liam K. Griffin

Okay. look Well, to call. We during you thank conferences forward on today's at for upcoming you participating the seeing all quarter.

Operator

conference Ladies you and conclude gentlemen, We call. that your thank does today's participation. for

You may now disconnect.

Skyworks Solutions (SWKS) 8 Nov 182018 Q4 Earnings call transcript