Skyworks Solutions (SWKS) 5 Feb 192019 Q1 Earnings call transcript

Company Profile

Participants

Mitch Haws	IR
Liam Griffin	President and CEO
Kris Sennesael	CFO
Craig Ellis	B. Riley
Toshiya Hari	Goldman Sachs
Blayne Curtis	Barclays
Craig Hettenbach	Morgan Stanley
Timothy Arcuri	UBS
Shawn Harrison	Longbow Research
Bill Peterson	JP Morgan
Srini Pajjuri	Macquarie
Vijay Rakesh	Mizuho
Rajvindra Gill	Needham and Company

Call transcript

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Operator

Good afternoon and welcome to Skyworks Solutions First Quarter and Fiscal Year 2019 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.

Mitch Haws

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

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

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

Liam Griffin

and delivered across Thanks, our and Mitch, macro continued model. mobile broad the content innovator strategy, strength markets business financial execution expanding and driven solid business, our of games, footprint product to weakness by global our our results of welcome everyone. Despite Skyworks

generated of $X.XX XX.X%. we've quarterly for of QX, in from a $XXX flow operating operations we gross We Skyworks. margin new million record million Specifically produce delivered XX% posted revenue, and an $XXX of margin and EPS in cash

flow, our we've In addition wind expanded cash categories. in strong clearly high robust achieving growth several to and profitability pipeline design emerging

payment Wi-Fi Our across MIMO with stations the solutions along latest standards mobile in newest base the enabling advances and are now platforms.

Ruckus a Access Communications are now few. Points Home Wi-Fi to X Gateways NetGear powering example, just products routers, our name Charter Indoor and For

next their controls. leading by high with mobile voice generation Alexa enabled And Square, latest fidelity supported we a powering We also range solutions audio Bose retail partnered for systems. long platform, payment market

for a And we've the addition, In street infrastructure light wireless platforms. end-to-end secured engine station number MIMO providers generation leading German a ramp wins for ramped continue markets, Phillips with of they management our leading to across Across base we set advanced the prepare our we've Korean massive space, supporting customers. across applications reach of success next And reported XG. and results automotive, end manufacturers. telematics highlight product as growing we to these solutions increase as and

in Internet We a the of have technology diverse including are GPS. extended of protocols, across and our connectivity and more leadership Things, capitalizing leveraging broadly Bluetooth set ZigBee Wi-Fi, cellular

as to a and from array outperform. categories Looking smart healthcare, ahead, cities of applications, artificial of ability launch XG intelligence. remain our Capitalizing the and in on machine, confident will markets we technology well of automotive, IoT, of strength product broad broad our solutions, markets, fuel strategic as machine to ranging industrial diversified the mobile the advances

to focused performance are to strategically for growth. technologies QX. on management I and squarely across team, over As for excellence call With while for firm of we foundation products, discussion and innovative outlook a will invest future continuing turn a operational the now establishing last our Kris quarter's that, a

Kris Sennesael

allowed of China. market driven mostly That partially quarter Momentum weak $XXX fiscal XXXX broad Revenue in customer by first Liam. Thanks, was demand and our business. was us declines the unit high-growth business mobile our for in million. across offset to

In fact, revenue to from fiscal broad the quarter. markets outperform in continued first

XX.X%. income, operating lower were generated revenue. Operating on year, or resulting last margin XX%, and an million $XXX compared translating Gross million of profit markets, slightly multiple revenue growth XX double applications. expenses have to a points first gross end $XXX demonstrating across basis continued digit revenue, of million $XXX XX% customers diversification We below the operating margin We quarter of in our sequentially down of guidance. of into was

of $X.XX this draw X.X%, million or quarter share. tax was First per rate income $XXX diluted effective earnings net of

to and flow. Turning balance the sheet cash

fiscal shares a of and the million of quarter and flow stock resulting free capital cash were repurchased and XXX our expenditures margin. record cash First for X $XXX in we flow million, dividends a $XXX million cash a X.X strong a in from was We quarter, operations paid ended no total and of million million, with of common balance debt. record high billion a $XX

business authorized our $X new free This cash plan our today, our flow, new of release in buyback model program. leverage produce in higher us issued repurchases to generate noted Board As to and press dividends ability returns. consistently stock shareholder share confidence a repurchase separate Skyworks billion Directors Skyworks' reflects strong allowing to and has

to sheet XG, balance the for as competitive position important in a intensifies. investments strategic provide solutions strong make and R&D Our our of capital complexity requirements us cash the funding advantages, allowing while

review anticipate million. let's in the our XXXX. second Now, $XXX quarter of outlook million revenue fiscal for of range the to $XXX We

will to range despite margin be the light over revenue. In over gross XX.X% is our rate roughly of market line, continue an we anticipate Below between midpoint $X effective the backdrop, XX%. of drive expect of year efficiencies to lower and manage we We which expenses year $XXX at another the to million down prudently million. flat the tax approximately and operational and year XX%, operating year income

a of Liam. to per turn approximately the me With count deliver to share XXX.X our of back million. approximately $X.XX. be expect plan midpoint let that, million $XXX assuming We revenue diluted We call earnings diluted share shares, to

Liam Griffin

Thanks, Kris.

of with indicate, results cash continuing strong deliver levels flow. profitability we all consistently As are high to

we have importantly, of to and as strategically opportunities mobile upon new a Skyworks we More markets. in both set outperform, complex positioned seize broad

power and and generations, strategic increases new will catalyst a higher level, solutions, Skyworks At role. requiring a in representing is where leadership XG well all efficiency. filtering partnerships play With transformational, XG of that successors leverages For on the with will broad creating advanced of model business are and and everyone finally, investments mobile be systems of positioned to experience financial performance, open value step performance, diversification product function connected lines everything scale. time. leading with customers, let's example, analog committed the integration shift an remarks. connecting and technology vision both across is differentiated prepared levels That smartphone shareholder while entirely unmatched all our our And performance, decades ambitious tremendous questions. IP Operator, market expand the for a IoT to to concludes we capitalize and of our one focused executing enabling spanning portfolio, ecosystem, a Skyworks

Operator

go question from Instructions] [Operator Ellis with Riley. ahead. you. first B. Please Thank is Our Craig

Craig Ellis

be broad trough understanding we the to the then, in the mobile in for integrated first quarter, are was businesses what quarter? fiscal year I would and in takes start as think come second the and integrated mobile a want the for clarify just the can year? look just second between you look Guys, what at that later And you the at different the quarter, the Kris, and the we Do second us, quarter. dynamics by markets or that can in Liam? gives split

Kris Sennesael

of Yes, Craig. I'll by giving there. the some details start you

So, in approximately XX% mobile total of broad the was course and of revenue was quarter market December XX%.

rate. year-over-year I market the we over annualized So, in revenue was market, run in remarks, basis as still on billion up on $X terms broad of mentioned broad a running double-digits at December an Also into prepared quarter. are

as lot automotive a solutions business, business in in continue well our start see well. some business, wireless our our to revenue infrastructure our we of as in strength of we and turning So, connectivity

Liam Griffin

consummating back some back about half going, about if year is second the Craig, is the and which with the half feel certainly wins, we you be Right, off think seasonally in XXXX. better also of effects where QX and which the where strategic will we half launching down pivoting of hit macro much design

Craig Ellis

And then, announcement. question new the the is share follow-up on buyback

to year I it the that program X So, billion. believe was ago up step the significantly

of year. within one think executed I that XX% was around

if question think as the things the new the uses cash other not executed Avnera action last that the should at year's it’d similar or dividend that beyond to further one, prosecute? something program? is this; So, then, with we should with be Company of M&A as pacing potential program try about could whether look be would we And

Kris Sennesael

flow. taken very flow, and account, we’re expect to flow a strong strong from CapEx, cash we cash Yes, so when cash approximately our very of was margin flow We very from to track in benefited we quarter, you basis, at continue XX%. on ongoing first and December the reduction operations; generate cash into there the cash we all, in free continue flow an strong well the even XX% margin. free DSOs, Obviously cash free for but on look free the our generate

new only about that we right that a put we billion put $X in There pervious now. of and that buyback in place. got left of so part XXXX, $XXX January cancelled, yes, And in we did good a million billion feel business. program program that $X under place program was So,

shareholders the cash to flow our buyback over at return actually those combination look to free two If cash back fiscal amount well ’XX, back the program. as shareholders, program a you programs free the to a our to dividend we’ll to as And we in cash use share our continue XXX% the of return of returned flow substantial shareholder. of

Operator

you. Thank

go question ahead. is Sachs. Goldman next from Hari Our with Please Toshiya

Toshiya Hari

one the XG? thoughts of to is as for I both trends your And us kind forward. relates how seeing XX/XX units the of mobile going XG within about side, And your markets? on there well as that well it's infrastructure the for side it both dynamic, you but a I your on broad ask the Can business business? on infrastructure mobile are believe wanted meaningful as side, remind as as potential driver to what then what as you’re content

Liam Griffin

provider set Americas in have Sure, been the we well, Europe across for global Asia. infrastructure in of and customers and years, a technology of consistent

changed. something that So, hasn’t

architectures integration in on new There to as see ramp is technology. starting there the some side. We’re There is MIMO XG station up well. in base

market. So technology. driver are committed parallel that, broad in that to XG And delivering we catalyst for absolutely is then and definitely a with a

craft lot gallium in for We’re tremendous It technology. our working our with the to A customers possible strategic customers now between best tremendous that that matter. brings and ourselves solutions of filtering arsenide and right with on collaborative XG. opportunities the dialogued opportunities

these to know as our year. SkyX products our in last sites launch ability and integrate platform you own Our basically we here

remarks, So, industry XXXX the strides. more in the our readily and to in the those products forefront. noted market we’re we at prepared making as for XXXX. in come great will and real opportunity probably this think be catalyst great will But We

Toshiya Hari

of As Chinese revenue given for guess you the should current weakness, do business? we What within think I customers your you trough as multiple follow-up, ask of prepare came there? to going just quarter? And December into the China the do a I mobile Or about quarter your quick inventory smartphones. think from situations wanted percentage for that forward, quarters

Kris Sennesael

was It sequential So quarter, revenue in substantially Chinese customers is in our on normal which from approximately revenue. the XX% the with somewhat of line seasonality. total down was December our basis,

However, sequential in we do expect minor the decline of quarter further a business. March that

Operator

to Please We'll Blayne Barclays. you. next go ahead. Thank with go Curtis

Blayne Curtis

question, just if to a well in up over known look, Maybe year-over-year. some you down down obviously the lot mobile, substantial following of last but equates it weakness there's

of just back as maybe So even curious fiscal look kind year. I'm whole and December you that at then

your, What you analyzed. have In of substantial forward terms can your and kind and declines of content, look reversing? the look your kind that perspective sharing as year-over-year versus drove of any you those market then back at there

Liam Griffin

got softened. The demand way specifically I is this at regional really China would is, this effect Blayne, China with you've Liam the here. look with Sure, a

But also impacted headwind certainly It And export brands of would markets the a it think as emerging revenue and of use market, set, that so they're go a and we China over customers Skyworks, lot in there. hard and like then it the a but a all would products China. populate about from is on technology track. had world geography companies to those bit

down. have and you more richer down. have unique value with coming their X have we with challenges advanced coming export coming and Tier China the you markets customers the that some a consumption units technology specific content So thenm also much down, had of And lot

some high affect that of was was of in some that into challenges China at of it that last a here read other of had and port level, individual a could but that combination through and the Some with even day, quarter. you then the China Skyworks of and customers markets, Samsung kind

So, that's been doing. what we've

customers can If We're love. we delivering we're time, XG. we've broad to performance technologies a I on for our about things you got a high continues markets executing feel grow where that better great look out lot in business double-digits. the then We're that content, reading positioned. parallel, And control. in We're that

but a we've you second tricky half, half. navigated feel better expect we was this through the period into if So, we results or here about to that better second get the show

Blayne Curtis

to go like the just kind question. do to I the market. if to the broad going mentioned it and Is you And of then momentum first markets? wanted freshly, and It in just you some expect to March back broad increase seems back December trough sequentially? And

Liam Griffin

should tends continue It be some to continue see we right, surprised some upside uncorrelated we there. that customers the an it's of wins run things well say to in on markets to value, forth. sequentially the is Yes, on it of and headroom by be we will of bring and design should here. mobile, the increases mobile is and vis-a-vis new is not vector, characterized the I TAM businesses, And where one broad nice there in fairly terms

or at they or doing to we things of a we're and that. is diverse a to the opportunity protocols that whether move set connected ZigBee, could that menu even breadth move down, those of offers as great providing and solutions. remember we to it's for or customers one a So, Bluetooth could grow our really the wireless Wi-Fi And market us cellular for of customers in sideways of as increasingly options look

Operator

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

Unidentified Analyst

calling for This Jim in question. is the Thanks Ambrish. for

your First, a us BAW when idea you an how margin I give there expect gross translate meaningful? towards if was guess a tailwind it into of you wondering guys does should be margins? bit target? XX% of expect could your revenue do more to become specifically, to And I you

Liam Griffin

very Wave leader compensated Sure. Well, market making Acoustic SAW. last noted progress have in our you earnings Bulk as in as call, been we good we know, and the in temperature been we portfolio, a have

Bulk invest to for to moving strategic that’s continue the and technology is real along Acoustic well. us. become in And a Wave We that weapon become category very and continues

design have wins. We

kind don’t in we we have make. that but half. revenue expected to second made quantify of much too the expect We to the I right, that want to progress

BAW customers, made us have in provide our diverse as to very We into expand as another of that more technology. solutions TAM can fortify in category. the create our investments set we It's we us and meaningful that XG well move most for of opportunity just capital to well, the as scale great for

Blayne Curtis

markets. my towards And turning follow-up is I guess broad

there why markets. broad guess slowdown at across I point your seeing bit of the are slowdown Where you are I to you not beyond a we I IoT? think I macro looking guess infrastructure whole But market slowing? seeing you, and specifically, the like, are guess

Liam Griffin

provided to has haven’t market upside that here opportunity broad mentioned, we’ll yet Again covered. so and there is much just so Yes, so. an do continue I we as

market our lot again business security, into product like devices getting portfolio. work A even our Amazon, doing like with that’s Wi-Fi lines, defense great us. have for the with broad product space infrastructure Nest. with some We’re our customers line, taken off ZigBee home, in the We of now in connected working

because it markets. and -- really not we’re TAM we’re sort creates So, not of a constrained great by opportunity

growing are TAM. the We

we’re our getting accounts. and and new expanding We’re customers into reach

for there’s a of level some a So, not growth of lot even at macro the our in are headwind market favor. if dynamics

Operator

from Our Hettenbach Stanley. Craig, is your open. next question with line is Craig Morgan

Unidentified Analyst

customers of when This your content of do would at Thanks you what [Enaya] increase you? in And discuss provide? in XG my you content to for like the increase products for question. see appeal is drive marquee know that I what calling wanted opportunities to boost kind you you? Craig. the at taking to look key are front for Like

Liam Griffin

still to the step moving that direction. as of and into seeing and new higher to technology technologies, The connected with win. that spectrum, the in it's we XG, for ecosystem devices what filtering. creates into solutions you devices, same at more example, in tier to new category the tremendous inflection the big been will at complex brought for And to brings that our same different frequencies, happens, But have embrace a mobile XG lives in high DRX end the look when new opportunity amount new up necessary been we really table, and the even going the seeing right more been happen. coexist if absolutely is Sure, opportunity physical Much factor, form breathes that be BAW of solutions, handset, bringing that. the an all And have challenge in today, space smartphones, there in that and well, and band ability is unique incredible look opportunities our our increasing now devices Skyworks and and complexity players that a top seeing, players an have on that. we is if you that

So, but to diagrams, And our and we're when that. all the seeing block looking opportunity customers the XG infrastructure forward side, with a point expectations parallel are in absolutely arise. to opportunity we as tremendous those again dialogue the at the

Unidentified Analyst

us And upon just can acquisition? on progress any should that want Avnera, you like and the we your opportunities just Where as measure from an key provide how going? the to see touch you you is milestones that looking integration be do update a forward follow-up,

Kris Sennesael

line integrated into quarter with that So markets. our now their fully growth have and fully business December our expectations, in, of came we in by

very And into there we progress of our the really so, And and we're see Avnera that there. team, IP a business. pleased strong we good some lot came a great as with It management with integrate technology.

Liam Griffin

critical being clear with layered strategic and operates now now devices important and through more it's about one rationale becoming it's devices it's IP most whether that Right with in. a of very increasingly Voice think in whether connected interfaces the technology it's Avnera, the if phase is you is automotive. going voice

they'll their levering the all that curves also to capitalize, as weave a a with perspective allowing new put for revenue greater manufacturing we together sets great in from out. to look and So a then by position unique sets scale Skyworks of us that develop and virtue us technology solutions, new and Avnera, of opportunities and greater of customer reach to

Operator

you. Thank

Arcuri is with Timothy Our from UBS. next ahead. question go Please

Timothy Arcuri

I about bit as about year? of it's shape little a year is usually end guess the -- June flat usually fiscal you is. my the go think of think the up question usually first maybe through September's How I up and to XX%. the

with things what to typical versus abnormal weird any there the this this make you point is sort are year would of of year sort So that that seasonally? comps

Liam Griffin

a yes, it's Sure, great question.

out, As the modeled what year of we is the maybe and year, the that's half into of March our And if flattest seasonally well, level have down then bit. you quarter we look what would higher June just calendar, that's typically across And then the kind you you QX see pronounced quarter, obviously grow. to more look second get little at space. QX calendar expect as and a We fiscal. this we calendar

we So just doesn't platforms and and the it matter. march numbers. up what has us, know also work win in design markets, that that, the the infrastructure doing not but for is very do mobile And an been very, and for in broad that also we necessary platforms, are to favorable win execution show

broad opening and players technology more about of it's about and for of So market the really not unique that. adding just then mobile, new The with dial and the our we solutions more We're some feel the across moving and two is customers. going good accounts. up is one or applications and us breadth really

about on flat we half slightly kind very that top have you performance do the cases with -- in but feel what bottom knowing good business We a been we guiding then deliver line signature should what of we second the the yet. our and and and about a know shipped we move and of you again, full up expect into we content a not expect the stronger line follow. financial QX the year So we're lot have where

Timothy Arcuri

of the little what sense your what revenue. a largest you there March? the -- that Can guess give in of in December terms portion gave maybe half fiscal was and of last last it'll think customer terms first I granularity of of a then you And you us bit the be year, in your in

Kris Sennesael

the for of quarter revenue you Keep as year When in with was full it large percent December at to the expect our our a year. largest pretty December line very December it customer it was last year total with look is in again total ago. XXs the So quarter in XX% revenue, much what in was large of over a basis, strong our in quarter mind much line quarter, customer customer. that a on in be we mid pretty what the a that

Operator

is Longbow question from next ahead. Please Research. our with go Shawn Harrison And

Shawn Harrison

on year way wanted does outlook that think the increased around follow the for CapEx was in to up Just investments million? which of any commentary for $XXX I change VOD, the

Kris Sennesael

filters. past. But related we XX% filter addition the necessary I especially in-sourcing our It's part CapEx No, with that the with CapEx end is operation. are expansion we in the expect that, not a revenue. we combination to substantial talked operation really. filter our and our CapEx we support investments technology in BAW of our in our to there operation, in our continue run back mean that especially we filter above process ramp capacity And about operation a some in in slightly making to do, of as in

Shawn Harrison

the the guide follow-up, you're about versus of a that As much spite permanent in $XXX of in temporary taking $X How out million OpEx of you're that up kind only year-over-year as million, Avnera. changes number? OpEx any of

Kris Sennesael

team, control. manage management know our operating can expenses. we will We we a what as Well,

revenue. lower at are will we well rest look -- come as expenses spending. operating down discretionary that's Obviously, on We the on variable

will market for support technology the the the same R&D necessary necessary make to that hesitate make business. our time, blocks further support build to those building activities all investments the broad and XG, future And to our good new of so, not at we investments expansion

operating very adjust, necessary. if again combination prudently expenses a it's manage and our and So, will we both continue when to of

Operator

JP next ahead. Bill Please Peterson Morgan. go with go to We’ll

Bill Peterson

I how through should sounds ask to year, year? good -- to you trajectory like pretty released products gross your similar we guess, given yet. margin year the through about think the gross later question the about for for feel content that it we are a think should margins revenue the the a How expansion in Wanted have

Liam Griffin

numbers right. maybe first there, of couple a So,

in December down, over basis XX is XX%, We lower XX% flat so with down seasonality XX.X% which basis. year and line at March points on came So, at revenue. on but in sequentially a year guide normal to approximately

operational to market again are value to all further are feel faster us forward that of the of products, we the ability remainder are the introducing help of will but products we to the get we towards are margin. that good type focusing Looking the year expand through to about and XX%. gross tailwinds Obviously, curve, technology margin improve we the driving combination on and the the gross new more that beyond target further efficiencies, add XX%, of revenue help of have I our our model will that, us if to more

Bill Peterson

the And I grow clip wind full look for markets pipeline, mobile. growing can broad your think a can guess, still at guess, is margin year? past do the I accretive presumably business described I -- think you you fiscal that you double-digit faster can that than as do you and design you at think continue in

Kris Sennesael

business digit. market double broad and grow we margin above to so, do is we believe average can that gross Yes, that continue

Operator

question our is Please with from Pajjuri Srini go next ahead. And Macquarie.

Srini Pajjuri

quarter the though quarter they're also content year-on-year is revenue March and nicely I in your if the then growing outlook, December down at almost market double-digit and even up so is broad look Liam, a double-digit pay.

the end and end there's a demand know it's reflects the do of actually what March is. not words in outlook has probably But my if need your reflection think the So extent of to question obviously I'm wondering, March just we I outlook, you true the demand? mean, quarter work that quarter the that then demand and is, inventory you through component level to week.

will on be light helpful. you a that So could shed if that

Liam Griffin

anyone tech think this obviously, out by mean, not of a expected shared to way specific not in kind is a quarter kind rolled just I and now the and a anticipated, is us what that Yes, what in mobile, number the And of again, changed. and of for customer. I even that's even we but now peers, absorb it's in semis reduction we

for I you here then other trickle had, do China think really set effect us quarter? that some we Where March But down off a all are into current and that? how our We mentioned, hurt of the as inventory is, challenges. we I and guidance the guidance right the our it's usually half. feel the can. in analyzing positions customers hand and is always keenly We ourselves where what balanced well we that on second were if see recovery can and and have we

quite One why is number QX was the of that. in to down the reasons frankly reconcile

forward from here. So, we and our feel that we move to created a balanced view here from guide position in our up

Srini Pajjuri

in content it what probably a what XG Is expansion, could announce either more just exactly to phones simply distant year, as helpful. that will like win shed it expansion? talked you to, also, terms not more about filters talk when on customers need then you if will obviously the constant bigger drive you Or driver then, powerful on some of And but going interaction? curious that's too and you bands? looks be next your comment several or about design if can light you And PAs that, are seeing of future. I'm XG in you're

Liam Griffin

And are no it's announced. in There's that. populating going couple question months. for be those will next Yes, phones of about when announcements we they're a XG the absolutely to XX Yes, see you things.

along bit of think end of but get steps I a XXXX the big shift will there later be little to ecosystem XG kind and will probably path. the XXXX, that

device envision your at we're Now, that the incremental XG at if you've opportunity, that to handset. here looking in is is place XG going away. is, additive in we already got if a be and what could not engine current going technology is just look your you and to

phone. gigahertz with So, or not That They're no in one in with dealing frequencies yet. with X around their XG or above their millimeter dealing and coming. walking that is phone today is doing wave

every So, what's is, companies Skyworks, how a and like in drive architectural know we are the have because going in companies XG they're greatest those for and the it complexity. it's These differently seeing provide that great be cutter an the shape to cookie issue, handle roaming going architecture that offer issue. deal to and early. a and size that's and also wants great flexible work also customer it's increased us that technology what know be it of opportunity the a to it's ability devices different, customers, in to configurable opportunity And for not us geographical They're the because to gives are whether with different. curve,

forward now tremendous looking DRX job weaving transmit platform with and we've on applications. out today with we're investments, our some we're devices GPS a So our of SkyX technology. chain some in the BAW. and rounded both of portfolio with We've side receive even done Wi-Fi and X, making too, these our We filter were

year So, be into know we're XXXX forward this late timeframe. this revenue this. further you we'll that looking into again, and looking forward to was seeing And

Operator

with Baird. Please ahead. We’ll go to go Tristan Gerra

Tristan Gerra

this think ramping had Asia be Elaborating would and second currently content question, whether previous the China able then the into of the of of geography on specifically show XG you kind in to half you currently and cluster say year.

could on base line your had of trying far stations so bit you’ve what’s as And see could in versus give also, ramp XG know like you you in revenue you us of XXXX? share to Just market that exit color looks kind XG? impactful your how a on be

Liam Griffin

we the players European expect them deliver the architectures the our we to great spectrum specific we for that's positioned today global the in work overcome. wave us. of infrastructure and and Asia to Sure, there's challenges all of in advances with the infrastructure see to and XG, the players these players some the U.S. customers required that that MIMO players to and there XG going the suppliers And all forms, we're support are players, in and these to well,

in and we're Nokia well need The see We've balance Networks. come is infrastructure a in there perform. for see to to great So, of we players new space. We that a we have obviously and of has be out network positioned this APAC this work across that. Ericsson to we place seen do. some Siemens lot There

have in have opportunity and infrastructure pair we side. also to with but the So, devices, we that great up the handheld technology

one we're it together customers. and of in that all signal get each over those So,we working

Srini Pajjuri

upturns that we should probably then in muted, a we meaningful we business And at somewhat China in to production XG -- the this RF should where the before year year be U.S., see markets your terms of content RF are for be in year? is going to year? we year of this is which comps bullish more XXXX, one look How more there's given content specific mobile potential over increases the in in so XG this probably whole U.S.

Liam Griffin

market Korea tremendous that early So, is, I say think in from a look would technologies it's global the because think possible. in across but well Europe at some globe there's to lot you've possible theater that's China got as coming got China. what as to U.S. may there, I the be the But you from XG, I also here

my and going be they're be balanced launched. as I I in my flavors you're and going different think in technologies going forth. seeing I'm mentioned, be it's what with dialogue going it's also to perspective And to to So, balanced have put more customers, more to

frequencies spectrums it go deliver will be well. across players. into And that be There are have new some is as new advantage spectrum. deliver There and to those we'll be these in of products Some be able required signals of that phones will that things and necessary. to just one other absolutely

about in single coexistence be challenges, that a overcome. have think the this challenges, of technology lots is going coexistence challenges, to all Just to device create harmonics of of

but do also working our They'll will to remember, customers be that. technology, it's be incredible brings is truly that China, latency in to data think players much with in a going more impact. a And technology I of a global We low it's XG rate, capacity. be

create before, to it's into future, as and IoT for small create even So, going as to mobile it's opportunities, catalyst enable just a XG moving is that not the we we haven't markets opportunities seen cell well. going automotive phone,

So, market look good there's with position and we're there leaders forward a in lot working globally. to

Operator

you. Thank

with question Vijay is Mizuho. from next Our Rakesh

open. is line Your

Vijay Rakesh

of site on XXXX? and roadmap show. exists you just broader work is see wondering mix there? the What BAW am us do I what you And said the

Liam Griffin

quite BAW been products Sure, sure. our for Well, working that, is what I while. on will a say we've

addressed. great getting much also the but that said then learning sampling we're haven't the opportunities matter customers new earnings We making that until strides, it we last successes about delivering on have about great call, haven't advancements, incredible feedback, and yet that we

in meaningful a round to lot but as a our to be BAW. of well, going space that we're So, players in as elements out we're going portfolio it's meaningful, certainly

investments we As made Kris we this technology. mentioned, strategic go forward, as in

So, IP, and different of manufacturing very to wave how know different whole done complexity, makes this with help. the being this the acoustic able production a of deliver requires now surface also get process that And a that happen. just of that we lot side scale isn't this is than BAW and is to kind and type the technology

in see a area forward. So, that move you steady should just growth to continue as we

lot also architectures. a there SAW TC We're these is Our seeing technology to as of growth vital well.

goes and makes continue of one SOI we're right things we technology, unique. right filter, of time the do of now some solves gallium and arsenide the on. work customers right differently in that it the think looking packaging issue within to it's peers forward But bringing and that. can the ready the our is, We it's Having offer portfolio configurability we BAW our then as just each and delivering the I ICs, another than mix other that integration, to

Vijay Rakesh

But on up the you know looks your went expect guess December et best but going we quarter. inventory to revenues also inventories, What's in-house again off And thoughts inventory look the on with side, then, any coming down? inventories how coming or get in like China the inventory to there? down, do it's side, channel your the the go to a on in And if channel I handle inventories cetera? March tough all you're

Kris Sennesael

we was inventory the the million course slightly take you CapEx. fiscal into efficiency QX. $X see then at December growth quarter want obviously on maximize of flat, on And are strong books We our QX when and have for inventory the to trying fiscal in and sequential forward, seasonal QX going QX up account own look to lowest and So, into our quarters our versus fiscal capital pattern equipment quarter. to our you and the minimize fiscal September

our So activity as a result of our that, into we load will factories. operational level

And QX, so up that and fiscal typically QX. our start and reading QX then see inventory so, low That's QX and the quarters, go in build off during internal inventory you inventories will some fiscal we in we seasonal own level. and

of behavior in On Liam that. the talked the the inventory have headwinds the some already most given macro seen out some distribution in cautious -- about volatility of our think channel, I distributors from We've of level definitely there.

we so, the are not there. And tape fighting

very partners We our of with working are distribution inventory normal we level healthy, and keep into the a channel.

Operator

Thank you.

Rajvindra question and last go Our from is ahead. with Company. Gill Needham Please

Rajvindra Gill

your potentially particular question, that With you respect mix I of forward? expanding broad you're potentially offset gross mobile that markets. seeing of pricing mix about going in kind pressure in increase mix to shift any so the shift, margins was your positive terms and of margin stabilizing as wondering that could business

Liam Griffin

yes. Sure,

amount market what as the the complex, much mobile say portfolio accretive to going market. XG, margins business we will and the that provide is kind get in broad customer but to well into the get But environment certainly, to our Company. a I value are and matter. to has that and for And we execution margin of tremendous move and technology bringing we more to scale of deserve differentiation advanced our think is, we're going also more to So, do very going

gross about beyond. we feel good to our XG move we margin and as So, and outlook

Rajvindra Gill

in give what what how that And think us the sense architecture think or I of specific ADAS MIMO? from that's and what's whether coming autonomous And X products respect position of of about have the for market. for my sub wondering, share outsized the system wonder percentage do -- there? Just growth or broad car? is to you'll gains What you a revenue follow-up, driving? areas connected your gigahertz Bluetooth the Wi-Fi, with you XG if you band could

Liam Griffin

Sure, great question. that's a

work, would I really year are a number strong automotive the players, last engagement We a can had before of uptake some has in arrived, we've it just a strong, the fortunately and a say, today started lot the leading we work of that work. we're infotainment half XG and of some and and in with with real announce telematics clusters And can't announce. now some instrument a we doing

opportunity move with one growing. segment a in connectivity meaningful player reliability at a and product the of cases for but of it's premium. road. you Again, XXXx the down be players rates is engines data meaningful don't with fastest a is collision in even within a many and at this, and and avoidance, So, things And it's systems along each ensure revenue. the move line, performance. to market vision critical. our way to think like to has and working required, significant a Latency see We automobile redundant you of piece and required we're the is wireless some XG. it's vital, connectivity. can And now, then different and going from auto the part XG are broad specific When zero is looking connectivity what element need cellular but the latency that, a that and further I Near we it we absolutely a

Some core on that we but XG be don't positioned we today, portfolio which vehicle. of have absolutely will the autonomous in in well are elements vital connectivity the

special. XG automotive is exciting be the in-dash and So, opportunities able I'm that's other an some to execute but solutions, automobile has XG for to opportunity. team on really happy going that been today

Operator

to comments. Mr. the over And for call closing back turn any I'll Griffin now

Liam Griffin

Thank seeing for forward Thank upcoming at look We you. during you, participating all investor to today's and call. conferences on you the quarter. events

Operator

Service. for Teleconference gentlemen. and today. teleconference AT&T Thank for using Executive This you, our concludes Thank ladies you

You may disconnect. now

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