Skyworks Solutions (SWKS) 2 May 192019 Q2 Earnings call transcript

Company Profile

Participants

Mitch Haws	IR
Liam Griffin	President and CEO
Kris Sennesael	CFO
Toshiya Hari	Goldman Sachs
Ambrish Srivastava	BMO
Bill Peterson	JP Morgan
Edward Snyder	Charter Equity Research
Craig Ellis	B. Riley
Srini Pajjuri	Macquarie
Chris Caso	Raymond James
Harsh Kumar	Piper Jaffray
Vijay Rakesh	Mizuho
Christopher Rolland	Susquehanna

Call transcript

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Operator

Good afternoon and welcome to Skyworks Solutions Second 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

Carrie. you, Thank and conference everyone Skyworks' fiscal second 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,

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

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

Liam Griffin

welcome Skyworks our solid Mitch high Thanks, across portfolio. quarter markets of leveraging growth momentum the of performance broad financial and everyone. business and strength IoT and our model delivered another

QX, we gross posting operating earnings $XXX while million, of of a of XX.X% Specifically, in and revenue margin margin share per an XX.X% generated $X.XX. of drove

again mobile, growth were in by results path outperform fiscal to quarter broad March Our markets continues double-digit China. unit ’XX. particularly weakness impacted In in across business our on contrast, and for is

new pipeline and a the while execution diverse quarter, growing applications, end building us of of markets, customers. opportunities During for our win traction set design positioning a continued across accelerated,

lighting. gaming audio X SXX of street long We enabled smart we and commercially standard available access engines platform machine-to-machine Aruba, with wins we in applications. SOCs led stereo point. We captured our portfolio indoor DRx bars, the XG SkyOne meters For to first our communication Asus, Samsung's gained supporting and example, in latest Netgear. at And transition the premium range quarter, platform We Galaxy in WiFi content fidelity the smartphones. sound with and headsets, Cisco, high leveraged and the

infrastructure roll Ericsson MIMO supporting massive and with in new our our c-band We secured in they LTE wins filtering we also expanded Nokia, both as entry, And aerospace and across features. remote extended XG. entertainment, with cabin eCall, We categories and defense, reach additional our automotive devices footprint solutions. out leveraging

new As Skyworks advancing these market on achievements demonstrate, segments capitalizing macro customers, while across diversifying powerful trends, leadership. and is our

entertainment, solutions services. Our everything to to from hailing empower cloud, to to data ride center media e-commerce

connectivity to rollout technology this function Moving require tomorrow is of of built enabled by cloud, critical reliability. client perfect forward, supporting generation continuous The being are transformational the and Skyworks’ applications XG. partnerships, a in zero performance, the data, and a solutions of of the near strategic deployments. XG while global success driving interaction leap the scale latency, step unique high speed new on between expertise, change revolutionary systems and delivering

as emerging of and to Our millimeter SkyOne modules including of as systems a technologies broad devices, a MIMO in low family diversity set well of expanding solutions, addressing strengths underpin SkyX ultra-high an array and bands receive wave. capabilities,

in categories we've to megahertz the hold, the from spectrum XG expect traction six portfolio gigahertz. product further while as BAW made higher strategic takes by benefit targeting bolstered and frequency filtering, addressing future. investments to Our TCSAW, SAW, XXX new advanced from is And spanning in we spectrum

QX. and operational reach position of over array growing markets, quarter’s momentum that, these to Strong for performance strengthened a to is experience Skyworks competition in scale, applications. while call breakthrough of content customers for us class will across discussion allowing over providing of premium execution importantly, Kris with technology shareholders. in world With competitive and generations, outlook developing decades the to and multiple superior I intensify, last As our solutions returns demands technological broad flow turn wide and cash and our out-invest

Kris Sennesael

XXX XXXX for fiscal of quarter million. second Liam. the Thanks, Revenue was

our expected, to of were of million, operating markets. expenses. in and quarter our profit X% As XXXX. gross million XXX the of flat growth generated business weakness in resulting operating partially as second fiscal Chinese offset line our strengthen we operating declines income, overall down into Operating XXX unit Gross compared sequentially, continued an the markets in in was of to guidance high We end allowed XX.X%. a to expenses margin across with million, XX.X%, XXX and margin manage continue mobile translating us effectively

$X.XX net This income effective drove or tax earnings was quarter per million of diluted XXX rate of Second X.X%. share.

and Turning to first XXX cash cash second fiscal the was the XXX million quarter million. six of months and from flow, the was for operating cash fiscal sheet flow year, balance operations flow

ended of fiscal balance million shares were XXX million our X X.X billion the a dividends with quarter Second million with expenditures XX capital of we stock distributed and just We repurchased no and XX for cash a quarter of in total debt. under million. common

looking as Now content our to strategic earnings quarter, portfolio. market broad gains traction driven and revenue across sequential by growth mobile expect in and June the ahead wins we as well

in operating anticipate of we X% to tax slightly to rate million anticipate we million. between expenses an XXX other Below to the and margin in XXX range line, XX.X% effective income Specifically, million, XX%, revenue million the approximately be XXX of and X.X to X.X%. in gross roughly the and up range

share count We XXX approximately be diluted million to shares. our expect

Liam. deliver approximately midpoint $X.XX. to the revenue of that, turn diluted plan With per a million, earnings back let me of share we Assuming XXX call to

Liam Griffin

Chris. Thanks,

in In of to are the that advancing investments reach, make continue our leadership. win pivotal In and vision of the levels an economy executing everyone tomorrow, concludes opportunity while connecting deliver shareholder on connected our Operator, firmly technological all parallel, to strong that increasing remarks. positioning us value the our ambitious committed market to are Skyworks. for unprecedented of drive As we we us results summary, prepared profitability, allowing everything time. we our illustrate, to

questions. the lines Let's open for

Operator

Hari first our Toshiya from And from Instructions] Goldman Sachs. comes question [Operator

Toshiya Hari

and markets for into you the the for My is revenue you June? a question. and For between housekeeping first March Can one question. please? both, your taking expectations what broad mobile provide quarter the split Thank

Kris Sennesael

Sure.

in March revenue. of was So, our total quarter, approximately market XX% the broad business

So, annualized run to up that run billion rate. we continue revenue $X than business more

broad as year are We we the over said continue in to business. year well see growth remarks, to there double-digit on over prepared in growth. see continuous strength we track as sequential both And as with year that markets year well

flip our XX% was business, of Of we revenue. course, on the mobile side, have which total

Toshiya Hari

think year drove over And close sequentially, or here. the XX% XX% year. uptick? color my up can Kris, inventory. yeah, some It their to provide hopefully, any What inventory Thank June you And and there is expectations uptick do drove follow what up And the on I and was would expect be are down you to be helpful. you. there color flat, what around into

Kris Sennesael

slowest in line the our is of days we by this seasonally fully increase and quarter, more of even March so inventory, year, year So, which did with that the both our in content in of in took factories, new expectation business known level in the dollars wins of large levels calendar driven gains quarter inventory the half ramping absolute than with with as in the in load are mainly softness of to that advantage programs, multiple customers support second ever the our design before, fact year. we the

to drive doing usage and that are so equipment. our minimize of efficient future capital And capital to expenditures we

months in we a when carry terms to you I half June addition the want calendar quarter, we know, buying inventory have of -- stocks. days gives be year ramps. execute our the but into product we of quality in then, In on you of to compared flattish second in continue those kind inventory bit but the filter house if just of work of of to the of filters improvement year you so XX% inventory them as as track raw expect filters, to well and first that, we cash a out advantage, advantage, look are that, and in-sourcing at said have you to we performance execute materials, that free a we your of from parties, in know, our to flow as to of process, strategy the little cost the flow on cash some fiscal us free point that a better calendar, full-year six XX%. buffer deliver of on third terms in expect more you Having produce

Liam Griffin

known Yeah, year. right let on solutions the to half is to Toshi, half, comments add, and now that is the of for second very wins have working calendar being -- compelling we me that be design that second that is in delivering Kris's the we’ll directly complex, that that we're targeted inventory the built now in the products

is material going. So know we where exactly this

Operator

Ambrish And Srivastava now BMO. of line from to the

Ambrish Srivastava

exiting term implications longer settling maybe on with a and Intel your question to business. Apple and Qualcomm medium Liam, for business the

saying Intel not would it's I'm hence able right be the that then to negative Qualcomm would business and and be impact a assumption really also the on you and bundle assumption more business. have your one would So, lose

number about then just So thinking had please. investors least, of this be I understand I how it, as we from at up us should well one get kind a help question, and follow

Liam Griffin

a me little kind long in time take thought. back view go at problem. this No of bit Ambrish. let and Sure, Well, a

is all, know of baseband you First Skyworks agnostic. as

products with LSI, Huawei, et with MediaTeK, cetera. Intel, Samsung are interoperable Qualcomm, with Our

the of baseband effectively share. I ecosystem So, those of all very also would our to had grown with in the navigate largest always customers, we've we've but we've been baseband, able and amount tremendous volatility operate say players. with

and back point, on if of times at and business. one where had was, position two going all of transition players you we in once, there their had then there largest impact customer look no that baseband was a was days at So at our the where and the early

one work content share, things if shoulder do have that in in made investments we to our We to with grow work the that, allows to in Ambrish, shoulder customers, to the design look to we of our technologies. continue our out, us is engineer position. that the grow engineer, And

We integrate it the another players also arsenide complexity that wave. RF, now and maybe to to go the by of important. goes We're really a gallium there use we excited is to baseband daunting, world, have scale was makes SATA, is to but is up. maybe us you But CMOS, in-house things of to technology And the goes one of happened. XG investments comfortable curve thrilled no really bring use XG. It made When from for to stretch opportunity. XG it acoustic challenging. XG, technology, it this try a way now SATA, is The easy. never array which TC expand opportunity and the bulk an have move and the lot from technology, by that right is market, filtering custom really We've

XG on into really moving people to the leap baseband energy lot our enough. spot And sweet invested Skyworks. and But RF we the when start now of ready from that have XG, we've to and challenging execute and it's So company the time agenda. is you a in of in

Ambrish Srivastava

Okay, prospectively. a see XXX. day Kris, to for that's helpful follow-up, and back in you maybe back on can’t to think And I XXXX. run I inventory days, I closer that, the my

that just seasonality, there understand but please inventory as earlier thinking of help we how a we broad should naturally earlier such also, comments an is normal us and as be inventory be based thing thinking with no normalized normal how more business should to much taking So And seasonality? kind inventory? level, is is of we and you the thinking the given that question made days carries broadband, should about level be higher bigger there that business, a

Kris Sennesael

factories, Yeah, somewhat the the why of we softness to advantage inventory in due We business. reasons have capacity is right? higher, least temporarily I took I've listed our mean, the in the at

And so level than ever before more did we loading.

by elements, as And level out. be its will time, I it being to expect skews couple I multiple nature on a well. for higher Having June said higher But multiple inventory second mentioned about inventory more filtering decline that, result half or year, permanent end quarter, absolutely as market of about levels down, will some lot stay second we ramping the were for a higher on as in as will inventory. I as start broad that didn't more see sourcing, historically. see in so well of put other of the the same in then customers multiple inventory some that. businesses one think you're The in coming the basis half, we you they levels likely be well, markets, the where they a days. And diversified, we out inventory calendar business but will in the level. than than right There's resulting is a the over in pointed And of then

Operator

the Morgan. to now And JP Peterson Bill from you. of line Thank

Bill Peterson

question Wi-Fi this But growth really do actually same so for as starting design a field markets segments as wins in when first guess the first X, broad the I was in us, this MIMO, broad bigger X massive markets guess next we be you year, would rates it's and and if for see of slow production and had quantify next? And had this MIMOs and I start. for within your into in to to with Yeah, year. ramp CV, guess, the growth you a move needle, can these, I year kind this far the on wondering, mass do on or I massive these trials Wi-Fi I forth. more are these expect

Liam Griffin

Sure, Bill. Sure.

say we build now are Ericsson, also prepared right with with in would Nokia, on side, noted remarks that with Huawei. infrastructure outs we the I So the seeing

solutions, still and complex think the our some deployed long we so delivering and being ongoing out some of we're that just So starting the infrastructure. that infrastructure our have to here That's tail switching with is XG architectures roll, right now. or very and building we opportunity It's rapidly in MIMO a on of early XG of really innings, filtering that's side. infrastructure but there's

There's Wi-Fi position If a named AX upgrading strong number There's are call, by to doorbell our points myriad XXAX home broad of you ring the to access standard a the leveraging to we that design our Wi-Fi, position its few a just look of XXN the have to applications Wi-Fi type had tremendous we that at that now again, routers, there from slick a its X of Wi-Fi reach continues connectivity product expand the today's and wins opportunity and have really newest solution. are that coming in empowered us. customers reach just a that markets, in to lot customer within in but opportunity really and security, application, we are we've X. from

it's we a So there and innings gain. a we're X, Wi-Fi but expect player for early proven

Bill Peterson

guidance, curious shift seen guess improving How Sure, first June doing directionally guess mean, about you do other weakened spoke and be driving for smartphone. I'm sort well Huawei see midpoint obviously in specifically I appears the growth first I well. some to, the as been at calendar the see where quarter, what's China, this China business in second, I and it's you very quarter China? to your that, the ones also China we've so your of share not do you quarter in

Liam Griffin

and were also the China more and quite numbers that, I we up quarter And shifts the ecosystem a softness here. in the of little Well, in dynamics softer. of was that Vivo, picking Sure. there bit being March bit Xiaomi Huawei in some read through market within with share a Oppo, seeing

March quarter. in did experience So that's the that we something

start in accounts see could see smartphone pick impactful and a the But side, more but player have a what operate tier gradual being XG on if of is be you think move is in the much content when network. accounts As in not infrastructure players significant on absolute to strong, we mobile, long, second to pretty necessary, some folks. in like unique the gains are obviously mobile mobile. those the some basis, also basically the opportunity in actually we continue to smaller quite China smaller we starting you in Huawei than content the a are more with actually Huawei today players ratio up a, look are only XG, the in must to and the that out, than we to there because device in today. customer a will Therefore, be impressive smaller light. that even But technologies And

So, lot China to there's very but look very there, the quarter, to challenging. a certainly forward tough, March was

US QX the and we’re China. -- through half. in see the of second now the into some impacted and to it think also improving should that start that I sold into even getting customers But, conditions

Operator

from line the Equity Snyder of And Edward now Charter to Research.

Edward Snyder

burn didn't burning Qualcomm's big that’s but the to hate made I first Liam, yesterday deal CMOS call RF claims, a wins, mention millimeter they what wave a question Qualcomm's but on he like through were Cristiano on RF, of my mimic phones.

check, then reality follow a Qualcomm, I like you got a the RF some phones seeing pixel being as are toeholds up. of Just they reversed that and year on in X year, the Qualcomm’s have last this

Liam Griffin

been working their expand position, baseband a great have and Yeah, they baseband. they to have

of really RF popped our to couple about the they they So in where trying forward have no really opportunities. question but up, a spots There that, impeded section. been move haven't but

we the well to mid to continue in do So, very, end. very high

technologist, we know technology with the complexity we're it's been builds networks the you bread we the in and just now and your working unless seeing that and see that as well, difficult butter As on years. we've some this the of XG XG of is very some into a for and have, that this in burdens

We have terms going be it's all Qualcomm but difficult. a own and RF, interoperate here, move great position, their in day very with we think long, the to trying needle of I to can

here working We have years years with of this. and experience

create have to mentioned and shoulder-to-shoulder do main in filtering highly SkyOne the and And work configurable our market, as that go then we customers. arsenal why some ability we compelling We reasons to think quite of I our building customized and it's the in integrate I we're to in-house engineering of offerings our is win. and assets each technology, out with SkyFive the and one

and we’ll but lead. continue ensure we with to our we to RF, ambition raise compete Qualcomm an has in comfortable we to game are, strength our recognize raise where So, that we're

Edward Snyder

in, checked now, was in I you of have soft, generally drivers time quintessential was soft, I sourcing while if it modules inventory pulled one there's mentioned a your to last in in thought a we module sampled and source you're RX I this see any some the XX% I the your of been to just your we’re guys then surprised to if ago filters, big was we're Liam, on and all could, were lot could, on soft over on heard part of in working I point And been filters. little with you and the in of talk diligently Have you customer, of play last the have We've that all on largest know role fall you device. of a where gotten it quarters. duplexes I die year. now. Thanks. your in couple BAW sampling yet at this while BAW

Kris Sennesael

Right.

I'll start inventory. So on first the

for year and half last filters roughly in XX% a a to We the and ramp in maybe of couple the XX%, next a ago, So big to year of XX%, cycle, a new quarters, as house. products, now closer will get in XX%. made the we XX% house we and the the were move

Liam Griffin

be Sure. the now And we up we've in have we are And broadly, that following design production solution. similar and discrete supporting more kind right a to -- known on not a a of to be, like capabilities. BAW our that BAW now, going communicated opportunity going will think It's to BAW that be wins module filter, of it’s technologies. with it as SkyFive it's

quite half. our expand delivering filtering XXXX. the the opportunity in only number that in investments board, expand made excited We've really we And slick we we're the about and to And, money that across quite ready, to continue at sampling opportunities looking really we're bit capability. but a of we're we’re need. capacity, a we're not the some ready. try second of also And in to we're BAW product have of continuing investing customers set, technology We reach spent a the few

some positioned soon. be will there evidence coming be here of and our we So should well success

Operator

And now Barclays. of Blayne line to the from Curtis

Unidentified Analyst

and over the the as In prepared much how Nokia where can [indiscernible]. And talk business percentage you massive highlighted Ericsson. there? you're a some you is guys to This years? remarks, basis, wins MIMO Can next winning that your contribute about couple with

Liam Griffin

been pretty years a a slow We've that our wasn't it's of infrastructure as of always the XG and point. been along broad part there just few kind in player, market. strong last meaningful but Yeah, an in lulled market business inflection had

Xs, and we millimeter participate we very the is we the of can down we there's a do new, technology, going switch some lot Huawei, go we'll even been be what and do, across into and even there. So to the supplier infrastructure board, that high opportunity here have arrays antenna things for wave can complex. power a road all to arrays some the space, amplifiers, do, we've tier that there's which Samsung Nokia, And the

players So, stimulate of to XG there's a new absolutely going set some that we and opportunities. large revenue relationships have with, stimulate is

Unidentified Analyst

weakness -- just China, you in digits you see then March? second in highlighted get still one of I growth is are when do double still moving on you my that March, is just guys is or that vector did up normally And color here, the in in little that talking down across on March Android pieces more business entire you the about weakness. a the and in March some want weakness, business to guys

Liam Griffin

some a tier weakness marked and also signature. of hit China different This the a the had had It the US a We of sure. kind Xs China of I different, year, China maybe Yeah, smaller bit of you're typically the And you in also, tell pretty that's right, think season, larger some US effect I then, also we March oftentimes, in broadly. a quarter, historical have March. experience. And names had a in impacted a lot can of economy’s up the players. growth. weakness come some sideways, holiday December, companies. in it the we even go in you down all there, China, Well, holiday In a QX, will

there weakness in where market. an board was across unusual it the that was So period

opportunities already half. some talked look to in seeing really out on And the We the and the some call XG we improve QX. a in us. get as new stimulate back should the normal are we hopeful demand for about And China second we things the of business again, into cycle we're

Operator

Ellis the to of from Craig Riley. now B. And line

Craig Ellis

to Guys, up comments, the a follow to line. moved inventory different wanted I but on of some

So gross bounce we are can what to margin in with the where the given year, typical half it the loading expansion gross be of income the the still to margins we Kris or they expect inventory? after implications reduced, and if level inventory, see up higher statement is incremental for back would

Kris Sennesael

Oh, operational continue no, at on execute very improvements. we not all. mean, efficiency I to well our

new, bringing the more be in will products market complex to We the second half.

And so combination model see gross continue of improvements XX% will half. we work will our gross those two, margin And to we towards second of further the in target margin.

Liam Griffin

Yeah, let flow of a some challenges bit look margin me XX% mentioned we're to inventory, a right we and here little cash you deeper also Craig, and delivering just at XX%. still that and of that to we're if on, with committed add the free go

expectation free even XX% So we have we’ll year. deliver with QX, here flow still to to that full some able bumpiness deliver, for a be endured cash in of the the we margin

Craig Ellis

what's a times, give think back And give not what business I'll At that in think but us the you just the glimpse back sense possible half business of the Liam. in seasonality speaking that, this made that for return any response the you half, us you can time? in normal a sense about for at year. the I hope do, you guidance, a question, comment last for follow in a were to the Thanks to then of just to up on

Liam Griffin

we it's to we're design improve with guide that know the the QX positioned product reasons of and support Yeah, have incredible very It's really We We customers. see where a comfortable we the half, market of well, the one expect it not strong to is that. for see why inventory that that very We're some us. do our position wins QX do mean, for pipeline I coming. is. but second

And better the so half the certainly to than first second we half here. expect be

Operator

And of Pajjuri from now Srini to line the Macquarie. it

Srini Pajjuri

is win and how you us modules, Liam, curious your -- XG, your you the of what there if pipeline questions just just a to low enthusiasm, down and couple design color on then, looking? pad products some DRX I'm And to given could of band as have also, historically cetera. et kind give where

So wondering provide us you these if as color winning some where to just you're designs? could

Liam Griffin

XG We Yeah. think of into different ported as technology technology a is then applications. Sure. and that

then So smartphone. us that that data one a required obviously, be to most And of XG that the speed, the very VR, phone VI, blocks and performance rate, to smartphone there, for necessary XG that to incremental that the yet. it's that factories applications And XG, hasn't and work. by AI being the new robots, things in the enabled cool AR are like have markets operate signal you're are is compelling machine and XG you a see to building happened machine really going that where stuff using clear to make delivering content,

We how on significant the that we XXXX to smartphone. little the wins XG see any we're right this of fit a design and and about working really starting to to seeing product market that excited customers believe occur I don't dynamic. and But expect in smartphone growth in is XXXX XXXX. that see first in. do bit So roadmaps working the more we're a we're their the with

from be a and content, going going decades important stuff. house differentiator is fact will to will scale, then X the hard is a this for the technology the there lot It's complexity. filtering factory So lot the will XXX experience is about that be I technology be to and into well have that, of a us. to that necessary, say the That positioned. having spectrum in And the having be we scale we now to wave talked mg assets, even of of the building have millimeter blocks. gig and the

propelled that So all applications be by incredible be to of going see really we number and I it's look powered to think technology. forward to are of And that. the XG to going

Srini Pajjuri

free it? cash cash more generating plenty of but working And then still seems question. Liam, of Got a a well, acquisition flow. you out you an to and strategic made lot that so have be of obviously,

smartphone customer a Just going thoughts I wondering have latest with concentration. is how longer, M&A mean, on the curious, you're XG, thinking thoughts, obviously, you even forward. I'm just big M&A about are? market your what

Liam Griffin

that power we're Yeah, organically I same that forth I'm it Skyworks of the still we we excited opportunity discerning the flow along, ready mean, right. both we're and a signature company, comes that it have path. to generation comes we’ll we're for that have opportunity very will as time, advantage. be, available. with the M&A. really at very mean, But I been But pleased Sure. take cash going the putting right to about the years be heading when and that's continue to so you're down we're a be to

Operator

to the Caso line of from now Raymond And Chris James.

Chris Caso

Just the talked levels. last inventory? the some inventory you address a about on caution you you more do guess And perhaps on Huawei inventory. some question now the inventory building weakness. with customer about potentially What there's, directly? amid of I situation is customers feel could some quarter, fears with part Huawei some And right

address please. could you if as So well, that

Kris Sennesael

Yeah.

channel and lower in It's okay some that levels told or our we inventory channel, general, earnings talk we tape. the when strong behavior about levels us half. we you saw last cautious up sequential have not made in we fighting And as are inventory where to call levels the distributors. for second the quarter, I in remarks growth last in by healthy So some some of that inventory of sets for now stronger

their hub relates have to we levels. don't of I are a because visibility Huawei, know great is inventory arrangement. We it As a about speculation lot in there

once we And we so have pulled we visibility. out -- the inventory once product them. in channel And don't then, their hub. don't revenue only their any for And of keep they they recognize so

Liam well given market. China of we the themselves business Huawei is before, overall business in with They have some as we the market strong in said share and are that are in positioned our weakness Huawei relatively gaining infrastructure. the both very mobile with As them, strong, well But Chinese believe infrastructure mobile. and in

Liam Griffin

Right and Chris, that's the key point.

other numbers at players numbers China us, look the the saw you down. If really really the okay, do Huawei but for QX come smaller we in

most the Oppo, know share the capable do technology from others. a shift. was that some you Xiaomi is So and perspective, of We if Huawei look Vivo, that at

market they're So to they're their move outperform starts towards to peer starting the complexity, going as likely -- group.

was the through of in that that read QX. part So

Chris Caso

double of on want that’s market weakness up decelerating a a the I for clear I follow couple amid are saying, the perhaps what the year, some broad growth guys expecting quarters the of are business, and As expecting the year and of business growth behind suppose broad the in well. and still market as business are been you guess we as you second some year-on-year be give I into the digit on the markets now reasons has that. to that half reacceleration go from you

Kris Sennesael

year, rolled so half look fiscal about out you broad XX% first if of markets. the at we growth Yeah, the year-over-year in

maybe basis full or year-over-year on we on expect, growth. so And year slightly about a XX% XX, above

so result the we a half, some second XX% of about growth. or So, see or on as of year-over-year in XX% continuous that, course,

Operator

Jaffray. Piper of the line Harsh to you. from And Kumar Thank now

Harsh Kumar

manner, factors technology, was XG since gating significant the come you say BAW that now somewhat in let's very I with are is next wondering, there year ramp new particularly, phones? you see your allow out you're can to largest customer when any a to that expected to

Kris Sennesael

is are if the question Harsh, So any factor? gating there

Harsh Kumar

point? is there at factor this Or Yeah. there Technologically, is any you technology you’re to missing? a is ramp unknown guys that

Liam Griffin

Yeah. that's great. of for device It's cross what our Yeah, and factors talk of And about lot feel and And It's the the good in battle and is opportunities. challenges. are gating There before. lot very, XG. Harsh, very in complex. I to be of are a makes That's gaps a it the of position will there Liam. going that's this and technologies call occur very device. current together put for new in all set a noise never same been going all to and

in is the incremental under like device. So with we're an remember, We're I put Skyworks, hood this And companies XG the leaders XG this opportunity industry to overlays working smartphone a and that about all we've together. in talked before, the technology XG, now. in even but there think

to bring into technology all of a that. form interoperability and manage got So single that of we've the factor

we technologies, ability assembly So the our there's filtering it, from complexity. is What Mexicali deal our in great, in own arsenide, and in and to gallium helps talked have we great us about a test our house span of house customer, needed what carriers geographies and customer support to low bands by what live is ultra-high want select going all to and the what what to in, in. on way they're depending up roam band to bands, going they they're

for a turns of there'll -- out but into us. plenty be that So And lot that to that. opportunity challenges, translates

Harsh Kumar

on those in those can guys one for content for follow-up, you How see playing as XXXX units. your year this do I thoughts factors ask two if versus business you your mobile? then things, out And

Liam Griffin

would going control. that driver. that's Yeah, to is big And content a be say, I something we

that So, But be this have of going up, I see don't bringing there's more and carry units. a year and pop see the areas. have of pop some spike and effect these is going then replacement big move. value our XG going new on now unit other to know that's I the And again, to double think and and a But focus the to and if the up half executing controllables a in then we content. also that reacceleration to and that's second starts content in the in technologies on when we're executing units the to unit you potential more rate. pick on XG

industry. eventually together in the So eventually come well, come but in that'll start sync, not for together, happen that'll us may to

Operator

line from the And Rakesh now to of Mizuho. Vijay

Vijay Rakesh

wondering about look guys as side, landscape wondering on especially seeing, are being, on talk just Murata band what has half. at competitive handset side, the some the especially, low getting there you company you the the starting Just back from back been

Liam Griffin

more on Murata focus like position. stuff compete all been we the the we They Yeah, end in low space. mid with well, our our always to time, has We them like in game. our playbook,

We we're feel always into have a very band pad moving they're and anyway, around and about up been categories. has in not to categories solid, our good low ability Murata we're our we’re and low is grow our on now the position band and in our existing moving also new seen but today. so we strongly defend them pad encroach competitor. But

Vijay Rakesh

wave wave I but least slower, like wins there like guys, design broad the looks some guys some bigger about on side, some the ramp especially on looks of got or like know, a side, the at carrier markets, European with -- any talked it in versus the nice been carriers, bit has little are like the some so And of it of ramp, of initially, millimeter European but you on the especially it Huawei, delayed. seeing carriers in looks you the that change rollouts millimeter Chinese some the

Liam Griffin

are good those Yeah, questions.

So kind of two parts to that.

that's for is are the some are great with we we infrastructure execute. spectrum it devices European Nokias, So, growth the seeing of are, category, actually And players, incrementally a millimeter look at requires positive. we a If Ericsson, new the European nice we types different it’s carriers, example. technology, seeing, of the that wave deal new complexity, to been as

for And to same type everybody game players I the with the don't so carrier. number market that's But case are every of it. it's different is think not, where a changer blueprint comes a bit think, of It's a of a on solution. I where a working

wave of competitively implementation there's a, of I street still smartphone implementations There's neighborhood what's I an infrastructure of a being network there And think delivering call, some type along, area right of in will what technology. wide be deployment piece. to the as see well wave. lights kind done in work itself. that millimeter the think the lot would we as could almost be, of that There a further is millimeter eventually, it So think

in it. some growth. for five an pretty, we years. it's three element The over real could XG driver millimeter But pretty of here the wave opportunity another is that's So space part TAM that a bit. And significant next see out a and on be think to the we're I are to working

Operator

And Christopher question comes our today Rolland from final from Susquehanna.

Christopher Rolland

example, out you into move to ceramics, talk element. response deficient materials here, I what perhaps into higher new about your that be tying what last what be guys might frequencies, And Can here might you acquire Perhaps understand used that and there? for might you as looking you be capabilities lump more have, we that in? or

Liam Griffin

great question. Sure, that's a

wave, noted fact, In spectrum, to lump aerospace the in earlier. push production. that in the But some of we to mean, new in in megahertz. is technology XXX X.X, you technology ceramics entire so technology comments have we it the that from which We way, Today, and right, across in go gets to then I have don't do our up element by can X-gig millimeter you're deliver about we and with development. start to defense deal order we

development. it have in We

to to bit going spectrum millimeter research wave again, make to there's a that execution technology, but new. benefits lot there's of that It's, and a So of be it's quite development and work. great

on in on different a way. been working the We've is supplier Skyworks each So leader integration side. a in

important the a things also So for integrated that's an handheld really just that have infrastructure full side, of system is silicon. piece solution solution, one of a the want their side. them in the and works They in not they customers,

Our great as to there's leverage sure arsenide ability our the not of notes. going bands put their in in complexity then all to they're to with can and customer reach house approach. But their low ultra-high together. mass that wave. a way going space. a well and We're different technology again, We into from in deal millimeter that across hit in bands, we we're our their to each market filter each of packaging fashion technology packaging, schedule, gallium work and their all the and carrier portfolio, that make very timelines do the work Because in to

the the be we're as as in noted, the continuing We're for to work. we're from making in accelerating years. a to investments. industry the right forward So time, few Over big been look It's over our learn for again, wave next now. matter. opportunity an feedback to get that sampling we millimeter I a there's and space. us And customers lot opportunity We've going

Christopher Rolland

power, for guys their to particularly sense, talked I'm when that, you we optimally that. comes But these guess their as they example, tuning then frequencies. I totally RF move on makes agnostic baseband their out about – baseband, on to into saying work some of not modem it higher with but And plan Qualcomm is being

the why there be and can So from good. the opinion, But gained no is in RF same competitive modem sounds that advantage both system? story the I guess, the designing in really your

Liam Griffin

It's at we a are having different technology the look arsenide different. that complexity have, totally today, hard, have nothing done is have it the world. okay, different and that and silicon incredible. hard companies time the XG executing RF, devices, moving they're different are to than CMOS. you completely Well, but XG technologies. very that technologies When RF gallium The in And we XG,

technology, respect And number significant and very, very a challenges with company. the companies right to for in been RF for we've long that XG, given baseband, So implementation. We the up company, of them. their XG side, challenge. threatened baseband along. space. a a side, going we end and had customers. a have hard this hard, to the I challenging and There's not in Qualcomm had The XG for competition around the have interoperated But to take delivered time. leap handsets think a had digital that all for RF be out that complexity spent to lined with we be solutions moved for into very in think They is and that haven't of but time, comes really energy great we for has time we've lot them threat been going stuff a now really compelling it's that on has I haven't us. Qualcomm a But market our great of market for as seen we're world, this Qualcomm on years been and XG, around long we we've bringing from XG, seeing very, them working the be

Operator

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

Liam Griffin

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

Operator

Thank conference Executive you. Teleconference And today. our for Service. using gentlemen, does and ladies conclude and for AT&T your participation that Thank for you

disconnect. now may You

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