SWKS - Earnings call transcript Q4 2019 | Skyworks Solutions, Inc.

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Operator

Good afternoon, and welcome to Skyworks Solutions, Fourth 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

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

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

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

that, to Liam. With call over turn I'll the

Liam Griffin

Skyworks in fiscal and welcome a profitability team challenging model, everyone. solid Mitch, despite our demonstrating end of year, and Thanks QX the our technology leadership business The and resilience delivered and flow throughout market. cash strong the

We million. XX%. we generated During gross and we and operating fiscal of revenue sequentially. X% exceptional flow the of up margin and Huawei We of revenue our up XX% operating share $XXX fourth of excluding margin posted earnings XX.X% ahead grew $X.XX, and sequentially, XX% totaling was sequentially, quarter produced per guidance cash

billion, of of billion and of approaching cash billion. free year free we through and cash We and XXXX to fiscal our of $X dividends. we flow billion, representing of returned per from For XX% model revenue margin flow a $X up of prior $X.X nearly shareholders flow buybacks nearly year, $X.XX the XX%, XX%, $X.X target earnings the operating cash delivered share generate

four smartphone expanding At over fully customers. a set and continents an expanding of cycle the across XG is and level, underway, IoT higher carriers with upgrade now XX

opportunity X the migrate billion and as to their cycle XG devices upgrade substantial Skyworks. a XG from significant today mobile expect We for a subscribers creating XG,

Stakeholders brings, building the XXXX economics are this that momentum and the technology beyond. inflection now into compelling seeing substantial with

we XG network set offers catalyzing is a latency calls becoming speeds, It and not capacity cases, product. gigabit As enhanced connector. while of universal ultra-low a the in a greatly be usage said previous technology, wide the

Although the of cities, even in smart to an new we industrial more and including smartphone lead the streaming will and applications, the transition high intelligence compelling opportunity see autonomous markets proliferation IoT, media. definition XG, transport, artificial

will by the a More next capabilities deployment daunting generation hardware challenge in the existing RF analog this complexities integrated play importantly, pivotal engines that role of connectivity networks. of standard, highly resolving and the and

sea is squarely at in connectivity. of change the Skyworks forefront this

earning as have XG. customizable integrated solutions, leaders the execution cross We design highly system of trust heritage the market and from chasm they of a and rich in the XG to

goes strategic while footprint beyond operational on It sustainable in and units creating scale. centered competitive far own fabs, technologies, Our advantage. crafted our is unique

Wave a scale by filters, diversity array band and and ultra-high capabilities, an of Our TC-SAW is world Acoustic class strength family fortified Solutions including across Bulk module. in technology MIMO expanded of performance receive broad and

approach and customized small cell wireless high Wi-Fi, equipment and XG and Skyworks user our of across speed, our set facilitates GPS, Bluetooth, highly platform, infrastructure support XG. Our unifying LoRa, course including a powerful, both SkyX solutions protocols, connectivity. of system Zigbee breakthrough end-to-end XG solution, broad comprehensive From

leveraging and platforms. wins our mobile is our Now leading with accelerating, of OEMs set XG at in growing in broad traction business, design

XG Samsung across and Our bands. with and are extend and to filter LSI purpose reach our spectrum portfolio, the solutions interoperability including of offer suppliers Qualcomm, launch capabilities and we built of successful baseband our and are to BAW all positioned across XG expanding MediaTek, HiSilicon, a customization broader

to the wins, than we X Tier customers. are LTE design Moving more XX new supporting internet-of-things, automotive based ramping

reach into LTE range to introduction expanding Wi-Fi and speakers, the cellular we Sonos’ leveraging performance indoor/outdoor cognitive our smart Juniper, Arris, portable the wearable customer IoT of on high Wi-Fi powered of our audio platforms, gateways, launch all-in-one engines a of our enabling leaders including engines, are Sierra executing and expanding first Amazon, devices our industrial connectivity Wireless We GPS, are AT&T, with Netgear. and chipsets, our with powering delivering X and for transportation Linksys set their

XG infrastructure technologies need arsenide, networks. Now solutions. technology vast set for is leveraging capability which deploy unique in requires as their Skyworks and BAW they markets the capabilities, to new strategic a and of its customers moving gallium Ceramics the infrastructure XG complex to support drive

up example, massive antenna beam MIMO with per utilizing and multiple Xx deliver RF gigabit to to systems content new speeds. steering station, increases base For channels

company a high continues diversification numbered set customer our and focused to now As markets, while we on in thousands. driving remain across value is expand

verticals, BMW, like new and automotive wins Audi Rockwell. are Siemens, leaders with enabling Honeywell, we including Phillips addition, industrial along In GE, with Continental, momentum in players and gaining

along by across opportunities win IoT and So premium business our XG. set in flow. capabilities summary, pipeline with market our smartphone IP and the and design growth. yields predictable the with Skyworks these has of of with technology model strategic strategic to positions and strength investments, expanding cash into Differentiated that of solutions and system The entirely our focused of sustainable burgeoning providers, unmatched profitability a new portfolio, leading scale, levels us convert performance, with partnerships and integration customers multiple well experience coupled generations product strong a finally enabled

our a as as over for performance QX. outlook call will our With well to that, year for I of turn fiscal Kris QX and discussion the

Kris Sennesael

sequential revenue in million for strongest the million, revenue quarter, and rates $XXX one above outlook both growth X% sequentially. quarter June the midpoint Skyworks. and Huawei, fiscal we September increased XXXX was for up XX% our Skyworks' sequentially fourth from the represents $X August. Liam. the of excluding Thanks of the When the revenue in of This provided

a in line XX.X% June of the resulting Operating gross with $XXX in expenses margin and Gross expectations. the through flatish $XXX profit million, fourth quarter million, were quarters. in was March

certain down fiscal Going forward, reductions operating the quarter. expenses cost during implemented will fourth we as come

We million translating into basis diluted effective X.X%, XX%, margin Other up was was net per sequentially. generated of of of $XXX earnings and income, tax $XXX income points rate income $X QX. or our share, of driving an fiscal from million XX% XXX operating up $X.XX million operating

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

We of As this XX.X%. Operating income generated was fourth review is quarter gross billion, $X.X the XXXX, billion with of our revenue of billion. resulting in margin $X.X annual $X.X let’s results. profit also a of fiscal gross

XX.X%. an have of margin operating We

XX%. effective free to year from $X.X was of $XXX cash billion, of net was CapEx rate up Full X.X% cash flow from our earnings $X.XX $X.X target a with tax billion income in share. year, flow into close Cash last billion, and $X strong and was flow translating diluted margin operations X.X% per free million, resulting of at

the as $XXX free shares investments ‘XX ended dividend flow, million XXX% billion $X no $XXX repurchased fiscal returned of million throughout cash year. of year $XXX the fiscal with share we and just our and X.X to of we million We fiscal XXXX, million cash with shareholders We buybacks payments, under in in have and debt.

diverse are Now, for a growth XG solid growth of set markets, into on QX The solutions, and of mobile accelerated gains initial driving across let's to launch the matched with in our quarter. move outlook December XXXX. of fiscal high-performance traction

the X.X% $XXX at range. representing revenue be between the first growth of of we XXXX For to midpoint quarter of fiscal million sequential $XXX and million, anticipate the

gross million year $XXX which expect expenses approximately our and XX% as we We manage operating to last of operating at below expense continue $X QX margin is level. million, approximately of

Below the anticipate rate X%. line other and $X.X roughly tax million of a income in we

$XXX further per share deliver We these $X.XX. at share count shares. ranges, to the we midpoint earnings Accordingly reduce diluted diluted to to of approximately million our intend expect of

turn I'll call the back over Liam. that, With to

Liam Griffin

Chris. to consistently continues while cash solid Thanks Skyworks flow. strong generating deliver profitability,

next at of leading market solutions the connectivity. in our cycle ahead, Looking are major the forefront

prior XG XG as by and we transformational will not have unit, a technology impact, seen see markets economy in that paced were yet largely we upgrades disrupt, the comprehended smartphone or XG unlike However, our which that fuel and a connected today.

to culture relationships, the scale, financial We deep shareholder success, to addressed this driven this inflection, positioning and at with very executing global of succeed by a while opportunity of value. important technology team, proven us strategic talented ensure a investments stage discipline customer

open remarks. line the for That prepared concludes our lets questions. Operator,

Operator

Karl Ackerman [Operator comes from Instructions]. a And question first Cowen. from line of your

is open. Your line

Karl Ackerman

I question. a moment. good gentlemen. on afternoon me for focus ask Thanks XG a letting for to Hey, want

content that are immediately million ramp up. got I more for your duration be and the that So on XG follow or of the the is about XG year. over would phones for how to XXX anticipate devices; some have realized next of uplift regard should XG. you your Should alluded not to XG I thinking whether geography with and you've XX% from peers we to opportunity least at have appreciate recognized that or initial a

Liam Griffin

the course of and could multiple specific depending on going that markets, timing multiple to XG be different well is and Sure, geography the of impact customers the OEM.

content, players, with are that production have we and really engaged have that we The opportunity are of in out leading now. We gain rolling we reach continues significant are our XXX% a all really now. to some the expand to portfolio customers significant

they're have some big going next launching also customers, really to We year. be

demonstrating XG great challenging for job but with what tell our and are in consumer, our in are doing. is the technology is customers, that's the calls. the work powerful and there systems incredibly of you we the discussed work, shape, OEM get So hard I kind do the that capabilities right we prior to for and we make their the deliver to we're will very and that implementation in

Karl Ackerman

being appreciate I can the infrastructure, or higher is the a design Do Thank event XG. for more ramp of On Xx see wins you. that. and MIMO you reference half something content in XXXX? nearly that inflection XXXX of the than XG some that massive back revenue you

Liam Griffin

great Yeah, no that's a question.

has So are been of some roll, handset but great seeing behind we still a to schedule, the ready infrastructure infrastructure be bit with adoption bit players they'll a and so slower. is little side little the XG

margin, technologies as to use filtering technologies, other market, well complex expertise. a including to going gallium and as lot significant be that, progress On also measured you ceramic at great some per base in station, made to are Ericsson. that rich, opportunities very antenna specifically $XX Nokia’s $XX Nokia looking the and that got with platforms pivotal We've we’ve unique we of technologies arsenide We're are content, to high arrays that and opportunity. high know bring they some our with

hand adjacent So we great to that we side see what in do have will a phone. work the in mobile infrastructure the

Operator

of comes next of Lynch. from a Your question from line America Arya Bank Merrill Vivek

is line open. Your

Vivek Arya

you wider question where is large coming that one, past my much the to address the to did are for you which probably for wise you'll over OpEx as really had Thanks one but you my how mentioned question. overall, addressing you I taking customers in right positioned customer, sizing is I a wider right my much of and comes products. from a size? OpEx come range market? the know you XG to some of XG it a Liam And and opportunity, when think in first areas CapEx we need range quarter, imagine the just

So how CapEx cycle? OpEx into are going XG you the managing and

Liam Griffin

great Sure, question.

to of that’s the resources the and to higher XG XG devices some reductions start, in legacy OpEx like you end so XG, one moving and more were platforms, SkyX know and part it. of around R&D rollout, just So products

Acoustic the that are do TC-SAW things range Wave in deliver build portfolio. of products, base filter is across very you mention outsource. We with capabilities our you we at to our one our also CapEx, know customers of addressing wide Also We you right rarely all it Skyworks do inside products and to a and in market we house; incredible We it working house. Bulk craft know that technology. when the and technology TC-SAW customize we the have

peers. could by So have filters we very and to buy business than open customize some we that they market, the our and a is are different work These investments. CapEx we a strategic in customer actually craft model technology are customer implement. dynamic, that the that It’s business not of filters

Vivek Arya

that Got it. And for my margins, would mentioned follow-up, think I it gross be you on approximately XX%. Kris

trajectory then I'm how tends to seasonally mix into of is So just about gross you down and March, just that's kind them, should be curious, quarter? know think it margins driving the which lower, we of slightly perhaps to a flat getting

Kris Sennesael

Vivek. yeah Yeah,

at I'm the all, pleased September first in XX.X. margin gross performance So quarter our with of

to second ban serious think of You some a and which serious products into also with Huawei, largest very had managed for was we take export headwind I on in-house, customer most manufactured account were actually have headwinds the that company those it so the was our well. us, but that

guiding are have the some there business. we still December, issues XX% we with so So Huawei for approximately lingering

we target our of as seeing is by will gross products, of you that half fueled And March [growth] then way improvements the in will and sequential to multiple normal to go market the back our integrated of start well margin course, into through highly a growth all as get XX%. ahead seasonality, when then XXXX, June our [ph] look as we second we complex, growth, business, but XG new, up

Operator

the from And Ambrish question your comes next BMO. from Srivastava of line

open. is line Your

Jamison Crone

Hi Ambrish. for is this Jamison calling guys,

was and value, little that revenue about in market and I talk front Qualcomm guys Karl’s could in billion about you share imply and would more assuming half about the content in So talked $X.X has XXXX are million XXXX. to about that XX bit commentary. backing of maybe you XG you get XXX piggy you able end guys on hoping XG in for talked smartphone percent a about possible $XX XG

mix was segment in expect about to and could and mix if revenue and XXXX Thank wondering do of the So land quarter guys I and you you in talk your revenues where you. beyond? XG mobile this percentage

Liam Griffin

mix Yeah, – to we guide that don't but going tell forefront. we you the at XG, not I to we're will are

without and with tell about to industry, of coming, and the have Everyone’s a this lot this love with it prepared to units table. play, every to of the going really configurations we come in inflection to what it's market complexity have of handicap that a a but we As there's it's we is our tools difficult stated will company opportunity customer. and together that is, different for you, a great the I at remarks, we forefront the we’re many units, question how the there's flexibility lot on but put

also me or know say you we agnostic And basically let that band are base agnostic. technology

platform. with We base a will sell with MediaTek Qualcomm band; work we’ll the

we with with Samsung work if content LSI conditions and We have have technology. work there. tools the We’ll with incredible we’ll and change Huawei HiSilicon, so

for We've years. been in this investing

how it’s know XG, through when we XG, talk it of You opportunity decades is great technology, real. but it’s about We've been XG, XG. hard a We in know

haven't enterprise, we're see So be level revenue be smartphone. and yet. some increasing will new just of smartphone, that be will to IoT, it It automation be will not incredible going and it'll avenues explored it factory XG we even an in

right there's made So lot and a and We’ve capacity business technologies the in coming positioned ready the to and is we’re for growth. go. investments great

Jamison Crone

on your the theirs. could you. was for company given for Thank thoughts maybe where handsets terms with and market touch your for I liability plan Qualcomm of you revenue Any wave solutions, wondering just be And is will on appreciated? for my if Thanks. in follow-up millimeter

Liam Griffin

well some Sure, with It blocks wave millimeter has performance. know is, some compelling right. sure. is attributes it – interesting around offer does an Yeah, you technical it challenge pretty speed can The and road though technology.

is sub for technologies pretty ready is XG and pretty the not to our rich opportunity line what the to to where and steering this. limitations partners seeing often sight implement in very there’s of some we're of limitations; cost rich. engage gigahertz, beam now right to that need have you some and some know handset You just X complex are technology, There's market is some it

So a adoption on millimeter or deal industry of the There and campuses now a to not. but place great for for you possibility where know opportunity college this take in cusp events, wave I there's think capacity the of still role sporting of kind play high be right an could whether environments, density. that, it's will a there's

mentioned Kelly do the Meanwhile, we’re technology; with the of in work you filtering. hedging our best; Marcin as know internally a I we're our investing lot we

road going as wave, the know our we looks So take we to millimeter in time like be player we're but to a progress. map

Operator

question from Blayne the comes Barclays. of Curtis line Your from next

Your is line open.

Blayne Curtis

just to Hey get I to for question. XG guys, back my timing. wanted thanks the

I'm Qorvo more you know direction Qualcomm time. but the March of curious, comments comments March the to seen and kind because of know the be as the You've March, bit just will a is and and an I’m want up-tick the helpful. kind don't guide you you, with little Any then infrastructure that taking just would talk a see about curious able as some year even as I on put pace there be quarter. of of of you early up-tick rest to the

Liam Griffin

peer going be the Sure. really should what no Yeah, to difference mean group right. between there I the are on units be,

that. all can handicap we So

I what industry, gain think of opportunity of Blayne the and issue can we kind do, point and content how execute this this do that's for kind at what more in is we us. we the

of that done delivering couple across Wave. But and PAD We're we’ve Bulk company look board, love incredible uplifted in enhancements are them. If out solutions which and capability year-over-year, a at with Acoustic the ultra-high the very our technology we’ve already is So the band band also our great. and compelling DRx things: customers rounding low TC-SAW now right you

customers to late of maybe a really talked that. into and there's about inflection high of later stuff opportunity we’ll about tail that then really XG XXXX bit but significant We're lot talking accounts that a and to that, see moving have band we're also on infrastructure the ’XX, multi incredible and about, that enterprise, penetrate into machine-to-machine then little cool talked a and you we and with mid further on automotive, applications; an really some we markets; just to start

that But have meantime, the in are quite is the feeling on all for and table, while named all companies been and that we really you the about this we deeply engaged where moving. are good and OEMs the a

Blayne Curtis

color the markets between growth. maybe you terms and Kris, September mobile just give December of any just in for any segments those in the into Thanks us broad if then perspective and can for mixed-stream and

Kris Sennesael

Yeah, absolutely.

a you So revenue its related business. was Huawei have was revenue, of sequential that September broad billion $X.X into the total also in account basis, quarter rate. in slightly but in so growth above that run This approximately annualized take running well on now XX% we markets have to down market

If I exclude well as as mid-single it sequentially, actually digits. Huawei, in up was year-over-year the

So with we growth our as adoption, the pleased have the very opportunity markets, mobile audio play drivers in in the as some Wi-Fi that beyond performance well. phone, as well multiple our traction XG as good X there,

Liam Griffin

Yeah add other here. me Blayne, interesting couple a let of points

to I addition been the In broad we've focused of customer right what on acquisition. call cost run kind in opportunities – really markets,

Going design that new other progress with we out account design Continental, there some wins we with Siemen, and and the our Honeywell, can't that made can populate have are Ford, about design some great that now we technology finding account wins wins yet cusp. with on we Rockwell, good with really talk

significant go our work. a family, need it's technology happy for been a broad the wireless these right, and haven't great we to So just to haven't markets to diversified been Skyworks but in these also do with capture XG in with a run companies engine, to customers us really chance we're selling the And inflection way, the of for part because guys. the to that ability

on a market happening really So there's other in go. table year cool two things weren't or broad some the that

Operator

from next FBR. of question a line Ellis comes your Riley B. Craig And from

open. is line Your

Craig Ellis

of prepared guys. follow-up taking Liam, XG and thanks some question wanted in congratulations on Yeah, commentary, for the both performance and with the to Q&A. I the

back a a if we So XG, has BAW. I now grower at mid-teens integrated was company be filter year-on-year its that could and XG business portfolio think the mobile look with expanded consistently with

interface had you've and got before never filter transition in our internal we've to it got that top You've supply, bottom.

not look line growth? you the like that you're to potentially is, your mid-teens question gaining return across to at for do the of but feel only as my sight to OEMs, that growth, engagements return you different double So to segment year-on-year digit exist

Liam Griffin

about and Yeah, and up with deal. I not very big think could and some honing want as that you right gone our opportunity are the the deals, outside working the indications go. performing have engine, now points facility know, have the that we very, you strong like at do it's powerful, big with a that’s been a with just customers we've of complexity We to way we is lower way to made is the the

now. complexity a there's right of So lot

customer our a into engagement always with us. too. accounts, but into There's are coming reaching We're they us

difficult it transition to a incredible has it's but benefit. make technically, So

great visits the customers on wins, on so lot discussions, confidence. and of that in saw lots lot leading most a our of of in quarter, really sites working the we And to tires action to customers last design lots our go walking some in things away with are kick and action a from we the of of

significant So – be a This that’s very right. shift going we the to that we than a more markets mobile to a inflection. play going think here, technology in disrupt all is this this is is

is second then and wave there's kind into evolve, a of So some mobile but stuff tail just customers, to etcetera, of opportunity. on, long start see where going more classic that IoT, more and great there customers I we'll enterprise, think

bands BAW. band in exceptional with activity feel we for from base work all X has a win Phase also higher sampling six X, MediaTek about in XG; good shifting really work launching accelerated, to the Phase it. OEMs, whole position now I it’s set the a across with last really done design that some the so example, strong activity of feel partners. So good which or a some with months frequency is transitioning We've

for time a Skyworks compelling to So now execute. it’s right

It's and our We win. are there customers out getting opportunity constrained. about not helping

Craig Ellis

just on the break XX% wanted do the I that current towards to Kris, your next down comments is target help That's really could model. levels move is are. the What from wanted and that to what margins helpful. for get specific follow-up up I drivers the on question identifying you gross and

help how that loss we So coming Huawei significantly of can XX% us just kind and to all first volume then you more to up and to making understand XX%. XX%. back XX% Is from just the get think be for I going from of getting

just how you much mix understand markets, we from us from that some give etcetera, would help portfolio help XG, If Thank helped shift of integrated is could on get broad mobile clarity Avnera, to XX%. the XG to how it within us you.

Kris Sennesael

Yes, that’s headwinds a was good question of in XX% the question headwind. there, the and so disappears course that’s about and is the so of revenue and definitely revenue I’ve or a previous almost running answered Huawei that percent some total Huawei of on

do all that we that and that and customers, three product nevertheless, But their drive there type important time, margins. integrated are develop a user experience to and high And as major the is XX% leadership to great and that and made I most a continue forward above help the margins blocks added improvement improve better our demonstrate highly opportunity first the our think complex, our able keep technology one, the been we the value to products looking the to better. made is have of margin result of one to XG

tailwind and cost of a structure last then will and bit of work factories suppliers in addition we yes drive not course out to the there a our little cost of in least, and terms Of but continue in operational and that, is with course all of mix. down that, to our

has faster a get a been Our higher gross mobile as there and broad margin growing broad bit and so to little business, that than mobile tailwind we market margin well. our of continue has and business be business will growing our

Liam Griffin

one I to that will and thing add comment. Yeah

I margins XG are if types of deployed, think of and to are be the being unique and complexity going higher. engines there that that look XG at the systems you and the

players be need that in successful. the industry that there's our level the think I to can going to to execute fewer be customers

growth of the just run. the that's you've to XG to where a case way that think that’s to is the I power the going got it’s that and going better inflection and connection So providing translate value margins,

it there's and roll-out factories to Now XG rules margin know going going with of is for should we but to as working for us be within the level us, concentration get meaningful make our there. be, you a higher even easier of there

Operator

line And your the next from question Morgan of Craig Hettenbach comes from Stanley.

open. Your line is

Craig Hettenbach

Yes thanks.

Liam, follow-up on just to the activity. BAW First question

You And just you in receive kind you into pad at of that things the diversity see mostly think that. how it know ultra-high this you’ve point? about band layering mentioned like then and future and

Liam Griffin

Sure now frequency, today path band our that's band shipping have ultra-high volume devices. we Craig. device are Craig, we Yeah, on actually, at looking so high includes gig BAW in right so X.X been and high that running about high at

test our know what and with customers bulk strategic come We we’ve of customers metal than XX are you and across sampling like they wave and more acoustic our technology a they set broad spectrum, see. had frequencies and

acoustic and receive, maybe be continue we’ll be are diversity transmit equipped wave, areas use technology and So will some that best areas filtering use we advancing for in it to category, some the the in to application. We’ll TC-SAW going maybe bulk will continue in chain. and it that’s we’ll

having every ability one and customization our just create of So important to for again, unique each the for accounts that us. is

So from we’ve turns XXXX. as side made the here, further those investments, us into should get we and BAW expect as the you from year more

Craig Hettenbach

for then you historic. and about it, have it, follow-up inventory the higher guys talk than the is just Kris. kind a Got of insource as you filters, know I

weaker that thinking soul seasonally an about quarter. Yeah easily just typically managing the from into are quarter. what's march You are okay compatible March weaker this you how we know infantry with where

Kris Sennesael

four on to days I XXX, years comfortable forward, and that Actually so the again, filter XXX where quarter, to level. inventory manufacturing. to a we days the couple to an to looking expected going inventory between the but feel driven XXX higher with is Yeah, than and our days is days, rate down come from is to mainly split ago, by in came days XXX are December inventory down continue

also now having is the We the capacity that the TC-SAW major and Wave our get inventories and continue Acoustic capacity to make Bulk days. XXX to driving not operation filter so to investments to expand in but into XXX only

Operator

next comes from your James. Chris of And line from Raymond Caso question a

is open. line Your

Chris Caso

expect Yes, you but restrictions sold first question products majority your the signal. you you was side. yet some thank an where commentary going getting that demand quarter point you, is of that that were infrastructure now, is handset I speaking and the you update Huawei products, you to come to on at and know Huawei think the the the in forward, much and stands handset Huawei give now, in the the do on right guidance weren’t Could on how to last back

Kris Sennesael

so Yes, the in-line revenue – with million revenue that's came in it and in. that's expectations, approximately $XX played we of it out expected what Huawei the our quarter to exactly what September

continue run ban might it So little work, and will believe looking this will we that that lot be Huawei a of for evolve. maybe picking situation the up approximately depend with bit, a Huawei level, but export to at will on that whole

Liam Griffin

two said in things just the change, compliance in ago. mean not is this Chris number about was really quarter. about with $XX or It's it's if the us, customer. the They the being be loss back and right as Over with share about we compliance in our Kris I ban. long million for being number saddle Yeah, for were export time this could customer not gain,

really end technology U.S. things to or be if about I alter. staying this ready not about market point, compliance and it's it's So law we’ll change, share, on with at our

Chris Caso

would to been as fall trade guess content, be some Chinese on into investor know Alright, tensions the other as backsliding U.S. you a concerns out customers even perhaps follow I a there that, on perhaps some follow-up, and solutions. less discrete reliant seek around where up has over,

what point to you've telling that, where talk a XG this you you are discrete complexity, you can or a as solution U.S. there like and develop the go away uses in at feasible Could is solutions. from content the even higher is would any customers and to and perhaps customers you that evidence that phone XG got work know move into you that

Liam Griffin

go I your the end to second -- the start of part I'll Yeah, get question. front so then and I’ll

deliver that do, think that know, the do without I XG make Skyworks that, think U.S. of in technology to so played and that and technology. So at some device, compelling some and have very a of things a great It’s difficult this it's of I I peers, companies is we in needed think had believe the you one. difficult I area I kind here vital it that's other really to role we our

of but the on and situation. look at side trade is, going you and outside There Huawei Oppo, strong Skyworks. is get Xiaomi, launches at with a China, very Huawei it, you is are our other lot we here look situation there’s know in XG issues you Vivo very if Huawei and a the But right business strong, now

had some baseband where initial over. some and that’s a were there that we turning launches provider there win, There but in content in we there were didn’t

within So and China. tremendous call what momentum Vivo, the Oppo, we Xiaomi see side we OVX side the

Kris noted Huawei with like said, if We’ve back, as to on comes and I continues that revenue got back. conservative, on else go everybody to going Huawei. now and number we’re it that playing we’re will So focus a come that’s down

Operator

the question from from next Charter Equity. Edward Your Snyder comes line of

is line open. Your

Edward Snyder

a just obviously could, base Sub-X to of there’s lot. been all different said based Liam, Qualcomm if a for it something They on band all. band I their virtually stuff. comments solutions something devices. antenna like Thanks ultra-high XXX flagship going and lots is take

next threats the for out that, comments on competitive importantly, now it and normally you content. more $X from opening a while ultra-high that looks your bands. want seeing about XX the now device, for the beams what up make probably the each are Leaving the that aside What’s but year, for content on Mobile in architectures on in like coming China but to any including you’re are

are Are you been more this in year competition? much than getting these you Then traditional seeing extra share, next to expected, which high or has this? capture in I the because a or that do expect you rise for your including so have you’re And follow-up. faster bands relatively spot

Liam Griffin

a no of insights question, to Yes, that. a that’s great Ed; lot

great some seeing great. that’s the on continue there real is to good UHP some that, you’ve so you X.X right working around are we pad, out what action expand opportunity and So got to X.X, know

other with a looking also other OEMs. at of solutions We’re customers our China number and

when across and us and well. on you work really incredible about opportunities lot and platform catalyst days this DRx these some MediaTek good guys major there’re Phase We’ve with a And new roll SkyX, position if in X. UHP our your start X, to MediaTek compelling. We’ve we have really into to a the done platform Phase nice of that. got that for to technologies is and other we’ve position then technology, really area you is the back MediaTek we know got XG had But

X. a We MediaTek $X looking handle that Phase attach $X here could in at shifts be on or

So about we’re excited that.

the not know Vivo, meantime you we’ll it’s it. continuing the provider, baseband LSI, we’ll we’re Oppo, do whoever or may the it; if MediaTek, its be, to it’s it Samsung work Qualcomm, Despite with work if MediaTek Xiaomi. work In if

the would So there’s it transition of a lot MediaTek the action say compelling quite going of to it’s hasn’t for but really strong, there, a be yet, half second driver. and be will year happened I on that going it the headed but is

Edward Snyder

last really it like XG the you And path, love then, first it, other but question looked all – Phase second safety gets sections and accelerate took over basically. for out. deployment most MediaTek guys both of in I’m the main sounds X of the He the it the mean toe full their and X that sake, you they to of Phase sooner up. Phase the their to were OEMs was year to my like in Chinese took now core before place and module I the X glad like design, brought we

coming of a upside in modules. quarter, of not on these some that phones saw number content number more of certainly the but We XG only the reports are in out big that high using

or the nearly that going now what’s that? to stepped them and architecture tune the say feeling back it’s of to design are where kind in when to last for all the path going of just most just that, and you you are back, other this taking but outside guys, some in transition the here bit we fall, of OEMs we packet, I all on you see and areas a with be guys as to year know the it’s safety share comfortable getting volumes gain were else outside Qorvo then of that that of your some the for a path, and main expect because little content new this bifurcation that for on you of your everything taking saw back You bifurcated the DRx main and

Liam Griffin

Yes, I think a – of well, got captured. I that think lot you’ve

of it’s we specifically share in going phones, certainly definitely but we that devices You get have new think the and the We’d to complexity and right? an all increased like in these the deontic lion’s to and opportunity get not will, increased you business. Phase opportunity are are an X the see I

maybe we’re see the low the takes and and we’re the out to band so it, starting some the addition that PAD in best that that, band. execute go and the you move high there It but up to traditional tell will mid in brightest and you seeing I stuff to DRx, of

a and could really mid content. up band potency for for meaningful which to high with pads, be us opportunity high starting move We’re

UHP You not continuing to some with mentioned, but talked that’s the accounts. about gain with other we just MediaTek,

of said, aggregation, see. just devices, devices, of we of and going widened of the carrier number number aperture’s complexity, to terms game is themes what challenge bit, to be the the but changer the So a exactly XG efficiency in required the to common want a the consumption one drive here it’s power you and like that’s these hand-offs

We good great it’s lead So for industry really this stuff market, the in opportunity some hope there. to there’s but out a as well.

Operator

Peterson line Morgan. comes Bill question the last And of J.P. from our from

is line Your open.

Bill Peterson

me back markets business I then I level around for quarter? growth I Do the some follow-up questions fiscal as I is can in off the never turn to and guess digit know opportunities. anticipate at Thanks in. year? win should we have a the you running talked I think of is to Wi-Fi you fiscal question. think and first pipeline, in Blayne’s you low this about sneaking that X of broad hi. about mean, other as kind Huawei your growth design guess some that year based Yes, about about and we sequential double December and think the a growth How

Kris Sennesael

we expect in the markets, that, be a quarter markets we we’ve the seasonality normal drivers of down could believe Yes, fiscal it to on that is back fiscal that quarter saw in basis, ‘XX do talked said something year all December so year-over-year full in We Having saw December similar given double-digit ‘XX, that ‘XX, X% seasonality. that normal just the fiscal for yes, broad we to broad about, XX%. and growth.

Liam Griffin

you’re if we’re we The to recall, and looking look you markets. pretty nicely, that at declines proxy most And felt invest but pretty in to our double-digit for of into going the and continue behaved grew semis business, well XXXX. within drive at for broad XXXX, markets those they

Bill Peterson

How assume bringing to you thanks Are quarter? well? just should line we guess as down fiscal somewhat to Should December here kind trajectory Okay, revenues that And it we X%, year? lastly expect the housekeeping. just think we the growth? guess year and year-on-year color. a as tax for I that in rate, to throughout And in about continue OpEx grow then the your I of return grow so maybe for that

Kris Sennesael

we’re the investments the markets, technology, the disciplined, markets. Yes, not going hesitate at and the make broad remain on business necessary same but we’re time broad those XG, going to fuel growth OpEx investments of of to the in to to support make necessary

full right will about on so the tax believe time we or world-class over rate, year modest on you running we increases basis will a then manage XX% on X% see continue which now, in or do number. And some good about OpEx. to and a ‘XX or yes, on revenue the in is fiscal it. I here is So It’s know to

Operator

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

Liam Griffin

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

Operator

This call. concludes today's conference

disconnect. now may You

Skyworks Solutions (SWKS) 12 Nov 192019 Q4 Earnings call transcript