Skyworks Solutions (SWKS) 30 Apr 212021 Q2 Earnings call transcript

Company Profile

Participants

Mitch Haws	Investor Relations
Liam Griffin	President & Chief Executive Officer
Kris Sennesael	Chief Financial Officer
Karl Ackerman	Cowen & Company
Blayne Curtis	Barclays
Chris Caso	Raymond James
Gary Mobley	Wells Fargo Securities
Ambrish Srivastava	BMO Capital Markets
Timothy Arcuri	UBS
Harsh Kumar	Piper Sandler
Craig Hettenbach	Morgan Stanley
Kevin Cassidy	Rosenblatt
Harrison Barrett	Arete Research
Raji Gill	Needham & Company

Call transcript

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Operator

Good afternoon, and welcome to Skyworks Solutions Second Quarter Fiscal Year 2021 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 conference everyone, Skyworks' fiscal second 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

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

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

Liam Griffin

everyone. margins Mitch, per Skyworks revenue, in delivered welcome quarter QX. year-over-year growth record another and Thanks, and with earnings for share strong

reach and Labs, to accelerate our leverage spanning broad momentum and We continue demand mobile both of business the expansive markets to engagements, customer and the of infrastructure acquisition connectivity. our And deep planned for we exploding with expect automotive Silicon capture to that technology further.

in Here revenue of We year. QX highlights quarter. are $X.XX few above delivered the last billion, XX% of percent

year. a generated increase strong of posted of million, leverage. the $XXX last year-over-year representing share portfolio period XX% earnings a and revenue of markets record over broad demonstrating QX We $X.XX, record per operating Our same XX% new for growth

for quarterly flow, cash operating the in new million $XXX drove company. we record Importantly, a

and factors. interactions efficiency online education, latency set a cases growing remote speed, power on of billions communication, cognitive never for autonomous of virtual has Looking ahead, spanning transport. smaller These bar comparable rely the been and requirements in radical commerce, machine-to-machine advances reliability form work, move upgrades from and audio, used with daily touchless higher technology as

two innovative Further to nearly strong with opportunity, and in squarely scale. flexible fund and decades proven investing in global positioning For for our on our generation cash us transition. model to our prepared ability capital secular the complex capital this fabs human technology, infrastructure technologies, investments deep manufacturing, of and the Skyworks is fortifies has our manufacturing demands Notably, aligned customers.

allowed we space, WiFi win of mid-tier Our Oppo, we and execution. at design Google drive security Microsoft expanded diverse operational solutions and customers, Vivo, we SkyX Sony. XE demonstrated reach delivered our Nest, In strong wireless other of cognitive expertise OEMs. we at and launches Netgear wins and gateways powering Deutsche of to us quarter smartphone design In gaming secured across headsets deploy Samsung, IoT leading partnered Nokia another mobile, X wins Xiaomi routers, the to Altice, specifically ship Telekom, with across the a latency and portfolio yet premium XG audio and launch low capture WiFi systems with home to Xfinity, X at set

our leveraged delivered driver space; and platforms Ericsson. we base assist with with LG and industrial deploy stations IoT we in Nokia and modules finally QuickTal in portfolio Volkswagen, we wireless the GM Gemalto, to to infrastructure OnStar. and Telematics automotive, to and ramped Moving MIMO And

a WiFi, including fueling robotics. GPS. new Skyworks and to smart of of interconnected to shift to billion other is XX cities Bluetooth extends we unique multi-year aperture ecosystems a industrial not Moving forward, an integrating support autonomous precision smartphones, evolution XG to from Today and we global high automotive IoT see spunning technologically that devices. a network technology from with set but capabilities; with protocols dramatic our widening this our - transport devices expanding over only performance class critical

to years, experience cash technology flow of that, strong XX pipeline win to outlook providing solutions established and our and transitions, workforce, positioned shareholders. while for Kris With for an discussion QX funds technically I well seasoned market-leading a is Skyworks call across deep that our will of QX. talented a efficient Finally returns multiple engine over turn over relationships to with the and customer

Kris Sennesael

by a a million, the million the into improvement XX% up profit revenue basis operating net and an Thanks, of XX% income driven of QX of margin in Liam when XX.X% of quarter on in on margin record gross points year-over-year an Other Execution as Skyworks the of year-over-year. QX content a last of or record of including QX to our of revenue strong another XXXX. reflects as billion, infrastructure, gross solutions. XG adoption our million; solutions along in XX positive quarter points grew XX% broad as such QX for drove in both, $X.XXX benefiting revenue year, operating of $X.XX growth financial or We and million $X XX.X%. audio X results further well generated income technologies the effective an Gross compared was posted market increases record share $XXX revenue basis continued in XG over all-time markets QX this from ramping of of used cases, XE, delivering Operating our revenue Total and wireless and XG of by demand momentum million spending operating of discipline phones to of $XXX tax grew $X.XX exceeding income per our last demonstrating rate was $XXX Broad widespread WiFi net a XXX set adoption automotive of resulting growth. fiscal strategic strong resulting year-over-year, diluted continuing income XX% with margin revenue and expenses the largely to XX.X%, OEMs midpoint earnings our drive while Mobile QX worldwide. as XX.X%, million over smartphone margins, of increase grew beating business. was translating $XXX based diverse across of year. guidance. are guidance investments were XX.X% early of $XXX

Turning to the sheet flow. cash balance and

XX%. were quarterly for free a strong Skyworks. a into was flow record Capital $XX Second cash million we we share fiscal recently resulting given the cash translating of infrastructure of of million, announced quarter, $XXX flow $XXX and flow our quarter program. acquisition which expenditures $XXX record free cash margin million from and to close million dividends, a in in We suspended of operations expect Labs, the the repurchase paid automotive September business have temporarily Silicon in

year-over-year for June quarter. solutions broad momentum and in on in outlook Now, for let's connectivity QX robust markets, move growth demand the of XXXX. mobile expect to continued and on our Based fiscal we

of the between to in quarter we revenue XXXX, billion. and fiscal Specifically, $X.XXX anticipate be third $X.XXX billion

range; revenue Gross share translates non-GAAP growth into XX.XX%. projected the at be growth non-GAAP per diluted have diluted XX%. XX.XX% revenue the the and to of the midpoint year-over-year earnings of We of earnings of midpoint of $X.XX XX% at year-over-year margin revenue in to per share this our of range, is range

and We income to million. million between roughly we $XXX anticipate line of the tax XX.X%. million expect expenses Below $XXX operating approximately rate other and be $X.X a in

back that, million to be Liam. diluted I'll We to the shares. with And $XXX over count share expect, turn call approximately our

Liam Griffin

record remarks. Further Industrial, business our accelerate fits priorities. the as deliver Mobile, profitability scale the our flow. open strategic solidifying Automotive, Thanks, connected parallel results of Kris. of is track address acquisition in global with INA technologies cash That the Operator experience to we increasingly To Enterprise breadth revenue and demonstrating reach the In industry operational to and and other pending can of drive is leadership, application. diversification the an leading line on questions. we powering landscape Skyworks and squarely impactful emerging value prepared and XXXX our for technology applications. Skyworks our clearly expand its concludes broader vast fiscal customers market

Operator

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

open. is line Your

Karl Ackerman

your opportunity spoke new concluded of I bad have RF areas you, If is chain content who good supply the with result, certain wins modem, the for I a RF integrated them peers you one your could, some and last report Thank as perhaps what's chain. supply terms in think in evening about investors gentlemen. of for Android across its of

in conviction could hoping would I Thank so that mobile think discussing helpful you. gains your, the quarter? the across know we specific the was market probably be OEM your content as you you're And RF about limited June growth I beyond discuss in wins, but trajectory

Liam Griffin

double-digit Well, Good you bullish portfolio; Sure. we question. about in see can compares we substantial and the RF just are across our that returns in elements very, outlook strong, very and very results our reported a space. the other

This a provide not that brings new. and a devices, see solution rich and really core our have of forward; to fill we turnkey the having we've filtering, going system the have our the put gallium acoustic for an in, integrated bulk we these set been We're other to and that up is componentry with a we that of for in that incredible doing XG years. We start customers leveraging have X is to outlook new the we XG aperture elements expanding arsenide complexities pick continue is and Sky What this view full solution. solution we're we grow. a wave, in technologies

Skyworks at to As put in we to customers win. our have place

deliver customers and about But with there in ways the really We works. technologies want how look at that that competition if customers good all. that always is there So you the we and it, work it. to recipe we play at a we it's change our no feel have our how consume we

Karl Ackerman

very, result and chain. channels and restocking I sustainability in about in some may, inventory non-distribution that. Appreciate modest spoken If at broad also consumer SMEs although across the, results, is electronics. addressing is strong the strong the supply about room I've some very markets

proactive WiFi lead any be And for double solutions. may and ordering could times [ph] limit discuss measures here could perhaps you your what so, you taking Thank that your you.

Liam Griffin

Sure.

the very a and supply the look pipeline have chain. close We at

course. Of

we're the of one about sure vertically is you integrated. So Skyworks know that I'm things that

our So that factory factory arsenide own we're to product filter of our all in-house. in done test own and gallium we're to from in is packaging customizing building

way a about technologies, then is WiFi design WiFi in that a customers that have the on want because much GPS. there here, there broadening with win are or we're keep others, the X but joined think the that natural demand better and lean stepped the up possible, Bluetooth aperture, we get or it. set that the demand channel, we expanding are, and are Skyworks it's really some is a we we it's so than still mitigate the mitigates to number to try chain our risks it customers end, one, we close very other overall things as the two real there's of as though going substantially the we broad and theme to but diversity The of fare we But constraints should So or that's markets multiple supply that whether chip some seeing team.

a allows there's the technology above looking So we're within of that that there's market gain share put but lot market us to lot broad a and of up category. in to portfolio, to forward results continuing diversity also differentiation

Operator

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

line is Your open.

Blayne Curtis

afternoon up in very March and just Hey, of And if I good one on taking gross my particularly you ask that, wanted after to as a part December, thanks catching I margins. know strong for customer. then question. are

for gross be and are So and drivers obviously is how are on bit kind maybe catching down a June down while to revenues the margin range but the comment up XX it just you XX% June? parts the of of process just of change been if kind what's you there the two in related, in a of in margin,

Liam Griffin

XX Yes as at with well tight a result challenging year-over-year actual a points in chain I somewhat margin basis and you pleased gross despite fiscal XX.X aware. the question, on was all, of Blayne. start I'll up environment, our with QX supply first

and basis year second here in as of guiding start the into do the September slowest slightly December QX quarter of but in usually as for revenue fiscal the is slightly on ramping our XX which year, lower the are QX, at is we as margin XX.X we improvement gross down We expect quarter. half from seasonal do we we further midpoint course of year-over-year up the going the are points

Blayne Curtis

if Thanks. the are just into any as June? customers the how to And first you just question then that of additional part process the catching in color maybe up on

Liam Griffin

as we that where as is really out, no, demand and board is We've very big Yes, meeting is demand mean putting control supply through we've environment this capacity some We us size and across towards you an the been I because well. tight. that But from team strong that coming executing Skyworks third pretty tight was there. the growth we environment. as been done in proactively pointed bit strong buy knew that's our factories, and a a and own well given so we've are have, of year-over-year that we despite stuff lot well XX% moving been a there with cycle that strong little parties we XG have we've well into scale and executing do the we

Operator

Your next the Chris James. from from line question Caso comes of Raymond

line Your open. is

Chris Caso

Yes, thank you.

China regard going Your the suggest your there. describe How the going to seems OEM a that half. into heard half first strong first is question MediaTek what's this guidance is on We earlier could second business, report out business? to week. It's really their some flattening you for

Liam Griffin

we've a Vivo, like China and doing the market overall we off well for and doing whole unique wrap we that baseband and are strong that then again around core obviously a which their Oppo, MediaTek been MediaTek while. for years, quite in baseband provider players Well, we've very ecosystem been with technologies Chris. the and very Sure, very angle, another the is a to working Xiaomi have that important space,

So at the market also as more next but good subscriptions at course platforms of landscape and there's potent brands China. new we again and more It XG of a is or markets between and five more of hitting very the and off well. leading these first side share we getting of one the some and the in drive amount four feel is it powerful, opportunity years populating is XG we now in about with lifted stronger, when gaining tremendous and their and some we populate MediaTek as platform MediaTek it's APAC still look

a Android names the OVX and the portfolio solutions know the years mentioned et So technically those with that the with It's MediaTek relationship. been driven relationship the we've We working them often we company, outstanding. have and is cetera. ecosystem for we out

these we've to the So Chris can to SkyX test thing, in here good them it very and like that can makes packaging got for the our very, market. other on very go grow our develop we easy is that flexible, integrate technologies that fact handle get solution a that own very and really a customers own

the there Skyworks the beyond are in So some unique go strategy of just that Right. parts. elements kind

an So that's solution always like ideal play us MediaTek key for for a been that's and players them.

Chris Caso

you. Thank

some a on couple and but and basis, is getting years, invest it's rate question that the growth the now necessarily you the a for at drive cash you're of do to on lot revenue moderately over kind year-on-year rate you that sufficient than the enough term, OpEx the flow is less up this the follow to that OpEx level and talking see? from of of not growth a As now OpEx guys plan a you're higher right but of sort want obviously up short next the what's substantially

Kris Sennesael

about talking been we've a mean I Chris, that lot. Yes,

continue into down. that We to hesitating rich a want to ecosystem We and not to business in our leader. expand very will and continue are are we we invest our technology reach

are the we of we what do at how side, flip efficient very So and in do. we it course,

a and area that's OpEx down, that's running to total where as at Our revenue it. you and be. are, want swings code, term, but to it somewhat goes that's on XX% seasonal is there year. revenue, good longer during are XX% zip to to the up about There or the revenue, keep like if we Obviously, an look place

Liam Griffin

leverage in just portfolio that the a we mobile portfolio. big to Remember company Yes. broad have and we're that. driving market in to with a our business we dollars And I'll add the that are

that develop very execution teams design focused know much reach. market So our to and an incredible products on how our is have that business

the that we that thesis investing we in technology and we're funded. and to packaging we're we're in to certainly headed R&D fabs, where level forward. the have exactly that's know it needs funding as the platform behind So in just be in houses our investments SkyX We and our really move aggressively there

of as together them pretty on markets that used unit a these because kind potent and curve well. that get all we are really you have our So strong leverage

of off that can is it still So part solution but same derivatives, drive - have to a that spin then really the core. strategy

a element Kris makes own assembly and a own test manufacturing, Skyworks unique our having your but us. that as of said your own and, So having groups, that's under for fab, big difference all multiple

Operator

Your next of Gary question Fargo Securities. comes from line from the Mobley Wells

Your line is open.

Gary Mobley

start Hey out with. taking guys, for thanks to question a At question. multi-part my

pretty now the a to at question are optimistic on fiscal I year, community. in law largest your the the Smartphone point to my service is, extent tied And related able are those that or we're your fourth had to think year you you you're when to to over you're been trying perhaps you revenue started extended to Android view service really the non-iOS of mobile customers you you customer? a in by somewhat that are

Liam Griffin

Yes, you that excellent that's and a the and is question this, putting of great the landscape. we're Android ecosystem in the now strong part really of part numbers tell up right I'll

So we're outcomes some largest technology have we customer. and with here that were great needed still to executing there, with got with, and in aggressive there our no is supply parallel that's there hiccup we're chain demand, doing a path. the We've but the very law,

be list. in top the now to companies customers that the of at work their with winners. challenging be have about, prepared mean really that in So the technology and closely others. and we us going stuff it's fabs for And And about here in the and curve are moving we're to right and that's a talked opportunity multi-year. in remarks talked definitely we And really is getting, invested we invested is great this for that XG a and R&D multiyear their direction, reasons the going have have stuff we I

feel really absolutely So different and mission about good deliver across to all mobility. and the we it's our segments that

Gary Mobley

don't margin, color, been I you for here, broad you mix the that upside markets had And guys as producing have March to think my substantial Liam quarter. the in upside that were pretty higher appreciate particular and is to mix the was follow-up. and guys deliver it a expected And given I able you unit broad of business gross why I mix nitpick results, more of to revenue but not higher markets? my want great so is than question just

Liam Griffin

market the with mix Yes, did guided, broad that mean, million no what in portfolio. so our the was we there. better but I we surprise $XX so full line there came expectations, in across quarter was or revenue somewhat than

So year-over-year there needs points that. was margin that There no are chain up and absorbed there. despite were again, to change despite from supply of all we increased And gross a input challenging be basis XX costs a environment. some

demonstrate improvements. gross We year-over-year continue to margin

Operator

Your of Capital next comes Ambrish Markets. question from the from Srivastava BMO line

Your open. line is

Ambrish Srivastava

Hi. you, Thank Kris.

should expect then cost when and front, input the follow-up that the I have On resulted margin we due COVID a to that? increases after

Kris Sennesael

there mean it's for chain and there supply The are new. the we're in months several now course, so already costs. not again there, I has hard. of tightness Right. is input at This been really working

We team improvements working year. definitely going think scale and some calendar And with we'll well there, the there again have size the is the relationships really at the long-term of and see hard. have we half into suppliers, second our as I

Ambrish Srivastava

the What's going expectations There year for seasonal way could in year supply with versus what that be? a is second for you. year for would chain. respect everything given a question thing us seasonality normal expect describe on should you we terms the such And to half normal Liam, best calendar calendar second half to of the that's but Okay. as no maybe

Kris Sennesael

lot that in is Number to really what you for expect I opportunity that you be to and of a the XG. then really All sure. one, half. customers. there, trend really can't put realized. to there's broad was technologies up very really, the saw absolutely consumed and second a those stepped the The out the of there breadth also Yes, market if still in conference us grow of call customers in early I we incredible breadth opportunity mean we matters show but this the the customers diversity out of

of win So come We And second that in that the and thing. which that's mobility, important a know half. apparent there the we've been the you here half. in strength able the will should lot were what opportunities really difficult won, then be we've in second challenging go to to

and or diversity happening So customers, there diversity of know some on going designs what we're the broad a we of will year, consummated in know all in off strong cover to we've second want now technologies stuff right think while half is that we core couple not be front. the key we then the it's good mobility the and And bring. in to, markets ball the and we we what with that

Operator

the Your next Timothy UBS. comes from of question from Arcuri line

open. Your line is

Timothy Arcuri

you XX% Hi, sense thanks revenue. of a was you down a your it customer in said can largest think this I give March? quarter us of lot. Kris, maybe last was large but quarter, how it was Obviously,

Kris Sennesael

it was customer, of XX% total The largest revenue. approximately

Timothy Arcuri

June can you assumption awesome. then for get XX% that in for typically on in and it's we right And about mix a sort seasonality markets, I guess about there Okay, is assumed that what's the is usually June mix broad broad mean the is vet markets not question I broad but mobile the sequentially to strong of, Thank up really in markets the review. out guidance much.

Kris Sennesael

Also on June, X%. total company we guided down

broad you going down. to is markets when course, to mobile flat flip markets, business. you at of the so mobile the look have be on and slightly broad side, And And

Timothy Arcuri

is Yes. you in XX% number that year-over-year And year-over-year QX. a have

Kris Sennesael

right. All

well than closer really year-over-year business markets, total is continues a to basis. saw more XX% up So XX% on about to to on XX% broad and there or XX% do

Operator

next Kumar line from Sandler. the of comes Harsh question Piper Your from

open. is line Your

Harsh Kumar

you or was particular towards there where you to broad, end of was you a understand that leaning us Could one that did maybe saw I theme mentioned broad any Hey, that broad from. help market? technology strength markets incremental in that it it Yes. where markets. know Sticking guys. come spend

Liam Griffin

say it we a X home prepared automotive picked connected unique But would to diverse has Ericsson as them well. bit, in end XE and I little the harsh. more infrastructure remarks and of was higher Nokia a starting strength Wireless we and Yes, do WiFi, a and consummated. lot quite with up WiFi bit applications mentioned that

was more broad great markets, of been and love we're these our and said companies quarter of Skyworks output once establish we the was the customers not a we call, diversity it I of had the a more that of of more. of doing, it's we can consistently, Skyworks are type and So unique that as beachhead that now really capable some in see growing earlier players, from the a and with customers consistently to customers lot do

So have the names like that for like ready moving heard need in kind today and needs, the we like of industrial Sony OnStar nice the markets. it them. GM we That's or names all and the technology the Microsoft is coming names we and together and it's you into names using have thing

we So, in are case up now to that where the it's the go. is have unique by to large, ready technologies spin something and have we

those So whether it's solutions the XG we're cellular or WiFi, otherwise. deliver able deliver in format in those to solutions

and in we've have we've the continue change the usage some case we that that protocols paramount forward, what every we're we to technology were seen And with business want, of the customers is move do to seen for, a COVID not interested that one we'll the crisis and we have adapt, customers now some to each did or flexible develop in going and be to and ability mobility of deeply, the this of didn't to and best anticipate. have we that in technologies understand think ways their those and applications. can things the connectivity We really where impacts critical that driving and that. and customers I address the own didn't has essential need we we bring our But to become and that as continue that's and

Harsh Kumar

as helpful the call I've do was X% - that very guys a question. consistent the were - and to cadence the to content wanted different increases it How wanted in covered way. mobile I I cycle, entire was range, the by as on you longer-term Since etcetera. of and lot that switch a Liam, for for is XG you XG always is type a to XX% likely lot all to C-Band, going somewhere - case. more ask that a that see number - is likely Is long band, add number on being go - that there brings? a added; the XG? because frequency to basis; that Spectrum, number of number stuff that's creep content on, to up is a is There there is that is yearly

Liam Griffin

Yes, absolutely, it's really necessary.

XG; of think you So elements more even have XG if you the compatibility function if high X of a XG. XG, sometimes meg just and also XXX spectrum; mobile looked a you XG you have backward level, you're about even phone, then somewhere or typically, to extending the at the so at and you still have running and We're XG, XG gig. then between completely,

complexity customers new spectrum so new and is the there delivering challenges, to is from new gig and factories, go X we a higher; assimilate and complete a that that in gig complexity system that's to is our own assembly the to our the can bear, is that there to a XG that drives world, solution. packaging technology, unique comments really having content really that substantially, is what to own and made back the And special. do is the customize full And having about Kris I and to then the our ability technologies fungible be test as brought having to be and assets we X Now up there integrate even need that going gains. in

Operator

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

is line Your open.

Craig Hettenbach

thanks. Yes,

you've supply in to back up catching to business broad know going markets? demand broad kind still pockets been chain to in I that parts Just where catch constrained. there is you trying up Are or of of markets, of for terms you're

Liam Griffin

catch-up design have some we is - a area times that there of is we those of but XX to in there pursuing, but still to set been than that a That Craig. mobile; is what applications have diverse, Broad work supply customers we're market are Sure, broader few in chain. more is great is getting one we're one opportunity a be so specifically done. it's each there bumps

own we are a destiny own our cost than part. headwind and have have in faring price that. issues there Out reductions the it control of can as fabs, with mentioned, because be Flight a our test, is for wrinkles - suppliers, our still there things most on are some Kris there ironed and we does But few with you do and our we are is out, like As could we most logistics that better lack have GM supply assembly Next of being slight [ph] some and chain

that is quickly. of things the will a ironed headwind, broad markets these we'll there but think and move get I pop in a So chain out couple continue hiccups certainly business of create to very that a see bit supply

Craig Hettenbach

Got seeing? a some bar design update activity any you're Liam, follow-up on it. just the as And of then that

Liam Griffin

the great. designs doing are bar Yes,

across lineup phones of multiple could You see in today customers. the current

of fab we acoustic second start own content more some move and year, we you engines Our underpinned we some also the the as out by SkyX expect in organic have. wave systems wave, that acoustic solution the in more look our forward. should bulk as WiFi there bringing is And bulk of is more into to half technologies

forward investments that's we've of to able there to our going technology beyond. So we're is to made deliver about as the been half go - those rewards we that and so we into deliver the it, and that second be solutions, good fab work lot the of in done reap feel really good to also

Operator

Kevin Your from the next line of question Securities. from Rosenblatt Cassidy comes

open. is line Your

Kevin Cassidy

I the you was you. that Thank if some into second C-band. second coming as out just maybe visibility into infrastructure In deployments wondering particular, antennas had deployments, go of the in half? the the in the year? half maybe Is you

Liam Griffin

great of a Yes, question. that's Couple things.

had bit ecosystem infrastructure So whole first this a lagging of XG. specifically and mobility in all, been in

the Europe; key some the we the the in mentioned we and are specifically. in more rollouts Nokia's as with to energy So see call, and of Ericsson starting players

XG; C-band MIMO move gallium into We as we necessary mentioned, lot now as great really want leverage great that that - other been but out we and deploy possible. good cell then it's money to up, technology that the a It's that places; carriers quickly have we you as it's solutions, starting to build there the been recipes technology so need about to of pick you want core has And the as and it. spectrum. it's as and and solution, feel with they spent basically arsenide small more more is option slow necessary because in my

infrastructure pop device. is the could there, mobile also going little So to opportunities to core up it a add content bit and

the a of lots be and And there that of but we spectrum going - populating when the then there C-band that spectrum positions that's have there's is with that's there, course, end. So two-pronged devices to you navigating room there. look starting at approach definitely handset; happening have on infrastructure to that to side we unique it's will been be within need and move so something and

Kevin Cassidy

expansion? that answer. you what it capacity just on is just can spending, anything mostly CapEx And you're in Thank you for your new Okay, or is it say spending great. there

Kris Sennesael

fabs, investments technology-related Our bulk the operation also CapEx, technologies. is the in higher as our is expanding our and to making acoustic at more complex filter the backend CapEx about talked and in capacity operation amplifier support the our performance there; with now, two wave, definitely one packaging investments that SAW so power that, is But in in we big arsenide [ph], drivers part TC making as gallium there year-over-year the Liam course, right is is to of a just of the there growing that. business addition main XX%

is that to support offering, And dollars are a so putting up win driving that's that, in fabs. really course, of differentiated product in our the the we own CapEx have we marketplace but we why

Operator

from Research. Your of the Harrison next question comes from line Barrett Arete

is line open. Your

Harrison Barrett

or share color some on your China an a mix particular the tending product for we there my thanks area Hi, to broad into across see taking where are addressable OEMs? get you're seeing Could content? questions. your you traction RF Is

Liam Griffin

that and XG the and I Yes. solid, XG, customers APAC been XG quite have lift is very very we in were oftentimes, the have demands actually into mean substantial. strong

that last with phone; caller; pickup. a that that of the not the technologies so just XG in a we're there comments unique XG made I we're required Some in lot is seeing are of

of strong with accounts now a way to So we XG beachheads and but brands the some XG; we're in the have a has really match see and that augment other that XG to technology were been value that the element market premium some extend see a opportunity US and and essential that their core countries, and and happening, really it's there. does that and It's may we remove go player connectivity that to building in of that it's in been China in and marketplace in need starting to lot there's be grow to business long in up. have within content technologies. some to a region, also new grow a mobility, that our they're to really launching with differentiate our complexity and complete when of the ability offer that customers SkyX solution, so

Harrison Barrett

Great. that sort you millimeter about your updates particularly, a millimeter on traction then, of yesterday. of wave of continuing lot any theme. China competitors have Asia, think I in from on Do was roadmap? There your commentary And wave one

Liam Griffin

but right slice narrow it Yes. really We're a working architecture on millimeter kind mobility the is within wave of now.

technology some continue you the we've that how RF, was do needed the but driver. complex, and drive that a X or interference; stadiums take you But do augment; signal gig, that size in mobile is latency, have point campus really to X handheld So - to phone. you walk XG on could side that in that. to know move spectrum a technology and to a in option let's you use solutions that got infrastructure at physical that course. the into consumption in can there then is unimpeded. the and performance, a just we so speed, continues millimeter And the time have say have to of do environments, what if incredible; spectrum - is gig the have it's as side we opportunities you we but mentioned needs, look the expand the work be A that, we've it's current the have with have certain to And unimpeded, that's and anywhere more the substantial works with more and that today got a is we're roam today, some that continuing big it's to the C-Band the challenge so and It ability to anywhere; to core the the going at point environments, a well same we challenge investments in to wave

challenge, I So is spot high-band, but layers else, delivers to cake, it's be that is have wave your look there unique your top you the - right. the a anything mid-band, mean have going There millimeter your a could at cycle. you in a at low-band,

best that it's understand how get the with there, they to we we work how to know it all know ensure to So solution. our it. through We navigate and customers

Operator

Needham from and comes the question Gill final line Company. your Raji And of from

line Your Raji is line your is open. Again, Gill, open.

Raji Gill

quarter. you could in Thanks taking if for linearity Chris. my Great, the wondering discuss the was questions. Yes. I

significantly. up if shaped a pull-ins slower quarter? think the any quarter this I how signs there then accelerated quarter. and is wondering you, during it that's little last bit if started of Wondering And

Liam Griffin

amongst the March course was just now of let three evenly perfect, the it quarter. slowest and was we So linearity through me first June, quarter seasonal our are the in going talk quarter. spread months The within about

middle the growth to quarter there ramping where the half produce opportunity the ramping the September in we're bottom again somewhere up hit and and second bullish start December. of calendar into year you the towards the sequential up, we're, So then of you about very strong

Raji Gill

more I'm particularly modular an gains characterize what of the integrated you. a mentioned there China. the mid-range year, year the you of gain you're integrated you of the content? RF Liam, phones. approach you particularly of terms to initial the terms advantage. would of tailwinds RF market leveraging Any wondering Thank share XG content, kind in last color modular approach in increase or versus; you're the say, this approach RF And of providing first in how how either kind of content kind rollout giving integrated this Is in

Liam Griffin

Yes, roaming constraints, is is Great I'll we know you. spectrum how We the hard. really to size with SkyX and bells developed our all the handle consumption. can the why hard a thank across the It's socket Yes, solution. that the of question. XG exactly it handle deliver board. complexity current this whistles

customers deal market. a a creating So our go that to easy it makes we great of spent very solution for time to

Skyworks Although the cover discovery easy. hard within the underneath is not module work

have technology acoustic from all to [indiscernible] we we filtering bulk the So use deliver the ability wave. that way to the

Our really we that a assembly been own opportunity. a of and customized gallium lot that about great something with been and unique arsenide how packaging and test on that devices, wrapping have and it's working know house thinking these together year. need in that This great, for is players a

this year, on the we market complexity but So higher just out are working technology The and this for that see year. we that is continues that the solution. while see board, mobility the is with the we've turned the for you'll now quite and rise. in continues content across complexity the do, on see That this you'll launches demand purpose-built that better not you'll in that handset. and to to drives is a phones a been the with around something It just see the grow. This that something we that there consumer

puts in a So outperform. but gets that's it's and lot market great really to what of problems and excited us are solved us to a there be be position in, a to

Operator

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

Liam Griffin

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

Operator

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

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