Skyworks Solutions (SWKS) 5 Aug 222022 Q3 Earnings call transcript

Company Profile

Participants

Mitch Haws	Investor Relations
Liam Griffin	Chairman, Chief Executive Officer and President
Kris Sennesael	Chief Financial Officer
Raji Gill	Needham & Company
Gary Mobley	Wells Fargo Securities
Vivek Arya	Bank of America Securities
Harsh Kumar	Piper Jaffray
Blayne Curtis	Barclays
Ambrish Srivastava	BMO
Edward Snyder	Charter Equity Research
Srini Pajjuri	SMBC Nikko Securities
Melissa Fairbanks	Raymond James
Matt Ramsay	Cowen

Call transcript

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Operator

Good afternoon, and welcome to Skyworks Solutions Third Quarter Fiscal Year 2022 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

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

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

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

Liam Griffin

delivered year-over-year highlighting and quarter welcome into design and third set, growth results an record win Mitch, business momentum resilient half positioned our earnings second the year. double-digit with execution. of non-GAAP diverse well drive and across to model everyone. With Thanks we customer and the disciplined sequential strong revenue and per Skyworks expanding calendar growth are share,

up detail, of automotive, growth content achieved share We XX.X%. expansion the in with quarter year-over-year. to and revenue at billion, margin our $X.XX, Highlighting along and delivered $X.XX center earnings above smartphones in of premium Looking We consensus in per network we more gross year. QX record enabled of compared up last data XX% posted infrastructure. XX% XG

return quarterly of we an share marks eighth dividend to XX% cash increase year shareholders to We and today, our through announced increases. consecutive repurchases. that our to dividend And have dividends continued

environment, addition market of generating a an drive investments targeted results wins, to to macro design are of critical a challenging solutions. pipeline solid decades we leveraging spanning of in In array

to Europe's We launches including platforms. our smartphone scale solutions and others. continue last capture Cisco, IoT, and and Enterprise for gateways XE In ramped and platforms mobile WiFi Orange launched access powered WiFi carrier-grade share at quarter. delivered Google's innovation Watch cellular – first achieved to advanced tri-band and record many to platform. we integrated XG us and revenue with OEMs, mobile, with high technologies. the Skyworks SkyX in Livebox GPS, points X, all-time outsize Technology allowed performance In Google, an Specifically and leading an at supported Bluetooth from leadership, Samsung Verizon we revenue has newest Pixel this automotive, we our at quarterly cellular of

our As and drive lead we electrification. executed to the on ship connectivity vision to

brand vehicle OEMs. we driverless quarter, European fueling robo the high market massive with IoT taxi prominent and We and EV wireless leverage And and modules infrastructure. smart and providers, multiple data finally, and our across in solutions leaders and multiple timing ship We And at power we and we industrial, During power network captured service solutions leading infrastructure wins delivered supporting technology ramped applications, to next-generation a top equipment market integrated timing for and the provider. industrial center, energy. MIMO a deployments. design

consuming cars the data smartphone. will growing XX next machine fastest XXX million that IoT we XXXX, XX the A a expansion reliable data is on in soon over XX% Machine wireless point. consumption, connected see users. ubiquitous expected wireless and illustrate in traffic connections, continued each By years. we we forward, see to dependent annual data connectivity. this at rate Moving a the times to expect today's surpass seamless, statistics Global billion few five grow category

others. to advanced-WiFi, Capitalizing has Addressing on Over technologies high Bluetooth the our among all key network power momentum verticals, acquisitions, gaining growth time, from GPS past Skyworks the in while critical connectivity at this organic transformation. growth we made same both diversifying two and cellular strategic decades, and set. revenue to customer are investments enhanced and

Looking us continued solutions of deliver arsenide the decades filters, outlook. packaging. pipeline underpinned Leveraging positioning QX capabilities by will our in-house for design I unique innovation, to Kris bulk wave we ahead, technologies are outperformance. temperature-compensated in-house QX over win of that, our discussion gallium With acoustic call and temperature, and customized SAW purpose-built and turn for

Kris Sennesael

Thanks Liam.

increase The result quarter our technology XXXX was the quarter. fiscal demand by of Skyworks from fueled offset customers. lockdowns of the growth by including $X.XX at of third Samsung record an and reach the Mainly the year-over-year. of delivered revenue partially smartphone Google, During soft China early OEMs billion, expanding a XX% largest as in

up year-over-year. XX% In addition, was markets revenue broad

into basis As last year. to $XXX solutions in QX fast points down and and a revenue resulting was up Operating design data network automotive, growing profit XX.X% of $X.XX XX for $XXX share with to including of end-markets, we We operating XXX.X our to continue and margin of gross Gross of on million up wins the a other generated slightly of quarter million expenses XX.X%. compared tax drive basis. a further sequential share million estimates our achieved industrial, was center rate income effective innovative year-over-year. were second in consensus $XXX infrastructure. incurred shares, of count we $XX margin and million translating per an weighted expense driving X.X% XX% $XXX earnings income on reduction operating Based of We exceeding million. average of net million

quarter operations million Turning cash $XXX fiscal our were to and $XXX flow, our was capital expenditures cash flow third from million.

paying million repurchasing million stock for quarter, our and million. common of the capital share In X a $XXX we terms of total dividends $XXX of shareholders, allocation in returned $XX million to during

making support nine while has the share, and team During QX record returned technology In earnings solid growth. through purchases summary, free the shareholders the our of more to cash fiscal Skyworks and investments of another months Skyworks year, $X to and XXX% future representing the billion than quarter first delivered share our in roadmaps dividends revenue flow. product per with

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

We expect digit September per double and in to earnings quarter. the share sequential revenue deliver growth

from the billion. of sequentially. revenue expected outlook $X.XXX At the Specifically, the and Gross we This XX% world XX% billion impact anticipate in-house launches, account is product technology midpoint is XX.X%. deep projected revenue to and to margin of increase takes quarter to capabilities. into leveraging between manufacturing our X.XXX in class range $X.X billion engagements leadership, major customer seasonal be for the

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

we share increase of be diluted deliver midpoint sequentially. of to per $X.XX the expect diluted shares. XXX to at of earnings XX% Accordingly approximately an million We share our revenue count range, the intend

our dividend we given outlook And and conviction $X.XX increase consistent XX% our I'll Lastly, quarterly cash in that, with generation, turn an share. Liam. call per to to the back Skyworks to strategic long-term over announced

Liam Griffin

growing investments driving in momentum half market's decades count across pace ever. with doubling than our portfolio Fueling calendar fastest segments. Kris. Thanks in into opportunities long going billion a for the broad second markets diverse more year-over-year our business customer increasing is revenue, on are the Skyworks our of the year, annualized $X

Operator, open to and to invest our strong diverse consistently ability remarks. let's line revenue win cash fund the questions. our our prepared our returning for and shareholders. while generation profitability, That concludes streams Finally, cash

Operator

go [Operator Raji Instructions] from Please comes First ahead. & Gill question at Needham Company.

Raji Gill

good cycle. for Yes. my of on managing, questions crazy kind a a results providing and congrats through taking Thank you

low-to-mid general, on tier, XX% the make in can you in it's revenue, what today? distinction the handsets OEMs? on a inventory Just overall just demand would market seeing how of kind you China. handset characterize premium landscape And your and a of situation level the in level there channel of inventory across see of the but about in question the market know of as China I if it XX% you're versus wondering terms to there the you the

Liam Griffin

factors with the challenging had Yeah, that and been well. lockdowns in of the played many course here, that And in little market major also Of customers. a and lockdowns Sure. as right? a several bit you you certainly it's just had of out the across that less some the China then a provinces of demand factories even for prepared group larger folks were impeded there's

market market, performed hadn't too think very, going bit still quickly. some we look are But you the all. really a get can at which you if on strong well lockdowns, rather by abate tampered So brands high-end to activity, where very OBX China the at is the lower-end,

mid-to-high So tier. aperture that the positioned, that the an at you much was area was weak But look generally. been way has towards more been has if Skyworks our

players time exposure tremendous to like and that do choice was other the come schemes market some down. to it. At Google we Samsung our flagship names even position cases in In and do quite our has our of parallel, the it OBX doing many to our had well. with same So

still some of definitely technology. even going China manufacturing that it's lot there, on abate going And see more and the a a consumes market was So to but a chain think we of that supply we do bumpy, tailwind. problems and are issues the

Raji Gill

Appreciate that.

push last through account quarters ramp that were in the and about and challenges, to your you million kind June cited And in as last of China and de-risk you're content. new to in the Wondering that as for falling Singapore. follow-up, range. platforms to quarter you're in and month X% and out lockdowns given that process top September how starts that having $XX customer kind components customer you launch with related down my your of final to they For guided top December quarter assembling the is your April, it attempt in X%, thinking to the

Liam Griffin

Sure.

Raji Gill

you. you expecting Thank ramp? a Are still steep

Liam Griffin

Yeah.

more feel brands the those on have everyone, good about a degree work So of we and clarity lot premium we Again, in that of of with some visibility that. have but we a we high very side field.

And leaders, we the market actually appetite are we continues around connectivity continue market the market who reasons, we're leaders two positioned. to well and leaders grow, for think to and know consolidating. cases And the the use are technologies very mobility. the grow For the

excited our of we're a are gallium where good this arsenide some We offering, in-house market very where about admits the fabs in our of amazing bulk wave, acoustic with technologies supply incredible that. doing our driving So challenged our chain. breadth about our with all packaging, going, feel everyone's technologies

these year, going as discussing. the content we've of strength lot we go of second buoyed and a do gains by there, been expect work on we that the good So some half of really into

Kris Sennesael

Maybe just Yeah. there. to Raj add

So Skyworks well up further is revenue. growth of customer, that based expect quarter we in and growth we sequential into today more and sequentially known wins design guided that the sequential large customer as the on with and XX% total obviously that shipping December terms do higher the September we at just are

Operator

go Wells Please comes question Fargo Next ahead. from Mobley Securities. Gary at

Gary Mobley

were and there thanks your for other quarter? XX% largest you guys, the my was Could greater the taking than Hey any big in question. how us customer quarter customers with in share

Liam Griffin

have revenue. Yes, so XX% was which two of approximately large customer, in June customers plus we the the quarter, total obviously XX%

June, to was Just that in XX%. year compare last

with the we've rest their that. at yet XX% great to execute customer. then lineup. So well their And as flagship in Samsung very again execution, level continued plus well great wins design Again, of product is

Gary Mobley

Okay.

So largest all dominant go I smartphones, not think sales of does. portion to of I customers your your but it know into

in the the $XXX And what customers mobile million customer calculation quarter? so envelope the million in large business ballpark kind is with your I that to of business, outside presume doing for back that of of $XX your

Liam Griffin

the markets. with large million $XX broad in customer

Gary Mobley

your comprised to of market sense whatnot? of with you in of get trying much get bottom to And a of a What stand customers I'm largest. where to is and sense is maybe respect to of mobile get your trying how outside Android trying business to the just

Liam Griffin

customer, our is right. markets majority Yeah, revenue the of broad large related not the vast to

spread more all which connectivity We customers customers. an revenue, over record solutions, have time X,XXX than was industrial automotive,

we in run infrastructure, and on have annualized a now audio We business business, $X have there our that's billion networking our rate.

Kris Sennesael

just I obviously and we several the in significant even customer, ones. largest say, to very other Yeah, Samsung, mentioned, Google. We addition would strong and have

So it's a balanced mix here.

Operator

from America Please ahead. Next Securities. question go Vivek Arya of Bank at comes

Vivek Arya

does in for June question. of you So to year-on-year I or of December at look much your has Liam September, when? China or flattish still kind curious year-on-year. I'm Android because March seems just a of and Android or headwind taking to implied how for September for bottom China down and year-on-year, my been headwind mobile much be how Kris, when Thanks it somewhat guidance, a

China Android that's imagine the I headwind. So

So when does you? how bottom for China And much that? is

Liam Griffin

softness So from China as of it to some relates well view. very saw point documented. definitely we demand a That's

that did hard a brakes have June. it but end not pretty demand carefully. guide brakes. in the relatively customers, in up We want the in expect the of course, will we with major very started quarter, channel. the pushed beyond We we pushing for played September that, Even We to December actually do year back. China and expect inventory revenue do almost into We the bounce minor March the ago, the

June You XX in that seeing in sold close being than numbers already started where were phones China. the million, million they XX

so that's this And but back not we expect included do the September bounce guidance. in

Kris Sennesael

performance Yeah. more difficult just is and comment see. great and add And more is the complexity getting And nodes in I'll more one that more challenging, want that's what we the to are for us. which

the base there So it a that China when are fine. leading interesting that to pack us really comes players. are premium strong But in low-end, mid-tier building up for that's the pockets are very some not we're certainly and very, and in

Vivek Arya

inventory. wanted my about to follow-up, your sheet balance for And Got it. ask I

and assurance I appreciate but the very that range have at highest that of making get are understand look you think a your that among for need, when customers that, the inventory and days have we I products supply So wide I I seen.

So any have next are quarters? will handful planning it utilization for and if impact, your margins of to on gross the how what you manage

Kris Sennesael

just load always the players Yeah, wins and customer, as so Vivek, further the and And is feel markets. known good September. for design factories. We guided with And based we expect even we all up with know, XX% December business, sequentially on broad mobile we into do other that so within right? large our level you growth sequential about

December. line advance expectations new bring in and market. we the to devices filter accumulated higher that in product weeks built are here into but in fully that those inventory the will content many Filters in months typically us and many help shipments with steep of ramp inventory, of have higher and September or in our We is support

Operator

Piper please Next question go comes of from Kumar Jaffray, Harsh ahead.

Harsh Kumar

it would given business managing of in versus the in release, all tricky you press I of – that a And of question it. could mind but or the second see I largest that Yeah. do first broadband suspect us incorrect Hey assumption? in is very appreciate breakdown business customer the mobile in be would September? Maybe giving guys, well. the that is missed part congratulations how up certainly so environment you September business the a the mobile We you would June? trends same the in

Kris Sennesael

Yeah.

was our still that forward in up but markets revenue. was strong up very strong double broad launches year-over-year fact well with market looking we was a Google, quarter. that as large the very of the the as digit XX% quarter Samsung performance the and a of broad large And just XX% quarter, customers, year-over-year, we is offset was, a our the breakout September that was total performance be of there. the to XX% so year-over-year revenue. So expect with discussed customer with obviously strong basis, on softness other those the of on Mobile our we going-forward, China mobile performance strong It but in had at total we It some despite customer, slightly many execute September market. with down to

Liam Griffin

we Yeah. on be at chain did a here seasonal of remember guide. that, lockdown a And little the dynamics put and the would pressure the as discussed normal supply beginning what some volatility

some lockdowns there the still little less effects added there. on supply it is was demand. is. the quarter. were go much to that in, of demand mean, helpful, a exposure of together, that, these very weren't And execute I early is but chain nip-tuck issues had in to those the to all there factors demand to bit played The we So we China, the which related but and need ripple

Harsh Kumar

mobile maybe my went the sort are and handsets and Liam and band in addition, increase follow-up and very rapid to even flagship phones, content for still one the this feature of are Understood, that? so seeing being added period still talk any is a edition, that just question at from bands to Liam you, the maybe that, you of good growth that XG you of things we coming like us can color would maybe the some point, it about? wireless, like DRX talk And up, appreciate things ones driving are or the about are mode

Liam Griffin

a temperature there's the have we've great talking rare wave, of come about themes level with been look and Yeah. all technology. that mean, those in-house end-to-end in-house bulk things right? test we soft been enhancements the that manufactures players together assembly vectors the from allow that one lot to unique the customized back filtering, a to of customization deal that a up cycle you those in-house, and acoustic I and customer-by-customer. and with gallium compensated crafting of is and great very through if basically leading at CapEx arsenide, that technologies us delivering do come that We're And we've high-end breed

can and we supplying wings we're after one the knowhow. with much of right of really So reasons lift go help have much, broader a and the able beneath kinds set with tier customization those of accounts that's mid-to-high because good work we level the partners really of of Skyworks, under that the their why technology. our here, And do to teams them technology appreciates business lot when a

for good it's So a both sides. partnership there

Operator

Please Next question go comes from Barclays. Blayne ahead. Curtis at

Blayne Curtis

digit, Hey which me taking you guidance. September be double is an I to one, that give I guess direction still thanks things, for question. just my Two of idea broad would markets said doesn't on sequentially. want it ask of

talked the supply think in outlook September? what's markets broad the I you that issues for you chain So June, had about in

Kris Sennesael

be up sequential double be basis. digit down said, So as I will still year-over-year. actually a just on will slightly September It

demand. cases, continue mind some the that supply, audio that business higher than In strong have. of broad case the that's automotive some in markets and the demand we You our we That's in have to see case in is keep very business. the in to infrastructure the

parts addition don't customers that, need for the will also have They the to growth still have well. will Skyworks a ship we and the then as to they content but now, fuel don't [indiscernible] In that, get result further see as time bomb catch complete of assuming our continue over resolved for many will up the kitting that that shortage having to issues. of they

Blayne Curtis

your inventory. own some that about to the and that Okay. if your still on talk perspective? you're you just Can And from backend then much the mean, I constraints, foundry maybe just supply a chain. fact build able on comments seeing you're that any, business

Kris Sennesael

Yeah.

I our Where just operation. in operation, fabs of some what arsenide have model As plus we technology majority to said, the it to we that the do of able majority capacity is the on our in businesses customers enough of as on foundries capacity. we in-house, in invested back-end proactively are in and vast in gallium have business, want, we the that we especially depend back-end, products cases have that to our and/or supply vast our in relates struggle where products some we we business filter are don't the our far in smaller where a and

at are are work working continue to capacity We it. some hard, it, strong securing and getting we'll we we more demand making fulfill have in that of improvements, are to are the and those areas we working we

Liam Griffin

mean, lot CapEx a to add. in amount that I technology tremendous see of I'm of you just And has can a there's come the really through, in the portfolio. going line. And been Yeah. investment

are efficiency bulk hood wave, some that, driving that is performance we're with tough We've playing our capabilities. of doing in a really the so improved TC-SAW really speak, important sort to things technology. the acoustic which of under So

technology know, upgrading as RF, for We unique we've years, a arsenide. It's every gallium had have and been at that we've customized you – in very cycle.

of the can lot really we blocks interesting a the there's that into go that product here and bring. building So finished flexibility

understanding can discerning of roll. going There's a where technologies a products, a do have that higher where end us. collaboration I we when really customers customization, of will phones think decision appreciate with they and we the deal carriers great why lot are to it's reasons the voice one and the in of be those the launch

can downs So forth. an there's capital a lot going we comes ups in advantage despite I put on it's And the that and and the And right now. supply we think house chain, with I'd rather it we customers. our for do that the voice we can with decisions, the and have make right have that in We a can deal thing it.

Operator

ahead. Ambrish Next question comes Srivastava from at Please go BMO.

Ambrish Srivastava

Kris, have I I importantly, to June. of you. and past come in back flow. the said Thank that and wanted up know inventory inventory the more in free go actually days does you cash just to March

looking to your and to, So back comments, that's at but I fine. past go years cash flow going to was free sales had That's back many consistent to we're with I all past.

sales, flow very the that to of percent to raised just about capital, number. the get missing a the we had I cash June really you go trajectory but free And actual a I to flow absolute anything number. but back get at and free number. it's of should XXXX want see working good on I'm not low I As how your to in if think dividend, cash understand to that change

Kris Sennesael

Ambrish. Yes,

plus line free it take And cash percent of basis further to mid-XXs or said, right. the expansion good I now I So the to on by account forward basis. and a trailing have based free in to what revenue flow rolling a of think just further a more we and is can't pretty on Also XX-month our the XX% XX-month sight growth quarter and get cash into And as cash flow look flow of that's Liam top line profitability, margin. we number. manage quarter, at the free

the technology bit supported number. to high competitive to invest roadmaps to indeed we did design customers. and that of quarter. own our that deliver the in product that ramp we wins free Again, about invest we was muted to concerned that's think a I not a very because advantage And products little continue the factories, good our known December performance in While inventory us the darn I'm our by strong will pretty revenue in in roadmaps, continue our gives flow, and fully cash June September experience which and built the is the a

Ambrish Srivastava

Got just quarterly missing anything. just at understand. look want sure And make basis. on I Kris. I I wasn't it, a to don't I

on to the Just quarterly, about rate the clarification December for, think what's quick a it.

did should think about say how You you'll grow, we or think for it purposes? we you. should seasonal, modeling Thank sub-seasonal,

Kris Sennesael

it's mean, how of create of more breadth technology of opportunity our performance, able for relationships And even And to is, can little second year, invention mean, awesome, I really or moves lot Yes. Skyworks one and engineer a are the going of parts. about the of the engineer providing reach, what to of feel a it's lot a very revenue that the on, go execution we needle And And the half we're for certainly impactful but the do doing is so opportunity what a that are is still there's tell we the much forward. up, do are the call new you we And early, technologies to I and good the kind that. bit the we for we're technology and line-up speak I two to is largest something as the more awesome reach so. customers. what opening and the with drive technology not that. customer.

great being we our at lot in to expect again, cycle, It's to I the our in play ensure leadership and people getting revenue that numbers. that matter feel absolutely high And that with to done about together. fabs very the shoulder good shoulder of really about feel really collaboration and and And good that. out end. we good in work So

Operator

Snyder from Charter Equity comes go question at Edward Please Research. ahead. Next

Edward Snyder

Thanks to a look your you we from that here, much more end, you're exposed in models Liam, what of But know one a of low had much line out, end would I not and and big think you holistic do does. you're know what product no from we view. from sit mid-tier. you than China. if I break said I can back point don't mean, lot. it to on at mobile high

means high Samsung in largest sure customer's you getting big of that big Series A end. and in, You're if your mentioned you're I'm not gains course, all flagship. in the

trying out it an and just but high for idea you maybe end, or I'm an it mobile, approximation, get know us if XX/XX XX/XX, had just it's it's XX/XX? break would like in I if you you to So something could general, bracket is to say closer

Liam Griffin

product. Yes, take it's performance. and end, towards along great is we're consumer XX% And actually end gets and do technology as result, level more of what higher Ed. bring a high better And low for probably the a the them that also revenue it and be us trying a to would for

and we our But DNA the an hour And in there, So things first, that downhill certainly, else. can the think mile the the hard fastball and problems solve pitch. our hit the company of right. we take hard then from delight after We want the – right. business, I way everybody care is go hundred the go and to about customer, it is we want to

even doesn't comes customer work amount the great solution realize energy and technology this, and through ultimately sometimes, know-how they that that a of it's And the get. but

we do And so that's the way can this.

we Now, there's to still work mentioned. with the do. like tough then and as good I to start downhill, really lot of go a problems And

that a can You many others some connectivity now much, we customers Samsung, talked mobile haven't other and many in that we Google, there's others lot serve. in hear, of about about too discussion

market. us and their to a model consumer drive worked and performance for about ability it's to their it's that's uplifting customer, all So customer and their product

matter what always a Skyworks. and it's it for challenge us, makes love that been challenge So at we us do for here but we really

Edward Snyder

in normally as ago opens a get but the like true when the to the had ship And you with and I'm a to down of that you X. I you the that showing end February but everybody that it gets lot to because hold slowing years that it you Okay. basic just last could, if in lot of high on report unique really the obviously indications they're sell starts, think worse, to last weakness that a start fact, talking will. what on else the far, varying of especially clear your a kind given is that. take in of report success, to trying get but the the in regard of yet to high new up it end when can the as And up to seems In end was time the mid-tier, starts dislocation things end. year. starting people, low, at mean, largest I have et profile, relationship, But know hit demand then recession Samsung's real the much customer and sometimes night and phones high now the like kind building they all. the with this obviously I from PI with so the feel getting hasn't are January gate usually a if It most you cetera, it many or harder people due of hit a would it's was that at model, want, launch or it's

I last December it happened So in and time think January. all

see looks it do know I it? wise, you first were a problem visibility while. When a if good think just So you'd there for

Liam Griffin

Yes, no, that's good question. a

know the what is situation. lockdown now Ed, You it's is the ball interesting, curve

it went on really was opportunity. what of was and So pockets just dark kind COVID knew and of through wasn't everywhere, there We thing. There an any right. we unusual all going it's

is bit just happening of a I a think what's little bifurcation. now

played in that very and You've got the OVX land. hard China those

more think I much to exposed the downside. that

mid profitable. we On more and been high for us were and which the other Skyworks, hand, at raise has beneficial to continuing end,

a of of But up the stories. business going is, of opportunity kind We down, shift, not lot across some two opportunities and know demand every than issues that the way opportunities different low the of but said, still tale a want us in a different grown obviously. these globally markets. like technical it, choice really of for have to are account, So with pursue we very to it's I end end looking that the more our high we China. more do think really has how do kind markets in to good. There's We was It's problem. of a here do

pinched that visibility and we real. unplugged mean, we still our very that is. of that can on that's And areas chain really lockdowns demand where have these in not Some some good I supply hubs today. measure

positive the So gives some delay, and some there's part of a us the go further it into next maybe half second color as early see second that go – year we definitely well. with can where view delays and on the

COVID not the being there's on hard but that going at saw a related end the wrinkle, chain lot supply of So the lockdown necessarily, there, we quarter. the nuance this

have kind it So communication but customers. about still good really our of And together, we with mixes we all of great course, opportunity. the feel

So we're with always in sync they need. what

Operator

Securities. SMBC go Srini Next from Please at Pajjuri comes Nikko ahead. question

Srini Pajjuri

which another et seems a Thank like you. nicely sequential decline, was I on sequentially, the side, almost question have but environment, stable. of a a to And you cetera. it guiding Liam, IoT, on obviously WiFi, basis, down growing you're lot consumer pretty for markets, have secular it's then drivers down XX%. Especially broad year-on-year on

probably been if be headwind curious we any the sourced business along lines, costs to the So that increasing. increases about And you Have offset Thank actions pricing helpful. for cost of where you. talk what can implemented and are of as in terms I'm of you kind cycle same in that actions, to then from and the pricing still external that'll have foundries obviously is some business that short-term. is the just in the those

Liam Griffin

business, Yes, an with impact very Yes, supply of good the we certainly the question. see more chain issues. markets there can broad in no, challenges

have headed. So actually where have clarity where That's and going we mobile we're more of device. exactly customers a technology. very very, don't a set in – know It that it's Broad of multiple you goes kind we with to the broader is markets diverse.

on it and ties back to So question chain. supply your

markets, if think was it a constraint. constraint. about demand So It supply you chain broad wasn't a

await bit raise opportunity that that And broad in fine. area, go top their markets, business, that We the strong, things saw of we markets a is and that we of of we it are in little feel an it customers we pool own market of us do so vector part terms required was rates, but was that to we we Lot strong like are huge in there We I so a And stuff lot of was that growth in with but pricing, more had opportunities on our of that did all prices into partners our haven't that's and our market markets, can do really not of tagged outstanding. together that. keep everything mobile to forward that. was a as in about take lot opportunities. healthy, customers to the lots revenue a broad think but looking talked respect broad we less portfolio, forward. unique to great still It's broad at that action XX% some that's year-over-year healthy out So our a necessary. there's And pricing so as line mobile hit. still unique

Srini Pajjuri

Got it. you. Thank

Operator

go Raymond comes question Fairbanks from Melissa Please ahead. at Next James.

Melissa Fairbanks

And a up just overall wondering forward? versus should guys. up, that? this has say just higher. a your questions. your favorite begin know of inflation volumes What much. expect that, very growth how out? as close maybe to one Hi to we we is Are I going And does Thanks terms of generational content Where trending pricing mix just max revenue much in content follow as follow or even growth into played then unit to

Kris Sennesael

on just pricing explained, Liam right. as So the

passing and business. a is of parts that that based is which certain market of experienced So customers input the our on we've fabless the broad been cost relatively foundry in on our to model, especially overall business, small some part Skyworks increases we've

question. first your answers that think I So

Liam Griffin

this but we're talked mobility. changing you talked Yes. content opportunities here we year. respect the that customer in great, infrastructure set about technologies And Mobility wireless in in. most is the great year we some about side. after much if us after the at are data vehicles We is to more playing just now isn't and thought We market and is incremental have center. year I and see But And Skyworks, the, here been with today of electric reach, about think table time. think that content it for what's what's the quite different application right set do now

We have performance high audio.

available were to and us have ago. our people created three new two, in we et that capital. house We these technology cetera, our nodes waves, years And not with own technologies, bulk acoustic own

about we what require a to that at of and very guess technologies It's the course, industrial, end large think I is, markets that right. phone bring. I the mobile kind IoT, think business these markets All this, of to So but you about business. rely say on would connectivity healthcare, interesting much

that address. you we're looking that pools forward We but around give of opportunity more Skyworks certainly we to to Skyworks we'd guys love that. So see Technologies and vector, info can

Melissa Fairbanks

much. Thanks Excellent. very

Liam Griffin

Thank you.

Operator

line comes Your Please the Matt final ahead. go from Ramsay Cowen. question of at

Matt Ramsay

Good much ask to the afternoon. questions of acquisitions playing Thanks about business how guys. of wanted a out. the that's very of and couple I I&A sort

an market, and timing to just and telco thesis a there some – scale timing automotive some out to big cloud Thank good how those And on technologies if thesis switching there there what I you So side I the Silicon the server the seeing. up the into timing might add at on going time. market. really maybe disruptions I the one the were to is was, you in me market, then have little over space. as you're the then was there's going on the follow and I give the cloud in And wonder guess Labs, a you. on that And first that update are guys in playing is bit segment, of

Kris Sennesael

point margin breaking product our let It's than every are that the that lot that operating very we not from I've a demand we is that you Yes, a gross just to acquired margin pleased expectations but sub and exceeding high with a And Matt, exceeding level. view. The again, despite Keep said is are on. line, supply both tell expectations. of mind still our a start let are me me what lot by the supply, constraint. before, currently out performance business. we opportunities revenue, lot of is of of And but working that we all higher business in there able are

to And it I'll on so over Liam answer question your to timing. turn

Liam Griffin

out pleased execution. was not really great the portfolio, but we only of so business what Yes, the with the certainly call MSF opportunities our coming I&A the which – of in SLAB, products, with people

where great investments solutions to we're very now some center technology well. work got super have Skyworks, critical in timing And I&A really also really as good, core technology a we the are at it's that that I data larger high scaling. growing going timing It's portfolio from out about we're right EV team think coming and The be that. scale, solutions additional scale. be had great right. And about there great a case it's performance of looking of to of markets now With that and like the So all engineering really for talent. you've performance going lot

from to investors. talk dial. and work us, can right. up, team We of it the very And of do manufacturing, these it easy for lot in technology that there's growing So vertically markets We've stage, our the but a markets. are that we really to it's move And way some we and here. a at heard to customers say, Labs Silicon coming in-house, markets that. well kind early us, We the but communicate of our do hardcore look the we’re gotten integrated. company scale, getting development you got really things part you've and technology now at MSF the very, looks that the tough right right. that have are These business very from is they're well dollar that one Skyworks, if also way And high we do of the a at lot and sounds big of but behind the we

and deal So it's our that and capturing opportunity driving a of teams great now and scaling further marketing we sales haven't seen. about

excited we're And more we'll give in next about color certainly you call. So it. the

Matt Ramsay

that for guys. Thanks Yes.

guys competitive the on of A with here I the lot going guess to of that how automotive automotive WiFi, is are across is you landscape but of characterize the terms As kind domains of intrigued the in some VXV, I'm space cellular that for handset of opportunities different in announcements. of the split question I of in call There's the lot handsets, in market. different you're my them VXX. sort would and opportunities seeing, the automotive than in follow-up, was you terms ask, RF focused a

interested – in looks the the where be you're just what traction So landscape like? I competitive seeing and

Liam Griffin

come that here nodes interesting of the together in lot a There's Yes. EV side.

of hasn't have there's technology investment of is specter. technology XG. that it's going going whole lot EV going perspective, And And now. from elements We've the are developed a going that one be pivotal, vehicles most about connectivity in that in process. and the safety to into to we just got to perspective, through be electric through further lot that a yet whole in come a connectivity from when latency autonomous a wins to being be go forth. accounts critical development and vehicles, got lot think that around there's And a You've of we certainly wireless EV, right of be design coming now wireless nodes wireless, put certainly you

minds So forward great and the But move to engineering our that into a forward. said, we've as big partners with beachhead to across we're I got greater here. Texas have team like turn Skyworks And we great, also in it. dollars looking we knowhow some

have going we've publicly Many about like space. be we high quality EV conversations absolutely forward is it's don't of high the the with going customers low want do. already in that to what we the we many And needs kind do. the one working markets those things are those a And that many, for it players to been of bigger to performance, So sure. And latency, solutions. of market

putting will that, part investment we're in into but of and respect deal the great market. deeply that we a So note of involved the we're please that development

Operator

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

Liam Griffin

participating you forward investor at to Thank you. look call. for on talking We Thank you today's conferences. upcoming to all

Operator

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

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