Earnings call transcript Q3 2023

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Operator

Good afternoon, and welcome to Skyworks' Third Quarter Fiscal 2023 Earnings Call. This call is being recorded.

At this time, I will turn the call over to Mr. Kris Sennesael, Chief Financial Officer for Skyworks. Thank you. ahead. go Please

Kris Sennesael

Good fiscal Lina. is and to and welcome Griffin, Thank XXXX afternoon, conference third President. Officer Executive quarter Chairman, today call. Skyworks' our you, Chief everyone, With Liam me

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

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

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

Liam Griffin

line fiscal profitability the Kris, macro headwinds, everyone. well Thanks, welcome, and in during along Skyworks team execute flow. quarter despite strong to cash revenue, continued with third The delivering and solid

Specifically, $X.XXX and cash billion, $X.XX, per of of share million $XXX generated of delivered flow. revenue posted earnings we operating

During solutions an quarter, supporting and introduced connectivity new launches we analog market roadmap advance mobile continued high-performance technology the our at and of expanding and set product broad while to customers.

expect As earnings growth revenue we sequential a in result, and double-digit the September quarter.

home Powered SkyX launches, XE secured quarterly Bell's Turning and our delivered mobile broadband for for for content XG gateway. NETGEAR we supported smartphones of highlights. Wi-Fi Android carriers. to and all leading IoT, tri-band We X business We platforms our and North Wi-Fi CPEs across tiers. In TP-Link routers American

X Q-Symphony win wireless design soundbars. gigahertz cognitive Samsung's solutions, addition, In audio continue we gain momentum supporting with to our

AI top small centers industrial, cell data timing we North at for solutions enabled a Across infrastructure operator leading a provider. and and cloud ramped American with deployments XG

highlights engagements growth applications of by across executing And we year-over-year design a to our we in while double-digit North extended manufacturers. strategy leadership isolation mobile, with American Skyworks' power diversification revenue automotive, markets. high-growth portfolio In range supplier. technology broad continue while in a capturing end demonstrate These leveraging a post our for telematics on EV

Additionally, disruptive Skyworks. opportunities now for market unleashing several trends new growth meaningful are

proliferating with sparking For in accessed higher global throughput, from AI infrastructure will further rapid in amount a network connections, the lower turn, wireless will AI management. on latency adoption, of networks scale the exponential and cloud. this secure is example, the improved growth edge complexity to drive generative as In data more require power

advanced these benefit of billions solutions, as to supporting is integrated wireless protocols cellular for wireless products. IoT connectivity our other with positioned Skyworks well uniquely in infrastructure, trends used devices from as leading mobile

Kris I for will turn a over of our discussion call for that, the QX. and outlook performance quarter's With last to

Kris Sennesael

reduce billion, inventories. fiscal the third portfolio, above of revenue of OEMs for Skyworks' continue content Android the the was product XXXX by Liam. customer with revenue these approximately in $X.XXX to XX% outlook. weakness our midpoint as Thanks, gains slightly total of our ongoing quarter largest across Mobile demand ecosystem offset from broad was

approximately revenue. total Broad markets were XX% of

levels. as points We have expectations. with $XXX in Gross margin and automotive, from resulting underutilization down another million, Gross factory markets. right-size infrastructure was a we XX.X%, line our margin strong by the XXX industrial contribution of mostly gross profit in basis driven temporary was year-over-year, inventory

incurred we the XX.X%. exceeding per guidance our call. share expenses. of other the on $XXX million income, operating tax discretionary diluted last that translating expense during $XXX provided effective and our net year-over-year, given of managing We rate was of million and XX.X%, of and driving income $X.XX, earnings of focus of X% declined earnings We ongoing generated margin into operating $XXX million expenses $X Operating an million sequentially

deliver generation. to Now strong turning to cash very cash business continues flow. model Skyworks'

fiscal cash of $XXX from in resulting $XXX capital were free million, million and quarter million. cash $XX flow operations Third flow was expenditures

quarters year, during $XX free QX, the record notes our and of fiscal for at flow flow million fact, XX%. three In we've $XXX of cash of paid first fiscal of the margin in we maturity. XXXX billion $X.XXX Also generated million free dividends repaid and record cash

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

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

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

the XX%, of impact our Gross margin in be to projected XX% to cyclical while factory reducing utilization, we inventories. internal lower range of is reflecting the are

in expenses drive $XXX broad technology markets diversification in as and of growth product million, efficiencies operating business. development and and year-over-year in midpoint at down to to in optimize million our the X.X% range the operating further making expect We position continue we $XXX necessary while leadership mobile enhance our the investments to

Below million the $X in and effective expense to rate anticipate an tax we XX%. XX.X% other line, roughly of

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

generation, long-term share. XX% Skyworks' to dividend consistent given a to Lastly, and our quarterly announced outlook increase cash in we strategic our per $X.XX conviction strong

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

Liam Griffin

environment. to product market that our allow leading deliver Thanks, diversify continues advanced the further solid targeting we to financial time, Kris. road us results cutting-edge technologies customer have and both despite segments base. a Skyworks At same maps, and expand challenging our macro

rise benefit trends, of the of Things, the expansion and Internet of to automation the are market intelligence, vehicles, artificial augmented the name few. we emergence virtual reality of of and to and powerful from addition, including electrification In positioned just the well a

and cash expect business profitable strong growth Looking these sustainable ahead, we capitalize our deliver in to opportunities with on generation. highly

open for lines the let's Operator, questions.

Operator

from Sandler. question Kumar Instructions] And [Operator your comes first Harsh line of Piper the from

Harsh Kumar

team. Skyworks the and Kris Liam, Congratulations,

particular typically a new time September that in September your the the phone regarding largest in leverage guide. coming new significant comes My customer was with very that question time you frame, and results might about talk around? this be out first content out phone Liam. Can Solid who at your

Liam Griffin

Sure, Harsh.

all Of can't here give our course, you here. sharp. engagement the our and granularity to continue vectors technical But I obviously, be

leaders our We among We've -- know-how. largest expect customer. be we with the got to have the

We have the breadth of technology.

the have people capabilities We to the execute. and manufacturing

look forward feel continue quite largest we be can't So any large. our guidance, really give certainly to But with we as but you our customer very to that, know. opportunities we Harsh, like further

Harsh Kumar

say through what of would I That's margins. improve that's that the if let's you look be affecting fair if inventory such have But your gross are? margins look -- where I can drivers actions forward, ask that would some as enough. your Liam, working you're just gross some margin, about your be to gross sort your of they unit there Android from they and handset Or of of sort drivers more be Skyworks would industry bigger be dependent margin? dependent? more kind specific Would of I

Kris Sennesael

question. Harsh, Yes, that I'll take

of first a the we last line indicated in at XX.X% for delivered quarter, going And margins trend of the with in June sideways earnings So to were couple expectations. all, quarters. I that gross call,

said guided just during much pretty to so And I line September is what with in we call. XX%, the which last earnings XX%

the historical temporarily inventory of indicated, bit headwinds to mainly reducing Android why softer compared was customers The because a you main lower those margins ecosystem, is in are especially, macro the their gross little demand and the as while which are low in internal levels, issue themselves environment, the XXs levels. the

as gross as and in so well see get especially our a eventually couple the back business And stronger, in margins. as over business, markets of our improvements Android we will will quarters, broad further

addition specific ramp inventory, we a margins. as In well, is of normalized once model the that then Harsh, continue balance XXs. our will will again, increase take gross the the probably to will the to couple expect of to contributing the up reducing towards improve quarters. and are on XX%. work more And gradually inventory internal That Skyworks we low as target you levels also own know, over margins, factory we levels is get also do gross to something our time, to underutilization. it This sheet. But this we I the utilizations of

Liam Griffin

the Yes. generation we're at very XX% you that's that if sustainable. know, to to looking And We're you flow, XX% free side, results. in as on very, strong addition at cash that, the may forth, and putting look Harsh, plus cash

margin have got we the with cash has that underutilization, So which now the is And hit, but flow. of you've opportunity all paid for. basically free upside been

Operator

Caso Wolfe from the And question Research. comes next of line your Chris from

Chris Caso

be a double-digit correction a for here guess number general like revenue an through of It looks year-on-year quarter to on we've inventory the start, basis. just market going fourth been when quarters. I a of declines it question,

your for customers? next at that where And back getting where the to we stand with we do bit of now the customers of inventory those to terms correction does are what So getting that revenue in imply outlook? quarters a Are normal? couple point

Liam Griffin

Chris. here Sure, do to address, you forward. strong that go pretty we and should today, feel financials the that most as the mean seeing is And peers. the I be we but bottom look we it's relative we Yes. markets guide here of if at improving our

in that broad center, a it's we're good to a which us of mobile, We now a lot think We're cycle. aperture certainly doing wide what larger a with good engaged markets seeing are turn But well we're the is continues have, with doing a also data customers But We're positioned. business automotive. we range going that of work and only in are in But players also not bit through of the their work of important, very up. grow. sustainable. that the lot is

been optimistic view semis a quarter is our for in little tech and a But bit it than sure. in I it's more think cycle last general. now was tough

Chris Caso

China, you peers. of commentary peer we seeing what there? some we've are from a And cautious And think that turned more you there? that's China you demand specifically, also from should has what What now? your -- an just perhaps, one Do the should expect heard of your area follow-up Okay. from customers corner? on some And and expect where your

Liam Griffin

want to very pretty It's top been kind turn the and not where careful guiding we starting have and put but line. on vectors to of it be low It's way very, we've up, Yes. yet, Chris. we're

way. So I we're be think all any to that don't in surprised going at

flip to the Android still in you on well. side, opportunity to it's are But you So bumpy. at that that markets other an Samsung have has doing look grow. quite portfolio, continue

has other with. a our customer Google end important. said, opportunity few and other customers players products work feels with like great got that is we're and it the we I out dialogue But being there are does, like another more a what lot it seeing that of have You've mobile we in constructive.

Operator

And your from of Matt comes line the from TD question Cohen. Ramsay next

Matt Ramsay

the different each about obviously, that other, markets they're has I markets business report, Yes. axes think have and the represented bit. maybe there place that thing in but broad speaking of are in taught guys over us up you seeing trying is could of one lined you to bunch a are cycle imagine semiconductor end -- with different -- that parts different amplitude you be the cycles there's were or Y the I that a X, not and all would industry

what you subsectors, So you But really the really, could down consumer break business. different automotive, if weaker be broad stronger you're seeing markets maybe maybe assume would through in helpful. in I the some in would go that could areas.

Liam Griffin

as give can you I'll much I on as sure. that. Yes,

years -- well if market now revenue ago you very So million automotive. back above look you run three at that all. $XXX Skyworks, very, the rate. two, little we're We're you'd mentioned at a see That's

Silicon a technology also transaction. we to and IP a We work Labs more expect forth of inside lot lot Skyworks accelerate these the brought with vehicles. to that of drive opportunities organic within really And great that substantially, of

in already So an X important in It's design Wi-Fi Wi-Fi at the these extremely area is. important cloud, to the new a be wins other be X. an in well markets, of we look that's for part example, industry. some now. in category of that It going going grower business. got to we've and doing If We're

to at a top also the growing. across with very, the of meaningful of lot Skyworks RF general I that And has came certainly transaction products wins pack. in design be with a slab diversified broadly, being that's the think which just for that it's very number multiple categories going players the it's of we just

with So have room to all markets significant of TAM to I grow dealing that mean go. good into. Plenty very stuff for us we're there. these pretty, opportunities

diversification of So that. these try as new and of we're excited vector. more made our lot that about in strategic create markets We've sales a well penetrate additions to to force

So see -- but to outcomes those can in to the we just to going we're certainly expect and about we feel good it. it And to going driving numbers, to we're it. have have do you're

Matt Ramsay

little in follow-up, my you about Kris, bit as the view Just talk few next a your maybe could quarters. into OpEx

below it guys market given pressure it gross think makes a as anyway. ahead where the of broad the a some maybe with was And I that well, margin sense. But we hair you there's modeled to the of in for lot had invest in. particularly utilization, opportunity

you So just set the quarters would could on few if of OpEx be line, us next kind the level on helpful. that

Kris Sennesael

Yes. Thanks for that question.

the not business. everybody that the control there, can can't control markets end of the of can the our so some And and through, make the investments macro, we control, we're is softness And operating hesitating. but we in again, in And right? we we that course, of expenses some own industry going

going the we product without same cutting to good efficient on to for you But and little at really to we're And and efficiencies to the focus continue bang the our get just buck. key is the are trim again, where on And and been bit We invest have going the biggest saw OpEx, focusing a Skyworks into down at to dollars win. the technology able prepared we that, and time, effectiveness processes. from continue. remarks, to play as pretty road continue maps, spending development

will in support I the kick compensation a environment our about little overall, play that of quarter. of the bit year we level fiscal do That reduced start December growth. in was new we But bit because good a we of in. the of we spending the Some back also that that little variable as the top feel of

Operator

question from your Edward of And next Charter from Equity comes the Research. Snyder line

Edward Snyder

couple I please. could, of A if questions,

or some of in handsets. have. into stuff with guess lot that and a that there's how this Wi-Fi I And for is share high-end you much the units content going the been Skyworks lose handsets, that there's not goes earlier the First, year talk to CPE basis some homes given

I think both some remote well X.X you the as as have and all for and have flagship PAs had phones. X-gigahertz

provide could to you're color dominance actually? we of kind given the anything that. that expect half of moderate Should share in your a the there last Do little feel you not like second a your space this of on Maybe up you bit years, year? little giving over several

Liam Griffin

Yes. the Wi-Fi a stalwart and very strong. has is business Ed, within been that cycle the

technologies, We leap cycles, have a big amount I consummated. of is that technology. tremendous certainly great position, great consumer Wi-Fi easy, There's they're a into a in X and but X. Wi-Fi not there's going those two mean, hasn't you activity important been between we're know really these shape. and

opportunity our been applications the years. I over really best and customers like everybody that knows great I to it's think us think technology. And many several a we've in try And different we used the deliver that. so the got that's powerful solutions. And for very next

Edward Snyder

quickly I it become if the phones one some module, and most has transmit DRx is high-end lucrative already there. And could, of which -- the the modules out of Okay.

in but You really kind year been that spot increased so, the of dramatically. last it's guys own competition the space, that that has or clear for

lot after of I has et Qualcomm's it. to inertia even year is to that that. year about, fill cetera. get I talked We've think a in know iPhone. Avago Qorvo piece. seen always trying a Incumbency into tried with year now after

band. Is we that bounced back anybody the flip seen and of really haven't forth. That shares of case in this? the still the side incumbency Because help ultra-high this,

split getting year, it is Qorvo last a Qorvo You and bit. of This had it. little Avago year, some

incumbency think feel the you for -- in section, is diversity do just to dominate worth more trying continue I'm to and transmit you'll spot? a So think get that

Liam Griffin

And the outcomes. just differentiates is Yes, create performance And high actions, these to I lab X not fabs. our our the not having in people mean shoulder wins but wins and to in are work would talk. level, any it's I people chain a look necessarily think at flexibility and shoulder that can and that it customer, on incredible really amazing supply us. I at team wins what specific real

our Our it's know, factories we're whether BAW, technologies, you as using own TC-SAW.

are recipes homegrown. really those All

us. I think it makes it unique for

have love any or tweaking, technically, voice fine-tuning they a if the do could customers product. there's it Our in because it. And we

So we love that.

for you products probably hit And ball, customer, difficult you it's great that us. that really, supplier you're some it's of customers. for really are great to But products, more mentioned, those handle know that anybody. than and and These really fast with hard demanding the like if the able

of We more. So that. do we're more we're looking to love ready challenges, and forward to

Operator

line of the Bank your question from comes And Vivek from of next Arya America.

Blake Friedman

Friedman I customer. prepared quantify missed of have could that, that it this I And but might Vivek. your is addition if in largest from customer, percent This your what provide you're of in from you would on helpful? came remarks, that hoping be largest Blake percentage to market revenue to broad come for the was sales able the

Kris Sennesael

Yes.

June quarter of if So that see was basis, correctly, year-over-year continue on which the -- will win in with a do largest you big of that's clearly slightly revenue we the that math flattish, approximately XX% when customer total large the customer. maybe kind illustrates up, to you X%

yes, customer, and market that the bring and but phone, not the every that every the brought went And to with have we just the to at will product in you product as that in they indicate, market that future. they

that's find with home in you revenue in that and other about on roughly in content only will to products it also the will and the iMac in XX% the And Skyworks not that customer. in will but find and iPhone, the so the part it of And the you market. iPad or bring

Blake Friedman

of certain I maybe for And question cycle, China recovery just Helpful. business. X% only about know Android sales derisked account or exposure you of thinking the believe then the aspects longer-term early into a your the I they it. Got so. of

normalizes, to your a trying disclosure perspective think long-term get in terms just should the on as market of So I'm total revenue? about China and how we broad

Kris Sennesael

Yes.

right? less currently but less China is revenue. X% revenue. very than have than revenue. So than out, As currently, it's We of you of low, is X% also our yes, point still Google, our X% of our less Samsung

to is -- slowly. be phone As higher those improving it's but We of improving. customers, know, the it's from inventory needs level there overhang they bookings all overhang at clear, customers, we those that higher especially see inventory demand, most at

Eventually and predict the start customers. will to there be upside for win but again, be And hard because continue -- XXXX to that will that we it's business timing, then positioned. start we are the towards designs well done those of tremendous again, as will and with us ramping

Operator

And your Christopher the from next question from of Rolland Susquehanna. line comes

Christopher Rolland

love question. into Thanks for gross to the would underutilization. your and inventory margins I play and into get and DOIs

but would longer this, kind outlook You love hit detail bit a term. little in of terms on your of more

where So the get of for a assumption? And ultimately, reach correct you hang When you while kind there? want go? here to believe be guys Is do assumption I around that level? can the margins would do gross your you should DOIs think that until you

Kris Sennesael

Yes.

despite quarters. inventory, was two we quarters that this on down seasonal in absolute dollars inventory first, came consecutive the So where slightly slowest two our have fact now

into to forward stronger revenue December December. strong September September with growth and revenue further into Looking and and much sequential

days inventory. course, of inventory We and doors will higher in terms in of down on absolute bring substantially as revenue continue of well to

for take do to to of it get on is will $X billion below quarters point, about that. -- The slightly be And try your to or us or that. able to couple to inventory a but target

of couple as tailwinds side. picking And again. a in inventory the again, overall quarters up until will Android, broad will customer, until, markets discussed so of start picking business on gross the starts up the the this get margin sideways course, for with And we business we margin then gross reduction and our large the through trend stronger

Christopher Rolland

for Liam. one perhaps And

some into your feeling haven't guys this well, are call, of in you think putting standalone would opportunity But diversity your needle receive. you expect move BAW that? emphasized kind done the least you on BAW guys opportunities time. it year? I in at guys some to about have You How

Liam Griffin

Yes, absolutely.

in We of and have some that's infrastructure shoulder can lot customers in even things, good of certainly significant access products. BAW been there's shoulder technology, not these development, and and most a points to great a and deployments also we going other markets as But the of well. BAW work, a Think dive routers in that very shape into, product.

and it technology know there's companies how as only very unique, there So manufacturing and do that a technology companies it's a scale well very just also is can few and to it. and difficult do the the few a

hard a even aperture to mentioned. is have the filtering infrastructure. to really strategic. acoustic But as of and in it do and doesn't It's do, have in handset wave markets other you number around only, Wi-Fi some And bulk be we examples

key So it, it. are that technology. it's Not lot certainly listening to peers an easy do that but job. on it's folks There's a not a companies do of this call

we have But our worked aperture And have I well. teams wide. that quite think is the really

We to accounts. on bring more continue

a We in to levels getting of job really customers that of get performance do adopting wave. the -- you adopt also our of acoustic bulk higher good

we're BAW that of usually is more executing the there. difficult operating conditions, some at challenging demonstrated quite makes sense, and products good in really in and and So

Operator

comes from Stanley. Morgan question next the Joe your from And Moore of line

Joe Moore

your ramifications that potentially customers? I existing we back coming any with XG you think you? from long-term that opportunity wonder that solution? Chinese create long-term Skyworks. address create that risk own Does Just if to Huawei anything Does about its could should for affects

Liam Griffin

appears off that Huawei is It the right really shelf Yes. now.

talked We the Xiaomi forecast. not players. back still in to said even turn Oppo, for get you for the the to about there's grow. that, up and China Android opportunity a little the Having mentioned it's market Kris it opportunity So bit. Vivo,

not could of But it stage, opportunity this as nonstarter, a is change. working there. Huawei So really it's we're at a really in environment, But customer there's it's itself with. a lot that today's

Operator

James. from line the from comes question next of Raymond Srini your Pajjuri And

Srini Pajjuri

to quarter the December alluded well. as you growing Kris,

seasonal? thinking December? a we're we about you Android, should will be That given trough you're talk off how cyclical in to expect December can somewhat of coming helpful. about So about directionally If that be

Kris Sennesael

Yes.

quarter we that time, be to we've at past. you sequentially experienced seasonal and a the to up sequential we But that. do a directionally, guide December stick one As going normal I'm following in so patterns yes, know, expect to growth only

Srini Pajjuri

then Got Liam. and And for Okay. banning it. gallium about maybe germanium some has there Liam, news been exports. the China

Just wondering, those a you your given of lot use products materials.

wondering there's that you in on short the term if see that. Just any impact

Liam Griffin

We that no understand And note We've and very Yes. been materials materials. and solutions worry the there. I these teams for this deeply be the And right to fine. them We a and risk we we're have saw the I looked it. will the those using really for us our tell you, there's assessed behind now. while. it. at at wouldn't business risk should We've experts about little opportunity, there's in looked

about. So it's something that it worry not is view, to -- in our

Operator

of from Karl from And BNP your Paribas. comes line the Ackerman question next

Karl Ackerman

between cycle. current seasonality in inventory. be bit we're but I a the the is I was of comment, markets, I thrown and bit on down markets know a is window broad outlook the going to the might out usually But particularly able up, markets Kris, broad through September, think mobile you broad little in hoping excess

broad markets outlook So between perhaps September? if your mobile would you helpful. be highlight quite and just That for could

Kris Sennesael

Yes.

at XX have September or a the supported XX very years. over that have that with a big is content our obviously, customer quarter, last and strong large So we mobile ramp we especially the

in end is to indicated so a quarter basis competitors sequential some for most mobile sequential And very similar you is in inventory last to just their our couple at calls. that down peers mentioned, segment little markets, percent weeks bit flat what the broad the September coming and earnings those from the slightly right, overhang be of have there markets might reasons a of on growth of our over the two a

are not to We obviously immune that.

of flushed overall, well. There's there's think including needs I of broad as as automotive, well indicated broad But again, That are couple quarters. markets double continues inventory a digit are next that a we grow faster earlier, start out spots, positioned. markets will right? business, year-over-year. be Liam to the overhang little we Although, bit of -- couple in then And growing to our

Karl Ackerman

just it. if to that, Got I on guess may. up I maybe follow

depletion If your exits you it inventory the needed more year. inventory have once that is then But that the how outside clean flip Again, perhaps of channel looks could just argument speak broadly to like exiting the to is how channel side the reoccur. sounds perhaps it's that business. do the refill still we some is of channel handset you depleted,

level of XXXX look into thoughts in any this at Just broad a terms inventory higher you how at abates? overhang once markets

Kris Sennesael

manage first, inventory Skyworks right. clarification, try A to And maybe and for We more they at products then into that level, to Yes. in as certain a relates -- of is level. were the products the to didn't is typically the The it at issue level not keep a through put component proactively lot overhang the distribution channel the that at customers the component at expecting. customers the healthy and sell end components inventory fully level.

off. burn that so to needs And

demand, said, come will in of once it's back back to But yes, point, will the potentially quarters. going customer done, will, fuel from under stronger shipping as and and a business take your couple to is line like I by growth. self, to we end probably shipping that As come its with will probably transition that

Operator

And Roy Stifel, from of your line last Ruben from comes the Nicolas. question

Ruben Roy

you add broad in then segments I&A you markets that the acquisition, top got you of probably a went that of talk didn't Skyworks various about the piece, at And I stuff units on or through the was decent Liam, the you some think core timing and the historically, communications infrastructure. when from business. if that the chunk look you

give was can an so maybe And seeing. of And It if right next a and year of then visibility about that's right like this even you you're I'm sounds rest not what on a I into tough pretty secondly, us that. if year. and wondering market lot update now

that business. about kind to you're love thinking would of So understand how

Liam Griffin

we we great No, answer given in a last And in the question. already. no, side. record infrastructure the numbers should side. Yes. in actually, quarter, have have infrastructure But that the Actually, had meaningful actually I actually

all a we to quite handsets actually other that see and the of business the consumer strong. in with for infrastructure lot into that grow room chop portfolio. us So products, is some There's the of of quite,

a very have more the relationships, tends and and infrastructure industry there. good be cyclical, to see we're starting bit We to opportunity little

of like of Now markets XG and in just Wi-Fi some other is up in that. further technologies that even the moving some and upgrades in we see that

So important they're driver is a to and expect infrastructure very that all in solid, still be us, 'XX. but to we

Ruben Roy

Okay.

auto. a Obviously, mean, then a And activity. follow-up, sounds around going the up. I that Wi-Fi that this mobile, look quick addressing, look generally, half like maybe well of of areas some design just activity broad as how question second the It weigh these and into assess at as time outside versus you in has design sort of macro if of markets, against cycle high-level last things of kind another new are you you coming Okay. of I year? year would Liam, how you're the But guess sort you

Liam Griffin

with that investments. talked in The is discussions the got better, you, us really forward-looking. but getting that right and a ever engagements drive a broader it CapEx, gone to with more I having better through here been. play to design going about the talent we're we are cash now really better. Yes. The win is that's lot hits We've business that's we've organization. more more allow tell the it's and activity customer powerful getting cyclical put forth turning portfolio flow some than Operationally, and has into depreciation

it. I And drive business the a to have to feel these think getting as quarters we we is performance expect really great we the now, through good XXXX. and right can improve, We're about forward. starting pieces double-digit go So

Operator

Thank no Please further you. are proceed. this questions Mr. time. there Griffin, at

Liam Griffin

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

Operator

conclude our for participating. Thank all you. Ladies today. and gentlemen, that for you conference does Thank

You may all disconnect.

Skyworks Solutions (SWKS) 7 Aug 232023 Q3 Earnings call transcript