SWKS - Earnings call 4 2023 | Skyworks Solutions, Inc.

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Operator

Good afternoon, and welcome to Skyworks Solutions Fourth Quarter Fiscal Year 2023 Earnings Call. The call is being recorded. At this time, I will turn the call over to Raji Gill, Vice President of Investor Relations for Skyworks. Mr. Gill, please go ahead.

Unknown Executive

operator. you, Thank and Conference everyone, Skyworks' Fiscal Fourth Good welcome XXXX Call. Quarter afternoon, to today our Officer With Officer Liam is me Griffin, and Sennesael, and Chairman, Kris Chief Skyworks. Financial for President; Executive Chief accessed skyworksinc.com. being is of the can Relations live This from website call Investor at broadcast the company's web over and be the section

website the conclusion during In addition, will remarks after prepared be made call. promptly the company's available on our the

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

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

Liam K. Griffin

Thanks, quarter. billion, and million delivered fourth executed the well of welcome, fiscal cash flow. and operating volatility, of macroeconomic share everyone. during and Raji, headwinds $X.XXX of per posted Skyworks $XXX earnings revenue $X.XX We Despite generated

business During fiscal efficient challenging billion, despite model XXXX, our a free reflects a cash environment. flow $X.X was well which above macro

due shortages, COVID years and normal industry reduce returning the sectors smartphone the from and as and to While extending we of normalized historical continue excess lead certain unprecedented softer inventory. excess the markets, customers chain supply broad balance. Android times After under demand to adjust markets, rebalances. Within supply is see shift consumer a conditions in semiconductor supply improving natural durable industry modestly to to X demand are to as events demand to

of our these making growth and business. levels, reach to strategic actively managing are areas We diversifying dynamics in investments the responding by our inventory

are a perspective. when map, demand in We from and capitalize financial well flex road and capacity technology to positioned manufacturing

long trends. years. In our remain Over coming mobile, on see over content businesses. the medium our we RF In several to we bullish expand the term, opportunities mobile and markets to broad business sectors and

On the be will of innovations gears other connectivity, enabling driven content usage we additional and RF. Switching carrier revenue adoption in which anticipate approximately MIMO RF fiscal of to XX% broad path increases XXXX. of to total accounted for satellite by uplink markets, aggregation, further growing XxX in our bands,

benefit We expect secular to from trends. X long-term

devices IoT intelligent the edge. the of First, proliferation on connected

third-party electrification connectivity X, towards vehicles. estimates. stringent and more WiFi IoT, data-intensive safety for advanced third, we in to AR infrastructure WiFi safety adoption driving as VR, need several with transition telemedicine. Shifting drive analysis has gaming, rapid industrial positioned higher cases, from cloud content excited and additional XE video well to X to the frequency and cloud and And cycle bands including the and internal of incremental the high-speed requirements, and Within According and Skyworks in including is about Second, use XK automotive, electrification vehicles. and are advanced filter upgrade BAW. streaming, the benefit for applications. immersive AI-enabled IoT

systems high-growth lastly, digital to engines, driving. solutions power semiconductor chargers, such Wi-Fi, and reach segments billion. We connectivity, we Within EVs, radios ADAS infotainment GPS, as driven and powertrains ships and by in-vehicle $X focused are onboard content TAM and [ automotive for cellular autonomous automotive, expect RF systems, on isolation including for management ] opportunities, and Bluetooth battery

the We leading some have world. ability experience the the with in to execute of and at scale brands

over for smartphones wireless be Furthermore, higher-performance a high-performance capabilities upgrade more critical will fuel wireless solutions. Over we and more the and to significant led today, major complex for In spark us of which in our turn, a communication mobile nearly platform investments cycle. catalyst BAW. could is expanded XX% efficient than time, could addition, X for from has market, and competitive and revenue for within expect scale, technology in BAW our That's AI years, X we and made tied double smartphone years. the advanced be can the reach we've more the believe past last a AI differentiation. need We've

X which investment key of technology perfect example has in broad more business, our critical also our business. resulted new markets XX% for requirement represents Our a BAW design being WiFi in wins is of than the standard. BAW a

we challenging product ] aligned Android We products lastly, We IoT accelerated the with energy the summary, [ next-generation secular long-term premium trends. smartphones turning wins broadcast to NETGEAR's in X for deliver digital Samsara. In to a emerging X Trilliant maps XG advanced same design further expanding brands. Linx's and including secured road despite automotive quad-band highlights. [ XE And mesh in leading the WiFi WiFi macro by design management our customer our in solutions router Link's across continues to Now in models TP winning our system, Samsung router. solid WiFi, reach enabled designs triband onboard environment. battery diversifying are We and results At ] smart wins solid quarterly segments base. Google, and for expanded chargers, several in to [ systems business time, deliver technology several Skyworks ecosystem. our Vox including and and ]

outlook us and through of turn business engagements, and experience of customer quarter's Our call will for for fiscal will I that, to the strategic cycle's QX discussion weather resilient volatility. With Kris a 'XX. help performance this our model last

Kris Sennesael

sequentially. XX% X% down the high-performance XX% customer. approximately and increase midpoint our outlook. up of revenue XXXX at of total billion, approximately quarter fourth Liam. ramp XX% Mobile supported for XX% our slightly fiscal the sequentially of Broad revenue, $X.XXX markets total we of was the sequentially new an above solutions was as largest Thanks, of were Skyworks of revenue,

digestion in a XX.X%. see resulting our million, levels. of was markets, margin be inventory impacted margin enterprise Gross to factory underutilization continued inventory rightsize as gross to temporary continue IoT, we profit within telecom Gross consumer $XXX including by infrastructure. broad We and

our During billion million $X.XXX billion of track the internal ongoing our Operating are on discretionary inventory $X.XX that last $XXX of $X guidance driving to X% down earnings during the December $X.XX. generated call. of effective below managing X% $XXX We and QX, reduced operating $XXX further translating per expense and million on X.X% end by operating and quarter. to and million We diluted net of $XXX earnings margin given by year-over-year, of our an reduce provided income we it million was we the of sequentially tax down million expense focus the rate $X incurred we share and was XX.X%. of other income above EPS was into expenses.

were cash million, operations turning flow expenditures Now and Skyworks' capital in business was flow to million, cash Fourth free model to continues from deliver flow. million. of cash $XXX robust resulting quarter cash fiscal $XX generation. $XXX

we of the generated expenditures of $X.XXX Capital or billion For operations. flow were X% million year, from full revenue. $XXX cash fiscal

investments yield fiscal XX%. In shrinks including expect per intensity XX.X% our years We As yield BAW manufacturing After capital operational free well approximately from dividends with during a million driving pay of us of share result, a test billion capital $XX.XX fiscal increase flow QX, of repaid cash $XXX free flow and significantly our additional term a tooling we remaining to driving XX% outstanding available time prior margin focus delivered reduced free provides believe debt flow early an to million which we of approximately our calendar standpoint a an $X Also, demand record record of by footprint, our we our with translating and levels positioned loan. improvements, of a in and we we into structure cash and we million In expenditures the line XXXX, with to year filtering, superior intend we equipment in term flexibility on we are efficiencies our optionality. of XXXX, flow, the repaid die free $XXX year-end. of cash comfortable borrowings expand Entering $XXX major recovery. and through loan, capital $X.XXX moderate. and year-over-year, currently business billion, model. cash reductions, off and October, million $XXX creating under capacity. to are paid support We and during

on $X.XXX billion. to and for $X.XXX QX let's our move outlook fiscal Now of billion between revenue XXXX. anticipate We

XX% lower mobile reflecting expect to given affecting momentum, inventory of shift We impact business and a our percentage while cyclical markets, of revenue our is of as we inventory projected markets of the to internal the in margin digesting continue in broad range demonstrate lower of expect total factory utilization, proportion the Gross broad excess an to be outlook. to XX%, revenue. mix unfavorable ongoing reduction

increased in the drive full we rate XXXX. $XXX in fiscal to million Below an continue markets and mobile expenses roughly to we tax of million in broad range strategic make operating We as well expect line, gains other year for as and $XXX the XX% diversification. to effective investments expense million QX and $X as of anticipate share

per approximately We to shares. diluted Accordingly, million expect we [ line share for count diluted the the open of questions. midpoint intend share ], earnings our the of $X.XX. Operator, revenue be XXX deliver billion to $X.XXX at of let's range

Operator

comes first Wolfe [Operator Caso Instructions] question Our Research. Chris with from

Christopher Caso

coming suggested what markets December first December color I give the could to about detail if and you prepared was in you the mobile the question, quarter. for if granular still that the incremental give can broad expect from markets you some remarks some guess weakness the regard for with guidance. quarter more broad

Kris Sennesael

Chris. Yes,

business modest up we with the sequentially customer. the do have as And further mobile well. business continue right. largest expect continue improvement see to will quarter, the So December We execute be you as as to in our mobile some Android of in it our we the part ramp to

we will customer as the markets and inventory On to have excess sequentially our in channel as down the which as expect at level. we end of the the broad digestion be well flip we business, side, continue

Christopher Caso

That's helpful.

a what's a one space, we've actual we burning regard correction June can off the some inventory. been those bit bit in if think each As through are I when you markets in out to real affected broad back for March a was look we follow-up, little to Where we to with bottoming particularly do and a of and shipping for of while markets prospect and get the this going -- later. the inventory we here guess, consumption? And into quarters, go mobile the as obviously,

Liam K. Griffin

In that to This actually portfolio on absolutely the we very are, know there. we and X are dollars all is have eyes of mobile business, like we'll continue that, the where There's drive kind and and opportunities Chris. Sure, dynamics Liam. strong. the where

we just us, is side, business a of the inventory opportunity On wonderful been a through on markets the still that call mentioned broad semiconductor going the the and problem. bit other unfortunately, for a the issues cycle have here but

to we the Now are sell distribution, down of know products mute solid, channel. just the position cases, buy some I how fix of in all And through but levels it. and some sometimes layer think the between results. can another slow they These

it. understand we So

stuff driving the just ourselves what demonstrate our opportunity, can that markets more also and in success. broadly just lot of different markets. I&A working certainly a that broad execute to today, we whole gains we a portfolio Chris, data way in beyond business, I today, the been opportunities we've have or opportunities, and set those mean, handle with of but Some hard and you more see center teams There's that directly of drive automotive goes really it

Operator

comes question Karl next with Ackerman Our BNP Paribas. from

Karl Ackerman

please. I X have questions, Yes.

unit if next First digits opportunity. XG narrow foremost, maybe MediaTek your year, certainly next that of on down flat Android year. double smartphone to I expectations suggested just above should up units singles low and overall could grow earlier

Just in with up curious is I you of to that quarter, forward the you OEMs. hear opportunities the I kind expanding of and about December China Android think mentioned going some how mean have you. for picking

also the So Huawei, think, time, I at back in is coming same the market.

impact your to and is term the the then opportunity [indiscernible] secondarily, term quarter? China does Android So your I perhaps near TAM in near in in both opportunity hear December your for 'XX. what on Android ecosystem, Huawei China how perspective calendar wanted And

Liam K. Griffin

you China, sure. grow, continue unpack ecosystem that to we've been Yes, risks the running inventory here. clot. in [ for FOX the as to familiar in ] players. area us very landscape A the great with bit opportunities we of Clearly, we've and know lean. although been of We little to really conservative because the And know know,

So there's downside no there.

and upside continue lot more to a benefits more have of that are product. handsets we As start ability U.S. lot further, have a go of user. A type you in opportunities Those China to drive can subscale for to content products these grow. vis-a-vis still the

speeds for their to appetite the rates have to and technology get more So in higher data China and consumers solution. efficiency more the

of big buffer course. create customers. us players don't that and So Android through larger can strong Google forget, But really OBX, come from players a Samsung, with that like nice our

really And really very, a mix. always But a as to don't know very that's we unique think from see And our business, in it's good light signature room Skyworks. grow and I starting in It's a would everyone. we're with very the here, the think one to to I sell We think reengage. for flexible. not So I about us deliver you we that's OBX product channel. that I really part a issue. engagements that's in tunnel, are front think say, of a Huawei better execute can we to don't I Huawei, got that the want big has now. lot can we've And we be mean company. Huawei it's a But certainly than right technology lagged a of deliver. where But and to for opportunity as I

Karl Ackerman

a Kris, perhaps question for Yes. you.

about that space areas had longer the generation come this flow term, you M&A and how talked the a taking But thinking step your free team fact about in most you I guess business. that broad back, amount upcoming quarter. this recent have are the management within valuations given markets just cash the down across You of significant just

Just as any that on helpful would commentary be well.

Kris Sennesael

Karl. Yes,

The flow. there news that is very you're all, absolutely sustainable. it's strong cash First I we free good mean, have of right.

flow So many years a above come, XX%. well to we cash for free target

billion In will balance $X or By cash. -- a clean have $X with the about to be addition year-end, on we billion that, sheet, right? or of debt on about

so balance clean And we have sheet. a

of generate diversify ton so ton sure optionality we gives the to and in But cash will further us of technology on course, flow. maps. And a business, to continue making hand, invest have optionality, in we also a road product free invest business. right? That of organic we continue We one our to our

you As successful We're with a in know, that transaction we've very XXXX. transaction. done very happy

so optionality is there. And definitely there

Operator

Ruben with question Stifel. next Our from comes Roy

Ruben Roy

obviously the the go to of broad industrial Kris spread want of a I I commentary prepared and been has terms of I you or to. for you consumer mentioned while, areas of to and in And seeing Liam, could back that didn't weak I kind the in other areas market. the weakness couple think we But were think a hear automotive.

a there, there And quarter out seeing the playing so see bit can detail little or you're X? you that of what maybe saw over you in give quarter you what September us the how next on and

Liam K. Griffin

they Labs years that been X, And piece. really had actually transaction business little to X of glad well. Silicon a great We is it nod Yes. because brought remarks. I'm you the That's ago. automotive in bit question, X, at We the through a is portfolio. and in talked significant were But our all this up. the another growing kind really market prepared on We're moving that

do a the We're to very, and of Skyworks we're rattled number investing very that the continue brands, are number the We for names We and a an have off opportunity we We as incredible see of in industry, wins. design that aggressively. underweight. well.

big technology we're We not win, to have the enough yet. but

level, ballpark I dollars [ we're of grow. on of And hundreds terms But mean, of millions in Chris say so would a to continuing automotive. I we're ], in

to real not significant relative grow, and basis, got Skyworks, But we not an piece. look opportunity to to it's it's the of So is it's forward that. on scale absolute some a

Ruben Roy

of and what I that at you you to utilization in-source capacity outsource can guess, follow-up and you -- target remind but you a where where can you are details us commentary there I [indiscernible] of us you guess [indiscernible] I to sit the kind now in remind a CapEx the are target, and just perspective, you ended in-source quick from of of guess out-source sort around up terms a means

Kris Sennesael

Yes, Ruben.

are win a largest the we that's how that we only key and to also we know, our a developer That's at technology supply. word-class you not being manufacture able most customers of in-house, secure differentiator. As of technology,

we As TC arsenide And [ most amplifiers of our testing in-house, all do our all saw complex we very packaging you do gallium filters, and power in-house. ] and in-house. know, do assembly BAW we the and

Some in-house. a that's of And parts the for other like business acquired business footprint we've said and is that on parts years, efficiencies differentiator additional more outsourced, we us. key Having we, the is business capacity vast majority that, from of some the for us. INA operational the being creating have our but investments again, Currently, focusing into capacity that major driving for many done are footprint. expanding is

intensity lower. so going And will be forward, the capital much

last about You year revenue. to saw it was X%

digits expect revenue. the a mid-single forward, percent to it Going in be of we as

that amount margin improvements and cash And so tremendous a we have will gross there stronger of flow. upside free further drive

Operator

comes with next Christopher Our Susquehanna. question from Rolland

Unknown Analyst

This is Meyers on for [ Chris. ] Matt

talked annual So have guys increases. historically XX% about content you

curious cycle. was do from into how you think past year, grow then about think next should you we XX%. about can content another looking I this So it again, And

Liam K. Griffin

within Well, and well. embedded what of it's and certainly, see Skyworks continue is content mobile. from I grow is diversify already of our in level our you're that ambition going content to numbers think some as to And to a the diversification

So going of know, you for X breadth be there it's the not just X to but technology right is the as or products, us.

continue do to that. going we're to So

into like of work. years very, the us then execution produce. to seen actually acoustic demonstrate years [indiscernible] wave, already scale and getting You've technology things and well very tough very

but a opportunity little Skyworks talked really a surface So like. of like bit know we're opportunities about challenges kind the the scratching and and there. those we TAM have just already, automotive that we markets I are tremendous that

and that technology it applications. some going out multiple core we're of to So into port take

So think address. a really going be of learning of I asset to a a in us way. pools can kind opportunity look it's revenue more. and the we lot long it's fungible a for at And that journey great We're

diversification growth way. are in an outstanding together to the with teams and and executing challenges we're Our customers. top-tier committed matching And our certainly

Unknown Analyst

That's given versus on from ago? utilizations, guys And do it. gross margins, curious stand have outlook again, down? gross assume, next guys them about quarter, know helpful. utilization guide but margin into And be gross where I margin gross for next now Got how you your days I year? to expect thinking hit had then the are in margin down would XX you you where the lower And

Kris Sennesael

I our mean But of On levels. stable are on internal one still the factories is the now. the we right other demand is utilization our hand, further reducing hand, improving. inventory

And out of that so end December. the by will played be

to alluded prepared to addition of bit In mix that, little as we remarks, the have a in headwind. a we

we Now we've the December excess in little brought slightly due guided markets temporarily softer to inventory down and why a that's the quarter. bit

Looking the June terms obviously, see at of ahead, you quarters, reduction seasonally a see the if modest and of look up typically, gradual gross year, line. And is of slower during will March second September a of gross we margins. ramping that, beyond you the couple quarters. those of our calendar will you in top and then margins quarters. half start And again, December, and improvements

Operator

from Tim comes question next UBS. with Arcuri Our

Timothy Arcuri

of I in customer as had September? the you of largest percent ones. your about Kris, X revenue all, quick talk a -- first can

Kris Sennesael

a -- other we customer year brings customer smartphone, full Keep the great to it of every was XX% mind that in majority was but of that revenue. total that, that is basis, also market. content approximately September vast was of in total Yes. have The revenue. device approximately On the in for largest the XX%

Timothy Arcuri

I markets I off March. of quick the kind what is seasonality a would one, sort you down you in place that And of But for asking over can of sense, to think of Kris, reasonable base, be? XX% of consider Is usually just guess all about sort a about number is what through then mobile broad a that mobile a this in in I base know March normal seasonal and digestion. you this consider give us off as think I'm going March. it?

Kris Sennesael

Yes.

not mobile, mobile guide right is which just March think we're the So directionally, our Yes you not to it ] top that yes, way, December March. from But going in -- the quarter, XX%, quarter and down is were this to [indiscernible] revenue. But referring scavage is the XX% you right? in to total [ about seasonality. normal sequentially quarter. So

Operator

Our next Charter Edward Equity comes question Snyder with from Research.

Edward Snyder

in it's But underrepresented been your shouldn't for sell Android especially relative Android is as a a that So margin? the for to Android while. we customer, gross widely modules have Because I Liam, I many in mean pressure largest the performance than that price in the largest competition Android, think understood consider is at and of a more in on is chain an given you're and gains your customer. the bit pricing increased why today bit less it

So it. I'm just And getting about you when a have diversification I then if mobile, talk that's a feel follow-up.

Liam K. Griffin

I think in Yes. you mean that. you initial technology do. deep And what I and on agree question, and you know go we I you the the as with see on

And and resources wasn't kind very look in we now the landscape weak. capable of do -- some quite pretty bit. portfolio different deploy as places so frankly, we're compelling time of the other the opportunities, our a as more. a attractiveness at taking was the that But It We successfully. at to very,

and to scale in the think execution for little do more absolutely and time more. a be I the knowledge it's the to our bit us have aggressive. factories We

And going rather a So more want we're think bit a do So customers will work and think I little bit get more customer. a be [indiscernible] company the for good shareholders. there The our more of it's to and a aggressive. it the than been from choice little I no-go

Edward Snyder

our been that's Yes, impression too.

the in especially modules to lot increases customer, had where a of you in the I last could, -- look if not largest But last than So we've existing tear know the fewer modules. time, your that's identical largest on had modules you down, be year. I year-to-year, content clearly there's done to then all and is

a a modules? a not, trying content you just did -- increase content round in your if in where where I'm in one, guess, in because to [ kind to the happen So year? get of see a mostly to up if latest ] the wouldn't for were And morotor two, what's feel try feel I material existing that why trend gains you're to mostly, to modules persist going future giving for few get next

Liam K. Griffin

you mean Yes. shareholders what customers. answer we do to know, exist. have interesting didn't know-how. really our create our I we lot we're company, created always best lot the extended do business can our technologies we very to and and We and going -- and always the do. do, a we we've categories as mean, of things. bench can of that's everything just the there's very, best a opportunities that outcome as a and And I for And of

see the the that have, more. we'll doing with And Also we're relationships. do at have more that customer, Skyworks, the others. to customer, high-class on happy so talent continue largest to lean leverage great but we'd like the engineering we that we scale to that customer really and outside

RF to But we continue us through look in the technology. drive cyclical to clicking low for to in, the setup the again, we're going steps the executing So certainly is going to in and all that forward this industry. improve

Operator

next question TD Matt with comes Ramsey Cowen. Our from

Matthew Ramsay

with peers spend think trying pieces broad Liam, to the of on the a I But little surprise huge wanted what's broad weakness. markets given your the a markets I that unpack of industrial it's source of markets. bit many different the to with is time of don't going so

that had I'm there. telco interested it. to mean I business to -- and weakness been There's turning. what's maybe you and timing about China infrastructure the on and consternation going would guys I from in So [indiscernible] wireless that that's about exposure hear unit Slab EVs acquired Tesla given

[indiscernible] on So have just there's to some in with IoT, going given isolation places. there, that things of those in do what's some business might

If sure. maybe some I'm -- I'm for and you could missing subsegments sure just

what different to are closer end walk buckets? correction of And at. the you kind of the get those they beginning So could trying we're is just anywhere if through than the to I'm

Liam K. Griffin

threw appreciate mobile I think going we're I industry. got the I'm of markets. I -- execution getting and have think as you. franchise that things And tremendous technologies. it. that, obviously, you question we No, Skyworks, here, I that's glad going But broader you. that built the I know-how that got the you it's have the and it. with for the with everybody very with continue go start around we you. through really I'm got better incredible to that with our really I'll get technology we our And said, an have, profitable we markets scale to tell in what I But have, adjacent we those scale, and know-how. and we'll to in one to and leverage we're our a interesting, opportunity I into take technology that

but now right maybe be it's where we're a automotive on to big, level, problem. not for macro the So that a slow us, going

automotive, from you wouldn't XX% like -- talk X%, XX%, we us. has get X So up a XX% going XX%, cars look about [ Skyworks going the and XX%, at when down, opportunities from piece. more into meaningful you the big you. years when it's Silicon to hurt you're business really to share or ago, markets and ] now growing only you're XX% I&A at you're and for X player Adding a they're But fueled all, Labs in knocked

design in have strong portfolios X, years are now, X data We've lot that. right So ago. there's didn't center got really like of that a WiFi opportunities The wins now.

to broad to X I recognize of that be a is lot think going categories everybody significant a in the catalyst is going WiFi enabling industrial. growth to for from industry consumer

So we're really about excited that.

technology today. that the do have to We

good than the heavily you've So really we're I and everyone real on it ] that choose market. that news call different end mobile, on But there's and has of when we the trying understand the broad markets, there other in mobile, and the to points. ones. to a But are markets, concentration. all the go so [ think this view not a good technology right is, lot not you got difference broad that probably We're many pick constant is

get So technology to the deploy know-how, you now today, better, big diversified teams we Skyworks the hit excited there's are play how we but at and markets. a way long with that. with ability on And fastballs about our that scale, we're multiple that a get can across from the technology can toughest with customers. doing And with even

Matthew Ramsay

a gets companies on into now. And of balance and and it. been of to and it I get we've Maybe don't sheet like competitors this end structure sort the through. yourselves through lean correction margin going balance there those just diverse markets and lots mean, Got the sheet maybe are building of while have markets the some the broader for -- and smaller imagine have bear sort scale better. I to that it it until the

how my isn't is now? is, M&A funnel not, right it's So it? guess question And the why if active I

Liam K. Griffin

happened companies of Well, It's X years, feels and wild ], on, off some ] [ activity [indiscernible] one the it's [ are XX it Yes. of have So pretty that up those right, in dynamics seeing really significant things. strong swings place. with until lot clearly, right? like it's down,

not honestly, to strong interesting very, picky. in of to you time. than get has I and we've and there do time this position are deliver of what week fortunate know, kinds in in do case, Skyworks, there's think to the And stronger, seen other for get we're are we kind think I And to performance us worked I I to think very opportunities are be M&A of at But as put kind cash that think So will the really more in to right probably the hard on. This been long know going I I've we're a in markets. semiconductors as and going well. like side, and the the going a transactions.

stats. an us these free the mean leverage that sustainable. opportunity take you for look are margins sheet, it's cash flow advantage quarter So aren't the at I to balance one

And how mean these I be so company say our around it, -- very because we of know will it's to yes, is. continue we good guess, will transactions I some I

definitely there. is that on up step to opportunity the but -- So

Operator

Arya our from last comes of question And of Bank America. Vivek

Blake Friedman

touch past, This nail between on I wanted hard the you I do make on precisely fulfill. determination So in to the China how many for market. is share that Blake smartphone future how know on been to orders Friedman [indiscernible] it's down in the Vivek.

issues inventory So there's thereafter. no

Just walking that through be would process helpful. us

Kris Sennesael

So multiple China but players. is there in right? market, market. you inventory, complex some as There's excess still the point out, And a it's --

Some is that of domestic the for market.

mostly well. on that They low flagship of market. maybe or to XG the X models is export also X level, down Obviously, for into flagship we mid with steps below It's Some a in as been is focus going That, potential But market bigger the all has level, also, down. XG. coming that. export and still translate have focus of way course, improving. domestic their of There support them the excess level, course, on It that markets. we inventory. some

dollar on the and X on up relative of correction. basis, think we're necessarily the a completion with been end revenue -- percentage Android I been basis are an the the Liam substantially a tunnel, light seeing substantially it quarters but on sequential absolute at up not been China X, a percentage said, inventory for we basis, has on we Our now basis nearing has has of up as towards are

have the with design wins those We customers.

in to believe us going of are there, -- And I a see quarters. couple ready the we a are there. next I in that we don't It's process. snap And will you and back We well positioned, will to I process. think gradual it's see to gradual be personally go. don't a are you continue

Blake Friedman

Got over seen developments walk can like, through how following as I the the past of be domestic what X to moving us X just domestic And years X from you within well, guess, you've you And just up or China. will if think then X guess I kind now? there competition competition years. maybe maybe it. forward,

Liam K. Griffin

there's to an Certainly, have there. opportunity a in China. And and handle broader from markets upside perspective. widening there the markets Yes. the Ultimately, is think that [ the we mobile gap technology the we technology ]

lot have's A consumers, you a is if a in great for ecosystem, for to there. the hasn't that. some back There's drive about and the ] lower us us. China you driver But a kind but been for Box that end. [ there's go to of think have it continue So of segment not's It's to opportunity really

the look team, markets of when happens just about were is around as course, continues this aperture there, talked we We And to well. our lot a the us should other energy and as very sheet, with of in be well done aggressive There's continue before, unique. also tenacity an at opportunity a mobility. as lot that a will of that of been What great, the segment. heart, makes scale haven't is and But as stuff the to our balance is widen. a us the for operations, but we a there's we again. We at demonstrate markets about, of we it's IoT, take the lot the to automotive throughout go we [indiscernible] in-house where energy talked some of us penetrate of growth where the around

Operator

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

Liam K. Griffin

all for call. quarter. talking to on you conferences during forward We look again. in Thanks the Thank today's to upcoming investor participating you

Operator

Ladies your call. We participation. conference and gentlemen, concludes for you thank this today's

You may now disconnect.

Skyworks Solutions (SWKS) 2 Nov 232023 Q4 Earnings call transcript