Skyworks Solutions (SWKS) 12 Nov 242024 Q4 Earnings call transcript

Company Profile

Participants

Rajvindra Gill	executive
Liam K. Griffin	executive
Kris Sennesael	executive
Peter Peng	analyst
Edward Snyder	analyst
Timothy Arcuri	analyst
Sreekrishnan Sankarnarayanan	analyst
Michael Mani	analyst
Karl Ackerman	analyst
Ruben Roy	analyst
Srinivas Pajjuri	analyst
Vijay Rakesh	analyst
Nicolas Doyle	analyst

Call transcript

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Operator

Good afternoon, and welcome to Skyworks Solutions Fourth Quarter Fiscal Year 2024 Earnings Call. This 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.

Rajvindra Gill

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

to will future would I to everyone include like are statements discussion may statements. relating and Before considered we begin, or results that remind that expectations forward-looking our be

press Please any refer on to and forward-looking statements outcomes to filings, our on actual for cause earnings including report our made information today. Form differ could XX-K release annual materially from SEC adversely that risks certain recent and

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

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

Liam K. Griffin

Skyworks flow gross welcome, met of of revenue fiscal posted exceeded fourth of Raji, We quarter million. and $XXX guidance. free our the during EPS the We executed $X.XXX generated cash earnings and well per XXXX. $X.XX billion. delivered margin share and of Revenue of midpoint Thanks, or everyone.

continues Our business to model deliver robust cash generation.

in was year For invest annual and $X.X technology above well flow providing road a billion, future the strong maps cash growth. in to our second free to product a foundation row, support

inventory product and continue mobile, further and quarter we customer growth normalized, expect our in we sequentially, channel December revenue seasonal as ramps. and support In the orders to XX% grew have

develop customers, our reducing the and solutions leadership collaboration in technology more with footprint integration reach, our our packaging, we mobile high-performance close increasing and efficiency. advanced drive and on energy connectivity with position expand best-in-class Based

transformative the of demand complexity. ignite upgrade for is that smart to RF a believe We levels higher AI phone poised cycle, propelling

evolve will intelligent to powerful advance, support demanding capabilities more to AI into smartphones solutions companions and more As continue functionalities. sophisticated enhanced their

stages well multiyear early seen the modestly markets, uneven XXXX. December inventory in capitalize in and is we of certain in are on and demand Skyworks stabilization bottom dynamics trend of the of the to grown this have signs We Despite and high quarter since it. In have broad segments. positioned customer

IoT, Long demand data bullish XE WiFi safety systems, and which and content term, as markets, we bands. AI-enabled remain carry and broad as increasing secular automotive improve Edge In advanced Edge and in continues given X adopt to upgrades. customers trends well electrification, driving on higher IoT, workloads, additional dollar as to systems cloud center complexity due

We a are upgrade early X shipments cycle ramping. the multiyear of now stages WiFi with in

at infrastructure elevated, the data is levels the stubbornly beginning recovery. the in delaying of and remain indicated we traditional year, As wireless center inventory which

to continue demand. undership We natural

medium our road over and we targeting However, map the centers. long to design product term, remain AI bullish funnel on data win

revenue work across automotive broadcast Despite Lastly, connected for and we continue markets power into design digital convert near-term and and global Tier OEMs to headwinds, excess our markets. EV solutions remains muted and Xs inventory. in demand as wins car down connectivity, isolation industrial the

Linksys, Galaxy, X design for business and quarterly WiFi smartphones, TP-Link. pipeline our Charter, and content Google our We CommScope expanded secured Oppo We premium X, Pixel XG NETGEAR, others. Android highlights. including to several Samsung win Turning with OnePlus

wireless advanced applications, for IoT emerging aids. we clinical-grade solutions gaming audio For hearing powered and

digital win isolators. in Lastly, including modules, we automotive front-end increased infotainment our design and momentum XG

the profitable investments while that team drive growth executed a the challenging make diversifying summary, overall to intend We macroeconomic Skyworks cash well generation to despite climate. leverage robust long-term business. In our critical

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

Kris Sennesael

mobile fiscal we fourth XX% quarter supported sequentially the midpoint as profit Skyworks margin billion, revenue, Liam. at $X total total grew was XX% the our ongoing was of of XX% million Mobile up was of approximately up with customers. line Gross sequentially. actions. gross above for $X.XXX successfully products XX Gross points million Broad our revenue XXXX sequentially, of Thanks, $XXX the ramp XX.X%, outlook. expectations. reduction approximately slightly with revenue new at basis cost reflecting markets our were margin of in

expenses margin we of X%, were was strategic Also, of of operating in of of and and inventory, road resulting product our share diluted reflecting consecutive operating our income, per $XXX reductions. of in our reduced $X.XX, internal during which investments $XXX our guidance. earnings income We $XXX further translating million effective QX, technology X quarters an million million, maps. above $X.XX incurred XX%. delivered and other driving net rate expenses, our is $X We into tax Operating million

quarter, $XX million, fiscal we million, of operations cash flow a fourth impressive cash expenditures or free delivered capital at XX% the $XXX in resulting cash During with margin. at $XXX million flow cash flow free generation, from

cash year record our we flow cash and fiscal generated share cash translating into margin, free flow in XX% yield of $X.X XX.X%. $XX.XX billion free XXXX, approximately For per ended year of well the approximately row second a a free flow cash over and flow, with of free a

CapEx of robust and moderating profitability, flow intensity. prudent through drive levels to continue working We capital management cash steady

fiscal dividends. $XXX providing and optionality. paid debt, we with us in and in billion, Cash $X.X investments grew to $X have excellent million During billion QX, we approximately

of midpoint. on revenue move QX our at fiscal up anticipate to for let's $X.XXX XXXX. Now of We billion outlook the billion, sequentially $X.XXX to X%

recovery sequential be to a In we return markets, growth. ramps. sequentially, automotive, and We modest the broad expect networking. measured our more year-over-year growth. anticipated, excess segments product digits The like infrastructure pace is to further we select of anticipate business inventory And driven seasonal up industrial, in mid-single than by mobile given

sequential increases to variable including the a in compensation reflecting with fiscal XX%, million, we the typical and at to of is new range operating adjustments to margin projected accruals. million made Gross $XXX year, be $XXX expect of XX% start expenses

diversification. our are we addition, generation maps and to In and drive invest cash technology flow in leveraging increase share product road to strong

other we count line, income the range we $X in approximately rate and the deliver billion tax of XX.X% million the $X.XX. diluted share midpoint of effective at $X.XXX of Accordingly, anticipate to of intend Below shares. diluted XXX revenue share of million a per an earnings

Operator, for the questions. line let's open

Operator

[Operator Instructions] question the from of Peng line And JPMorgan. our first coming with Peter

Peter Peng

your Good you some And talked on Can weaknesses of trends the job can about seeing? mobile your your this? -- execution. about on what peers portion kind talk you there. are of business, think Android I you

business, this elaborate the can a part know I but of what seeing of in you you're is So smaller maybe business? Android this your part

Liam K. Griffin

Sure, absolutely.

have and Google. In fact, the a Samsung. a we doing great with job Android very players, been great, also robust specifically pipeline They've

So there. we wins design have incredible

us investing for a they us. gives Fortunately, well. Skyworks. diversified technology, also It to the great technology in are opportunity those has and demonstrate performance we're that moving It's seeing in as scale reach, our portfolio match in really amazing for been an a devices our

we're very that company. a and we much as So well business, expect doing more in

Kris Sennesael

more the so set, XX% with than $X China is Right. of that right, And Peter, $XX with last is with just players. or to quarter. XX% is billion in we just revenue less million revenue less our than than in Android Google, XX%, revenue of the half quarter is did Roughly Samsung level of in and

our that derisked talked have definitely we before. with position China. about We've So

as very that China. it are Android We part to with business selective Samsung the relates of in

connectivity. are only is playing the to but those high-performance what which RF with they We customers, value areas where valued table the in bring we

who with well really relationship the our phones, out and road phones that's map is we a Google. a in that plays them. That investments lot AI-enabled music ears, making why Google, and all have lot drives complexity switching a are the of their that's more strong with product who to inside

Peter Peng

December we , Perfect. And you see be growth. might talk for the a this fourth on be sustainability puts quarter, that lot going you that know think, some your into you growth about look sequential that driving probably guys Or can there's good quarter it's that of of to kind XXXX, broad But will to as in impact XXXX? I there's takes seasonality and think do the of I then the into of recovery? business. market,

Kris Sennesael

Yes.

absolutely so right. And you're

is we markets growth all infrastructure We point, our sequential at really but networking. have for like that seen bottomed accelerate, a still And in business mid-single in a we and we some guiding in industrial, of broad growth, that December the now excess row going the markets is modest we and anticipate There quarters inventory growth, is. know sequential to growth to sequential digits and of quarter XXXX, X December are in markets return had in a the broad Our the year-over-year quarter growth somewhat business. do to why now. in further modest that certain again, year-over-year automotive, certain not

shipping to accelerate. natural but demand, going under to clear eventually, going is and are our that's growth We eventually,

and with are with and remarks, engines We where we WiFi safety the see about to centers X WiFi aligned with we Edge networking in where very prepared IoT AI play upgrade and advanced secular talked in XE in in our devices an broad electrification. timing well from data markets solutions. some well growth we X, automotive our as And systems as

mid-teens all macroeconomic put in so broad year-over-year. markets that we environment, still neutral the this in our I together, term, grow a can And longer when believe business

Operator

Edward Snyder with the Equity And our next from question of Charter coming line Research.

Edward Snyder

our there's touch on there's And with some we could specific terms to guidance your can guys, changes. from largest with in temporary what's customers what bit not kind to appears going some feeling or XXXX, be going obviously flagship for that, of temporary a your that last of of but already gather, content teardown additional from Maybe Thanks if lot. little a upheaval. it's clear changes has What's on phone. we the on in caused be

your in out of AI? moving of say, kind of in What's from given know a from its X end way, big growth perhaps flagship for there. of the of years, of map And the I in grow we've here. make that on RFFE, this a you lot the term, about then and road content things of terms a follow-up. have starts content they -- seeing long there's the to then what XXXX me front your moving back terms talked it a ability I AI past shift in are impact generic when So view put of XXXX -- pieces gain lot to let

Liam K. Griffin

Okay.

tremendous Okay. to for bench. there's in technology grow continue that Yes. us Edward. an incredible got We've mean, I'll with mobile. I opportunity unpack certainly, to you, a

have We the scale.

partnership our We you a have do very largest have know, need. what I'm customers we our we and plant, good And to have the customers. the flexibility with sure, physical as

had we So that we of to Certainly, people expect work, on both so popping the our way. but have quarters couple great back we're and got now. last and We've going great, weren't it forth is more to sides always up make growth.

at If have it's you we putting look the the that done. execution to very, very that we're team definitely road forward, make and map potent,

take a It's scale, little the people. going we time, but of to the we course, have have

we most important We our have And happen. the customer. the ambition make of most have to it confidence important,

Edward Snyder

if I Okay. Maybe up. could follow

customer First, there do RFFE. in traction are terms indication housekeeping, slots customer? then any you. good terms you've at or what becoming Or while. all say, your for larger I in or to you next, the right for Samsung you secondly, so sands prospect that think year for there at seeing in a it And of largest of a fall? the percentage of the the available that design shifting spring And underrepresented now? given What's again, you a get that was in Are let's open more of been are

Kris Sennesael

our up revenue, September in of So total largest was customer was XX% the our quarter, which approximately Edward, sequentially. XX%

customer, And the their supporting Liam our question. So products. I'll of really turn executed team well, the new over it for largest rest to ramping your up

Liam K. Griffin

growth. just mean, the making We're I been there's at deeper opportunity investments to those really opportunities there. us sure. going say for Yes, pipeline we've are Skyworks that the diving technology much of spoke, in tremendous that and as I in some would platforms. And yield we have we

right kind We're that's opportunity. now. looking a There's executing. we're what of lot So at of

that progress so making side speak, and There's right solutions. expect engineers under go. the our can our partners. incredible on is on the as AI some incredible to with Skyworks really are And you get We're lot hood, ready with people into Our a more to next-generation there the going world. you

and very So that. we we products forward done forward shortly. putting that is should now, to work to That look being into look

Operator

with And our coming the line question Timothy next from of UBS. Arcuri

Timothy Arcuri

most -- in would talk I see It because you that customer Kris, than what but did. mid think thought some others pull-ins did just little can customer the about you of it's you Can what's higher included the is like down into about kind you September talk Usually, for maybe like pull-ins. of largest December, flat for a It that that? it about December? seems was be.

Kris Sennesael

Yes.

First all, into I but we the of customer, large fully as demand you go with specifics it the that our line business and can't really the expectations. can with relates is our tell in

see surprise demand expect or is any surprise any see December. expectations. any don't we didn't So with The September, in in in line our didn't

a so up September expect the up quarter, basis. I X% on XX% the large sequential answered to December just and the quarter And as it in question was before, we sequentially to the the further in range be customer XX% in

Timothy Arcuri

would strong free you it flow. have a then kind of And that Kris. might Can stronger. I thought quite the talk. been the Great, repo little despite have cash I was low noticed

Kris Sennesael

Yes, Yes. absolutely.

to that account And billion the into we all, have to strong well second flow. business. of necessary we take free investments in as first that cash in the continue more of And as very So for make here the right, flow. row, I cash time we prepared does our indicated remarks, highlight than in $X.X do a free that want

are opportunities. our technology there We to We know are, where strengthen opportunities and continue no making there's there. to maps, we product and those the capture investments necessary the road hesitation

we couple as continue seen to to years, footprint, last invest flow but in so our a very have addition is well, manufacturing moderate more much although there and our In at continue as we of the strong. free cash that, invest to in pace we

Our healthy. very balance sheet is

billion we have and billion of $X.X have maturities, sheet no We the $X of near-term cash balance only on debt plenty and so in optionality. with

cash dividend we're program disciplined, optionality. We optionality do that have to and to but a remain we our combination optionality buyback share you through have know excess the have to we to our shareholders back M&A, going although And program. us, return of

into return I multiple dividend program, and buybacks. do X% the the and But back can't the the all elements. a it's we the share share to considerations. excess into are those the consideration Board intent increased The per we account really the time. dividend to and said into really optionality continue policy, management Having dividend nice cash taking shareholders a just team details turning now to as that's recently that, On $X.XX matter And of to yield. have our of to over so

Operator

And Cowen. from our next of line question coming the Krish TD Sankar with

Sreekrishnan Sankarnarayanan

your Liam March what for the kind the December quarter just large the I'm had of history, the thanks you and imply quarter, I demand to when for trending? quarter follow-up. does is compared customer. how Kris, curious, linearity And December at a color on seasonality? look that

Kris Sennesael

quarter. on the strong December mobile down, in and especially expected, expect March will Obviously, March ramp right? just going we I a answered into with further previous again, our we seasonally It fully to what seasonally again, be quarter, So playing September down. is repeat I in followed with ramp here the what question, in line is

Obviously, quarter one time. we guide at a only

expect markets normal it's will our So do, to continue combined, modestly early course, we be we markets grow as to or have the in seasonal for quarter. be We But too broad quarter however, normal the beyond. into business sequentially, March Skyworks, specific. and more of March and declines to to expect broad up

Sreekrishnan Sankarnarayanan

long should be then WiFi it's historically, And growth inflection we cycles? quick It cycle? versus And has this pretty a upgrade lasted like you. prior profile for WiFi for that. cycle. just appreciate how a curious Really good upgrade how about it. would Got think I'm the the seems on been follow-up X like how

Liam K. Griffin

Sure, had right, here for mean, WiFi you're a actually, while. muted somewhat the sure. I Yes. been cycle

companies Fortunately, generations looking with plays the Logitech. got solutions, great Skyworks We've Motorola. WiFi next like team, WiFi we're X. well. some with in The there in position. working at as We're We're companies like automotive

It's play We're businesses markets. Mercedes-Benz we're industrial there, been market we're a another better. broad auto kind Communications, Charter but with there, it coming we're look engaged been in up. NETGEAR starting side. on to the ride in even had rough are the So of -- is

there's pipeline and markets. revenue. the broad through here So design of get strength in lot is win that activity a been that and filling, the just we'll It's

there. about we're encouraged So seeing we're very the signs

Operator

Bank Our next Securities. Vivek from with America question of coming Arya of the line

Michael Mani

This worse the over is or start, Michael just days? end Arya. And to Mani on To for the incrementally markets XX which last Vivek markets become maybe just that various still broad across have undershipping in, demand? where areas are you better plays

Kris Sennesael

is protocol. right, mostly in improvements X step-up There a markets, any is big transitioning XE parts. play that connectivity part from other broad in -- with connectivity X but definitely in we multiyear in WiFi, the So where driven the the seen and again, transitioning IoT area, Edge WiFi there's happening content We've as by wireless to X.

definitely natural still undershipping we're there, think somewhat there I but improvement that area. demand in is

Second part networking and cloud. is infrastructure our

worked there. inventory I take think down. That documented quarters. well There is excess that's very will being multiple that's

some started under Backlog still is we shipping And natural demand. seeing and improving, is Bookings industrial. it's think have not you automotive but least, I improving. then way last improvements there. but

by who very as that's of our well peers talked about part think of well I business. the documented that many

there. soft ramp X book a undershipping that we up doing to we're well think into but we it's a wins to definitely natural are environment. design turn revenue, wins Again, -- and given Those ago. on I fairly year put We're have years some demand able or design the continue

sequentially, grow although eventually, And improve and And year-over-year on why, over continue time accelerate. continue growth time our hand so are sequential pleased I that's year-over-year accelerate well. as will growth will as modestly. Again, over we whole, that one growth December a to that here. will that to markets think that But

Michael Mani

margins. on then gross just Great. And

that might markets or what contract gross factors? for the this flat a do And an previously, mix Given broadly, you markets margins, the expansion essentially takes rank at more here? maybe puts return you other expansion know I guided broad you or into achieve and XX% gross think are expected but a measured greater as important utilization, be XXXX? between broad in product would to more any to as December and margin about how midpoint, then upturn taking drivers most eventual think recovery from about the what you order

Kris Sennesael

Yes.

to relates that's basis was the so step direction. it we as points, up So a in which right gross September, XX.X% did in XX margin,

For XX%, midpoint, but December, of we flattish XX%. to range guide XX% kind at XX% to the is so the

ahead utilization Looking factory gross longer because broad to above-average and 'XX improvements term, to fiscal out drive mix through and has you we margin as correctly, margin compared cost reductions, called markets the mobile. a better have gross through tailwind we

the cost I on execute the team over will well. think initially We as to continued right? as internally anticipated, sequential start factory we on The we talked already, is reductions time, accelerate. currently, as executing seeing team not as markets I But some is strong improvement as well mix blowing the externally. But think well broad utilization. the is tailwind modestly. growth

so mix as tailwind is there And not expected. as strong the

back the We of set is grinding will, to 'XX of well in gross our now, compared fiscal us of fiscal to to improving for start be as long-term we flattish fiscal 'XX the margin 'XX XX% full keep result towards gross can gross basis, And margins 'XX. want and to on then model a a fiscal margin. we're think going It to that, of and expansions XX%. end up as year course, As that get to target we further beyond. fast going for

Operator

Paribas. question next Ackerman Karl BNP line coming of from our And the with

Karl Ackerman

with range, to days continue do Kris, markets inventory that comment XXX I continues regard make on want I inventory days to up the reducing an in to gross fiscal you now you target because strides improve. to margin 'XX. have just guess, follow good in broad

normal, And should presumably go margins up. days at so if inventory are

and inventory what the of with over the up comment quarters? days tying stepping maybe couple gross how again, were margins just see your So comments that next we around

Kris Sennesael

Yes.

our now. $X.X and above $XXX been billion, now have It X First peaked reducing for well to a down row of we at quarters inventory internal than are we all, less in million.

think more. inventory down to I it's from gross a thing not little bit to It's a of that's right from I helping of we the Obviously, can helping margin view. point factory think do. view. point a not utilization drive But continue

the we a rightsize I that to can think want And still little We reduce bit. inventory.

to And so be again, we 'XX all there, fiscal in have I -- We think and towards there, will together when gross you seasonality will going have it right? improving seasonality. start put margin is flattish

goes in go is margins Inventory down. million, from little days, and The absolute then gross revenue an doesn't improving inventory down start revenue to it quarter quarter. the March down and there the again, so bit and September point we're and of on Typically, and seasonality dollars seasonality, June in But December the $XXX drive further. sub view, follow continue necessarily the a side. up

Karl Ackerman

Got it.

the of As And environment to and so? free is generation because perhaps do can flow not, on reduce believe ability aggressive buyback, from cash if favorable follow-up, more a strong M&A in inventory, be funding more very the perspective my your if you you and further regulatory 'XX?

Liam K. Griffin

a been us. I great, mean that with kinds forth, for have is great that the we've there's flow Yes. which tool of we putting cash options all

looking factor. M&A or play always the optimal it's we're So for an whether whether mix, another

Skyworks, hallmark great cash, a are drive and it's be ability so company. going And that testament of and of those this options it's to a the for to

very will I it's at about the well, and We're the go everything. think strategy been think We disciplined. look we for So forward. of a it We continue worked be shareholders. longevity that's think our us really and as to purposeful we about technology, quite

Operator

the of from coming Stifel. Ruben question Roy line with next our And

Ruben Roy

the if had to how IoT wondering, about AI Edge You've about IoT on And lot Edge talked on are start a question Liam, any, just it. with. thinking I business? the a impact, side smartphone you of

the impacts out should months? over be in as XX, investors of AI we thinking if next Just and anything potential wondering about XX there's look terms

Liam K. Griffin

absolutely. Yes,

most of we've side, the customers the smartphone entrenched I Certainly, excellence. together, a driving things. on deeply we are learning with couple got executing So and important think

doing key, And there. companies with now really flipping are to really, space that well doing we're broad and in the we're the great back but engaging hallmarks markets, the that's in business. work real then very, IoT So very really and then --

but design We've We Mercedes. also wins broad got the businesses. Samsung, with markets talked about Google and

have wins Networks, with that earnings portfolio We with team now really companies design markets. NETGEAR, for in more And to our XXX% meaningful continue Cambium really, cash that we I'm diversification that drive of part and more Motorola, confident us. will broad have are that more opportunities, more and

forward look much So things there that better that, to in but market. look

Ruben Roy

ones of about initial the charge Any the couple can CapEx 'XX? during a view on we was finally, what a And for think to? that related And quarter quick bit. tell up on ticked Kris, CapEx for and little how about Kris. then you fiscal us should impairment

Kris Sennesael

Right.

did acquisition did take related the to QX was we to So an Labs. I&A Silicon R&D impairment of we in-process in with 'XX, charge related which fiscal

you probably have identify at have the of you valuation that. to projects a in-process As know, all acquisition, put around the to and time an R&D

being some goes projects time by, As accelerated. are

are projects out. being Some pushed

redefined. being are projects Some

account And we took so impairment in potentially charge, in QX. that's and all being could which taken into an result

that is markets acquired our part broad itself The of we business business.

people, growth. area. for correction positioned customer good we in business industrial well business. And inventory that through the as going through contacts. are correction are that automotive the still is a with very there some lot technology, pleased we great plays We inventory That get because has business But great of

in on relates been is fiscal but technology capacity we CapEx course, expansion has or X% do to for to CapEx CapEx, Part to many was which of did lowest didn't running the it fiscal As during is mostly in we many, the 'XX all one of have of any 'XX, that, CapEx revenue, about years. reasons.

Going a longer mid- think mid-single forward, in the to remain to as percent term digits CapEx revenue. will we moderate

Operator

next line James. with question our the of Raymond coming And from Pajjuri Srini

Srinivas Pajjuri

A Kris, follow-ups. broad side, a moving of there. market are parts on lot there in of couple the

infrastructure and businesses And talked individually. auto, inventory to you how big and are and industrial some also, cloud trying infrastructure understand on Just the about networking. IoT

we cloud exposure have from to the now. the very business that I is on side. everything right hear, just want make you I think a more bit sure and because telco see strong

curious build. what's I'm So inventory just to causing that as

Kris Sennesael

Yes.

connectivity, So XX% our XX%, XX% Edge and markets, roughly is industrial and infrastructure broad cloud and XX%, IoT XX% networking XX%, is so our the it's is or then automotive.

and center, of there the data we we play the in ongoing traction to timing relates cloud is it the some muted, solutions, still inventory do good investments with see traditional but part correction AI-related and that -- in and that cloud data some in As is where our more investments somewhat market.

Srinivas Pajjuri

on as expected then I is you And everything clear. -- kind that That's the Okay. below slightly the is on mentioned it guess, originally, kind of your tracking -- normal December you guidance, talked but of you seasonality.

I done think historically, December. in digits you have kind of high single

markets? March base, quarter broad that expect given Android the or lower should And your then be above slightly side, seasonal? the is to the weakness is, primarily question my on So we

Kris Sennesael

Right.

pleased with So view. Street mostly of normal is the below from and because more guiding a with large revenue -- of we're and X hand, row slightly one the expectations see expectation fully continue on the customer is in business less that the point Again, quarter line seasonal The fourth growth, sequential for the markets. or in what than a growth ago. sequential to broad X we we but months anticipated

Operator

Mizuho next Group. And of from coming with Vijay question the Rakesh line our

Vijay Rakesh

XXXX, on you And to see and you then take within handset a wondering look just follow-up. if XG? that how at were do Kris, growth year-on-year a

Kris Sennesael

to quarter that. is, guide okay. one stick stick quarter a that. one and going bad guide to we and time, I at a we're It's to a at only visibility mean we I time, not matter, going only we're or think, So to great. as But

Vijay Rakesh

at trend of some peers a the one about it. the Got and it. I you the that? moving But one to as RF been things is entry China, your towards of in of level that there's That's have discrete. was of of -- talking side talked any look industry. you Are more seeing

Liam K. Griffin

Yes. in were, much And markets. China low-end if we really do in those We stuff. actually they're don't

and et upgrading Googles space we're the other more of about so earlier, and the naturally talked that Samsungs, And with that kind players we cetera. of of some out

happens have strategic business. more much still great a we So important just It a one. Android to be

Operator

with from And our of Doyle Nicolas next the Company. Needham line & question coming

Nicolas Doyle

mentioned You maybe of tremendous And type I guess I RF the with assume mostly products WiFi in opportunities? Can specific that's terms if be opportunity in any or you Google. Android. more it's connectivity, or

Liam K. Griffin

strong they players, are wonderful, they're that really those Yes. I like is that And also Samsung. we but mean that's companies. are you companies. I can these have engage, and with really Google we're that -- engaging about X great smartphone and they're here what players technology It's companies enterprise

They and AI play that companies other are markets. in

a really for it's pleased from of great We're So ideas We're lot learning a to of with that lot very, at smart customers, lot we're those applications. people and able that very engage level. a us. a opportunity

its So of a own within broad it's market business portfolio. the

the So We're you companies. with progress and continuing those making should expect more looking from raise great bar. forward to us to

And happy to so we're be there.

Nicolas Doyle

Okay. a just And maybe broader question. strategy

yet under seen time. modestly You've markets of broad kind you've shipping been whole this grow quarter-over-quarter,

decision? of how aggressively of not burn shipments So those any more at the Or quicker? of there year the inventory strategy around business goes? that through business beginning just that halt kind that's sort why and Is

Kris Sennesael

the up go about very channel reason talk inventory, customer always advantage or about to or read we trying inventory And we're build And good any that. to excess we're get and customer mean talk careful. about level. in I at good and inventory the inventory at the no when channel we there's a level. And always

end line trying ship demand. always real in to customer with We're

in channel doesn't and their it right and Nobody or could get inventory excess the very wants and up Now sometimes table end carefully. demand at end distribution are materialize our with be somewhere have manage pounding either, the to and the always could you more be customer. customers end at the parts then trying to we're they don't customer that, that

Operator

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

Liam K. Griffin

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

Operator

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

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