Qorvo (QRVO) 3 May 232023 Q4 Earnings call transcript

Greetings, and welcome to the Qorvo Incorporated Q4 2023 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Douglas DeLieto, VP, Investor Relations. you. Thank

begin. may You

Hello, earnings welcome conference much. XXXX Qorvo’s fourth quarter call. everybody, very to and fiscal Thanks

to filed This on risk may call differ In factors supplemental the factors will impact review earnings the factors in and today’s current obscure performance. that provide release financial include business investors We associated the operating that forward-looking Form may statements affect cause expectations. noncash because analyze certain annual provided other these our with underlying of as and items additional contained GAAP our actual with to information operations trends call, that financial or safe our published harbor today’s and the our results. perform results in you today SEC performance non-GAAP both risk our We of to on without to encourage materially release XX-K statement results. in management’s expenses enable financial could and from report to involve comparisons the we results risk as well

comments comparisons call, our will non-GAAP results. and primarily our to items income be During based statement on

earlier complete Investor Financial our non-GAAP refer to For earnings of on Relations Releases. available financial please release measures, reconciliation a website GAAP at under issued today our to ir.qorvo.com

of are and team. Marketing; President us CFO; members and President Qorvo’s Bruggeworth, Senior Bob management Vice Sales Joining Dave and today CEO; Grant Fullwood, Brown, of other

the call turn to I’ll that, with And over Bob.

Thanks, and Doug, everyone, to welcome, call. our

consistent our Xst February results quarter during were earnings fourth the with provided outlook Qorvo’s call.

with in as of products significant made with customers with secure At markets, clearing some best played and that markets to We new channel inventory new introduce the recover. same ecosystem. majority support lower inventory. positioning demand consumption market our designs, time, end to as consumer we continued Qorvo Android channel the progress being end largely and quarter expected, our at in the exposure Looking markets, primarily those the end out

increased we seeing in our across businesses, activity and grow. are We our in confident to strength are design customer ability

in offset we and at enjoyed and management Analog, markets, inventory devices power markets relative defense In OEM. our High-Performance infrastructure strength with consumer digestion exposure by

enjoy long-term We multiyear activity contributing growth. to broad-based that design to see we continue win

and machine by Sensors quarter location, Design across activity inventory weak automotive end draw-downs our in IoT. demand strong Automotive during applications, Connectivity, enabled human cellular home, enhanced Connectivity automotive the relative interfaces. precision variety was Group, products smart stability a navigation, including smart interiors continued In market of for Wi-Fi offset and was indoor and and

was point customer quarterly We strength Cellular, was China-based sequentially Advanced with total March a record a the for revenue up of on large Android content. Android In flagship low ramp believe Qorvo grow all revenue, during across continued Design and expect quarter in June, be while revenue OEMs. sequentially the total we to activity continue smartphone leading consumed. Android inventories favorable be to channel will

based the to industry and In solutions multiple highlights. combine quarterly by to coverage orbit Qorvo Now, space-to-terrestrial supply variety including High-Performance Analog, let’s BAW-based reach hardest turn some RF that solutions connectivity, enabled low leader cellular selected to a geographies. technologies, helping to provide components These cell-to-satellite multiplexers. earth in of was an

Texas the a production capabilities prototype significant to integration heterogeneous cost. state-of-the-art the our packaging our first facility savings of our and modules BAE achieved leveraging advance the size, U.S. We and is Systems contract multi-chip delivery enables to Qorvo with RF power, SHIP milestone under Defense. in with in weight of Richardson, Department

modernization and for and program collaboration our microelectronic reestablishing speed communications. with early is milestone U.S. of critical step This of and radars, phased microelectronics accelerating satellite vehicles leadership unmanned efficiency our first It a array of systems the towards the partners. next-generation showcases the goal in

for industrial and follow-on device silicon booked solar half for we solar application. capacity Energy power new is business, XXXX, will of inverters complements the power and in dollar through than up automotive centers. U.S. in multimillion a our make and the rate market This expected of ongoing inverter Department silicon charging compound more to in our The In residential business XXXX. applications win carbide annual carbide data achieve growth forecasts double-digit order

car design in-car were Connectivity XXXX enabling supply has our access a Sensors an ramped selected applications additional navigation note, up smartwatch, In and ultra-wideband across supporting points, flagship including smartphone. business, next-generation Of multiple indoor activity we solutions to for and verticals, ultra-wideband Wi-Fi significantly. secure Android access,

member ecosystem program Car to Plus the their Consortium, Connectivity announced key we contributor BMW can or start the unlock to a BMW. without the a Digital and lock the Key their are of removing smartphones by the pocket. drivers car We the Plus, Android without from having recently for be Key with Digital and and engine are With proud phone compatible

automotive collaborated third antennas and architectures. In advance with OEMs leading and Automotive fin Connectivity, we parties next-generation shark to smart

to related with devices automotive network Tier XG Xs. We also design access engagements expanded

will a in to design new force-sensing we support touch a of secured European headset a In of headset sensors ultra-sensitivity the OEM. industrial design. MEMS-based win Qorvo’s wireless enable true leverage to premium The a sensors, leading supply for sensors

full In our win and X for sampling coverage bands smartphones of and enterprise Wi-Fi of secured filter X consumer our we we solutions, points. first Wi-Fi, design Wi-Fi gigahertz X.X, access and BAW expanded and enabling X

smartphone supported band, well and as the tuning OEM’s smartphone multiple secondary as we and with band ramp including band of mid-high In flagship pads Wi-Fi. a transmit, placements, Korean-based Qorvo ultra-high Cellular, low Advanced

solutions. to this market their and customer integrated We their are we tier, XG support to are flagship as opportunities broadly seeing expanding mass pleased migrate in portfolio they

wins XG Across market Android OEMs. design the at support smartphone the mass devices and awarded mid-tier top broad-based of Android X flagship, Qorvo in ecosystem, was

first footprint the samples for highly main our this new path is placement. and main Android customer’s band the size integrates of SAW industry’s an and filters. reduced designs, requirements. size only, performance of band previously, the product mid-high addressing in shipped filter said front-end we nearly path performance most than receive X as our a support existing to BAW the mid-high challenging It And we band. most To leverages pad It newest pad our BAW diversity high and integrated enhanced this newest times mid architectures. OEM, and This and content combines smaller content

We calendar first this smartphone the in expect launch XXXX. to featuring solution

investments technologies, we’re business, products introduce delight leveraging the in that differentiated best-in-class Across customers. our

We have been and many has growth in our design portfolio activity drivers strong.

systems. the defense In indoor HPA, span broad renewable we in In in March we aerospace, CSG, secured navigation, the new and business applications electric In and battery automotive order wearables. ACG, design variety enjoyed vehicles wins phones. radar, in representation connectivity, in energy ecosystem a home to room secured smart of volume management, largest leading and across are we flagship BAW-based we at have long-term where leading Android content, content gains. we We all XG transition believe to the OEMs highest supplier and content our grow our the a supports including increasing are to customer,

were the driving HPA approximately growth time, increasing roughly years. high-growth outpace smartphone Android smartphones XG. and CSG achieving the CAGR million our growth businesses. for unit XXX And as increasingly year, leverage growth Android we several XX% see Last investment total rate and our of rate XG ACG, expect to favors Over mix we a double-digit of

the team for thank continued to want excellence. I operational

launching growth market broaden new and drivers introducing to our the exposure. products and are new We align technologies with industry’s

programs. performance increasing improved and design content businesses, large supported are customer We strength gains customer in activity our by across and seeing financial we expect

that, to And the off I’ll with hand Grant. call

afternoon, good and everyone. Bob, Thanks,

financial our today historical CSG, our we reminder, or will XX-K, a and Analog Sensors or three information upcoming Group reflects operating to I’ll segments: HPA, As latest turn our or Advanced to provide Cellular will be these High-Performance our segments. results. In Group references now Connectivity operating and quarterly ACG. that

for February exceeded was quarter despite midpoint Relative environment earnings channel gross call, inventory provided results margin Revenue the reduction million. of non-GAAP to And guidance, our was $X.XX. expectations weak efforts. XX.X%. our the on as Non-GAAP a $XXX demand was and EPS

factory production our impacts in created considered volumes, margins. characteristically negatively at which we that fourth underutilization guidance, low quarter As affected held

On basis. a improved on related factory increase Charges gross XX.X% factory year-over-year margin non-GAAP utilization on basis, utilization. low a modest to given continued margins to in weigh sequentially, a of

the Consistent expectations, of items. opportunities. absolute with principally the was support as increase driven accruals future our quarter functional was R&D Non-GAAP by operating of up OpEx in invest taxes, dollar sequentially growth $XXX and seasonal expenses in other area, expenses we the given In payroll sequential timing the by were terms our and timing as employee-related such vacation million. customers

XX%. In operating margin or operating the $XX non-GAAP million by each was negative XX%, HPA total, in was Breaking income sales. and quarter was X% CSG out ACG was XX% segment, of

income quarter, During CSG reduced million. Qorvo operating by approximately the Biotechnologies $XX

seeking a in we currently the strategic alternatives this As are process reminder, business. of for

Non-GAAP income representing $X.XX. per earnings share million, $XX diluted was of

do and were the recorded results were not sheet impacted performance impairments. balance underlying multiyear by GAAP the quarter, two time QX notable period. but the horizons address during items Fiscal reflect during noncash These

related The to first impairment is Biotechnologies. Qorvo

seeking in the strategic it alternatives, quickly believe are to comment technology team, the potential the is early and feel outside highest strongly achieve and on of we more business outcomes. will its Qorvo. too We While possible

consequently, road outlook During ownership internal the failed funding fit within the realized asset fund test would impairment. determined future the model. and the map required investment forward-looking business to Qorvo we Without the the not quarter, be our under that would for commitment, not

as cash of agreement There the The silicon at our to the cash the XXXX. agreement end to executed was impact and asset is tied second time agreement. supplier refunded on calendar the remitted deposit was related to no impairment sheet scheduled to at period supply the the long-term a in the be the is balance deposit was during

lieu to apply specific finished better We portions prepaid silicon wafer purchase against in of allow time. additional commitments over align ordering have demand will elected SKU-level to with This inventory of wafers. cash our us goods deposit the mix monthly of

of and We release current will forecasted earnings time between found more while results available materials. risk inventory are demand, our be in upcoming ordering non-GAAP mindful relative in A to the lead reconciliation with GAAP long silicon in XX-K. and comfortable can our be the information

million, on Capital in $XX resulting to million. the cash flow cash statement. of expenditures flow free $XX were Moving

shares. million During uses repurchased leverage, our factors. The flow, the cash is of and and of of based other outlook, $XXX repurchases alternative rate on free long-term cash pace quarter, we low worth our

to balance sheet. Turning the

As of equivalents. end, outstanding cash of with debt quarter maturities million billion of approximately and $X had we near-term and $XXX no

net million the $XX $XXX was down inventory balance quarter ending to Our million.

of of non-GAAP XX.X% non-GAAP per full non-GAAP margin XX.X%, For recorded and earnings of gross share of billion, year, $X.XX. operating the margin $X.X we revenue

had for XX% ‘XX ‘XX XX% XX% ‘XX. for accounted in and We in in sales accounted sales total ‘XX of customers Samsung XX% ‘XX. XX% fiscal Apple total of fiscal two in in fiscal fiscal versus fiscal versus

by ongoing progress are large dollar strong expect channel we customer from on and growth in reducing content forward, benefit a Looking we to ramp. encouraged inventories, seasonal

our current outlook. quarter Turning to

$X.XX. million between XX.X% non-GAAP diluted margin $XXX and revenue per $XXX of quarterly non-GAAP million, gross approximately and expect approximately earnings We share of

consumption further seasonal factors. channel environment, demand current the of inventory contemplates outlook Our and

Our quarter due in non-GAAP the excludes to be productivity approximately for includes guidance expectations biotechnology unit, $XX operating to compensation core cost investments for operating in the improved based million normal QX initiatives its of performance. will but project up June programs, any multiyear divestiture. spend We other for expenses our sequentially fiscal return related and the financial and investments customer on incentive systems non-GAAP in

operating cash with non-operating Below losses, reflecting other offset balances, be interest on earned million, along $XX on income rate expense or by debt, fixed gains line, interest our to income the our will approximately paid items. million FX $XX

is rate XX%. range XX% fiscal ‘XX expected non-GAAP to within tax of for to be a Our

customer. seasonal ramp in a inventory June we at will our the increase balance expect quarter We largest support our as

terms In in XX%. were quarter This channel in by inventory, than a follows reduced our approximately December more channel the inventories the reduction of during the quarter. March of components XX% Android

business take double are ecosystem, digits. this inventories calendar pockets smaller for are for inventory channel longer digest. will quarter to in year, Outside Android Later expectations inventories the may of in to the elsewhere our decline Android channel normalize. channel we Our this of expect there again that

full the from revenue will to year ‘XX, expect our For customers. ‘XX forecast above strong at fiscal we benefit largest fiscal dollar and be growth content

and to ‘XX mix. year, non-GAAP on expected with is full margin be tracking XX%, basis, variability utilization quarterly primarily fiscal the a approximately gross For

significant the are new for sell improvement with as underutilization. margin QX sequential less fiscal we year, we during fiscal across in Looking expect largest customers burdened gross our costs higher by products that associated

in declines margin QX in again QX, primarily and to utilization sequential mix. expect We during and gross related

as spend, million QX to of are variability biotechnologies, investments related operating to for be development to June, our initiatives, QX return based and excluding $XXX performance productivity approximately with the core through well systems items. the million Beyond expected related $XXX per expectations as quarter, timing other of compensation for incentive financial in improved product on expenses

operating three our many Qorvo drivers growth enjoys segments. across

leveraging we year leading customer uniquely this positioned a capabilities markets. to customers and portfolio We’re broad of are technologies and large end across grow and content programs on

in investing broaden to drive outsized exposure to growth accelerate are our We to businesses diverse growth. market

for At this Thank line you. questions. time, open please the

Hari first Our question Sachs. Instructions] [Operator comes with from Toshiya Goldman

‘XX? my on gross could little are a you guess well. hoping full color margin gave OpEx how question, bit year you I as thinking good revenue. But Grant, ‘XX talk first kind provide about you three color and would helpful. the top of fiscal the context if about super around line you in segments, a follow-up. have around I or be then And can And that

Thanks, This question. Toshiya. Grant. I the appreciate is

full not ‘XX barring current forecasting significant a our on fiscal any unit year in based In right, terms we’re view guidance, of deterioration, and handset jump sell-through. the macroeconomic

XX% X% smartphones be year-over-year, believe down phones to actually to we the be XG but fact, to in up range. In

and ACG. speaking, the progresses. view as margin expect But walking as terribly quarters, aggressive some a HPA my not pointed We out underpins in the our do year. of That for especially well, in remarks. that through ‘XX prepared as growth will generally I back the half overall said, mix, CSG follow So, fiscal just year

there to in returning line, XX% of Although to ‘XX. it’s our margin in view gross unlikely change no is the

quarter-by-quarter unit we strong sequentially. up take Again, gains our the products, be it XX% also of as associated is by basis by seasonal some guidance, the content with quarter burdened ramp. expect to to driven fiscal XXX September, in Gross revenue approximately which If be June quarter-on-quarter begins those underutilization. beyond are a I higher this in and will costs large QX to margin approximately would favor less up newer mix points neighborhood

Android seasonal our December Gross And higher a fiscal utilization year quarter, demand. ramp end might some mix, than calendar to to to to September. shift a of returning XXXX, that the to we and the less large higher cost to inventory. expect following to to and down approximately margin seasonality be down In finally, March due begins mix QX, quarter, basis our percent revenue of to flat and historic of points QX we shipping XXX that channel decline continuing be will begins expect in of our XXX off fiscal be ramp be modestly as but clean

However, as XXX margin cost to XXX gross reflects basis be quarter-on-quarter higher will points inventory. mix down that

the some and quarter, to exclude would prepared items. the for color beyond with some OpEx remarks, the year, $XXX I product the in related million mentioned per variability $XXX of other June, I around gave which As Bio to million in there spend development

in Generally clean speaking, confidence then comfortable we content have to we in is degree demand. ACG, will XX% Tax we fiscal period. XX% less. or to range, to market for our a in Android shipping ecosystem as we rate good of end shares September the feel with channel And returning And of count XXX ‘XX. in be probably the consistent share million approximately believe the that

you. Thank

Securities. Mobley Our comes Fargo with Gary question Wells from next

if competitive customer. made or just modem-only fiscal their a your explicit shipments But was quite ask a there, your you customer, evening. largest wondering maybe from presume to of helpful. That competitors factors some the about impact to of I wanted factored that customer-specific your standpoint? undercurrents about what ‘XX is into I’m something very is revenue for that standpoint this thanks that from into one going some their year Apple, guidance, subseasonal how on or It’s talking Grant, to guidance guide. I

Hi. the customer. about This don’t And lot normally Gary, we our largest talk as a you Bob. for know, is question. thanks

is I ACG be say down I think will what can quarter-over-quarter.

historically, from lower it largest down. expecting smartphone quarter a is be our And are revenue customer. we for So a to

said we model I why said. know lot talk think don’t how -- the have But handle real just whoever our a So, whatever good market. you things and We on I a about work.

what about doubt. So, good we feel for no said sure, we’ve

Okay. a Do you if I follow-up? ask mind

ahead, Gary. Go Absolutely.

All right.

at they’re your future you So customers, win Android what on will think the best I Do like based a customer base some with design through can Android you point the excess achieve $XX,XXX the feel revenue their traction? new your guess question inventory? in in draining What’s look high specifically? once new normal your is

the question. pointed always quite forecasting And thanks as is Gary, you difficult. out, for future the

do shipping work know. share we’re and the done what that. XX% headwinds what quarter -- gaining these and up in been the I we’ve not demand about, the at If to we’ve quarter And go win or what last where know, that’s and XX% we’ve been as talking Here’s reducing we’ve we ago, we back the with whether and ecosystem, Google went in look that are the two great and Android already ‘XX. what Samsung last started quarters you Grant inventories through, believe facing

gain doubt in comes there. continue quite largest As to better. well I there have again, get their we you of share and that No believe some our can or it. markets. But back done about share gaining in to we forecast customers

So, think the news what’s we’re important. is this and good I positioned, is

of great We’re customer. manufacturers, the with only a largest that strategic our top six we’ve growing Android supplier got the and we’re business

from So, look continue we perspective, we’re it we that when to what convinced grow. at is can

Our from next Arya of Vivek Bank from question America. comes

architecture of several habit customers is curious, years? you market what in content have of the the the next new Because I’m Bob, visibility decisions kind retaining think over every of this making do year. different a

able as it you you sustain do think the start few to this over So, next how you ramping new are years? content,

Yes.

Vivek, and we’re pretty in share content add over I good well. in areas, job growing, interesting, that nice time, the mean, is, those and we’ve a of they done think winning as holding I we’ve what’s areas done

Grant largest components discrete or about be grow whether we good continue things. believe And to it BAW-based can at as pretty look our sell our customer, So out, that commented feel I we and that there. we content as well we did we even

So, good years. the we multiple outlook about there feel for

think And is customers is technology somebody for before? pie, from a think are have win, is you that this you expanding So, my a adding something kind think this using was win follow-up, competitive else do you this new or competitive do area? this they from a do or this might been of in the

Yes.

answered on it last topic, was I a quarter, think similar this believe, both. I I question and

to content pie gaining gains Both. well both point, share We’re bigger. the as, making as through your

question next with Our from comes Ackerman Karl BNP.

Android, be further IoT for that the given inventory inventory in your inventory I businesses? seeing? how on and channel and end timing with wouldn’t And guess, June you balances improvements comments of the sell-through address the based the quarter, characterize as realignment channel on question, why you’re that normalized your by you inventory reaching infrastructure aligned of would

is question. I’ll This take Yes. that Dave.

So to in you’ve into the Android customers. a got products of ship ecosystem, of we lot lot different remember, a

So, their phones their program it on how ramps, depends well sell relative all through their to expectations.

good in the by we’re shape longer, on to right, some June you’re business. their take be end So, cases, other and quarter. pretty cases, it will depending customer the in In going probably little of the a

said, be of should as demand. the is see a station So of clear year, going ecosystem. Grant little shipping We take -- the Android to to channel half customer but true definitely the longer. by back inventory and we second all the to Base

of supply more customers think up inventory some I of last during the year. conditions those built tight

just some that so those And burn to it’s longer of going off. to take customers

early into this taking part year. year through the and next that we So, probably see of calendar

this Karl, is Hey Grant.

up jump maybe level. if a in take me it Let I there. And

incorporated is guide. inventories channel our on in view Our

begin begin a us guide. to incorporated in our normalized terms increase channel shipping fiscal XX% and Sequentially, would unit This later to be would predicated expect could more in and to our demand the gains. is September on normal, doesn’t would be in be year. somewhat So, of to we content quarter our that the it clearing considered in simply Again, what return growth. aggressive anything incorporate largely

on you make that. So, at of based least can the it quantification

Our Snyder, Equity. Charter next Edward question comes from

some open an that mid-high been before very completely kind you down us to it the defensible have time, more areas Maybe gives that content. because you to you you’ve there then, but gains been and and DRx, please. forth one in of the that in actually has a there going built further the in gains said Question you’re more it kind of not or aspect. share both to of all separate et focus You little have tradeoff gains guys I selling bit an new? one couple to back cetera. you it for mentioned total that or doesn’t you and on few new -- Is looking at a position how versus revenue all-in-one, band, -- ASP tend Watching Android guys about is like all-in-one, the areas, been that of Bob compress there’s seem in companies specific constrained. we Can the past, give fall. sounds modules? available something a do are channel total And it’s works? on because share be also slots, but feeling then, some It confident too attempted the is, had that. the And a guys follow-up, this

Yes. ability And once customer, we the for architectures, continue want. of you our the Dave, won’t phones, we I’m doing you his to you Thanks, do see work want we’re And said, Second part down there? as know, our in where of And that very any you’ll about grow Ed. turn as there. to take talk sure confident future question. out but we’re I largest to

an plus about that we diversity receive. as what combines bullet Ed, the a And all-in-one. solution referred it Yes. the there to you mid-high-band on was talked the

a very So part we’re looking that don’t us. I service is think, they’re all size performance, traditionally diversity content We high of small what that’s our in for But that for. receive, the supporting customers, phone. with general, new

a as that’s well. creating of lot So value

ASP very don’t going we that’s drive. high-performance small-sized an It’s So a issue. to as see solution it

million about what Any the here. you I if how the cost you’ve to then, on underpurchasing left to $XX $XX will I’m that. how used supplier? And out? offset deposit took On your for several you are out charge Will you’re slow that mean, maybe my Great. supply understand continue feel that I feelings play the agreement. another that have things on a next probably million could, quarters. got quarter. silicon calculations, to plays this from get if you that cash just I trying

a the the over complex. Sure, would take our products, agreement fungible, anything, revenue Quarter-on-quarter ‘XX mix changed. right? As What that technologies, our outlook you years customers level, at for question. Ed. has and This in it’s been fiscal current is of supply wafers be high Grant. I’ll improved. fabricated hasn’t If out they’ve changed across forecast aren’t once understand, years. multiple contract, is our demand The multiple actually profile covers

been So, yet. impact. haven’t order products Furthermore, we for wafers there’s can’t that mix a significant defined

So accordingly. there’s have well. as And manage to have we we’re current advance, element we demand. sure those But comfortable to with since make place we in based our well inventory on our a timing forecasted inventory

the the better, It don’t be we’re we to believe applying the And in the each be something be of is stay over to this there’d analyze that remaining we quarter deposit, aligned. wafers and continuing to variability we that need. you we’re in it supplier could ultimately prepaid worse. work case could we’d with But mentioned, agreement. our the know as mix continued So, life

Company. Our Ramsay next with question comes from & Cowen Matt

to basis of year. through about all think giving per detail ‘XX are -- things that right all listening happening. I now, know that philosophically there’s just the Obviously, fiscal want and But content the I guidance us on the and are commentary a mean, color, fiscal quarter way really additional of I all MediaTek to a guess guidance additional out of Asia. and I lot detail we appreciative

seems to more Qualcomm at the of customer China. like around the comments, off way Just where, their your the of market uncertainty volumes recovery and in the in terms in lot handset all listening market in certainly, got a it call terms largest

sort despite So underpinning of I the right level just that’s have. going granular choice I of give the the quarters and through have about content the those on to next gains estimates, the all guess question in Thanks. now just detail really all you macro confidence four that given the is

is Matt. This Sure, Yes. Grant.

question. Let me take the

start color off, give forward usually we some we as year it. First around fiscal the

something that of it’s as matter So practice. we a do

I case, volatility think helpful, in the market. this given the extremely it’s in

you I helpful as putting hope So it’s for models that you’re your together.

of In balances the we’re make upfront it’s those I follow specific to utilization and helping the wanted understand carrying, customer mix to going of associated guidance, the the were and sure given so and quarter-by-quarter degree ramps. mix that terms that that with the inventory products the is we profile people to a to margin margin

vary So, to important understand on it will a that basis. it’s quarter-by-quarter

to that wanted there. as I sure So, as make gave we much color we could

our view, recovery a overall aggressive unit or handset from jump function again, nothing overly Underpinning in is sales. step a

be to So, there’s want conservative, there. don’t I overly aggressive but nothing

a lot progress to And I think As making we’ve do of the said, we’re aggressively working there. really looking to just clear we’re channel inventory. been We’ve so.

fiscal to normal demand. in able just considered improvement should to market be As the being incremental in end shift see year, later return to what we some would channel our we simply

in As Android my follow-up, coming it’s great to see inventory down. the

reduction then I reduction mentioned XX% and XX% last think you quarter guys now. another

set helpful the is inventory be of quantification Thanks. drag it quarters? of we for beyond burn modeling quarters? kind of level where about the could the on there, terms dollar of Android think there’s couple to still an just maybe a another unit next see how or you inventory that us any maybe worked a terms be would couple over of community needs that absolute you So as through or in the maybe much still If

couple moves around giving future dollars based Matt, units it I’ll it to a Dave. get But turn make on and and then comments don’t all and over to that into of we want really demand. because

is I reduce we’re the think to that continue channel what we going can inventory. say to

they inventories. take a long times that back we think throttle in think listening we the we our it. to I reduce your seeing it And I back, saw speak market’s on this to going do and of started progress go. the we’ll reducing others this channel the a are Coming channel. lead before were the is coming ago than to, on and And It’s have going continue hey, made point. sense, we’ve till did on we theirs, a can’t much was were this, you’re also So, one we but saw inventories to December in why and significant the first reduce said in shorter for that are to differently. overall ways back quarter September. to which not time coming what And just we I probably the back a probably others now saying, this

are So, tailwinds demand, what even behind than the shipping the year ago. going start we significantly lower end as subsiding a slight though saw it’s into are and to be we us headwinds

that. add So, I color you think to Dave, I that, to captured feel any want free. if

No, they’re in bottomed China that sales comments, good that in did Bob. I bottomed and all into see Android And March. sales, we we the think think December our

And clear demand Bob see the we’ve improving Customer but of up. to that so, back. is that inventory do Bookings next some we coming as are do got work quarters, already. to said, still in couple

And this so, point. only it’s at a time matter

Capital. The Ambrish comes Srivastava from next question with BMO

lines. a had along -- actually just asked those good Matt simply question, I

gross utilization? us Could gross but not because for volatile. quantify has pretty the and under a -- it’s side, that margin largely factor performance watch, Grant, you On your of please is margin been

the that confidence And So, on just gross or that help driving the side? is its so, the the margin recent at lowest biggest us ever in you gives understand, is utilization past? factor

Ambrish. Pareto, the Yes, by question. the largest Sure, I’ll in is underutilization far, Grant. take the is item. This

points. was quoted we QX XXX I basis in basis approximately it’s -- think points, last quarter, period ended, this just it and over X,XXX

plays inventory. unit standpoint, costs products in underutilization very into higher carrying for have there headwind we’re factor. underutilization an the largest So That consistent the that from we that again,

P&L, As it see pressure going the that quarter be continued last and comments through for of talk began which was their those by the we work you’re some to underutilization made as my today. from ‘XX reinforced to time, fiscal way period COGS, we to forward going guidance

by point, the your to item. underutilization, So, far is largest

item, associated commented again inflation. headwind the before next which The I’ve with is on

there. basis We’re seeing maybe of in the neighborhood basis XX XXX points, points

to second distant a So, underutilization.

all appreciate we And details. helpful. Super Okay. the

Is factor some that customers? growth. the continues side Q-over-Q that largely at about Is you right that to to normalizing then it? be your way the think XX% largely of plus the the large for by that -- inventory assumptions the and uncertain. on second content because on quick demand driven the Is being normalization sense pointed Android real out gains Just

would that of gains time turn around. on content in very ramp. the dependent September expectation Very clearing seasonal large little and quarter, I the a much channel for

from next Ruben Stifel. comes Roy The question with

out. about in talk you’re to Grant, of and how seeing year of bit play I the the a wanted just rest little terms HPA CSG

through not You there’s but mentioned be to you year. aggressive, very some do growth the think that progressing going you’re

term longer That to where of of sort kind And you’re we are talk just year I and comment So, around and how inventory last been environment great. lot then There’s in also markets. little wonder two those be as through tight year? pricing, back that for a pricing flow thinking if when in if you targets businesses. those about discussion on normalizes could think a things this your growth about get would the bit could when you you that we of when were we

Thanks for part. let the Dave on question. I’ll pricing. first the I’ll take comment

of business CSG see within we’ll in in will course our then of the And business, would our CSG including terms business businesses, then that grow see the strength HPA over UWB. defense to we power HPA Wi-Fi connectivity in elements, growth year. our In other and and devices the expect and

today on sense the mind businesses over don’t and the So pricing. on trajectory year. standing confidence growth a if they’re strong those where you Dave, and given comment

the certainly, or to from anything out see we’re what about see of we market. in pretty you environment mean don’t a now, different ago I is entry. excited And but year in a referred the Yes. normal two little we pricing that XG

Bob think I XX% phones of mentioned only to XG. last had that year converted Android

to the got entry digits that still we see XG participated next new long We years. So, all growing a for in we space go many the for because several for that’s us really double there. years. And way haven’t at content

start new more us. portfolio that’s more opportunity So, and to all as of XG, customers to migrate for their

excited we’re well. about opportunity that growth So, as pretty

$XX in I’ll was QX, and I’ll ago, for maybe bit HPA year it here the in $XXX just CSG reference. was just million compare million. revenues more to color revenue was QX Ruben, you and in segment a million give revenue, $XXX little a then in on ACG

the HPA If million our $XXX million, you quarter March year in and back million. fiscal $XXX CSG ‘XX, at $XXX one was was look was ACG

levels So year. back ‘XX those to as throughout get we would some over time, the we progress of growth expect we should forward fiscal see

think I content Thanks up, Bob, really of XG push added? one to following could, of for do I guess, That’s up out. content ASP. some BAW of came in the that before perspective, kind the to still value to handset a K the placements, with right question for being great. kind you QX filter breakout the point appreciate we typical to that quickly, just on way moving is the or on If at of With I the the all to $X think about -- Ed’s kind Grant. in your ASPs start higher $X

Yes.

offset add X our probably at it’s I look to that. about there’s that XG content. Wi-Fi conversion If smartphone, to see of there’s mean, the also erosion, lot and that. the the big side. a to a a I course, talked backwards there to think be time. FEM driver prior, involved. Wi-Fi low in is from average content. cases, X there, pretty also going your much in over even is time, be filters we higher number is going stable of but on But we new new look BAW you ASP And XG but to wasn’t than going as We

in to as And requirements. requirements a there’s be increasing cases, in X, coming reference across And portfolio, of for there with and represented new well well. our And our there going there’s in XG the we’re content performance new then increase Wi-Fi and opportunities all XG, Wi-Fi us lot new Wi-Fi complexity, now there. designs capabilities, to even there continues advanced. X that’s the opportunities and FEMs so And

we enough going to easily that’s be all So, see. to offset that any ASP erosion

question Pajjuri next James. from with Our Srini comes Raymond

question just on China. a Bob,

you’re quarter, guiding think in I second quarter. growth June sequential for

So, non-smartphone about talk business of pickup been Is the pickup you’re curious, there? this a a than by that it you seeing lot more bit we’re side, optimistic peers. the a from in a what In heard because smartphone what general, is slightly you’re expectation? still there’s little I’m more China lot seeing, think if of kind since of of just your I driven can it’s some or of reopening. not seeing whole we

would there, think, I helpful. be comments any So,

with your comment. agree XXX% last

What either. to pickup for continue been clear any making now, the second quarter inventories. channel seeing now not we’ve We’re reduce the we

So, as you inventory. do do order the that, to need we’ve Customers reduced parts. some

an we’re So, the revenue, the of It our we’re has signaling uptick. to going up cleaning towards end means saying all heading channel. nothing to demand. see in we’re is we’re with do bottom That

I mentioned think bookings strong. Dave up just that our were

in In bookings now. we for largest had the almost years fact, China two

we’re two very is last job showing in the So, a don’t channel in all We market. heard quarters significantly the -- the with guys the over you changing, It’s good end from is have inventory. end the momentum reducing anything not others. market, done not disagree of we’ve that

are headwinds come. earlier, comment the that’s we’re starting So, mentioned subsiding the and a starting end bottom. our that comment. to That’s all see we’re And not to tailwinds an saying revenue. market as are But is about I

thank your, you If year it low-XXs. the And margin, questions asked looks I been for And going know have I a clarification. that about Grant, the like you’re take utilization. then, in on it. of gross to I guidance, guess, Got exit lot

I’m long-term trying your between that bridge the to model. gap So and just

is primarily are or there to XX% going to, it guess, I get factors plus that any utilization, help you are levels? So, other that

two There’s factors, utilization the both really It’s and right? Sure. mix.

they costs, the better see didn’t when selling in they you through gross unit factories the So, that in newer obviously, and September as we’re products margin run that carry were underutilized, December quarters, quarter. we on to already March products that In due and and underutilization. sell-through higher you the prior that more start shelf have incorporates to see the cost of unit

bit and it’s a of utilization. So mix

any to on margin before Okay. we need you side? that see a level, X revenue the you gross Is handle think there Grant, get to

really products. contents in are wouldn’t mix. to a that I back through Again, and products those say it we’re of depends it’s kind what It goes which selling revenue.

level, So but it’s revenue related an not to mix. really absolute again,

feel Sorry, just path to I that. confident follow to XX%. in the up do back on

I the margin, As gross earlier, underutilization. by of pointed it’s dominated out Pareto in

order just terms factories back, So filling the path get in really, in to question a there. of up the of it’s

Malik next Citi. The question with comes from Atif

And It largest grow Apple customer? not strategic will two percentages, in XX%. exposure questions. do fiscal has kind best customers. terms have of Grant, XX%, gains sounds content based ‘XX, kind both You year, been your historically, the How look said we this you of on I name. like at the the Apple Samsung profitability was those these exposure to of

you So profitability? how growth with are balancing content

our Sure. as content confidence Bob high Well, pointed of out, there. degree in

well. all We’re customers, as that our fully supporting one of of course,

As we never to customer any as particular a look revenue. forward, we’ve guided percent of

to about there. feel So, that we do do But I’d our hesitate good we positioning mentioned, now. as

opportunities of win. profitability terms investing years. in But like dollars in in we to heavily -- out out managing are feel multiyear as at spent positioned today are we I those forward, revenue remarks, for going my In pointed multiple R&D prepared customers. the we’re And

confident place We development we’re to have investments and in we’re the do our the making. technology in so. And

understand then And base business this is I And this are silicon this order Qorvo? R&D and the business a in a on dollar XX% multiple years? and carbide, understand. million devices, towards I strategic small inverter from business? you the on side. to How your power a be investing couple dollars type growing maybe you’re of could How

we a investment it’s of very think Qorvo, It’s We similar the compound work to other for do. lot Yes. a strategic right?

with solution differentiated a have JFET our technology. We

Carbide, contingent the I to lot in shareholders that And business as see think significantly. we’ve which We there, over. a the We reflects that do of Silicon of a investment placed. grow taken seen it’s have a since in expect we the paying we’ve to lot it success United demand. be you’ll of payment And well terms will of customer in XX-K,

Sur next question Harlan JPMorgan. from with The comes

new and model gains. to these set a ramp on trends versus the smartphone models second I either into You on ramps pricing appreciate new prior guys customers on of like-for-like components content year. half across basis? generation higher How or are the are in the year-over-year this your new

every generation, solve. Yes. I like-for-like. can to comment on there’s we a always mean, new don’t challenges think I

just we’re have. gains excited that the about so, And we content

cases, And story share plays true some it’s in in that’s gain. mentioned, the new as Bob across content, base, As look cases, out. customer some similar probably that’s you

it’s Perfect. and HPA spread your I wanted believe access fiber-to-the-home. both, get across to but cable, segments, Okay. Connectivity your on broadband the markets, views

cycle? side, are On lots on the infrastructure in activity Seeing upgrade the DOCSIS DOCSIS X.X where of X.X. we

starting year. be side, the Wi-Fi gateway may home On gateways next X hearing

of timing? market’s So, has team state the multiple demand excess like near And then inventories term, more wise? is What guys also tailwinds And on through you are access the the burning here? here. the sense what’s team’s

Yes.

through. as new said, I well see think what we’re do And think some activity what standards, timing and our seeing, we’re there you with see I we that’s the of lot well that a very of the we with design positioned challenges and in technology. to inventory pretty consistent there do your we’re working newer point,

be there term, of think we there near bit in little So, through that’s but a relatively will to get business. that challenge

for like call closing I comments. At over the you. this turn back Thank to to would management time,

us for We at We look today. investor everyone with I hope have you time. appreciate We forward to thank conferences. you you. upcoming want Thank good to a meeting joining your night.

Thank you. This does conclude today’s teleconference.

time. this have lines Thank day. you great your your disconnect and at a for participation, may You