Qorvo (QRVO) 1 Nov 232024 Q2 Earnings call transcript

Welcome to the Qorvo, Inc.

Second Quarter 2024 Earnings Conference Call. Should you need assistance, please signal a conference specialist by pressing stake followed by 0. After today's presentation, there will be an opportunity to -- in the interest of time, we ask that you please limit yourself to one question and one follow-up. Please note today's event is being recorded. to of conference Investor like DeLieto, to now President Vice Relations. would turn over the Douglas I Please go ahead.

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

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

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

And I'll Brown, the Dave of and members Bob. Sales us to management of other today Bruggeworth, President with Vice turn Joining Flood, Marketing Senior CEO; that, Bob over and team. CFO; are call President and Grant Qorvo's

Customer all The a Quarter the during XXXX the an. call. quarter guidance. to customer Qorvo's August large versus EPS margin Thanks, during improved primary September end of outlook Doug, and driver high the August smartphone and Fiscal earnings Call. or our our Second demand above Revenue, provided everyone, welcome, were was

inventory the across pockets shift be closely inventory of indicating remain Qorvo channel base Qorvo markets as are with channel OEMs levels addition, Android is as components inventory to demand consumed General to to ecosystem In station. such even of inventories digestion norms. allowing continue market historical end in more approaching

closely differentiated with to our this expectations They us inventories with have We address underpins opportunities growth while design this have continuing customers and deliver our wins, to year products. worked new beyond. and new highly and for rewarded

supported enhanced power offering and in battery protocols customers our management, throughput, connectivity, Across operating and out, time, technologies playing rely higher functional best-in-class integration charges, products, smartphones, solutions. next-generation density improvements and and multiyear to functionality where their by in and segments, require the aerospace in power connected capabilities. including New X talk WiFi broadband, technology or This performance power between playstation, of their and on devices, cycles defense, data automotive, levels and increasingly they deliver improved distance Qorvo macro performance electrification is home, in future and measured architectures Qorvo out are Qorvo's is technologies other new sustainability trends, successive these is markets enjoys critical upgrade life efficiency, global and enable power enabling

applications. and and one customer vehicles volumes our a integration. like upgrades applies we higher in more This orbit other supporting Put higher to radar of to what we existing trends are of beneficiary to aerospace technologies business HPA, defense and unmanned satellites levels Qorvo's towards systems, strong In the low simply, call earth requiring are electronics drones, many.

deployments. their functional massive Lastly, transition increasing XG we in to X.X DOCSIS MIMO customers are the of integration base we broadband, and continue deliver station leading to for levels

offer SIC at Looking architecture. with power we highly silicon our carbide a our franchise, solution differentiated

current lower faster early in offers battery on, and are markets life RDS consumption for that solar data Corda silicon significant lowest centers. the EVs, the into of new are translates which These for longer like relatively technology applications transition Our and carbides charging, growth. inverters offer battery and

offer our we and are in wearables infrastructure, and SSDs, wins and been where power initial We unique defense, also power to tools differentiated management have in other smartphones, markets. leveraging a IP into portfolio appliances, our expand

and very is recent In focus exciting CSG, opportunities excited location Ultra and industrial X new developments. given of we Wideband and other of experiences devices capabilities area, to is advances connected multiple speed, are early WiFi as smartphone network WiFi new very Qorvo's XE early Ultra user recently another navigation. and technologies are indoor WiFi and in in-vehicle automotive, such primary very WiFi driver transition by markets. in and adoption, about breakthrough launched are are transforming home, precision is enterprise, Wideband in critical we the expanded offering X placements adoption, array customers for on. seeing innings and capacity. latency an a is ranging and the

use Bluetooth components manufacturer. also across solutions Energy, major ZigBee, platform devices iOS, by matter. regardless simplify force sensing incorporate overlay, These supported and Matter launched device It adoption early Qorvo home a functionality. sensors. language common is smart protocol are system days now improves MEMS-based sensors Low home full of smartphone expected that it's and sensitive smart and also accelerate of interoperability and new devices. that a is technology enable providers, enhanced Android to cases offers and touch recently for that Thread and widely the essentially alternate or It's our

with and as We wireless cases. wearables track use that have customers our automotive other and new across and smartphones, interiors, smart headsets, are consumer applications, develop broad pads, engagements technology engage true opportunities expanding

year double we of be ACG, little move in XG units phones dollar digits for expected significant Android will content grow low several Android half content Qorvo very opportunity a to XG are the XG this fewer to and That's from as than smartphones growth the XG. in at Looking years. for big phones.

product standard. XG portfolio. the frequency to required will us end accommodate bridge XG efforts development decade. releases and to advanced bands, the and smartphones driver at include which of of favoring XG content technology XG leverages migrate Advance, over will transmit XG time XG and additional the Another new is new and Qorvo's advanced spectrum to new satellite

Big multiyear picture, upgrade range and Qorvo these are recognized customers opportunities of a leading on, transitions by enjoys is Many innovator. as cycles. a by Qorvo early supported very of technology

does We yet have significant made not technologies With demand winning channel design customer contemplate great environment driver designs. change for and represent customer actions we make and that to end markets in and our our recover, strong progress the the end a clear developing of a want new that activity reflection that Qorvo. will When additional The have said, outlook growth win environment. for macroeconomic markets we not turned, early is Qorvo of an to improve inventory. more took it

let's Now Aerospace, orders PAs for and new is an our of to amplifier, applications. land-based support XX% which satellite size and first the reduction quarterly XX-watt shipments In some we increased transmit of radar highlights. secured Ku-band introduced and enables communications programs. power turn multiple in and highest We C-band optimized SEMs Defense receive world's for

also our orbit solutions technologies mobile low solutions. order to We and These base satellite to launched across earth aerospace, satellite cell to recently enable portfolios large stations from incorporate advanced production connectivity. received a

to switched base a station In modules massive X OEM for infrastructure, LNA were we Tier supply selected XG MIMO next-generation by radios.

broad-based we the extending has QSpice, markets, over broadband simulation, were circuit reliability portfolio. launch, major multiple speed, value analog milestone customers and tools providing unique QSpice significant circuit X.X to major Tier a our Since of in-vehicle cycle to We industry automotive signal selected of current support wins. also a offerings program orders mixed ultra-wideband German XX,XXX automotive designers. improves for improvement lifetime released platform car value with a we million, surpassed design access from upgrade In and functionality and for a production multiyear simulation. and power its continue DOCSIS $XXX The management This applications, over a by design the the X. downloads. marking lead leading

program, this leading in-vehicle for automotive supply solutions will OEM. German Within Qorvo for applications ultra-wideband a

We from a leading communications secured another Tier platform supply to year. VXX win solutions German design launching for automotive also this X

the sensing by to Android sensors enhance recently EV forward automotive, touch represent Qorvo in interior the customers wins functionality launch. leading It's supply in and their worth Complementing was for ultrawide opportunities to that a ultra automotive Ultra these Wideband win volume selected from flagship as were noting in OEM. that supply their the X spring large significant largest smartphone smart respective selected we launched automotive XXXX the Korean-based Lastly, android OEM in a wideband markets are markets.

support in logistics, next-generation sampling advance multiyear applications. we solutions ultra-wideband X -- network retail, are management, our design fleet in leveraging and the efficiencies. for across home capabilities reach, and to These precision other secured extend enterprise Tier and India. wins WiFi, operators in location We applications, agriculture U.S. To wireless with operational infrastructure wins our we

from increased we high tier of leading Across smartphone our ecosystem, modules their strong the Android in our the extended in the integrated smartphone. support Android smartphones with shipments the highly we mass Notably, position Android flagship OEM market. share through of

win, secondary In receive, to low-band, ultra-high selected band, also ultra band transmit wide WiFi. we're supply the addition and to band, mid-high tuning

leverages expanded high-band and and customer in mid receive integrated commonly content path SAW next-generation Lastly, advanced the included we technologies the of sampling pad packaging with first BAW fold support main launched Qorvo's form and paths combined newest and improve factors content our freeboard architecture integrated XG other highly flip space Qorvo and and architectures and the network nonterrestrial and architectures transmit receive connectivity. received model. for like This Android to ecosystem efficiency future recently

Qorvo operational excellence. to for I thank the want continued team

we growth to quarter, market expect large quarter, the as channel as call our the smartphone most customer We have that, healthier and In focus. product channel with aligned be moved In to across growth the inventories I'll December investment as expect more of Longer markets. reflects outlook mix customer hand we aggressively profile to while March off revenue broad-based favors higher seasonal demand. design closely the securing term, ramp a expansion inventories And well reduce margin end with wins. Grant. revenue our

Thanks, diluted and Non-GAAP our Bob, EPS Revenue below was benefited increased $X.XX, guidance, our levels was and largest guidance. improved customer. good production for at end gains from significant Revenue content exceeding historical factory with afternoon, non-GAAP but margin quarter averages. and the XX% $X.X billion. our remained high August of was XX.X% the sequentially approximately all gross Consistent everyone.

inventories was September utilization percentage our silicon of revenue and higher during a a of percentage and manufactured external silicon foundries larger lower processed internally lower will comparison, cost foundries reflect and By December basis at A gross March OSATs. products at points periods third-party the versus and approximately OSATs. increase guidance of of XXX quarter. product impact the mix. During variances range above upside last August The basis quarter, of result end in and our from underutilization points the portion was margin and the revenue larger high was approximately manufactured factory-related largely at external revenue of manufactured XXX

fiscal this million, Non-GAAP in path performance-based see margin the continue clear Beyond year quarter were expenses to $XXX quarters due during year, XX% slightly then on back gross a and plus initially to incentive compensation. a basis. we to guidance our specific than higher full operating

X targeting all are product We growth in segments. new development across multiyear investing opportunities and

we're In and addition modernize initiatives. future and to growth will enhance upgrade, we investments, efforts multiyear latest tools These in as standardize support growth-oriented enterprise-wide also best investing practices. profitability productivity and the around

each non-GAAP HPA In CSG which margin the was XX%, out was in XX%, negative was million impact of sales, by or and quarter XX% operating was includes Biotechnology X.X% XX% segment. last total, from quarter. increased income $XXX division. Breaking the which of the operating ACG

and Biotechnologies reduced approximately Qorvo generated income million $X.X quarter, million. revenue $X in the operating During by

the and income the was $X.XX. $XXX Just sell we'll of Biotechnology BAW successfully share we acquirer. continue filters following million, per of the Omnia quarter representing to support Non-GAAP sale closed to end, earnings net diluted business,

to the flow flow $XX Moving $XX million. million CapEx and Free cash on statement. was was cash

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

Turning to the balance sheet.

from call, with at debt $XXX our in As our the cash million near-term and prior reduced commentary maturities balance expectations of the inventory and quarter the outstanding $X equivalents. and was of of million, with earnings billion $XX million had no $XXX down end, Consistent ended approximately we net period sequentially. and quarter

this represents XXX inventory, Looking XXX to of at from days decrease days. a days

to quarter Turning outlook. our current

earned fixed to million project losses, rate EPS items. interest $XX debt, We by nonoperating between non-GAAP Below diluted at gross million. FX on our operating $X the $XXX the revenue to cash or line, billion, and income in $XXX We million, and or expect with of XX% plus non-GAAP expected expense interest non-GAAP offset the $XX our the be income revenue million, on of minus will XX% quarter $X.XX is gains midpoint expenses margin paid be reflecting December along of approximately other operating range. balances, approximately

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

our inventory decrease December the again expect We in will balance quarter.

channel inventory, to norms. historical improve Android ecosystem, approaching that to of channel are terms pockets the the In continues longer Android levels digest. with there are OEMs smaller environment Outside inventory indicating take of will of inventory

We revenue fiscal above 'XX. continue to forecast 'XX fiscal

across fiscal year, enjoys expected to full and mix. or 'XX gross operating variability of slightly X multiyear fiscal the non-GAAP all our better primarily margin is growth utilization be with For drivers XX% Qorvo segments. tracking,

across are broad and We capabilities, of a markets. offer customers uniquely positioned we portfolio large technologies and leading and

growth. broaden businesses programs this we for questions. accelerate market large on expect to We please Thank line and time, strength you. the open to and diverse outsized investing are At exposure customer drive in growth our continued

Timothy [Operator UBS. question of Instructions] And our comes Arcuri first

Aman Tim. jumping is in for This

into as be at of about that come like Is starts XXXX, about should to be range? for fiscal a thinking to revenue the margin looking there Como XX% of back? gross Just think we how we certain should back utilization level trajectory

margins Sure. for input large a Grant. gross including I'll are the There such is impact. number of utilization can that and that. question. This mix factors costs, as Thanks revenue take influence

it market. of others revenue an nature So I that of terms to carry some gross end think a margin level or in the higher -- wouldn't of products due than business absolute

But base accretive with gross currently station about excess headwind station talking is channel inventories coupled margin generally line, to versus For which historical levels. weaker, demand margins. there, a instance, the looking base we've been with this our at is to product

it's Product mix can where manufactured. on also impact gross margin based

not processed for my we in mentioned, those that remarks, our last shipped and mentioned instance, and OSATs are utilization, products to silicon internal historical below higher quarter, is foundries external products by third-party I which, running impacted at are As manufactured portion a we've averages. factory prepared as of

input product mix, more of other from a bit basis. or the a unit can gross leading half affect costs cost that equation. given is Aside It's on the margin lagging complex

of utilization create sold sense, to in impact as the historical that And demand, those utilization Alternatively, costs impact can in future example, lower that future in demand. unit will higher it's be period, inventory. in anticipation For tends anticipated that lead production will cut lags. and in And volumes fall. changes

it margin. So rather there's normal, XX% a absolute number wouldn't path I to return through terms on a be revenue I level move and to of utilization inventory, our factors to that in would of we'll an plus. a run back again, impact of think high-cost efficiently, back levels gross the but time of us factories

Gary next Wells of question Mobley comes from Securities. The Fargo

XX%. 'XX know Grant, I prepared with above margin last your detailed be to your said you remarks, in up, wanted response I fiscal question. gross throughout year pick the at to times will

well just the weakness... XX% target quarters for few that did I So full would or And that strong your the above presume seasonal or of year specific but as the in say -- periods. be you seasonally is

Sure. achieve that's that's that it specific the XX% think I whole dictate what volumes somewhat where obviously, the we will dependent. it year, said to And a on achieves before XX% will quarter macro I at positive. and levels return utilization across

the market Okay. in I And year, think, quarter of fourth in conditions. this you line describing with mentioned, Bob,

a decline than XX% the more no quarter. in fourth implies guidance year full your so And sequential revenue

and trends quarter? double-digit the talking declines? Are call how as or which mid-single digit, So as I fourth much about would we perhaps usual seasonal is you in think, the purchase

we in typical we're isn't at anymore typically Sure, said COVID faced what second channel sure around the high economic to seems on inventory hits going as typical with it different this economic were see to expecting something as is, what we're just losing clear quarter, the time every along, all we're we've to fourth from the take all we various customer hit about, which, because we that Gary. talked level, factors. demand. I -- will largest make current markets our comments market think the rebound. our What end not we through outlook, given we're work to to is my And

what in to end Now come demand, typically largest customers forecasting is we're is see March. down now we continues and what our market rent

We business China March. usually our for seasonal have quarter Android in a weakest -- the

And we by is that some customer ramp Android largest have. offset the of a that at

So our commented that as business. dynamics far growing business to as most is driving call just view, of percentages that ACG go, our you not telling from I'm going are our percentages, the I'm year-over-year. that Grant that's

business, March. HPA Our CSG will used to about business on is not be what we've lagging largest with now. be business for in really, we're there talked in infrastructure quarter the this will business our primarily that seeing what's and start and growing going and the side, our up us And

all still be going when want integrate over moving for pieces. I add to we're going Grant, them that, I in fiscal if we're all anything and but So significantly up we're don't 'XX you to to to comfortable you the give we're year-over-year, know, March 'XX. the year want be to up that, comfortable

think aside, Sure. it, I'd covered growth XX, any maybe you we No, in fiscal Bob. right? to see the 'XX. XX%, I committed certainly We're say but disruptions that macro-related comments, not

Ackerman next of BNP question from comes The Paribas. Karl

in is XX% of clarification gains follow-up. the to a guess that it on I fair given just a now and largest your customer have I quarter? content say customer, the the revenue exceeds

XX% that X on it have up thing quarter. We we'll the within than won't say did the sum only I'd more any The comment the plus is about we in customers on quarter, XX-K. but customers

of unit smartphone near do expectations come term? gains Android follow-up, hoping year, impact MediaTek you both exposure could above of term units address opportunity how China double low should XG think was that or I suggested from not does Huawei grow you my longer China XG does incremental Most OEMs. overall to singles. your For your certainly next in digits and Android

part XG largest the growth of our large the he of was the I'll Android I'll Karl, take let part and Dave just for Actually, that, take Samsung. part a being since still first is recently in Android second manufacturer China.

make The what of to but the have market second brands do build their trying China. China that XG, point to actually I is exposure would most right, you're for do export is they're in like to in of outside we

in of that Dave what about more couple your So facts just least our in a about him Huawei. ago, China we're those little there, comment and just talk let and to with X a bit along seeing just keep was of mind, at all I'll talking weeks customers

Yes. Thanks, Bob.

And so doing prior size And of were phone what that the units with million seeing a and maybe about I'll to of month. you. just we're start the announced, ramp X Huawei for they kind new they

And tier phone a premium that peaked where we've seen so ramp typical up.

may Last that it's XX weeks at an look about you back of other XX if that seeing were million on of be But to it's -- we're on couple that incremental down, shipping the we million they actually previously, what units. the basis, over data, of see so side annual that come ramp. growth

So smartphones meaningful year. that's market total a pretty customer, you X.X at good per billion that growth about for of a not it's look but that when size

large China said, lot and part customers, it when of as to their overseas comes growth coming business. a of from business a is Now their our Bob

growth that's a see overseas of higher customers opportunities. our we're share and And business, that OEM certainly represented where in across lot very well we China and so the

a just domestic it's to China you situation, look at. have So not

You that And markets... many have lot of those overseas of those have overseas a market in at share significant pretty customers to business. look

comes question next Sachs. from Hari Goldman of The Toshiya

on what December? questions Android to your in about follow for we've what's specifically, And quarter did that, competitive getting related landscape guess, basis? trends in on in guidance the I sequential see kind I of a to the embedded And September just China wanted China. up the been you market. more

visibility. relationships And You got good your pretty customers. guys good have with you've obviously,

share? in it pertains particularly should we think as you OEMs concerns export XXXX, How around any market models out business? content to about As about Gentogen think coming your growth,

Dave, to do one? you want to that add

Bob. sure, Yes,

the customer got pretty China as in some Let's export to start. The see market domestic they've market. as the mean, in base I products. compelling where well

I said, was all ago. weeks there Bob of over As customers. a just few our meet got with I to

reinforce continue main strong. relationships we global to very a bring. all place they They value very strategic be Our what their that Qorvo RF. And on supplier is high for

needs highly announced S-PAD ago. deep their discussions them have to align new couple engaged very low, our high quarters a with plans, product of road and we mid-, on So we maps to on they're our that platform

expanding areas at in with power and wideband. looking sensors other management, business to they're such Additionally, their us as

overall those of mentioned, inventories channel are pretty protein levels. are the So the normal. customers Bob as getting market, to Many healthy

was been we've the as a becoming now tailwind. along, saying what So headwind all is

growth. starting we're So to see that

We had largest our X over in bookings quarter years.

concern past inventory true gotten customers demand and what unit now our aligned is. So production to forward to the they're starting orders and plans have now about their more place looking and

certainly a that's So improved lot.

inventory Now just having the and not channel the We're we're said that lot had being market. as that, as go growth anticipating forward. Bob end and wins we driving the mentioned out, in rebound the major design excited cleared our a of that's any we've in also, about

industrial follow-up, your of and Got signs in of then a weakness broader parts as or weakness some mobile, have it. signs automotive. outside of about talked peers And analog of clear of quick

sort been outside progress mobile, the question now. kind what I And But infra for of of are into comms is, are of through think you has March mobile? I outside assuming you of weak guess December as a and quarters sort go trends quarter you what couple seeing? trajectory of of the

Toshi. This Grant. is Sure,

a you take bit jump can me the Dave don't of and into and in by those then try color explicitly little one. guidance. but I'll add. total factored there each Let to for views segment, that our businesses is of guide We provide

return or number they're returned end out pretty serve as in pointed Bob the And that and not and a expected, QX, that rest to fiscal forecast year. phase of this markets, 'XX for -- growth QX, businesses the -- have fiscal year-over-year quarter, fiscal continue CSG segment all We of last then to quarter, see diverse of our we'll a ACG collection will the in we our growth. to that year-over-year we

expect HPA return finally, then to to in QX, growth. year-over-year And we

So the think way. are phase, you them want bit businesses of of if a out to that

if end probably HCA with directly each surprise to your as but It example, HVA, base you trends market. inside station an within market weak. look won't continuing of various you, Just there's the question, being

an that As base XX% over built. infrastructure the hit only A XX% slowed. is ago, X actually, business. revenue mid-band in few of rollout XG the Huawei $XXX our example, year-over-year before been China, million down last for we quarters. years ban has of XG outside station and But that the

So there's headwind we a some But one and continue where lot see opportunity. that's to market of weakness. meaningful area

area also there's Beyond HPA. though, that, the broadband within

have upgrade be slower be X.X very of position inventory a DOCSIS may level but pockets strong cycle there end share, in could a the high products there, of bit some We there. the and very

and where So and from strength to QX. grow our aerospace we're and benefiting significant fiscal group, the QX infrastructure say, is very within defense than, expect different fiscal in situation

a but a also lot of into cross operating the set a maintain of and footprint, the there's line. So why same lot efficiencies, share when get details, manufacturing the but the which creates scale is of on the businesses, them we you diversification currents this top diverse there

we cellular X is saw market, What I'll to actually, the this down. quarters that ago about in turn IoT add

expecting segment been not CSG we've IoT for been and as working down come through That's -- next well. back, as business coming that's the with -- out, us, cellular Grant IoT So inventory back. pointed to in we're growing that quarter,

commentary think been I well. as So that's some

And Yes, I mentioned think pretty automotive as from we're growing small well. you base a there.

wins. lot the design about talked Bob So a of

So there. we're opportunity the pretty growth about excited

next will drive of that coming programs years that will small for new the be over So that's all relatively it's of ramping growth off that But us. couple a base.

seeing to maybe our the not see peers. So things of exposed you're we're some from some of there really

The Ruben next comes Roy question from Stifel. of

ask wanted ultra the about wideband I to marketplace. Bob,

as were I think wideband. in had if don't ultra characterized ecosystem then. you've in Android know wins I few a they system flagship the back the for past,

market maybe the the then of lifetime about in opportunity of So talking I outside you're characterized Again, smartphones the opportunity about wins. if could talk you're specifically the broader in hundred million opportunity dollars several and you million you've past, a seeing that in expanding think handset. $XXX auto as and

Are changed? give accelerating you you anything can opportunity, characterize has on So seeing great. be an us And the that you development? update how if would

Extremely Ruben. big team's in Thanks, the what excited accomplished in some wins ultra-wideband. about Sure.

Android Google, we've in One couple of now. of been for the phone manufacturers, generations a

So -- we've can teardowns. talked get and about that, that's you

end and or second. were than going on think our you know phones with surprised a was in front largest phones ultra-wideband. is the platforms who what Wideband automotive our we believed And customers' about original from to it we first year the to said happen we RF for I was we one going in is. next think this take off acquired that I is, us What comments, Ultra again, the ago more when first Decawave,

adoption. picking on happening seems in and more What's a handset side the actually up to least lot be automotive we're trailing it the is at the

to know, it takes car. Now a as market longer you get bit a in little to

out in. and they're platforms now winning building those So

manufacturers lead to Dave wins is design in point to but And of The comments fast. that is working automotive, the to in to platform is out are So other the automotive going into the in, German Tier world, other platform same take and also that manufacturer U.S. X the will they around win now but with X, area. that we've German the current a to phones earlier ultra going I our up that we're come others his in support with want Chinese we're that wideband. many introduce in go been we thing handset working Tier plus will other expectation OEMs to won platforms mentioned on

there. from So or in we X opportunity can see And XX. up placements or lot X a to X automotive of go

they can to depending So and it's the [indiscernible]. be they use car, in more a adopt than just how on big wins ultra-wideband

think really exciting that's what's opportunities there. I about the

other So navigation, for that if of points, for into going various access a access we and handset, talked types of I need working also look now home at that ultra-wideband things it quarters seeing We're just and indoor another we're of which Wi-Fi And about look points couple your in OEMs is technology. that ago, opportunity. with kind exciting other manufacturers, products. at

that excited we're on things the very are there. So going appreciate your about I question. really

I Grant. have a quick for follow-up

post target inventory you Just the down balance year of you're I inventory? about Or you and on of December sort DOI and go growth level potentially in have as how either for next Do inventory, hopefully thinking forward a of ahead terms that or year. dollar in a quarter? sheet coming see

around Yes. our Sure, X man. We turns. usually have target commented on

would range Xs to for a pretty us So to X achieve. look be to high typical

next The Edward Charter from Snyder Equity question of Research. comes

a housekeeping, us percentage on each you First can for businesses. revenue of X the of give

Sorry, at years, missed the $XXX actually, quarter. shipping, aero your I a And it know about looks that. take look the quarter. probably then XXX close you if China And when air your average exclude and if you million if is revenue shipping over over were under Grant, XXX the to to last I I like when did you a you're

suggest bracket of yet, for $XXX maybe numbers. We trying per million, burn inventory quarter. those seen just million but doesn't the you're with dealing September to it haven't $XXX I'm

commented CSG you help don't can ACG would of but XX%. on revenue comments commented and about we the X%. made, we've of balance if level XX we haven't but yes, HPA of Android Ed. know outside the was revenue or what percent in the be normalized I there's... the Sure, already a the Yes. China And revenue haven't quarter. of China was revenue, with was I on

shipping we'd of demand can up to end is tell. we near it. add we're All still end But coming best under are we the

demand back those a sold... phones to but more inventories position normalizing, vendor Right. of common I of for changes most But it year-over-year, something your know in snaps and given normal, preferred said kind are you when being as

Yes. We've as help haven't it's and been we not this maybe do I up. shipping. down, -- mean, revenues will go means -- -- we bring that it been

quarters. So the we've been last up X

our maybe, channel and inventories. also And I distinction the Ed, would own between inventory make Yes.

healthy, even it relatively So would channel where commented in inventories, past thought earlier we we on think, had we until take are the maybe December. than

that's improving situation. So an

shift mix us selling that we're to we're going requires Our to through the the them see own inventories in achieve second as half.

in high-cost we selling own start expect and QX QX, through and in largely do we'll So inventories our QX. growth

When saw last the it are in varies, but... or bookings largest so, those what a year quarter I you normally, X and for bookings know in said out the you years

No.

Pajjuri The comes next Srinivas of James. from Raymond question

Just China either or a the on business, Grant. Bob clarification

is think, I expecting inventories be sequentially. coming of are your comments it's growing said the time, you're that, levels, about to I businesses and think March in the Bob, the you same the one quarter, But seasonal. from comments yes, at trough the China down

pretty much of China be that have March. out of Given normalized than seasonal would kind thought in better inventories

give only So some just why if seasonal can clarification on you it March? be will

a low Because from in meant for typically point was said. China. what a that's March, demand seasonally what perspective I That's I

March going business decline China mean it doesn't to business? your that But quarter? is seasonally Okay. your in --

I is much most said out the cleared -- What of inventory. also we've pretty come we

in Android our So seeing is are business. we this said quarter add to growth, which just I what

Bob what restate commented had I'll on earlier. Yes. Maybe

other in we do there, see historically handset expect the Just our China. also in quarter, low March, which on ramp of point is seasonally see largest do next But for we typical side Android. sales growth decline customer's terms to and in is March the of a

those So the their that of by healthier. are Android offset phone factors channel launches, largest is customer X and the timing fact plus somewhat the

think better be as will all But that typically said, to seasonality what guess seasonal. do we it it's means. anyone's than again, with So

customer largest has impact March. on largest Our the

see sales how let's their So do.

And terms then been content Bob, year gains. some you, also And of expansion from share pretty Makes been this think Got those sense. in came impressive. of gains it. content Got has for I it. the it's

X So because are about next some feeling of this you get this I months, sustainability the XX question about how of year. -- you to do gains to out as content look the from

So should have your if think how about premium help to in maybe as both the extent you content as you we well the could in us visibility, mid-tier. gains

it's can years. position before. our start been this and there, growth we I Yes. But our we And speak questioned customer largest phones. the to because speaks I'll the largest really strong have some one many with great customer products. from year are content their the gained mostly year, been to and to high-end we our as for and in new that This them investments we we've share of suppliers technologies these deliver grew trusted held sockets as well and making

that. about good feel we So

We're and Now bringing done remember, where winning performance-driven we're are strong well. capabilities customer. consistently a have they

Now we if TAM there, available the you look at underrepresented. remain

for we'll target So and of be a to that's us, able to growth clearly, continue to invest win there.

in in Qorvo. sockets So the opportunities be areas that's use. to will grow they not past in but strong areas the enjoy to also multiple that baseband been new also decide regardless our where we've of the only for We content

talked leading our and those technologies Dave spoke Again, the remarks, that manufacturer all about we've gain my the our that's continue customer. about I China also of out In to module. largest integrated and with types plus about to ultra the there. and smartphone new diversity along components. Android band wideband we received about mid-high ability talked share our bring prepared into where in

ultra-wideband also our That's going some grow to in talked there ability be power handsets, to some as the management. Dave about those of sensors, well. of

look as pretty we us ability a So our flagship our enhance grow tier the at across to I we portfolio, market. to mass the whether continue think feel or it's content, dollar premium good

from question of Securities. next The comes Vivek American Arya

in mentioned of or first of China sales December into down ramp the large X% should original sequentially terms getting I to you imagine flattish. one were customer, think so. your of For shipment the I flattish. kind one, be intention was December. stay a sharp their And I thought competitors The guiding

it sequentially? that's sales is just noncellular down market guide what Bob, to be curious, it trends some to I'm you Or when is of leading guiding these So Or is conservatism? big of growing that kind problem? seem customer

you I'll I've majority I motherboard. our are we And Mick. the before, remind Thanks, not this ship but parts in audience, a know the on of that said

we we see I customer, goes know. to when about lot of on don't A circuits. timing the maybe baseband So flex you're motherboard. the They're talking have the different of is ramp a the what than

those build they ahead motherboard. the So of

different. timing can be So our

also they if that make that you big. build that's want sure that see they We to blamed customer. remember, So didn't I an that had just at -- customer, if it's inventory the baseband

had naturally you ramp will a have as then down, would of pause. go see out, therefore, follow the they point may And So progression builds. up. They inventory a we quick the the

can tell lead you of because we can't So their ramp is product timing, of much the we the the I than are have most on products typically how comment on motherboard. the on but that business, I select circuits, different which

I'll there. Maybe, pick from Vivek, just up

we've that discussion our QX, exceeded $XXX terms around relative flat the by the just to $X million. was quarter, December of comment billion and In prior

are of Bob's to couple timing, point can X on combined make were we our largest previously. weeks difference. where minus a big So that plus those communicating a quarters or still ahead very of customer But

positive on trend line. net, a in So top the the

sense. margin. on then Makes gross it. Got And

So closer I cost you're December your to these XX.X%, be I think the giving are that you is X March, XX%. at explanation I seem midpoint, high inventory. guess, guess, because implying internal And using to quarters,

we start is not keep So low what start does going mind? I by your margins don't as normalized that to know fiscal gross March year? in thinking modeling impact it give next is get onwards. conceptually that it about mid-XXs? over that margins but from What I you're June about year, that baseline next how XXs? Is for to we we just should think understand Is about as gross starting thinking

on And the inventory cost sell in the that and we unit you this the Sure. some now the of mix as March quarter. pointed out, inventory, high that carrying depends of that we're through

also of to demand the March Some start see to that the the we as in we to the within forward look coming period. year. this utilization relates

So complex prospectively. question it's or answer a to difficult

then margin 'XX, that mentioned, saying fiscal and upside in from described. quarter, to have our what upwards, expect us for the March bit would seasonal our from And than there in for the of a full June as we guide ramp gradual But of nonetheless, still better it's imply because as March a quarter larger just in we a going terms into the I year the I is to be to terms weaker continuation you've September perspective. of the XX% seasonally gross now head that could

to at on and gross on when believe idea as we well going inventory gives Maybe utilization 'XX. a we're my back prepared annual fiscal get levels to hopefully, So did I achieve across entire an return I going you into track that that levels. of of some subsequently XX% margin the year the as through normalized at least basis we quarterly first could then some basis more how remarks, to say

of session comes Wolfe The next Lerch. from

a ramping depend your are start is I fuller and to for on needs question how going lot to ability a flow flow suppose the and The again what the market cash on once to recovery? comes CapEx on cash long. that's the

kind you could cash you if keep and at the the so flow cycle. that, CapEx you kind some talk for of the so for how And cash about can in expectations lower drive can long of levels, next

Sure.

improvement we'd collect a indicator to bit It's P&L. So receivables. the expect the a in as of given lagging obviously, cash we materially improve flow

on guidance cash much a expect course, So I of less. perspective. we CapEx in I too anything of around sales our but that can free wouldn't Again, difference different wouldn't terms there flow should fluctuate, expect or from see that. at of X%

Okay.

one the about Just talk competitive follow-up, phone was different as a things was that that architecture Huawei and the there, environment, with if Chinese some you very out, the into the some customers. phones is some anything market? is, there some of RF with supplying this I came China are suppliers could it's of effect noted and regard would the on of the that the the seeing local you from But capabilities to question that you're different Chinese your guess have a

Yes.

technology mean don't I mean, areas behind a certainly standpoint, we in. some see there's norm. definitely from that key anything out I think capability they're the of I

years so and the maybe behind And the you beyond. of outside even to across areas that probably if look and technologies of think RF, -- up the I phone a lot even there's

think from that... we see any of just because I competitive environment, a So don't big change

Curtis from Barclays.. question Blayne comes next The of

in this And to a that if earlier. I But said the I expectation than believe growth. the quarter, terms much mobile September better was of you you you in were weren't expecting. going see Android apologize bit came

if know XX% I to don't if you the largest team And your Mandate percentage gave You customer. customers. that upside didn't of clarify

willing out? those are So to you give

annually, Ben. we Thanks, Yes. We'll that give I we had did X. No, is This that out mention percentages. those but didn't Grant. just do

it In but was the revenue in not predominantly driven ACG, quarter, customer, our was and by largest so. terms upside of the largely entirely

effect gross on of Got back follow up to to largest out mix has just that guess, customer to your trying I'm the customer. the and margins. just that mix then that And your you. ask utilization on our your does versus to of And I -- to I'm I understand, impact... dramatically trying have how wanted gross much figure have shifted margins if any

Yes, sure.

to look maybe we QX just at bridging So QX. if

basis X.X% there points. was improvement of that, moving was of maybe XXX there XXX from basis points sequentially. XXX Of the So basis points underutilization to

over So to there's $XX was basis little million X.X, for leaves in and that $XX largely that of And a XXX guidance million points left. the QX. then anticipated

foundries silicon's network we that Now items, I producing other factory some of mentioned parties. that primarily product quality mix that third processing where included and are the but and that then it was are Qorvo's prepared them remarks, product the in on OSAT at outside

the cost burden we'll carry second higher that inventory selling same half. be the the in as So doesn't

question-and-answer like remarks. the to turn management to for I concludes our would any over closing session. back conference This

speaking to today's great thank forward a night. -- want to with investor Thanks us event. on for everyone at look -- and we upcoming appreciate your interest and call We joining have you Qorvo. in we