Qorvo (QRVO) 31 Jan 242024 Q3 Earnings call transcript

Hello, and welcome to the Third Quarter 2024 Earnings Conference Call for Qorvo. [Operator Instructions]

I would now like to hand the call over to Douglas DeLieto, Vice President, Investor Relations. Please go ahead.

Hello, everybody, and welcome to Qorvo's Fiscal 2024 Third Quarter Earnings Conference Call.

forward-looking actual involve from results expectations. include could factors management's will our cause to call statements risk that that current This differ materially encourage report the these affect risk statement associated with SEC safe release We because in risk today XX-K factors review our our filed business financial the the annual published as may in results. Form operations earnings harbor well as our to you on factors contained and the with

today's investors call, financial financial operating underlying our on may provide additional In both this certain non-GAAP today's and to performance performance. press of and we results. of that impact obscure supplemental noncash GAAP release trends analyze comparisons the and results information to expenses in provide without items We or to enable perform other

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

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

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

that, call the to Bob. I'll with turn over So

to XXXX Qorvo's welcome, Quarter Call. Third and Doug, Thanks, everyone, Fiscal

in delivering reflected to our complementing like and versus strong improved start in I would the quarter is quarter. the performance. another team by The for solid December environment outlook, demand our this November

others. new trends, on are standards playing and at WiFi connectivity, high out our capitalizing they to years, Qorvo and secular X.X many Matter, and DOCSIS Advanced, transition XG fueling new including Looking electrification. business a and X, trends over from sustainability like is the These technologies are level,

and Qorvo enabling levels performance businesses seeking central higher to performance measured charges. to power between transitions, time or these across are As in are is capabilities. a we critical of customers talk our out, where these and result, time is increasingly efficiency

factor. efficiency, our reduce increase We best-in-class enhance that supply solutions form throughput leverage unique competitive and customers strengths to

We road growth a a are preferred robust technology segments. for are products our broad-based leading across operating we and and favorably map, X supplier with positioned

highlights, turn year-over-year Now supports the station, let's HPA. in beginning for to March return HPA is in end with excluding quarter. to in our Customer base improving a and growth strategic our markets, view demand

an defense aerospace, contractor, standard with radar radar design and In of orders we several and won major international systems. large X-band and in received DoD domestic a support product new we ground-based

for customers We across also enjoyed solid-state our demand products programs. increasing PA and filter and for multiple bank our products switch

the active secular and trend multiyear mechanical the systems, RF many requirements systems are which both advanced of increased There systems trends level for of our business, including more solutions. one D&A transition to to driving electronic scanning of

to silicon announced intelligent we signing a Boston-based for supplier Anokiwave. of Anokiwave leading ICs definitive acquire a the antennas. is high-performance today, of integrated array active Earlier agreement

have excited team and are SATCOM Qorvo Anokiwave XG our applications. to defense We and aerospace, join expand and the offerings for

In power management, such and extending presence in strong products. Qorvo a enjoys reach consumer other markets are wearables where we as our

OEM. placements Complementing with award and for we've to in SSPs and a Android this, a wearable at a recent most Our charger rebound chipset multiple markets. begun leading a is see PMIC enterprise for PC

laptops. continuing an win a with position management in are upon We support manufacturer power our expand additional leading to of of strong

at our awards. Development Software Lastly, recently circuit of Tool the Product launched Elektra honored and the QSPICE XXXX Design software Year was simulation as the

blockchain are center supplies into we and for data strong. applications, activity power shipping power in to devices, be In continues design

brings our where activity JFET We are also protection in circuit technology advantages. increased unique seeing

vehicles. remains other automotive, not and design In but activity only for emerging applications onboard for strong chargers also electric

of DOCSIS cable of shipments doubler cycle. commenced OEMs. in the volume leading multiple X.X hybrid is We support Qorvo infrastructure, upgrade In X.X power our newest DOCSIS

to conditions continue to inventories expect demand cellular calendar 'XX. market, year the base through In consumed, we remain station soft be and

Turning applications. to for CSG. increasing activity automotive is access ultra-wideband secure in Customer

radar-based and access seeing detection platform new flagship momentum for Android including smartphone and sensors. a automotive, our in car also are launch. in presence ultra-wideband applications We builds This including in-vehicle wins upon ultra-wideband, other an recent

array are we leveraging we for demonstrated home actively ultra-wideband As involved applications as CES navigation. in at and a indoor enterprise of lighting smart locks, such door wide and Matter connected solutions and

orders In received sensors, touch supplier automotive leading OEM. we in support automotive force-sensing production Korea-based first for a of an

laptop and traction a health. increasing growing across smart markets, track seeing of automotive, are wearables and set customers We including pads,

design across designs, customers WiFi, collaboration and activity In reference strong and operators. remains

Android points, design is of wins with the Within in improving X WiFi enterprise providers' channel across X, access mobile Android certain continue for mobile the In WiFi secured volumes rollouts retail, grow environment operator, segments. India. with WiFi and ecosystem, normalization Qorvo inventories. In demand the to

In last shipments leading the in the call, commenced ACG, XXXX the smartphone support On our earnings smartphone of we highlighted OEM. tier. by flagship spring Android our content in launch flagship gains we

this content secondary the low-band, band, and Qorvo ultra-wideband, mid/high and tuning band, ultra-high the receive, transmit WiFi. to includes addition year In

customer's We with up are wins market now of building upon in ramping design mass portfolio. momentum broad high-volume this set our and a

quality, top was OEMs through Android strategic SAM. collaboration supply, Qorvo Android our the be beneficiary enter primary maps Qorvo to on with decade. mass-market are with innovation, units XG a smartphones and that XXXX customers new set their to our long-term awards road as positions recognized transition for the to China-based To XG X product partnership. technology XG by these Android end, In

sustain factors. continue strategic and we adoption supplier performance the reduce Android architectures as products to position XG and leading OEMs, our enhance launch global new new that to form simplify To and

main smartphones. sampling customer in highly is a solution the This to launched market. design accelerates During mass-market high-band integrated the time traditionally quarter, content placement It X This by PAD. newly low, XX%, and mid- path single for in area and optimized expanded reduces combines main LMH of simplifies surface our offered path we placements.

discrete developing density, BAW portfolio, solutions high-performance advancing integrated our In filters. also highly our to including of in increasing functional with are addition levels we technology

using BAW technology. next-generation released our BAW we received During the for quarter, purchase recently orders discrete filters

the bring to we inventories our market aligned shipments channel are continued closely down, and more During demand. with end quarter,

the demand ecosystem. improvement in We end are also Android seeing incremental market in

expect total single We the XG. we enjoy low collaborate portfolios growing For maps, benefit a transition XG smartphone in we their we over customers position positioned RF product wins, solutions. supply serve to calendar 'XX, to XX%. customers as and strategic very for grow all the units the on units road in digits, and with their The preferred with competing well industry-leading we to as Android continue to we space supplier the are X-year

market inventories Qorvo's due key primarily products and improved summary, our to with proactive gains on programs. demand content for end In to efforts customer has align demand channel

growth. customers This technologies delivering positions are products favorably strong and activity We for design industry-leading and and remains content Qorvo durable long-term robust. continued

hand with And Grant. over the I'll to that, call

Bob, and afternoon, good Thanks, everyone.

range. quarter midpoint the all $X.XX guidance of $X.XX, our non-GAAP exceeding was for Revenue gross billion, margin was EPS the XX.X% diluted was non-GAAP and

Revenue increased approximately year-over-year from to significant our XX% at benefit and content gains customer. continued largest

communicated growth year-over-year achieved the HPA last during we As September, growth achieved September year-over-year the expect and in ACG quarter, March to quarter year-over-year growth strong quarter. CSG in achieve

September lower variances from higher revenue of unit larger during costs to quarter. is to gross factory-related impact the was moderate. Factory of underutilization the periods Regarding internally a and which to utilization improving utilization, and manufactured continues December led portion compared margin,

Non-GAAP operating million. expenses in the quarter were $XXX

Alongside profitability. driving product X enhance also augment critical support the growth, catalyst are we and continue growth-oriented segments. productivity as productivity initiatives, launch multiyear growth initiatives across designed These a in it new We continue development enterprise. multiple future all years, across business invest for investments, these to to spanning to is

income In was non-GAAP quarter earnings total, $XXX operating XX% in per million, Non-GAAP $XXX representing diluted or income $X.XX. share million of sales. the net was of

Turning million, generated setting for cash to during the Qorvo. a that of $XXX statement. flow report the to new We're quarterly cash quarter, flow December we free pleased record

Our The stock and for aligns that $XXX repurchased $XX balances share the cash underlying and million, with and delivering rate allocation per long-term alternative including considerations. the ensures value. strategic our our outlook, of capital shareholder of our period expenditures repurchases our at considers with return approach pace growth factors, of debt goal of other we share. This flow, free of maturities, cash and $XX approximately several capital financial million capital relevant strategy future long-term uses were

as equivalents. sheet, long-term billion over billion approximately $X cash $X.X debt and of of we end, and balance the On had of outstanding quarter

Regarding Subject to XXXX December. mature presentation, notes expect in changes to the later current and sheet have in environment interest balance will been and retire notes rate this reclassified we the as currently year. these factors, other

successfully a of net balance we In $XXX line inventory the quarter sequential shared net inventory period. a million. million, We with balance over previous during reduced call, of our expectations $XXX our decrease with ended earnings the the

quarter. December efficient days and quarter in this This In represents commitment terms continued the our to September XXX reflects quarter. expect of in March the inventory a XXX improvement days the days inventory, from reduction in management we of to decrease

Turning to the quarter current outlook.

$XXX or the of plus approximately minus $X.XX of gross million, diluted revenue the million, at expect $XX and of range. XX% of revenue margin approximately midpoint EPS non-GAAP We non-GAAP

periods of Relative to percentage utilization. inventories December, internally larger revenue previously to higher reflect lower cost March a of manufactured we expect during

As sell to of second currently reflect future increasing and these of costs higher-cost gross We the that it half utilization. inventories these levels margins calendar the through, higher-cost, have this inventories through expect previously sold manufactured year. associated paves of most for by way

or expense on of interest related quarter million FX our in fixed gains income million, spend. offset rate earned development program with will variability Below expenses operating other cash line, losses, our approximately project $XXX timing March We items. debt, is non-GAAP paid to income be expected operating the nonoperating along expenses on to interest the reflecting labor-related $XX be and balances, approximately by the with

In enable for a with acquire tax to facilities. well and to closing the plant and which to assembly the the partnership of existing to operations. will operations we test our Beijing and is within of as continuity non-GAAP each XX% XX%. announced equipment includes transaction, Luxshare of property, and be facility's divestiture of the a rate the December, as seamless workforce, expected Our related Upon assets, Dezhou fiscal Luxshare range new 'XX this

engineering will serve position Luxshare support product a globally. as that employees strategic Qorvo continue believe adding China. and strengthen in maintain sales, to to customers our test partner customer our We will and our

manufacturing it of efforts operations As reduce of aligns our capital to step ongoing facility this is in closure in our the Branch Florida to including recent This intensity. further with our actions, and previous our Texas. sale strategy, Farmers the relates a move manufacturing

our support all We will ongoing and an are supply complex which managing factories, segments, operating remain focus. chain, a efficiently including X internal

capitalize a operating We of segments. manufacturing will of uniquely maintain and growth is products production foundry outsource where we each well multiple X network partners. to positioned our where strong and Qorvo OSAT drivers it on leverage internal our differentiates within

diversify revenue, investments and confident margins growth. advanced development are will We our and our market, accelerate product expand that portfolio, technology in addressable manufacturing broaden our

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

Today's Goldman first Hari comes Toshiya question Instructions] [Operator from with Sachs.

I had two questions.

your only first last on really year. growth a job guys gaining this not largest it's your again, year, a the this content you're little board. how obviously, at know side. content year as as customer in across the for I Bob, but content early thinking The potential at the Android well one to on grow you but did customer bit curious about largest good

on Korea-based great how you're color but your You board. the thinking across curious year customer about the gave

best about me thanks question. you ahead that think it with some question. some that address gave and night confusion it's I first go And seem the business, your it your so our opportunity have reports does for Toshiya, now created last I

sockets engagements Qualcomm, Based nor our we on largest been not been we're share they're any did one design largest with we've in competing of any on of that wins competing investing our challenging and of do we any believe engaged They think them our for at our in. or the sockets our don't named, it's I see sockets in known in we're customer. win competitors, the customer,

fact, can same would them, confident tell ask we're you quite thing. they you the In

the made over company ultra-high Now specifically band. won the We've and only it X to share was that XXX% band, were on calls, never last ultra-high had clear a it we the we of years. consistently socket, past multisource

look the band the ultra-high Teradyne see latest at and won Pro fact, and models. Qorvo you on In can iPhone the Pro in Max

And I even with performance-driven grow I've engagements, grow customer, know customer a and 'XX. you our product winning FY is performance. of answers more we're our multiyear said wish your many teams and based our give to but on clearly, expect consistently I said technology and Toshiya. FY investments I our we that could specifics, and in largest I 'XX that in more think question, this

gross the Grant Yes. follow-up, And appreciate as I color. on the my margin one then side. for

as underutilization the in September importantly, ago, headwind in think was Luxshare And the think what year, guidance. about And term? December, should last that of, months the you more of points you one deal, think long Curious we progress margins? embedded sorry, shared quarter what's margins I basis the how X we gross how potentially charge benefiting through trajectory gross should for about medium I one. your had March The the think, XXX quarter. to

Sure, Toshiya.

try and order. all those me in Let take of

one them half, should less it's underutilization out, than about over of clear those I first terms balance inventories from through reported. and a had the previously the the charges, the year in half. as So what little the second of higher-cost half, working pointed maybe of we And we'll be in impact this

sense the give you a should of timing there. So that

then was percentage a addition periods it In the internally during when was and in product a then prior higher be something we in utilization. so at lot lower any OSATs example, of moving at given built, the sold. we and external factors of of manufactured to the September for underutilization, foundries relatively when There's what manufactured high anticipate in that of timing had built influence versus where in period quarter, percentage to was mix it's gross margin March and processed December third-party silicon a that

this The periods. the obviously, products periods, quarter. effect there's underutilization past lag described in converting sold last future in So I

plus But no to returning beyond time. guidance to margin of March, over change our XX% gross

as well. I it's and higher-cost in remarks there utilization mentioned, factory for forward. the it's we'll the line expect sell to further will continue as I commented worked on opportunities that have reflect path front of get my on of productivity we inventories, and we prepared to all levels half, clear that, going have utilization that margins the of I that as as execute through second through We improving, sight in encouraging once the to mentioned, higher

comes question next with Stifel. Roy The Ruben from

sort quite elsewhere. low about like Bob, you total How in single It for the think have that first said, thinking year, and mix and think forward? you're the of I your XX% XG, you all, as assumptions about would for so. then and well, Android on the you unit of digits, market; are obviously, seem you non-China Korea China Android going doing or

progress kind of wondering kind shake China calendar 'XX. where out think Just you you through things of with Android as

is This take that Thanks one. for the question. I'll Dave.

strong term. of all one the the products, care have we've And quality really said but for there on customers their Bob our we mentioned So as you deeply them is before, supply They supplier. product we assurance over the trusted And road many, the for engage years. with our our as have the deliver. special table many and to that preferred we've supplier long technology, as We we learned also and it's that Android all Android been about leading be And for the global our that for thing as strategic really multiple enjoy customers. seat at supplier a position a the on we them years maps. out

and can't meaningful out expect You to share. any and the in come market of just gain

great quality, content supplier well. for in So mentioned, from as at partnership OPPO, outside includes as of customers, we're XXXX, the Bob Samsung proud of in SXX. strategic Honor, our we China top supply, Bob highlighted Xiaomi and new position awards our China and received also And Galaxy that the Vivo. Android for awards innovation,

a and provide lineup path, And full secondary we year, mid/high we transmit ultra-wideband. now, years this multiple For added band, low-band, ultra-high WiFi. of band, tuning

a for integration also on that performance, latest future we've new in content ago, you Android had a level with brings for lot purchase our received got of tell our initial excited SAW. and of a purchase filter and mid/high receive. this size leveraging that And for our technology and that well. great excited to the We're announced few band first U.S.-based integrated we we're BAW And product part orders about customer. diversity to quarters next-generation We have as for phone orders a also other

to great a best got sensors entire We really we've ultra-wideband really our the with positioned XG to and their power the with we position years. of customers And can and lot feel we touch as over believe content coming we're so transition products ecosystem. about across address Android opportunities grow Android good new our to management, continue

How is going That's first assumptions if have about to speak great. bit of XX you thinking, and as little is flow deal the know follow-up of around commentary. the you about XX sort longer-term the A But CapEx on longer-term think that to quick next I Luxshare anything that, of has sort to changed, I this close sort CapEx. the But 'XX, early. the Clearly, strategy you cash are for with around Grant Grant, part so half guess, strategy of a could you CapEx? maybe months? of

look Sure. we'll said, follow I The flow question, cash we always forward, the think as P&L. as I've

dictated the mentioned that largely, 'XX So Bob be growth in fiscal 'XX. and will that by

CapEx, we X% of additions If of it to to serve it line, capacity do that required be our less terms response top as continue it. percentage expect will a in in made, the demand category. capacity the and there are In to or

help intensity, we a expect incurred what reduce provide found great relationship capital the and to in really multiple benefits of and it The to is Luxshare excited as agreement those there partner sites. As improvements to Dezhou, cost-wise time we Beijing years. the we to today over increases, for over locations. there cost in that ability confident to obviously we'd as we're And a some those and transition our Qorvo sale partner with at the their relates similar we're rather is volume

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

Skyworks right of That a really confusion. A inventory then on bit shifted little high a little seem modules. to which content you thank that's shift normal you're can rate clearing talking you the the bit. that have separates fairly off back the competitors. gears seems I very you're about whole for I think don't in even part be well appreciate here, China other now. a very run bit, be Maybe couple to clears bat. now things. But digestion, threatening much Chinese know and market. they the lot in you has these doing you we to yet. I modules, when up I think, up the get very but little Bob, clear any Android that integrated don't of gain and a And all, The suppliers from that. picked

may So one, finally all So paying had parts I are by it then I'm or just a individual have isn't content to an that a must out pieces. to had that quite you just that into combining China module, for the gets the not on single trying in how Or follow-up, equal sum of content-wise, of pulling And premium? a a to normal rate. run before Is a get they it idea back shakes be when the they're please. average? content decline

of Dave. Yes, kind depends. this It is

Bob our low, mentioned So mid/high.

mid/high obviously, when that that we we of competitors. combination we had can a with share, that. lot customers support platform. a high there but what with shared And But as of enjoyed to of some that's generally we used overall good other content altogether, we so the And which mid/high share be pick which up pretty low-band, the a the integrate we some band, low,

strategies different have. at that our the customers look SKU You also have to

So what depending content. be filter may serve, or markets on less there they more

their across maps different So and support as their I we Bob them, to solutions mentioned road to with architect, mentioned help well, as those tiers. long-term on work

fit can with a tier global have that they're regional to they doing product there. needs SKU they're whether or the we that doing the along So SKUs,

historically in sold remember. it where you're that Great. is Yes, mostly idea mostly can could could, quite all, as what? you mean, that that, discrete some with you're of it support you I before? Is are the a And maybe did I in whereas not then that you of if know can it driven that those you some time, I of who, the seeing capacity doing Well, And WiFi? filters let's into in modules going. have give first long deal haven't maybe Texas by where, bond just much us I that fact if one. now.

Yes. interesting It's an one.

for use discrete looking the from business us right? in customers, like us. So for we've very market. it's as to and technology because filter, I'd like a more for module. in And even good example, latest discrete been It's you on huge for the we performing filter It said. want product are a that of And greatest not market, very even they're WiFi. been the They on not the focus modules, is performance, just But a tier performance. paying for an still base XG, a

excited So about products. we're those pretty

from The with Karl is next BNP Paribas. question Ackerman

XX% which if may. sale Richardson the I question continue peak volumes your revenue exceed XG With was also than in your unit shutdowns wouldn't A margins the from on but Grant. historically facility, Two, expansion I lower of as here? believe prior facility, grow for of I first gross why Branch base to a Farmers guess Florida SAW, and

Sure.

talked function productivity then So those are enhancements. a we've about, of utilization. it's largely as all And

that significantly smaller some also addition those mentioned, shuttering of producing So in to die. you facilities we're just

capacity grown so has wafers. that of have effective regardless And number we the of

can more given die you wafer. out a get So of

I board. And as a there's looking there. productivity across for say into lot forward of we productivity there's So work us the opportunities would that

to So initiatives achieved in And do. we again terms why utilization that productivity it's have a still of largely haven't we issue. there's XX%,

guess, could very color helpful. you Bob, XG XX% of the constitution the us year. XG also calendar across in you growth the unit If mentioned OEMs? that that that calendar be if on 'XX, grow U.S. and Korean give OEMs this curious I'm from only predominantly that is China is or done some would maybe units in Sure. Android would midrange I over

all question, [ moving XG. the also the are would the Karl. Android HBOX Yes. Thanks seeing ] manufacturers in primarily not are China, it manufacturers. into we're for the include that so It's Android Because ecosystem,

of comment growth. Android most broad ecosystem see it's that what across we a driving is So the

The next James. from with question Srini is Raymond Pajjuri

puts quarter trying I takes the way. guess different guide, understand to by outlook, your solid pretty and the on March segments. Bob, by just

think seasonal. Android I bit smartphone quarter, that back like on But it looks coming the imply and a is increasing. your going grow based HPA seems is in said content which what business said, to nicely you is March to probably is you

So I'm why seasonal better just as curious it's as look we the not quarter? to into March than

this Srini, I'll on bit views don't I'll Hey, segment, Sure. each. Grant. our incorporated question. a by are is guide but specifically that We color take guidance. in the give total of

expect improving ACG, In year-on-year customer. substantial seasonal customer's China despite in associated inventories as our ramp. our smartphone decline healthier and the as largest unit Android sequential channel by is the launch flagship demand offsetting we largest fall with growth well Partially typical decline that

growth defense sensitive sensitivity represents of and timing rate top a due the expect some more faced except including and larger making segment mix all bit some perspective, headwinds now also line, year-over-year that aerospace those infrastructure, customers station others, over we across such those some station. businesses, capital-intensive end programs of quarter-to-quarter. HPA and Consequently, From to of base HPA, a markets interest to the the In the of more defense those serve, build-outs. base the of we as half

'XX. ramps revenues, half through year-over-year expected which areas by first are March, from then CSG, meaningfully in year. fiscal we the persisting quarter talked In of our supported the slower-than-expected It up will March IoT-related also And growth probably be WiFi we've QX about. expect in in last

the opportunities market areas, I design there targeting already think, for ultra-wideband, and announced Although to automotive earlier. be we're in including our enterprise appears XG on adoption smartphone, the WiFi, and by Dave the CSG connectivity lie in significant weakening, and smartphone. there automotive growing supported secular in which and areas, commented are We've wins VDX some general, auto industrial, of additional

then, flow, a the That's half of a And great appreciate strong bit capital. with cash in headwind I very little Obviously, you first Grant, color, very, here. Grant, working that. had

nevertheless. a has impressive but quite think I Now that tailwind, become

And you're kind cash you thinking that to relatively can mentioned about about I flow of how CapEx forward? So again. come might going also suggested be small. is you talk inventory down fairly think going you

then you your buying an thoughts it going looks to acquisition are just and forward? And the cash the made going want So back forward. guess, obviously, shares. hear what flow generation uses I like cash for you've on been

if talk be you So helpful. that would can about that,

Sure.

quarter, there's customers' to a terms CapEx up. line point cash flow going In to our out, and would few follow I takes. expect capacity additions for of of and level next That's our the the for you puts demand. be top as there support

quarter, I be That's quarter under year of a last under. reduction up the the remain significant that to I X%, is but March on expect monetization expect So limit receivables around would that something our in well continue. inventory tailwind with our The along of been the will in balances.

as much we're able inventories through purchase So new rather now you're down material. to starting to come than as sell see that

helps that cash flow. So

I And into fiscal calendar throughout will XXXX and this take be December. It's dependent buyback by of grow notes, which throughout rate we'll then pace we'll as year forward, the on out year pointed Looking maturing out, our look fluctuate. and the obviously, to 'XX. continuing to our

in are overall, some there a But see items there. March, basis on should additional improvement. we quarter-to-quarter So some

Matt from Ramsay with TD comes question Cowen. next The

or devices. dovetail term the of AI, handset guess, market, that, you TAM a long more What the over of guess is content expectations puts your gains where in your I that with of devices, RF the distinguish through in compute the is space company jacked out RF more market phone just content driving visibility to as a to you some flagship and do commentary in can and or like about accelerating in maybe it for AI ones, figure I'm in with and trying constraints your et my question lot and I understand and itself additional presumably a resources things as Bob, cost to memory, increasingly bit customer. what proliferates handset on are cetera? view trying cetera, trying I'm is, comes terms to for these your content taking out that AI that, driver adoption et visibility see you R&D into up about dovetail in company? of and board the going is to large itself, power, particularly Or get the clients having as

days, you Dave. is but This pretty AI, Yes. exciting. with as It's know, early it's

you of better lot and data new processing can phone. definitely, power improve network could to to RF. show of advantage going to want compute that, hit the more be a And replacement put it the means AI already. out, on key device, and that over upgrade the then It more pressure mean, to people a going be should rest I the capabilities take the in the that of think of rate as pointed it's points as course, is more phones. catalyst I more the which up help you drive and on in

to drive the But to consumption, market make IP help, so run to battery improve smartphone our And so forward how management. and how help that, we to there's to looking we with we RF and But deliver And the performance. that and RF life lower the can address to on it can areas power can have also phone. a and more it's this better in could out. there but current power And problems, the reduce further. AI in and early, we lot AI can use us, room phone management better we're be of deliver translates into solve consumption those again, to the plays help power definitely, see

an just I discuss a one, you guess, my as announce financial terms helpful. today. I but and quick guys That's know you it's or acquisition didn't whatnot, follow-up, did

people a in, you bringing any there the color technologies around helpful. give would If you're be bringing you're that in, the just us that could context little

question, Matt. here The our Thanks will that a silicon existing is product onboard can one. Grant. RF portfolio excited we really take and our bring beamforming with to I'll D&A array especially our leverage the for to antenna phased complement in systems advanced This Anokiwave bring experienced packaging where talent Qorvo. the group. of capabilities We're team They technology highly capabilities. those at

revenue expect do you our single be to dilutive announce as impact guidance. that's guide. quarter, the terms EPS the factored accretive and close and will into the into mentioned, but deal, Initially, and to our this we margin, to add gross it In quarter digits the didn't of per is in terms, low slightly all factored but we

with question Wolfe is Research. Chris from next Caso The

businesses, you I of speak mobile some guess wonder certainly business, to correction, the seasonality want kind patterns. the rest I guess like that us how the quarter, expectation going but recognize are of And to of year. of to only the degree apply seasonal nonmobile if I in then behind to the for And is some return to that does through correction? could the which still inventory normal it's guide looking for you one

the our on calendar this any with absent But in little success customer a and and we areas, comment disruptions, largest our year-on-year. gross aerospace It's profiles. customer be of margins pointed worth be or content defense will our largely. we're to and out year more would and ramp pointing revenue to early the in our what seasonality that any closely to macro-related and given grow balance specificity It's programs I out, the aligned 'XX those fiscal our having improve do as success expect gains

the quarterly revenue So shape it we we similar that of anticipate or to to expect across very profile look 'XX. as 'XX,

we Beyond the and diversifying to to investing, 'XX, platforms we're pursuing technology on development. customer win business, have where customer that product proactively the our justify engagement focusing substantial

helpful. That's

to update follow-up an for in correction, to if growth the a could years businesses. perhaps a what you in outlook And different lot look of longer-term you next us perhaps As know rates that, that. and think CSG businesses There's on over for kind businesses? those What's could we this your HPA give you speak the changed those may the I have of through as expectations And X or of some parts there. moving are so?

past. if we've the including other X/X it is in commented metrics the Grant. we've This too. already. smartphones as on is take having long-term of a primarily think commented that of I ACG, business, that Qorvo is to decompose and this growth change But portfolio cellular businesses tablets that would No revenue and wearables devices, the I'll line. on largely to one, of contribute diversified you our the and about that

composed our our X/X other of is of The CSG HPA and revenue businesses.

WiFi now and the than is be always to over HPA, corporate half It over CSG, case. Those defense better is typically. hasn't base significantly An aerospace. that then have been of And currently. that business, business station And HPA half used larger. gross margins

from And there's businesses million million so of and that HPA they it's underrepresented the an in we $XX billion. to range opportunity, area where that's market at smaller so, the or Between time. annually portfolio still opportunities CSG, $X but and a have $XX in lot HPA address of

room rates. a our comments substantiating there's double-digit growth to of grow strong on lot there, the So

ACG to Matter this brings and defense Our largest franchises our we're customer fiscal and for financial of all in looking at very power CSG. I collection resiliency. as combined, within investments And our building business 'XX beyond. are scale some and and programs, HPA, and pointed large businesses out, aimed diversification UWB in We're

in it's So rarely, all phase. ever, if

note from segments, It's largest manufacturing businesses internal in our each capabilities. all that operating benefit shared also to the interesting of our

nascent on we Our because the over grow capital businesses. rates more small less businesses capital. simply the relative time, intensive those And in to expect rely of external growth

is question Thomas with next O'Malley from Barclays. The

of your particularly your into 'XX? I and a in that of Huawei's how question as on for wanted back you entry calendar Android get about smartphone kind year 'XX you XX,XXX-foot the in the Android, broader penetration ask for the what outlook estimates Can view just talk internal impacts Huawei the market. into half are just year to calendar

had we what revenue, currently also Dave, do. we

Yes, a question. Huawei. with good revenue at at point is very that's But low, X X near or this

there, done are pretty of some that on think, have those People the the newer known. and is performance phones I think evaluations, out ones, performance phones. the widely there's definitely performance challenges I

them we approval. think to time they other that could export carrier probably very difficult So a don't markets. They getting have

they're China. to think limited we So

we look performance calendar to the so think XX you in Mate did since million 'XX. And at date year they their about $XX ramp, if

and added the take units an data 'XX. million months you incremental project start to in of you X last million If CY that see to forward, XX XX can you

we're into models. how of built all kind it that's sizing now, that's right and our So

We'll that But number in that any that significant Huawei see think was There sustainable is. demand how how case, units unit about plays to from out users. have a some billion when of market. X.X smartphone any of probably pent-up is not those really you and

not that we also it's when a that coming So things. scale And shares as our Bob market I growth earlier, about outside meaningful customers, market to China XG. have us already about pretty think ones the lot of where grand meaningful converts has the to XG talked moved And is of China. on of they mentioned the from a most that's because of China to

with as So for grow that us, the comes a into portion work to in and look to present continue really because XG as we're those market our to the today great opportunity market. we of at customers XG not

enter you? capacity share the talking one remind that having with going And in why they a you Helpful. filters your end, were And layup if a us and profile keep that you just high if and think bit have the at at a market. after competitor the of that of bit favor, more since was is give I go you particularly positioning that market, look Android environment competitive Can in do why today? there, competitive existing you'd to But BAW customers about in you now. your can you the maybe your

Android market? the to referring You're

The Android market, yes.

mean very these been think on I very, with long commented earlier. I customers And for working Yes. time. I we've this a

I the been years. the was I customers China we over a up about lot of sat our quarter, In mentioned all of just in there's mean And trust talking relationship and with long-term fact, got. these road we last awards maps. built that's

position other confident there. may So come leadership go, competitors, our we're but position very maintain they mean, confident and feel that I there. we'll we'll continue And we to enjoy our leadership

This remarks. would our to closing for like I conclude the call does turn to back question-and-answer management over session.

We us upcoming to tonight. We the have with investor great want on we look speaking a you call of again, to thank and interest, evening. appreciate and everyone Thanks for many forward events. joining at your

presentation. conference Thank now The for has attending concluded. today's you

disconnect lines. may You your now