Skyworks Solutions (SWKS) 29 Jan 212021 Q1 Earnings call transcript

Good afternoon, and welcome to Skyworks Solutions First Quarter Fiscal Year 2021 Earnings Call. This call is being recorded. At this time, I will turn the call over to Mitch Haws, Investor Relations for Skyworks. Mr. Haws, please go ahead.

Rob. you, Thank and conference everyone, Skyworks' fiscal first Good welcome XXXX call. quarter afternoon, to today our Officer. With Executive Liam are me Griffin, Kris our Officer; President Sennesael, Chief Financial and Chief and

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

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

everyone. XXXX, Mitch, expansive Skyworks of markets. quarter delivered welcome, results We and first mobile fiscal quarterly record deep records to and spanning customer leveraging broad Thanks, both for communications. and quarterly unique of engagements, in to our reach earnings technology and margin global financial operating both wireless the new established power per share, our the lead opportunity more model and advanced transition demonstrating revenue, the

of quarter. totaling $XXX operating guidance operating million flow, share the the generated of in per we midpoint more looking of by guidance. margin exceeding detail. $XXX posted the in XX.X%. strong more quarter earnings than above Now, achieved gross of $X.XX XX.X% $X.XX, of doubling margin at We our delivered billion, revenue and We record We effectively our year-over-year earnings. $X.XX, cash million And

made increasingly to two invested dynamics, will learning, being the of demonstrate, touchless connectivity and global yet applications, store-to-door in prepared mobile transport, phenomenon, doubling The growing in upgrades and those and results and gains have device key markets, scale. delivery, content that where of are core benefit a autonomous demand last into remote we've Skyworks essential in commerce. gains The expanding speed high decades is challenges. These largely device, have technology the the driven by cases, ongoing our address per a critical wireless This accrue face companies from deeply will even new ecosystems accelerating or to video for these services and infrastructure technologies outsized some Skyworks. always-on over these pandemic. tripling conferencing, the the As count both, an for including telemedicine, investments extending for is are

are gallium SOI, landscape, role We our proud with shaping fast-evolving arsenide, packaging to in high-performance state-of-the-art and BAW leveraging to partners technologies technologies. play instrumental and key an customers, the TC-SAW from collaborating filtering,

demonstrate around themes. Our execution strong these in results QX our

next ramp the and accelerated the Xiaomi array supporting we Xs. mobile, our in of Specifically SkyX Tier captured other we XG Samsung, wins existing diversified of across wave launches design at customers. a and new of IoT, portfolio, Vivo, Oppo, In

applications. specifically for at XG advanced manufacturer. connectivity connectivity reference CenturyLink Tier XG for We audio amplifier we new cognitive multiple targeted gaming ISM solutions solutions, EV VXX latency solutions powering smart premier supporting receive home we their solutions shipments the finally with we Specifically, of at we in automotive OEMs, delivered infrastructure, modules, we OEM. world's base We station points for including cities. world's access the deployed Wi-Fi Toyota and with the industrial, latest at low headsets Itron’s captured Fitbit ramped smartwatch. Google And wins multiple wireless accounts. for X systems, In In automotive, Wi-Fi Cisco, first We and accelerated partnered XE for and multi-standard solutions European leveraged And Volkswagen top X with shipped and connected partnered delivering at their ASUS, Aruba. safety design, router. supporting enhanced NETGEAR, network MediaTek

opportunity Moving forward, bar for existing and to across scale of complexity that and been in market higher. with essential increased enhanced XG, These and has address multiple broad directly gains Skyworks of and never customers. are both our a With expansion network device technology protocols, significant performance in trends combined rise purpose-built a spanning developments, solutions band seeing propelling confluence translate Wi-Fi a new Bluetooth. count and the technologies with set key we applications, UPS all wireless spectrum

current creating Additionally, content catalyst, to be with new auction opportunities significant C-band the our platform. a we spectrum for expect SkyX

a embrace power broad XG, gains set the While billions performance cases, to of smartphones use into the of will extending were first devices. IoT

as XG applications, work, to universal transformative summary, catalyzing factory home educate, home, from is play the solidifying leadership connector see market the meaningfully but to live, just we car from from acting we ahead, the the connectivity alters In technology, as while and new Looking the floor. a as anywhere. way not Skyworks

to this turn over QX discussion for reflects clearly QX. call our I for will that, With Our of dynamic. the Kris outlook a and record performance

growth $XXX Skyworks revenue increasing revenue of supporting market million new our adoption widespread of revenue Liam. establishing increases Wi-Fi or points and up million. by when and $X XX% XXX resulting continuous or technologies as all-time mobile $XXX all support as cases was with learn well along play, basis record. strong audio reach. XE XX.X%. $X.XX income all-time Top-line $XXX of basis, share with largely revenue sequential OEMs last an results, our was adding of record increasing grew on QX adoption into gross our $XXX net in $X.XX. year-over-year smartphone incremental 'XX XX% and of basis Thanks driven broad the billion, income quarterly strong of revenue margin along with from effective Gross Broad by and more the beating use continuing the midpoint and all of sequentially, record year-over-year. XX.X%. year. of with profit XX tax and XX% ramping to such up quarter operating a first up of income, resulting work, of and business. both in benefiting are in brands exceeding solutions and set XX.X%, major operating a XG future execution revenue $XXX points content million, as investments phones worldwide. gross started of markets a from Mobile This a in translating year, expenses the $XXX diverse in customer operating model, Operating for driven anywhere, EPS operating last of revenue, by very drove the million, delivering XX% growth. as in compared momentum while a million than margin was on leverage Other QX $X.XX, record demonstrating was of X income sequentially, over XX% We to our guidance XX% QX strategic rate record guidance of of sequentially per grew were with doubled of reflects diluted generated and million, million of earnings fiscal margin XX%, our QX sequentially, Revenue $XXX smartphone margins year-over-year, net and solutions momentum million by grew

Turning to the flow. sheet balance cash and

of We was to price Capital million $XXX $XXX $XXX cash our were million First million $XXX average fiscal expenditures from per spent of operations at X.X million. flow million. common shares repurchase an share. $XX and in paid quarter stock approximately we dividends

strong returns. in as confidence release new Skyworks' allowing authorized Skyworks' reflects of has Board's new today, ability plan free our business stock separate repurchase Board in This leverage our and flow, repurchases to Additionally, generate $X stockholder management's noted us press to and share cash dividends buyback Directors model in higher produce issued consistently billion a to program.

to for QX XXXX. of Now, let's fiscal move outlook on our

the adoption use of for drive and protocols We strong and continued year-over-year rapid expect wireless Skyworks. multiple to growth cases expanding

revenue non-GAAP XXXX, to translates is with second $X.XXX growth $X.XX fiscal be billion XX%. per range between at projected This and midpoint earnings into to of the diluted in range. XX.X% the per midpoint be and of our non-GAAP to XX% revenue Specifically, share billion, revenue in of at year-over-year quarter of range, the $X.XXX of of margin Gross the share anticipate XX%. earnings the revenue growth year-over-year of diluted we

to and expenses the million roughly And $XXX $X other million. line, anticipate below be a million $XXX tax income rate operating expect We and of in we between XX%. approximately

XXX.X We approximately expect be I share with the call million count And shares. turn our to over Liam. to will that, diluted back

Skyworks from Tier started the our the to fiscal Thanks, thousands mobile clearly market of X Kris. with customers. breadth model, results, broad depth record and demonstrating business new of year

underway, Skyworks technology positioned of burgeoning wireless a With and investments engagements, uniquely underpinned the opportunities creating is scale, customer Importantly, use multiyear new lead. to transition is cases. by decades of now deep in set

cash open strong lines our us and our to consistent to and That stockholders. while win, high Finally, flexibility the of questions. profitability our levels generating remarks. prepared afford the concludes let's Operator, generation returns for invest

[Operator question of Instructions] & And Ackerman comes your from the first from Karl Company. Cowen line

XG for gentlemen. markets sustainability, terms you about increase perhaps will I across Hey. year, be profitability. revenue that outlook would and room year, multitude that you too, both as Good handsets to Wi-Fi your And your of X how as the afternoon, the really with design this outlook the a I ramps this appears qualitatively letting elephant know also strong, me what appreciate you. well the question. balance growth talk an guess, Thank ask thank of broad results of on could is a if We but in but see of for you given portfolio. in view

estimates that's the are And launch uptake maybe I complexity, we've you those think, if XXXX, in in Those it's XG. The Well, more all and continue be to and about listen a saying, into The than were of they'll and all XG. culmination going million, content XG again, about million phones. at it's and just there to going is absolutely. things. Skyworks And unit couple about if think XXX unit for clear. double of been together gains, early move. 'XX, numbers very a coming cycle Sure, beginning, XG, tremendous XXX you really with what to

subscribers almost the got are own the in low. planet, phone that billion very percentage and a XG very, X You've

in a mobile, So tremendous upside our with technology our there by team. execution there's great business in also and core advanced

one So, driver. big that's

market with. portfolio, been that's Nokia, like had entirely just names is cases, lot an able for we've in whether driver customers And here our cases XG. been Usage Honeywell, Wi-Fi, whether landscape whether Bosch, engage talked a XX% a applications year-over-year connectivity, call. of broad our the new that we broad like gains a broad second require The names that in portfolio. it's customers, names Bluetooth, then, market it's of usage We it's to with like up GE, new set about tremendous while bubbling

us, for direction All of moving right those they're are trends sustainable. and the in

much. I well-known evidence very now build it's component and appreciate Asia, pricing of that My follow-up, that could, see a question across Similarly, inventory the spoke Thank the other supply volume one discussions If how your there across baseband to they customers? remains these companies in channel. both do about of and the the a any for I day, not tightness you. dynamics commitments driving your chain. is, on how are of foundry

Sure, great question.

by way, I -- and the think job and of to say incredible period. that But, opportunity continue we'll team extend tightness into I right an I think, the this. And some that I And full QX in in the say operationally. supply the executing the about year. Skyworks the will would see you're did challenges one

have We the scale. unique capital investments made in and

our TC-SAW unit We customized have filtering. XX for factory own billion

bulk have in-house. wave acoustic We

own We are that capabilities and this purpose-built unique have packaging market. assembly and for test our and

built fortunately, in-house the bumps this were we've lot of So, some on factories. the And we the and challenges that because in certainly avoid starting in the through December the able landscape but execution of that connectivity real see a to technology But, been some supply there landscape, we're execute to to in our we're side able quarter. have throughout landscape, own chain the clear.

from question BMO. the Srivastava of next line And from Ambrish comes your

release a TI Thank Chris, I Hi. I I ADI second. earnings was thought with margin. for operating or and that reading fooled kind of Liam was a you.

But, solid, a maybe So, me guys. let around, minds, that's is at least elephant in pretty baby that's address our running which China.

talk Huawei. share about especially of been bots the there's take and lot a how they're to China, in complex in from trying overbuild So,

And could you some us And the us sense, you had can how a help was what's then, China business? Kris. for just maybe understand qualitatively, So, just on? then, going I big quantitatively, if give follow-up

of of accounts opportunity Vivo, great this forward well, Well, element, we There's lot cycle, and a year. one should make be continues. Skyworks, the base around looking it's to components supplier SkyX course. rings XG, throughout to and that's those integrate been as Sure. a we've to and a to our say in to for these the complexity that year. at a And key amount key is things that complexity customize for And it go Xiaomi the really and multiyear the again, to But here Oppo, that with ability ecosystem, we and XG tremendous results market. leverage we really grow easy and customer that that continue had customers of the configure like solutions their get help of it something and true

we there uptake space. So, strong in had some China the

looking as you see opportunity into we continue We our good. a there here that get new Obviously, to Year year. have New Chinese

there growth. we And good room the move to signs some position So, have go think more I think as just through there's I we year. good be going on today. there's of a to But, units,

growth the was Q-over-Q? China end in the What on

China So, accelerating growth, double-digit was business of accounts. growth, And than March, year-over-year growth very, year-over-year strongly up quarter of looking our double seasonal sequentially, into our December we in will on those the with stronger basis. have and course, course, very digits a

for quick on Kris, follow-up you are Okay. the And since you, a line.

through would the capital you. And Just us But mostly just walk kind on broad markets. the just see remind $X divi, be the buyback. I'm to Thank us priorities, allocation M&A of assuming M&A. and in buyback good billion

two-year place $X Yes. life had did We're a in our program changing cycle. We buyback a strategy that not there. have billion

came to that an so, end. And

so, And new that program. are $X buyback program we a with billion replacing

will billion the buyback we our return now back of to flow And of free cash new so, program. continue the a shareholders, program most our combination to and $X dividend

next line UBS. from question Your from comes of the Timothy Arcuri

get you guess, early Hi. good and your question visibility beat the guided pretty first November. so the just And biggest is, customers. in significant, Thanks. typically I from was you

Was the like beat? So, pull-in then, I drove you what guess drove Thanks. beat? customers? of it had big on from my first your the a double-click question is Can sort large sort of just what And follow-up. a I

and was not a broad a Yes. again, That's markets, certainly little period, Sure. was XX% the sure. Well, we execution mean, through I technology slow really quarter started amount a tremendous behind for a that pull-ins. it had year-over-year. record in accelerated mobile this it on of But the side.

comes within from launches right the Skyworks. So, it's with a culmination of impactful more that an we're putting that launches, we've years. strong extended XG that The scale technology then had reach make customers, now to most than content advanced and what of important those technology more forth in prior is significantly fabs, our own investments and happen. through own our R&D And in

customers GPS, opportunity. popped up But parallel have So, you mobile some the broad usage leveraging in had cases, emerged. that moved, had opportunity And strong very core then a of you new Wi-Fi as was that protocols, we well. things like before, the the a Bluetooth, connectivity technology market didn't all again,

are next quarters those I that we factors. mean, us customers was to more culmination it opportunity and But we as of to multiple So, look with sustainable. going couple are there. forward factors we've of those won years. through go stay the And a

Got it. I Kris, Okay. in in revenue give terms the then, your you largest And customer what us of quarter. was oftentimes, guess,

December, it was last in low-XXs. think, the I

even or that higher in imagine I probably that's So, December.

number? give So, can us you that

which indicated talked December total XG Yes. revenue. it that Revenue quarter that and that ago. first that with content a in great quarter launched of their rich was largest months inside, was Obviously, just about we XX customer X, customer large the with the approximately very we with phones, XX%

nice double But, some strong that region a indicated, their have there, digits do digits year-over-year December execution Liam was But basis. so some of very not large customer. sells In the strength customer. every products our large addition other to we other double we up all a good quarter with and have All and content, on have customers, as segments, in our and well. the customer that, other sequentially the just was again, as great large

with Kris. just follow-up And to Yes.

is their also note the I it customer new application. our to think, growth large is in accelerating with important that

just that of bring there other is all it to opportunities protocols is require market, So, about which that not the great. really a we lot connectivity smartphones,

Barclays. next Your Blayne from from comes of question Curtis the line

maybe for high my some have broad I and to outlook you numbers it Hey you results. it guys. help that March, do customer, be just Thanks mobile to be would taking down, but question. markets very outlook truly Curious market, And amazing guess, seasonality. obviously, your us bit expect Maybe just expect that a do large can between within little for typically, up? broad you March, should your -- with

absolutely. Yes. No,

March of be that normal as actually than Korean, as expect. which accelerates those seasonality you in well year-over-year of But, Chinese a the in So, the all it customer, guide well for seasonality. stronger lot thousands growth customer, will seasonality, look with as normal at a if our stronger than digits as And large the as the it provided growth the broad has can the is we customers. market revenue markets, up you double some with sequentially, further revenue outside large accounts, mobile revenue

access with you content assuming guess, you as the broad XE? ask point, it see without, points. I want Wi-Fi And for a also, Can I'm you'll then, some about well. Samsung see at talk has within launch On guess, then, to customer you I mobile And mobile another markets you. I Got XE, but phone driver that. play a just you'll Wi-Fi for

customers of lot I great very now. out seeing Yes. mean, wins we A design are roll key with Sure. now today quickly. that

mean, opportunity look acoustic even within rates demonstrably the are speed And the XE more at pop you data technology And those so, bulk a when there's wave Wi-Fi systems. there, product, powerful. Blayne, there's and I

You could whatever. calls in that see or your Zoom

Wi-Fi is Bluetooth, think to protocols and the So, And of all one really connectivity are and there, now about XE, the the work-from-anywhere with opportunity also are meaningful, customers. for driver think those for things X, but be a in Wi-Fi are Wi-Fi and gains work-at-home, an they Wi-Fi be Wi-Fi big about choice And XE us connectivity. us, as really is XG, can I can content product that's dynamic. Skyworks. be of X can with XE It's Connectivity continued for X. and additional adding that's with

of question Cassidy Rosenblatt. from comes from line the Your Kevin next

Thanks taking I'll add the And the questions. for quarter. my to on congratulations stunning

is any For manufacturing, your in own that there a outlook, is is you brought capacity inventory there constrained -- or constraints your -- is number? down,

No.

are good now, I point from in we capacity a think, shape view. right of

In fact, bit broaden we've think, and drive technologies the on I to own been more a little through our fabs. aperture execution able

be But, well, Team to there quarter We through some chain supply calendar for lessons momentum shape. through our in should very part, the December really executed we we metal most us very, I mean, December take the learned our had put execution. in very did here and year we navigate terms to hiccups the strong come can supply through that So, of that to outside good the and the were obviously, better XXXX. chains. position of in tested quarter well. still and

percentage And would And can time having? How Okay, those expect what just, the handsets move great. us you does with into line revenue? give increase of that for you Thanks. kind a C-band? C-band

question. No, a that's Yes. great

commenced. pretty what is it it which is And now much spectrum does, auction C-band new opens up great, mid-band. the as in So

of mid-band. a pre-auction. that will gig. gig of a very tied So, it for because X portfolio products great to up beneficial kind there had we of in mid-band really let's lot been X Skyworks have That be call opportunity There's

going wave great be low low-band well. kind ultra-high the cake is going unique an high-band if middle at product landscape, to with bottom, a top. millimeter in have the very the and of of going the narrowly mid-band high, you from to technologies We But mid approach, layer band as to here. and the like It's piece at XG then will piece to necessary be in C-band important

technology. So, that C-band will auction drive more

XG signals and we're delivering that add it to spectrum, to new require in will upgrades be that will able SkyX through platform content. We go on, ready will our be

line James. Caso the from Chris comes question Raymond of from next Your

to were a going guess, I just I what the had question would in your or little get quarter. September talked you than that constraints is digging of door the the we And be of your this into perhaps had the question some coming out in to you have differently, demand customers able if been quarter different it supply March from into expectations Was that this expected? was beat about guess, first And pushed more when quarter? guided again? supply the otherwise, content out into you just the from the maybe turned this back quarter more nature that better? either Was

Chris, really it a there's of each elements is -- Yes. of lot comment.

there an That here in accelerated. all, bit It little a December period, the demand kind that where tailed periods We've that way December. was and turn quarter slower signal started So accelerating decelerate. first happen. seeing That -- accelerated. didn't which launches had in of out other had in was we of didn't wheels really we the right was in And great a were quarter, off. started that quarter was Things the and great. December the the QX

focus it CapEx. at supply It's And And lot equipment. you to is bringing spending that on adding chain execution. and money did isn't new lanes on of been look our technology of to a new on obviously capital, what execution, And fortunately, the if just so, really put we've market. actually filings,

but in-house, of of supply Skyworks. largely chain a then, done So, couple most within of it had in-house. And don't make we execution, outside. was a hiccups We it's culmination everything

better in us highlight, was intensity already this things and up. much are great when we our other supply company facilities, as But Chris constraints, mobile was better further. position and And was our the mentioned, us some just as think that launch. the the the a really that bringing and lot we today learned there, puts names proud customer make a but the within ago, us period. delivering a but high being It really lessons the owning then, factories, will And key managing we efficient also I for own in company. learned So, technology a then The they in accounts executed a of be markets. are year off not of our the broad high-quality Skyworks they that, at that about future. some rattled really I Mobile and was customers were that will not really in I'm of

Thank you.

follow-up, what that with may revenue big as the think ramps a next the all into this year. about I As big And go growth, outsourcing, that some we can have on constraints margins supply we leaning and year? the happened you production know given been

the that more you very making the next you're these gross now, year? revenue to on margin into numbers margin and get With start leverage that will as to some grow we investments large allow go line

Yes. question. Chris, great

basis we than year-over-year that headwinds up XX.X% improvements all here, as there, margin, you very operational points just on chain see as trends there basis over some of course, and right? fact headwinds gross And mean, $X.X with margin overall are time, more delivering move, seasonal focus the XX also keep of some pleased our first operating focused and the growth gross points well. our and indicated, top will of driving time, abate delivered we focused we billion still I'm right? fact so, the here. the up in so, as mind, And on end to course, and it what that, pointed great revenue line by a execution gross out through out, But have as of supply tight team, add we as Liam high definitely margin I we environment. I above forward improvements as XX in improvements. maybe just And and on of was about COVID-XX to XXX guided, move we the are further margins we And Despite talked driving will sequentially, but we customers, all, profitability we points basis those

as the very there quarter. the operating December delivery the in margin of well, XX.X% so, with And pleased

Research. the from comes Edward question Equity next Charter Your from line Snyder of

if Thank in Congratulations. your boost you've you. customer, we terms shouldn't obviously, I But results, guys. you on comments of materially get runway Because of big and from things sustainability, Excellent you big at earning revenue lot call and results a your expect to kind largest on if you've today's back. why still last increase look model, But, coming a have your have the our mean, latest line got to content, year. customers, XX%. the by I of about ask, I'd to like That under content teardown, mean, something show own you a clearly, the Korean Chinese at yesterday, Kris, actually your possible. that. where better? be like seems been

growth very we the 'XX? a revenue suppliers, You've strong China? characterize one and maybe to for expect with the should can Thanks. So, domestic got maybe you what help Koreans

And to XG I you follow-up, elements have Kris. I'll that very to that and Ed, I if great the of And really, well know a question. you I take Sure. in mean, things question complexity come it. think the for appreciate one for I'll all you it the first key this there. the nuances throw together. need around Yes. technology. is And

It's our customer, the we've players, so also great China early. attachment So, with able MediaTek as largest got still of key Vivo, well. Xiaomi, gaining were forward to but we're Oppo, that with we course with in put

in we're great in is versus provide those the of got a mean Skyworks. XG. customers that When player. units Xiaomi, subscribers necessary technologies And an they is of double the XXXX, very you XXXX. it also the and there help at thing of them we globally, we Oppo, well to and probably where with ideal. at do You've years, them market, get It'll mobile work right? under-the-hood The customer be stitch highly billion together really units in in view. seeing about people couple which is talking well, in that couple phones in opportunity is you of perform share time and fast Vivo, XG for at X.X there's puts our could taking look If platform hundred XG line X a a our a we extremely look and are us well million I million SkyX We're unique. other make large that but We on integrated still the extremely in to support

this And So, it's early positives technologies. and for markets of us believe still consume automotive, that and other there, again, will then there's many others. XG, markets, we the is other a these inflection towards lot innings, a so sustainable. thematic cycle IoT, multiyear

think, it thesis for just comes a here. I good together long-term

my hits then that the X Huawei Chinese months issue. clearly kind years now. ago of XX what, it not ridiculous ago, it's on were people maybe the OEMs U.S. ban, which fighting replacing was -- on seems mean, guys So, component or the only, base, about and its follow-up case that suppliers I after

largest So, complexity play of other seeing content of in it is is you and That's already are providing, cetera. into with were more -- this -- almost these they Outside what now you really because the the Are at seen the much some being the is now group, lesser -- the Chinese and all seeing into they we've things. leader? point. competitive the that accruing is, to of in guess, all? less et else, quasi modules that anybody in extent, customers I mean, or kind I'm at trying to question reverse dynamic to is that designed current phones also Qorvo, discrete every of phones system solution the changing some the Wi-Fi don't you standard acquire all design, of and to point especially do is wireless the of XE porting elaborate much these Oahu, you some the that I

only Yes. game great to in prepared really it Ed, really, this it's amazing the It's in technology for but I for not remarks, have -- we're mean, for even a not in it’s to was I we that is stuff for And everybody. are And technology. consumer, wonderful. and everybody. companies going the those town. the are hard. consolidation. it's -- It's invest mean, it's the seeing win. ability not it's And scale

we job of done at China, build we perfect I and incredible we been has provide you developing But, scale, market think which coaching our flexibility and today. in-house, We in that area the architectures and we've strategically stuff for can when recipe. content. And can just a the advancing the can advantageous in is We provide that look provide them great a technology the in technology. bring us.

task. The bar And task. players is together. really, high you comes right a that now, difficult the it's all So, XG. technology difficult as said, in really a It's smaller

a it's a -- right? slogan, to So there. bar not not a it's It's high really, really get

can going So, do and that part be to fewer to successful, can I that. of it. be Those fewer are we think companies and want

Barrett comes question from the Your of next from line Harrison Arete Research.

to I about wave. just need ask millimeter

over the steps the what So, you have What years? towards investments? perspective, you capability? do next from adoption changing -- taken wave millimeter it's curve whether steps see of how couple And your partnerships or

is is a it It's of issues there's certainly, It bit issues. line has carriers It with launched. challenging power There's a sight there's it of -- been consumption and cost available still is and Yes. issues, certain a phones. technology certain great today. well, --

is expand, up it today interesting it's there the I'll of for immediate another that millimeter in back that, been tell wave. pervasive and opens In But could auction innings provide forth smartphone. the step spectrum is the allow path that C-band that millimeter up footprint become here new So, that haven't will more transmission just time, over lanes though XG. time, for and possible and you, early thing could wave

it's that line stream sight So, I things and application of large environments, certain But, environments, will in for great move stadiums, environments, technology. wave a continue a campus like would difficult on bit millimeter think broad more to perfect. be it's

applications. So, it's out the you're and that and going to at advancements build that certain we millimeter low-band, wave made, top as the see cake XG quite for possible are mid-band layer then

technologies our doing support there's the that play, we're to grow. I now action investments terms and what But sure at there lowest well wave to make opportunity do need millimeter Skyworks millimeter here we're all making And in customers. exposure. the close think is wave it can right of in for think as to we to I to introduction So, and probably

next years? Great. Thanks. Skyworks guys the couple at think a you how M&A to this follow-up, at markets further as of Are And about looking should space? bolster over we board

Great question. No. Yes.

organic love for challenging. been been dynamic. they've love we They've We incredibly that we all, play been the us. of But, outlook. rewarding our First markets our business. And have They've incredible. in been

opportunities and naturally. M&A what come about, as do we is with ideas so right, though work and we pursue opportunities customers, And

and pop opportunities to have we that do open ears continue up. front. So on eyes our The

cash tremendous a at Skyworks. have We machine

the heard we cash our the free data flow just cash and have. margin with You net that

ready So, we'll comes with take the be advantage. right together, to opportunity

question Gerra comes the Tristan from next Baird. of from Your line

gigahertz which BAW that as next bands think some added module of SAW years X.X point you're of think will the we ahead and the filter? over you transition? And being the -- more that opportunity, few how positioned from band, moves filters from see at -- to that you new the come In for C-band do

Yes.

think you if move and technology the great TC-SAW, acoustic So, in about forward, SAW ultra-high band here, standard we wave. have we as also transition bulk

So, along that spectrum, and that the more opportunities. frequency to ability more and we play capture have spectrum

and the of probably growth where to you're to about back technology. just were going bulk the have a delivery think most I ago. is we honest, ago, wave front we you a incremental couple of on if a look, don't years our of Skyworks said, talked bit we we Company scale -- our see but we don't little acoustic BAW, look And at years the couple

is units for of wave, high-band of millions that of bulk and technology hundreds spectrum. mid shipping purpose-built we're acoustic Now, and

that laid So, being is out.

the teardowns we're devices in set some see with go the seeing you'll are as shelves. of it phones the that we or in wave phones And in XXXX, embedded new acoustic to some technology out in today of XXXX. on that of bulk next the You're working now further our advancement

characterize follow-up, Okay, quick in mentioned China, for from -- Huawei? level some how a would you've inventory notably then, And basically in of the OEM grabs you share, at as battling great. market as taking the chain, are smartphone supply

Yes.

both is improving distribution still the as channel. But, the of been we at supply in and internally quarter. are extremely that, Keep level, the the now given record still of move March somewhat supply also inventory into in a all but mind a that In demand has chain fact, in we in although Skyworks, low unbalance, there that the channel low. is at

B. of And from Ellis comes the Securities. line from our final question Riley Craig

and seems Congratulations taking back to the quarter getting margins revenue business wanted see. ask, question. tremendous and I I in to the but the the it XX% to first time typically December in of big, this gross year, in really quarter. given Liam, on question to the the for Thanks strength quarters, wouldn't up strength and eight Yes. it in be ask nice the early March the

As gains, we year, in touched at the smartphone I we'd think, the and markets. in a content and doubling in on between half But, Kris builds you broad you quarter, look ahead builds. ongoing business second secular down half the XG think units dynamics the would be mention typically first and earlier both and the did pause that second the given calendar percent few seasonally, calendar just

the takes strength how the And so, part, then, year, the we just the we is, seeing and in flatter? the starting we we're reason year? that as the half about are would of for whatever linearity we so would second And start type are typical of expect thinking see can look given or in gives seasonality year, to to you robustly the of still question middle just be towards the the expect

of questions Yes. Craig. That's a set here, great

to again, what I We're is, seeing of the out portfolio. our with innings. thrilled see great we're right think, XG adoption now gate that early

And that really to amount area talked customer Wi-Fi Bluetooth, with not a in platforms broad in can got We for of now. right then lot got scaling revenue or are market even about lot and our a that's a GPS derived noncellular see. we're just prolific opportunities incredible, and non-phone these be to parallel, we've in devices there's largest do. -- us So, X, that the are we've new devices

do And that's So, that's the -- to continuing just it's really captured, people broad market make And year-over-year, grow again, compelling technology much so and very business we then, that to haven't and continue advance. we're just to continue that. that XX% it's those mobile investments there a to incredible is very, in -- to in And numbers. markets, share well. will

relative content see there now position in as to I still variably to a higher is see lower a China we content got at We've that inflect markets. look going the other new basis chase you If opportunities where we we market, continue the is is it and think on win. that than

haven't move. customers cases, So, there's to the expansion it's of And seen. and a great we use then, opportunity cases use so that just

Some through pandemic, time. a came that the difficult of period of

Wi-Fi, were that XX% broad going also creating incredibly kind I'm stuff mean to away. of But of is some here momentum. typically to think go a going not that about Peloton, payments, I all whether touchless And going It's away. store-to-door it's the of your it's it's about whether house, that excited by It's emerge. is to the period connectivity. about and a parallel Zoom, of it's be you to to we that building And mobile. unique Again, XG, going powered technologies just you was there's Bluetooth, so this go delivery by offer. not think that in connected number time whether all things market market about be

demonstrating the run we're but use So, many still create ability cores in factories. diversification, really that common our through to cases, technology

That's businesses by this two really year, annualizing think billion those at billion be $X could that each. late helpful. It's to pretty $X.X and amazing

share buyback. for is the Kris, really on follow-up and you my So,

billion? now buyback. dictated So say, to that see billion $X buyback, versus, remaining question on $X billion authorization? was can you The $X.X amount with or why what the $X the the With the new $XXX nice million $X existing us billion on to billion is it or even color $X.X billion just was the this. some right give And

It's expired very It's time two program the The Yes. simple. $X years. prior on a for authorization. billion

and that in So, previous January expires in was place XXXX plan January put XXXX. in

two next covering years. in the $X a program new are we so, billion place putting And

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

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

thank conference that gentlemen, and participation. for call. your you We Ladies conclude does today's