Skyworks Solutions (SWKS) 30 Jul 212021 Q3 Earnings call transcript

Good afternoon, and welcome to Skyworks Solutions Third 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.

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

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

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

delivered and in per with welcome of results while record our Silicon Automotive everyone. quarter Mitch, business the Further, growth. Labs, the share. revenue Thanks, both acquisition Infrastructure completion of and top have market expanded Skywalks opportunity and line our of third accelerating significantly our growth bottom and we year-over-year strong earnings

of of revenue EPS few quarterly $X.XX, the a for increase a above And to posted dividend. a highlights. generation, substantial of and our Here XX%. are we last We given predictable with cash our billion, quarter, consensus of a we In XX% delivered $X.XXX year. QX strong record increase announced year-over-year above new earnings and representing QX

the gains with our execute we customers, of Looking wins XG. mobile design levered momentum ahead, market we as continued strong expect and performance broad by on

intelligent of The solutions, expanded our strong unique launches developed as transforming renewable carbon SkyX point drove are its we innovative years management. over across across including reach XX the execution. and telemedicine customer upcoming we Google, center seeing portfolio, connectivity, others. mobile, is energy also of another manufacturers, applications energy. Skyworks with technological industries multiple on and lowering and By among this driving technology to transitions. powering manufacturing IoT, and our XG We at Tier wins and from reach In tipping factory combination solutions scale efficiency, In quarter the of diverse a design reliance a unrivaled XG-enabled innovative of wireless Vivo, increasing the win secured customers. at automation broad catalyst set these acting and autonomous Oppo, X Xiaomi, of footprints entire shift are driving with smartphone

we XE Wi-Fi launch, Facebook Altice, at Specifically, wins delivered design and their portal mesh and Linksys for platforms on system, network their home Wi-Fi at applications. ramped Wi-Fi front-end additional to Peloton Communications Aruba fitness advanced modules supporting new Networks. with Charter Partnered captured newest

and OEMs. manufacturing finally, end further advantages to across And also footprint launched in performance we MIMO by for revenue technologies, we diligent product ultra-fast home cell global These connections, customers to collaborative integrated home the arsenide platforms And for a custom and security strengths, Tier our Samsung at will underpinned success educate, for finally, portfolio, relationships our role our advanced maintain infrastructure, customers. is and markets. play to small pivotal continued differentiated manufacturers. including over turn and applications With by broadens workforce, our diverse technologies powering that, our call I&A increasingly enhancing advanced engine, connected multiple of for discussion and auto wireless we their filters Skyworks In and integrated the A gallium Skyworks in of profitability. shipped and augments our a summary, seasoned from the across expertise solutions with reliable, packaging. ubiquitous, an enabling X growth ecosystem, audio combination for diversifying automotive, unique growth. enabling our multiple and business. connectivity our strategic of telematics market immediately support with systems. strengthen highly We In leading QX levering I This the and deep cognitive array trusted high our expands along high theater in acquisition way our will while and advanced outlook Honeywell Vizio enhanced we to leverage position essential in reach, continue QX. work, the our solutions be positioning live, engineering business Kris of play prowess and with

points on to discipline business another profit Thanks, XX.X%, and record in we XXX quarter our margin billion, strong million, investments from last Gross strong over expense with million Labs. revenue, exceptional of an generated translating income, use was results, In our X XX% X of and across smart the capitalized grew the IoT both XXX Wi-Fi Other quarter of recently and exceeding and Liam. and mobile guidance. of We of into as Mobile revenue while was XX as as year-over-year, improvement Total including powering growth. technology-rich interest the revenue expense partial acquisition QX million well Silicon a of a year. content, quarter XX.X% year-over-year, X.XXX an of midpoint markets. revenue markets XXX basis XX% associated completed a drive benefiting impactful for reflecting emerging of demand spending in was continuing industrial demonstrating XXX Infrastructure year-over-year. demonstrating financial markets. XG broad strategic points audio, Automotive operating in QX margin Operating automotive gross expenses of delivering posted of parallel, resulting grew revenue year-over-year, Skyworks of XX.X%, or operating set the XX% million, basis up performance solutions, customers. cases XE, were of broad

line million gross expanding of XX% margins, and and share fiscal increase per or the beating XXXX. net earnings an a top of Execution net effective compared margin XX.X%, QX income and rate $X.XX while XXX resulting operating was QX income XX.X%. of diluted drove guidance of to Our $X.XX, tax by growth, bottom record when of in on

Turning to and flow. balance sheet the cash

Third from expenditures we and in million, was in were operations XX million, with quarter cash capital billion with X.X We X million XXX cash and the net ended X.X position dividends. fiscal paid billion, debt. billion flow XXX in of quarter investments and a cash

continued continued outlook now from of and robust the quarter. XXXX. of into September the to the revenue Based in for inclusion partial Moving expect our completed acquisition, and demand broad quarter on mobile QX recently solutions connectivity of a for fiscal markets, growth we

the in reflecting and is expenses broad to And million line, revenue, fourth midpoint revenue financing. Gross of double roughly of billion XX other between million revenue of to projected growth be of compared the represents billion the expense, our XXX anticipate range. the quarter This we range the XX% the in be earnings we XXXX. expect of fourth fiscal million. earnings both non-GAAP at fiscal margin XX% the quarter per share with mobile X.XX and diluted Exclusive XXXX, in digit we with operating be expect acquisition of between growth XXX growth share XX% of we revenue Below anticipate $X.XX expense to markets. of Specifically, non-GAAP diluted associated sequential per interest to to X.XX and in XX.X%. and acquisition-related

our a strategic turn XX.X% the to we rate of And a count We increase I'll our shares. Skyworks announced XX% cash conviction to per to of And expect XXX.X approximately lastly, that, back today a share and predictable million tax $X.XX and also quarterly Liam. share. strong diluted with over given approximately call in outlook generation, dividend

Kris. record results for Skyworks on to track Thanks, financial clearly is XXXX. fiscal deliver

strategic segments. of of our usage of And with expansion As significant further momentum the XG into for the is mentioned, cases, growth array a business the addition Skyworks. driving proliferation propels I&A widening

robust scale, generation And for the our while and Our sheet win pipeline. reach global of returns. strength design a our to powerful consistent shareholder Operator, invest open cash questions. That to are allows remarks. delivering let's win, balance line fueling the operational prepared the us finally, capabilities, flexibility concludes technology-centric

constraints, given question one yourself And Instructions]. to limit [Operator you. up. follow please Thank time and one

Ellis open. line Our first line from question Riley from Sir, of is Craig your B. comes the Securities.

fiscal a guys. in the and contribution quarter. you earnings deal? Yes, you you the just from a bit the I little from I more thanks see could and standpoint finer revenue if specific question fourth for from A&I financial the wanted Kris, with Can get start congratulations to results, the on point the expect to taking on be put what a you contribution and on

Craig. Yes,

told on excited diversified, July So It's that about the line line And if we for the on so so you high growth it's an specific But a and this But all, any earlier we streams we of acquisition of closing revenue quarterly business, on basis, not conclusion at is the approximately very are first of asked, new we quarter. deal you and going running. report great or full us. very given that basis partial quarter. a only product are within business to week. markets XX, a of quarter. when business on $XXX this announced revenue $XXX The revenue million approximately annualized the million was a

of So months in three only out this get quarter. we two September

three out get will quarter. the December three in months We of

answers question. that your hope I So

you hoping and synergy Silicon rate business that which it with the now from your base time a for vision I'll strategic stick to flip but the over that grew spend do more customers, about a I'm then Kris markets means That Liam. you in about, end think for make talked Under different a channels, steadily with can And just it and it. a business. quality is $XXX high what just million Labs, two roadmaps, you this a have product very was with talking the business a could And helps. you of do on minute growth I'll with you A&I, from longer question, basis term, what multiyear that standpoint that and

about the what great end really this people, we is this first Yes, is all, taking as do acquisition; in mobile. other important And really fabulous Well, excited uncorrelated great technology, mentioned, Kris thing on absolutely. we to all of are markets.

really this So unique us. for is

at that of on has things, Craig, brought the our we at scale level. the Silicon technology to Skyworks One that team Labs of the will capitalize the is absolutely ability high and quality

are further do be that some them that. take fuel to definitely today. our lot behind right we strategic to a operational look our we'll our see great, put going own now, than at is very And fun the newer to now So opportunities, products in proliferate think ability is what work these them fabs, Skyworks, broader which team, of as doing it. scale can we and folks And at customers, it's and bring we we much

margin, improves we and markets, So we're lot end to find excited can versification. these we're customers take a about There's accounts know very that some new we some together. that improves well great of that going products, there's

about excited So the very excited opportunity. what we we're It's can about we're but very do. early, really

Got it. good Thanks, and luck. guys,

Thanks.

Thank you.

line the next Our from Ambrish comes BMO. line Srivastava is question open. from Sir, of your

calendar Liam on shortages customers. is can I talked follow Kris, that in makes, And quarter quarter. Hi. than then so please. you can up your seeing the your comment perspective, quick Thank we're public third much. supposed and a getting very them. comment Apple had know business are third this in about your the impact worse From third a you I In the name case But -- name they quarter? you shortages? not to I

a around general supply there on Well, is Sure. crunch basis, chain semiconductors. a

we everybody the all of our some right, and I technologies technology that. an the lion's in-house, here, of we if TC-SAW, that our that all filtering, house. technologies fabs we know in really degree. from I and Arsenide investor affecting would Skyworks, have Gallium have wave the And we’re in assembly a say portfolios company our way to the share that complex and own bulk test we bring acoustic in own it's and think to understand you lot

that the fortify that investments we've in over and chain. position benefit of scale So we the the a have years supply made our --

know all all pie, components infrastructure it's we or to of any a Now the a platform, the for having whether a create solution piece said to come as given that that, smartphone customer. together have the

anywhere in it short So demand, impede execution is if around demand. chain, can food right, the anything

doing feel job been clear teams there's a that So, seeing our are that I that. good opportunity we now, hasn't demand but more through, are certainly it's navigating executed. really like

there the to going clear end bit certainly work be technology. support we're do now to driving I demand customers. is in it's right an So But our chain. on in efficient our our We're in the think more doing labs and work fabs, a supply that our there in to little globally impediment

is So issue. real a that

in you I my And did can quarter. the Thank Kris, do remember a Maybe you. to supply headwinds a it fly. if any math to I address impact gross because chain Is question capability, you December just seem it. correctly, getting -- had margin. delta, level set your on And Got are that. this there seen trying delta Silicon I'm on from from Labs the while. the contribution not from and This the cost in is be we business, getting coming the it and better. haven't the

the So please? can Thank us you margin delta in you. through gross just walk

guided We XX gross to in Yes. gross Well, basis on first I'm June just organic. year-over-year pleased that's We of XX.X. did XX.X% margin. points and with all, our up quarter, execution XX margin the pure

or year-over-year points points basis up that's sequentially, XX basis. another So XX a up on basis

gross indicated we as make organic helping product But business as our of performance or margins on our complexity, in XX% about margin. in further see technology our is on Wi-Fi higher mix. business more improvements I&A in and at to XG, XE, that roadmaps, higher because more we as you Wi-Fi before, level there we clearly gross the X, running As can continue get that's execute parts well well,

Thank you.

Thank you.

question Ackerman open. line your Karl from next from Sir, comes line Cowen. is of Our the

broader able you your areas quarters? now allow broad have Thank know that drive to have that first that question, I any focus the the Great. you closed just cost process, will closed. you much. days And describe over But guess to acquisition few you next that wanted could markets ago. you customers? find for a on that indications I just it during of much you set synergies been may synergies overlap the to as diligence SLAB closed that address actually of on division couple due incremental also I&A very has a early in division, solution I sale

Yes, absolutely.

clearly, for So ability that equation the already some definitely have up with just Silicon know is sure. brought billion cost and we have and so revenue it. that a the of there's can strategic and Labs side, some of side, on the great Labs rate we the piece company to $X on And those we're And that Skyworks portfolios big as customer we knowhow at technology deal ready take to the go right we in-house infrastructure is run the the the now take where team that a products us lever also have are team volume Silicon that to player a to Skyworks. then

So absolutely to are go big ready game. after we

and scale to the technology for happen. it, appetite the have that we we have it, for We knowhow prowess the have make

of an markets. lot SLAB a can known be of we part diligence important on forward. I&A there spent went as we we of technologies to go plan to it a going lot as this make And time the and to So really there's that those we for through are team good be in process. are here. scale the that game with have happen. strategic on us known it vectors that's customers working And And we've going both And

appreciate I that, Liam.

peer of other week. indicated production did the follow my an be but one is organic September sequentially up, your of really basis For to slowdown this that with looks constraints. who par That for supply outlook in peers on reported on RF results, more of just and even results your Android an due to was some you up to impact and XX% And you here? I address quarter. you of areas would the test could that question earlier maybe you. or some improvements whether My I from September to allow could constraint in hoping propel in dovetailing assembly strong see Thank that question guess improve today,

what Sure. that and No, that's makes total seeing. sense we're

two don't takes an for to devices impediment have So one of deal our we most supply only because But make or our a demand. control you chain, create have it part, assets. in we that the of great

issue of We're where working And that can global clearly certainly It's some it's now. of don't think a in a this levels work the end. levering I partners way But semiconductor -- our may partners problem. on demand are our constraints. is We're the through to there's going and that have. being with supply side outside long-term to So our be it we problem that is terms kind chain right what we its making of a cycle. really due delayed good execution doing on

Some companies supply issues. than with free space, unique lot kind is think demand some now degree to Again, is get is that done have worse a it a being semiconductor of impeded case just demand But strengths chain it some that in the there have that flow not with again. our certainly opportunity being we of may is I capabilities, have. the to others work where others. But issue And of global a demand internal there.

make want to I that clear. So

that demand the technologies come here to to our still appetite we coming rich powerful. I opportunity think all customers products and is the have I are soon. the and And to market for strong. that market are think The going that's very from

you. Thank

Thank you.

Arcuri from UBS. comes line question is your from next of line open. Sir, Our Timothy the

this question kind is like tough out, strip up teens. if of addition to into SLAB you of the December you probably lot. look a just is answer seems that given to revenue, normally the a wondering Thanks but it were Kris, December, as low like I'm

is and things sort you look December? you if if SLAB, can December of wondering how see out into into I'm trending So you that excluded

Yes.

the about that, provided quarter phone quarter. September. you do XG We rich, December as into on we said continue that And further into absolutely organically guide content a Having grow as we only see for looking we you're business typically at good high right. execute broad to guide markets really ramps. further strong December, December feel some one know, And to quarter Tim, So, sequential time. our expect growth that the we we to

And three the December quarter. so addition, the months we -- in before, have mentioned I plus of will I&A business as in

so about And that all when December. good we you together, put feel really

that Thanks And Was I it quarter -- somewhere range, your that. sort Kris. guess, typically, gives the XX% largest in Thanks. concentration for came same to in the XX%? typically it XX% a your range. Thanks, of sense of just June customer where And in. I or from XX% that in us is

Yes.

XX%, same slightly it year So the was a in which XXXX. by June, way above in the was ago exactly quarter the percentage June of

Kris. you, it. appreciate I Thank

you. Thank

Our next line line question comes open. of the from Charter your Snyder is Ed Equity. of Sir,

SLAB you’ve Thanks a a look done. that think But is great very I this, something if than it's lot. else Liam, acquisition. I different at

primarily I think best -- too But had the was couldn't a best best one you're because the screamer, of of they them back ever the SiGe was by largest coveted you in the from did, and one buy customers, but probably customer, technology industries largest XXXX. because of your in small. some the was was excellent they that your

a you chance not in most you'd probably be that because revenue give in of can grow plan us races they've the markets, to imagine can close to going growth you little I of going role. Thanks. to excellent what that And customer that broad and you the out you this profile growing to in of great more help so acquisitions anything ways go technologies that plug-and-play got got your some National could? customers, with terms hold sure. it's it be into flesh examples like line where there's know went, see where be off saw diversification on margins. go into that So see you I'm SiGe, base? maybe little can lot and But a going not it's I'm I your you right? So this of clear. of growth of us to Skyworks specifically, on is the know bit mobile could like, it. and rate more it, you huge a a kind looks you're when to I success if This been it's TI

Ed. Sure,

So, business into strong we business. all timing customers customers take have obviously, can dives the we the the multiple through I&A is They now. had here bit and that's unlock. deep can can we that of Their process, strong. and lot very there. the portfolio outstanding. a that a an we very right They portfolio, elements which have There's have we customer synergy automotive of There's sales isolation do a quite

their portfolio’s but things broad very something very, the players. And the I technically, terms that's scale, we after here. right, hadn't very been very of is that large One in would as of say well strong going do is,

We're So the we're up going enhance going going to lever the invest this in to portfolio. We're to technology. scale.

people, us. engagements is their we channel, benefits, think great the unique. going I great, doing manufacturing we're it's Some folks think early for then there, special right. customers be deal and sales really end we here to with pursue. that innings the great a going what And we're the to be our seeing some markets can what with And And and

For there's And most outsourced. a think even has synergy in we and of some the I&A operations, great test that part, been there's fabless assembly use can if the our elements. deal I business

well. strategic having in-house a packaging, test and assembly Just advantage the is as

through through transaction. of go look go it about a fit the deal to at excited we demonstrating with great a move we opportunity working it. before we more. spent done We're we're it forward. process, that very Skyworks. this forward conservative to really an acquisition. lot about has And And as like And it as of And we time So deals And transactions those one we and this we and of more is that that. liked now really here haven't we

shift if and your I largest field then the complexity the perhaps. mobile [indiscernible]. customer I mean and And leads to Great. could sophistication

that. knows everybody think I

especially looks year and that was they direction. rest We to that like last of But Skyworks’ this regard in world, obviously. moving lag strength, terms look of implemented of last China, they year in [indiscernible] year, of to they're it in And some phenomenal. the the implement to and things saw quarter the the December

[indiscernible] step those But you over years, if Now over maybe I'm does as is move [ph] Vox several kind last into the present in to of group, back that under Skyworks technologies Android earned larger wondering, should China the earned growth in you'll that you exploit see we share? to the able gain for in be think OEMs [indiscernible] Skyworks opportunity? next acceleration Chinese So year? to a expect Do more domestically.

Oppo, great bump prepared hard. MediaTek working a very And we're technology And content delta bring that be brought last comment. I'm there in Vivo, flagship now move you up. We up domestic are along We it they And lever great mentioned Xiaomi, XG. we're can the is, that's the calendar opportunity their the And substantial. very seeing the to with we're for that largely see our remarks. went that's great great do a Yes, players players. and engaged. incremental answer And U.S. year through with glad in it there. And the we a Skyworks. success. We'll opportunity. to as And continue starting with models, strategic

So players. this have a seeing technology we already We're what devices. supplier these key It’s case their relationship. isn't a exactly form the we anticipated. in and But within we're a lift to to break

the expect that should corner from world. we more of So

Next question?

you. Thank

next Wells open. Fargo line question your the of Mobley from Our comes is from Sir, Gary line Securities.

taking for my guys. question. Hi, Thanks

with has was I’m of inning business influential how forward? a Huawei it the about and and wondering more to quarters, being guys get on perspective how hoping redistribution dying you redistributed to competitors recent of RF in on opened may roughly essentially largely -- been talking customers. because what Skyworks has opportunity has in of $XX your benefited certain respect be that we of billion that amongst available side share, One impact may up vine looking market on I that that your

That's Yes. an interesting question.

years. As and engaged for just relationships we're all mentioned China We across deeply with have platforms, we in the there. the formed good we caller, last those

been So we've trusted a always partner.

that a have We customers knowhow custom quickly step market solution our create portfolio allows in SkyX to with engines with our we've that architected. the end to

that we well demand So as anyone. see opportunity as

We more have those portfolio markets a well. can as that diverse address

and customer We our can can crack needs. the portfolio can not SkyX We what it's into reach solution. So We customize it. a exactly single it. do

so to we look forward And growth. that

So move we upside opportunity, see can and as into that XG us be accelerate. see China it we for same

Okay.

stance you up, go band sort to perhaps flagship was millimeter is need speak, maybe interfaces. follow on a growth to can cycles it what at your in growth to relates wave to generation. broad give detail I phone so sort related one my For there. want think a with related I In air other your as the next term but you. in bands, cycle, little frequency that, market support can Thank lead won't customer, to more words, wave? we to frequency current the as be respect see you What these particular then long things within more of content will of ask you do content move XG you support that from But as us the phones about millimeter like And I hoping to support. needed

to you've the as seen, continue frequency Well, opportunities Sure. expand.

example, opened up that amount at immediately. tremendous for option, we where can technology, of gig X to the you If X C-band a capitalize look

we China, see -- in complex we go the whether level, challenging, that appetite is The it's and it's high year more really if technology think gets in with every whether in the strong, I see opportunity the for that, on appetite be we excellence company we And rewarded products. U.S., on that that on we focus focuses customers. high love a and mobile the focus this right? technology we're more end, our technology, our because we

technology and nodes, a of the whether end U.S., it's of hit play, all whether the can China So high with we grown along those it. it's we've the

the we an interesting mentioned, anything that some you complexity And work drawbacks need to the areas. technology. There's wave customers is as market. and end that how in engagement have our to well Huawei market It news or millimeter on around work all that about Millimeter has like are we is All the players that's with and go certain solution. new that. the with. wave resolve together, nothing well works great known. understood. we completely We stuff we to listen So It

spectrum. need to So, know entire to have across investments we win. do what that We we

what do to that's know to been customers we And also We the that's need recipe to allow our working. win.

you. Thank

of is comes Sir, next open. line your line from question Curtis Our Blayne from Barclays. the

Thanks just for the revisit guide. question. taking my want September to I

on I when over sequentially. little you basis, So it guess million at $XXX it's a look organic an

would launch some more. If kind And your year, earlier amount. lead customer look it that contributed you and the last with be back content of think you’d gains,

understand, that to are know it's be understand my acquisition, with to are you moving just mind. some some the but pieces sequential, I down? there more looking from conservatism? the a should at great trying in Are bit a just trying So segments Just adding

So I'm trying missing? figure out just to what

Blayne, on indicated, And our markets we see think organically as really design done I and executed in both we the business. growth sequential have into double September, digit we side. well mobile well and broad win

couple will here or higher and so. forms next in launched have We months OEMs content that in the are of launching, that at all multiple be

bit so sometimes place. a a And little of unit it becomes

some account, parts XXX parts phone. somebody a demand XX, only are for they conservative you assumptions. there, As which parts, are as strong you unit missing phone. else, know, are the issues the a can’t There our Liam If to do but is expressed, need from and some the we other of right, make we make global Skyworks there products. including We in earlier supply somewhat take into always definitely are

quarter. growth account. being that's continue taken the the December into So will Again, all into

combined, year, And how second think see growth. so look in September will December I execute will year-over-year you nice really when the the you some strong half we calendar of at and

I can contribution, to but maybe talk you markets. And finer the just want basis don't I drilling September? organic guess on break Got broad point you. about be would a on out it know into maybe an you up

Yes, that's exactly the point.

digits. markets be it's business. broad basis, contributions look a sequentially, digit our business from on you will up And when So double any up I&A the year-over-year double excluding strong

We in XX% continue call year-over-year that, about to or it, on growth. be

Thank appreciate I you. it.

you. Thank

is line comes Raymond open. question from your of Sir, next Caso Our the of James. line Chris

you. Yes. Thank

X Wi-Fi segments there's those the expect strong of a business from that's continue? from should that of some It I is broad ramp been Wi-Fi work on you we've the I'm big heard Wi-Fi is I is ramp. that the benefited on that to been gives guess guess has the on that and markets, to trend long Wi-Fi part X size if subside, home. of I continue? home it the and trends markets that been work X if how also -- Wi-Fi strength, whether on particular X question has know First broad on the I for that question or segments and that's allows one enough refresh guess But do even from not has enterprise also sure to happen, an of organic Wi-Fi

we're stuff is some parallel We're really cycle Wi-Fi almost to enterprise. complex high the consumer grow. continues seeing into Chris, Yes, complexity way to seeing to in from XG. what in It XE, moving

good really have this area. technologies in We

player ubiquitous It's customers. our kind of in terms with relationships a great of have We connectivity.

strong for driver been a in to devices up. us complexity continues the go the it's and So

really incredible at terms also are look significantly have opportunities enhances when access have business. data But the that then rates. of seeing we up that routers in Wi-Fi the and really We it. scaling we point we're the good performance in today

just continuing it's I work that's to so don't move. And from think really a home.

become technology. to see a that of starting must-have we're really type think I

the on The infrastructure in play industrial a business. We Kris XX% doing And area. year-over-year in stepping names as in you're been got about talking Other broad Ericsson that's up a areas markets and that space. We're mentioned, continue wireless Nokia us. infrastructure like grow. are So side the bit. Honeywell customers really good with to for work like

grow, great and with unique tag to diverse to partner continues portfolio. I&A a also It it a is very So our portfolio.

I think that process So as we're to cross be going selling able some to engagement through and well. customer new bring

look So Wi-Fi beginning to is really said -- and as well the we strategic very you forward the at positioned. we're

Okay.

a As that running margins, that you've headwind the reports as efficiently some of you've of the follow a particularly some quite costs up a therefore that? come from that could you're be to to have some the the haven't and facilities see been We've production timeframe that you these some subcontractors that the had that your been as some of been What out costs would again. margins? seen of COVID wanted. for costs with of of some absorbing have a is still What's Asia take positive shutdowns there headwind And Southeast that view in seeing gross costs? these some

Yes. still a there headwinds. Chris, basis headwind to of And there COVID-XX going The well more costs executed the think couple gross honestly so on points year-over-year, a they're quarters. again we margin stay that there. couple XX.X%, are I fact with are XX up for still despite

better at hard. We’re still working those But it. headwinds there. We're are it getting

a addition to as we earlier, In discussed it's supply tight that, very environment.

of that's are doing of than again, gross year, helps up $X.X that, lot But billion Last will so, year, not we of we billion, of revenue. further really our helping revenue. margins. course, scale despite improving billion as $X that, we $X.X business. A did the be And more we This us.

higher those before, to And able the of So technology I&A more XE. ladder, in you higher and keep we margin. the X performance, mitigate on And addition, right, Wi-Fi more headwinds. business we at are said some complexity, have as then XG, higher climbing I

improvements all you and start margin combine headwinds that, model of those make see turning some will will tailwinds, Once of improvements. will our you we gross of become further further XX%. towards target continue So

you. Thank

Thank you.

line Our line next of from Sir, Goldman comes is Sachs. question Hari the of your Toshiya open.

the got a nicely well. two so one much really as first markets. June basis. I've it question. the is you broad on quarter, on taking grew Thank In for Hi. year-over-year My

which below was I think think had bit was down guided what you little you XX, about said sequential On XX%. guys to. I a basis, it a

puts and there So the that double the September. the digits of with on flipside, just you're then takes? business what obviously And curious in delta guiding up was some

can you if helpful? the So be kind super of speak broad that in September within would to drivers markets,

Yes.

of June. up year-over-year in markets broad all, XX% in we went First

below Maybe it So say was execution. anticipated. slightly I would what we great

a to the And we stronger out, but had demand some is because lot Liam supply be pointed some minor bumps. that, there honest, we is of weren't as supplying. And

year-over-year part end of those strong it. digits, so to growth And to across sequentially double see into continue strong all September, up markets. very growth continue we that's see guiding Again,

quick wanted ask on to closing I about Got a Congrats up, it. forward. as usage cash follow then SLAB. going And

well. You talked about raising as the dividend

clear. pretty and balance CapEx the we balance perhaps sheet buybacks, about and that's how the going So should think deleveraging Between forward? you. Thank

Yes.

cash Skyworks with terms and key That activities. research would doing. and to of In innovation all, we and usage cash of is first and allocation, technology continue to development cash will is what our invest in I say,

Secondly, expand in and will expand we Arsenide, to CapEx also our will continue to free continue assets substantial flow. cash that, will to assets. continue packaging, deliver and further of contribute manufacturing reach our further manufacturing our in of filter, advanced Despite all we Gallium to so we expand amounts strong

for a there. target further that XX% XX%. flow there first target. increase have announced flow cash $X.XX, dividend. at the free improvement room of pay used is will And free to of all continue just We and make now improvements dividend towards cash we the further We'll in to And a be

focus will debt. Secondly, on the we repaying

including on debt the loan. of billion of billion X.X have We X term as today, sheet balance

that, program, for time, share a can, temporarily focus focus We do authorized we back buyback have at as that on that point loan. loan. term switch But We repaying that course, have on we suspended repaying are in on. we term to but now going of certain an

Thank for you the details.

Thank you.

your from of Baird. line open. Our Gerra the next of Tristan Sir, question line comes is

bit generation XG about a just year-over-year. phone to I next first question in gen in XG XX% the wanted a the was That afternoon. RF Good probably content prior Hi. phones. little increase on expand in range

down C-band content? digit drive of But we even then mentioned to in the terms is should year? things high-single be China. look that continue how gen like Wouldn't maybe year-over-year in And phones follow-up this question at to in You increases. going content that's to second XG the increase

You did rate is there for China. adoption phones almost But opportunities XX%. XG in mention the

are that first or are XG gain rate use generation, the up second China So RF to already? is than market content gen the you phones more share, there much adoption clearly to expecting going because is it the in

Sure.

Well, is all, I there's Let of and me what in China. first that try of question here. tiers say unpack would XG

certain you level higher phone has a all through a could complexity XG And have of can have But of that complexity. and that has nodes. those you scale much we XG another So phone performance.

We need Asia. move. the a from we the So China see the Europe to There's XG U.S. still know high. click may performance that market. And end-to-end be we market really tremendous another amount relatively in phones penetration to that, in of still from because see to entire the

China. And opportunity so of gains from position current content in there's a the for lot

good that's the these higher at performing. in-house assembly we're for a features And look solutions gives seeing smartphones you technology more that's seeing TC-SAW, XG. way us. If It burden from and [indiscernible]. the to markets, push with us our all put the We're other applications wave, higher in in stuff same for packaging bulk opportunity all and come test, on or acoustic

about it. really we're So excited

more do continuous we more things. but not It's content, see harder. It's continuous complex getting growth and is growth the So in things. content

make And we so what for you customers need That's to easier to bring and it have do. an together architect that our this assimilate. can

device And complexity puts us The the it it's is that year, us every the and customer. just very, for it limits to very position delight not phone phone. is great technology, So within a the competition, good. to in And the rising.

is there's look from lot we that. that level high move So room yet very XG upgrades forward low here. a now. And There's commenced. still And to of overall, right lot at of penetration a a haven't to

like So to the bar execute. and opportunities stagnant. get just forward to we're looking continues higher tougher players few for and technology Skyworks But It it. a not is to tougher,

Great. Thank you.

Thank you.

open. your Rosenblatt from Securities. Our of last question is Sir, line comes Kevin Cassidy

for my Thanks you. Thank taking question.

fourth a calendar quarter understand quarter that you -- first Are orders little going calendar do be they about the the quarter to quarter, that -- getting or even your wanted of are Just be order into would more fourth XXXX? now have the visibility. to scheduled or to out

a developer we ability as Yes. own discussed our manufacturer general to say get the well has Well, technology. uniquely call of that and Skyworks impeded, demand and right, a been the with through own today. terms, that assets, we're I as fabs, would our assembly tasks in through as

to this should more are than we with we fabless. as all time, So chip the say. that global better shortage same peers at able we're be But do dealing

can hopefully -- certainly working but and teams quarter is about hard are a execution, bit. resolve we demand bit be in it think any into demand. we the the doing very closely. unstuck a our so an level, to to and with current second We customers but a We're And that some does working impediment abate and talked it over in play to will time, that impediments that are through that our half

And I understand great. make sure to just Okay, that.

products. your the to full if they're you not They're of material, building for up your getting hold isn’t inventory waiting other bill deliveries? product, asking of customer So

it's true. Yes, just somewhat that's It depends on going. how

is parts up, Sometimes all are someone us holding And but we're ready. holding right. else up not anybody

So an of product has for everything ship. end it's kind to complete be to a --

of kind next do should So the think some food the anything here we'll that. it goes that chain But I from few we be couple see our in impediment. – of sour, can benefit in part. quarters, And the an navigate clouds we and cleared

you. great. Okay, Thank

back any comments. question-and-answer and closing Griffin I'll go ahead. for now over today's Mr. you. session. that to call gentlemen, turn concludes please Sir, Ladies Thank the

forward conferences Thanks you everyone participating look the to today. talking at in upcoming to quarter. Thank We you. for

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