Skyworks Solutions (SWKS) 4 May 222022 Q2 Earnings call transcript

Good afternoon and welcome to Skyworks Solutions Second Quarter Fiscal Year 2022 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 second Good welcome XXXX call. quarter afternoon, to today our Financial With Officer Liam are me Griffin, and Sennesael, and Chairman, Kris our Chief Officer. President Executive Chief

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

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

welcome to growth and revenue Mitch double-digit everyone. year-over-year earnings backdrop, in challenging Skyworks macro quarter with second share. per that Thanks, record and report am results, a pleased both Despite I delivered

from the benefit to markets, of are product growth and outperform in broad an expanding continue We set portfolio. And customers to well-positioned we current high diverse environment. in with a

increasing our in both at of growing consensus of our $X.XX content and delivered Tier Looking billion, diversification quarter more highlighting technology record reach. within the mobile above last customer to up we detail, QX the and year, revenue base XX% and X compared

record XX% and the up our broad sequentially $XXX to market million year-over-year. fact, revenue in a In rose XX% quarter,

flow We operating earnings up repurchases. $XXX million share of million through we flow to to $XXX exceptional continue XX.X%. We of shareholders cash We XX.X% $X.XX, and and of drive and margins, we margin cash In dividends margin and of year-over-year. operating returns. share consistent cash gross profit returned generated achieved XX% posted per addition, solid

content-rich from use IoT to a driven automotive smartphones innovative vast devices, expansion the results solutions infrastructure. cases this by were quarter and strong for to Our of complex industrial markets,

we router are the architectures, for other integrated wireless XG service. X mobile, technology featuring quad-band transition fixed Xs. transport. more first to We And SAW, leverage models the in-house on embedded SkyX in we In BAW top In and and the shift in and we performance. the the way content In industrial-grade Samsung and pave our cleaner further IoT, efficient vision from parallel, gateways, gaming extend we to automotive, with our compensated Enterprise OEMs temperature our Tier arsenide supported flagship factory lead in latest WiFi the Specifically debut devices WiFi computing access including residential for mobile XG. industry’s we Google, SkyX across global powered opportunities reach partnered for T-Mobile to technologies, autonomous Comcast’s executing trends gallium XE their XE automation. while ultrafast rugged electrification accelerating that with

data and extended the to for in leading network cutting-edge providers used satellite global backhaul systems, infrastructure We at quarter, center at supporting captured service X enabled clock performance our providers. OEMs. and solutions and networking the macro leaders. past leading wins industrial, portfolio across cell our wireless ramped timing equipment multiple design and small high XG across we momentum, power we technologies the LEO reach deployments. Over Tier fiber the with and finally, And of market isolation continued portfolio EV next-generation we gain Further, milestone in equipment

fundamentally to shift computing EVs Moving way forward, live. ubiquitous massive and the are the we cloud reshaping connectivity,

for is and uniquely factors, specific efficient As ultra-reliable, smaller, and these applications. demand complexity positioned purpose-built more accelerating. is of form with high-speed intensifies, engineer that to increasingly and advancements solutions intelligent edge for integrate customized billions compute seamlessly nodes to end low-latency markets Skyworks

have reach as in market and we and scale technologies. aperture never business core our investments been new broader Lastly,

signal growth Kris. future. over We propelling the power timing, audio, in turn among diversification our the isolation, the others, call RF, With into to processing, that, are breakthroughs and pioneering I will

Thanks, Liam.

Gross the reduction were XX of We XXXX, our $X.XX operating and QX of investments year-over-year. translating an $XX operating effective of margin quarter. of Broad of quarter X.X%, revenue, our billion, to the representing was further driving profit reflecting And million, of Operating based achieved a expenses million record last compared count delivered earnings average support second fiscal into of share in million weighted XX.X%, second up quarter million expense was a $XXX revenue $XXX tax XX% XX% to total XX.X%. $XXX increase of of generated incurred Skyworks Skyworks or margin an of QX was income, in XX.X% $XXX of We growth. of market up on points record a the revenue of in During million. million, share future year. net $X.XX, other in gross XX% resulting million rate income revenue XXX.X basis per shares, our year-over-year. $XXX we of

second capital million. balance cash operations were cash was flow expenditures from fiscal our $XXX $XXX flow, to and Turning sheet quarter million and

shares of the million for a quarter, $XXX paying of of million. our allocation returned shareholders, we during capital $XXX $XX to in dividends terms repurchasing X total common and In million million stock

dividends broad our per with fiscal Skyworks the the earnings Skyworks During the summary, shareholders to make returned growth and another in investments support repurchases. record delivered million and share, roadmaps QX product through team while continuing the In share revenue to solid first and technology mobile future year, half to $XXX markets. of and quarter, in

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

We growth earnings expect in per and year-over-year quarter. deliver share June revenue the double-digit to

to revenue the XX.XX%. XX.XX% takes pandemic-related quarter between of of is recent for midpoint market is year-over-year. to projected billion, $X.XX chain our in the of $X.X to and This At the Gross of $X.XX anticipate revenue demand. which supply end billion XX% the impacting disruptions, view be fulfill customers are into we current ability billion. range margin to our Specifically, increase expected account outlook

of rate X.X%. operating million. $XXX $XXX we We and in line, Below approximately roughly approximately expenses anticipate million to $XX of million a expect other expense the tax

given approximately diluted we call count XXX.X of our diversified XX% Liam. that, last share be dividends. to at of increase strong finally, turn of consistently with Accordingly, the midpoint to our through revenue cash flow $X.XX, investing while over and to shares. cash for in share growth over shareholders repurchases confidence QX and intend per outlook, expect And an will year. We And to are I earnings deliver the of back we range, diluted the returning both share million our

generating remains macro above-market set customer delivering on and applications Despite Chris. scale increases and revenue, squarely disruptions, look growth forward strategic profitability cash and a and diversified on across headwinds Thanks, supply we focused free earnings, markets. in of Capitalizing end Skyworks flow. technologies, continued to relationships, chain in-house

platform Finally, a for to open for remarks, as premium our efficient cash and we shareholders. long-term our returns future generation the balance formidable invest prepared the questions. Operator, for lines our sheet growth concludes provide so and consistent deliver that

you. first with UBS. question from the of [Operator question. Instructions] with Thank comes Please your line Our proceed Timothy Arcuri

Hi, thanks a lot.

markets chain. the comp pretty and actually the the around much mix issues a the their was to different. was be was given was in I supply lot was Broad just supposed was up it customer, easier from some Revenue with your quarter. supposed in had of to large a and fact, in and much broad but be to seasonal flattish normal much a the So mobile little respect markets better. weaker on mobile But better than was question line, dynamics much Kris,

sense the guess is assumed for I us will a happened the question be can So two, quarter? split Thanks. in one, what the guidance? and between markets mobile of And the you June broad give what that’s

Yes.

really well being out China or strong ramp quarter, about result have as performance customer, as for COVID-related First, group a Google in in as X form. part at market the a the the with plus a customer in Skyworks Pixel surprise XX% Samsung, very we lockdowns. It’s came nice which of reflecting strong some softness on a at we with on as no a now seen the is as performance large March mobile expected, back

On the quarter, also the infrastructure, was Silicon business well flipside, we from really acquired market it well automotive, across record. and all-time new course, that IoT, setting performing but really a during the broad business the was was our I&A Labs of doing board, revenue

So, March. that is for

that in mobile, course, growth will markets the is markets. guide. June ability customer the and June, strong in flipside year-over-year our will sequential broad as well high broad XXs, continue the, to of end well approaching on see supply But continue call chain to it, we in into demand in strong think year-over-year COVID-related as as there are see so growth in XX% that contemplated being to fulfill customers the some of I impacting disruptions our we

Thanks. the can you. you of for largest percent revenue in what Thank was then March? your And us give customer

customer the on with obtain of in Yes. demand up able that was quarter. more Revenue XX% large been Skyworks In strong was as clearly the gains have That customer customer. strong that XX% course, well, from basis to as March, content of March for that demonstrates customer than total a approximately that revenue. year-over-year

with from Raymond comes Chris Caso go of line question next the James. our And Please you. Thank ahead.

do the what quarter, that in mean, of we much related deeply. impacted supply of for allow the you. now, China can or how the one, the And customer the quarter, quantify can’t whether finally, dig you half presume impact into because September means And accept back that issues more you and on the your could year? thank Maybe does that a you some product? then that second that of side supply June magnitude more Good I the little us, Yes, evening. may that constraint of that’s comes some help that’s September you to

strategic ones. end specifically and our Sure, Clearly, around It a be customers, of some bigger a for number back including of there been disruption test and COVID some Liam. happens very, China. in for has very the Chris. This to is assembly

pretty So the part, and dynamic was, sites. to for walk-downs trying that’s that through the with stark operational most inflection manage where

execute assembly our things Skyworks, all filtering test. and for the down But your comes our technology, do continuing with we are again, to arsenide, we So in-house gallium set. obviously, our it that internally, customer to

So assembly is we everybody the or all, demand track work it’s level terms it in back great on at their a at issue own supply not of It has some and really are is at helping with end every demand. whether issue it’s test. a the get back elements, chain doing and company a lack companies, chip of today

going kind long-term that’s we think issue. this forward. what’s It’s of So on. as abate is go that going to certainly not We a

into. have that with partnerships leaning customers the We we’re great

to next few expect the through we things helping a and We’re them, months. better get get as we lot

going I’m to relates Chris, to only Yes. about only expressed, and technology guide know, But it time. said as right, that to we as guiding quarter stick a you product at feel and having road just we maps. a at quarter and good September, Liam one one that, our as time,

and engagements scale customer as and launches deep some have very of strong well ramps big have of broad and to year the half momentum. design and product We markets. assets our the manufacturing in mobile size second calendar And win important support the in we

strong And worsening pandemic-related are past. well geopolitical positioned macroeconomic course, half seen growth have in we the issues no the of of in some well assuming sequential as as of or so, we second the calendar very that year, year-over-year the to or see

you. Thank

for persisting bit while. hovering June, As the been there revenue into costs presume that some persisting. gross some lower getting a for What’s on a a minus kind on know is the a we’ve gross kind higher? just progress pandemic-related through And year of again, plus base. ask I’ll of as you from follow-up, the gross What’s or go of we impact bit the around last margins. expectations your were year, I prospect And here? margins said for were of I this XX% a margin

Yes.

a So in points March, XX year-over-year we up was did basis. which basis XX.X%, on

custom are gross some products And for year steep are But deliver look back We that ramps and ramping. June build that as to then I specific talked the higher see customers December, and same before, half the September expansions. revenue. right? are complex a we guiding on on sequential up our again, again, for the some lower about maybe geared we for slightly down into or higher about It’s in value of margin add,

towards a in our course, have tailwind well. as XX%. confidence target that, And a to margins markets we gross that higher then, of when gross space. little all course, of Of margin the and the improving size broad helps compared model mobile has we some you bit scale have combine from And of typically of

comes Thank Please of question ahead. Curtis go you. Barclays. And with next our the line from Blayne

so be taking June going was you for my up just on want But $XXX year-over-year thanks XXs looking high that or XX%. that’s would that lot I I and said apologize, I to million wrong, a Hey, Chris, markets by you’re I’m tonight, starting math, for? thought the segment, but apologize. And I they questions. what doing maybe of kind broad with taking something in clarify

similar was and which up up market in translate do sequential March, in sequentially as growth $XXX million broad and expect well. year-over-year into So XX% was year-over-year, June further XX% a very we growth that

I’m I just but handset is The outlook byproduct guess of But overall curious for kind on you Obviously, – market. down weakened. There that. market I perspective with that the overall grow you back think of about I XX%. has outlook your guess a on the Okay. I question, even maybe curious on of kind RF and faster. on the talked just check lame is kind market, to overall can your kind mobile of call the is disruptions. the the supply of can down it’s

Yes.

get just a overall Kris So mentioned, numbers what reiterated lot really mean, in forward. markets I’m But we the second. million really, to also of as doing mobile $XXX in a broad going we’re going with and the to we’re I excited momentum quarter in market, about

customers, very story, and just new looking So in market diverse, are growth the technology. broad very on markets end things new strong,

lever. important that’s one So

with, side, came We the to do chain. restrictions about mobile on that about into end. they is need well. honestly, that the second dynamics of continuing terms case, a we’re good issue. working very customers we’re when the This and where that, It’s and we’re drive to be and somewhat that not we actually products continued down. very of surprised mobile were and to extremely the where half our be there COVID a close know is the feel demand We will forward really need On business in there the

also – had are We them. customer done that just with that made do lot a we there with great company, And with haven’t it strides Samsung. technology. they a but incredible much to have is A of

we bit that account. trying to lot a go a up lower market. high now time We’re and moved the a were more of big little end opportunities within And there

important right also good technologies the even really share And looking so the we all very coming up. now, and more going into in in companies outlooks lot all are mobile have the three but XG, at that with of have half side, the and in of things most second IoT of that a stepped new year WiFi things around up around

a good about late really These feel we little us. bit for came the right in business So now. lockdowns

designed of so that second of half And to bit reflect but the feel year. the surprise, wanted very it a good and was thing We to we that the in a guidance, we’re little demonstrate what but we appropriate when our know content about do a sky fulfill our And know looking and the is through earnings. We into. clear forward products looks that like. that demand bit we’ve

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

Your line is open.

supply-related well thank it’s very always as whether much. it’s for time, issues. Liam. you to to sunk China demand market trying out just in versus some you the Hi, figure back sure to I’m been guys I – has the as come quite wanted But

to China you? particular? So not And there, have related causing kind in market an hearing that a over European supply? This what Is concern big is handset index for just the to Eastern guys point of that that, is in European that market is how to China Skyworks? there seeing okay? exposure geo-wise the And you’re we’re the is

Yes – no, great question.

And – matter are So been a in blanketed all China is it’s of where of or that dealing assembly elements. itself, So has China, issues COVID end, device, workforce, what – is with One geography. around technology. is the smartphone whether more issues a that thing two is back tremendous is more an That’s one. the there that right? IoT test, and it doesn’t we’re around around the And there China, related. so type now the it’s lockdown whether the

China necessarily really On now higher our right consolidated not the by They the side, China end is other the business we’ve are pushed players. brands.

We but have exposure business OBX, with course, of growing with brands we our the higher-end are China. within

really that have technology well that in or companies So in companies maybe are are doing U.S. may the into that are Korea in and great be sold they China. China

land top a in are position. about like really three our from you, share, major content. companies, it’s unique all I So those in gaining tell the of perspective. will We geographic mobile producing But are products where three really the

the but with of lower-end some not us, we’re gaining for quite And really it’s we’re players. the top a value share and and are the business rolling little bit off that brands gaining and frankly, in, interested growing

So that’s it shakes out. of kind how

elements COVID in looking So the how it’s of each with players those. issue, and then also at address geographical of the mobile a we

and very – now we well. the is honestly, have right working playbook So that

through will from are COVID look counting we We good as their well. this on we execution the get things partners there. here, us very China, bump around have of terms and in And know that in

to in. it’s good be spot So a

And so Ambrish.

or That Chinese of means XX% mobile less total about So slightly for in XX%. the Chinese the that’s customers customers. Skyworks broad coming than it’s total mobile, markets Actually, revenue on is in from higher.

and low I margin value, de-risked our end and higher driving So market content point effectively players. higher that this at to mean, attention we’ve our

all really about talk there it. that follow-up, asked I’ve a markets at I because all? Has you broad I extended business, On I business this ask May the please? is you’re a times XX% is or of setting lead when guys us impacted And heard And quick think concern for demand question, year-over-year, that growth because the is much not? begs how guiding that of you. out. kind Thank that real times lead again at of is have of XX%, don’t the

No, Yes. lead it’s thing. a time not

frankly, think that I your the whether customer with ahead cases, materials the they devices on little with we in mobile, technology. stay the end could now, have You in get often have very whether we’re of end are bit I on, IoT, – we’ve lane be XXX% are would they stay right? we right got have our perfect when a are we’ve builds in to to our harmony execute right, complex, if higher. And full mean they goals – bill market whether materials you pace, materials. are because quite to of of numbers they automotive, ultimately, But of complex products, in these the and they very, shipped. working working on be point those

So that is you a something easy. has is – this do a wave see the lot not operational and what I of here all we chain, temperature around again, a harder. building, companies ability test not given us for to inside a the levers gallium bulk acoustic tends weave be for from, exposure did in for, outperform been way of for industry but it compensated. that us supply it’s through wish own It’s not our bumps to arsenide think But those opportunity lot an the invest, of kind to some in complexity, now it which much of assembly

elements are the all there. So,

about viable. end So but way getting just the these integrated get together market. delivered products technology a the It’s little seamless is the a in absolutely it’s to demand and choppy there,

with Cowen. of comes the question Ramsay Matt next Our line from

is Your line open.

on. afternoon. Good let much very for me you Thank

markets could a done with broad my an to business segment have had that a team comment a franchise to maybe of and thought I that and businesses make a do wonder is that scaling cloud. investing on I The there the two was better of first opportunity I&A infrastructure, those they franchise push that to business. which in maybe addressed you’re further? and and initiatives job that a sort wireless sort are a voltage in those there question, we for you have of guys, little script isolation the you and in concentrated move if a EVs, bit guys of guys Silicon might timing you was the couple long to that Thank were into bit things time been covered and grow the your in had you. also Labs respect

really I’m Excellent. question. glad you that Yes. asked

very industry are a really high level, actually also better I&A attractive at Timing doing it. transaction that So got great great. literally, more very, market we granular the a issues on. scale And strong. there are portfolio just mentioned we’re line-by-line, those excited. it’s great I&A expected. with not had some hard with very you and portfolio are fabless powerhouses really that supply is that is because is is are for has it. after is they It’s great within many I a endorse It’s players. interesting, players technology to things been The – than It’s what chain significant working we going up the can the very very need outsourced we to around with And news be companies the matched But mean capable. things edge.

technologies have some on isolation, have market. This the get about great at boots leveraging more in marketing we ground, automotive on people, the the have, that, those the taking portfolio. customers we’re customers power right? that devices Isolation that Data technology opportunities and the leveraging of already center they working more need working teams it technology customers, really progress we on were here we’re another in in scale have already relationships is more Again, strides, making need more that muscle that and well. of So specifically have, can also bring And tremendous that try and doing and we technologies I&A out big is get just again, customers and been to folks, honed end. on that big, – we sales supercool end good some is the scale So people, a scale, can put tremendously, to but Skyworks that been meet that. there. we’re market making is good to to diversified that

So excited it. we’re really about

think mentioned already. it Kris I

ahead really about and really, We’re early far, driving the so really that feel of expectations I innings, it. deal our great team but behind

to end. on broad a just that we print. high markets These over now. big at put We talking things But more a forward again, million level. numbers are – we’re look So $XXX about

We’re diversification. Skyworks billion It’s run rate. creating tremendous ago. a This years not were We is X $X at X.X% XXXX. in

the diversified We’re mid level with now in billion portfolio. $X.X much a more

our So that looking reflecting to delighting forward in our we’re and valuation customers.

very color the Thank all there. you much for

switching Just follow-up. gears for my

again. guys mentioned them at like within You sounded it Samsung portfolio a customer share gains with becoming XX% some the

how I was the at comment share think Galaxy San sustainable be? change baseband that you if the and upped think that from internal I solutions. with it about you last Samsung week, there their aligned wonder as you’re XX on processor they had Diego how to there opposed might commentary and might Thanks.

baseband, processor, the foe. don’t have side, I make that around about will it’s technologies wrap mean modem friend Yes. anybody’s the on just we baseband but or that whether we product,

And So they need to the get to we’re performance. decisions make best are to really the our agnostic customers that make going to that.

live in-house, have device breathe and in those that lot baseband could Skyworks Qualcomm you unique from building, else. applications well people our high-content of that could not someone with in-house all a fabless, are very wireless. done populated in a or same crafted, our factories And So, Solutions see very with custom a

interesting we into phone content, the Bulk is with the baseband, a of high-performance by live thinking filtering in a And When we got devices mobile thing all of TC-SAW lot But as kind things, beyond, think way complexity. single all what’s connected a So, gallium XG you that time. semiconductor not to happening is size device. from company. have monolithic the of leveraging any today you the There arsenide. of move it’s one done with about the Wave, number the and about the Acoustic

nodes the number mobile, if of really think diverse. within address you at So, really, that I high look it’s and we

our So, and every share there solutions fabrication are pieces, we that cornerstone in of filtering. in-house assembly given have, test course, and a gaining and But lot some flexibility of the device. that and in-house are

unique, So, a of do lot are I more well. we would little can customer-centric and say crafted served approach, things that us a it

really to appreciation say is been room a industry or – feel will but in good this am and been about that in time, I it. have than the more for And a there So, I technology excited they we that I with demonstrated brands. mid-tier try to bring. have we mobile in one long clearly actually us want players that oftentimes, their about better, see high-end our very device, that we two and they this technology customers it’s leading get And And the they to can the and to them the players, help want make come better, leap. really

about good side. that feel So, we

Edward comes Equity Research. go of Your next ahead. the Please from with Snyder line question Charter

lot. a Thanks

year, being dig And this a and sounds more content? have dual connectivity similar the for it added we maybe extent much was seemed for to in please. be maybe this have bands a pretty to of that bands You about out mobile, year, content phones, seem that next for I gains to follow-up, this not just rumblings, I Skyworks’ especially big comes year. be to last year in little Should half gains into content in a bit. growth the excited expect that second fewer a because the the of year, on have? then like of impact does And the you the maybe millimeter an that wave wanted

haven’t strategic opportunity, really good with about we the we but have are and customers, about Sure. to feel excited market, ready. positions Yes. design that taken are been No, yet they the we some win products

in is are devices device. well conviction lot seeing also specific is with and gain more feel that mobile of still I to and as and share and good. our more content, again to ways We in continue positive quite grow, A gain more which and different to happen complexity that, opportunities will

forward, go are of So, other that there are just working. feels we And we really here tools that as a lot good.

higher technology of bulk levels players is wave It to continuing performance is and of in hit Tier players Our acoustic with growing. Tier X right value X the multiple some higher gaining and now.

there lot that So, to is a on end. go more

doing We great here. We talked side. the the still broad numbers on a are job market about

million know, And We you that are lot transferred. XXX of clicks. can as a technology that over be

engine device. IoT go go XG phone, a an into go have it it could You can a into data could center a that mobile application into

universal connector we end want there XG supporting the So, multiple to really be around applications. technologies related and

if my I for then could. And follow-up,

this in am year pretty You year. your here, sure was below importantly for brought then on the be may I drop you And small. half secondarily big XX% expect XX% second the for on in and going it to this do be quarter. the more change overall? one, ramp of your big because Samsung customer largest But it will that it

Thanks. more growth last into the your, to You the were or modules content is? to how and it product X% big at largely content you extent year several master, maybe a to of – seeing shift for to much scale mass to going to X% point better so. that’s much program, down XX%. I the one gain mean How tier, of the the due have in you in that that are revenue expect years this us, runway very you Is in it’s shift if to also the maybe flagship, do line, far back is, you is to where or And how a in above penetrate. that’s due now do too? so their and it could take you are to modules your in

good And question. follow-through. I seek this Yes. know No, a that’s you

solution these good at powerful engineer do and really had have leap of sort to complex, we been our a to Samsung, it challenging I the of always with can all work, with and engineer more develop try to with am Samsung shoulder-to-shoulder to a So, lot that the XG. really more wonderful things work folks but connectivity we been partner a team more work powerful into and doing richer that modules just nodes. demonstrates

know-how There I opportunity partnership we one two that to is We all. it’s a for – a the to pony awesome. out been market and number us that is of deal drop with go. hasn’t job single player and very and strong. going there, be is And a great lot at in do complexity there that, so And resolved. of areas here to the love to us fortunately, our value other engineering lot one-trick it’s mean the allowed teams us a not room for

the the quite I we a So, know really we call the that bit way flexible little But to the excited about we already purpose-built working customer-first are players top-tier in itself. about it, frankly. technology are go. and with talked approach, is

really not on are last year. focusing We

right of being our and most assets, delivered procured high-performing those leveraging are We out factory. own of

a and They well. to on decision those know players that. want about that to are stuff going excited to premium it They want They trust. And it. where to we products want mid are have love and So, and see a being the it. voice to want all They see built.

So, a more still there go. into of are else. there but everybody of to think course, XX%, lot with we is And Samsung, coming room is pleased we for

next Wells Thank go your line with Fargo. you. And ahead. Please from with Mobley Gary question the comes

guys. Hey taking question. for Thanks my

me first background the apologize for noise. Let

these your question June some to may Going revenue. back to quarter to quantify try mean Chris’ what of shutdowns for

you gave quarter, believe the for large product I revenue. impact their which X% let’s of about of a the range, in to specific revenue, million? Is think it $XX impact that the X% way June is overall about right call Your customer

about Yes, I think, Gary, right. that’s not

– at at to sequentially guided If XX%, midpoint. look X% X% you the we down

to I if average sequential the range. you it’s X% look X% think in historical declines, at

as really the of fact that are is right, only the our here customers, the specifically as April. some other leaving well large in customer so the quarter, in the difference lockdowns on because June COVID-related And revenue table

to that heard that the factories fulfill be to have to reopening, demand work then, they hard end strong from But going many improved has make in they hard of You up are customer to going try customers situation that it’s all since that the see. and are to the June those and quarter.

And there, was March million. the quarter $XXX you in to are the share buyback you your to color I way per use buyback probably share willing Kris. the describe fund the maybe And best buyback, to pace? Can given in the that aggressive, the for your creative sustain you share guess word Appreciate be price?

at something look in was quarter the March million record. it we that It’s $XXX week-by-week, Yes. day-by-day, an all-time

have that there dividend, cash spent still we pay free as flow we And to flow. that room use will continuing are there for share of strong than course, there, buybacks. more well We to and generate continue for never some definitely the have cash it is amount improvement use to, given in and one to We and quarter. firepower

Yes. I valuation all over mean obviously, now, given right we where that. the is are

we the we there is solid. more go flow through so very and said, do and think Kris I But The here more glad that’s is for what it. if as come more, be engine done, did we So, we cash in room And as to The numbers. can needs we forward, going to did absolutely business far. strong. very is am more,

comes question next with ahead. the go Your from Piper of Kumar Please Sandler. Harsh line

first you then any do think focus China And Hey Yes. there end of in questions. hopefully, that’s burned of us for inventory of think I in I thinking the is two Chinese all, do the give made China? consumption, on by you hoping hate off. on do some One, the your COVID – Liam, to causing COVID in quarter, secondly, phones are I just if that, June I phones clarity aside, issues sold China. The some those guys. that think, aside, you you of have it’s could – business, XX% was that that on but issues. was

pro season, what build at customer motto? in And you that can them to the they question, follow-up, Can into world you that second a of my where get you will with now. point you role large provide in just using your are right think help my kind ask So, see And own their your I growth? help about us time?

and Okay. beginning here. really I Well, where the the is world. Alright. of technology Harsh, share lot factor mean right Foxconn, biggest I the outbound, where will see overarching test, try and that is you to the Pegatron there certainly, assembly China is a start the factors, now of lion’s the situation, the it’s right. of hub final – test just in assembly is from China stages and

many, So, many multiple in companies technologies. go through multiple that hub, factories,

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through I understood. think the to it. teams that our we over going parts are equation We of the It’s get all well manage we know are technologies.

working Our fabs great. are

Our filter running. fabs are and up

more bumps. you We also of to make But mobile some bumps we in happen. are meanwhile, And will here that. tier within there think stepped have know course, of smoothed COVID that those side the kind a towards we mid can matter U.S., of have within And higher do within we be the end bit well And that out a China are up China. everything little will on to doing months. in still the I

a China, see not China the necessarily brands. bit we So, consumption to little with but are in starting more

follow bit, are the and smaller So, little anticipated three drive. the And the majors important companies are three to going something to rolling some to are going need actually really and gaining. are or for we to and some vector by of brands more a of major the top China up that that’s they very step off brands, it’s a where top us continue do been but the wayside the

dynamic play. that and stepping and is are others quite like more try positive that’s names up working So, really to happen. the Samsung And because technology that’s that a we for to and and us, seeing make Skyworks in actually with frankly, that are driving more

respect a comment your last this. for bill customers with positive than generically do a us rather lower that’s how of So, make largest I materials. then here, say to And just will we so cost

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solve engineer-to-engineer, our that bit but culture problems. to little customers the know before, create how of to we that’s with success just how ability and We a our to about shoulder-to-shoulder, reiterate, talked know Skyworks’ business. have We

some good want But just take that the actually to And of real And that’s make day, the we So, of appreciate for to to cover dynamics the not don’t around we any question was nuances a every I that technology. going kind happier. of just really our customers granted. change. behind

Thank to you. call comments. closing over I concludes question-and-answer gentlemen, any will back turn and And session. ladies Mr. the for Griffin that today’s now

forward to you upcoming conferences. look call. today’s We seeing Thank all participating in at investor you. Thank you for

that conference and today’s thank you participation. We Ladies concludes your for gentlemen, call.