Q4 2024 Qorvo Inc Earnings Call

Followed by zero. After today's presentation, there will be a question and opportunity session.

To ask you a question, you may press Divern 1 on your telephone keypad. To withdraw your questions, please press D'Rythin 2. Please note this event is being recorded. I would now like to turn the conference over to Douglas Delito, Vice President-Investor Relations. Please go ahead.

[music].

Thanks very much. Hello everyone and welcome to Corbeau's fiscal 2024 fourth quarter earnings call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations.

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All participants will be in listen only mode.

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After todays presentation, there will be a question and opportunity session.

We encourage you to review the Safe Harbor statement contained in the earnings release published

To ask a question you May press Star then one on your telephone keypad to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Douglas to retired Vice President Investor Relations. Please go ahead. Thanks.

today, as well as the risk factors associated with our business in our annual report on Form 10K, followed with the SEC because these risk factors may affect our operations and financial results. In today's release and on today's call, we provide both GAAP and non- GAAP financial results.

Operator: Please note, this event is being recorded. I would now like to turn the conference over to Douglas DeLieto, Vice President, Investor Relations. Please go ahead.

Douglas DeLieto: Thanks very much. Hello, everyone, and welcome to Qorvo's fiscal 2024 fourth quarter earnings call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to read the safe harbor statement contained in the earnings release published Today, as well as the risk factors associated with our business in our annual report on Form 10-K filed with the FCC because these risk factors may affect our operations and financial results.

Douglas: Thanks, very much Hello, everyone and welcome to <unk> fiscal 2020 for fourth quarter earnings call.

Douglas DeLieto: In today's release and on today's call, we provide both GAAP and non-GAAP financial results. We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain non-cash expenses or other items that may obscure trends in our underlying performance. During our call, our comments and comparisons to income statement items will be based primarily on non-GAAP results.

Douglas: This call will include forward looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations.

We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain non-catch expenses or other items that may obscure a trend in our underlying performance.

Douglas: We encourage you to read to review the Safe Harbor statement contained in the earnings release published today as well as the risk factors associated with our business in our annual report on Form 10-K filed with the SEC because these risk factors may affect our operations and financial results in today's release and on today's call we provide both.

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

For complete reconciliation of GAP to non- GAAP financial measures, please refer to our earnings release issued earlier today, available on our investor relations website at IR.corbo.com under financial releases.

Douglas: GAAP and non-GAAP financial results, we provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain noncash expenses or other items that may obscure trends in our underlying performance during our call our comments and comparisons.

Joining us today are Bob Bruggerworth, President and CEO , Grant Brown, CFO , Dave Fullwood, Senior Vice President of Sales and Marketing, and other members of Corvost Management Team. And with that, I'll turn the call over to Bob.

Thanks, Doug, and welcome everyone to Corvo's fiscal 2024 fourth quarter call. I'd like to begin by reminding our audience that we issued a press release last week announcing the date of our upcoming Corvo 2024 Investor Day.

Douglas: Two income statement items will be based primarily on non-GAAP results for complete reconciliation of GAAP to non-GAAP financial measures. Please refer to our earnings release issued earlier today available on our Investor Relations website at IR Dot Corvo Dot com under financial releases, joining us today are Bob <unk>, President and CEO Grant.

Douglas DeLieto: For complete reconciliation of GAAP to non-GAAP financial measures, please refer to our earnings release issued earlier today, available on our investor relations website at ir.qorvo.com under the financial release. Joining us today are Bob Bruggeworth, President and CEO, Grant Brown, CFO, Dave Fullwood, Senior Vice President of Sales and Marketing, and other members of Qorvo's management team. And with that, I'll turn the call over to Bob.

The event will be held June 11th. It will be webcast for all audiences, and it will begin at 8.30 a.m. Easter. Our last Investor Day was in 2018, and we're very excited to discuss in detail our expanded opportunities in our enthusiasm for the future.

Bob: Brown CFO, Dave fluid senior Vice President of sales and marketing and other members of <unk> management team and with that I'll turn the call over to Bob.

Robert Bruggeworth: Thanks, Doug, and welcome, everyone, to Qorvo's fiscal 2024 fourth quarter call. I'd like to begin by reminding our audience that we issued a press release last week announcing the date of our upcoming Qorvo 2024 Investor Day. The event will be held June 11th. It will be webcast for all audiences, and it will begin at 8.30 a.m. Eastern.

Bob: Thanks, Doug and welcome everyone to core versus fiscal 2020 for fourth quarter call I'd like to begin by reminding our audience that we issued a press release last week announcing the date of our upcoming Corvo 2020 for Investor Day.

Across our businesses, Corvo is at the forefront of global secular macro trends, including mobility, connectivity, electrification, and datification.

These macro trends are enabling new applications and new user experiences, many of which are made accessible to you by the company's Corvo supplies and the devices we enable.

Bob: The event will be held June 11th it will be webcast for audiences and it will begin at 830 am Eastern our last Investor Day was in 2018, and we're very excited to discuss in detail our expanded opportunities and our enthusiasm for the future.

Robert Bruggeworth: Our last Investor Day was in 2018, and we're very excited to discuss in detail our expanded opportunities and our enthusiasm for the future. Across our businesses, Qorvo is at the forefront of global secular macro trends, including mobility, connectivity, electrification, and datafication. These macro trends are enabling new applications and new user experiences, many of which are made accessible to you by the company's Qorvo supplies and the devices we enable. Our customers continually seek to improve key performance parameters such as power out, current consumed, talk time, battery life, and time between charges.

Our customers continually seek to improve key performance parameters such as power out, current consumed, talk time, battery life, and time between charges.

Bob: Across our businesses Corvo is at the forefront of global secular macro trends, including mobility connectivity electrification and data vacation. These macro trends are enabling new applications and new user experiences many of which are made accessible to you by the companys corvo supplies.

This is happening across our markets.

in aerospace and defense, automotive, consumer, infrastructure, industrial, and enterprise.

It is increasing customer focus on power efficiency, throughput, functional density, form factor, and other areas where Corvo delivers a significant competitive advantage.

Bob: And the devices we enable.

Bob: Our customers continually seek to improve key performance parameters such as power out current consumed talk time battery life and time between charges.

Complimenting this, legacy technologies are transitioning to more advanced technologies like active electronic standing systems, advanced power management,

Robert Bruggeworth: This is happening across our market, in Aerospace and Defense, Automotive, Consumer, Infrastructure, Industrial, and Enterprise. It is increasing customer focus on power efficiency, throughput, functional density, form factor, and other areas where Qorvo delivers a significant competitive advantage. Complementing this, legacy technologies are transitioning to more advanced technologies like active electronic scanning systems, Advanced Power Management, Force Sensing Touch Centers, RF MEMS, and a range of system-on-a-chip and system-in-a-package solutions to improve performance and enhance functionality. Also, new connectivity protocols are being adopted across our businesses, including 5g advanced, DOCSIS 4.0, Wi-Fi 6, 6E, and 7, Matter, and Ultra Wideband.

Bob: This is happening across our markets and aerospace and defense automotive consumer infrastructure industrial and enterprise.

force sensing touch centers, RFMs, and a range of system on a chip, and system in a package solutions to improve performance and enhance functionality.

Bob: It is increasing customer focus on power efficiency.

Also, new connectivity protocols are being adopted across our businesses, including 5G advance, DOCS 4.0,

Bob: Functional density form factor and other areas, where corvo delivers a significant competitive advantage.

Wi-Fi 6, 6E, and 7, Matter, and Ultra-W-Ban. Corvo is driving innovation to enable these trends while expanding our capabilities and product offerings to target a growing set of opportunities.

Bob: Complementing this legacy technologies are transitioning to more advanced technologies.

Bob: Active electronics standing systems.

Bob: Advanced power management <unk>.

Bob: <unk> touch sensors, RF, Mems and a range of system on a chip and system in a package solutions to improve performance and enhanced functionality.

Now let's turn to the strategic highlights beginning with HPA. HPA returned to year-over-year growth in the March quarter, supported by strong sequential growth and defense and aerospace, and continued improvement in end markets other than Bay Station.

Bob: Also new connectivity protocols are being adopted across our businesses.

Bob: Including <unk> events <unk>.

Bob: <unk> four point out.

In defense and aerospace, we're very pleased to have completed the acquisition of Noki Wave in the March quarter. The Noki Wave team brings robust capabilities in high-performance integrated silicon ICs for intelligent, active array antennas.

Bob: Wi Fi six six and seven.

Robert Bruggeworth: Qorvo is driving innovation to enable these trends while expanding our capabilities and product offerings to target a growing set of opportunities. Now, let's turn to the strategic highlights, beginning with HPA. HPA returned to year-over-year growth in the March quarter, supported by strong sequential growth in defense and aerospace and continued improvement in end markets other than base stations. In defense, we're very pleased to have completed the acquisition of InokiWave in the March quarter. The InokiWave team brings robust capabilities and high-performance integrated silicon ICs for intelligent active array antennas.

Bob: Matter and ultra Wideband Corvo is driving innovation to enable these trends, while expanding our capabilities and product offerings to target a growing set of opportunities.

Their commercially proven portfolio includes silicon beam forming ICs and ISF to RF conversion solutions, which are complementary to our transmit and receive RF front ends for SAPCOM, DNA, 5G, and other beam forming applications.

Bob: Now, let's turn to the strategic highlights beginning with HPA HP.

Bob: The HPA returned to year over year growth in the March quarter supported by strong sequential growth in defense and aerospace and continued improvement in end markets other than base stations.

Bob: In defense and aerospace, we're very pleased to have completed the acquisition of Nokia wave in the March quarter.

Record annual and March quarterly revenue and D&A was driven by large defense programs and SATCOM growth.

Bob: <unk> brings robust capabilities in high performance integrated silicon Ics for intelligent active array antennas.

The DNA content opportunity for Corvo is especially strong in phased arrays where solutions can enable transmit-receive elements.

Robert Bruggeworth: Their commercially proven portfolio includes silicon beamforming ICs and IF to RF conversion solutions, which are complementary to our transmit and receive RF front ends for SAPCOM, DNA, 5G, and other beamforming applications. Record annual and March quarterly revenue of D&A was driven by large defense programs and SATCOM growth. The DNA content opportunity for Qorvo is especially strong in phased arrays, where solutions can enable transmit-receive elements.

Bob: They are commercially proven portfolio includes silicon beam, forming Ics and ISR conversion solutions, which are complementary to our transmit and receive RF front ends for satcom, DNA <unk> and other beam forming applications.

FaceDray radars can contain hundreds, up to tens of thousands of transmit receive elements per system, underscoring the multiplier effect for Corvo.

Adding to this, we are developing more highly integrated placements that combine Anoki Wave solutions with our existing RF and power management IC portfolios.

Bob: Record annual and March quarterly revenue and DNA was driven by large defense programs and satcom growth.

Design wounds for the corridor span airborne and shipborne radars, SATCOM applications, and solid state PA products.

Bob: The DNA content opportunity for Corvo is especially strong in place to raise where our solutions can enable transmit receive elements.

We secured our first design win for ball-based filter bank solution that enables new architectures for large defense customers.

Robert Bruggeworth: Phased array radars can contain hundreds, up to tens of thousands of transmit-receive elements per system, underscoring the multiplier effect for Qorvo. Adding to this, we are developing more highly integrated placements that combine Inoki Wave solutions with our existing RF and power management IC portfolios. We designed ones for the corridor span airborne and shipborne radars, SATCOM applications, and solid state PA products. We secured our first design win for a ball-based filter bank solution that enables new architectures for large defense customers. In low Earth orbit SATCOM applications, we are engaged to supply multiple Qorvo products, including LNA switches, mixers, and ball multiplexers to support ubiquitous non-terrestrial connectivity.

Bob: Phase III radars can contain hundreds up to tens of thousands of transmit receive elements per system underscoring the multiplier effect for <unk>.

In low Earth orbit SATCOM applications, we are engaged to supply multiple Corvo products, including L&A's switches, mixers, and ball multiplexers to support ubiquitous non-terrestrial connectivity.

Bob: Adding tuners, we are developing more highly integrated placements that combine <unk> solutions with our existing RF and power management IC portfolios.

Bob: Design wins for the quarter spanned airborne and shipboard radars satcom applications and solid state products.

Turning to power management, we are investing to expand our reach in markets where Corvo enjoys long-standing customer relationships, such as consumer, DNA, and mobile, while also targeting more fragmented and more diverse industrial markets.

Bob: We secured our first design win for ball based filter bank solution that enables new architectures for large defense customers.

Bob: In low Earth orbit Satcom applications, we are engaged to supply multiple corvo products, including <unk> switches mixers and Bob Multiplexers to support ubiquitous <unk> connectivity.

During the March quarter, we secured a motor control design wind and a power tool platform with a leading manufacturer of residential and commercial lawn and garden products. We also secured new PEMIC designs at new and existing solid state drive customers.

Bob: Turning to power management, we are investing to expand our reach in markets, where corvo enjoys longstanding customer relationships, such as consumer DNA and mobile while also targeting more fragmented and more diverse industrial markets.

Robert Bruggeworth: Turning to power management, we are investing to expand our reach in markets where Qorvo enjoys long-standing customer relationships, such as consumer, DNA, and mobile, while also targeting more fragmented and more diverse industrial markets. For example, during the March quarter, we secured a motor control design wind and a power tool platform with a leading manufacturer of residential and commercial lawn and garden products. We also secured new payment designs at new and existing Solid State Drive customers. Looking more closely at power management opportunities in mobile, there are increasing requirements for compute and processing power in the device that are creating new growth vectors for Qorvo.

Looking more closely at power management opportunities in mobile, there are increasing requirements for compute and processing power in the device that are creating new growth vectors for Corvo Pemix.

The opportunity is significant in both volume and content, and we are able to leverage our exceptional customer and ecosystem relationships.

Bob: During the March quarter, we secured a motor control design win and a powerful platform with a leading manufacturer of residential and commercial lawn and garden products.

Corvo is a recognized leader delivering RF solutions addressing customer challenges related to efficiency, functional density, and power consumption.

Bob: We also secured new payment designs at new and existing solid state drive customers.

Bob: Looking more closely at power management opportunities in mobile.

Our RF power management portfolio includes envelope tracking, average power tracking,

Bob: There are increasing requirements for compute and processing power in the device that are creating new growth vectors for corvo Phoenix.

Beyond RF power management, there are incremental power management opportunities in the phone where Corbo is leveraging our expertise to reduce current consumption, improve battery life, and better accommodate more data-intensive use cases.

Robert Bruggeworth: The opportunity is significant in both volume and content, and we are able to leverage our exceptional customer and ecosystem relationships. Qorvo is a recognized leader delivering RF solutions to address customer challenges related to efficiency, functional density, and power consumption. Our RF Power Management Portfolio includes Envelope Tracking, Average Power Track, and Beyond RF power management, there are incremental power management opportunities in the phone, where Qorvo is leveraging our expertise to reduce current consumption, improve battery life, and better accommodate more data-intensive use cases.

Bob: The opportunity is significant in both volume and content and we are able to leverage our exceptional customer and ecosystem relationships.

We have very strong power management IP that can be extended across markets, making our PEMIC portfolio an engine for diversification, growth, and profitability.

Bob: <unk> is a recognized leader delivering RF solutions addressing customer challenges related to efficiency functional density and power consumption.

Bob: Our RF power management portfolio includes envelope tracking average power tracking.

We are also extending our reach in broad markets by building out more ways to engage with existing and new customers, such as our recently launched Q-Spice, analog, and mixed signal circuit design, and simulation tools.

Bob: Beyond RF power management, there are incremental power management opportunities in the phone, where corvo is leveraging our expertise to reduce current consumption improved battery life and better accommodate more data intensive use cases.

QSPICE has gained quick traction with engineers by providing them measurable improvements in speed, functionality, and reliability of circuit simulation. Since its launch, QSPICE has surpassed 20,000 unique downloads.

Robert Bruggeworth: We have very strong power management IP that can be extended across markets, making our PMIC portfolio an engine for diversification, growth, and profitability. We are also extending our reach in broad markets by building more ways to engage with existing and new customers, such as our recently launched QSPICE analog and mixed signal circuit design and simulation tools. QSPICE has gained quick traction with engineers by providing them with measurable improvements in speed, functionality, and reliability of circuit simulation. Since its launch, QSPICE has surpassed 20,000 unique downloads.

Bob: We have very strong power management IP that can be extended across markets, making our <unk> portfolio and engine an engine for diversification growth and profitability.

In power devices, customers continue to transition from silicon to silicon carbide and the design activity for Corvo remains strong in our target markets.

Bob: We are also extending our reach and broad markets by building up more ways to engage with existing and new customers such as our recently launched Q spice analog and mixed signal circuit design and simulation tools.

We continue to secure design winds for high density server power supplies and added a second tier one North American server OEM during the quarter.

Bob: Two spices gained quick traction with engineers by providing them measureable improvements in speed functionality and reliability of circuit simulation since its launch <unk> has surpassed 20000 unique downloads.

In infrastructure markets, Corvo is leading the transition from Dox's 3.1 to Dox's 4.0 with a broad portfolio of products.

Boxes 4.0 will increase the efficiency of existing infrastructure and significantly enhance the user experience.

Robert Bruggeworth: In power devices, customers continue to transition from silicon to silicon carbide, and design activity for Qorvo remains strong in our target market. We continue to secure design wins for high-density server power supplies and added a second tier one North American server OEM during the quarter. In the infrastructure market, Qorvo is leading the transition from DOCSIS 3.1 to DOCSIS 4.0 with a broad portfolio of products. Proxos 4.0 will increase the efficiency of existing infrastructure and significantly enhance the user experience. DOCSIS 4.0 will support download speeds of up to 10 gigabits per second and increase upload speeds by four times compared to DOCSIS 3.1 to six gigabits per second.

Bob: And power devices customers continue to transition from silicon to Silicon carbide and design activity for Corvo remains strong in our target markets.

Doxas 4.0 will support download speeds of up to 10 gigabits per second and increase upload speeds by four times compared to Doxas 3.1 to 6 gigabits per second.

Bob: We continue to secure design wins for high density server power supplies and added a second tier one north American server OEM during the quarter.

In our base station business, customers continue to award Corvo design lens. However, we expect the demand environment to remain weak. Longer term, we're very pleased to have been selected by a European-based OEM to support their 6G development efforts.

Bob: And infrastructure markets <unk> is leading the transition from DOCSIS three one DOCSIS four pointed out with a broad portfolio of products.

Bob: DOCSIS four <unk> will increase the efficiency of existing infrastructure and significantly enhance the user experience.

Turning to CSG, we are supporting an increasing number of applications requiring the security and precision location awareness over ultra-wide-band solutions across mobile, consumer, automotive, and other markets.

Bob: For <unk>, we'll support download speeds of up to 10 Gigabits per second and increased upload speeds by four times compared to DOCSIS three one to six gigabits per second.

In mobile, our ultra-wide-end placements or among many Corvost solutions applied to Samsung in support of their Galaxy S-24 flagship brand.

Robert Bruggeworth: In our base station business, customers continue to award Qorvo design wins. However, we expect the demand environment to remain weak. Longer term, we're very pleased to have been selected by a European-based OEM to support their 6G development. Turning to CSG, we're supporting an increasing number of applications requiring the security and precision location awareness of our ultrawideband solutions across mobile, consumer, automotive, and other markets. In mobile, our ultrawideband placements were among many Qorvo solutions supplied to Samsung in support of their Galaxy S24 flagship brand.

Bob: And our base station business customers continue to award Corvo design wins. However, we expect the demand environment to remain weak longer term. We're very pleased to have been selected by a European based OEM to support their <unk> development efforts.

In consumer markets, recent wins include a robotic lawnmower that leverages Corvost ultra-WiBand to provide the precision location accuracy required to enable this application.

Bob: Turning to see ESG, we're supporting an increasing number of applications, requiring the security and precision location awareness overall to wideband solutions across mobile consumer automotive and other markets.

In automotive, customer engagements are expanding to enable a range of applications that leverage Corvo's ultra-wide-band radar capabilities.

Bob: In mobile our ultra wideband placements were among many <unk> solutions supply to Samsung and supported our Galaxy is 24 flagship brand.

Automotive applications for ultra-wideband technology include secure access and digital key, as well as kick sensors, and the reliable detection of both intrusion and occupancy.

Robert Bruggeworth: In consumer markets, recent wins include a robotic lawnmower that leverages Qorvo's Ultra Wideband to provide the precision location accuracy required to enable this application. In automotive, customer engagements are expanding to enable a range of applications that leverage Qorvo's ultra-wideband radar capabilities. Automotive applications for ultra-wideband technology include secure access and digital key, as well as kick sensors and the reliable detection of both intrusion and occupancy.

Bob: In consumer markets recent wins include a robotic lawnmower that leverages core most ultra wideband to provide the precision location accuracy required to enable this application.

During the quarter, customer activity included an ultra-wideband design wind enabling secure access for an EV manufacturer in North America.

In other automotive applications, we were selected to supply automotive Wi-Fi 6E solutions in support of a different North American EVOM.

Bob: And automotive customer engagements are expanding to enable a range of applications that leverage <unk> ultra wideband radar capabilities automotive applications for ultra Wideband technology include secure access and digital key as well as kicks sensors and the reliable detection of both intrusion.

We were also selected to supply our VDAX solution for an automotive OEM in Europe on a platform ramping in calendar 25.

For an EV-O-E-O-E-O-E-M in Asia, Corvo was selected to enable their 5G network access device

Bob: Occupancy during.

Robert Bruggeworth: During the quarter, customer activity included an ultra-wideband design wind enabling secure access for an EV manufacturer in North America. In other automotive applications, we were selected to supply automotive Wi-Fi 6E solutions in support of a different North American EV OEM. We were also selected to supply our VTAC solution for an automotive OEM in Europe on a platform ramping in calendar 25. For an EV OEM in Asia, Qorvo was selected to enable their 5G network access device with six solutions, each of which contains our low-band, mid-high-band, ultra-high-band, diversity-received, average power tracker, and high-performance BOS filtering.

Bob: During the quarter customer activity included an ultra wideband design win enabling secure access for an EV manufacturer in North America.

with six solutions, each of which contain our low band, mid-high band, ultra-high-band, diversity receive, average power tracker, and high-performance ball filtering.

Bob: And other automotive applications, we were selected to supply automotive Wi Fi six solutions in support of a different North American EV OEM. We were also selected to supply our <unk> solution for an automotive OEM in Europe on our platform ramping in calendar 'twenty five.

Production for this program begins this year, and the win is noteworthy as this 5G reference design will be marketed to additional automotive OEMs and tier ones.

For Wi-Fi markets, we continue to roll out new technologies and solutions. We are migrating our newest and most advanced raw technology across our Wi-Fi portfolio.

Bob: For an EV OEM in Asia <unk> was selected to enable their <unk> network access device with six solutions each of which contain our low band mid high band Ultra high band diversity receive average power tracker and high performance ball filtering.

We launched 6 gigahertz Wi-Fi 7 filters using our next generation VA and we will soon launch Wi-Fi 7 IFEMs that combine our next generation ball with our PA, switch, and LNA content in a single placement.

Robert Bruggeworth: Production for this program begins this year, and the win is noteworthy as this 5G reference design will be marketed to additional automotive OEMs and Tier 1s. For Wi-Fi markets, we continue to roll out new technologies and solutions. We are migrating our newest and most advanced BAW technology across our Wi-Fi portfolio. We launched 6 gigahertz Wi-Fi 7 filters using our next generation BAW. And we will soon launch Wi-Fi 7 IFEMs that combine our next-generation BAW with our PA, switch, and LNA content in a single place. We also ramped our newest Wi-Fi 7 nonlinear FEMS for a Tier 1 network operator in the U.S., and we sampled next-generation, high-efficiency Wi-Fi 7 FEMS, aligning with a leading mobile Wi-Fi chipset.

Bob: Duction for this program begins this year and to win is noteworthy as this <unk> reference design will be marketed to additional automobile automotive Oems and tier ones.

We also ramped our newest Wi-Fi 7 non-linear fems for a Tier 1 network operator in the U.S. And we sampled next-generation high-efficiency Wi-Fi 7 fams aligning with a leading mobile Wi-Fi chipset.

Bob: For Wi Fi markets, we continue to rollout new technologies and solutions, we are migrating our newest and most advanced <unk> technology across our Wi Fi portfolio, we launched six gigahertz Wi Fi seven filters using our next generation ball and we will soon launch Wi Fi seven iphones that combine.

Connected home applications, we began sampling our next generation matter SOC, and we secured a design win with a leading network operator in the U.S. to supply our BLE ZIGB SOC to remote controls for home gateways.

Bob: Our next generation bar with our switch and LMA content in a single placement.

Bob: We also ramped our newest Wi Fi seven long non linear films for a tier one network operator in the U S and we sampled next generation high efficiency Wi Fi seven firms.

And for sensing touch sensors, we expanded our engagements in track pads and other consumer applications.

In ACG, Corvo is unique in our opportunity to drive growth across major smartphone OEMs. Our largest opportunity remains dollar content gains at our largest customer.

Bob: <unk> with a leading mobile Wi Fi chipset.

Bob: Connected home applications, we began sampling our next generation matter SFC and we secured a design win with a leading network operator in the U S to supply our BLE Zigbee Soc to remote controls for home gateways.

Robert Bruggeworth: Connected home applications, we began sampling our Next Generation Matter SoC, and we secured a design win with a leading network operator in the U.S. to supply our BLE ZigBee SoC to remote controls for home gateways. And Force Sensing Touch Sensors, we expanded our engagements in trackpads and other consumer applications. In ACG, Qorvo is unique in our opportunity to drive growth across major smartphone OEMs. Our largest opportunity remains dollar content gains at our largest customer.

We have clearly invested a growthist account to represent a larger percentage of Corvo's revenue, and our continuing investments today reflect our confidence in our multi-year growth opportunity.

Within the Android ecosystem, mass market smartphones are set to transition to 5G through the decade. We are the primary RF supplier to the Android ecosystem and our strong roadmap and multi-year collaboration positions us to benefit as the Android ecosystem continues to transition to 5G.

Bob: And <unk> touch sensors, we expanded our engagements and track pads and other consumer applications.

Bob: And ACG Corvo is unique and our opportunity to drive growth across major smartphone Oems our largest opportunity remains dollar content gains at our largest customer.

During the quarter, Corvo supported the Galaxy S-24 launch with a low-band, mid-high-band, ultra-high-band, secondary transmit and receive, tuning, Wi-Fi, and ultra-W-band solutions.

Robert Bruggeworth: We have clearly invested to grow this account to represent a larger percentage of Qorvo's revenue, and our continuing investments today reflect our confidence in our multi-year growth opportunity. Within the Android ecosystem, mass-market smartphones are set to transition to 5G through the decade.

Bob: We have clearly invested to grow this account to represent a larger percentage of <unk> revenue and our continuing investments to date reflect our confidence in our multi year growth opportunity.

Bob: Within the Android ecosystem mass market smartphones are set to transition to <unk> through the decade, where are the primary RF supplier to the Android ecosystem, and our strong roadmap and multi year collaboration positions us to benefit as the Android ecosystem continues to transition to <unk>.

This highlights the strength of our portfolio and the breadth of our opportunity at Samsung, and we are pleased to support them across their flagship and mass market 5G smartphones.

Robert Bruggeworth: We are the primary RF supplier to the Android ecosystem, and our strong roadmap and multi-year collaboration positions us to benefit as the Android ecosystem continues to transition to 5G. During the quarter, Qorvo supported the Galaxy S24 launch with a low-band, mid-high-band, ultra-high-band, secondary transmit and receive, tuning, Wi-Fi, and ultra-wideband solution. This highlights the strength of our portfolio and the breadth of our opportunity at Samsung, and we are pleased to support them across their flagship and mass-market 5G smartphones.

For mass market Android 5G smartphones, we see strong pull for our recently launched, low, mid, high band pad.

Bob: During the quarter equivalent supported the Galaxy S 24 launch with our low band mid high band Ultra high band secondary transmit and receive tuning Wi Fi and ultra wide band solutions.

Corvo's LMH solution reduces surface area by 40% by combining in one placement, the low mid and high bend main path content traditionally offered in two placements.

We have expanded customer engagements to include the top four China-based 5G Android OEMs and volume shipments are set to commence this calendar year.

Bob: This highlights the strength of our portfolio and the breath of our opportunity with Samsung and we are pleased to support them across their flagship and mass market <unk> smartphones.

To broadly support all customers with best-in-class portfolios, we continue to advance new technologies across our products.

Robert Bruggeworth: For mass market Android 5G smartphones, we see strong pull for our recently launched low, mid, and high band paths. Qorvo's LMH solution reduces surface area by 40% by combining in one placement the low, mid, and high bend main path content traditionally offered in two placements.

Bob: For mass market Android five <unk> smartphones, we see strong pull for our recently launched low mid high band pad.

We are proliferating our next generation VAA technology across high-performance-performance-discreet and integrated solutions. We also recently released a next-generation LRT SAW process to complement our advanced BAW and SAW processes in select bands.

Bob: <unk> LMA solution reduces surface area by 40% by combining and one placement the low mid and high band Manpack content traditionally offered in two placements we've expanded.

Robert Bruggeworth: We've expanded customer engagement to include the top four China-based 5G Android OEMs, and volume shipments are set to commence this calendar year. To broadly support all customers with best-in-class portfolios, we continue to advance new technologies across our products. For example, we are proliferating our next-generation ball technology across high-performance discrete and integrated solutions.

Bob: <unk> customer engagement to include the top four China based <unk>, Android Oems and volume shipments are set to commence this calendar year.

The first module combining our LOT saw and ball filters will support a flagship launch later this summer.

Bob: So broadly support all customers with best in class portfolios, we continue to advance new technologies across our products.

In summary, the increasing emphasis on throughput, efficiency, and size in Corvo's markets is growing, the content opportunity, and demand for better performing, smaller, more highly integrated RF and power solutions.

Bob: We are proliferating, our next generation <unk> technology across high performance discrete and integrated solutions. We also recently released in next generation LRT salt process to complement our events ball and saw processes and select Vance.

Robert Bruggeworth: We also recently released a next-generation LRT saw process to complement our advanced ball and saw processes in select bands. The first module combining our LRT saw and valve filters will support a flagship launch later this summer. In summary, the increasing emphasis on throughput, efficiency, and size in Qorvo's markets is growing the content opportunity and demand for better performing, smaller, more highly integrated RF and power solutions. For customers in automotive, consumer, defense and aerospace, industrial, and enterprise, and broad markets, we're leveraging core strengths, including our manufacturing scale, system-level expertise, and advanced packaging capabilities to expand our RF and power product portfolios and deliver outsized growth

For customers in automotive, consumer, defense and aerospace, industrial and enterprise, and broad markets, we are leveraging core strengths, including our manufacturing scale, system level expertise,

Bob: First module, combining our LLP saw and <unk> filters will support a flagship launch later this summer.

and advanced packaging capabilities to expand our RF and power product portfolios and deliver outsized growth.

Bob: In summary.

Bob: Increasing emphasis on throughput efficiency and size and core growth markets is growing the content opportunity and demand for better performing smaller more highly integrated RF and power solutions.

For customers in the mobile market, we are addressing new product categories and expanding our SAM across tiers, from the flagship tier to the mass market 5G tier, to capture a growing percentage of the total opportunity. And with that, I'll hand it off the grant.

Bob: For customers in automotive consumer defense, and aerospace industrial and enterprise.

Bob: And broad markets, we are leveraging core strengths, including our manufacturing scale system level expertise and advanced packaging capabilities to expand our RF and power product portfolio and deliver outsized growth.

Thanks Bob and good afternoon everyone. Revenue for the quarter was $941 million. Non-gap gross margin was 42.5 percent and non-gap diluted EPS was $1.39, all exceeding the midpoint of our guidance range.

Robert Bruggeworth: For customers in the mobile market, we're addressing new product categories and expanding our SAM across tiers, from the flagship tier to the mass market 5G tier, to capture a growing percentage of the total opportunity. And with that, I'll hand it off to Grant.

Bob: For customers in the mobile market, we are addressing new product categories, and expanding our Sam across tiers from flagship tier to the mass market <unk> to capture a growing percentage of the total opportunity.

Revenue for fiscal Q4 increased approximately 49% year over year.

As communicated last quarter, improving customer demand in HPA supported a return to year-over-year growth. HPA revenue grew 24% year-over-year in the March quarter, driven by a stronger-than-anticipated performance in our defense business.

Speaker Change: And with that I'll hand, it off the ground.

Grant A. Brown: Thanks, Bob, and good afternoon, everyone. Revenue for the quarter was $941 million. Non-GAAP gross margin was 42.5%, and non-GAAP diluted EPS was $1.39, all exceeding the midpoint of our guidance range. Revenue for fiscal Q4 increased approximately 49% year-over-year. As communicated last quarter, improving customer demand in HPA supported a return to year-over-year growth. HPA revenue grew 24% year-over-year in the March quarter, driven by a stronger-than-anticipated performance in our dispensary. In ACG, revenue grew 56% year-over-year in the March quarter, supported by strong content on multiple large customer platforms.

Bob: Thanks, Bob and good afternoon, everyone.

Speaker Change: Revenue for the quarter was $941 million non-GAAP gross margin was 42, 5% and non-GAAP diluted EPS was $1 39.

In ACG, revenue grew 56% year over year in the March quarter, supported by strong content on multiple large customer platforms.

Speaker Change: All exceeding the midpoint of our guidance range.

In CSG, we delivered 50% year-over-year growth and our fourth consecutive quarter of sequential growth due to strengthen Wi-Fi, automotive, and other areas.

Speaker Change: Revenue for fiscal Q4 increased approximately 49% year over year as communicated last quarter, improving customer demand and HPA supported a return to year over year growth.

Consistent with our prior comments, non-gap gross margin of 42.5% for the March quarter reflected a higher percentage of Android 5G mass market product which was manufactured during periods of lower factory utilization.

Bob: <unk> revenue grew 24% year over year in the March quarter, driven by a stronger than anticipated performance in our defense business.

Bob: And ACG revenue grew 56% year over year in the March quarter supported by strong content on multiple large customer platforms and CST, we delivered 50% year over year growth and our fourth consecutive quarter of sequential growth due to strength in Wi Fi automotive and other areas.

Non-gap operating expenses in the quarter were $253 million. We continue to invest in new product development to drive multi-year growth across our businesses.

Grant A. Brown: In CSG, we delivered 50% year-over-year growth and our fourth consecutive quarter of sequential growth due to strength in Wi-Fi, automotive, and other areas. Consistent with our prior comments, non-GAAP gross margin of 42.5% for the March quarter reflected a higher percentage of Android 5G mass market product, which was manufactured during periods of lower factory utilization. Non-GAAP operating expenses in the quarter were $253 million.

Alongside our growth-oriented investments, we're investing to upgrade the core systems and processes we use to run our business. This multi-year initiative is intended to extend our competitive advantage and enable us to scale growth in diverse dynamic markets.

Bob: Consistent with our prior comments non-GAAP gross margin of 42, 5% for the March quarter reflected a higher percentage of Android five <unk> mass market product, which was manufactured during periods of lower factory utilization.

Our goal is to increase operational efficiency, unlock internal data to leverage new software capabilities, including AI, and support our broad-based growth objectives.

Bob: non-GAAP operating expenses in the quarter were $253 million, we continue to invest in new product development to drive multi year growth across our businesses.

Grant A. Brown: We continue to invest in new product development to drive multi-year growth across our businesses. Additionally, alongside our growth-oriented investments, we're investing to upgrade the core systems and processes we use to run our business. This multi-year initiative is intended to extend our competitive advantage and enable us to scale growth in diverse, dynamic markets. Our goal is to increase operational efficiency, unlock internal data to leverage new software capabilities, including AI, and support our broad-based growth objectives.

We expect this initiative will span approximately three years and we will present the spend in other operating expense on our non-gap P&L. As we progress through the project, we will provide related expense guidance on a quarterly basis.

Bob: Alongside our growth oriented investments, we're investing to upgrade the core systems and processes, we use to run our business. This multiyear initiative is intended to extend our competitive advantage and enable us to scale growth and diverse dynamic markets.

Turning to the cash flow statement, in fiscal Q4, we generated operating cash flow of $202 million, and capital expenditures for the period were $33 million.

Bob: Our goal is to increase operational efficiency unlock internal data to leverage new software capabilities, including AI and support our broad based growth objectives.

Notable cash flow items that occurred during the quarter included the closing of the Anoki Wave transaction recorded in investing cash flows and payment of the termination fee associated with a long-term silicon supply agreement recorded in operating cash flows.

Grant A. Brown: We expect this initiative will span approximately three years, and we will present the spend in other operating expenses on our non-GAAP P&L. As we progress through the project, we will provide related expense guidance on a quarterly basis. Turning to the cash flow statement, in fiscal Q4, we generated operating cash flow of $202 million, and capital expenditures for the period were $33 million. Notable cash flow items that occurred during the quarter included the closing of the EnokiWave transaction recorded in investing cash flows and payment of the termination fee associated with a long-term silicon supply agreement recorded in operating cash flows. We repurchased approximately $100 million of stock at $112 per share in the quarter, which brought our total for fiscal 24 to $400 million at an average price of $101 per share.

Bob: We expect this initiative will span approximately three years and we will present the spend in other operating expense on our non-GAAP P&L.

Bob: As we progress through the project, we will provide related expense guidance on a quarterly basis.

We repurchased approximately $100 million of stock at $112 per share in the quarter, which brought our total for fiscal 24 to $400 million at an average price of $101 per share.

Bob: Turning to the cash flow statement in fiscal Q4, we generated operating cash flow of $202 million and.

Bob: <unk> expenditures for the period were $33 million.

The rate and pace of our share repurchases considers several key factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations.

Bob: Notable cash flow items that occurred during the quarter included the closing of the <unk> transaction recorded in investing cash flows and payment of the termination fee associated with a long term silicon supply agreement recorded in operating cash flows.

This approach ensures that our capital allocation strategy balances future growth with the return of capital and aligns with our underlying goal of delivering long-term shareholder value.

Bob: We repurchased approximately $100 million of stock at $112 per share in the quarter, which brought our total for fiscal 'twenty four to 400 million at an average price of $101 per share the rate and pace of our share repurchases consider several key factors, including our long term financial out.

On the balance sheet, as of quarter end, we had approximately $1.5 billion of long-term debt.

Grant A. Brown: The rate and pace of our share repurchases considers several key factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations. This approach ensures that our capital allocation strategy balances future growth with the return of capital and aligns with our underlying goal of delivering long-term shareholder value. On the balance sheet, as of quarter end, we had approximately one and a half billion dollars of long-term debt and over $1 billion of cash and equipment.

and over $1 billion of cash and equivalents.

Regarding balance sheet presentation, the 2024 notes are classified as current and will mature in December . Subject to changes in the interest rate environment and other factors, we currently expect to retire these short-term notes later this year.

Bob: Look free cash flow debt maturities alternative uses of cash and other relevant strategic considerations.

Bob: This approach ensures that our capital allocation strategy balancing future growth with the return of capital and aligns with our underlying goal of delivering long term shareholder value.

In line with the expectations shared during our previous earnings call, we successfully reduced our net inventory balance over the period. We ended the quarter with a net inventory balance of $711 million, a sequential decrease of $16 million.

Bob: On the balance sheet as of quarter end, we had approximately $1 5 billion of long term debt.

Bob: And over $1 billion of cash and equivalents.

Grant A. Brown: Regarding balance sheet presentation, the 2024 notes are classified as current and will mature in December. Subject to changes in the interest rate environment and other factors, we currently expect to retire these short-term notes later this year. In line with the expectations shared during our previous earnings call, we successfully reduced our net inventory balance over the period. We ended the quarter with a net inventory balance of $711 million, a sequential decrease of $16 million.

Bob: Regarding balance sheet presentation for 2024 notes are classified as current and will mature in December.

For the full year, revenue was $3.8 billion. Non-Gap gross margin was 44.5%, and Nongap EPS was $6.21.

Bob: Subject to changes in the interest rate environment and other factors. We currently expect to retire. These short term notes later this year.

In fiscal 24, we had 2, 10% customers. Our largest customer represented 46% of revenue, up from 37% in fiscal 23. And our second largest customer was consistent year over year at 12% of revenue.

Bob: In line with the expectations shared during our previous earnings call. We successfully reduced our net inventory balance over the period. We ended the quarter with a net inventory balance of $711 million, a sequential decrease of $16 million.

Turning to our current quarter outlook,

We expect revenue of approximately $850 million plus or minus $25 million,

Grant A. Brown: For the full year, revenue was $3.8 billion, non-GAAP gross margin was 44.5%, and non-GAAP EPS was $6.21. In Fiscal 24, we had two 10% customers. Our largest customer represented 46% of revenue, up from 37% in Fiscal 23. And our second largest customer was consistent year over year at 12% of revenue. Turning to our current quarter outlook, we expect revenue of approximately $850 million, plus or minus $25 million, non-GAAP gross margin between 40 and 41 percent, and non-GAAP diluted EPS between 60 cents and 80 cents.

Bob: For the full year revenue was $3 8 billion non.

Bob: non-GAAP gross margin was 44, 5% and non-GAAP EPS was $6 21.

non-gap gross margin between 40 and 41 percent and non-gap diluted EPS between 60 cents and 80 cents.

Bob: In fiscal 'twenty, four we had 210% customers our largest customer represented 46% of revenue up from 37% in fiscal 'twenty, three and our second largest customer was consistent year over year at 12% of revenue.

Relative to March, we expect June gross margins reflect a higher percentage of Android 5G mass market product that was manufactured during periods of lower utilization.

As these higher cost inventories sell through, it paves the way for future gross margins that reflect increasing levels of utilization.

Bob: Turning to our current quarter outlook, we expect revenue of approximately $850 million, plus or minus $25 million non-GAAP gross margin between 40% and 41% and non-GAAP diluted EPS between 60 and 80.

We expect gross margin in the June quarter to be the low point for the year and improve substantially in the September quarter. We continue to expect full-year gross margin to improve modestly year-on-year.

Grant A. Brown: Relative to March, we expect June gross margins to reflect a higher percentage of Android 5G mass market product that was manufactured during periods of lower utilization. As these higher cost inventories sell through, it paves the way for future gross margins that reflect increasing levels of utilization.

Bob: Relative to March we expect June gross margins reflect a higher percentage of Android <unk> mass market product. It was manufactured during periods of lower utilization.

We project non-gap operating expenses in the June quarter will be approximately $260 million with variability related to the timing of program development spend and other factors.

Bob: As these higher cost inventory sell through it paved the way for future gross margins that reflect increasing levels of utilization.

Our OPX guidance for this quarter includes approximately $5 million of other operating expense related to modernizing our core systems and business processes.

Grant A. Brown: We expect gross margin in the June quarter to be the low point for the year and improve substantially in the September quarter. We continue to expect full-year gross margin to improve modestly year on year. We project non-GAAP operating expenses in the June quarter will be approximately $260 million, with variability related to the timing of program development spend and other factors.

Bob: We expect gross margin in the June quarter to be the low point for the year and improved substantially in the September quarter. We continue to expect full year gross margin to improve modestly year on year.

During fiscal 25, we expect to record approximately 40 million of expense related to this project with quarterly variability related to the achievement of progress-based milestones.

Bob: We project non-GAAP operating expenses in the June quarter will be approximately $260 million with variability related to the timing of program development spend and other factors.

Below the operating income line, non-operating expense is expected to be between $6 and $10 million, reflecting interest paid on our fixed rate debt offset by interest income earned on our cash balances, FX gains or losses, along with other items.

Grant A. Brown: Our OPEX guidance for this quarter includes approximately $5 million of other operating expense related to modernizing our core systems and business processes. During fiscal 25, we expect to record approximately $40 million of expenses related to this project with quarterly variability related to the achievement of progress-based milestones. Below the operating income line, non-operating expense is expected to be between $6 and $10 million, reflecting interest paid on our fixed-rate debt offset by interest income earned on our cash balances, FX gains or losses, along with other items. Our non-GAAP tax rate for fiscal 25 is expected to be within a range of 10 to 12 percent.

Bob: Our opex guidance for this quarter includes approximately $5 million of other operating expense related to modernizing our core systems and business processes.

Our non-gap tax rate for fiscal 25 is expected to be within a range of 10 to 12%. We project this will increase over time due to changes in tax legislation such as the global minimum tax and other factors.

Bob: During fiscal 'twenty five we expect to record approximately $40 million of expense related to this project with quarterly variability related to the achievement of progress based milestones.

Regarding the divestiture of our Beijing and DeJot assembly and test facilities, we've made significant progress for achieving operational readiness and completing other work required to close the transactions.

Bob: Below the operating income line non operating expense is expected to be between six and $10 million, reflecting interest paid on our fixed rate debt offset by interest income earned on our cash balances FX gains or losses, along with other items.

This is a further step in our ongoing efforts to reduce capital intensity, and we continue to expect the transaction to close this quarter.

Bob: Our non-GAAP tax rate for fiscal 'twenty, five is expected to be within a range of 10% to 12%.

We are efficiently managing a complex supply chain, including internal factories that are critical differentiators for each of our operating segments.

Grant A. Brown: We project this will increase over time due to changes in tax legislation such as the global minimum tax and other factors. Regarding the divestiture of our Beijing and Shanghai assembly and test facilities, we've made significant progress in achieving operational readiness and completing other work required to close the transaction. This is a further step in our ongoing efforts to reduce capital intensity, and we continue to expect the transaction to close this quarter.

Bob: We project this will increase over time due to changes in tax legislation such as the global minimum tax and other factors.

And this will remain an ongoing focus. We'll leverage internal manufacturing where it uniquely differentiates our products and outsource production, where we maintain a strong network of Foundry and OSAT partners.

Bob: Regarding the divestiture of our Beijing, and <unk> Assembly and test facilities, we've made significant progress toward achieving operational readiness and completing other work required to close the transaction.

Corvo is well positioned to capitalize on multiple long-term growth drivers within each of our three operating segments. We're excited to share more during our upcoming Investor Day in June , and we look forward to your participation. At this time, please open the line for questions. Thank you.

Bob: This is a further step in our ongoing efforts to reduce capital intensity and we continue to expect the transaction to close this quarter.

Grant A. Brown: We are efficiently managing a complex supply chain, including internal factories that are critical differentiators for each of our operating segments, and this will remain an ongoing focus. We'll leverage internal manufacturing, where it uniquely differentiates our products, and outsourced production, where we maintain a strong network of foundry and OSAT partners.

Bob: We are efficiently managing a complex supply chain, including internal factories that are critical differentiators for each of our operating segments and this will remain an ongoing focus will leverage internal manufacturing, where it uniquely differentiates our products and outsource production, where we maintain a strong network of foundry and <unk> Parker.

We will now begin the question and answer session. To ask a question, you may press star than one on your telephone keypad. If you are using a speakerphone, please pick up the handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Bob: Yes.

Bob: <unk> is well positioned to capitalize on multiple long term growth drivers within each of our three operating segments. We're excited to share more during our upcoming Investor day in June and we look forward to your participation at this time. Please open the line for questions. Thank you.

We do ask that you please limit yourself to one question and one follow-up today.

At this time, we will pause momentarily to assemble our roster.

Operator: Qorvo is well-positioned to capitalize on multiple long-term growth drivers within each of our three operating segments. We're excited to share more during our upcoming Investor Day in June, and we look forward to your participation. At this time, please open the line for questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up the handset before pressing the key.

Your first question comes from Wood & Boy with Saffle.

Speaker Change: We will now begin the question and answer questions to ask a question you May Press Star then one on your telephone keypad.

Thank you very much.

I, Grant, I wanted to see if you can

Bob: If you are using a speakerphone, please pick up the hands of our customers.

You had some commentary in the press release on sort of the guidance and how to think about the guidance for June , but I was wondering if you could provide a little bit more detail on kind of what's going on with ACG and the defense after the strong quarter you saw in March, and if you could maybe just walk us through the moving parts in the three segments as we think about the guidance for the June quarter.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then T. We do ask that you please limit yourself to one question and one follow-up today. At this time, we will pause momentarily to assemble our roster. Your first question comes from Ruben Roy, Wixdot. Thank you very much.

Bob: Final question from Jeff practical trailing a question. Please press Star then.

Bob: We do ask that you see from your Fox to one question and one follow up.

Bob: At this time, we will pause momentarily to assemble over time.

Bob: Your first question comes from Robyn <unk> with stifle.

Sure, thanks for question, Rubin. I'll start off with the June quarter guide overall, and then we can get into the segments.

Robyn: Thank you very much.

Grant A. Brown: I, Grant, I wanted to see if you could. You had some commentary in the press release on sort of the guidance and how to think about the guidance for June, but I was wondering if you could provide a little bit more detail on kind of what's going on with ACG and the defense after the strong quarter you saw in March and if you could maybe just walk us through the moving parts in the three segments as we think about the guidance.

Robyn: Grant I wanted to see if you can.

The sequential decline in the June quarter revenue guidance primarily reflects the ramp patterns that are two largest customers at ACG. And then within HPA, the seasonal timing of large defense programs and a slower rollout of doxas.

Robyn: Had some commentary in the press release on sort of the guidance and how to think about the guidance for June but was wondering if you could provide a little bit more detail on kind of what's going on with ACG and.

Robyn: And in the defense after the strong quarter you saw in March and if you could maybe just walk us through the.

4.0 as we've talked about previously. ACG is expected to decline, just to break it down, ACG is expected to decline in the high single digits in June . HPA will decline in the low double digits, and CSG is expected to be approximately flat.

Robyn: The moving parts in the three segments as we think about the guidance for the June quarter.

Speaker Change: Sure. Thanks for the question Robyn I'll start off with the June quarter Guide overall, and then we can get into the <unk>.

Grant A. Brown: Sure, thanks for the question, Ruben. I'll start off with the June quarter guide overall, and then we can get into the segments. The sequential decline in the June quarter revenue guidance primarily reflects the ramp patterns that are our two largest customers at ACG and, then within HPA, the seasonal timing of large defense programs and a slower rollout of DOCSIS 4.0, as we've talked about previously. Just to break it down, ACG is expected to decline in the high single digits in June, HPA will decline in the low double digits, and CSG is expected to be approximately flat.

Speaker Change: Segments.

Speaker Change: The sequential decline in the June quarter revenue guidance, primarily reflects the ramp patterns at our two largest customers at ACG.

Looking back at ACG, we don't break out customer percentages by quarter, but I mentioned in my prepared remarks that our largest customer represented approximately 46% of total

Speaker Change: And then within HPA, the seasonal timing of large defense programs and a slower rollout of DOCSIS four <unk> as we've talked about previously.

fiscal 24 revenue, which was up from 37% in 23 and 33% in fiscal 22. So it follows that

Robyn: ACG is expected to decline just to break it down ACG is expected to decline in the high single digits in June HPA will decline in the low double digits and <unk> is expected to be approximately flat.

You know, those increases there increase our revenue exposure to the seasonal ramp patterns we have with our largest customers. And that's impacting the June quarter. Looking at HPA, it's a similar seasonal dynamic. We have successfully grown our revenue base in defense and aerospace, and this represents the largest percentage of HPA revenue and actually set a record in fiscal Q4.

Grant A. Brown: Looking back at ACG, we don't break out customer percentages by quarter, but I mentioned in my prepared remarks that our largest customer represented approximately 46% of total fiscal 24 revenue, which was up from 37% in 23 and 33% in fiscal 22. So it follows that those increases there increase our revenue exposure to the seasonal ramp patterns we have with our largest customers, and that's impacting the June quarter. Looking at HPA, it's a similar seasonal dynamic.

Robyn: Looking back at ACG, we don't breakout customer percentages by quarter, but I mentioned in my prepared remarks that our largest customer represented approximately 46% of total.

Robyn: Fiscal 'twenty, four revenue, which was up from 37% and 23% and 33% in fiscal 'twenty two so it follows that.

While we expect our DNA business to grow year on year in fiscal 25, program timing and seasonalities having an outsized impact on the sequential performance in June quarter, just given the relative size within HPA.

Robyn: Those increases there.

Robyn: Increase our revenue exposure to the seasonal ramp patterns, we have with our with our largest customers and thats impacting the June quarter.

You know, looking at gross margin, we expect a substantial improvement in September as we sell through all the high-cost inventory or the vast majority of it, I should say, in June , and we continue to expect full year fiscal 25 growth margin will improve modestly over

Robyn: Looking at HPA to similar seasonal dynamic we have successfully grown our revenue base in defense and aerospace and this represents the largest percentages of HPA revenue and actually set a record in fiscal Q4, while we expect our DNA business to grow year on year in fiscal 'twenty five program.

Grant A. Brown: We have successfully grown our revenue base in defense and aerospace, and this represents the largest percentage of HPA revenue and actually set a record in fiscal Q4. While we expect our DNA business to grow year on year in fiscal 25, program timing and seasonality are having an outsized impact on the sequential performance in the June quarter, just given the relative size within HPA. Looking at gross margin, we expect a substantial improvement in September as we sell through all the high-cost inventory, or the vast majority of it, I should say, in June, and we continue to expect full-year fiscal 25 gross margin to improve modestly over 24. That's great.

Twenty-four.

That's great. Thank you, Grant, for that detail. And I guess as a follow-up in the press release, also you talk about

Robyn: Timing and seasonality is having an outsized impact on the sequential performance in June quarter, just given the relative size within.

your view about modest growth, expecting modest growth, 25 over 24. And just wondering, I know you don't provide longer-term guidance in any meaningful detail. But...

Robyn: Within HPA.

Robyn: Looking at gross margin, we expect a substantial improvement in September as we sell through all of the high cost inventory or the vast majority of it I should say in June and we continue to expect full year fiscal 'twenty five gross margin will improve modestly over 2004.

You know, 90 days, you know, into the new year, has anything changed with the way you're thinking about? Because I think you said you were expecting, it would be reasonable to expect growth in fiscal 25 over 24 last quarter. So just wondering if there's been any changes in how you're viewing, you know, the growth or inventory levels or sell through demand would be helpful. Thank you.

Speaker Change: That's great. Thank you for that detail and I guess as a follow up.

Grant A. Brown: Thank you, Grant, for that detail. And I guess, as a follow-up, in the press release also, you talk about... Your view about modest growth, expecting modest growth 25 over 24, and just wondering, I know you don't provide longer-term guidance into the new year. Has anything changed with the way you're thinking about it, because I think you said you were expecting it would be reasonable to expect growth. 25 over 24 in the last quarter.

Speaker Change: In the press release also you talk about.

Speaker Change: Your view about modest growth seeing and expecting modest growth 25 over 24, and just wondering I know you don't provide longer term guidance.

Sure. No change to our view on inventory, channel inventory, especially within the Android area, looks relatively clear. I think June will be the last quarter will really be talking about the high-cost inventory and the utilization impact associated with that. So that's maybe one change that we haven't spoken to in the past as far as timing goes. In terms of fiscal 25 in general, it's a little early to provide any detailed quarterly guidance, but absent any macro-referral, related disruptions, we do expect to grow both revenue and gross margin modestly in fiscal 25 on a year-over-year full fiscal year basis. It's worth pointing out that given the timing of the content gains at our largest customer and the success

Speaker Change: Any meaningful detail, but.

Speaker Change: 90 days.

Speaker Change: And to the.

Speaker Change: Into the new year has anything changed with the way Youre thinking about because I think you said you were expecting it would be reasonable to expect growth in fiscal 'twenty five over 24 last quarter. So just wondering if theres been any changes in how you're viewing the growth of our inventory levels, our sell through demand would be helpful. Thank you.

Grant A. Brown: So just wondering if there's been any changes in how you view, you know, the growth or inventory levels or sell through demand. Sure. No change to our view on inventory. Channel inventory, especially within the Android area, looks relatively clear. I think June will be the last quarter we'll really be talking about the high-cost inventory and the monetization impact associated with that. So that's maybe one change that we haven't spoken to in the past as far as timing goes.

Speaker Change: Sure no change to our view on inventory channel inventory, especially within the Android area looks relatively clear I think June will be.

Speaker Change: Last quarter, we will we'll really be talking about the high cost inventory and the underutilization impact associated with that so that's <unk>.

the defense market, as I mentioned earlier, you know, our revenue seasonality will be more closely aligned to those annual ramp profiles. So that's clear in our Q1 guidance, but will also be included in our full fiscal year. In terms of the shape of revenue across fiscal 25, we do expect strong sequential growth in September , some modest sequential growth in December , and then that revenue profile will reflect, you know, the sequential growth in defense. That begins in September . And, even stronger in December . So we, you know, maybe slightly unlike fiscal 24, we'll have a bigger December than September is our, is our current expectation because of the strength there in defense.

Speaker Change: Maybe one change that we haven't spoken to in the past as far as timing goes in terms of fiscal 'twenty five in general it's a little early to provide any detailed quarterly guidance, but absent any macro related disruptions. We do expect to grow both revenue and gross margin modestly in fiscal 'twenty five on a year over year full fiscal year basis, it's worth pointing out.

Grant A. Brown: In terms of Fiscal 25 in general, it's a little early to provide any detailed quarterly guidance, but absent any macro-related disruptions, we do expect to grow both revenue and gross margin modestly in Fiscal 25 on a year-over-year, full fiscal year basis. It's worth pointing out that given the timing of the content gains at our largest customer and the success of the defense market, as I mentioned earlier, our revenue seasonality will be more closely aligned to those annual ramp profiles.

Speaker Change: That's a.

Speaker Change: Given the timing of the content gains at our largest customer and the success in the defense market as I mentioned earlier.

Speaker Change: Our revenue seasonality will be more closely aligned to those annual ramp profiles. So that's clear in our Q1 guidance, but we will also be.

On gross margins, we expect substantial improvement in September , as I mentioned, roughly flattish in December , and then down slightly in March. So again, a similar seasonal profile. You know, overall for the year probably implied a full fiscal year gross margin for fiscal 25 in the mid-40s.

Speaker Change: Included in our full fiscal year.

Grant A. Brown: So that's clear in our Q1 guidance but will also be included in our full fiscal year. In terms of the shape of revenue across Fiscal 25, we do expect strong sequential growth in September, some modest sequential growth in December, and then that revenue profile will reflect the sequential growth in defense. That begins in September and is even stronger in December.

Speaker Change: In terms of the shape of revenue across fiscal 'twenty five.

Speaker Change: Do expect strong sequential growth in September some modest sequential growth in December and and then that revenue profile will reflect the sequential growth in defense.

Speaker Change: That begins in September and is even stronger in December so.

Grant A. Brown: So maybe slightly, unlike Fiscal 24, we'll have a bigger December than September is our current expectation because of the strength there in defense. On gross margins, we expect substantial improvement in September, as I mentioned, roughly flat-ish in December, and then down slightly in March. So again, a similar seasonal profile. Overall, for the year, it probably implied a full fiscal year gross margin for Fiscal 25 in the mid-40s. So our next question comes from Karl Ackerman with BNP Parrot.

Your next question comes from Carl Ackerman with the NP Paragher.

Speaker Change: Slightly unlike fiscal 'twenty four we will have a bigger December than September is our is our current expectation because of the strength there and defense on.

Thank you.

Speaker Change: On gross margins, we expect substantial improvement in September as I mentioned roughly flattish in December.

Great, I want to fall up to the gross margin question that you just spoke about. I guess is the lower gross margin guide...

Speaker Change: And then down slightly in March so again, a similar seasonal profile.

driven by seasonally stronger Android sales in June . And then while Gross Morgan's increased in September ,

Speaker Change: Overall for the year probably.

Does that suggest Android is weaker in the second half? I asked because while your peer this evening said that China Android rose 40% year-over-year in the first half, there have been some conflicting data points on Android demand the second half. So if you could clarify that, that would be helpful.

Speaker Change: Implied a full fiscal year gross margin for fiscal 'twenty five in the mid <unk>.

Speaker Change: Your next question comes from Karl Ackerman with lumpy path.

Karl Ackerman: Thank you.

Yeah, sure. So in terms of gross margin, I think in any given quarter, it's heavily dependent on mix, as you're pointing out, right? There's variability by end market and product category. But as I look at the manufacturing costs associated with what we're selling, any underutilization impact is going to be impacted by when the products were manufactured and where they're manufactured. So, you know, for Corgo, when matters because the utilization rate at the time it's produced and the wear matters because

Grant A. Brown: Grant, I want to follow up on the gross mortgage. When I get to the lower gross margin guide, https://www.youtube.com.uk, does that suggest Android is weaker in the second half? I ask because while your peer this evening said that Chinese Android rose 40% year-over-year in the first half, there have been some conflicting data points on Android in the second half. Yeah, sure.

Karl Ackerman: Great and one follow up to the gross margin question that you spoke about I get to the lower gross margin guide.

Karl Ackerman: Driven by seasonally stronger Android sales in June and then well gross margins increase in September.

Karl Ackerman: Does that suggest Android is weaker in the second half.

Karl Ackerman: I ask because while your peer this evening Sydney, China Android.

Karl Ackerman: Rose, 40% year over year in the first half.

of where the products that contain higher content from external foundries or OSAPs are less impacted by our internal loadings. So for June , our gross margin guidance really reflects, I guess, primarily three things. First, you know, we're actively selling through the higher cost inventories burdened by utilization, and this is somewhat of an artifact of

Karl Ackerman: Conflicting data points on Android in the second half. So if you could clarify that that'd be helpful.

Grant A. Brown: So, in terms of gross margin, I think, you know, in any given quarter, it's heavily dependent on mix, as you're pointing out, right? There's variability by end market and product category. But as I look at the manufacturing costs associated with what we're selling, any underutilization impact is going to be impacted by when the products are manufactured and where they're manufactured. So, you know, for Qorvo, when matters because the utilization rate at the time it's produced, and where matters because where the products that contain higher content from external foundries or OSAPs are less impacted by our internal loadings.

Speaker Change: Yes sure so.

Karl Ackerman: In terms of gross margin I think in any given quarter, it's heavily dependent on mix as youre pointing out right theres variability by end market and product category, but but as I look at the manufacturing costs associated with what we are selling any underutilization impact is going to be impacted by when the products are manufactured and where they are manufactured so FERC cargo when matters because the.

passed under utilization. The second is that we see the typical seasonal decline our largest customers, as I mentioned, and those products contain higher levels of external content. And then third, we expect a seasonal decline in the defense programs, like most of our high-mix, lower-volume businesses. These are accreted to gross margins. So it's heavily mixed dependent. I pointed out June-al-marked-belo point as we actively sell through that remaining high-cost inventory. And again, that really reflects the inefficiency. These caused by those underutilized fabs that were whipsod by a massive inventory correction.

Karl Ackerman: Utilization rate at the time, it's produced in the aware matters because of where the products that contain higher content from external foundries or OS apps.

Karl Ackerman: Are less impacted by our internal loadings. So for June our gross margin guidance really reflects I guess, primarily three things first we're actively selling through the higher cost inventories burdened by under utilization and this is somewhat of an artifact of past underutilization.

Grant A. Brown: So, for June, our gross margin guidance really reflects, I guess, primarily three things. First, you know, we're actively selling through the higher-cost inventories burdened by underutilization. And this is somewhat of an artifact of past underutilization.

Karl Ackerman: The second is that we see that typical seasonal decline in our largest customer as I mentioned and those products contain higher levels of external content and then third we expect a seasonal decline in the defense programs like most of our high mix lower volume businesses. These are accretive to gross margin. So it is heavily mix dependent.

Grant A. Brown: The second is that we see that typical seasonal decline in our largest customer, as I mentioned, and those products contain higher levels of external content. And then third, we expect a seasonal decline in the defense programs. Like most of our high mix, lower volume businesses, these are accreted to gross margin. So, it's heavily mix dependent.

We believe we're well past the worst of those utilization levels and as we sell through the material, it'll paves away for higher gross margins I commented on for the full fiscal year color I talked about earlier. For September , if we pivot to that, you know, we expect gross margin to improve substantially as three headwinds reverse. The seasonal ramp will reflect more external content.

Grant A. Brown: I pointed out June will mark the low point as we actively sell through that remaining high-cost inventory. And again, that really reflects the inefficiencies caused by those underutilized fabs that were whipsawed by a massive inventory correction. We believe we're well past the worst of those utilization levels.

Karl Ackerman: Hinted out June will mark the low point as we actively sell through that that remaining high cost inventory.

The defense revenues expected to grow sequentially and the underutilization impact should fall to less than or around 100 basis points versus the call it 300 basis points that we experienced last quarter.

Karl Ackerman: And again that really reflects the inefficiencies caused by by those underutilized fabs that were whipsawed by a massive inventory correction. We believe we're well past the worst of those utilization levels and as we sell through the material. It will pave the way for higher gross margins I commented on for the full fiscal year color I I talked about earlier for September.

Yep, very clear. If I'm just speak a quick one, and you mentioned about a recovery and defense,

Grant A. Brown: And as we sell through the material, it'll pave the way for higher gross margins I commented on for the full fiscal year color I talked about earlier. For September, you know, if we pivot to that, we expect gross margin to improve substantially as three headwinds reverse. The seasonal ramp will reflect more external content. The defense revenue is expected to grow sequentially, and the underutilization impact should fall to less than or around 100 basis points versus the, call it 300 basis points that we experienced last quarter. Yep, very clear.

I was curious.

Karl Ackerman: <unk>.

Your thoughts on Cylton Carbaud did not hear that any comments in a prepared script. I know that the industrial market is going through a downturn and

Karl Ackerman: If we pivot to that we expect gross margin to improve substantially as it has three headwinds reverse the seasonal ramp will reflect more external content.

But any thoughts on recovery of the Cylton Carbide business or whether the macro has influenced your own success in Ciline Carbide, whether it's in industrial and or defense. Thank you.

Karl Ackerman: The defense revenues expected to grow sequentially in the Underutilization impact should fall to less than or around 100 basis points versus the call. It 300 basis points that we experienced last quarter.

Hey Carl, this is Dave. I can take that one. So, Bob, you had commented on some of this, but we've had some good success there in data centers.

Grant A. Brown: If I may just speak a quick one. You mentioned a recovery in defense. I was curious. [inaudible] But any thoughts on the recovery of the steel and carbide business or whether the macro has influenced your own? Hey Karl, this is Dave. I can take that one.

Speaker Change: Yes, very clear if I'm going to sneak a quick one you've mentioned about recovery in defense.

and that part of the market actually looks quite good. We've talked in the past too about some of our success we've had in areas like solar that's being heavily impacted by the interest rate environment.

Speaker Change: I was curious your thoughts on Silicon carbide is not here that any comments in your prepared script I know that the industrial market is going through a downturn.

Speaker Change: But any thoughts on a recovery of the Chilean carbide business or whether the macro hedge influence your own success until the carve out whether it's in industrial <unk> defense. Thank you.

And so that market is extremely soft right now. So it's kind of a mixed bag when you look at our silicon carbide business. You're still quite a small business, so we're growing into new markets.

David Fullwood: So Bobby commented on some of this, but we've had some good success there in data centers. And that part of the market actually looks quite good. We've talked in the past too about some of our success in areas like solar, which is being heavily impacted by the interest rate environment. And so that market is extremely soft right now.

Speaker Change: Hey, Carl this is Dave I can take that one.

And so there's lots of opportunities there. The sales funnel is growing and strong. But the end markets are really dependent on some of the interest rate environment that we're experiencing.

Dave: So Bob you had commented on some of this but we've had some good success there in data centers and that part of the market actually looks quite good.

Dave: We've talked in the past to about.

Dave: Some of our success, we've had in areas like solar that's being heavily impacted by the interest rate environment and so that market is extremely soft right. Now so it's kind of a mixed bag. When you look at our silicon carbide business.

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

I'm gonnae.

David Fullwood: So it's kind of a mixed bag when you look at our silicon carbide business. You know, it's still quite a small business, so we're growing into new markets. And so there are lots of opportunities there.

Ed, are you there? Yep, sorry about that, guys. Couple questions if I could.

Dave: So quite a small business that we're growing into new markets and so there is lots of opportunities there in the sales funnel is growing and strong.

David Fullwood: The sales funnel is growing and strong, but the end markets are really dependent on some of the interest rates. Your next question comes from Edward Snyder with Charter Equity. Are you there?

Last quarter we had the discussions about content growth and strength in the second half. I know you haven't guided that to

Speaker Change: But the end markets are really dependent on some.

this quarter at all. I just want to get an update if possible.

Speaker Change: Some of the interest rate environment that we're experiencing.

Now that you've had a chance, most of those wins have been awarded and you're probably working on qualifying it. Any alteration at all in terms of how strong you think will be in the second half in terms of content or revenue growth without guiding and just trying to get a feel for if anything's changed?

Speaker Change: Your next question comes from Edward Snyder with charter equity research.

Edward Francis Snyder: Patterns there.

Edward Francis Snyder: Yep, sorry about that guys. A couple questions, if I could. Last quarter we had some discussions about content growth and strength in the second half. I know you haven't guided that to this quarter at all, but I just want an update, if possible. Now that you've had a chance, most of those wins have been awarded, and you're probably working on qualifying them.

Edward Francis Snyder: Sorry about that guys couple of questions if I could.

Hi Ed, it's Bob. Thanks for the question. And we're very confident in our outlook with our largest customer. We're confident, as I said last time in gaining share this year and still very confident in our outlook for, again, FY25, raining share, FY26, gaining share growing revenue. Still feel real good about both of those.

Edward Francis Snyder: Last quarter.

Edward Francis Snyder: We have discussions about content growth and strength in the second half I know you haven't guided that.

Edward Francis Snyder: This quarter at all I, just wanted to get an update if possible.

Edward Francis Snyder: Now that you've had a chance most of those wins have been awarded and you're probably working on call for qualifying any alteration at all in terms of how strong you think you'll be in the second half in terms of content.

Good. And then you close the ink wave deal, and there are most folks, if you look at the product line, it's pretty much a carbon copy of everything you need for a millimeter wave to a mobile platform.

Edward Francis Snyder: Any alteration at all in terms of how strong you think we'll be in the second half in terms of content or revenue growth? Without guidance, I'm just trying to get a feel for if anything's changed. Hi, Ed. It's Bob.

Speaker Change: Our revenue growth without guiding I'm, just trying to get a feel for if anything's changed.

Robert Bruggeworth: Thanks for the question. And we're very confident in our outlook with our largest customer. We're confident, as I said last time, in gaining share this year and still very confident in our outlook for, again, FY25, reigning share, FY26, gaining share, growing revenue. Still feel real good about both of those.

Speaker Change: Hi, Ed it's Bob Thanks for the question and we're very confident in our outlook with our largest customer.

And there's been some news of recently that there seemed to be a win with that. My impression was when that was first –

Bob: We're confident as I said last time and gaining share this year still very confident in our outlook for FY.

first announced that it was going to be an infrastructure play. Does it have a mobile play to it and how confident you are that this is going to get any traction given how weak, the only way, it has been in a mobile business for a while?

Bob: 425 range share FY 'twenty, six gaining share growing revenue still feel real good about both of those.

Robert Bruggeworth: And then you close the InkWave deal, and most folks, if you look at the product line, it's pretty much a carbon copy of everything you'd need for a millimeter wave to a mobile platform. And there's been some news recently that there seems to be a win with that. My impression was when that was first announced... First announced that it was going to be an infrastructure play. Does it have a mobile play to it?

Bob: And then you close the you closed the <unk> deal and.

Thanks, Ed. Good opportunity to clear that up. When we made the acquisition, our focus was actually on the fence.

Bob: The most important when you look at the product line, it's pretty much a carbon copy that you'd need for millimeter wave to a mobile platform.

The infrastructure market is pretty volatile, but we still think there's a play there, but it's primarily on the defense side. We don't have any plans at this time to bring it into the mobile part of our business.

Bob: And Theres been some news of recently.

Bob: Okay.

Speaker Change: When was that.

Speaker Change: My impression was when that was first.

Speaker Change: First announced that it was going to be an infrastructure play does it have a Google play to it and how confident you are that this is going to gain any traction given how weak normal way. It has been the mobile business for a while.

Your next question comes from Srini Pajuri with Raymond J.

Robert Bruggeworth: And how confident are you that it's going to get any traction, given how weak Nomuweb has been in the mobile business for a while? Thanks, Ed. Good opportunity to clear that up. When we made the acquisition, our focus was actually on defense. The infrastructure market is pretty volatile, but we still think there's a place for it, but it's primarily on the defense side. We don't have any plans at this time to bring it into the mobile part of our business. Your next question comes from Srinivas Pajjuri with Raymond J. Pardon me, your next question comes from Chris Caso with Wolf 3. Yes, hi.

Pardon me, your next question comes from Chris Caso with Wolfram Research.

Speaker Change: Thanks, Ed and good opportunity to clear that up when we made the acquisition our focus was actually on defense.

Yes, hi. As the first question, I just wanted to clarify a comment that you made. You talked about revenue and gross margin up in fiscal 25, but you said modestly, and I just wanted to make sure that was that modest comment meant for revenue and gross margin up modestly or just gross margin?

Speaker Change: The infrastructure market is pretty volatile, but we still think theres a play there, but it's primarily on the defense side. We don't have any plans at this time to bring it into the mobile phone business mobile part of our business.

Speaker Change: Your next question comes from Tony <unk> with Raymond James.

Thanks for the question, Christ. It was for both.

Speaker Change: Pardon me. Your next question comes from Chris Caso with Wolfe Research.

Okay.

So both revenue and so okay, so that's clear. As a follow-up on that,

Christopher Caso: Yes, Hi, the first question I just wanted to clarify.

Christopher Caso: The first question, I just wanted to clarify a comment that you made. You talked about, you know, revenue and gross margin up in fiscal 25, but you said modestly, and I just wanted to make sure that, was that modest comment meant for revenue and gross margin up modestly or just gross? Thanks for the question Christy, it was for both.

I wanted to talk about the changes to capital intensity that you were taking. Can you give a little more color on that and kind of where the targets might sit when you're done with that program and kind of what you're doing to achieve that?

Christopher Caso: Comment that you made you talked about.

Christopher Caso: Revenue and gross margin up in fiscal 'twenty, five, but you said modestly and I just wanted to make sure that that was that modest comment.

Christopher Caso: For revenue and gross margin up modestly or just gross margin.

Sure. So from a capital intensity perspective, I still think that we'll be spending CAPEX in around that 5% target level as we look out over time. It could vary based on capacity required to support customer demand. But that's our current...

Speaker Change: Thanks for the question, Chris It was for both.

Speaker Change: Okay, So both revenue and so.

Grant A. Brown: Okay, so both revenue and, so, okay, so that's clear. As a follow-up to that, I wanted to talk about the changes to capital intensity that you were taking. Can you give a little more color on that and, you know, kind of where the targets might sit when you're done with that program and kind of what you're doing to achieve that?

Speaker Change: Okay.

Speaker Change: That's clear.

Chris: As a follow up on that.

Chris: I wanted to talk about the.

Speaker Change: The changes to capital intensity.

Speaker Change: That you were taking can you give a little more color on that and kind of where the targets might sit when youre done with that program and kind of what youre doing to achieve that.

current target.

Your next question comes from Serini Pajuri with Raymond J.

Thank you. Bob, in your guidance for fiscal year revenue to be up modestly,

Speaker Change: Sure so from a capital intensity perspective, I still think that we'll be spending capex in and around that 5% target level as.

Grant A. Brown: Sure, so from a capital intensity perspective, I still think that we'll be spending CapEx in and around that 5% target level. As we look out over time, it could vary based on capacity required to support customer demand, but that's our current, per the target. Your next question comes from Srini Pajjuri with Raymond J.

Obviously, you said previously that you expect your largest customer to grow here on year this year. So the rest of the business, I'm just curious, given, I mean, we've been weak in broad market, not broad market, and non, I guess, smartphone segments for a while, they seem to be lumpy, but some of them are coming back. So I'm just curious as to.

Speaker Change: As we look out over time it could vary based on <unk>.

Speaker Change: Capacity required to support customer demand, but that's that's our current.

Speaker Change: Our current target.

Speaker Change: Your next question comes from Tony <unk> with Goldman Sachs.

You know, what's the outlook for the, you know, outside of your largest customer? What's causing you to be a bit more cautious here? It seems like, you know, you're kind of, you know, you're sounding a bit more causes than last quarters and just trying to understand what's causing, what's giving you that pause.

Srinivas Reddy Pajjuri: Thank you. Bob, in your guidance for fiscal year revenue to be up modestly, obviously you said previously that you expect your largest customer to grow year-on-year this year. So the rest of the business, I'm just curious, given that we've been weak in broad market, not broad market, non-I guess, smartphone segments for a while. They seem to be lumpy, but some of them are coming back.

Tony: Thank you Bob.

Tony: Guidance for fiscal year revenue to be up modestly.

Tony: Obviously, you said previously that you expect your largest customer to grow year on year. This year. So the rest of the business I'm just curious given I mean, we've been weak and broad market not broad market.

Sure, let me take that one and then Bob can fill in if, you know, kind of the latter part of your question. I think, you know, for fiscal 25, generally we're optimistic. We do expect to grow. We're going to expand gross margin as we currently see it. I think we're having success at our largest customers, and that's creating more seasonality, which you're seeing in June . But on the whole, you know, the year will be up. It also creates an opportunity for us to grow in our defense business, you know, where we're seeing some, you know, recent congressional budget approvals as well as some of the foreign A packages, which is driving our order activity there. So we're seeing a strong tailwind on the defense business and

Tony: I guess, the smartphone segment for a while they seem to be lumpy, but some of them are coming back. So I'm just curious as to.

Tony: No.

Grant A. Brown: So I'm just curious as to, you know, what's the outlook for the company outside of your largest customer, what's causing you to be a bit more cautious here? It seems like, you know, you're kind of, you know, you're sounding a bit more cautious than last quarter. So I'm just trying to understand what's causing you to be so cautious. What's giving you that pause?

Tony: Whats the outlook for the outside of your largest customer, what's causing it to be a bit more cautious here. It seems like youre kind of.

Tony: You're sounding a bit more costly than last quarter. So I'm, just trying to understand what's causing what's giving you the parts.

Speaker Change: Sure let me take that one and then Bob can fill in if.

Grant A. Brown: Sure, let me take that one and then Bob can fill in the latter part of your question. I think for Fiscal 25, generally, we're optimistic, we do expect to grow, and we're going to expand gross margin as we currently see it. I think we're having success with our largest customers and that's creating more seasonality, which you're seeing in June, but on the whole, the year will be up. It also creates an opportunity for us to grow in our defense business, where we're seeing some recent congressional budget approvals as well as some foreign aid packages which are driving our order activity there.

Bob: The latter part of your of your question I think for fiscal 'twenty five generally we're optimistic we do expect to grow we're going to expand gross margin as we currently.

the fiscal second half, so that was for us begin in the December quarter and follow through into March again. You know, those are some of the drivers we see. And I don't know, Bob, I think we missed the last part of your question. I think was it around confidence at our largest customer?

Speaker Change: Currently see it.

Speaker Change: I think we're having success at our largest customers and thats, creating more seasonality than what youre seeing in June but on the whole year.

Speaker Change: A year will be up.

Speaker Change: It also.

Tony: It creates an opportunity for us to grow in our defense business.

I was just wondering, you know, I guess last quarter you definitely sounded a bit more confident about

Tony: Where we're seeing some recent congressional budget approvals as well as some of the foreign aid packages, which is driving our order activity. There. So we're seeing a strong tailwind on the defense business in the fiscal second half so that would for US began in the December quarter and follow through into March again.

you know, the next year and two, at your largest customer, looks like that hasn't changed. And given your view,

Grant A. Brown: So we're seeing a strong tailwind on the defense business in the fiscal second half. So that would begin for us in the December quarter and follow through into March again. Those are some of the drivers we see.

on your largest customer, I would have thought, you know, the fiscal year guidance would be up more than just modestly. So I'm just trying to understand what's kind of giving you that pause outside of your largest customer.

Tony: And those are some of the drivers we see and on a pilot.

Grant A. Brown: We missed the last part of your question. I think it was around confidence at our largest customer. I was just wondering, you know, I guess last quarter you definitely sounded a bit more confident about the next year and two at your largest customer. It looks like that hasn't changed. And given your view of your largest customer, I would have thought the fiscal year guidance would be up more than just modestly.

Tony: We missed the last part of your question I think was it around confidence at our largest customer.

We still believe we're going to grow in the Android ecosystem to be clear. So, you know, again,

Grant A. Brown: So I'm just trying to understand what's kind of giving you that pause outside of your largest customer. We still believe we're going to grow in the Android ecosystem, to be clear. So, you know, again, we didn't comment on the full year last time. The only comment I made was I wanted to correct some noise in the market about us having lost the socket potentially at our largest customer, and I wanted to make that clear. So I'm sure that came across clearly.

Tony: So just wondering I guess last quarter, you definitely sounded a bit more confident about.

We didn't comment on the full year last time. The only comment I made was I wanted to correct some

noise that was in the market about we had lost the socket potentially at our largest customer and I wanted to make that clear. So I'm sure that came across clear. However, when we look out over the year, I mean, there's a lot of things to judge for the year. I think it's great that we're able to provide you some color, at least how we think of things today. But I'd say if anything, we're being somewhat conservative, just giving what's going on. As you know, our Android market in China,

Tony: The next year on two at your largest customer it looks like that hasn't changed and given your view on your largest customer I would've thought.

Tony: Your guidance would be up more than just modestly so I'm just trying to understand what's giving.

Tony: Anything you'd like pause outside of your largest customer.

Tony: We still believe we're going to grow in the Android ecosystem to be clear so.

quite honestly, it's going to be flat quarter over quarter to slightly up, but we're very cautious on China and the economy turning around there where they're actually doing well is in some of the export market.

Tony: Again.

Tony: We didn't comment on the full year last time, the only comment I made was I wanted to correct. Some.

Tony: Noise that was in the market about.

Tony: We have launched a socket potentially at our largest customer and I wanted to make that clear so im sure that came across clear.

So just given everything that we see going on,

globally interest rates, you see what's going on with the Fed and our own country and going around the world.

Robert Bruggeworth: However, when we look out over the year, I mean, there's a lot of things to judge for the year. I think it's great that we're able to provide you with some color, at least how we think of things today. But I'd say, if anything, we're being somewhat conservative just given what's going on. As you know, our Android market in China is going to be flat for a quarter of a quarter to slightly up.

Tony: However, when we look out over the year I mean, there's a lot of things to judge for the year I think it's great that we're able to provide you some color at least how we think of things today, but I'd say, if anything were being somewhat conservative just given what's going on as you know our Android market in China quite honestly is going to be flat quarter over quarter to slightly up but.

I think it's

prudent to take a conservative view when we give our outlook, whether it's the number of units that are our largest customer or what's going to happen to end demand with consumers. We're just being cautious, but we're confident we can grow. And I think that's how I'd leave that.

Thanks, if I may have a follow-up on gross margins. Grant, obviously, you know, you're talking about improving gross margin in the second half of the fiscal year.

Tony: We're very cautious on China, and the economy, turning around there, where they're actually doing wells and some of the export market. So just given everything that we see going on.

Robert Bruggeworth: But we're very cautious about China and the economy turning around there. Where they're actually doing well is in some of the export market. So just given everything that we see going on globally, interest rates, you see what's going on with the Fed in our own country and around the world, I think it's prudent to take a conservative view when we give our outlook, whether it's the number of units at our largest customer, or what's going to happen to end demand with consumers. We're just being cautious. But we're confident we can grow. And I think that's how I'd leave it.

Tony: Globally interest rates, you see what's going on with the fed in our own country and all around the world I think it's prudent to take a conservative view when we give our outlook whether it's the number of units in our largest customer what's going to help with the end demand with consumers.

How do we go from, you know,

I think you're exiting the fiscal year maybe in the high 40s, mid to high 40s. How do you go from mid to high 40s to the previous, I guess, peak levels of 50% to 53%? What's the plan to, I mean, is it a function of revenue or are there any other initiatives that are in place to, you know, get us back to that goes marginal level?

Tony: Just being cautious, but we're confident we can grow and I think that's how I'd leave that.

Tony: Yeah.

Robert Bruggeworth: Thanks, Bob. If I may, you know, have a follow-up on gross margins. Brent, obviously, you know, you're talking about improving gross margin in the second half of the fiscal year. I guess, How do we go from mid to high 40s to the previous peak levels of 52-53%, and what's the plan there? Is it a function of revenue, or are there any other initiatives that are in place to get us back to those marginal levels? Sure. Thanks for the question.

Speaker Change: Thanks, Bob if I may.

Speaker Change: Follow up on gross margins Brian.

Sure, thanks for the question. So utilization is obviously critical and it's improving, and we've spoken quite a bit about it, but maybe just to put that into context,

Speaker Change: Obviously, you're talking about improving gross margin in the second half of the fiscal year.

Speaker Change: I guess how.

Speaker Change: How do we go from.

The utilization across our US FABS is actually currently up 20 percentage points versus Q1 a year ago.

Tony: You're exiting the fiscal year, maybe in the high <unk>.

Brian: The 140 <unk>, how do we go from mid to high <unk> to the previous I guess peak levels of 50% to 52% whats the plan to I mean is that the function of revenue or are there any other initiatives that are in place.

So looking at just a simple average across our wafer fabs, the percent utilization went from the 40s to now the 60s, and all that hasn't flown into the P&L yet. So we still have meaningful opportunity to improve and reach more optimal levels, call it in the 80s or higher, across the board.

Tony: Get us back to the gross margin level.

Grant A. Brown: So, utilization is obviously critical and it's improving, and we've spoken quite a bit about it, but maybe just to put that into context. You know, utilization across our U.S. FABs is actually currently up 20 percentage points versus Q1 a year ago. So looking at just a simple average across our wafer FABs, the percent utilization went from the 40s to now the 60s, and all that hasn't flown into the P&L yet.

Speaker Change: Sure. Thanks for the question so utilization.

Speaker Change: Utilization is obviously critical and its improving and we've spoken quite a bit about it but maybe just to put that into context.

We've talked a bit as a specific example to our Wi-Fi business in CSG, which is facing the underutilization here in our North Carolina gas line. Each of those products is coupled to the FAB that was designed and qualified in, so we can't move production overnight, but over time we can optimize this. So load balancing across our factory networks always being evaluated, and it's a potential for opportunity there. But beyond just utilization, we are taking active steps to improve gross margins. at maybe by business or maybe from a manufacturing perspective and in ACG specifically we're managing our portfolio to better match cost.

Speaker Change: The utilization across our U S. Fabs is actually currently up 20 percentage points versus Q1, a year ago. So looking at just a simple average across our wafer fabs. The percent utilization went from the <unk> to now the <unk> and all of that Hasnt flown into the P&L, yet so we saw a meaningful opportunity to improve and reach.

Grant A. Brown: So we still have meaningful opportunity to improve and reach more optimal levels, call them in the 80s or higher, across the board. We've talked a bit as a specific example about our Wi-Fi business in CSG, which is facing underutilization here in our North Carolina gas line. Each of those products is coupled to the fab it was designed and qualified in.

Speaker Change: More optimal levels call it in the 80% or higher across the board.

Speaker Change: We've talked a bit as a specific example to our Wi Fi business and <unk>, which is facing the underutilization here in our North Carolina gas line.

with the product here. So to align Android's entry tier, our new low, mid, high, integrated products are a great example. This is not a single product, but actually a family of products that are better optimized for that segment of the market.

Speaker Change: Each of those products is coupled with the fab. It was designed and qualified and so we can't move production overnight.

Grant A. Brown: So we can't move production overnight, but over time, we can optimize this. So load balancing across our factory networks is always being evaluated, and there's a potential for opportunity there. But beyond just utilization, we are taking active steps to improve gross margin. If you look at it maybe by business or maybe from a manufacturing perspective, and in ACG, specifically, we're managing our portfolio to better match cost with product tier. So to align Android's entry tier, our new low, mid, and high integrated products are a great example. This is not a single product, but actually a family of products that are better optimized for that segment of the market.

Speaker Change: But over time, we can optimize this so load balancing across our factory networks always being evaluated and it's a potential for opportunity there, but beyond just utilization. We are taking active steps to improve gross margin. If you look at it maybe by business or maybe from a manufacturing perspective.

In HPA, we expect our high mix

lower volume businesses generally carry higher gross margins to be among our fastest growing opportunities. Defense is a good example. I've spoken to that where we expect a strong fiscal second half and for growth to continue well beyond this fiscal year given the budget approvals.

Speaker Change: Specifically, we are managing our portfolio to better match cost with the product here so to align androids entry tier our new low mid high integrated products are a great example of this is not a single product, but actually a family of products that are better optimized for that segment of the market.

and the order activity we're seeing. CSG, I just mentioned the Wi-Fi business, but it's our highest growth opportunities. There are in products that run in high volume external silicon partners. So overall business mix will play a role in margin expansion over time.

Grant A. Brown: In APA, we expect our high-mix, lower-volume businesses, which generally carry higher gross margins, to be among our fastest-growing opportunities. Defense is a good example, I've spoken to that, where we expect a strong fiscal second half and for growth to continue well beyond this fiscal year given the budget approvals and the order activity we're seeing. ESG, I just mentioned the Wi-Fi business, but our highest-growth opportunities there are in products that run in high-volume external silicon partners.

Speaker Change: And HPA, we expect our high mix lower volume businesses generally carry higher gross margins to be among our fastest growing opportunities defense is a good example, I've spoken to that where we expect a strong fiscal second half and for growth to continue well beyond this fiscal year given the the budget approval.

Those product lines will grow faster and they'll become a bigger portion of our revenue mix.

less susceptible to underutilization, of course, because they're externally sourced.

From an overall manufacturing perspective, we expect to benefit from continued diet size reductions, wafer size increases, and we can continue reducing our capital intensity. We're continuously looking at factory footprints for opportunities to optimize and consolidate our operations, and you've already seen us take steps there, such as

Speaker Change: <unk>.

Speaker Change: And the.

Speaker Change: Order activity, we're seeing.

Speaker Change: <unk>.

Speaker Change: I just mentioned the Wi Fi business, but it's our highest growth opportunities there are in products that run and high volume external silicon partners. So overall business mix will play a role in margin expansion overtime those product lines will grow faster and they will become a bigger portion of our revenue mix.

Grant A. Brown: So overall, business mix will play a role in margin expansion over time. Those product lines will grow faster, and they'll become a bigger portion of our revenue mix. Less susceptible to underutilization, of course, because they're externally sourced.

divesting our farmers branch facilities as well as our Beijing and DeJo facilities. So we have a lot of opportunity to get there. It's not simply utilization, but obviously that's a big part of it.

Speaker Change: Less susceptible to Underutilization of course, because they are externally sourced.

Grant A. Brown: From an overall manufacturing perspective, we expect to benefit from continued die size reductions, wafer size increases, and we can continue reducing our capital intensity. We're continuously looking at factory footprints for opportunities to optimize and consolidate our operations. And you've already seen us take steps there, such as divesting our farmer's branch facilities, as well as our Beijing and Dejaux facilities. So we have a lot of opportunity to get there. It's not simply utilization, but obviously that's a big part of it.

Speaker Change: From a overall.

Speaker Change: Overall manufacturing perspective, we expect to benefit from continued die size reductions wafer size increases and we can continue reducing our capital intensity, we're continuously looking at factory footprint for opportunities to optimize and consolidate our operations and you've already seen us take steps there such as divesting our <unk>.

Your next question comes from Thomas O'Malley with Barclays.

Hey guys, thanks for taking my question. So on the last call you kind of talked about the shape of the year being very similar year over year If you look at fiscal year 24 and fiscal year 25 With June coming in a bit lighter could you just update us on how you're seeing the shape of the year? Does that peak a bit higher in the September December period just because Q1 was a bit weaker? Any color on what you're kind of seeing in terms of the shape of the year being similar? Does that change at all with what we're what we're looking at in June ?

Speaker Change: Amherst branch facilities as well as our Beijing and <unk> facilities. So we have a lot of opportunity to get there, it's not simple utilization, but obviously, that's a big part of it.

Grant A. Brown: Your next question comes from Thomas O'Malley with Barclays. Hey guys, thanks for taking my question. So on the last call, you kind of talked about the shape of the year being very similar year over year. For example, if you look at fiscal year 24 and fiscal year 25. With June coming in a bit lighter, could you just update us on how you're seeing the shape of the year? Does that peak a bit higher in the September and December period, just because Q1 was a bit weaker? Any color on what you're kind of seeing in terms of the shape of the year being similar?

Speaker Change: Your next question comes from Thomas O'malley with Barclays.

Sure. It's similar to fiscal 24. As I mentioned, we do expect, unlike fiscal 24, that we'll have a larger December than September and then down seasonally in March.

Thomas O'malley: Hey, guys. Thanks for taking my question. So on the last call you kind of talked about the shape of the year being very similar year over year. If you look at fiscal year 'twenty four in fiscal year 'twenty five with June coming in a bit lighter could you just update us on how youre seeing the shape of the year does that peak a bit higher in the September December period, just because Q1 was a bit weaker any.

So, you know, in that regard, it's slightly different than what we saw in fiscal 24. But generally speaking, the September and December quarters will be our largest within the fiscal year.

That's super helpful. And then just to put a nail in a coffin here, but just on the Android business into the June quarter, so you're talking about better China, but also you don't have a flagship launch in the June quarter from another large customer. When you net that out.

Thomas O'malley: Color on what Youre kind of seeing in terms of the shape of that youre being similar or does that change at all with what we're what we're looking at in June.

Speaker Change: Sure it's similar to fiscal 'twenty four as I mentioned, we do expect unlike fiscal 'twenty four that will have a larger December than September and then down seasonally in March so.

Thomas O'malley: Or does that change at all with what we're looking at in June? Sure. It's similar to Fiscal 24. As I mentioned, we do expect, unlike Fiscal 24, that we'll have a larger December than September and then be down seasonally in March. So, you know, in that regard, it's slightly different than what we saw in Fiscal 24. But, generally speaking, the September-December quarters will be our largest within the fiscal year. That's super helpful.

Do you see the ability to grow kind of sequentially into the June quarter? It's just hard to know the various growth rates. I know you have some idea of size, but any color you could give there on the Android business just June specifically.

Thomas O'malley: That regard, it's slightly different than than what we saw in fiscal 'twenty four but generally speaking the September December quarters will be our largest within the fiscal year.

June most likely for, hi this is Bob, June most likely is going to be flated off with the Android ecosystem. As you pointed out, you know, we're coming off a big flagship ramp at our second largest customer with tremendous content, but we're offsetting that with growth outside of them.

Robert Bruggeworth: And then just to put a nail in the coffin here, but just on the Android business into the June quarter, so you're talking about better China, but also, you don't have a flagship launch in the June quarter from another large customer. When you net that out, do you see the ability to grow kind of sequentially into the June quarter? It's just hard to know the various growth rates. I know you have some idea of size, but any color you could give there on the Android business, just June specifically.

Speaker Change: That's super helpful. And then just to put a nail in the coffin here, but just on the Android.

Speaker Change: Into the June quarter. So you are talking about better China, but also you don't have a flagship launch in the June quarter from another large customer when you net that out.

So our next question comes from Christopher Rowland with Susquehanna.

Speaker Change: Do you see the ability to grow kind of sequentially into the June quarter is just hard to know the various growth rates. I know you have some idea of size with any color you could give there on the Android business just June specifically.

Hey guys, yeah, just working through that gross margin thing, we're talking about like 500 or 600 basis points for September . Is that roughly the magnitude to get to that gross margin expansion we need?

Robert Bruggeworth: June most likely for, hi, this is Bob. June is most likely going to be flat off with the Android ecosystem. As you pointed out, you know, we're coming off a big flagship rampant, and our second largest customer with tremendous content, but we're offsetting that with growth outside of them. So our next question comes from Christopher Rolland with Susquehanna. Hey, guys.

Speaker Change: Most likely hi, this is Bob do most likely it's going to be flat to up with the Android ecosystem. As you pointed out we're coming off a big flagship ramp.

Bob: And our second largest customer with tremendous content, we're offsetting that with growth outside of them.

I think you're in the right ballpark, Chris. I gave a rough estimate for the year, so I believe you backed into it properly.

Speaker Change: Our next question comes from Christopher Rolland with Susquehanna.

Okay, great. And I have no other questions. Thanks.

Christopher Adam Jackson Rolland: Yeah, just working through that gross margin thing. We're talking about 500 or 600 basis points for September. Is that roughly the magnitude to get to that gross margin expansion we need? I think you're in the right ballpark, Chris.

Christopher Adam Jackson Rolland: Hey, guys yeah.

Your next question comes from Peter Peng with J.P. Morgan.

Christopher Adam Jackson Rolland: Just working through that gross margin thing, we're talking about like 500 or 600 basis points for September is that roughly the magnitude to get to that gross margin expansion we need.

Hey, good afternoon. Thanks for taking my question. Just want to go back to that modest revenue growth. Are you expecting growth across all segments or are you, you know, expecting some decline in certain segments?

For the full year, we are expecting growth across all segments.

Grant A. Brown: I gave you a rough estimate for the year, so I believe you backed into it properly. Okay, great. And I have no other questions.

Christopher Adam Jackson Rolland: I think you are in the right ballpark Chris.

Christopher Adam Jackson Rolland: Gave a rough estimate for the year so bill.

Got it. Thanks for that's helpful. And then I think last quarter you talked about smartphone, shipments, low single digits and 5Gs, kind of in that 10% plus range. Has that view changed? And is that, I guess, the full year gardens, is it just more conservatism there? So maybe if you can answer it.

Christopher Adam Jackson Rolland: Believe you backed into it properly.

Speaker Change: Okay great.

Speaker Change: And I have no other questions. Thanks.

Christopher Adam Jackson Rolland: Thanks. Your next question comes from Peter Peng with J.P. Morgan. Hey, good afternoon.

Christopher Adam Jackson Rolland: Your next question comes from Peter Peng with J P. Morgan.

Peter Peng: Thanks for taking my question. Just going to go back to that modest revenue growth. Are you expecting growth across all segments? Or are you, I'm expecting some decline in certain We, for the full year, we are expecting growth across all. Got it. Thanks for coming on top.

Peter Peng: Hey, good afternoon. Thanks for taking my questions. Just wanted to go back to that modest revenue growth are you expecting growth across all segments or are you.

Yeah, no change in the outlook. We're still thinking low single digits for the overall market. And like you said, 5G growing greater than 10%.

Peter Peng: Expecting some decline in certain segments.

Peter Peng: For the full year, we are expecting growth across all segments.

Speaker Change: Got it thanks, that's helpful and then.

Your next question comes from Tim Akuri with UBS.

Grant A. Brown: And then, I think last quarter you talked about smartphone shipments, low single digits, and 5G. Yeah, no change in the outlook. And we're still thinking low single digits for the overall. Your next question comes from Tim Arcuri with UBS. Hi, this is Iman jumping in for Tim.

Speaker Change: I think last quarter, you talked about smartphone shipments low single digits in <unk>.

Hi, this is Amon jumping in for Tim. We're hearing from some of your peers, some inventory built, a largest customer in March. Are you seeing a similar trend? And then, you know, how should we think about growth, a largest customer as we, you know, progress through this year? And do you have visibility in terms of content growth as we look into next calendar year?

Speaker Change: Kind of in that 10% plus range has that view changed and is that.

Speaker Change: The full year guide just more conservatism there.

Speaker Change: So maybe if you can.

Speaker Change: Yes, no change in the outlook.

Speaker Change: Still thinking low single digits for the overall market and like you said <unk> growing greater than 10%.

Well, this is Bob, and what I can tell you is that we don't see any channel inventory between us and our largest customer, and the reason is pretty straightforward. We ship directly to their manufacturers. So this has come up maybe a year or so ago and now come up now, and we don't see anything like that.

Speaker Change: Your next question comes from Tim Arcuri with UBS.

Speaker Change: Hydrogen demand jumping in for US Ken we're hearing from some of your peers.

Timothy Michael Arcuri: We're hearing from some of your peers. Q&A Q&A Q&A Q&A Q&A Q&A, This is Bob, and what I can tell you is that we don't see any channel inventory between us and our largest customer, and the reason's pretty straightforward. We ship directly to their manufacturers.

Timothy Michael Arcuri: Inventory built a largest customer in March are you seeing a similar trend and then how should we think about growth a largest customer.

Thank you.

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

Timothy Michael Arcuri: Progress through this year and do you have visibility visibility in terms of.

Timothy Michael Arcuri: Content growth as we look to look into next calendar year.

We want to thank everyone for joining us tonight. We appreciate your interest in Corvo, and we look forward to speaking with you during our Investor Day on June 11th and at upcoming investor events. Thank you, and hope you have a great evening.

Timothy Michael Arcuri: This is Bob and what I can tell you is that we don't see any channel inventory between us and our largest customer and the reason is pretty straightforward we shipped directly to their manufacturers. So this has come up maybe a year or so ago and now come up now and we don't see anything like that.

Robert Bruggeworth: So this has come up maybe a year or so ago and now it comes up now, and we don't see anything like that. That concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. We want to thank everyone for joining us tonight. We appreciate your interest in Qorvo, and we look forward to speaking with you during our Investor Day on June 11th and at another upcoming investor event. Thank you, and I hope you have a great evening.

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

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Speaker Change: Thank you.

Speaker Change: That concludes our question and answer.

Speaker Change: I would like to turn the conference back over to management for any closing remarks.

Speaker Change: We want to thank everyone for joining US Tonight. We appreciate your interest in <unk> and we look forward to speaking with you during our Investor day on June 11th and an upcoming investor events.

Speaker Change: I hope you have a great evening.

Speaker Change: The conference with Mark and Craig Thank you for attending.

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Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: All participants will be in listen only mode.

Speaker Change: Please go to teleconference excellence.

Speaker Change: Dr. Keefe, our thank you, Matt and Kristian.

Speaker Change: His presentation there'll be a question and a quick Kennedy.

Speaker Change: Question.

Speaker Change: To ask a question you May press Star then one on your telephone keypad cubic.

Speaker Change: Your question Please press <unk>.

Speaker Change: Please note this conference being recorded.

Operator: ... The Ultimate Parody Site! BF-WATCH TV 2021, The Ultimate Parody Site!

Speaker Change: I would now like to turn the conference over to Douglas.

Douglas: Hi, Chris.

Douglas: <unk>. Please go ahead.

Operator: ... The Ultimate Parody Site! BF-WATCH TV 2021, Qorvo Inc. I'm on a conference call. All participants will be in listen-only mode.

Douglas: Thanks, very much Hello, everyone and welcome to <unk> fiscal 2020 for fourth quarter earnings call.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be a question and opportunity session. To ask a question, you may press star then one on your telephone keypad.

Douglas: This call will include forward looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations.

Douglas: We encourage you to read to review the Safe Harbor statement contained in the earnings release published today as well as the risk factors associated with our business in our annual report on Form 10-K filed with the SEC because these risk factors may affect our operations and financial results in today's release and on today's call we provide.

Douglas: Both GAAP and non-GAAP financial results, we provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain noncash expenses or other items that may obscure trends in our underlying performance during our call our comments and compare.

Douglas: Prisons to income statement items will be based primarily on non-GAAP results for complete reconciliation of GAAP to non-GAAP financial measures. Please refer to our earnings release issued earlier today available on our Investor Relations website at IR Dot Corvo Dot com under financial releases joining.

Douglas: Joining us today are Bob <unk>, President and CEO Grant Brown, CFO, Dave fluid senior Vice President of sales and marketing and other members of <unk> management team and with that I'll turn the call over to Bob.

Douglas DeLieto: Please press drive. Please note this event is being recorded. I would now like to turn the conference over to Douglas DeLieto, Vice President, Investor Relations. Please go ahead.

Bob: Thanks, Doug and welcome everyone to <unk> fiscal 2020 for fourth quarter call I'd like to begin by reminding our audience that we issued a press release last week announcing the date of our upcoming Corvo 2020 for Investor Day.

Douglas DeLieto: Thanks very much. Hello, everyone, and welcome to Qorvo's fiscal 2024 fourth quarter earnings call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to read the safe harbor statement contained in the earnings release published Today, as well as the risk factors associated with our business and our annual report on Form 10-K filed with the FCC because these risk factors may affect our operations and financial results.

Douglas DeLieto: In today's release and on today's call, we provide both GAAP and non-GAAP financial results. We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain non-cash expenses or other items that may obscure trends in our underlying performance. During our call, our comments and comparisons to income statement items will be based primarily on non-GAAP results.

Robert Bruggeworth: For complete reconciliation of GAAP to non-GAAP financial measures, please refer to our earnings release issued earlier today, available on our investor relations website at ir.qorvo.com under the financial release. Joining us today are Bob Bruggeworth, President and CEO, Grant Brown, CFO, Dave Fullwood, Senior Vice President of Sales and Marketing, and other members of Qorvo's management team. And with that, I'll turn the call over to Bob.

Douglas: That will be held June 11th and will be webcast for all audiences and it will begin at 830 am Eastern our last Investor Day was in 2018, and we're very excited to discuss in detail our expanded opportunities and our enthusiasm for the future.

Robert Bruggeworth: Thanks, Doug, and welcome, everyone, to Qorvo's fiscal 2024 fourth quarter call. I'd like to begin by reminding our audience that we issued a press release last week announcing the date of our upcoming Qorvo 2024 investor day. The event will be held June 11th. It will be webcast for all audiences, and it will begin at 8.30 a.m. Eastern.

Robert Bruggeworth: Our last Investor Day was in 2018, and we're very excited to discuss in detail our expanded opportunities and our enthusiasm for the future. Across our businesses, Qorvo is at the forefront of global secular macro trends, including mobility, connectivity, electrification, and datafication. These macro trends are enabling new applications and new user experiences, many of which are made accessible to you by the company's Qorvo supplies and the devices we enable. Our customers continually seek to improve key performance parameters such as power out, current consumed, talk time, battery life, and time between charges.

Douglas: Across our businesses Corvo is at the forefront of global secular macro trends, including mobility connectivity electrification and data vacation. These macro trends are enabling new applications and new user experiences many of which are made accessible to you by the companys <unk> supplier.

Douglas: And the devices we enable.

Douglas: Our customers continually seek to improve key performance parameters such as power out current consumed talk time battery life and time between charges.

Robert Bruggeworth: This is happening across our market, in Aerospace and Defense, Automotive, Consumer, Infrastructure, Industrial, and Enterprise. It is increasing customer focus on power efficiency, throughput, functional density, form factor, and other areas where Qorvo delivers a significant competitive advantage. Complementing this, legacy technologies are transitioning to more advanced technologies like active electronic scanning systems and Advanced Power Management. Force Sensing Touch Sensors, RF MEMS, and a range of system-on-a-chip and system-in-a-package solutions to improve performance and enhance functionality.

Douglas: This is happening across our markets and aerospace and defense automotive.

Douglas: Consumer infrastructure industrial and enterprise.

Douglas: It is increasing customer focus on power efficiency throughput functional density form factor and other areas, where corvo delivers a significant competitive advantage.

Douglas: Complementing this legacy technologies are transitioning to more advanced technologies like active electronics scanning systems.

Douglas: Advanced power management.

Douglas: <unk> touch sensors.

Douglas: <unk> Mems and a range of system on a chip and system in a package solutions to improve performance and enhanced functionality.

Robert Bruggeworth: Also, new connectivity protocols are being adopted across our businesses, including 5g advanced, DOCSIS 4.0, Wi-Fi 6, 6E, and 7, Matter, and Ultra Wideband. Qorvo is driving innovation to enable these trends while expanding our capabilities and product offerings to target a growing set of opportunities. Now, let's turn to the strategic highlights, beginning with HPA. HPA returned to year-over-year growth in the March quarter, supported by strong sequential growth in defense and aerospace and continued improvement in end markets other than base stations. And in Defense and Aerospace, we're very pleased to have completed the acquisition of InokiWave in the March quarter. The InokiWave team brings robust capabilities and high-performance integrated silicon ICs for intelligent active array antennas.

Douglas: Also new connectivity protocols are being adopted across our businesses, including <unk> events.

Douglas: <unk> four point out.

Douglas: Wi Fi six six and seven.

Douglas: Matter and ultra wideband <unk> driving innovation to enable these trends, while expanding our capabilities and product offerings to target a growing set of opportunities.

Douglas: Now, let's turn to the strategic highlights beginning with HPA H.

Douglas: The HPA returned to year over year growth in the March quarter supported by strong sequential growth in defense and aerospace and continued improvement in end markets other than base stations.

Douglas: In defense and aerospace, we're very pleased to have completed the acquisition of gnocchi wave in the March quarter.

Douglas: <unk> brings robust capabilities in high performance integrated silicon Ics for intelligent active array antennas.

Robert Bruggeworth: The commercially proven portfolio includes silicon beamforming ICs and IF-RF conversion solutions which are complementary to our transmit and receive RF front ends for SAPCOM, DNA, 5G, and other beamforming applications. Record annual and March quarterly revenue in DNA was driven by large defense programs and SATCOM growth. The DNA content opportunity for Qorvo is especially strong in phased arrays, where solutions can enable transmit-receive elements.

Douglas: We're commercially proven portfolio includes silicon beam, forming Ics and ISR conversion solutions, which are complementary to our transmit and receive RF front ends for satcom, DNA <unk> and other beam forming applications.

Douglas: Record annual and March quarterly revenue and DNA was driven by large defense programs and satcom growth.

Douglas: The DNA content opportunity for Corvo is especially strong in place to raise where our solutions can enabled transmit receive elements.

Robert Bruggeworth: Face array radars can contain hundreds, up to tens of thousands of transmit-receive elements per system, underscoring the multiplier effect for Qorvo. Adding to this, we're developing more highly integrated placements that combine Inoki Wave solutions with our existing RF and power management IC portfolios. We designed ones for the corridor span airborne and shipborne radars, SATCOM applications, and solid state PA products. We secured our first design win for a ball-based filter bank solution that enables new architectures for large defense customers. In low-Earth-orbit SATCOM applications, we are engaged to supply multiple Qorvo products, including LNA switches, mixers, and ball multiplexers to support ubiquitous, non-terrestrial connectivity.

Douglas: Phased array radars can contain hundreds up to tens of thousands of transmit receive elements per system underscoring the multiplier effect for <unk>.

Douglas: Adding to this we are developing more highly integrated placements that combine <unk> solutions with our existing RF and power management IC portfolios.

Douglas: Design wins for the quarter spanned airborne and shipboard radars satcom applications and solid state PVA products.

Douglas: We secured our first design win for ball based filter bank solution that enables new architectures for large defense customers.

Douglas: In low Earth orbit Satcom applications, we are engaged to supply multiple corvo products, including <unk> switches mixers and ball multiplexers to support ubiquitous <unk> connectivity.

Robert Bruggeworth: Turning to power management, we are investing to expand our reach in markets where Qorvo enjoys longstanding customer relationships, such as consumer, DNA, and mobile, while also targeting more fragmented and more diverse industrial markets. For example, during the March quarter, we secured a motor control design wing and a power tool platform with a leading manufacturer of residential and commercial lawn and garden products. We also secured new payment designs at new and existing Solid State Drive customers. Looking more closely at power management opportunities in mobile, there are increasing requirements for compute and processing power in the device that are creating new growth vectors for Qorvo Beamex.

Douglas: Turning to power management, we are investing to expand our reach in markets, where corvo enjoys longstanding customer relationships, such as consumer DNA and mobile while also targeting more fragmented and more diverse industrial markets during.

Douglas: During the March quarter, we secured a motor control design win and a powerful platform with a leading manufacturer of residential and commercial lawn and garden products.

Douglas: We also secured new payment designs at new and existing solid state drive customers.

Douglas: Looking more closely at power management opportunities in mobile.

Douglas: Our increasing requirements for compute and processing power in the device that are creating new growth vectors for corvo Phoenix.

Robert Bruggeworth: The opportunity is significant in both volume and content, and we are able to leverage our exceptional customer and ecosystem relationships. Qorvo is a recognized leader delivering RF solutions to address customer challenges related to efficiency, functional density, and power consumption. Our RF Power Management Portfolio includes Envelope Tracking, Average Power Track, and Beyond RF power management, there are incremental power management opportunities in the phone where Qorvo is leveraging our expertise to reduce current consumption, improve battery life, and better accommodate more data-intensive use cases.

Douglas: The opportunity is significant in both volume and content and we are able to leverage our exceptional customer and ecosystem relationships.

Douglas: <unk> is a recognized leader delivering RF solutions addressing customer challenges related to efficiency functional density and power consumption.

Douglas: Our RF power management portfolio includes envelope tracking average power tracking.

Douglas: Beyond RF power management, there are incremental power management opportunities in the phone, where corvo is leveraging our expertise to reduce current consumption improved battery life and better accommodate more data intensive use cases.

Robert Bruggeworth: We have very strong power management IP that can be extended across markets, making our PMIC portfolio an engine for diversification, growth, and profitability. We are also extending our reach in broad markets by building more ways to engage with existing and new customers, such as our recently launched QSpice analog and mixed signal circuit design and simulation tools. QSPICE has gained quick traction with engineers by providing them with measurable improvements in speed, functionality, and reliability of circuit simulation. Since its launch, QSPICE has surpassed 20,000 unique downloads.

Douglas: We have very strong power management IP that can be extended across markets, making our <unk> portfolio and then an engine for diversification growth and profitability.

Douglas: We are also extending our reach and broad markets by building off more ways to engage with existing and new customers such as our recently launched <unk> analog and mixed signal circuit design and simulation tools.

Douglas: <unk> devices getting quick traction with engineers by providing the measurable improvements in speed functionality and reliability of circuit simulation.

Douglas: Since its launch <unk> has surpassed 20000 unique downloads.

Robert Bruggeworth: In power devices, customers continue to transition from silicon to silicon carbide, and the design activity for Qorvo remains strong in our target market. We continue to secure design wins for high-density server power supplies and added a second tier one North American server OEM during the quarter. In the infrastructure market, Qorvo is leading the transition from DOCSIS 3.1 to DOCSIS 4.0 with a broad portfolio of products. Proxos 4.0 will increase the efficiency of existing infrastructure and significantly enhance the user experience. DOCSIS 4.0 will support download speeds of up to 10 gigabits per second and increase upload speeds by four times compared to DOCSIS 3.1 to 6 gigabits per second.

Douglas: And power devices.

Douglas: Customers continue to transition from silicon to Silicon carbide and the design activity for Corvo remains strong in our target markets.

Douglas: We continue to secure design wins for high density server power supplies and added a second tier one north American server Oems during the quarter.

Douglas: And infrastructure markets <unk> is leading the transition from DOCSIS three one DOCSIS four point out with a broad portfolio of products.

Douglas: DOCSIS four <unk>, we will increase the efficiency of existing infrastructure and significantly enhance the user experience.

Douglas: For <unk>, we will support download speeds of up to 10 Gigabits per second and increased upload speeds, while four times compare to DOCSIS three one to six gigabits per second.

Robert Bruggeworth: In our base station business, customers continue to award Qorvo design wins. However, we expect the demand environment to remain weak. Longer term, we're very pleased to have been selected by a European-based OEM to support their 6G development efforts. Turning to CSG, we're supporting an increasing number of applications requiring the security and precision location awareness of our ultrawideband solutions across mobile, consumer, automotive, and other markets. In mobile, our Ultrawideband placements were among many Qorvo solutions supplied to Samsung in support of their Galaxy S24 flagship brand.

Douglas: And our base station business customers continue to award Corbo design wins. However, we expect the demand environment to remain weak longer term. We're very pleased to have been selected by a European based OEM to support <unk> development efforts.

Douglas: Turning to see ISG, we're supporting an increasing number of applications, requiring the security and precision location awareness overall tool wideband solutions across mobile consumer automotive and other markets and.

Douglas: In mobile our ultra wideband placements were among many <unk> solutions supply to Samsung and supported our Galaxy as 24 flagship brand.

Robert Bruggeworth: In consumer markets, recent wins include a robotic lawnmower that leverages Qorvo's ultra-wideband to provide the precision location accuracy required to enable this application. In automotive, customer engagements are expanding to enable a range of applications that leverage Qorvo's ultra-wideband radar capabilities. Automotive applications for ultra-wideband technology include secure access and digital key, as well as kick sensors and the reliable detection of both intrusion and occupancy.

Douglas: In consumer markets recent wins include a robotic lawnmower that leverages core most ultra wideband to provide the precision location accuracy required to enable this application.

Douglas: And automotive customer engagements are expanding to enable a range of applications that leverage <unk> ultra wideband radar capabilities automotive applications for ultra Wideband technology include secure access and digital key as well as kick sensors and reliable detection of both intrusion.

Douglas: And occupancy during.

Robert Bruggeworth: During the quarter, customer activity included an ultra-wideband design wind, enabling secure access for an EV manufacturer in North America. In other automotive applications, we were selected to supply automotive Wi-Fi 6E solutions in support of a different North American EV OEM. We were also selected to supply our VTAC solution for an automotive OEM in Europe on a platform ramping in calendar 25. For an EV OEM in Asia, Qorvo was selected to enable their 5G network access device with six solutions, each of which contains our low-band, mid-high-band, ultra-high-band, diversity-received, average power tracker, and high-performance BOSS filtering.

Douglas: During the quarter customer activity included an ultra wideband design win enabling secure access for an EV manufacturer in North America.

Douglas: Other automotive applications, we were selected to supply automotive Wi Fi six solutions in support of a different North American EV OEM. We were also selected to supply our <unk> solution for an automotive OEM in Europe on our platform ramping in calendar 'twenty.

Douglas: For an EV OEM in Asia <unk> was selected to enable their <unk> network access device with six solutions each of which contain our low band mid high band Ultra high band diversity receive average power tracker and high performance ball filtering.

Robert Bruggeworth: Production for this program begins this year, and the win is noteworthy as this 5G reference design will be marketed to additional automotive OEMs and Tier 1s. For Wi-Fi markets, we continue to roll out new technologies and solutions. We are migrating our newest and most advanced BAW technology across our Wi-Fi portfolio. We launched 6 GHz Wi-Fi 7 filters using our Next Generation BAW, and we will soon launch Wi-Fi 7 IFEMs that combine our Next Generation BAW with our PA, SWITCH, and LNA content in a single place. We also ramped our newest Wi-Fi 7 nonlinear FEMS for a Tier 1 network operator in the U.S., and we sampled next-generation, high-efficiency Wi-Fi 7 FEMS aligning with a leading mobile Wi-Fi chipset.

Douglas: <unk> for this program begins this year and the win is noteworthy as this <unk> reference design will be marketed to additional automobile automotive Oems and tier ones.

Douglas: For Wifi markets, we continue to rollout new technologies and solutions, we are migrating our newest and most advanced <unk> technology across our Wi Fi portfolio.

Douglas: Launched six gigahertz Wi Fi seven filters using our next generation ball and we will soon launch Wi Fi seven iphones that combine our next generation bar with our switch and M&A content in a single placement.

Douglas: We also ramped our newest wildfire seven long non linear films for a tier one network operator in the U S and we sampled next generation high efficiency Wi Fi seven firms aligning with a leading mobile Wi Fi chipset.

Robert Bruggeworth: Connected home applications, we began sampling our Next Generation Matter SoC, and we secured a design win with a leading network operator in the U.S. to supply our BLE ZigBee SoC to remote controls for home gateways. And Force Sensing Touch Sensors, we expanded our engagements in trackpads and other consumer applications. In ACG, Qorvo is unique in our opportunity to drive growth across major smartphone OEMs. Our largest opportunity remains dollar content gains at our largest customer.

Douglas: Connected home applications, we began sampling our next generation matter Src and we secured a design win with a leading network operator in the U S to supply our BLE Zigbee Soc to remote controls for home gateways.

Douglas: And <unk> touch sensors, we expanded our engagements and track pads and other consumer applications.

Douglas: And ACG Corvo is unique and our opportunity to drive growth across major smartphone Oems our largest opportunity remains dollar content gains at our largest customer.

Robert Bruggeworth: We have clearly invested to grow this account to represent a larger percentage of Qorvo's revenue, and our continuing investments today reflect our confidence in our multi-year growth opportunity. Within the Android ecosystem, mass-market smartphones are set to transition to 5G through the decade. We are the primary RF supplier to the Android ecosystem, and our strong roadmap and multi-year collaboration positions us to benefit as the Android ecosystem continues to transition to 5G. During the quarter, Qorvo supported the Galaxy S24 launch with a low-band, mid-high-band, ultra-high-band, secondary transmit and receive, tuning, Wi-Fi, and ultra-wideband solution.

Douglas: We have clearly invested to grow this account to represent a larger percentage of core gross revenue and our continuing investments to date reflect our confidence in our multi year growth opportunity.

Douglas: Within the Android ecosystem mass market smartphones are set to transition to <unk> through the decade, we are the primary RF supplier to the Android ecosystem, and our strong roadmap and multiyear collaboration positions us to benefit as the Android ecosystem continues to transition to <unk>.

Douglas: During the quarter equivalent supported the Galaxy is 24 launch with a low band mid high band Ultra high band secondary transmit and receive tuning Wi Fi and ultra Wideband solutions.

Robert Bruggeworth: This highlights the strength of our portfolio and the breadth of our opportunity at Samsung, and we are pleased to support them across their flagship and mass-market 5G smartphones. For mass-market Android 5G smartphones, we see strong pull for our recently launched low, mid, and high band paths. Qorvo's LMH solution reduces surface area by 40% by combining in one placement the low, mid, and high bend main path content traditionally offered in two placements.

Douglas: This highlights the strength of our portfolio and the breath of our opportunity with Samsung and we are pleased to support them across their flagship and mass market <unk> smartphones.

Douglas: For mass market Android five <unk> smartphones, we see strong pull for our recently launched low mid high band pad.

Douglas: Kormos LMA solution reduces surface area by 40% by combining and one placement the low mid and high band main pack content traditionally offered in two placements we've expanded.

Robert Bruggeworth: We've expanded customer engagement to include the top four China-based 5G Android OEMs, and volume shipments are set to commence this calendar year. To broadly support all customers with best-in-class portfolios, we continue to advance new technologies across our products. For example, we are proliferating our next-generation ball technology across high-performance discrete and integrated solutions.

Douglas: Handed customer engagement to include the top four China based <unk>, Android Oems and volume shipments are set to commence this calendar year.

Douglas: So broadly support all customers with best in class portfolios, we continue to advance new technologies across our products.

Douglas: We are proliferating, our next generation <unk> technology across high performance discrete and integrated solutions. We also recently released in next generation LRT salt process to complement our advanced Paul and salt processes and select Vance.

Robert Bruggeworth: We also recently released a next-generation LRT saw process to complement our advanced ball and saw processes in select bands. The first module combining our LRT saw and ball filters will support a flagship launch later this summer. In summary, the increasing emphasis on throughput, efficiency, and size in Qorvo's markets is growing content opportunity and demand for better performing, smaller, more highly integrated RF and power solutions.

Douglas: First module, combining our LLP saw and <unk> filters will support a flagship launch later this summer.

Douglas: In summary, the increasing.

Douglas: Emphasis on throughput efficiency and size and core growth markets is growing the content opportunity and demand for better performing smaller more highly integrated RF and power solutions for.

Robert Bruggeworth: For customers in automotive, consumer, defense and aerospace, industrial, and enterprise, and broad markets, we're leveraging core strengths, including our manufacturing scale, system-level expertise, and advanced packaging capabilities to expand our RF and power product portfolios and deliver outsized growth. For customers in the mobile market, we're addressing new product categories and expanding our SAM across tiers, from the flagship tier to the mass market 5G tier, to capture a growing percentage of the total opportunity. And with that, I'll hand it off to Grant.

Douglas: For customers in automotive consumer defense, and aerospace industrial and enterprise.

Douglas: And broad markets, we are leveraging core strengths, including our manufacturing scale system level expertise and advanced packaging capabilities to expand our RF and power product portfolio and deliver outsized growth.

Douglas: For customers in the mobile market, we are addressing new product categories, and expanding our Sam across tiers from flagship tier to the mass market <unk> to capture a growing percentage of the total opportunity.

Speaker Change: And with that I'll hand, it off the ground.

Grant A. Brown: Thanks, Bob, and good afternoon, everyone. Revenue for the quarter was $941 million. Non-GAAP gross margin was 42.5%, and non-GAAP diluted EPS was $1.39, all exceeding the midpoint of our guidance range. Revenue for Fiscal Q4 increased approximately 49% year-over-year. As communicated last quarter, improving customer demand in HPA supported a return to year-over-year growth. HPA revenue grew 24% year-over-year in the March quarter, driven by a stronger-than-anticipated performance in our dispensary. In ACG, revenue grew 56% year-over-year in the March quarter, supported by strong content on multiple large customer platforms.

Speaker Change: Thanks, Bob and good afternoon, everyone.

Speaker Change: Revenue for the quarter was $941 million non-GAAP gross margin was 42, 5% and non-GAAP diluted EPS was $1 39.

Speaker Change: All exceeding the midpoint of our guidance range.

Speaker Change: Revenue for fiscal Q4 increased approximately 49% year over year as communicated last quarter, improving customer demand in HPA supported a return to year over year growth.

Speaker Change: <unk> revenue grew 24% year over year in the March quarter, driven by a stronger than anticipated performance in our defense business.

Speaker Change: In ACG revenue grew 56% year over year in the March quarter supported by strong content on multiple large customer platforms and CST, we delivered 50% year over year growth and our fourth consecutive quarter of sequential growth due to strength in Wi Fi automotive and other areas.

Grant A. Brown: In CSG, we delivered 50% year-over-year growth and our fourth consecutive quarter of sequential growth due to strength in Wi-Fi, automotive, and other areas. Consistent with our prior comments, non-GAAP gross margin of 42.5% for the March quarter reflected a higher percentage of Android 5G mass market product, which was manufactured during periods of lower factory utilization. Non-GAAP operating expenses in the quarter were $253 million.

Speaker Change: Consistent with our prior comments non-GAAP gross margin of 42, 5% for the March quarter reflected a higher percentage of Android five <unk> mass market product, which was manufactured during periods of lower factory utilization.

Speaker Change: non-GAAP operating expenses in the quarter were $253 million, we continue to invest in new product development to drive multi year growth across our businesses.

Grant A. Brown: We continue to invest in new product development to drive multi-year growth across our businesses. Additionally, alongside our growth-oriented investments, we're investing to upgrade the core systems and processes we use to run our business. This multi-year initiative is intended to extend our competitive advantage and enable us to scale growth in diverse, dynamic markets. Our goal is to increase operational efficiency, unlock internal data to leverage new software capabilities, including AI, and support our broad-based growth objectives.

Speaker Change: Alongside our growth oriented investments, we're investing to upgrade the core systems and processes, we use to run our business. This multiyear initiative is intended to extend our competitive advantage and enable us to scale growth and diverse dynamic markets. Our goal is to increase operational efficiency unlock intern.

Speaker Change: <unk> data to leverage new software capabilities, including AI and support our broad based growth objectives. We expect this initiative will span approximately three years and we will present the spend in other operating expense on our non-GAAP P&L.

Grant A. Brown: We expect this initiative will span approximately three years, and we will present the spend and other operating expense on our non-GAAP P&L. As we progress through the project, we will provide related expense guidance on a quarterly basis. Turning to the cash flow statement, in fiscal Q4, we generated operating cash flow of $202 million, and capital expenditures for the period were $33 million. Notable cash flow items that occurred during the quarter included the closing of the InokiWave transaction recorded in investing cash flows and payment of the termination fee associated with a long-term silicon supply agreement recorded in operating cash flows. We repurchased approximately $100 million of stock at $112 per share in the quarter, which brought our total for fiscal 24 to $400 million at an average price of $101 per share.

Speaker Change: As we progress through the project, we will provide related expense guidance on a quarterly basis.

Speaker Change: Turning to the cash flow statement in fiscal Q4, we generated operating cash flow of $202 million and capital expenditures for the period were $33 million.

Speaker Change: Notable cash flow items that occurred during the quarter included the closing of the <unk> transaction recorded and invest in cash flows and payment of the termination fee associated with a long term silicon supply agreement recorded in operating cash flows.

Speaker Change: We repurchased approximately $100 million of stock at $112 per share in the quarter, which brought our total for fiscal 'twenty four to 400 million at an average price of $101 per share the rate and pace of our share repurchases consider several key factors, including our long term.

Grant A. Brown: The rate and pace of our share repurchases considers several key factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations. This approach ensures that our capital allocation strategy balances future growth with the return of capital and aligns with our underlying goal of delivering long-term shareholder value. On the balance sheet, at quarter end, we had approximately $1.5 billion of long-term debt and over $1 billion of cash and equipment.

Speaker Change: Outlook free cash flow debt maturities alternative uses of cash and other relevant strategic considerations. This.

Grant A. Brown: This approach ensures that our capital allocation strategy balancing future growth with the return of capital and aligns with our underlying goal of delivering long term shareholder value.

Grant A. Brown: On the balance sheet as of quarter end, we had approximately $1 5 billion of long term debt.

Speaker Change: And over $1 billion of cash and equivalents.

Grant A. Brown: Regarding balance sheet presentation, the 2024 notes are classified as current and will mature in December. Subject to changes in the interest rate environment and other factors, we currently expect to retire these short-term notes later this year. In line with the expectations shared during our previous earnings call, we successfully reduced our net inventory balance over the period. We ended the quarter with a net inventory balance of $711 million, a sequential decrease of $16 million.

Speaker Change: Regarding balance sheet presentation for 2024 notes are classified as current and will mature in December.

Speaker Change: Subject to changes in the interest rate environment and other factors. We currently expect to retire. These short term notes later this year.

In line with the expectations shared during our previous earnings call. We successfully reduced our net inventory balance over the period. We ended the quarter with a net inventory balance of $711 million, a sequential decrease of $16 million.

Grant A. Brown: For the full year, revenue was $3.8 billion, non-GAAP gross margin was 44.5%, and non-GAAP EPS was $6.21. In Fiscal 24, we had two 10% customers. Our largest customer represented 46% of revenue, up from 37% in Fiscal 23. And our second largest customer was consistent year over year at 12% of revenue. Turning to our current quarter outlook, we expect revenue of approximately $850 million, plus or minus $25 million, non-GAAP gross margin between 40 and 41%, and non-GAAP diluted EPS between $0.60 and $0.80.

Speaker Change: For the full year revenue was $3 8 billion non.

Speaker Change: non-GAAP gross margin was 44, 5% and non-GAAP EPS was $6 21 centers.

Speaker Change: In fiscal 'twenty, four we had 210% customers our largest customer represented 46% of revenue up from 37% in fiscal 'twenty, three and our second largest customer was consistent year over year at 12% of revenue.

Speaker Change: Turning to our current quarter outlook, we expect revenue of approximately $850 million, plus or minus $25 million non-GAAP gross margin between 40% and 41% and non-GAAP diluted EPS between <unk> 60 and 80.

Grant A. Brown: Relative to March, we expect June gross margins to reflect a higher percentage of Android 5G mass market product that was manufactured during periods of lower utilization. As these higher cost inventories sell through, it paves the way for future gross margins that reflect increasing levels of utilization.

Speaker Change: Relative to March we expect June gross margins reflect a higher percentage of Android five <unk> mass market product. It was manufactured during periods of lower utilization.

Grant A. Brown: As these higher cost inventory sell through it paved the way for future gross margins that reflect increasing levels of utilization. We expect gross margin in the June quarter to be the low point for the year and improved substantially in the September quarter. We continue to expect full year gross margin to improve modestly.

Grant A. Brown: We expect gross margin in the June quarter to be the low point for the year and improve substantially in the September quarter. We continue to expect full-year gross margin to improve modestly year on year. We project non-GAAP operating expenses in the June quarter will be approximately $260 million, with variability related to the timing of program development spend and other factors.

Speaker Change: Year on year.

Grant A. Brown: We project non-GAAP operating expenses in the June quarter will be approximately $260 million with variability related to the timing of program development spend and other factors.

Grant A. Brown: Our OPEX guidance for this quarter includes approximately $5 million of other operating expense related to modernizing our core systems and business processes. During fiscal 25, we expect to record approximately $40 million of expenses related to this project with quarterly variability related to the achievement of progress-based milestones. Below the operating income line, non-operating expense is expected to be between $6 and $10 million, reflecting interest paid on our fixed-rate debt offset by interest income earned on our cash balances, FX gains or losses, along with other items. Our non-GAAP tax rate for fiscal 25 is expected to be within a range of 10 to 12 percent.

Grant A. Brown: Our opex guidance for this quarter includes approximately $5 million of other operating expense related to modernizing our core systems and business processes.

Speaker Change: During fiscal 'twenty five we expect to record approximately $40 million of expense related to this project with quarterly variability related to the achievement of progress based milestones.

Grant A. Brown: Below the operating income line non operating expense is expected to be between six and $10 million, reflecting interest paid on our fixed rate debt offset by interest income earned on our cash balances FX gains or losses, along with other items.

Grant A. Brown: Our non-GAAP tax rate for fiscal 'twenty five is expected to be within a range of 10% to 12%. We project. This will increase over time due to changes in tax legislation such as the global minimum tax and other factors.

Grant A. Brown: We project this will increase over time due to changes in tax legislation such as the global minimum tax and other factors. Regarding the divestiture of our Beijing and Dejaux assembly and test facilities, we've made significant progress in achieving operational readiness and completing other work required to close the transaction. This is a further step in our ongoing efforts to reduce capital intensity, and we continue to expect the transaction to close this quarter.

Grant A. Brown: Regarding the divestiture of our paging and to show Assembly and test facilities, we've made significant progress toward achieving operational readiness and completing other work required to close the transaction.

Speaker Change: This is a further step in our ongoing efforts to reduce capital intensity and we continue to expect the transaction to close this quarter.

Grant A. Brown: We are efficiently managing a complex supply chain, including internal factories that are critical differentiators for each of our operating segments, and this will remain an ongoing focus. We'll leverage internal manufacturing, where it uniquely differentiates our products, and outsourced production, where we maintain a strong network of foundry and OSAT partners.

Speaker Change: We are efficiently managing a complex supply chain, including internal factories that are critical differentiators for each of our operating segments and this will remain an ongoing focus will leverage internal manufacturing, we're uniquely differentiates our products and outsource production, where we maintain a strong network of foundry and <unk>.

Speaker Change: <unk>.

Grant A. Brown: <unk> is well positioned to capitalize on multiple long term growth drivers within each of our three operating segments. We're excited to share more during our upcoming Investor day in June and we look forward to your participation at this time. Please open the line for questions. Thank you.

Operator: Qorvo is well positioned to capitalize on multiple long-term growth drivers within each of our three operating segments. We're excited to share more during our upcoming Investor Day in June, and we look forward to your participation. At this time, please open the line for questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up the handset before pressing the key.

Speaker Change: We will now begin the question and answer questions to ask a question you May Press Star then one on your telephone keypad.

Speaker Change: If you are using a speakerphone please pick up the handset <unk>.

Speaker Change: So from an all time your question Jeff.

Operator: Selling a question. Please press Star then.

Operator: We do ask that you. Please from Fox to one question and one follow up today.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then T. We do ask that you please limit yourself to one question and one follow-up today. At this time, we will pause momentarily to assemble our roster. Your first question comes from Ruben Roy, with staff. Thank you very much.

Speaker Change: At this time, we will pause momentarily to assemble over time.

Speaker Change: Your first question comes from Robyn <unk> with stifle.

Ruben Roy: Thank you very much.

Grant A. Brown: Grant, I wanted to see if you could... You had some commentary in the press release on sort of the guidance and how to think about the guidance for June, but I was wondering if you could provide a little bit more detail on kind of what's going on with ACG and the defense after the strong quarter you saw in March and if you could maybe just walk us through the moving parts in the three segments as we think about the guidance. Sure, thanks for the question, Ruben.

Ruben Roy: Hi, Grant I wanted to see if you can add some commentary in the press release on sort of the guidance and how to think about the guidance for June but was wondering if you could provide a little bit more detail on kind of what's going on with ACG and <unk>.

Grant A. Brown: In the defense after the strong quarter you saw in March and if you could maybe just walk us through the <unk>.

Grant A. Brown: The moving parts in the three segments as we think about the guidance for the June quarter.

Grant A. Brown: I'll start off with the June quarter guide overall, and then we can get into the segments. The sequential decline in the June quarter revenue guidance primarily reflects the RAM patterns that are our two largest customers at ACG. And then within HPA, the seasonal timing of large defense programs and a slower rollout of DOCSIS 4.0, as we've talked about previously. ACG is expected to decline. Just to break it down, ACG is expected to decline in the high single digits in June, HPA will decline in the low double digits, and CSG is expected to be approximately flat.

Grant A. Brown: Sure. Thanks for the question Robyn I'll start off with the June quarter Guide overall, and then we can get into the <unk>.

Grant A. Brown: Segments.

Grant A. Brown: The sequential decline in the June quarter revenue guidance, primarily reflects the ramp patterns at our two largest customers at ACG.

Grant A. Brown: And then within HPA, the seasonal timing of large defense programs and a slower rollout of DOCSIS four <unk> as we've talked about previously.

Grant A. Brown: ACG is expected to decline just to break it down ACG is expected to decline in the high single digits in June HPA will decline in the low double digits and <unk> is expected to be approximately flat.

Grant A. Brown: Looking back at ACG, we don't breakout customer percentages by quarter, but I mentioned in my prepared remarks that our largest customer represented approximately 46% of total.

Grant A. Brown: Looking back at ACG, we don't break out customer percentages by quarter, but I mentioned in my prepared remarks that our largest customer represented approximately 46% of total fiscal 24 revenue, which was up from 37% in 23 and 33% in fiscal 22. So it follows that, you know, those increases there increase our revenue exposure to the seasonal RAM patterns we have with our largest customers. And that's impacting the June quarter. Looking at HPA, it's a similar seasonal dynamic; we have successfully grown our revenue base in defense and aerospace. This represents the largest percentage of HPA revenue and actually set a record in fiscal Q4.

Grant A. Brown: Fiscal 'twenty, four revenue, which was up from 37% and 23% and 33% in fiscal 'twenty two so it follows that.

Grant A. Brown: Those increases there.

Grant A. Brown: Increase our revenue exposure to the seasonal ramp patterns, we have with our with our largest customers and thats impacting the June quarter looking at HPA to similar seasonal dynamic we have successfully grown our revenue base in defense and aerospace and this represents the largest percentages of HPA revenue actually said.

Grant A. Brown: A record in fiscal Q4, while we expect our DNA business to grow year on year in fiscal 'twenty five program timing and seasonality is having an outsized impact on the sequential performance in June quarter, just given the relative size within HPA.

Grant A. Brown: While we expect our DNA business to grow year on year in fiscal 25, program timing and seasonality are having an outsized impact on the sequential performance in the June quarter, just given the relative size within HPA. Looking at gross margin, we expect a substantial improvement in September as we sell through all the high-cost inventory, or the vast majority of it, I should say, in June, and we continue to expect full-year fiscal 25 gross margin to improve modestly over 24. That's great!

Grant A. Brown: Looking at gross margin, we expect a substantial improvement in September as we sell through all of the high cost inventory or the vast majority of it I should say in June and we continue to expect full year fiscal 'twenty gross margin will improve modestly over 2004.

Speaker Change: That's great. Thank you for that detail and I guess as a follow up.

Grant A. Brown: Thank you, Grant, for that detail. And I guess, as a follow-up, in the press release also, you talk about... Your view about modest growth, expecting modest growth 25 over 24 and just wondering, I know you don't provide longer-term guidance. The Bulletproof Executive 2013, from into the new year. Has anything changed with the way you're thinking about it? Because I think you said you were expecting it would be reasonable to expect growth. 25 over 24 last quarter.

Grant A. Brown: In the press release also you talk about.

Grant A. Brown: Your view about modest growth seeing and expecting modest growth 25 over 24, and just wondering I know you don't provide longer term guidance.

Grant Brown: Any meaningful detail, but.

90 days.

Grant A. Brown: And to the.

Speaker Change: Into the new year has anything changed with the way Youre thinking about because I think you said you were expecting it would be reasonable to expect growth in fiscal 'twenty five over 24 last quarter. So just wondering if theres been any changes in how you're viewing the growth or inventory levels or sell through demand would be helpful. Thank you.

Grant A. Brown: So just wondering if there's been any changes in how you view, you know, the growth or inventory levels or sell through demand. Sure. No change to our view on inventory; channel inventory, especially within the Android area, looks relatively clear. I think June will be the last quarter we'll really be talking about the high-cost inventory and the underutilization impact associated with that. So that's maybe one change that we haven't spoken about in the past as far as timing goes.

Grant A. Brown: Sure no change to our view on inventory channel inventory, especially within the Android area looks relatively clear I think June will be.

David Fullwood: The last quarter, we will we'll really be talking about the high cost inventory and the underutilization impact associated with that so thats <unk>.

Grant A. Brown: Maybe maybe one change that we haven't spoken to in the past as far as timing goes in terms of fiscal 'twenty five in general it's a little early to provide any detailed quarterly guidance, but absent any macro related disruptions. We do expect to grow both revenue and gross margin modestly in fiscal 'twenty five on a year over year full fiscal year basis, it's worth pointing.

Grant A. Brown: In terms of Fiscal 25 in general, it's a little early to provide any detailed quarterly guidance, but absent any macro-related disruptions, we do expect to grow both revenue and gross margin modestly in Fiscal 25 on a year-over-year, full fiscal year basis. It's worth pointing out that given the timing of the content gains at our largest customer and the success of the defense market, as I mentioned earlier, our revenue seasonality will be more closely aligned to those annual ramp profiles.

Grant A. Brown: That.

Grant A. Brown: Given the timing of the content gains at our largest customer and the success in the defense market as I mentioned earlier.

Robert Bruggeworth: Our revenue seasonality will be more closely aligned to those annual ramp profiles. So that's clear in our Q1 guidance, but we will also be.

Grant A. Brown: So that's clear in our Q1 guidance but will also be included in our full fiscal year. In terms of the shape of revenue across Fiscal 25, we do expect strong sequential growth in September, some modest sequential growth in December, and then that revenue profile will reflect the sequential growth in defense. That begins in September and is even stronger in December.

Grant A. Brown: Included in our full fiscal year.

Grant A. Brown: In terms of the shape of revenue across fiscal 'twenty five.

Grant A. Brown: We do expect strong sequential growth in September some modest sequential growth in December and and then that revenue profile will reflect the sequential growth in defense.

Grant A. Brown: That begins in September and is even stronger in December so we may.

Grant A. Brown: So maybe slightly, unlike Fiscal 24, we'll have a bigger December than September is our current expectation because of the strength there in defense. On gross margins, we expect substantial improvement in September, as I mentioned, roughly flat-ish in December, and then down slightly in March. So again, a similar seasonal profile. Overall, for the year, it probably implied a full fiscal year gross margin for Fiscal 25 in the mid-40s. Your next question comes from Karl Ackerman with BNP Parrot. Grant, I want to follow up on the gross mortgage.

Grant A. Brown: Slightly unlike fiscal 'twenty four we will have a bigger December than September is our is our current expectation because of the strength there and defense on.

Karl Ackerman: On gross margins, we expect substantial improvement in September as I mentioned roughly flattish in December and then down slightly in March so again, a similar seasonal profile.

Karl Ackerman: Overall for the year probably.

Karl Ackerman: Implied a full fiscal year gross margin for fiscal 'twenty five in the mid Forty's.

Grant A. Brown: Yeah.

Grant A. Brown: Your next question comes from Karl Ackerman with lumpy path.

Karl Ackerman: Thank you.

Karl Ackerman: Great and one follow up to the gross margin question that you spoke about I guess is the lower gross margin guide.

Grant A. Brown: I get to the lower gross margin guide. This was driven by seasonally stronger Android sales in June and then while Gross-Morgan's increase in September... Does that suggest Android is weaker in the second half?

Karl Ackerman: Driven by seasonally stronger Android sales in June and then while gross margins increase in September.

Karl Ackerman: Does that suggest Android is weaker in the second half.

Grant A. Brown: I ask because while your peer this evening said that Chinese Android demand rose 40% year-over-year in the first half, there have been some conflicting data points on Android demand in the second half. Yeah, sure. So in terms of gross margin, I think, you know, in any given quarter, it's heavily dependent on mix, as you're pointing out, right, there's variability by end market and product category. But, but as I look at the manufacturing costs associated with what we're selling, any underutilization impact is going to be impacted by when the products are manufactured and where they're manufactured.

Karl Ackerman: I ask because while your peer this evening Sydney, China Android.

Grant A. Brown: Rose, 40% year over year in the first half there are some conflicting data points on Android in the second half. So if you could clarify that that'd be helpful.

Grant A. Brown: So, you know, for Qorvo, when matters because the utilization rate at the time it's produced, and where matters because where the products that contain higher content from external foundries or OSAPs are less impacted by our internal loadings.

Speaker Change: Yes sure so.

Grant A. Brown: In terms of gross margin I think in any given quarter, it's heavily dependent on mix as youre pointing out right theres variability by end market and product category, but but as I look at the manufacturing costs associated with what we are selling any underutilization impact is going to be impacted by when the products are manufactured and where they are manufactured so FERC corvo when matters because the.

Grant A. Brown: Elevation right at the time, it's produced in the wear matters because of where the products.

Grant A. Brown: It contained higher content from external foundries or SaaS.

Grant A. Brown: So for June, our gross margin guidance really reflects, I guess, primarily three things. First, you know, we're actively selling through the higher-cost inventories burdened by underutilization. And this is somewhat of an artifact of past underutilization.

Grant A. Brown: Are less impacted by our internal loadings. So for June our gross margin guidance really reflects I guess, primarily three things first we're actively selling through the higher cost inventory is burdened by and utilization and this is somewhat of an artifact of past underutilization.

Grant A. Brown: The second is that we see the typical seasonal decline our largest customer as I mentioned and those products contain higher levels of external content and then third we expect a seasonal decline in the defense programs like most of our high mix lower volume businesses. These are accretive to gross margin. So it is heavily mix dependent point.

Grant A. Brown: The second is that we see the typical seasonal decline, as our largest customers I mentioned, and those products contain higher levels of external content. And then third, we expect to see a seasonal decline in the defense programs. Like most of our high mix, lower volume businesses, these are accreted to gross margin. So it's, it's heavily mixed dependent.

Grant A. Brown: Our June will Mark the low point as we actively sell through that that remaining high cost inventory.

Grant A. Brown: And again that really reflects the inefficiencies caused by by those underutilized fabs that were whipsawed by a massive inventory correction.

Grant A. Brown: Believe we're well past the worst of those utilization levels and as we sell through the material. It will pave the way for higher gross margins I commented on for the full fiscal year color I talked about earlier for September.

Grant A. Brown: I pointed out June will mark the low point as we actively sell through that remaining high-cost inventory. And again, that really reflects the inefficiencies caused by those underutilized fabs that were whipsawed by a massive inventory correction. We believe we're well past the worst of those utilization levels, and as we sell through the material, it'll pave the way for higher gross margins. I commented on for the full fiscal year color.

Grant A. Brown: If we pivot to that we expect gross margin to improve substantially as it has three headwinds reverse the seasonal ramp will reflect more external content.

Grant A. Brown: The defense revenues expected to grow sequentially in the unrealized <unk> impact should fall to less than or around 100 basis points versus the call. It 300 basis points that we experienced last quarter.

Grant A. Brown: I talked about earlier for September, you know, we if we pivot to that, we expect gross margin to improve substantially as three headwinds reverse. The seasonal ramp will reflect more external content. The defense revenue is expected to grow sequentially, and the underutilization impact should fall to less than or around a hundred basis points versus the call it 300 basis points that we experienced last quarter. Yep, very clear. If I may just speak a quick one.

Speaker Change: Yes, very clear if I'm going to sneak a quick one and you mentioned about a recovery in defense.

David Fullwood: And you mentioned a recovery in defense. I was curious about your thoughts on silicon carbide. I did not hear that, any comments on your prepared script? I know that the industrial market is going through a downturn, But any thoughts on the recovery of the steel and carbide business, or whether the macro has influenced your own? Hey, Carl, this is Dave. I can take that one.

Speaker Change: I was curious your thoughts on Silicon carbide did not hear that any comments on your prepared script I know that the industrial market is going through a downturn.

Dave: But any thoughts on a recovery of the silicon carbide business or whether the macro hedge influence your own success until tomorrow, whether it's in industrial <unk> defense. Thank you.

David Fullwood: So Bob, you've commented on some of this, but we've had some good success there in data centers. And that part of the market actually looks quite good. We've talked in the past, too, about some of our success in areas like solar. That's being heavily impacted by the interest rate environment. And so that market is extremely soft right now.

David Fullwood: Hey, Carl this is Dave I can take that one.

David Fullwood: So Bob you had commented on some of this but we've had some good success there in data centers.

David Fullwood: And that part of the market actually looks quite good we've talked in the past to about.

David Fullwood: Some of our success, we've had in areas like solar that's being heavily impacted by the interest rate environment and so that market is extremely soft right. Now so it's kind of a mixed bag. When you look at our silicon carbide business, it's still quite a small business that we're growing into new markets and so there is lots of opportunities there the sales funnels.

David Fullwood: So it's kind of a mixed bag when you look at our silicon carbide business. You know, it's still quite a small business, so we're growing into new markets. And so there are lots of opportunities there.

David Fullwood: The sales funnel is growing and strong, but the end markets are really dependent on some of the interest rates. Your next question comes from Edward Snyder with Charter Equity. Hey, are you there?

David Fullwood: It is growing and strong.

Edward Francis Snyder: But the end markets are really dependent on on some of the interest rate environment that we're experiencing.

David Fullwood: Your next question comes from Edward Snyder with charter equity research.

Edward Francis Snyder: Ed are you there.

Edward Francis Snyder: Yep, sorry about that guys. A couple questions, if I could. Last quarter we had some discussions about content growth and strength in the second half. I know you haven't guided that to this quarter at all, but I just want an update, if possible. Now that you've had a chance, most of those wins have been awarded, and you're probably working on qualifying them.

Edward Francis Snyder: Sorry about that guys couple of questions if I could.

Edward Francis Snyder: Last quarter, we had the discussions about content growth and strength in the second half I know you haven't guided that.

Edward Francis Snyder: This quarter at all I, just wanted to get an updated possible.

Edward Francis Snyder: Now that you've had a chance most of those wins have been awarded and you're probably working on qualifying qualifying any alteration at all in terms of how strong you think you'll be in the second half in terms of content.

Edward Francis Snyder: Any alteration at all in terms of how strong you think we'll be in the second half in terms of content or revenue growth? Without guidance, I'm just trying to get a feel for if anything's changed. Hi, Ed. It's Bob.

Edward Francis Snyder: Our revenue growth without guiding Im just trying to get a feel for if anything's changed.

Robert Bruggeworth: Thanks for the question. And we're very confident in our outlook with our largest customer. We're confident, as I said last time, in gaining share this year and still very confident in our outlook for, again, FY25, reigning share, FY26, gaining share, growing revenue. Still feel real good about both of those.

Edward Francis Snyder: Hi, Ed it's Bob Thanks for the question and we're very confident in our outlook with our largest customer we're confident as I said last time and gaining share this year still very confident in our outlook for FY.

Robert Bruggeworth: FY 'twenty five rating share FY 'twenty six gaining share growing revenue still feel real good about both of those.

Robert Bruggeworth: And then you close the InkWave deal, and most folks, if you look at the product line, it's pretty much a carbon copy of everything you would need for a millimeter wave to a mobile platform. And there's been some news recently that there seems to be a win with that. My impression was when that was first announced that it was going to be an infrastructure play. Does it have a mobile play to it?

Robert Bruggeworth: And then you close the you closed the <unk> deal and.

Robert Bruggeworth: There are multiple so when you look at the product line, it's pretty much a carbon copy of everything you need for millimeter wave to a mobile platform.

Robert Bruggeworth: And Theres been some news recently that.

Robert Bruggeworth: Okay.

Robert Bruggeworth: When was that.

Robert Bruggeworth: My impression was when that was first.

Robert Bruggeworth: First announced that it was going to be an infrastructure play does it have a Google play to it and how confident you are that this is going to gain any traction given how weak normal way. It has been the mobile business for a while.

Robert Bruggeworth: And how confident are you that it's going to get any traction, given how weak MilneWave has been in the mobile business for a while? Thanks, Ed. Good opportunity to clear that up. When we made the acquisition, our focus was actually on defense. The infrastructure market is pretty volatile, but we still think there's a place for it, but it's primarily on the defense side. We don't have any plans at this time to bring it into the mobile part of our business. Your next question comes from Srini Pajjuri with Raymond J. Pardon me, your next question comes from Chris Caso with Wolf 3.

Robert Bruggeworth: Thanks, Ed and good opportunity to clear that up when we made the acquisition our focus was actually on defense.

Speaker Change: The infrastructure market is pretty volatile, but we still think theres a play there, but it's primarily on the defense side. We don't have any plans at this time to bring it into the mobile phone business mobile part of our business.

Christopher Caso: Your next question comes from Tony <unk> with Raymond James.

Robert Bruggeworth: Pardon me. Your next question comes from Chris Caso with Wolfe Research.

Christopher Caso: Yes, hi. The first question is, I just wanted to clarify a comment that you made. You talked about, you know, revenue and gross margin up in fiscal 25, but you said modestly, and I just wanted to make sure that, was that modest comment meant for revenue and gross margin up modestly or just gross? Thanks for the question Christy. It was for both.

Christopher Caso: Yes, Hi, the first question I just wanted to clarify.

Christopher Caso: A comment that you made you talked about revenue and gross margin up in fiscal 'twenty five.

Christopher Caso: You said modestly and I just wanted to make sure that that was that modest comment.

Christopher Caso: For revenue and gross margin up modestly or just gross margin.

Speaker Change: Thanks for the question, Chris It was for both.

Grant A. Brown: Okay, so both revenue and... So, okay, so that's clear. As a follow-up on that, I wanted to talk about the changes to capital intensity that you were taking. Can you give a little more color on that and, you know, kind of where the targets might sit when you're done with that program and kind of what you're doing to achieve that? Sure, so from a capital intensity perspective, I still think that we'll be spending CapEx in and around that 5% target level. As we look out over time, it could vary based on capacity required to support customer demand, but that's our current capacity, per the target. Your next question comes from Srinivas Pajjuri with Raymond J.

Speaker Change: Okay. So so both revenue and so.

Srinivas Reddy Pajjuri: Okay, So thats clear.

Srinivas Reddy Pajjuri: As a follow up on that.

Srinivas Reddy Pajjuri: I wanted to talk about the.

Srinivas Reddy Pajjuri: The changes to capital intensity.

Grant A. Brown: That you were taking can you give a little more color on that and kind of where the targets might sit when youre done with that program and kind of what.

Srinivas Reddy Pajjuri: What youre doing to achieve that.

Grant A. Brown: Sure so from a capital intensity perspective, I still think that we'll be spending capex in and around that 5% target level.

Grant A. Brown: As we look out over time it could vary based on capacity.

Srinivas Reddy Pajjuri: Capacity required to support customer demand, but that's our current.

Srinivas Reddy Pajjuri: Our current target.

Grant A. Brown: Your next question comes from training.

Srinivas Reddy Pajjuri: Thanks Al.

Srinivas Reddy Pajjuri: Thank you. Bob, in your guidance for fiscal year revenue to be up modestly, obviously you said previously that you expect your largest customer to grow year-on-year this year. So the rest of the business, I'm just curious, given that we've been weak in broad market, not broad market, non-I guess, smartphone segments for a while. They seem to be lumpy, but some of them are coming back.

Srinivas Reddy Pajjuri: Thank you Bob.

Grant A. Brown: <unk> guidance for fiscal year revenue to be up modestly.

Srinivas Reddy Pajjuri: Obviously, you said previously that you expect to your largest customer to grow year on year. This year. So the rest of the business I'm just curious given I mean, we've been weak and broad market not broad market.

Srinivas Reddy Pajjuri: I guess, the smartphone segment for a while they seem to be lumpy, but some of them are coming back. So I'm just curious as to.

Grant A. Brown: So I'm just curious as to, you know, what's the outlook for the company outside of your largest customer, what's causing you to be a bit more cautious here? It seems like, you know, you're kind of, you know, you're sounding a bit more cautious than last quarter. So I'm just trying to understand what's causing, what's giving you that pause. Sure, let me take that one and then Bob can fill in the latter part of your question.

Srinivas Reddy Pajjuri: What's the outlook for the outside of your largest customer, what's causing you to be a bit more cautious here. It seems like youre kind of.

Speaker Change: You're sounding a bit more costly than last quarter. So I'm, just trying to understand what's causing what's giving you the path.

Speaker Change: Sure let me take that one and then Bob can fill in if.

Speaker Change: The latter part of your of your question I think for fiscal 'twenty five generally we're optimistic we do expect to grow we're going to expand gross margin as we currently.

Grant A. Brown: I think for Fiscal 25, generally, we're optimistic, we do expect to grow, and we're going to expand gross margin as we currently see it. I think we're having success with our largest customers, and that's creating more seasonality, which you're seeing in June, but on the whole, the year will be up. It also creates an opportunity for us to grow in our defense business, where we're seeing some recent congressional budget approvals, as well as some foreign aid packages which are driving our order activity there.

Grant A. Brown: Currently see it.

Grant A. Brown: I think we're having success at our largest customers and thats, creating more seasonality than what youre seeing in June but on the whole.

Grant A. Brown: The year will be up it also.

Grant A. Brown: Creates an opportunity for us to grow in our defense business.

Grant A. Brown: We're seeing some recent congressional budget approvals as well as some of the foreign aid packages, which is driving our order activity. There. So we're seeing a strong tailwind on the defense business in the fiscal second half so that would for US began in the December quarter and follow through into March again.

Grant A. Brown: So we're seeing a strong tailwind on the defense business in the fiscal second half. So that would, for us, begin in the December quarter and follow through into March again. Those are some of the drivers we see.

Grant A. Brown: These are some of the drivers we see and on a pilot.

Grant A. Brown: We missed the last part of your question. I think it was around confidence at our largest customer. I was just wondering, you know, I guess last quarter you definitely sounded a bit more confident about the next year and two at your largest customer. It looks like that hasn't changed. And given your view of your largest customer, I would have thought the fiscal year guidance would be up more than just modestly.

Speaker Change: We missed the last part of your question I think was it around confidence at our largest customer.

Grant A. Brown: So I'm just trying to understand what's kind of giving you that pause outside of your largest customer. We still believe we're going to grow in the Android ecosystem, to be clear. So, you know, again, we didn't comment on the full year last time. The only comment I made was that I wanted to correct some noise that was in the market about us having lost the socket, potentially, at our largest customer. And I wanted to make that clear, so I'm sure that came across clear.

Grant A. Brown: So just wondering I guess last quarter, you definitely sounded a bit more confident about.

Grant A. Brown: The next year or two at your largest customer it looks like Bob hasn't changed and given your view on your largest customer I would've thought the fiscal year guidance would be up more than just modestly. So I'm just trying to understand what's going on with leasing.

Grant A. Brown: Anything you'd like pause outside of your largest customer.

Grant A. Brown: We still believe we're going to grow in the Android ecosystem to be clear so.

Grant A. Brown: Again.

Grant A. Brown: We didn't comment on the full year last time, the only comment I made was I wanted to correct. Some.

Grant A. Brown: Noise that was in the market about.

Grant A. Brown: We have launched the socket potentially at our largest customer and I wanted to make that clear so I'm sure that came across clear.

Robert Bruggeworth: However, when we look out over the year, I mean, there's a lot of things to judge for the year. I think it's great that we're able to provide you with some color, at least how we think of things today. But I'd say, if anything, we're being somewhat conservative, just given what's going on. As you know, our Android market in China is going to be flat for a quarter of a quarter to slightly up. But we're very cautious about China and the economy turning around there. Where they're actually doing well is in some of the export markets.

Grant A. Brown: However, when we look out over the year I mean, there's a lot of things to judge for the year I think it's great that we're able to provide you some color at least how we think of things today, but I'd say, if anything were being somewhat conservative just given what's going on as you know our Android market in China quite honestly is going to be flat quarter over quarter to slightly up but.

Robert Bruggeworth: We're very cautious on China, and the economy, turning around there, where they're actually doing well and some of the export market.

Robert Bruggeworth: So just given everything that we see going on globally, interest rates, you see what's going on with the Fed in our own country and around the world, I think it's prudent to take a conservative view when we give our outlook, whether it's the number of units at our largest customer, or what's going to happen to end demand with consumers. We're just being cautious, but we're confident we can grow. And I think that's how I'd leave it.

Robert Bruggeworth: Given everything that we see going on.

Robert Bruggeworth: Globally interest rates, you see what's going on with the fed in our own country and all around the world I think it's prudent to take a conservative view when we give our outlook whether it's the number of units in our largest customer what's going to help with the end demand with consumers.

Robert Bruggeworth: Just being cautious, but we're confident we can grow and I think that's how I'd leave that.

Robert Bruggeworth: Yes.

Grant A. Brown: Thanks, Bob. If I may, you know, have a follow-up on gross margins, Brent. Obviously, you're talking about improving gross margin in the second half of the fiscal year. I guess. How do we go from mid to high 40s to the previous peak levels of 52-53%, and what's the plan there? Is it a function of revenue, or are there any other initiatives that are in place to get us back to that gross margin level? Sure. Thanks for the question.

Speaker Change: Thanks, Bob if I may.

Grant A. Brown: Follow up on gross margins Brian.

Grant A. Brown: Obviously, you're talking about improving gross margin in the second half of the fiscal year.

Grant A. Brown: I guess how.

Grant A. Brown: How do we go from.

Grant A. Brown: You're exiting the fiscal year, maybe in the high <unk> mid to high <unk>, how do we go from mid to high <unk> through the previous peak levels of 50% to 52% Whats the plan to I mean is it the function of revenue or are there any other initiatives that are in place.

Grant A. Brown: Get us back to the gross margin level.

Grant A. Brown: So, utilization is obviously critical, and it's improving, and we've spoken quite a bit about it, but maybe just to put that into context. You know, utilization across our U.S. FABs is actually currently up 20 percentage points versus Q1 a year ago. So looking at just a simple average across our wafer FABs, the percent utilization went from the 40s to now the 60s, and all that hasn't flown into the P&L yet.

Brent: Sure. Thanks for the question so utilization.

Grant A. Brown: Utilization is obviously critical and its improving and we've spoken quite a bit about it but maybe just to put that into context.

Grant A. Brown: The utilization across our U S. Fabs is actually currently up 20 percentage points versus Q1, a year ago. So looking at just a simple average across our wafer fabs a percent utilization went from the <unk> to now the <unk> and all of that Hasnt flown into the P&L, yet so we saw a meaningful opportunity to improve and reach.

Grant A. Brown: So we still have meaningful opportunity to improve and reach more optimal levels, call them in the 80s or higher, across the board. We've talked a bit as a specific example about our Wi-Fi business in CSG, which is facing underutilization here in our North Carolina gas line. Each of those products is coupled to the fab it was designed and qualified in.

Grant A. Brown: More optimal levels call it in the 80% or higher across the board.

Grant A. Brown: We've talked a bit as a specific example to our Wi Fi business and CSC, which is facing the underutilization here in our North Carolina gas line.

Grant A. Brown: Each of those products is coupled to the fab. It was designed and qualified and so we can't move production overnight.

Grant A. Brown: So we can't move production overnight, but over time, we can optimize this. So load balancing across our factory networks is always being evaluated, and there's a potential for opportunity there. But beyond just utilization, we are taking active steps to improve gross margin. If you look at it maybe by business or maybe from a manufacturing perspective, and in ACG, specifically, we're managing our portfolio to better match cost with the product here. So to align Android's entry tier, our new low, mid, and high integrated products are a great example. This is not a single product, but actually a family of products that are better optimized for that segment of the market.

Grant A. Brown: But over time, we can optimize it so load balancing across our factory networks always being evaluated and it's a potential for opportunity there, but beyond just utilization. We are taking active steps to improve gross margin. If you look at it maybe by business or maybe from a manufacturing perspective.

Grant A. Brown: Specifically, we are managing our portfolio to better match cost with the product here so to align androids entry tier our new low mid high integrated products are a great example of this is not a single product, but actually a family of products that are better optimized for that segment of the market.

Grant A. Brown: In HPA, we expect our high-mix, lower-volume businesses, which generally carry higher gross margins, to be among our fastest-growing opportunities. Defense is a good example, I've spoken to that, where we expect a strong fiscal second half and for growth to continue well beyond this fiscal year given the budget approvals and the order activity we're seeing. ISG, I just mentioned the Wi-Fi business, but our highest-growth opportunities there are in products that run in high-volume external silicon partners.

Grant A. Brown: And HPA, we expect our high mix lower volume businesses generally carry higher gross margins to be among our fastest growing opportunities defense is a good example, I've spoken to that where we expect a strong fiscal second half and for growth to continue well beyond this fiscal year given that the budget approval.

Grant A. Brown: <unk>.

Grant A. Brown: And the.

Grant A. Brown: Order activity, we're seeing.

Grant A. Brown: <unk>.

Grant A. Brown: I just mentioned the Wi Fi business, but it's our highest growth opportunities there are in products that run and high volume external silicon partners. So overall business mix will play a role in margin expansion over time, those product lines will grow faster and that will become a bigger portion of our revenue mix.

Grant A. Brown: So overall, business mix will play a role in margin expansion over time. Those product lines will grow faster, and they'll become a bigger portion of our revenue mix, less susceptible to underutilization, of course, because they're externally sourced. From an overall manufacturing perspective, we expect to benefit from continued die size reductions, wafer size increases, and we can continue reducing our capital intensity. We're continuously looking at factory footprints for opportunities to optimize and consolidate our operations.

Grant A. Brown: Less susceptible to Underutilization of course, because they are externally sourced.

Grant A. Brown: Overall manufacturing perspective, we expect to benefit from continued die size reductions wafer size increases and we can continue reducing our capital intensity, we're continuously looking at factory footprint for opportunities to optimize and consolidate our operations and you've already seen us take steps there such as.

Grant A. Brown: And you've already seen us take steps there, such as divesting our farmer's branch facilities, as well as our Beijing and Dejaux facilities. So we have a lot of opportunity to get there. It's not simply utilization, but obviously that's a big part of it.

Grant A. Brown: Divesting, our farmers branch facilities as well as our Beijing and <unk> facilities. So we have a lot of opportunity to get there, it's not simply utilization, but obviously, that's a big part of it.

Thomas O'malley: Your next question comes from Thomas O'Malley with Barclays. Hey guys, thanks for taking my question. So on the last call, you kind of talked about the shape of the year being very similar year over year. For example, if you look at fiscal year 24 and fiscal year 25. With June coming in a bit lighter, could you just update us on how you're seeing the shape of the year? Does that peak a bit higher in the September and December period, just because Q1 was a bit weaker? Any color on what you're kind of seeing in terms of the shape of the year being similar? Or does that change at all with what we're looking at in, Sure.

Grant A. Brown: Your next question comes from Thomas O'malley with Barclays.

Speaker Change: Hey, guys. Thanks for taking my question. So on the last call you kind of talked about the shape of the year being very similar year over year. If you look at fiscal year 'twenty four in fiscal year 'twenty five with June coming in a bit lighter could you just update us on how youre seeing the shape of the year does that peak a bit higher in the September December period, just because Q1 was a bit weaker any.

Thomas O'malley: Color on what Youre seeing in terms of the shape of the year being similar or does that change at all with what we're what we're looking at in June.

Grant A. Brown: It's similar to Fiscal 24. As I mentioned, we do expect, unlike in Fiscal 24, that we'll have a larger December than September and then down seasonally in March. So, you know, in that regard, it's slightly different than what we saw in Fiscal 24. But generally speaking, the September-December quarters will be our largest within the fiscal year. That's super helpful.

Thomas O'malley: Sure.

Thomas O'malley: Similar to fiscal 'twenty four as I mentioned, we do expect unlike fiscal 'twenty four that we will have a larger December than September and then down seasonally in March so in that regard, it's slightly different than than what we saw in fiscal 'twenty four but generally speaking the September December quarters will be our largest within the fiscal year.

Grant A. Brown: <unk>.

Robert Bruggeworth: And then just to put a nail in the coffin here, but just on the Android business into the June quarter, so you're talking about better China, but also, you don't have a flagship launch in the June quarter from another large customer. When you net that out, do you see the ability to grow kind of sequentially into the June quarter? It's just hard to know the various growth rates. I know you have some idea of size, but any color you could give there on the Android business, just June specifically.

Speaker Change: That's super helpful. And then just to put a nail in the coffin here, but just on the Android business into the June quarter. So you are talking about better China, but also you don't have a flagship launch in the June quarter from another large customer when you net that out.

Robert Bruggeworth: Do you see the ability to grow kind of sequentially into the June quarter is just hard to know the various growth rates. I know you have some idea of size, but any color you could give there on the Android business just June specifically.

Robert Bruggeworth: June is most likely going to be flapped off with the Android ecosystem. As you pointed out, we're coming off a big flagship ramp at our second largest customer with tremendous content, but we're offsetting that with growth outside of them. So our next question comes from Christopher Rolland with Susquehanna. Hey, guys.

Robert Bruggeworth: Most likely for Hi, this is Bob do most likely it's going to be flat to up with the Android ecosystem. As you pointed out we're coming off a big flagship ramp.

Christopher Adam Jackson Rolland: And our second largest customer with tremendous content, where we're offsetting that with growth outside of them.

Robert Bruggeworth: Your next question comes from Christopher Rolland with Susquehanna.

Christopher Adam Jackson Rolland: Yeah, just working through that gross margin thing. We're talking about 500 or 600 basis points for September. Is that roughly the magnitude to get to that gross margin expansion we need? I think you're in the right ballpark, Chris.

Christopher Adam Jackson Rolland: Hey, guys yeah.

Christopher Adam Jackson Rolland: Just working through that gross margin thing, we're talking about like 500, or 600 basis points for September or is that roughly the magnitude to get to that gross margin expansion we need.

Grant A. Brown: I gave you a rough estimate for the year, so I believe you backed into it properly. Okay, great. And I have no other questions.

Christopher Adam Jackson Rolland: I think you are in the right ballpark Chris.

Grant A. Brown: Gave a rough estimate for the year. So I believe you backed into it properly.

Speaker Change: Okay, great and.

Chris: And I have no other questions. Thanks.

Peter Peng: Thanks. Your next question comes from Peter Peng with J.P. Morgan. Hey, good afternoon.

Grant A. Brown: Your next question comes from Peter Peng with J P. Morgan.

Grant A. Brown: Thanks for taking my questions. I'm going to go back to that modest revenue growth. Are you expecting growth across all segments? Or are you, I'm expecting some decline in certain areas. We, for the full year, are expecting growth across all sectors. Got it. Thanks for that. And then I think last quarter you talked about smartphone shipments, low single digits, and 5G., https://www.youtube.com.au,,,,, Yeah, no change in the outlook. And we're still thinking low single digits for the overall. Your next question comes from Tim Arcuri with UBS.

Peter Peng: Hey, good afternoon. Thanks for taking my questions. Just wanted to go back to that modest revenue growth are you expecting growth across all segments.

Grant A. Brown: Some decline in certain segments.

Grant A. Brown: For the full year, we are expecting growth across all segments.

Timothy Michael Arcuri: Got it thanks, that's helpful and then.

Grant A. Brown: I think last quarter, you talked about smartphone shipments low single digits in <unk>.

Timothy Michael Arcuri: Kind of in that 10% plus range has that view changed and is that.

Timothy Michael Arcuri: The full year guide just more conservatism there.

Timothy Michael Arcuri: So maybe if you can.

Grant A. Brown: Yes, no change in the outlook.

Grant A. Brown: Still thinking low single digits for the overall market and like you said five years growing greater than 10%.

Grant A. Brown: Your next question comes from Tim Arcuri with UBS.

Timothy Michael Arcuri: Hi, this is Imaan jumping in for Tim. We're hearing from some of your peers. Q&A Q&A Q&A Q&A Q&A, This is Bob and what I can tell you is that we don't see any channel inventory between us and our largest customer and the reason is pretty straightforward. We ship directly to their manufacturers. So this has come up maybe a year or so ago and now come up now and we don't see anything like that.

Speaker Change: Hi, This is the mind jumping in for US Ken we're hearing from some of your peers.

Operator: That concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. We want to thank everyone for joining us tonight. We appreciate your interest in Qorvo, and we look forward to speaking with you during our Investor Day on June 11th and at upcoming investor events. Thank you, and I hope you have a great evening. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Timothy Michael Arcuri: Inventory built the largest customer in March are you seeing a similar trend and then how should we think about growth a largest customer.

Operator: Progress through this year and do you have visibility in terms of content growth as we look to look at the next calendar year.

Operator: This is Bob and what I can tell you is that we don't see any channel inventory between us and our largest customer and the reason is pretty straightforward we shipped directly to their manufacturers. So this has come up maybe a year or so ago and now come up now and we don't see anything like that.

Speaker Change: Thank you.

Operator: That concludes our question and ask with Samsung I would like to turn the conference back over to management for any closing remarks.

Operator: We want to thank everyone for joining US Tonight. We appreciate your interest in <unk> and we look forward to speaking with you during our Investor day on June 11th and at upcoming Investor events. Thank you I Hope you have a great evening.

Operator: The conference with Mark and Craig Thank you for attending.

Operator: Michael.