Q3 2024 Skyworks Solutions Inc Earnings Call

Good afternoon, and welcome to Skyworks Solutions' 3rd Quarter Fiscal Year 2024 Earnings Call. This call is being recorded. At this time, I will turn the call over to Rajvindra Gill, Vice President of Messer License for Skyworks. Ms. Gill, please go ahead.

Unknown Executive: Fiscal Year 2024 Earnings Call. This call is being recorded.

Unknown Executive: Fiscal year 2024 earnings call. This call is being recorded.

Rajvindra Gill: At this time, I will turn the call over to Rajvindra Gill for Skyworks. This call is being broadcast live over the web and can be accessed from the Investor Relations section of the company's website at skyworksinc.com. In addition, the company's prepared remarks will be made available on our website promptly after their conclusion during the call.

Rajvindra S. Gill: At this time, I will turn the call over to Rajvindra Gill, Vice President, Messer License for Skyworks. If you have any questions, please feel free to ask them. Thank you, operator. Good afternoon, everyone, and welcome to Skyworks' third fiscal quarter 2024 conference. With me today is Liam Griffin, our Chairman, Chief Executive Officer, and President, and Chris Hittesol, Chief Financial Officer for Skyworks. This call is being broadcast live over the web and can be accessed from the investor relations section of the company's website at skyworksinc.com.

Speaker Change: Thank you, operator. Good afternoon, everyone, and welcome to Skyworks' third fiscal quarter 2024 conference call.

Speaker Change: With me today is Liam Griffin, our Chairman, Chief Executive Officer and President, and Kris Sennesael, Chief Financial Officer for Skyworks.

Speaker Change: This call is being broadcast live over the web and can be accessed from the investor relations section of the company's website at skyworksinc.com.

Speaker Change: In addition, the company's prepared remarks will be made available on our website promptly after their conclusion during the call.

Rajvindra Gill: Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered for looking statements. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today. Additionally, the results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release within the Investor Relations section of our company website for complete reconciliation to gas.

Rajvindra S. Gill: In addition, the company's prepared remarks will be made available on our website promptly after their conclusion during the call. Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered forward-looking statements. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today.

Speaker Change: Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are, or may be, considered forward-looking statements.

Speaker Change: Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K , for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today.

Rajvindra S. Gill: Additionally, the results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release within the investor relations section of our company website for complete reconciliation to GAAP. With that, I'll turn the call over to Liam.

Speaker Change: Additionally, the results and guidance we will discuss include non-GAAP financial measures consistent with our past practice.

Speaker Change: Please refer to our press release within the investor relations section of our company website for complete reconciliation to GAAP. With that, I'll turn the call over to Liam.

Liam Griffin: With that, I'll turn the call over to Liam. Thanks, Rajvindra Gill, and welcome everyone. Skyworks delivered solid results for the third fiscal quarter of 2024. We posted revenue of $906 million, delivered earnings per share of $1.21, and generated free cash flow of $249 million. Revenue, gross margin, and EPS met over slightly above our prior guidance. Importantly, year-to-date free cash flow was $1.3 billion or 40% free cash flow margin, which reflects strong working capital management and operational excellence. In mobile, we are seeing encouraging signs that inventory levels and order patterns are normalizing. We are energized about the prospects of generative AI, catalyzing a meaningful smartphone replacement cycle, and driving higher levels of RF complexity.

Liam K. Griffin: Thanks, Rajvi, and welcome, everyone. Skyworks delivered solid results for the third fiscal quarter of 2024. We posted revenue of $906 million, delivered earnings per share of $1.21, and generated free cash flow of $249 million. Revenue, Gross Margin, and EPS met or slightly exceeded our prior guidance. Importantly, year-to-date free cash flow was $1.3 billion, or a 40% free cash flow margin, which reflects strong working capital management and operational excellence. In mobile, we are seeing encouraging signs that inventory levels and order patterns are normalized.

Liam: Thanks, Rajvi, and welcome everyone. Skyworks delivered solid results for the 3rd fiscal quarter of 2024. We posted revenue of $906 million, delivered earnings per share of $1.21.

Liam: and generated free cash flow of $249 million.

Speaker Change: Revenue, gross margin, and EPS met or slightly above our prior guidance.

Speaker Change: Importantly, year-to-date free cash flow was $1.3 billion, or 40% free cash flow margin, which reflects strong working capital management and operational excellence.

Speaker Change: In mobile, we are seeing encouraging signs that inventory levels and order patterns are normalizing.

Liam K. Griffin: We are energized about the prospects of generative AI catalyzing a meaningful smartphone replacement cycle and driving higher levels of RF. However, we expect new AI features will only be available on the latest next-generation smartphones, potentially fueling a multi-year upgrade cycle. We are uniquely positioned. Given our long-standing relationships with the leading smartphone OEMs, and best in class RF technology in global manufacturing, in broad markets, we delivered two consecutive quarters of sequential growth since the December bottom, and we anticipate modest growth for the balance of 2024. In Edge IoT, where demand is improving, we have a strong design wind funnel for Wi-Fi 7 systems, and we expect a healthy multi-year upgrade cycle, given faster data transfer speeds and lower latency.

Speaker Change: We are energized about the prospects of generative AI catalyzing a meaningful smartphone replacement cycle and driving higher levels of RF complexity.

Liam Griffin: We expect new AI features will only be available on the latest next-generation smartphones, potentially fueling a multi-year upgrade cycle. We are uniquely positioned, given our long-standing relationships with the leading smartphone OEMs, best-in-class RF technology, and a global manufacturing footprint. In broad markets, we delivered two consecutive cores of sequential growth since the December bottom, and we anticipate modest growth for the balance of 2020-24. An edge IoT where demand is improving, we have a strong design wind funnel for Wi-Fi 7 systems, and we expect a healthy multi-year upgrade cycle, given faster data transfer speeds, and lower levels of RF-Fi 7 systems, and we expect a higher level of RF-Fi 7 systems, and we expect a higher Agency.

Speaker Change: We expect new AI features will only be available on the latest next-generation smartphones, potentially fueling a multi-year upgrade cycle.

Speaker Change: We are uniquely positioned, given our long-standing relationships with the leading smartphone OEMs, best-in-class RF technology, in a global manufacturing footprint.

Speaker Change: In broad markets, we delivered two consecutive quarters of sequential growth since the December bottom, and we anticipate modest growth for the balance of 2024.

Speaker Change: In Edge IoT, where demand is improving, we have a strong design wind funnel for Wi-Fi 7 systems, and we expect a healthy multi-year upgrade cycle given faster data transfer speeds and lower latency.

Liam Griffin: In traditional data center and wireless infrastructure, inventory levels remain elevated, which is prolonging the recovery as we continue to understand natural demand. However, once industry conditions stabilized, we expect end customers to replenish inventory back to normal levels. Lastly, in automotive and industrial, we are working through excess inventory levels but seeing signs of stabilization. We remain bullish on our design one pipeline across our power isolation, RF, and digital broadcast solutions for the connected car and EV markets. Over the medium to long term, we believe generative AI will migrate to the edge. Most significantly, we believe the rollout of compelling AI applications will drive a smartphone replacement cycle, one that is currently the longest in history, standing at over four years.

Liam K. Griffin: In traditional data center and wireless infrastructure, inventory levels remain elevated, which is prolonging the recovery as we continue to undership natural demand. However, once industry conditions stabilize, we expect end customers to replenish inventory back to normal levels. Lastly, in automotive and industrial, we are working through excess inventory levels, but seeing signs of stabilization. We remain bullish on our Design 1 pipeline across our power isolation, RF, and digital broadcast pipelines for the connected car and Evie. Over the medium to long term, we believe generative AI will migrate to the edge, most significantly.

Speaker Change: In traditional data center and wireless infrastructure, inventory levels remain elevated, which is prolonging the recovery as we continue to undership natural demand.

Speaker Change: However, once industry conditions stabilize, we expect end customers to replenish inventory back to normal levels.

Speaker Change: Lastly, in automotive and industrial, we are working through excess inventory levels, but seeing signs of stabilization.

Speaker Change: We remain bullish on our Design 1 pipeline across our power isolation, RF, and digital broadcast solutions.

Speaker Change: for the connected car and EV markets.

Speaker Change: Over the medium to long term, we believe generative AI will migrate to the edge.

Liam K. Griffin: We believe the rollout of compelling AI applications will drive a smartphone replacement cycle that is currently the longest in history, standing at over four years. In Edge IoT, AI-enabled devices increasingly incorporate machine learning to support language and computer vision models.

Speaker Change: Most significantly, we believe the rollout of compelling AI applications will drive a smartphone replacement cycle, one that is currently the longest in history, standing at over four years.

Liam Griffin: In edge IoT, AI-enabled devices increasingly incorporate machine learning to support language and computer vision models. Robust RF is critical to facilitate the continuous training to inference between device and cloud. Over time, automotive OEMs will train on big data in the cloud and stream software downloads through over-the-year updates, supporting higher levels of autonomy and vehicles. To facilitate these trends, OEMs need power and extremely fast RF connectivity. For the next generation data centers, complex workloads supporting large language models will propel upgrade cycles in switch, compute, and optical networks. Over the medium to long term, SkyWorks is well positioned with our high performance timing solutions, targeting 800 gig and 1.6 terabit Ethernet switches in optical modules.

Speaker Change: In Edge IoT, AI-enabled devices increasingly incorporate machine learning to support language and computer vision models.

Unknown Executive: RobustRF is critical to facilitate the continuous training to inference between device and cloud. Over time, automotive OEMs will train on big data in the cloud and stream software downloads through over-the-air up, supporting higher levels of autonomy in vehicles. To facilitate these trends, OEMs need power and extremely fast RF connectivity. Transcription by Transcription Outsourcing, LLC.

Speaker Change: RobustRF is critical to facilitate the continuous training to inference between device and cloud.

Speaker Change: Over time, automotive OEMs will train on big data in the cloud and stream software downloads through over-the-air updates, supporting higher levels of autonomy in vehicles.

Speaker Change: To facilitate these trends, OEMs need power and extremely fast RF connectivity.

Speaker Change: For next-generation data centers, complex workloads supporting large language models will propel upgrade cycles in switch, compute, and optical networks.

Unknown Executive: Over the medium to long term, Skyworks is well-positioned with our high-performance timings, targeting 800 gigabit and 1.6 terabit Ethernet switches in optical modules. Ultimately, our view is there will be a hybrid approach to AI computing, a combo of on-device and cloud.

Skyworks: Over the medium to long term, Skyworks is well-positioned with our high-performance timing solutions.

Skyworks: Targeting 800 gig and 1.6 terabit Ethernet switches in optical modules.

Liam Griffin: Ultimately, our view is there will be a hybrid approach to AI computing, a combo of on-device and cloud-based. Data can be trained in the cloud and deployed to the edge for inference on new inputs. More complex AI tasks will be processed in the cloud and less complex on-device. In addition to these new usage cases, AI-NOP enabled smartphones will further elevate the technological burden, resulting in a premium for onboard space, requiring higher levels of integration in advanced packaging, energy efficiency, translating to lower power consumption, low latency, pushing the boundary of signal integrity, and higher throughput and connectivity upgrades with 5G Advanced and 6G.

Skyworks: Ultimately, our view is there will be a hybrid approach to AI computing, a combo of on-device and cloud-based.

Unknown Executive: Data can be trained in the cloud and deployed to the edge for inference on new inputs. More complex AI tasks will be processed in the cloud and less complex on the device. In addition to these new usage cases, AI-enabled smartphones will further elevate the technological burden, resulting in a premium for onboard space, requiring higher levels of integration and advanced packaging. Energy efficiency, translating to lower power consumption, low latency, pushing the boundary of signal integrity, higher throughput, and connectivity upgrades with 5G advanced and 6G.

Skyworks: Data can be trained in the cloud and deployed to the edge for inference on new inputs.

Skyworks: More complex AI tasks will be processed in the cloud and less complex on device.

Skyworks: In addition to these new usage cases, AI-enabled smartphones will further elevate the technological burden, resulting in premium for onboard space, requiring higher levels of integration and advanced packaging,

Skyworks: Energy efficiency, translating to lower power consumption, low latency, pushing the boundary of signal integrity, and higher throughput and connectivity upgrades with 5G advanced and 6G.

Liam Griffin: These increased technological demands play to SkyWorks' strengths, given our deep customer relationships, exceptional engineer, and strong IP portfolio.

Liam K. Griffin: These increased technological demands play to Skyworks' strengths, given our deep customer relationships, exceptional engineering talent, and strong IP portfolio. Turning to our quarterly business highs, we secured 5G content for premium Android smartphones, including Google Pixel 8a, Samsung Galaxy M, and Oppo Reno 12, among others.

Skyworks: These increased technological demands play to Skyworks' strengths, given our deep customer relationships, exceptional engineering talent, and strong IP portfolio.

Liam Griffin: Turning to our quarterly business sites. We secured 5G content for premium Android smartphones, including Google Pixel 8a, Samsung Galaxy M, and Oppo Reno 12, among others. We supported the launches of Wi-Fi 7 tri-band routers and access points, with NetGear, TP-Link, and Cambium Networks. We accelerated our design when pipeline and automotive, including telematics, infotainment, and CV2X. Despite a challenging demand environment, we continue to make strategic investments in our long-term growth areas, expand our customer base, and diversify the reach of the business.

Skyworks: Turning to our quarterly business highlights, we secured 5G content for premium Android smartphones, including Google Pixel 8a, Samsung Galaxy M, and Oppo Reno 12, among others.

Unknown Executive: We supported the launches of Wi-Fi 7 tri-band routers and access points with Metgear, TP-Link, and Cambium Network. We accelerated our design when pipelining the automotive industry, including telematics, infotainment, and CV2X. Despite a challenging demand environment, we continue to make strategic investments in our long-term growth areas, expand our customer base, and diversify the reach of the business. With that, I will turn the call over to Chris for a discussion of last quarter's performance and our outlook for Q4 of fiscal 2020. Thanks, Liam.

Skyworks: We supported the launches of Wi-Fi 7 tri-band routers and access points with Netgear, TP Link, and Cambium Networks.

Skyworks: We accelerated our design when pipelining automotive, including telematics, infotainment, and CV2X.

Skyworks: Despite a challenging demand environment, we continue to make strategic investments in our long-term growth areas, expand our customer base, and diversify the reach of the business.

Chris: With that, I return the call over to Chris for discussion of last quarter's performance and our outlook for Q4 of Fiscal 2024. Thanks, Liam. Skyworks revenue for the third fiscal quarter of 2024 was $9.6 million, slightly involved in midpoint of our outlook. Mobile was approximately 61% of total revenue, down 21% sequentially. Growth markets were approximately 39% of total revenue, up 1% sequentially. Growth profit was $416 million, with growth margin at 46% in line with expectations. Growth margin grew 100% sequentially, reflecting our ongoing cost reduction actions, and favorable mischief. Also, during Q3, we further reduced our internal inventory, resulting in fixed consecutive quarters of the derivatives.

Skyworks: With that, I will turn the call over to Chris for discussion of last quarter's performance and our outlook for Q4 of fiscal 2024.

Unknown Executive: Skyworks revenue for the third fiscal quarter of 2024 was $906 million, slightly above the midpoint of our outlook. Mobile was approximately 61% of total revenue, down 21% to 0.5%. Broke markets were approximately 39% of total revenue, up 1% significantly. Gross profit was $416 million, with gross margin at 46%, in line with expectations. Cross-margin grew 100 basis points sequentially, reflecting our ongoing cost-reduction actions and favorable mix. Also, during Q3, we further reduced our internal inventory, resulting in six consecutive quarters of reduction.

Chris: Thanks, Liam. Skyworks revenue for the third fiscal quarter of 2024 was $906 million, slightly above the midpoint of our outlook. Mobile was approximately 61% of total revenue, down 21% sequentially.

Chris: Growth markets were approximately 39% of total revenue, up 1% sequentially.

Chris: Gross profit was $416 million with gross margin at 46% in line with expectations.

Chris: Cross-margin grew 100 basis points sequentially, reflecting our ongoing cost reduction actions and favorable mix shift. Also, during Q3, we further reduced our internal inventory, resulting in six consecutive quarters of reductions. Thank you for your time. Thank you.

Chris: Operating expenses were $197 million, reflecting our strategic investments in our technology and product robots. We delivered $219 million of operating income, translating into an operating margin of 24%. We generated $3 million of operating income, and our effective tax rate was 12%, driving that income of $195 million, and in the limited earnings per share of $1.21, which is in line with our guidance. Third fiscal quarter of cash flow from operations was $274 million. Capital expenditures were $24 million, or less than 3% of revenue, resulting in a free cash flow of $249 million. Yesterday, we generated $1.3 billion of free cash flow, or 40% free cash flow margin.

Unknown Executive: Operating expenses were $197 million, reflecting our strategic investments in our technology and product roadmap. We delivered $219 million of operating income, translating into an operating margin of $24 billion. We generated $3 million of profit income, and our effective tax rate was 12%, driving net income of $195 million and an unlimited earnings per share of $1.21, which is in line with our guidance. Third fiscal quarter cash flow from operations was $274 million, and capital expenditures were $24 million, or less than 3% of revenue, resulting in free cash flow of $249 million.

Chris: Operating expenses were $197 million, reflecting our strategic investments in our technology and product roadmaps.

Chris: We delivered $219 million of operating income, translating into an operating margin of 24%.

Chris: We generated $3 million of other income, and our effective tax rate was 12%, driving net income of $195 million and a diluted earnings per share of $1.21, which is in line with our guidance.

Chris: Third fiscal quarter cash flow from operations was $274 million.

Chris: Capital expenditures were $24 million or less than 3% of revenue, resulting in a free cash flow of $249 million. Year-to-date, we generated $1.3 billion of free cash flow or 40% free cash flow margin.

Unknown Executive: Yesterday, we generated $1.3 billion of free cash flow, or a 40% free cash flow margin. We continue to drive robust cash flow through consistent levels of profitability, careful work in capital management, and moderating capex intentions. During fiscal Q3, we paid $109 million in dividends and repurchased 764,000 shares of our common stock for a total of $77 million.

Chris: We continued to drive robust cash flow through consistent levels of profitability, careful work in capital management, and moderating cap-backs intensity. During fiscal Q3, we paid $109 million in dividends and repurchased 764,000 shares of our common stock for a total of $77 million. Cash and investments grew to nearly 1.3 billion, and we have 1 million in debt, providing us excellent optionality. We remained committed to delivering shareholder value through a disciplined approach to capital allocation.

Chris: We continue to drive robust cash flow through consistent levels of profitability, careful work in capital management, and moderating capex intensity.

Chris: During fiscal Q3 we paid $109 million in dividends and repurchased 764,000 shares of our common stock for a total of $77 million.

Unknown Executive: Cash and Investments grew to nearly $1.3 billion, and we have $1 billion in debt, providing us with excellent optionality. We remain committed to delivering shareholder value through a disciplined approach to capital allocation. Given our conviction in Skyworks' long-term strategic outlook and consistent, strong cash generation, we announced a 3% increase to our quarterly dividend to $0.70 per share.

Chris: Cash and Investments grew to nearly $1.3 billion and we have $1 billion in debt, providing us excellent optionality.

Chris: We remain committed to delivering shareholder value through a disciplined approach to capital allocation.

Chris: Given our conviction and sourced long-term strategic outlook and consistent strong cash generation, we announced a 3% increase to our quarterly dividend to 70 cents per share.

Chris: Given our conviction in Skyworks' long-term strategic outlook and consistent strong cash generation, we announced a 3% increase to our quarterly dividend to $0.70 per share.

Chris: Now, let's move on to our output for Q4 of Fiscal 2024. We anticipate revenue of 1 billion to 1 billion and 40 million. We expect our mobile business to be up approximately 20% sequentially, as demand and supply patterns appear to be normalizing. In broad markets, we anticipate modest improvements representing three consecutive quarters of sequential growth. Growth margin is projected to be in the range of 46 to 47%, increasing 50 basis points equitably at the midpoint. We anticipate growth margin expansion during the remainder of 2024, driven by our cost reduction actions, favorable makeshift, and higher utilization rates.

Unknown Executive: Now let's move on to our output for Q4 of fiscal 2024. We anticipate revenue of $1 billion to $1,040,000,000. The Ultimate Partner Solutions Co. Ltd., as demand and supply patterns appear to be normalized. In broad markets, we anticipate modest improvements representing three consecutive quarters of sequential growth. Gross margin is projected to be in the range of 46% to 47%, increasing 50 basis points sequentially at the mid-term. We anticipate gross margin expansion during the remainder of 2024, driven by our cost reduction actions, favorable next shift, and higher utilization rates.

Chris: Now, let's move on to our Outlook for Q4 of Fiscal 2024.

Chris: We anticipate revenue of $1 billion to $1,040,000,000. We expect our mobile business to be up approximately 20% sequentially as demand and supply patterns appear to be normalizing.

Chris: In broad markets, we anticipate modest improvements, representing three consecutive quarters of sequential growth.

Chris: Gross margin is projected to be in the range of 46 to 47 percent, increasing 50 basis points sequentially at the midpoint.

Chris: We anticipate gross margin expansion during the remainder of 2024, driven by our cost reduction actions, favorable next shift, and higher utilization rates.

Chris: We expect operating expenses in the range of 197 to 203 million as we continue to make strategic investments in mobile and broad markets to drive share bans and increase the percentage. Below the line, we anticipate roughly 3 million and another income and a fact that fax rate of 12% and a limited share balance of approximately 161 million shares. Accordingly, at the midpoint of the revenue range of 1 billion and 20 million, we intend to deliver the rooted earnings per share of $1.52.

Unknown Executive: We expect operating expenses in the range of $197 to $203 million, as we continue to make strategic investments in mobile and broad markets to drive the share base and increase the facility. Below the line, we anticipate roughly $3 million in other income, an effective tax rate of 12%, and a diluted share count of approximately 161 million shares. Accordingly, at the midpoint of the revenue range of $1,020,000,000, we intend to deliver a diluted earnings per share of $1.52.

Chris: We expect operating expenses in the range of $197 to $203 million as we continue to make strategic investments in mobile and broad markets to drive share gains and increase de-facilitation.

Chris: Below the line, we anticipate roughly $3 million in other income, an effective tax rate of 12%, and a diluted share count of approximately 161 million shares.

Chris: Accordingly, at the midpoint of the revenue range of $1,020,000,000, we intend to deliver diluted earnings per share of $1.52.

Operator: Operator, let's open the line for questions. Thank you. Ladies and gentlemen, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, simply press star 11 again.

Speaker Change: Operator, let's open the line for questions.

Unknown Executive: Thank you, ladies and gentlemen. To ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. To withdraw your questions, simply press star 1-1 again. Given time constraints, please limit yourself to one question and one follow-up. Please stand by while we compile the county roster.

Speaker Change: Thank you. Ladies and gentlemen, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, simply press star 11 again. Given time constraints, please limit yourself to one question and one follow-up. Please stand by while we compile the county roster.

Matt Renze: Now, first question, coming from the line up, Matt Renze with CityColonial on his open. Yes, thank you very much. Good afternoon, everybody. I guess from my first question, your company and all of your industry peers have been through this, and it's great to see us get back on sort of a sequential growth from a revenue perspective and a chain of that, which I assume continue as you guys come out of the equilibrium sell-through revenue level is that this business supports right now. We were obviously overshipping for a bit and then have undershipped for a bit to try to clear the channel, but any sense of where you are right now on the shift in levels you guys are guiding to relative to end consumption and when we might get back to equilibrium.

Operator: Given time constraints, please limit yourself to one question and one follow-up. Please stand by while we compile the county roster. Now, the first question comes from the line of Matt Ramsay with City Colony. Line is open. Yes, thank you very much. Good afternoon, everybody.

Speaker Change: Now, first question coming from the line of Matt Ramsay with City Colony. Line is open.

Matthew D. Ramsay: Guys, I guess from my first question, your company and all of your industry peers have been through this cyclicality in broad markets for you guys, and lots of industrial businesses for your competition. And it's great to see us get back on sort of sequential growth from a revenue perspective and a chain of that, which will, I assume, continue as you guys come out of the cyclicality here. But as you've revisited that diverse set of businesses, I mean, it's a question that a lot of companies in this space get.

Matthew D. Ramsay: Yes, thank you very much. Good afternoon, everybody. Guys, I guess from my first question, your company and all of your industry peers have been through this.

Speaker Change: cyclicality in broad markets for you guys and lots of industrial businesses for your competition and

Speaker Change: It's great to see us get back on sort of a sequential growth from a revenue perspective and a chain of that, which will, I assume, continue as you guys come out of the cyclicality here.

Speaker Change: As you revisited that diverse set of businesses, I mean, it's a question that a lot of companies in this space get. Any sense now of what the

Matthew D. Ramsay: Any sense now of what the, I don't know, kind of equilibrium sell-through revenue level is that this business supports right now? We were obviously overshipping for a bit and then have undershipped for a bit to try to clear the channel.

Speaker Change: I don't know, kind of equilibrium.

Speaker Change: sell through revenue level is that this business supports right now. We were obviously overshipping for a bit and then have undershipped for a bit to try to clear the channel. But any sense of where you are right now on the shipment levels you guys are guiding to relative to end consumption and when we might get back to equilibrium. Thanks.

Liam K. Griffin: But any sense of where you are right now on the shipment levels you guys are guiding to relative to end consumption and when we might get back to equilibrium? Yeah, sure. This is Liam.

Liam Griffin: Thanks. Yeah, sure.

Liam K. Griffin: So if we start to take a look at those markets, we are actually gaining some share and driving revenue opportunities in the auto industry. We're looking at more and more opportunities, and Safety Systems, driver assistance, we talked a little bit about that. All those markets are actually doing quite well, and we have a lot of room to grow. Then moving into some other markets that are quite powerful today are the Wi-Fi cycles. We have a Wi-Fi 7 upgrade today that is going really well, very important technology, lots of volume coming. Certainly an extension here as we get to more and more.

Liam Griffin: This is Liam. So if we start to take a look at those markets, we are actually gaining some share and driving revenue. You know, we're seeing opportunities in auto. that has substantially been grown. We see the connected car as a significant opportunity for Skyworks. We already have meaningful design wins, and I know we can do much more. We're looking at more and more opportunities in safety systems, driver assist. We talked a little bit about that. All those markets are actually doing quite well, and we have a lot of room to grow. Then moving into some other markets that are quite powerful today are the Wi-Fi cycles.

Speaker Change: Yeah, sure, this is Liam. So if we start to take a look at those markets, we are actually gaining some share and driving revenue. You know, we're seeing...

Speaker Change: Opportunities in auto that are substantially being grown. We see the connected car as a significant opportunity for Skyworks. We already have meaningful design wins and I know we can do much more. We're looking at more and more opportunities.

Speaker Change: and Safety Systems, Driver Assist, we talked a little bit about that.

Speaker Change: All those markets are actually doing quite well and we have a lot of room to grow.

Speaker Change: Then moving into some other markets that are quite powerful today.

Liam Griffin: We have a Wi-Fi 7 upgrade today that is going really well, very important technology, lots of volume coming, and certainly an extension here so we get to more and more opportunities. Home enterprise, commercial, industrial, wearables—all of these markets fall into that category and have been really powerful for us, and we expect that to continue. Further, we have some great opportunities in infrastructure, leveraging networking and cloud. We talked about 800 gig and 1.6 terabit speeds. A lot of really powerful vectors there that can come about here as we move into the next quarter. Got it. Thanks, Liam.

Speaker Change: are the Wi-Fi cycles. We have a Wi-Fi 7 upgrade today that is going really well.

Speaker Change: Very important technology, lots of volume coming, and certainly an extension here as we get to more and more opportunities. Home enterprise, commercial, industrial, wearables, all of these markets fall into that category and have been really powerful for us.

Liam K. Griffin: Home Enterprise, Commercial, Industrial, Wearables, all of these markets fall into that category and have been really powerful, and we expect that. And further, we have some great opportunities in infrastructure, leveraging networking and the cloud. We talked about 800 gigabit and 1.6 terabit speeds. A lot of really powerful vectors there that can come about.

Speaker Change: And we expect that to continue.

Speaker Change: And further, we have some great opportunities in infrastructure, leveraging networking, cloud. We talked about 800 gig and 1.6 terabit speeds, a lot of really powerful vectors there that can come about here as we move into the next quarter.

Matthew D. Ramsay: Thanks, Liam. I guess as my follow-up question, if we look into the wireless market, there, it seems like the market has some fairly bullish expectations on units with your largest customer. And you guys talked last quarter about how the content changed there a little bit. I just wonder if you could give us any early thoughts, Chris, on sort of the shape of the year or this cycle in your wireless business. Maybe you have a chance to lean into Android a little bit more.

Chris: I guess this is my follow-up if we look into the wireless market. It seems like the market has some fairly bullish expectations on units with your largest customer, and you guys had talked last quarter about how the content that changed there a little bit.

Speaker Change: Got it. Thanks, Liam. I guess as my follow-up, if we look...

Speaker Change: into the wireless market, it seems like the market has some fairly bullish expectations on units with your largest customer. You guys had talked last quarter about how the content had changed there a little bit.

Chris: I just wonder if you could give us any early thoughts, Chris, on sort of the shape of the year or this cycle in your wireless business. Maybe you have a chance to lean into Android a little bit more, and there's that dynamics in both directions that I mentioned with Cupertino. If you have any early thoughts, we'd appreciate it. I know it's early to ask about that, but I get asked about it a lot. Yeah, look, I mean there's a lot of opportunity there. We are seeing stronger signals in demand for sure. We're starting to see that actually accelerate leveraging some of the more unique products that we have within the SkyWorks bench.

Speaker Change: I just wonder if you could give us any early thoughts.

Speaker Change: Chris on sort of the shape of...

Unknown Speaker: Unknown Speaker The year or this cycle in your wireless business. Maybe you have a chance to lean into Android a little bit more. And there's the dynamics in both directions that I that I mentioned with with Cupertino. So if you have any early thoughts, we'd appreciate it. I know it's early to ask about that. But I get asked about it a lot.

Unknown Executive: And there's that dynamics in both directions that I mentioned with Cupertino. So if you have any early thoughts, we'd appreciate it. I know it's early to ask about that, but I get asked about it a lot.

Unknown Executive: Yeah, look, I mean, there's a lot of opportunity there. We are seeing stronger signals of demand, for sure. We're starting to see that actually accelerate, leveraging some of the more unique products that we have within the Skyworks bench. So there's a lot of opportunity there. Our outlook looks very good as we look forward. The technologies that we're working on right now are really difficult. They're very, very challenging.

Speaker Change: Yeah, look, I mean, there's a lot of opportunity there. We are seeing stronger signals in demand for sure.

Speaker Change: We're starting to see that actually accelerate.

Rajvindra S. Gill: Unknown Executive, Rajvindra Gill

Liam Griffin: There's a lot of opportunity there. Our outlook looks very good as we look forward. The technologies that we're working on right now are really difficult. They're very, very challenging. It takes great companies and great people to make it happen. As you've heard many, many times, our labs, the FADS approach really does work. There's a lot of customization as we start to grow into some of these new markets, mobile, and others. We feel really good about that, and I think it's an opportunity for us to continue to move forward. We're just beginning to now engage in AI, and we see that in the phone.

Unknown Executive: It takes great companies and great people to make it happen. As you've heard many, many times, our labs-to-fabs approach really does work. There's a lot of customization as we start to grow into some of these new markets, like mobile, and others.

Speaker Change: It takes great companies and great people to make it happen.

Rajvindra S. Gill: As you've heard many, many times, our labs-to-fabs approach really does work. There's a lot of customization as we start to grow into some of these new markets.

Unknown Executive: So we feel really good about that, and I think there's an opportunity for us to continue to move forward. We're just beginning to engage in AI, and we see that in the phone. We definitely see that as a major, major catalyst for smartphones. And I'll tell you, I don't think there's a company that can do that better than Skyworks.

Rajvindra S. Gill: Mobile and others. So we feel really good about that and I think there's an opportunity for us to continue to move forward.

Rajvindra S. Gill: We're just beginning to now engage...

Liam Griffin: We definitely see that as a major, major catalyst for smartphones. I'll tell you, I don't think there's a company that can do that better than Skyworks. We look forward to the opportunity. We've got the key pieces in place, and it's a time for us to just put up a little bit more revenue here. Appreciate the color, guys. Thank you. Try. Thank you.

Rajvindra S. Gill: in AI and we see that in the phone. We definitely see that as a major, major catalyst for smartphones. And I'll tell you, I don't think there's a company that can do that better than Skyworks. So we look forward to the opportunity. We've got the key pieces in place.

Unknown Executive: So we look forward to the opportunity. We've got the key pieces in place, and now it's time for us to just put up a little bit more revenue. Appreciate the call, guys. Thank you.

Rajvindra S. Gill: And it's time for us to just put up a little bit more revenue here.

Speaker Change: Appreciate the call guys. Thank you.

Chris Caso: One more for next question. And our next question coming from the liner. Chris Caso, what research do you want to solve, Ben?

Speaker Change: Thank you. One moment for our next question.

Operator: And our next question comes from the line-up: Chris Caso from Wolf Research, Atlanta, South Bend. Yes, thank you. Good evening.

Speaker Change: And our next question, coming from the line-up, Chris Caso from Wolf Research Alliance, open.

Chris: Yes, thank you. Good evening. But first question is on broad markets, and it seems like that revenue is just kind of bouncing along the bottom here. You mentioned expectations for some modest growth going forward. Can you speak to the different end markets within broad markets? I didn't imagine that some of the consumer markets that corrected earlier are perhaps some of the ones that are coming out, but I know some of the industrial markets still have some inventory to go through. What's the stage of the inventory correction and how much of that business is normalized and how much of that still has customer inventory that needs to be burned through?

Christopher Caso: The first question is on broad markets. And, you know, it seems like that revenue is just kind of bouncing along the bottom here. You mentioned expectations for some modest growth going forward. Can you speak to the different end markets within broad markets? You know, I imagine that some of the consumer markets that corrected earlier are perhaps some of the ones that are coming out, but I know some of the industrial markets still have some inventory to go through.

Christopher Adam Jackson Rolland: Yes, thank you. Good evening. The first question is on broad markets. And, you know, it seems like that that revenue is just kind of bouncing along the bottom here. You mentioned

Rajvindra S. Gill: Unknown Executive, Rajvindra Gill

Christopher Caso: You know, what's the stage of the inventory correction and, you know, kind of how much of that business is normalized, and how much of that still has customer inventory that needs to be burned through? Yes, Chris, great question.

Rajvindra S. Gill: Unknown Executive, Rajvindra Gill

Chris: Yes, Chris, great question. So, first of all, we did call out broad markets at the bottom in the December quarter, and so we really turned a corner there, and we have seen now two consecutive quarters of sequential growth, and we do expect further growth in the September quarter that's incorporated in our guidance, and we do, beyond the September quarter, further sequential growth and actually an acceleration of that sequential growth returning back to year-over-year growth in our broad markets business. Now, as you know, there's multiple different end markets there. As it relates to consumer enterprise where we mainly play with our connectivity solutions, I would say that's getting a more stable environment.

Unknown Executive: So first of all, we did call out broad markets at the bottom in the December quarter. And so we really turned a corner there. And we have now seen two consecutive quarters of sequential growth, and we do expect further growth in the September quarter, that's incorporated in our guidance. And we do beyond the September quarter further sequential growth and actually an acceleration of that sequential growth, returning back to year-over-year growth in our broad markets business.

Rajvindra S. Gill: Yes, Kris, great question.

Speaker Change: First of all, we did call out...

Speaker Change: Broke markets at the bottom in the December quarter.

Speaker Change: And so we really turned a corner there, and we have seen now two consecutive quarters of sequential growth, and we do expect...

Speaker Change: Further growth in the September quarter that's incorporated in our guidance and we do beyond the September quarter further sequential growth and actually an acceleration of that sequential growth returning back to year over year growth in our broad markets business.

Speaker Change: Now, as you know, there's multiple different end markets there.

Unknown Executive: Now, as you know, there are multiple different end markets there. As it relates to consumer enterprise, where we mainly play with our connectivity solutions, I would say that's getting a more stable environment. Most of the inventory correction is over there. And we are growing the business there, mostly because of a content uplift story, right? As Liam indicated, Wi Fi 7, a lot of good traction there.

Speaker Change: As it relates to consumer enterprise where we mainly play with our connectivity solutions I would say that's getting a more stable

Chris: Most of the inventory correction is over there, and we are growing the business there mostly because of a content uplift story, as Liam indicated, Wi-Fi 7, a lot of good traction there. That's a big step up in content compared to Wi-Fi 6. Some of those other end markets, there's still an inventory correction ongoing. Automotive industrial markets, very similar to what our peers and competitors have seen in that market. But again, as Liam indicated, we have strong design wind momentum there. We have great opportunities in EVs with our power resolution or in the connected car, with our connectivity solutions, Wi-Fi, 5G digital radios, and so we are able to bug the trend there and see some stronger revenue growth opportunities.

Speaker Change: Most of the inventory correction is over there.

Liam: And we are growing the business there mostly because of a content uplift story, all right? As Liam indicated, Wi-Fi 7, a lot of good traction there. That's a big step up in content compared to Wi-Fi 6.

Unknown Executive: That's a big step up in content compared to Wi Fi 6. For some of those other end markets, there's still an inventory correction ongoing. Automotive and industrial markets, very similar to what our peers and competitors have seen in that market. But again, as Liam indicated, we have strong design momentum there. We have great opportunities in EVs with our power isolation or in the connected car with our connectivity solutions, Wi-Fi, 5G, and digital radios. And so we are able to buck the trend there and see some stronger revenue growth opportunities. Thank you.

Liam: Some of those other end markets, there's still an inventory correction ongoing. Automotive, industrial markets.

Liam: Very similar to what our peers and competitors have seen in that market. But again, as Liam indicated, we have strong design momentum there. We have great opportunities.

Liam: In EVs with our power isolation, or in the connected car with our connectivity solutions, Wi-Fi, 5G, digital radios.

Liam: And so we are able to buck the trend there and see some stronger revenue growth opportunities.

Chris: Thank you. As a follow-up, I want to ask a question on gross margins and understand you're guiding up 50 basis points for the September quarter. I know that you've taken some cost reduction actions, depreciations coming down. What would you say is the trajectory for gross margins, as perhaps some revenue comes back and utilization comes up? What's sort of the slope and the destination for the gross margins as those things occur? Yes, Chris. There as well, March was the bottom for us. At 45%, you saw already 100 basis points improvements in the June quarter, and we just guided another 50 basis points improvement going into the September quarter, and we do expect further gross margins improvement in the December quarter.

Christopher Caso: As a follow-up, I want to ask a question on gross margins and understand that you're guiding up 50 basis points for the September quarter. I know that you've taken some cost reduction actions, and depreciations are coming down. You know, what would you say is the trajectory for gross margins as, you know, perhaps some revenue comes back and utilization comes up? You know, what's the sort of slope and the definition for gross margins as those things occur? Yes, Chris.

Speaker Change: Thank you. As a follow-up, I want to ask a question on gross margins and understand you're guiding up 50 basis points for the September quarter.

Speaker Change: I know that you've taken some cost reduction actions, depreciations coming down.

Speaker Change: What would you say is the trajectory for gross margins as, you know, perhaps some revenue comes back and utilization comes up? You know, what's sort of the slope and the destination for the gross margins as those things occur?

Unknown Executive: So, there as well, March was the bottom for us at 45%. You saw already 100 basis points of improvements in the June quarter. And we just got another 50 basis points improvement going into the September quarter, and we do expect further gross margin improvement in the December quarter. Obviously, then, there is seasonality in our business. But when I look at fiscal 25 or 26 and beyond, we do expect further gross margin improvement. And it's basically a combination of multiple factors, right?

Speaker Change: Yes, Chris, so there as well, March was the bottom for us at 45%.

Christopher Adam Jackson Rolland: You saw already 100 basis points improvements in the June quarter, and we just got another 50 basis points improvement.

Speaker Change: going into the September quarter. And we do expect further gross margins improvement in the December quarter. Obviously, then there is seasonality in our business. But when I look at fiscal 25 or 26 and beyond, we do expect further gross margins improvement. And it's basically a combination of multiple factors, right? We continue to execute on cost reductions into our factory. As the top line is growing, we are getting better utilization into our factories.

Chris: Obviously, then there is seasonality in our business, but when I look at fiscal 25 or 26 and beyond, we do expect further gross margins improvement, and it's basically a combination of multiple factors. We continue to execute on cost reductions into our factory. As the top line is growing, we are getting better utilization into our factories. We are bringing higher value products to the market, for which we are getting paid, and we have a little bit of a tailwind from a mix point of view, as broad markets is growing at higher than above gross margins. We think we are on the right track here, and we will see ongoing further gross margins improvement.

Speaker Change: We are bringing higher value products to the market for which we are getting paid and we have a little bit of a tailwind from a mixed point of view as broad markets.

Unknown Executive: We continue to execute on cost reductions in our factory. As the top line is growing, we are getting better utilization out of our factories. We are bringing higher-value products to the market, for which we are getting paid. And we have a little bit of a tailwind from a mixed point of view, as broad markets are growing at higher than above gross margins. So, we think we are on the right track here, and we will see ongoing further gross margin improvement. Thank you. Thank you. And our next question comes from the line-up. This is Timothy Arcuri with UBS. Your line is open. Thanks a lot.

Speaker Change: is growing at higher than above gross margins. So we think we are on the right track here and we will see ongoing further gross margins improvement.

Unknown Executive: Thank you.

Timothy Arcuri: And our next question coming from the line-up, Timothy Arcuri with UBS, you're on his open. Thanks a lot. Chris, can you give us a sense of how big the large customer was for June and then in September? It's ranged between mid-50s when Android was higher to the high 60s last year. Any sense of how to think about how that's going to trend and what you're embedding in the guidance?

Speaker Change: Thank you.

Speaker Change: Thank you. And our next question coming from the line up, Timothy Arcuri with UBS. The line is open.

Timothy Michael Arcuri: Um, Chris, can you give us a sense of how big the large customer was for June and then in September, it's ranged between the mid-50s when Android was higher to the high 60s last year. Any sense of how to think about how that's going to trend and what you're embedding in the guidance? Yeah, so our largest customer in the June quarter was approximately 65% of total revenue. That was down sequentially, maybe a little bit more than normal seasonality.

Timothy Michael Arcuri: Thanks a lot. Um, Chris, can you give us a sense of how big the large customer was for June and then in September , um, it's ranged?

Timothy Michael Arcuri: Between mid-50s, when Android was higher to the high 60s last year, any sense of how to think about how that's going to trend and what you're embedding in the guidance?

Chris: Yes, so our largest customer in the June quarter was approximately 65% of total revenue. That was down sequentially, maybe a little bit more than normal seasonality, and we explained that at the last earnings call, where we saw some build-up of inventory in March, April, time frame, and so we pushed the breaks in June. But looking ahead now into September, we think the largest customer will be slightly above 65% of total revenue, and it will be up all or about 20% sequentially as we execute and support our large customer in ramping up new products that they are bringing to market.

Speaker Change: Yes, so our largest customer in the June quarter was approximately 65 percent.

Speaker Change: That was down sequentially Maybe a little bit more than normal seasonality And we explained that at the last earnings call where we saw some build-up of inventory in March-April timeframe and so we pushed the brakes in June

Unknown Executive: And we explained that at the last earnings call, where we saw some buildup of inventory in the March, April timeframe, and so we pushed the brakes in June. But looking ahead now into September, we think the largest customer will be slightly above 65% of total revenue, and it will be up by or about 20% sequentially as we execute and support our large customer in ramping up new products that they are bringing to market.

Speaker Change: But looking ahead now into September , we think the largest customer will be slightly above 65% of total revenue, and it will be up on or about 20% sequentially, right, as we execute.

Speaker Change: and support our large customer in ramping up new products that they are bringing to market.

Chris: Thanks, Chris. Can you give us a sense also of what December, I mean December is kind of all over the map seasonally, but it's up in the range of 10% usually? Is that a reasonable bogey to think about for December? Yes, so we only guide one quarter at a time, and I would really stick with that. But yes, it's clear that we do expect a further sequential growth going into the December quarter, but we will guide next quarter on that.

Unknown Executive: Thanks, Chris. And then, can you give us a sense also of what December is like? I mean, December is kind of all over the map, seasonally, but it's, it's up in the range of 10%. Usually, is that a reasonable bogeyman to think about for December? Yeah, so we only have one quarter at a time, and I would really stick with that, but it's clear that we do expect further sequential growth going into the December quarter, but we will guide next quarter on that. Okay, Chris.

Speaker Change: Thanks Chris. And then can you give us a sense also of what December , I mean December's kind of all over the map seasonally, but it's it's up in the range of 10% usually. Is that a reasonable bogey to think about for December ?

Speaker Change: Yes, so we only got one quarter at a time, and I would really stick with that, but it's clear that we do expect further sequential growth.

Speaker Change: Going into the December quarter, but we will guide next quarter on that.

Unknown Executive: Okay, Chris, thank you. Thank you.

Christopher Adam Jackson Rolland: Okay, Chris, thank you.

Christopher Brolin: And our next question coming from the line-up. Christopher Brolin with Cisco Hannah, you let us help in. Hi guys, thanks for the question. You referred to some AI smartphones, and I think we all got excited about some new AI announcements this quarter, driving a refresh cycle. So I guess my first question is how much of this kind of acceleration or pulling in the refresh cycle did you see or is in your September guidance? Did you see kind of the same excitement that we all kind of felt? Or do you think this is something really to play out December and onward as we move through time and new product launches?

Timothy Michael Arcuri: Thank you. Thank you. And our next question comes from the line-up: Christopher Rolland, with Saska Hanna, and Yolanda Saltman. Hi guys, thanks for the question.

Speaker Change: Thank you. And our next question coming from the line-up.

Yolanda Thalpen: Christopher Rolland with Susquehanna, Yolanda Thalpen

Christopher Adam Jackson Rolland: You referred to some AI smartphones, and I think we all got excited about some new AI announcements this quarter, driving a refresh cycle. So I guess my first question is, how much of this kind of acceleration or pulling in the refresh cycle did you see or is in your September guidance? Did you see kind of the same excitement that we all kind of felt, or do you think this is something really going to play out in December and onward as we move through time and new product launches? Yeah, great question.

Christopher Adam Jackson Rolland: Hi guys, thanks for the question.

Christopher Adam Jackson Rolland: You referred to some AI smartphones, and I think we all got excited about some new AI announcements this quarter driving a refresh cycle.

Christopher Adam Jackson Rolland: So, I guess my first question is, how much of this kind of acceleration or pulling in the refresh cycle did you see or is in your September guidance?

Speaker Change: Did you see kind of the same excitement that we all kind of felt, or do you think this is something really to play out December and onward as we move through time and new product launches?

Liam Griffin: Yeah, great question. I think this is the early stage of a very, very long ramp in mobile. There's no question that AI is going to make an impact. I really believe that, and I think most of the market does, but what comes with it is also a challenge. You have to have very, very difficult challenges to be able to manage the AI world. Fortunately, with SkyWorks, this is what we do all the time, and we're a deep technology company. We know how to handle the really challenging opportunities. We're dealing with higher levels of MIMO, more paths, uplink and downlink, bringing in carrier aggregation.

Unknown Executive: I think this is the early stage of a very, very long ramp in mobile. There's no question that AI is going to make an impact. I really believe that, and I think most of the market does, too. But what comes with it is also a challenge. You have to have very, very difficult challenges to be able to manage the AI world.

Speaker Change: Yeah, great question.

Speaker Change: I think this is the early stage of a very, very long ramp in mobile.

Speaker Change: There's no question that AI is going to make an impact. I really believe that and I think most of the market does. But what comes with it is also a challenge.

Speaker Change: You have to have very, very difficult...

Speaker Change: challenges to be able to manage the AI world. Fortunately, with Skyworks, this is what we do all the time. And we're a deep technology company.

Unknown Executive: Fortunately, with Skyworks, this is what we do all the time, and we're a deep technology company. We know how to handle the really challenging opportunities. We're dealing with higher levels of MIMO, more paths, uplink and downlink, bringing in carrier aggregation. Better filtering, and you know that at Skyworks. Really, really important to get those filters down.

Speaker Change: We know how to handle the really challenging opportunities. We're dealing with higher levels of MIMO, more paths, uplink and downlink, bringing in carrier aggregation.

Liam Griffin: Better filtering, and you know that Skyworks is really, really important to get those filters down and new frequency bands. So it's a very challenging ask to deliver, but fortunately it's Skyworks. These are technologies that we understand. So we are looking forward to this.

Rajvindra S. Gill: Unknown Executive, Rajvindra Gill

Unknown Executive: And new frequency bands. So, it's a very challenging ask to deliver, but fortunately, at Skyworks, these are technologies that we understand. So we are looking forward to this. It's in the very early stages, but I believe, and our team believes, that we're going to have a very meaningful cycle in mobile led by these technological innovations. Thank you very much.

Liam Griffin: It's very early stages, but I believe in our team believes that we're going to have a very meaningful cycle and mobile led by these technology innovations. Thank you very much for that.

Speaker Change: So, we are looking forward to this. It's very early stages, but I believe and our team believes that we're going to have a very meaningful cycle in mobile led by these technology innovations.

Christopher Adam Jackson Rolland: My next question is about Android. So you talked about a couple of cool Android phones, Google, Samsung, Galaxy M, Oppo. Can you point to any marquee sockets, either new areas that you're playing with or big, chunky sockets?

Liam Griffin: My next question is around Android. So you talked about a couple of cool Android phones: Google, Samsung Galaxy M, OPPO. Can you point to any marquee sockets, either new areas that you're playing or big chunky sockets. And then just more generally, how would you describe the Android environment and kind of your outlook there and revenue contribution moving forward? Yeah, that's great. I mean we are certainly engaged in Android and most specifically with Samsung and Google. There's some great products there. The Pixel phone is an amazing phone. There's other products as well. Great partnership with Google, actually, and the technology inside is very rich, very, very impactful.

Speaker Change: Thank you very much for that. My next question is around Android. So you talked about a couple of cool Android phones, Google.

Speaker Change: Samsung, Galaxy M, Oppo.

Speaker Change: Can you point to any marquee sockets, either new areas that you're playing or big, chunky sockets? And then just more generally, how would you describe the Android environment and kind of your outlook there and revenue contribution moving forward?

Unknown Executive: And then just more generally, how would you describe the Android environment and kind of your outlook there and revenue contribution moving forward? Yeah, that's great. I mean, we are certainly engaged in the Android space and, most specifically, with Samsung and Google. There are some great products there. The Pixel phone is an amazing phone.

Speaker Change: Yeah, that's great. I mean, we are certainly engaged on Android, and most specifically with Samsung and Google. There's some great products there. The Pixel phone is an amazing phone. There's other products as well. Great partnership with Google, actually.

Unknown Executive: There are other products as well. A great partnership with Google, actually. And the technology inside is very rich, very, very impactful. So we should see more and more of that from Skyworks, probably less of the low end in China, of course. But the higher end in Android has been really powerful, and I think there's a lot more we can do. Thanks, Liam. I appreciate it. Our next question comes from the line-up. Crack Alice would be Riley's security if he let us open it.

Speaker Change: And the technology inside is very rich, very, very impactful. So we should see more and more of that from Skyworks, probably less of the low end in China of course, but the higher end in Android has been really powerful and I think there's a lot more we can do from there.

Liam Griffin: So we should see more and more of that from Skyworks, probably less of the low end in China, of course. But the higher end in Android has been really powerful. I think there's a lot more we can do from there. Thanks, Liam. Appreciate it. Thank you.

Liam: Thanks, Liam. Appreciate it.

Craig Ellis: And our next question coming from the lineup. Craig Ellis would be right. Security if you want to open. Yeah, thanks for taking the question, and Liam, nice to hear the enthusiasm about a smartphone recess repair cycle in the middle of the 5G cycle. I wanted to follow up on that. So as you look at the opportunity for AI to drive more up and downlink content, increased career aggregation, and some of the other technologies that the company specializes in. Can you talk about the content gain opportunities that might exist in Gen 2 and Gen 3 smartphones because I think from commentary a quarter ago.

Speaker Change: Thank you. And our next question, coming from the line of...

Unknown Caller: Yeah, thanks for taking the question. And Liam, nice to hear the enthusiasm about a smartphone refresh cycle in the middle of the 5G cycle. I wanted to follow up on that.

Speaker Change: Craig Ellis would be Riley's security if he let us open.

Craig Ellis: Yeah, thanks for taking the question, and Liam, nice to hear the enthusiasm about...

Craig Ellis: A Smartphone Refresh Cycle in the Middle of the 5G Cycle. I wanted to follow up on that. So, as you look at the opportunity for AI to drive more up and down links,

Unknown Caller: So as you look at the opportunity for AI to drive more up and down link content, increased carrier aggregation, and some of the other technologies that the company specializes in, can you talk about the content gain opportunities that might exist in Gen 2 and Gen 3 smartphones? Because I think from commentary a quarter ago, we may not be looking at so much in this year's version of your largest customer handset. But what could we look at in the coming years from AI on the content gain side? Yeah, I think this is going to be a long, long run here and a successful run in the industry. The expectation.

Craig Ellis: Content, Increased Carrier Aggregation, and

Speaker Change: and some of the other technologies that the company...

Speaker Change: specializes in, can you talk about the content gain opportunities that might exist in

Speaker Change: Gen 2 and Gen 3 smartphones, because I think from commentary a quarter ago, we may not be looking at so much in this year's version of your largest customer handset, but what could we look at in coming years from AI on the content game side?

Liam Griffin: We may not be looking at so much in this year's version of your largest customer handset. But what could we look at in coming years from AI on the content gain set. Yeah, I think this is going to be a long, long run here and a successful run in the industry if the technologies come about the way we see it. So we have some of this technology in place right now, and we're able to capitalize on that, but this is going to be Chris is going to be a long term cycle here. Very meaningful. I can to the first 5G cycle, and my expectation, but I think it's going to be much more powerful.

Speaker Change: Yeah, I think this is going to be a long, long run here and a successful run in the industry.

Speaker Change: [inaudible]

Unknown Executive: But I think it's going to be much more powerful. The challenges are, you know, much more demanding, and more challenging. Fortunately, for Skyworks, we can do a lot of this stuff in house. Very difficult, but we can do it in house, and we can, craft and curate, account by account, to get it right. Because we're not seeing one size fits all here.

Speaker Change: expectation, but I think it's going to be much more powerful. The challenges are, you know, much more demanding, more challenging. Fortunately for Skyworks, we can do a lot of this stuff in house, very difficult, but we can do it in-house and we can, we can craft and curate.

Liam Griffin: The challenges are, you know, much more demanding, more challenging. Fortunately for Skyworks, we can do a lot of this stuff in house. Very difficult, but we can do it in house and we can craft and curate account by account to get it right because we're not seeing one fits all here. This is going to be a customized platform when you get into AI, and each customer has its own needs and specs. So it's early innings. The companies that are deeply involved are going to win; the customers that we pick are also going to be really important to us, but we're looking forward to it.

Rajvindra S. Gill: Unknown Executive, Rajvindra Gill

Unknown Executive: This is going to be a customized platform when you get into AI, and each customer has their own needs and specifications. So it's in the early innings. The companies that are deeply involved are going to win. The customers that we pick are also going to be really important to us. But we're looking forward to it. I think it's going to be a significant move in the industry and certainly for Skyworks. Got it. And then there was a two-part follow-up.

Speaker Change: It's early innings.

Speaker Change: The companies that are deeply involved are going to win. The customers that we pick are also going to be really important to us. But we're looking forward to it. I think it's going to be a significant move in the industry and certainly for Skyworks.

Liam Griffin: I think it's going to be a significant booth in the industry and certainly for Skyworks. Got it.

Unknown Caller: The follow-up specifically to the implications for revenue is, what does this mean for the company to get back to the gross margins that it was executing at a couple of years ago in the 50% range and maybe even up to that 53% target? And then switching gears, the company just continues to throw off tremendous cash. You talked about it in your comments, the dividend just rose again. You have very little debt.

Craig Ellis: The minute part follow up, the follow up specifically to the implications for revenue is, is what does this mean for the company to get back to the gross margins that it was executing at a couple of years ago in the 50% range and maybe even up to that 53% target. And then switching gears, the company just continues to throw off tremendous cash and talk about it in your comments. The dividend just raised again. You have very little debt. How are you thinking about what happens next with cash returners of a lot more buyback, or are you thinking about strategic, strategic M&A?

Speaker Change: Got it. And then a two-part follow-up.

Speaker Change: The follow up specifically to the implications for revenue is, is what does this mean for the company to get back to the gross margins that it was executing at a couple years ago in the 50% range, and maybe even up to that 53% target and then

Speaker Change: Switching gears, the company just continues to throw off tremendous cash. You talked about it in your comments. The dividend just raised again. You have very little debt.

Unknown Executive: How are you thinking about what happens next with cash return? Is it a lot more buyback, or are you thinking about strategic M&A? And if so, what type of cards might you be thinking about playing there?

Speaker Change: How are you thinking about what happens next with cash return? Is it a lot more buyback or are you thinking about strategic M&A? And if so, what type of cards might you be thinking about playing there? Thank you.

Chris: And if so, what type of cards might you be thinking about playing there? Thank you. As it relates to the financial output of this company, it's just outstanding, right? Just if you look at in the first nine months of the fiscal year, we generated $1.3 billion of cash. That's a 40% free cash flow margin. I think that is outstanding in the semiconductor business compared to many of our peers and competitors. In addition to that, we have a strong balance sheet. We have almost $1.3 billion of cash on the balance sheet, and only $1 billion of debt, which is cheap debt with long materialities.

Unknown Executive: Thank you. Yeah, so maybe first on gross margins. I think I already answered that question, right? I think we're going to continue to see further gross margin improvement. Obviously, with accelerated revenue growth, we will have better utilization in the factories, and that will exponentially result in further gross margin improvements. That is very clear. As it relates to the financial output of this company, it's just outstanding, right? Just if you look at the first nine months of the fiscal year, we generated $1.3 billion of cash.

Speaker Change: Yeah, so maybe first on the gross margins, I think I already answered that question, right? I think we're going to continue to see further gross margins improvement. Obviously, with accelerated revenue growth, we will have better utilization in the factories.

Speaker Change: And that will exponentially result in further gross margins improvements, that is very clear. As it relates to the financial output of this company, it's just outstanding, right?

Speaker Change: If you look at in the first nine months of the fiscal year, we generated $1.3 billion of cash. That's a 40% free cash flow margin. I think that is outstanding in the semiconductor business compared to many of our peers and competitors. In addition to that,

Unknown Executive: That's a 40% free cash flow margin. I think that is outstanding in the semiconductor business compared to many of our peers and competitors. In addition to that, we have a strong balance sheet. We have almost $1.3 billion of cash on the balance sheet and only $1 billion of debt, which is cheap debt with long maturities. So we have a very strong position here that allows us to, on the one hand, continue to invest in our business, in our technology and product roadmaps, and continue to invest in our factories if and when needed. And so, currently, the capital intensity of the business has come down a lot.

Speaker Change: We have a strong balance sheet. We have almost $1.3 billion of cash on the balance sheet and only $1 billion of debt, which is cheap debt with long maturities.

Chris: So we have a very strong position here that allows us to, on one hand, continue to invest in our business, in our technology and product road maps, continue to invest in our factories, and when needed. And so currently, the capital intensity of the business has come down a lot. But even when needed, of course, we can make those investments as well to maintain our leadership position. In addition to that, there's not going to be any hesitation. We are going to return all the access cash flow back to the shareholders, and we do that consistently through our dividend program and our share buy back program.

Speaker Change: So, we have a very strong position here that allows us to, on one hand, continue to invest in our business, in our technology and product roadmaps, continue to invest in our factories

Speaker Change: If and when needed. And so currently, the capital intensity of the business has come down a lot.

Speaker Change: But if and when needed, of course, we can make those investments.

Unknown Executive: But if and when needed, of course, we can make those investments as well to maintain our leadership position. And in addition to that, there's not going to be any hesitation; we are going to return all the excess cash flow back to the shareholders. And we do that consistently through our dividend program and our share buyback program. For the dividend program, we just announced a 3% increase to 70 cents per share. Right now, that's translating into a 2.4% dividend yield.

Speaker Change: as well to maintain our leadership position.

Chris: On the dividend program, we just announced a 3% increase up to 70 cents per share right now. That's translating into a 2.4% dividend yield. And, as you noticed, in the June quarter, we restarted the buy back program. And so there's not going to be any hesitation to that. In addition to that, we still have optionality for M&A. But you know us, we're not going to do anything stupid; we're going to remain disciplined on that. And if there are no deals, we will return the cash. Thanks for all the help, guys.

Speaker Change: through our Dividend Program and our Shared Buyback Program.

Speaker Change: On the dividend program, we just announced a 3% increase.

Speaker Change: Up to $0.70 per share right now, that's translating into a 2.4% dividend yield.

Speaker Change: And, as you noticed, in the June quarter, we restarted the buyback program. And so, there's not going to be any hesitation to that. In addition to that, we still have optionality for M&A, right? But, you know us, we're not going to do anything stupid. We're going to remain...

Unknown Executive: And as you noticed, in the June quarter, we restarted the buyback program. And so there's not going to be any hesitation about that. In addition to that, we still have optionality for M&A, right? But you know us; we're not going to do anything stupid; we're going to remain disciplined on that.

Unknown Executive: And if there are no deals, we will return the cash flow. Thanks for all the help, guys. Thank you. And our next question coming from the line up is from Kevin Cassidy with Rosenblatt Securities. Please answer on your cell phone.

Speaker Change: Disciplined on that, and if there are no deals, we will return the cash flow.

Kevin Cassidy: Thank you, and our next question coming from the line-up. Kevin Cassidy with Rosin's Life Security, Selon is open. Thanks, Rhett, letting me ask a question.

Speaker Change: Thanks for all the help, guys.

Speaker Change: Thank you. And our next question coming from the lineup, Kevin Cassidy with Rosenblatt Security. The line is open.

Kevin Cassidy: Thanks for letting me ask questions. When you mentioned AI in the handsets, and I understand the improvement that you'll get in content, but what about AI moving out into all types of robotics and, you know, IoT-type products? Do you have accelerated opportunities in that market too? Great question, great question. The good news is that the technologies that we have can absolutely work in those environments. We just haven't gotten there yet.

Liam Griffin: When you mention AI in the handsets, and I understand the improvement that you'll get in content, what about AI is moving out into all types of robotics and IoT type of products? Do you have an accelerated opportunities in that market too? Great question, great question. The good news is the technologies that we have can absolutely work in those environments. We just haven't gotten there yet. So, you know, we're making those investments. Obviously, we've got a great position in smartphones and the technologies that we work there. But to take that through an IoT cycle across multi-markets is going to be a real powerful opportunity for Skyworks.

Kevin Cassidy: Thanks for letting me ask questions.

Kevin Cassidy: When you mention AI in the handsets and I understand the improvement that you'll get in content, what about AI is moving out into all types of robotics and you know IOT type of products? Do you have accelerated opportunities with in that market too?

Speaker Change: Great question, great question. The good news is the technologies that we have can absolutely work in those environments. We just haven't gotten there yet.

Unknown Executive: So, you know, we're making those investments. Obviously, we've got a great position in smartphones and the technology, and we work there, but to take that through an IOT. Transcribed by https://otter.ai. But we really do believe this could be a very powerful cycle independent of the smartphone, looking at the IoT opportunity.

Speaker Change: So, you know, we're making those investments, obviously we've got a great position in smartphones and the technologies that we work there, but to take that through an IOT cycle.

Speaker Change: across multi markets is going to be a real powerful opportunity for Skyworks. The good news is we know what the technology is, how they work, where they need to be. It's just about putting it together and getting into the right markets, the right partners.

Liam Griffin: The good news is we know with the technologies how they work, where they need to be; it's just about putting it together and getting into the right markets, the right partners. But we really do believe this could be a very powerful cycle independent of the smartphone, looking at the IOT opportunity.

Speaker Change: But we really do believe this could be a very powerful cycle, independent of the smartphone, looking at the IoT opportunity. So we look forward to it. It's a great question, and we'll hopefully update.

Unknown Executive: So look forward to it. It's a great question. And we'll hopefully, we'll update you more as we get more information, but we're very interested in making that happen. Okay, yeah, great.

Unknown Executive: So, look forward to it's a great question, and we'll hopefully update you more as we get more information. But we're very interested in making that happen. Thank you. Okay, great. Thank you for answering the question.

Speaker Change: I'd love to update you more as we get more information, but we're very interested in making that happen. Thank you.

Kevin Cassidy: Thank you for asking or answering the question that, maybe, as a hint, is, do you need more scalability to be able to service more customers? Well, I mean, we have customers that are actually working with us and asking us how they can engage with AI and using IOT as a vector. And so we're working with companies like that that we know already, but there's a whole range of other opportunities and applications that we haven't yet addressed. So I think it's going to be a meaningful part of the strategy at Skyworks as we move forward with a lot of runway that hasn't been covered. Okay, great.

Liam Griffin: Just maybe, as a hint, do you need more scalability to be able to serve us more customers? Well, I mean, we have customers that are actually working with us and asking us how they can engage in AI and using IoT as a vector. And so, we're working with companies like that that we know already, but that there's a whole range of other opportunities and applications that we haven't yet addressed. So, I think it's going to be, you know, a meaningful part of the strategy at Skyworks here as we move forward with a lot of runway that hasn't been covered.

Speaker Change: Okay yeah great thank you for asking or answering the question that just maybe as a hint is it do you need more scalability to be able to service more customers?

Speaker Change: Well, I mean, we have customers that are actually working with us and asking us how they can engage.

Speaker Change: and AI and using IoT as a vector.

Speaker Change: And so we're working with companies like that that we know already, but that there's a whole range of other opportunities and applications that we haven't yet addressed. So I think it's going to be a meaningful part of the strategy at Skyworks here as we move forward, with a lot of runway that hasn't been covered.

Unknown Executive: Okay, great. Thank you.

Speaker Change: Okay, great. Thank you.

Nick Doyle: And our next question coming from the lineup. Quinn Boone from Need Heming Company. You're on a cell phone.

Speaker Change: Thank you. And our next question, coming from the line up, Quinn Bone from Needham and Company, your line is open.

Unknown Executive: Thank you. Thank you. And our next question, coming from the line-up, Quinbon from Needham and Company, your line is open. Hey guys, this is Nick Doyle. I'm on behalf of Quinn.

Nick Doyle: Hey guys, this is Nick Doyle on for Quinn. If your largest customer switches to an internal modem, can you talk about how that would impact Skyworks' content opportunity? Yeah, I hear you. You know, we really can't go into specifics with that customer, but certainly we have a great relationship. We're a trusted partner.

Quinbon: If your largest customer switches to an internal modem, can you talk about how that change, how that would impact Skyworks' content opportunity? Yeah, I hear you. You know, we really can't go into specifics with that customer, but certainly, we have a great relationship. We're a trusted partner. There are a lot of opportunities that we can pursue, but we just really... Okay, um, you mentioned that inventory remains elevated in the traditional data center and wireless infrastructure. Do you have a sense of how much inventory remains in days or dollars and what types of products, you know, have the most inventory left? Well, that is really hard to answer that question.

Speaker Change: Hey guys, this is Nick Doyle. I'm for Quinn.

Nick Doyle: If your largest customer switches to an internal modem, can you talk about how that would impact Skyworks' content opportunity?

Speaker Change: Yeah, I hear you. You know, we really can't go into specifics with that customer, but certainly we have a great relationship. We're a trusted partner. There's a lot of opportunities that we can pursue, but we just really can't get into any details here.

Nick Doyle: There's a lot of opportunities that we can pursue, but we just really can't get into any details yet. Okay.

Chris: You mentioned that inventory remains elevated in the traditional data center and wireless infrastructure. Do you have a sense of how much inventory remains and days or dollars, and what types of products have the most inventory left? That's really hard to answer that question. It really depends from end market to end market. As I said before, I think in consumer enterprise, most of the inventory correction is over. Automotive industrial. You've heard it from Pearson competitors. There's definitely some excess inventory that's being flushed out. And then, if you look more at the infrastructure networking data center, there is still some excess inventory, but the demand is definitely improving in those areas.

Speaker Change: Okay, you mentioned that inventory remains elevated in the traditional data center and wireless infrastructure. Do you have a sense of how much inventory remains in days or dollars and what types of products, you know, have the most inventory left?

Speaker Change: Well, that is a really hard to answer that question. I mean, it really depends.

Unknown Executive: I mean, it really depends from end market to end market. As I said before, I think in the consumer enterprise, most of the inventory collection is over the automotive industry. You've heard it from peers and competitors. There's definitely some excess inventory that's being flushed out.

Speaker Change: from end market to end market. As I said before, I think in consumer enterprise.

Speaker Change: It most of the inventory correction is over automotive industrial you've heard it from peers and competitors there's definitely some excess inventory that's being flushed out

Unknown Executive: And then if you look more at the infrastructure networking data center, there is still some excess inventory, but demand is definitely improving in those areas. And it will be a long recovery in those markets. So, again, it really depends on end market to end market. But again, when you look at our markets business, we're growing it sequentially for three quarters in a row. And we'll start growing it on a year over year basis. And so there's definitely some good traction for Skyworks.

Speaker Change: And then, if you look more at the infrastructure, networking, data center, there is still some excess inventory, but the demand is definitely improving in those areas, and it will be.

Chris: And it will be a long recovery in those markets. Again, it really depends on end market to end market. But again, when you look at our market business, we're growing it sequentially for three quarters in a row, and we'll start growing it on a year-over-year basis. And so there's definitely some good fraction for Skyworks. Thank you.

Rajvindra S. Gill: a long recovery in those markets, so.

Speaker Change: Again, it really depends end-market to end-market, but again, when you look at our markets business, we're growing it sequentially for three quarters in a row, and we'll start growing it on a year-over-year basis, and so there's definitely some good traction for Skyworks.

Speaker Change: Thank you.

Thomas O'malley: Now our next question coming from Delina.

Unknown Executive: Thank you. Our next question comes from the line of Thomas O'Malley with Barclays. Your line is open.

Speaker Change: Thank you.

Chris: Thomas O'Malley with Barclays. Feel on his open. Hey guys, thanks for taking my question. Mine was just a broader industry dynamic on integration. A competitor at the recent MS like kind of showed a slide with, you know, the mid-high band socket, you know, integrating a diversity receive over time and high and Android. Can you talk about, are you seeing integration in some of the design wins that you're competing for today? And then can you just maybe speak to the fact, is that only going to appear in high-end markets? Do you see that across broad markets?

Speaker Change: Our next question coming from the lineup, Thomas O'Malley with Barclays, your line is open.

Thomas O'malley: Hey guys, thanks for taking my question. Mine was just a broader industry dynamic on integration. A competitor at the recent NSLAC kind of showed a slide with, you know, the mid-high band socket, you know, integrating diversity receive over time and high-end Android.

Thomas O'malley: Hey guys, thanks for taking my question. Mine was just a broader industry dynamic on integration. A competitor at the recent NS Lake kind of showed a slide with, you know, the mid-high band socket.

Speaker Change: you know integrating diversity receive over time and high-end android

Unknown Executive: Can you talk about, are you seeing integration in some of the design wins that you're competing for today? And then could you just maybe speak to the fact that, is that only going to happen in high-end markets? Do you see that across broad markets?

Speaker Change: Can you talk about, are you seeing integration in some of the design wins that you're competing for today? And then could you just...

Unknown Executive: Just where you're seeing the industry move to in terms of maybe silicon getting integrated into smaller dive spaces. Thank you. You know, as you know, we really can't get into details with our customers and our design wins, but we certainly have the best in class RF technology and The Manufacturing Scale to Compete to Win for Soccer. And frankly, the tech specs are getting harder and harder every year. On top of that, our customers are relentless in terms of driving higher levels of performance. And in this environment, only the strong will survive.

Speaker Change: Maybe speak to the fact, is that only going to appear in high-end markets? Do you see that across broad markets? Just where you're seeing the industry move to in terms of maybe silicon getting integrated into smaller die space. Thank you.

Chris: Just where are you seeing the industry move to in terms of maybe silicon getting integrated into smaller die space? Thank you.

Liam Griffin: Yeah, as you know, we really can't get into details with our customers and our design wins, but we certainly have the best-in-class RF technology and the manufacturing scale to compete to win for sockets. And frankly, the tech specs are getting harder and harder every year. On top of that, our customers are relentless in terms of driving higher levels of performance. And in this environment, only the strong will survive, and Skyworks, of course, you know, this is what we do. This is our bread and butter; our RF technology continues to get more and more difficult, and that's the way we want it.

Speaker Change: As you know, we really can't get into details with our customers and our design wins, but we certainly have the best-in-class RF technology and the manufacturing scale to compete to win for sockets.

Speaker Change: And frankly, the tech specs are getting harder and harder every year. On top of that, our customers are relentless in terms of driving higher levels of performance.

Unknown Executive: And Skyworks, of course, you know, this is what we do. This is our bread and butter. Our technology continues to get more and more difficult, and that's the way we want it. So we expect, you know, more, more opportunities, and more engagement, especially with Talk to Your Cost. And then just more broadly, when you talk about AI proliferating to the edge, I think people have a general, you know, generally good idea of how they see that playing out. But when it comes to, you know, AI in the smartphone, do you think you could talk specifically as to where you see the content uplift? Is that just additional bands? Is that additional filtering?

Speaker Change: And in this environment, only the strong will survive, and Skyworks, of course, you know, this is what we do. This is our bread and butter. Our technology continues to get more and more difficult, and that's the way we want it.

Liam Griffin: And so we expect, you know, more opportunities and more engagement, especially with the talk to your customers as we go forward.

Speaker Change: And so we expect, you know, more opportunities and more engagement, especially with the top tier customers as we go forward.

Liam Griffin: Helpful. And then just more broadly, when you talk about AI proliferating to the edge, I think people have a general, you know, generally a good idea of how they keep that playing out. But when it comes to, you know, AI in the smartphone, do you think you could talk specifically as to where you see the content uplift? Is that just additional bands, is that additional filtering? Like, can you just point to where you think in the near term, you see additional content as it relates to AI in the smartphone? Thank you. Yeah, just at the high level, think about transmit back and forth, right?

Unknown Executive: Like, can you just point to where you think, in the near term, you see additional content as it relates to AI in the smartphone? Thank you. Yeah, just at the high level, think about transmitting, back and forth, right, transmit and receive the burden, be able to do that in an AI environment. The speed, the latency, all of that, filtering, the range, all of those issues become problems that need to be solved.

Speaker Change: helpful. And then just more broadly, when you talk about

Speaker Change: A.I. proliferating to the edge, I think people have a general, you know, generally a good idea of how they see that playing out. But when it comes to...

Rajvindra S. Gill: Unknown Executive, Rajvindra Gill

Rajvindra S. Gill: Just at the high level think about transmit back and forth right transmit and receive the burden

Liam Griffin: Transmit and receive the burden to be able to do that in an AI environment; the speeds, the latency, all of that, the filter rate, the range, all of those issues become problems that need to be solved. And that's exactly what we want to do. And this is the stuff we do all the time. So we're going to take all to know how our own IP, our technologists, our capital assets, our scale and our factories to curate solutions that will meet the demands of AI. So it's not going to be a one fits all kind of thing.

Speaker Change: To be able to do that in an AI environment, the speeds, the latency.

Speaker Change: All of that, the filtering, the range, all of those issues become problems that need to be solved. And that's exactly what we want to do. And this is the stuff we do all the time. So we're going to take all the know-how, our own IP, our technologists.

Unknown Executive: And that's exactly what we want to do. And this is the stuff we do all the time. So we're going to take all the know-how, our own IP, our technologists, our capital assets, our scale in our factories to curate solutions that will meet the demands of AI. So it's not going to be a one-size-fits-all kind of thing.

Speaker Change: Our capital assets are scaling our factories to curate solutions that will meet the demands of AI. So it's not going to be a one fits all kind of thing, it's going to be highly curated and customated.

Unknown Executive: It's going to be highly curated and custom. And ladies and gentlemen, that concludes today's question and answer session. I will now call back over to Mr. Griffin for any closing comments. Thanks everybody for participating in today's call. We look forward to seeing you at upcoming investor conferences during the quarter. Thank you. Ladies and gentlemen, this concludes today's conference call. We thank you for your participation. You may now disconnect. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ??

Liam Griffin: It's going to be highly curated and customized.

Unknown Executive: Thank you, John.

Unknown Executive: And welcome to today's question and answer session. I will not head back over to Mr. Griffin for any present moments. Thanks, everybody, for participating in today's call. We look forward to seeing you at upcoming investor conferences during the quarter. Thank you.

Speaker Change: Transcribed by https://otter.ai

Speaker Change: And ladies and gentlemen, that concludes today's question and answer session. I will now call back over to Mr. Griffin for any closing comments.

Liam K. Griffin: Thanks everybody for participating in today's call, we look forward to seeing you at upcoming investor conferences during the quarter. Thank you.

Unknown Executive: Please sign, John.

Unknown Executive: And this concludes today's conference call. We thank you for your participation.

Speaker Change: Ladies and gentlemen, this concludes today's conference call. We thank you for your participation. You may now disconnect.

Unknown Executive: You may now disconnect.

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Speaker Change: www.uncensored.co.uk

Unknown Executive: I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I know I 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Speaker Change: www.SkyworksSolutions.com www.SkyworksSolutions.com