Q1 2025 Qorvo Inc Earnings Call

Operator: Good day, and welcome to the Qorvo Inc. first quarter 2025 earnings conference call. All participants will be in listen only mode.

Unknown Executive: Good day, and welcome to the Qorvo Inc. First quarter 2025 earnings conference call. All participants will be in listen-only mode.

Good day and welcome to the Corvo, Inc. First quarter 'twenty 25 earnings conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to add.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Douglas DeLieto, Vice President of Investor Relations. Please go ahead.

Unknown Executive: Should you need assistance, please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchdown phone. To withdraw your question, please press star, then two.

Ask questions to ask a question you May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Douglas Toledo, Vice President of Investor Relations. Please go ahead.

Unknown Executive: Please note this event is being recorded.

Douglas DeLieto: I would now like to turn the conference over to Douglas DeLieto, Vice President of Investor Relations. Please go ahead.

Douglas DeLieto: Thanks very much. Hello everyone, and welcome to Qorvo's fiscal 2025 first quarter earnings call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to review the Safe Harbor Statement contained in the earnings release published today as well as the risk factors associated with our business in our annual report on Form 10-K filed with the SEC because these risk factors may affect our operations and financial results.

Unknown Executive: Thanks very much.

Speaker Change: Thanks, very much Hello, everyone and welcome to <unk> fiscal 2025 first quarter earnings call. This call will include forward looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations.

Unknown Executive: Hello everyone and welcome to Qorvo's fiscal 2025 first quarter earnings call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statement contained in the earnings release published today, as well as the risk factor to see the results. We are associated with our business and our annual report on Form 10-K filed with the SEC, because these risk factors may affect our operations and financial results. In today's release and on today's call, we provide both GAAP and non-GAAP financial results.

Speaker Change: Or would you to review the Safe Harbor statement contained in the earnings release published today as well as the risk factors associated with our business in our annual report on Form 10-K filed with the SEC because these risk factors may affect our operations and financial results.

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

Speaker Change: In today's release and on today's call, we provide both GAAP and non-GAAP financial results. We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain noncash expenses or other items that may obscure trends in our underlying performance.

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

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

Unknown Executive: For complete reconciliation of GAAP to non-GAAP financial measures, please refer to our earnings release issued earlier today, available on our Investor Relations website at ir.corbo.com under Financial Releases.

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

Bob Rugworth: Joining us today are Bob Rugworth, President and CEO; Grant Brown, CFO; Dave Fullwood, Senior Vice President of Sales and Marketing; and other members of Forbes Management Team. With that, I'll turn the call over to Bob. Thanks, Doug, and welcome everyone to our call. I want to begin by thanking everyone who attended our Investor Day, both in person and online. We appreciated the opportunity to share with you our strategic positioning and our enthusiasm for the future. The investor slides and a replay of the webcast are available on our IR website under Events and Presentations.

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

Robert A. Bruggeworth: Thanks Doug, and welcome everyone to our call. I want to begin by thanking everyone who attended our investor day, both in person and online. We appreciated the opportunity to share with you our strategic positioning and our enthusiasm for the future. The investor slides and a replay of the webcast are available on our IR website under events and presentations.

Bob: Thanks, Doug and welcome everyone to our call.

Bob: I want to begin by thanking everyone, who attended our Investor day, both in person and online we appreciated the opportunity to share with you our strategic positioning and our enthusiasm for the future the investor slides and a replay of the webcast are available on our IR website under events and presentations.

Bob Rugworth: Some of the investor feedback we've received is that it would be helpful to discuss our business by end market. We highlighted our end markets in our Investor Day presentation, and our formal remarks today will also highlight our opportunities and achievements by end market. Corvo's six primary end markets are automotive, consumer, defense and aerospace, industrial and enterprise, infrastructure, and mobile. They are underpinned by global mega trends, including electrification, connectivity, mobility, sustainability, verification, and AI. These trends support new applications and user experiences that are made accessible to end users by customers who serve and the products we enable.

Robert A. Bruggeworth: Some of the investor feedback we've received is that it would be helpful to discuss our business by region. We highlighted our regions in our Investor Day presentation, and our formal remarks today will also highlight our opportunities and achievements by region. Qorvo's six primary end markets are automotive, consumer, defense, and aerospace, industrial, and enterprise, infrastructure, and mobile. They are underpinned by global megatrends including electrification, connectivity, mobility, sustainability, datafication, and AI.

Bob: Some of the Investor feedback we've received is that it would be helpful to discuss our business by end market.

Bob: We highlighted our end markets in our Investor day presentation in our formal remarks today will also highlight our opportunities and achievements by end market.

Bob: <unk> six primary end markets are automotive consumer.

Bob: <unk> aerospace industrial and enterprise infrastructure and mobile.

Bob: They are underpinned by global Mega trends, including electrification connectivity mobility sustainability data vacation and AI.

Robert A. Bruggeworth: These trends support new applications and new user experiences that are made accessible to end users by customers we serve and the products we enable. Our markets are characterized by multi-year upgrade cycles, including 5G advanced, non-terrestrial networks, Wi-Fi 6 and 7, DOCSIS 4.0, MATTER, Ultra Wideband, and others. They are also undergoing technology upgrades, such as AESA radars, Advanced Power Management, RF MEMS, and Highly Integrated System-Level Solutions.

Bob: These trends support new applications and new user experiences that are made accessible to end users by customers, we serve and the products we enable.

Bob Rugworth: Our markets are characterized by multi-year upgrade cycles, including 5G Advanced, non-terrestrial networks, Wi-Fi 6 and 7, boxes 4.0, Matter, ultra-wide ban, and others. They are also undergoing technology upgrades, such as AESA radars, advanced power management, RFMEMs, and highly integrated system level solutions, and they are seeing upgrades in the user experience like indoor navigation and forced sensing touch sensors. There are also continuous drivers that are common across markets. These include the continuously increasing requirements for bandwidth, speed, and latency; a sharp focus on power efficiency and power management; and the need for system level solutions and greater functional density.

Bob: Our markets are characterized by multi year upgrade cycles, including <unk> advanced <unk>.

Bob: Non terrestrial networks Wi Fi six and seven DOCSIS four point out matter ultra wideband and others.

Bob: They are also undergoing technology upgrades, such as aes or radars and.

Advanced power management, RF, Mems and highly integrated system level solutions.

Robert A. Bruggeworth: And they are seeing upgrades in the user experience, like indoor navigation and force sensing, and touch sensing. There are also continuous drivers that are common across markets. These include the continuously increasing requirements for bandwidth, speed, and latency, a sharp focus on power efficiency and power management, and the need for system-level solutions and greater functional density. Customers demand improvements in performance, whether it's measured in power out current consumption, talk time, or battery life. They require higher levels of performance with greater efficiency and a reduced form factor to create the differentiation that drives their position in the markets they serve.

Bob: And they are seeing upgrades and the user experience like indoor navigation and <unk> touch sensors.

Bob: There are also continuous drivers that are common across markets.

Bob: These include the continuously increasing requirements for bandwidth.

Bob: And latency, a sharp focus on power efficiency and power management and the need for system level solutions and greater functional density.

Bob Rugworth: Customers demand improvements in performance, whether it's measured in power out, current consume, talk time, or battery life. They require higher levels of performance with greater efficiency and a reduced form factor to create the differentiation that drives their position in the markets they serve. Qorvo is critical in enabling these capabilities.

Bob: Customers demand improvements in performance, whether it's in measured and powerful.

Current consume talk time or battery life.

Bob: They require higher levels of performance with greater efficiency and a reduced form factor to create the differentiation that drives their position in the markets. They serve.

Robert A. Bruggeworth: Qorvo is critical in enabling these capabilities. Now, turning to the quarterly highlights. In the automotive market, we were selected to supply V2X FEMS for a leading China-based automotive V2X reference chipset platform set to ramp at multiple automotive OEMs in calendar year 2017. To expand automotive engagements, we are leveraging our ultra-wideband portfolio across a range of applications, including secure access, digital key, kick sensors, child presence detection, and detection of intrusion. We're also expanding our opportunities in EVs to include solid-state circuit breakers. Given the smaller size, enhanced reliability, and better thermals of our silicon carbide solutions, we enable solid-state circuit breakers that can disconnect electrical overloads in case of failure to maintain safe and efficient power distribution.

Bob: <unk> is critical in enabling these capabilities.

Bob Rugworth: Now turning to quarterly highlights. In the automotive market, we were selected to supply VDX FEMs for a leading China-based automotive VDX reference chipset platform set to rent at multiple automotive OEMs in calendar 25. To expand automotive engagements, we are leveraging our ultra-wide bandwidth portfolio across a range of applications, including secure access, digital key, kick sensors, child present detection, and detection of intrusion. We are also expanding our opportunities in EVs to include solid state circuit breakers. Given the smaller size, enhanced reliability, and better thermals of our silicon carbide solutions, we enable solid state circuit breakers that can disconnect electrical overloads in case of failure to maintain safe and efficient power distribution.

Bob: Now turning to quarterly highlights in the automotive market, we were selected to supply <unk> for a leading China based automotive V to X referenced chipset platform set to ramp at multiple automotive Oems in calendar 'twenty five.

Bob: To expand automotive engagements, we are leveraging our ultra wideband portfolio across a range of applications, including secure access digital key kicks sensors child, president detection and detection of intrusion.

Bob: We are also expanding our opportunities in Evs to include solid state circuit breakers, given the smaller size enhanced reliability and better thermals of our silicon carbide solutions, we enable solid state circuit breakers that can disconnect electrical overloads in case of failure to maintain safe.

Bob: And efficient power distribution.

Bob Rugworth: For consumer markets, we secured a new engagement to supply switch mode DC to DC charger for a wearable accessory for an Android OEM. We continue to expand our power management portfolio, and we are engaged to supply our newest battery management solution for power tools, scooters, e-bikes, and other consumer products. We are also supporting a range of applications with our matter and ultra-wide bandwidth technologies, including door locks, smart lighting, and indoor navigation. We are combining matter with ultra-wide bandwidth to support the emerging Alero standard for controlling digital access to smart homes and offices. To support global broadband deployments, we're going to use Wi-Fi solutions to enable cellular, cable, and satellite back-hole applications and develop and emerging markets.

Robert A. Bruggeworth: For consumer markets, we secured a new engagement to supply a switch mode DC to DC charger for a wearable accessory for an Android OEM. We continue to expand our power management portfolio, and we are engaged to supply our newest battery management solution for power tools, scooters, e-bikes, and other consumer products. We are also supporting a range of applications with our MATTER and ULTRA Wideband technologies, including door locks, smart lighting, and indoor navigation. We are combining MATTER with Ultra Wideband to support the emerging ALERO standard for controlling digital access to smart homes and offices.

Bob: For consumer markets, we secured a new engagement to supply a switch mode DC to DC charger for wearable accessory for an Android OEM.

Bob: We continue to expand our power management portfolio and we are engaged the supply our newest battery management solution for power tools scooters E bikes and other consumer products.

Bob: We are also supporting a range of applications with our matter and ultra wideband technologies, including <unk> smart lighting and indoor navigation.

We are combining matter with ultra wideband to support the emerging Alero standard for controlling digital access to smart homes and offices.

Robert A. Bruggeworth: To support global broadband deployments, Qorvo's Wi-Fi solutions enable cellular, cable, and satellite backhaul applications and develop an emerging market. Of note, we recently suppressed 75 million Wi-Fi 6 SPAMs shipped into the Indian Wi-Fi market. We continue to expand our Wi-Fi portfolio, and we are seeing increasing customer interest in our 2, 5, and 6 GHz ball filters for Wi-Fi CPE applications. In other consumer applications, we are expanding our customer engagements with force-sensing touch sensors, primarily for laptop trackpads, as well as other consumer applications.

Bob: To support global broadband deployments <unk> Wi Fi solutions enable cellular cable and satellite backhaul applications in developed and emerging markets of note. We recently surpassed 75 million Wi Fi six <unk> shift into the India Wi Fi market.

Bob Rugworth: Of note, we recently suppressed 75 million Wi-Fi 6 BEMs shipped into the India Wi-Fi market. We continue to expand our Wi-Fi portfolio, and we are seeing increasing customer interest in our two, five, and six gigahertz ball filters for Wi-Fi CPU applications. In other consumer applications, we are expanding our customer engagement with four sensing touch sensors, primarily for laptop track pads, as well as other consumer applications. Turning to defense and aerospace, we secure design wins across segments, including Acer radars, large defense programs, and fat-com deployments where Corvo participates in both the low-Earth orbit satellite and the ground-based consumer terminal.

We continue to expand our Wi Fi portfolio, and we are seeing increasing customer interest in our two five and six gigahertz ball filters for Wi Fi CPE applications.

Bob: In other consumer applications, we are expanding our customer engagements with force sensing touch sensors, primarily for laptop track pads as well as other consumer applications.

Robert A. Bruggeworth: Turning to defense and aerospace, Qorvo secured design wins across segments, including AESA Radar, large defense programs, and FATCOM deployments, where Qorvo participates in both the Low Earth Orbit Satellite and the Ground Based Consumer Terminal. In DNA markets, Qorvo is the beneficiary of underlying drivers, including the trend of one-to-many, the transition of mechanical systems to active electronic scanning systems, increasing system-level functionality, and size During the quarter, we fully integrated the EnokiWave team into Qorvo.

Bob: Turning to defense and aerospace, we secured design wins across segments, including EISA radars.

Bob: Large defense programs, and satcom deployments, where corvo participate in both the low Earth orbit satellite and the ground based consumer terminal.

Bob Rugworth: In DNA markets, Corvo is the beneficiary of underlying drivers, including the trend of one-dimensional, the transition of mechanical systems to active electronic scanning systems, increasing system-level functionality, and size constraints requiring advanced multi-chip packaging. During the quarter, we fully integrated the Anoki Wave team into Corvo. Our added capabilities in silicon beam-forming ICs and IF to RF conversion are complemented to our transmit and receive RF front-ends as well as our car management IC portfolio. We're developing more highly integrated placements that combine our capabilities to bring greater value add to our customers. New product launches during the quarter included three new highly integrated RF multi-chip modules for X-band, X-band, and L-band advanced radar applications.

Bob: And DNA markets Corvo is the beneficiary of underlying drivers, including the trend of one to many the transition of mechanical systems to active electronics scanning systems, increasing system level functionality and size constraints, requiring advanced multi chip packaging.

Speaker Change: During the quarter, we fully integrated the <unk> team in the core book.

Robert A. Bruggeworth: Our added capabilities in silicon beam forming ICs and IF to RF conversion are complementary to our transmit and receive RF front ends, as well as our power management IC portfolio. We're developing more highly integrated placements that combine our capabilities to bring greater value to our customers. New product launches during the quarter included three new highly integrated RF multi-chip modules for X-Band, S-Band, and L-Band advanced radar applications. The new modules integrate filters, switches, and amplifiers to simplify design and enable the superior performance, low noise, reduced power consumption, and smaller form factor required for phased array and multifunction radar systems.

Speaker Change: Our added capabilities in silicon beam, forming Ics and <unk> RF conversion are complementary to our transmit and receive RF front ends as well as our power management IC portfolio.

Speaker Change: We're developing more highly integrated placements that combine our capabilities to bring greater value add to our customers.

Speaker Change: New product launches during the quarter included three new highly integrated RF multi chip modules for X span SPN and L band advanced radar applications.

Bob Rugworth: The new modules integrate filters, switches, and amplifiers to simplify design and enable superior performance, low noise, reduce power consumption, and smaller form factor required for phase-to-ray and multi-function radar systems. For infrastructure markets, we launched a single chip inverse cable equalizer that is programmable in the field and electronically simulates signal loss at various cable lengths. For operators, this eliminates the additional parts and tech time required to accommodate short runs during DOCSIS 4.0 field installations. Our single chip solution also features a switched bypass mode that allows operators to utilize our solution in every line amplifier and field expander, regardless of distance.

Speaker Change: New modules integrate filters switches and amplifiers to simplify design and enable the superior performance low noise reduce power consumption and smaller form factor required for phased array and Multifunction radar systems.

Robert A. Bruggeworth: For infrastructure markets, we launched a single-chip inverse cable equalizer that is programmable in the field and electronically simulates signal loss at various cable lengths. For operators, this eliminates the additional parts and tech time required to accommodate short runs during DOCSIS 4.0 field installation. Our single-chip solution also features a switched bypass mode that allows operators to utilize our solution in every line amplifier and field extender, regardless of distance. Furthermore, for Massive MIMO 5G base stations, we introduced a best-in-class transmit pre-driver.

Speaker Change: For infrastructure markets, we launched a single chip inverse cable equalizer that his program will in the field and electronically stimulates signal loss at various cable links.

Speaker Change: For operators this eliminates the additional parts and tech time required to accommodate short runs during DOCSIS four <unk> field installations.

Speaker Change: Our single Chip solution also features a switched bypass mode that allows operators to utilize our solution and every line amplifier and field extender regardless of distance.

Bob Rugworth: For massive MIMO 5G base stations, we introduced the best-in-class transmit pre-driver. It has engineered specifically for 32-node massive MIMO systems and is scalable up to 64 nodes. For industrial and enterprise markets, we are seeing continued demand for new orders for AC to DC high-density server power supplies. During the quarter, we began sampling the industry's first 4-millium silicon carbide J-FET. It's RDS on performance of 4-milliums as best-in-class on resistance among 650-750-volt power devices. This is especially important for applications such as circuit protection that are migrating from traditional switch mode static switches that are on for longer durations.

Speaker Change: For massive Mimo and <unk> base stations, we introduced a best in class transmit pretty driver. It is engineered specifically for 32 narrowed massive mimo systems and is scalable up to 64 nodes.

Robert A. Bruggeworth: It is engineered specifically for 32-node Massive MIMO systems and is scalable up to 64 nodes. In the industrial and enterprise markets, we are seeing continued demand for new orders for AC to DC high-density server power supplies. During the quarter, we began sampling the industry's first 4 milliohm silicon carbide JFET. Its RDS on performance of 4 milliohms is best in class on resistance among 650 to 750 volt power devices. This is especially important for applications such as circuit protection that are migrating from traditional switch mode static switches that are on for longer durations. This is a significant milestone for solid-state circuit breakers, and it highlights the trend we are seeing from mechanical to semiconductor-based electrical systems for residential, commercial, and industrial applications.

Speaker Change: For industrial and enterprise markets. We are seeing continued demand for new orders for AC to DC high density server power supplies.

Speaker Change: During the quarter, we began sampling the industry's first four <unk> silicon carbide jfet, it's Rds on performance of 4 million homes as best in class on resistance, among 650 to 750 volt power devices.

Speaker Change: This is especially important for applications such as circuit protection that are migrating from traditional switch mode static switches that are on for longer durations.

Bob Rugworth: This is a significant milestone for solid state circuit breakers, and it highlights the trend we are seeing from mechanical to semiconductor-based electrical systems for residential, commercial, and industrial applications. For Wi-Fi enterprise access points, we are engaged to supply ultra-wide vent to enable indoor navigation and office buildings, shopping malls, and factories. by adding ultra-wide bend to Wi-Fi access points, the access points become the anchor or reference point enabling precision navigation for ultra-wide bend enabled devices. As an added benefit, ultra-wide bend can reduce costs by identifying the optimal location for access point placement during Wi-Fi installation. Lastly, we're leveraging our four sensing touch sensor technology in new industrial markets, including handheld medical devices that measure oxygen levels.

Speaker Change: This is a significant milestone for solid state circuit breakers and his highlights the trend were seeing from mechanical to semiconductor base electrical systems for residential commercial and industrial applications.

Robert A. Bruggeworth: For Wi-Fi enterprise access points, we are engaged to supply Ultra Wideband to enable indoor navigation in office buildings, shopping malls, and factories. By adding Ultra Wideband to Wi-Fi access points, the access points become the anchor or reference point, enabling precision navigation for Ultra Wideband-enabled devices. As an added benefit, Ultra Wideband can reduce costs by identifying the optimal location for access point placement during Wi-Fi installation. Lastly, we're leveraging our force sensing touch sensor technology in new industrial markets, including handheld medical devices that measure oxygen levels.

Speaker Change: For Wi Fi enterprise access points, we are engaged to supply ultra wideband to enable indoor navigation and office buildings shopping malls and factories.

Speaker Change: Adding ultra wideband <unk> Wi Fi access points, the access points become the anchor our reference point, enabling precision navigation for ultra wideband enabled devices.

Speaker Change: As an added benefit ultra wideband can reduce costs by identifying the optimal location for access point placement during Wi Fi installations.

Speaker Change: Lastly, we are leveraging our force sensing touch sensor technology, and new industrial markets, including handheld medical devices that measure oxygen levels.

Bob Rugworth: Turning to Moble, which is primarily smartphones and tablets, our largest opportunity remains at our largest customer. We're investing in multiple, multi-year programs to increase our content and continue to grow revenue with this customer. Our R&D investments for future programs include products we currently supply to this customer, as well as new products we are not currently supplying. Within the Android ecosystem, Qorvo remains the primary RF supplier. We collaborate with Android OEMs on their product road maps over multiple years, and we are positioned to drive growth as 4G devices move to 5G at NRR SAM. In calendar 24, we expect Android 5G unit volumes to grow greater than 10%.

Robert A. Bruggeworth: Turning to mobile, which is primarily smartphones and tablets, our largest opportunity remains at our largest customer. We're investing in multiple, multi-year programs to increase our content and continue to grow revenue with this customer. Our R&D investments for future programs include products we currently supply to this customer, as well as new products we are not currently supplying. Within the Android ecosystem, Qorvo remains the primary RF supplier.

Speaker Change: Turning to mobile, which is primarily smartphones and tablets, our largest opportunity remains at our largest customer.

Speaker Change: We are investing in multiple multi year programs to increase our content and continue to grow revenue with this customer.

Speaker Change: Our R&D investments for future programs include products. We currently supply to this customer as well as new products. We are not currently supply.

Speaker Change: Within the Android ecosystem corridor remains the primary RF supplier.

Robert A. Bruggeworth: We collaborate with Android OEMs on their product roadmaps for multiple years, and we are positioned to drive growth as 4G devices move to 5G at NRR SAM. In calendar 24, we expect Android 5G unit volumes to grow greater than 10%. We're also positioned to grow with 5G ADVANCE, which occurs with new releases of the 5G standard. Content Drivers in 5G ADVANCE include an additional transmit path, non-terrestrial network connectivity, and requirements for power class 2 amplifiers to increase output power, improve data throughput, and extend cell site coverage.

Speaker Change: We collaborate with Android Oems on their product roadmaps over multiple years, and we are positioned to drive growth as <unk> devices move to <unk> and enter our Sam and.

Speaker Change: In calendar 'twenty, four we expect to Android <unk> unit volumes to grow greater than 10%.

Bob Rugworth: We're also positioned to grow with 5G events, which occurs with new releases of the 5G standard. Content drivers in 5G events include an additional transmit pack, non-forestry network connectivity, and requirements for power class 2 amplifiers to increase output power, improve data throughput, and extend cell site coverage. During the quarter, we rent multiple new products leveraging our newest law and LRT solve processes. For Android OEM, we commend shipments of the most functionally dense mid-highband pad on the market. This new MHB pad integrates the diversity received content that was historically offered in a separate solve-based module. It is a highly complex multi-trip module that features Qorvo's internal law, LRT solve and gas HPT, as well as CMOS and silicon on insulator that we source from our foundry network.

Speaker Change: We are also positioned to grow with <unk> advanced which occurs with new releases of the <unk> standard.

Speaker Change: Content drivers and <unk> advance include an additional transmit path.

Speaker Change: Non terrestrial network connectivity and requirements for power class II amplifiers to increase output power improved data throughput and extend sell side coverage.

Robert A. Bruggeworth: During the quarter, we ran multiple new products leveraging our newest BHA and LRT SAW processes. For an Android OEM, we commend shipments of the most functionally dense mid-high bend pad on the market. This new MHB pad integrates the diversity received content that was historically offered in a separate SOB-based module. It is a highly complex multi-chip module that features Qorvo's internal BHA, LRT-SAW, and gas HVT, as well as CMOS and silicon-on-insulator that we sourced from our foundry network.

Speaker Change: During the quarter, we ramp multiple new products, leveraging our newest ball and LRT saw processes.

Speaker Change: For an Android OEM, we commenced shipments of the most functionally dense mid high band pad on the market.

Speaker Change: This new MH B pad integrates the diversity receive content that was historically offered in a separate solid based module.

Speaker Change: It is a highly complex multi chip module that features kormos internal bar LRT soar and gas HPT.

Speaker Change: As well as Cmos and silicon on insulator that we source from our foundry network.

Bob Rugworth: It improves efficiency and reduces power consumption while shrinking board space requirements by approximately 35%. Within mass markets, smartphones, we secured multiple design wins with our recently launched portfolio of low, mid-highband pad. Each LMH pad integrates the low, mid, and highband main path content that previously required two placements. This saves approximately 40% in board space, simplifies design, and helps customers accelerate their time to market. In mobile Wi-Fi, MediaTek selected Qorvo as the exclusive supplier of Wi-Fi 7 FEMS for customers of their DX4 Wi-Fi chipset. MediaTek's DX4 chipset and Qorvo's Wi-Fi 7 FEMS are optimized to deliver superior performance for flagship and mass markets.

Robert A. Bruggeworth: It improves efficiency and reduces power consumption while shrinking board space requirements by approximately 35%. Within mass market smartphones, we secured multiple design wins with our recently launched portfolio of low, mid, and high-band pads. Each LMH pad integrates the low-, mid-, and high-band main path content that previously required two placements.

Speaker Change: It improves efficiency and reduces power consumption, while shrinking board space requirements by approximately 35%.

Speaker Change: With a mass market smartphones, we secured multiple design wins with our recently launched portfolio of low mid high band pad.

Speaker Change: Each <unk> pad integrates the low mid and high band Manpack content that previously required two placements. This saves approximately 40% and board space simplifies design and helps customers accelerate their time to market.

Robert A. Bruggeworth: This saves approximately 40% in board space, simplifies design, and helps customers accelerate their time to market. In mobile Wi-Fi, MediaTek selected Qorvo as the exclusive supplier of Wi-Fi 7 FEMS for customers of their DX4 Wi-Fi chipset. MediaTek's DX4 chipset and Qorvo's Wi-Fi 7 FEMS are optimized to deliver superior performance for flagship and mass market smartphones.

Speaker Change: In mobile Wi Fi media Tech selected <unk> as the exclusive supplier of Wi Fi <unk> for customers of their Dx for Wi Fi chipset.

Speaker Change: Media tax export chipset and Corvo Wi Fi seven films are optimized to deliver superior performance for flagship and mass market smartphones.

Bob Rugworth: We also expanded our ultra-wide bend winds in the Android ecosystem to include an additional handset customer. Motorola's Moto X50 Ultra, which launched in the June quarter, features Corvo's ultra-wide bend SoC. This is our first wind and a mid-tier smartphone, and is an early indicator of ultra-wide bends proliferating across mass-market smartphone portfolios.

Robert A. Bruggeworth: We also expanded our ultra-wideband WINS in the Android ecosystem to include an additional handset customer. Motorola's Moto X50 Ultra, which launched in the June quarter, features Qorvo's Ultra-Wideband SoC. This is our first win in a mid-tier smartphone and is an early indicator of ultra-widebands proliferating across mass market smartphone portfolios. At a high level, the Qorvo team continues to deliver operational excellence. We are investing in core strengths to differentiate our products while executing on cost initiatives and productivity improvements to reduce our capital intensity to structurally enhance our growth margin. For example, as we committed to during our Investor Day in June, we are migrating to larger wafer diameters. During the June quarter, we successfully completed our migration to 8-inch ball, and our ball lines are now exclusively 8-inch.

Speaker Change: We also expanded our ultra wideband wins in the Android ecosystem to include an additional handset customer.

Speaker Change: <unk> Moto X 50, ultra which launched in the June quarter features core Roes Ultra Wideband Soc.

Speaker Change: This is our first win in a mid tier smartphone and is an early indicator of ultra wideband proliferating across mass market smartphone portfolios.

Bob Rugworth: At a high level, the Corvo team continues to deliver operational excellence. We are investing in core strengths to differentiate our products while executing on cost initiatives and productivity improvements to reduce our capital intensity to structurally enhance our growth margin. As we committed to during our Investor Day in June, we are migrating to larger wafer diameters. During the June quarter, we successfully completed our migration to 8-inch ball, and our ball lines are now exclusively 8-inch. We also committed to a model long-term growth in each operating segment, with R&D investments focused on large opportunities. In ACG, our investments are focused on growing in our largest customer.

Speaker Change: At a high level. The corvo team continues to deliver operational excellence, we are investing in core strengths to differentiate our products, while executing on cost initiatives and productivity improvements to reduce our capital intensity to structurally enhance our gross margin.

Speaker Change: As we committed to during our Investor day in June we are migrating to a larger wafer diameters. During the June quarter, we successfully completed our migration to eight inch ball and our ball lines are now exclusively eight inch.

Robert A. Bruggeworth: We are also committed to a model of long-term growth in each operating segment, with R&D investments focused on large opportunities. In ACG, our investments are focused on growing and our largest customers. In HPA, our investments are focused on defense and aerospace, along with power management. In CSG, our investments are focused on automotive connectivity, Advanced Wi-Fi RF Solutions, and Matter and Ultra Wideband SSCs.

Speaker Change: We're also committed to a model of long term growth in each operating segment with R&D R&D investments focused on large opportunities.

Speaker Change: And ACG, our investments are focused on growing in our largest customer.

Bob Rugworth: In HPA, our investments are focused on defense and aerospace, along with power management. In CSG, our investments are focused on automotive connectivity, advanced Wi-Fi RF solutions, and Matter and ultra-wide bend SOC. Corvo's technologies are critical in solving our customers' most complex RF and power challenges related to efficiency, performance, and size, and we are confident in our long-term growth and diversification.

Speaker Change: And HPA, our investments are focused on defense and aerospace along with power management.

Speaker Change: And CST, our investments are focused on automotive connectivity.

Speaker Change: Advanced Wi Fi RF solutions, and matter and ultra Wideband <unk> co.

Robert A. Bruggeworth: Qorvo's technologies are critical in solving our customers' most complex RF and power challenges related to efficiency, performance, and size, and we are confident in our long-term growth and diversification. And with that, I'll turn the call over to Grant. Thanks, Bob, and good afternoon, everyone. Revenue for the quarter was $887 million, representing a decrease of 6% sequentially and an increase of approximately 36% year over year.

Speaker Change: <unk> technologies are critical in solving our customers' most complex RF and power challenges related to efficiency performance and size and we are confident in our long term growth and diversification.

Grant Brown: And with that, I'll turn it over to Grant. Thanks, Bob, and good afternoon, everyone. Revenue for the quarter was $887 million, representing a decrease of 6% sequentially and an increase of approximately 36% year-over-year. Non-Gap growth margin of 40.9% in the June quarter came in at the high end of our guidance range of 41%, benefiting from product mix on higher revenue. Non-GAAP operating expenses in the quarter were $265 million, which included $4 million of spend associated with our digital transformation. As we progress through this multi-year effort, the spend will be included in the other operating expense line on our non-GAAP P&L, and we will provide expense guidance related to this initiative on a quarterly basis.

Grant: With that I'll turn the call over to grant.

Grant A. Brown: Non-GAAP gross margin of 40.9% in the June quarter came in at the high end of our guidance range of 40 to 41%, benefiting from product mix on higher revenue. Non-GAAP operating expenses in the quarter were $265 million, which included $4 million of spend associated with our digital transformation. As we progress through this multi-year effort, the spend will be included in the other operating expense line on our non-GAAP P&L, and we will provide expense guidance related to this initiative on a quarterly basis.

Grant: Thanks, Bob and good afternoon, everyone revenue for the quarter was $887 million representing.

Grant: Representing a decrease of 6% sequentially and an increase of approximately 36% year over year.

Grant: non-GAAP gross margin of 49% in the June quarter came in at the high end of our guidance range of 40% to 41% benefiting from product mix on higher revenue.

Grant: non-GAAP operating expenses in the quarter were $265 million, which included $4 million of spend associated with our digital transformation as we progressed through this multi year effort. The spend will be included in the other operating expense line on our non-GAAP P&L and we will provide expense guidance really.

Grant: Added to this initiative on a quarterly basis.

Grant Brown: Non-Gap diluted EPS was $0.87, which was also above the high end of our guidance range due to higher revenue and gross margin, offset by slightly higher operating expense. On the balance sheet, as of quarter-end, we had $1.1 billion of cash and equivalents and approximately $1.5 billion of long-term debt outstanding. During the quarter, we retired $27 million of our 2024 notes and have approximately $412 million remaining. These notes are classified as current and will mature in mid-December. Subject to changes in the interest rate environment and other factors, we currently expect to retire these short-term notes later this year.

Grant A. Brown: Non-GAAP diluted EPS was 87 cents, which was also above the high end of our guidance range due to higher revenue and gross margin offset by slightly higher operating expense. On the balance sheet, as of quarter end, we had $1.1 billion of cash in equivalents and approximately $1.5 billion of long-term debt outstanding. During the quarter, we retired $27 million of our 2024 notes and have approximately $412 million remaining.

Grant: non-GAAP diluted EPS was <unk> 87.

Grant: Which was also above the high end of our guidance range due to higher revenue and gross margin offset by slightly higher operating expense.

Grant: On the balance sheet as of quarter end, we had $1 1 billion of cash and equivalents and approximately $1 5 billion of long term debt outstanding.

Grant: During the quarter, we retired $27 million of our 2024 notes and have approximately $412 million remaining.

Grant A. Brown: These notes are classified as current and will mature in mid-December. Subject to changes in the interest rate environment and other factors, we currently expect to retire these short-term notes later this year. We ended the quarter with a net inventory balance of $727 million, representing a sequential increase of $16 million, composed primarily of WIP and raw materials, as we support the seasonal ramp at our largest customer. Turning to the cash flow statement, in fiscal Q1, we generated operating cash flow of $81 million and capital expenditures of $38 million, leading to free cash flow of $43 million.

Grant: These notes are classified as current and will mature in mid December subject to changes in the interest rate environment and other factors. We currently expect to retire. These short term notes later this year.

Grant Brown: We ended the quarter with a net inventory balance of $727 million, representing a sequential increase of $16 million, composed primarily of width and raw material, as we support the seasonal ramp at our largest customer. Turning to the cash flow statement, in fiscal Q1 we generated operating cash flow of $81 million and capital expenditures of $38 million, leading to free cash flow of $43 million. As a reminder, our CAPEX spend will vary quarter to quarter and reflect the timing of cash disbursement for capital purchase. Consequently, CAPEX as a percentage of sales in any given quarter may be above or below our annual target of approximately 5% of sales.

Grant: We ended the quarter with a net inventory balance of $727 million.

Grant: Representing a sequential increase of $16 million composed primarily of width and raw material as we support the seasonal ramp at our largest customer.

Grant: Turning to the cash flow statement in fiscal Q1, we generated operating cash flow of $81 million and capital expenditures of $38 million.

Grant: Leading to free cash flow of $43 million as a reminder.

Grant A. Brown: As a reminder, our CapEx spend will vary quarter to quarter and reflect the timing of cash disbursements for capital purchases. Consequently, CapEx as a percentage of sales in any given quarter may be above or below our annual target of approximately 5% of sales. We repurchased $125 million of stock at $101 per share in the quarter.

Grant: Under our Capex spend will vary quarter to quarter and reflects the timing of cash disbursements for capital purchase Consequently, capex as a percentage of sales in any given quarter may be above or below our annual target of approximately 5% of sales.

Grant Brown: We repurchased $125 million of stock at $101 per share in the quarter. The rate and pace of our share repurchase considers several key factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations. This approach ensures that our capital allocation strategy balances future growth with return of capital and aligns our underlying goal of delivering long-term shareholder value.

Grant: We repurchased $125 million of stock at $101 per share in the quarter the rate and pace of our share repurchase considers several key factors, including our long term financial outlook free cash flow debt maturities alternative uses of cash and other relevant strategic.

Grant A. Brown: The rate and pace of our share repurchase considers several key factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations. This approach ensures that our capital allocation strategy balances future growth with return of capital and aligns our underlying goal of delivering long-term shareholder value. Turning to our current quarter outlook, we expect revenue of approximately $1,025,000,000, plus or minus $25 million, non-GAAP gross margin between 46 and 47 percent, and non-GAAP diluted EPS between $1.75 and $1.95.

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

Grant Brown: Turning to our current quarter outlook, we expect revenue of approximately $1 billion, $25 million, plus or minus $25 million. Non-GAAP gross margin between 46 and 47%, and non-GAAP diluted EPS between $1.75 and $1.95. As communicated at our Investor Day in June, gross margin is expected to improve as we execute on key objectives. Progress will be driven by business and product mix, internal factory utilization, and productivity initiatives. Volume of production outsourced to external partners and other factors. Throughout the fiscal year, gross margin will vary on a quarterly basis due to these factors. Given anticipated product mix and production schedules, we currently believe fiscal Q1 will mark the low point of gross margin in fiscal 25.

Jake: Turning to our current quarter outlook, we expect revenue of approximately $1 billion $25 million plus or.

Jake: <unk> $25 million non.

Jake: non-GAAP gross margin between 46%, 47% and non-GAAP diluted EPS between $1 75, and $1 95.

Grant A. Brown: As communicated at our investor day in June, gross margin is expected to improve as we execute on key objectives. Progress will be driven by business and product mix, internal factory utilization, and productivity initiatives, volume of production outsourced to external partners, and other factors. Throughout the fiscal year, gross margin will fluctuate on a quarterly basis due to these factors.

Jake: As communicated at our Investor Day in June gross margin is expected to improve as we execute on key objectives.

Jake: Progress will be driven by business and product mix internal factory utilization and productivity initiatives.

Jake: <unk> of production outsource to external partners and other factors.

Jake: Throughout the fiscal year gross margin will vary on a quarterly basis due to these factors.

Grant A. Brown: Given anticipated product mix and production schedules, we currently believe Fiscal Q1 will mark the low point of gross margin for Fiscal 25. We project non-GAAP operating expenses in the September quarter will be approximately $275 million, with variability related to the timing of product development, spend, and other factors. The sequential increase is comprised primarily of other operating expenses driven by our digital transformation, which is expected to be approximately $10 million this quarter.

Jake: Given anticipated product mix and production schedules. We currently believe fiscal Q1 will mark the low point of gross margin in fiscal 'twenty five.

Grant Brown: We project non-GAAP operating expenses in the September quarter will be approximately $275 million, with variability related to the timing of product development spend and other factors. The sequential increase is comprised primarily of other operating expense driven by our digital transformation, which is expected to be approximately $10 million this quarter. During fiscal 25, we continue to expect approximately $40 million of expense related to this project, with quarterly variability related to the achievement of progress-based milestones. Below the operating income line, our non-GAAP expense is expected to be between $8 to $10 million, reflecting interest paid on our fixed-rate debt offset by interest income earned on our cash balances, effects gains or losses, along with other items. Presuming we retire our 2024 notes in mid-December, we expect non-operating expense to increase in the March quarter by $3 to $4 million over the current run rate.

Jake: We project non-GAAP operating expenses in the September quarter will be approximately $275 million with variability related to the timing of product development spend and other factors.

Jake: The sequential increase is comprised primarily of other operating expense driven by our digital transformation, which is expected to be approximately $10 million this quarter.

Grant A. Brown: During fiscal 25, we continue to expect approximately $40 million of expense related to this project with quarterly variability related to the achievement of progress-based milestones. Below the operating income line, our non-GAAP expense is expected to be between $8 to $10 million, reflecting interest paid on our fixed rate debt offset by interest income earned on our cash balances, FX gains or losses, along with other items.

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

Jake: Below the operating income line, our non-GAAP expense is expected to be between $8 million to $10 million, reflecting interest paid on our fixed rate debt offset by interest income earned on our cash balances FX gains or losses, along with other items.

Grant A. Brown: Presuming we retire our 2024 notes in mid-December, we expect non-operating expense to increase in the March quarter by $3-4 million over the current run rate. This is due to the differential in the interest rate we pay on the 1.75% 2024 notes versus the interest rate that we currently earn on our cash balances of approximately $5,000. Our non-GAAP tax rate for fiscal 25 is expected to be within a range of 10 to 12 percent.

Jake: Presuming, we retire our 2024 notes in mid December we expect nonoperating expense to increase in the March quarter by 3% to $4 million over the current run rate.

Grant Brown: This is due to the differential in the interest rate we pay on the 1.75% 2024 notes versus the interest rate that we currently earn on our cash balances of approximately $5 million. 3% Our non-GAB tax rate for fiscal 25 is expected to be within a range of 10 to 12%. We project this will increase over time due to changes in tax legislation, such as the global minimum tax and other factors.

Jake: This is due to the differential in the interest rate we pay on the 175% 2024 notes.

Jake: Versus the interest rate that we currently earned on our cash balances of approximately 5%.

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

Operator: We project this will increase over time due to changes in tax legislation such as the global minimum tax and other factors. Looking at operations, the Qorvo team continues to execute exceptionally well. As Bob mentioned, we completed the transition of our BOD lines to exclusively eight inch, and we are seamlessly running product through the Beijing and Dejou facilities now owned by Luxair. We are leveraging internal factories and advanced packaging facilities that are critical differentiators for each of our operating segments while outsourcing to our robust Foundry and OSAP partners, where we benefit from their scale and R&D investments.

Grant Brown: Looking at operations, the Corvo team continues to execute exceptionally well. As Bob mentioned, we completed the transition of our bond lines to exclusively 8 inch, and we are seamlessly running products through the Beijing Indigo facilities, now owned by LoveShare. We're leveraging internal factories and advanced packaging facilities that are critical differentiators for each of our operating segments, while outsourcing to our robust Foundry and OSAT partners, where we benefit from their scale and R&D investments. Our three operating segments serve a broad set of markets that are underpinned by multi-year growth drivers. We are critical to solving our customers' most complex challenges related to RF and power, and we are confident in our ability to deliver long-term revenue growth, increasing diversification, and improved profitability.

Bob: Looking at operations. The Corvo team continues to execute exceptionally well as Bob mentioned, we completed the transition of our bottom lines to exclusively eight inch and we are seamlessly running product through the Beijing into Joe facilities now owned by luck sure.

Speaker Change: We are leveraging internal factories in advanced packaging facilities that are critical differentiators for each of our operating segments, while outsourcing to a robust foundry and OCI partners, where we benefit from their scale and R&D investments.

Operator: Our three operating segments serve a broad set of markets that are underpinned by multi-year growth drivers. We're critical to solving our customers' most complex challenges related to RF and power, and we are confident in our ability to deliver long-term revenue growth, increasing diversification, and improved profitability. At this time, please open the line for questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on a touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the. If at any time your question has been answered and you would like to withdraw your question, please press star and then two.

Speaker Change: Our three operating segments serve a broad set of markets that are underpinned by multi year growth drivers were critical to solving our customers' most complex challenges related to RF and power and we are confident in our ability to deliver long term revenue growth, increasing diversification and improved profitability at this.

Unknown Executive: At this time, please open the line for questions.

Speaker Change: Time, please open the line for questions. Thank you.

Unknown Executive: Thank you.

Unknown Executive: We will now begin the question and answer session. To ask a question, you may press star, then one, on a touchdown phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, and then two. Also, please limit yourself to one question and one follow-up.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on a touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw. Your question. Please press Star and then to also please limit yourself to one.

Speaker Change: Question and one follow up our first question comes from Quinn Bolton with Needham and company. Please go ahead.

Quinn Bolton: Our first question comes from Quinn Bolton with Needham & Company.

Operator: Also, please limit yourself to one question and one follow-up. Our first question comes from Quinn Bolton with Needham & Company. Please go ahead.

Bob Rugworth: Please go ahead. Hey guys, congratulations on the nice results. Now look, I just wanted to start with kind of a big picture question. Your largest customer, I think, got the market pretty excited about the possibility of AI smartphones and just wondering if you've started to see any impact, any increase in demand driven by the AI smartphone trend, whether it's your largest customer or within the Android channel, and then I've got a follow-up program.

Nathaniel Quinn Bolton: Hey guys, congratulations on the nice results and outlook. I just wanted to start with kind of a big picture question. Your largest customer, I think, got the market pretty excited about the possibility of AI smartphones. And I was just wondering if you've started to see, you know, any impact, any increase in demand driven by the AI smartphone trend, whether it's your largest customer or within the Android channel, and then I've got a follow-up for Grant. Hey Quinn,

Quinn Bolton: Hey, guys. Congratulations on the nice results and outlook I just wanted to start with kind of a big picture question. Your largest customer I think <unk> got the market pretty excited about the possibility of AI smartphones and just wondering.

Speaker Change: If you've started to see any impact any any increase in demand driven by the AI smartphone trend, whether it's your largest customer within the Android channel and then I've got a follow up for grant.

Bob Rugworth: Quinn, thanks again for your comments. As far as AI goes, I think we're taking more of a conservative approach. I mean, clearly we saw that and what Samsung released in the S24. And just a reminder, group, we've got excellent dollar content in that, and they had a pretty nice ramp. It wasn't tremendous above what expectations were, but they did a good job this year with the S24 when it was due to AI or not, not clearly sure.

Robert A. Bruggeworth: Thanks again for your comments. And as far as AI goes, I think we're taking more of a cautious approach. I mean, clearly, we saw that in what Samsung released with the S24. And just to remind the group, we've got excellent dollar content in that. And, you know, they had a pretty nice ramp. It wasn't tremendously above what expectations were, but they did a good job this year with the S24. Whether it was due to AI or not is not clearly sure.

Speaker Change: Quinn. Thanks, Thanks, again for your comments and as far as AI goes I think we're taking more of a conservative approach I mean, clearly we saw that in what Samsung released in the <unk> 24, and just to remind the group. We've got excellent dollar content in that and they had a pretty nice ramp it wasn't tremendous above what expectations were but they did a good job this year.

Speaker Change: <unk> 24, when it was due to AI or not not clearly sure and as far as our largest customer goes since they haven't released their next generation phones, we're not going to comment, but I think as an industry. It would be wonderful if that.

Robert A. Bruggeworth: And as far as our largest customer goes, since they haven't released their next-generation phones, we're not going to comment. But I think as an industry, it would be wonderful if that AI came out, it was very useful for users, and it reduced the replacement cycle time so that we would see an uplift. That would be fantastic.

Bob Rugworth: As far as our largest customer goes, since they haven't released their next generation phones, we're not going to comment. But I think, as an industry, it would be wonderful if that AI came out. It was very useful for users, and it reduced the replacement cycle time so that we would see an uplift. That would be fantastic, but that's not what we're modeling at this time.

Speaker Change: AI came out it was very useful for users and it reduced the replacement cycle time, so that we would see an uplift that would be fantastic, but that's not what we're modeling at this time.

Unknown Executive: Got it. Thank you.

Nathaniel Quinn Bolton: But that's not what we're modeling at this time. Got it. Thank you. And then for Grant, just wondering if you could give us an update on your thoughts, sort of, as you move into the back half of the calendar year, thoughts on utilization rates, and any update on the flush of the high-cost Android inventory. Is that now mostly out of the model as you move into the September quarter? Thank you.

Got it. Thank you and then for Greg just wondering if you could give us an update on your thoughts sort of.

Grant Brown: And then for Grinch, just wondering if you could give us an update on your thoughts. As you move into the back after the calendar year, thoughts on utilization rates, and any update on the flush of the high-cost Android inventory, is that now mostly out of the model as you move into the September quarter? Thank you.

As you move into the back half of the calendar year thoughts on utilization rates.

Greg: And any update on the flush of the high cost Android inventories that now mostly out of the model as we move into the September quarter. Thank you.

Grant Brown: Thanks, Lynn. In the September guide, we expect a sequential increase in gross margin, and that's primarily related to MIX. The September quarter, and to a lesser degree December quarter, will benefit from a higher mix of customized solutions for flagship tier phones. That product MIX generally includes a higher amount of externally sourced silicon and SOI content. It's not impacted by internal utilization level, so that's one dynamic that's apparent. And that compares to our prior two quarters where revenue was comprised of a larger mix of high-cost standard products that were burdened by prior periods of underutilization. In the quarter just concluded, we saw approximately 200 basis points of headwind associated with underutilization, and in the September quarter, we should see it falling to around or slightly less than 100 basis points, and then negligible for the back half of the year.

Grant A. Brown: In the September guide, we expect a substantial sequential increase in gross margin. And that's primarily related to mix. The September quarter and, to a lesser degree, the December quarter will benefit from a higher mix of customized solutions for flagship tier phones. That product mix generally includes a higher amount of externally sourced silicon and SOI content. It's not impacted by internal utilization levels.

Greg: Thanks Lynn.

Speaker Change: September guide, we expect a substantial sequential increase in gross margin and that's primarily related to mix.

Speaker Change: September quarter and to a lesser degree December quarter will benefit from higher mix of customized solutions for flagship tier phones.

Grant A. Brown: So that's one dynamic that's occurring, and that compares to our prior two quarters, where revenue was comprised of a larger mix of high-cost, standard products that were burdened by prior periods of underutilization. In the quarter just concluded, we saw approximately 200 basis points of headwind associated with underutilization. And in the September quarter, we should see it falling to around or slightly less than 100 basis points, and then negligible for the back half of the year. Perfect.

Speaker Change: Product mix generally includes a higher amount of externally sourced silicon and soi content, it's not impacted by internal utilization levels. So that's one dynamic that's occurring and that compares to our prior two quarters, where revenue was comprised of a larger mix of high cost standard products that were burdened by prior P.

Speaker Change: <unk> of under utilization in the quarter. Just concluded we saw approximately 200 basis points of headwind associated with under utilization in the quarter. The September quarter, we should see.

Speaker Change: It falling to around or slightly less than 100 basis points and then negligible for the back half.

Speaker Change: Of the year.

Unknown Executive: Perfect. Thank you.

Speaker Change: Perfect. Thank you.

Speaker Change: Okay.

Tim Arcuri: The next question comes from Tim Arcuri with UBS. Please go ahead. Hi, this is a monon for Tim. I just wanted to get some fuel for your China mobile market. You know, sell-through data has been getting a little bit better recently, but trying to get a sense for what you might be seeing there and how that might be progressing as we move forward throughout the calendar year.

Operator: Thank you. The next question comes from Tim Arcuri with UBS. Please go ahead.

Speaker Change: The next question comes from Tim.

Tim: Our carry with UBS. Please go ahead.

Operator: Hi, this is Aman on for Tim. I just wanted to get a feel for your China mobile market, you know, sell through data. Getting a little bit better recently, but trying to get a sense for what you might be seeing there and how that might be progressing as we move forward throughout the calendar year.

Aman: Hi, This is a man on for Tim I, just wanted to get.

Speaker Change: Some feel for your China mobile market sell through data has been getting a little bit better recently.

Speaker Change: But how do you get a sense for what you might be seeing there and how could that that might be progressing as we move forward throughout the calendar year.

David Fullwood: Hi, I'm on this is Dave. Yeah, I think we're seeing the same data you're seeing. It's a little bit better year over year. I mean, right now, based on the numbers we're tracking, we expected to be up in a low single-digit percent, kind of similar to the overall smartphone market, and we're calling that. So the 618 holiday was with a little better year over year. But overall, if you look at the cumulative smartphone sale today, it's pretty flat to up slightly from what we see. Thank you.

David Fullwood: Yeah, I think we're seeing the same data here, seeing it's a little bit better year over year. I mean, right now, based on the numbers we're tracking, we expect it to be up in the low single-digit percent, kind of similar to the overall smartphone market. I know we're calling that. So the 6-18 holiday was a little better year over year.

Speaker Change: Hi, Emlen this is Dave.

Dave: Yes, I think we're seeing the same data you're seeing is a little bit better year over year, I mean, right now based on the numbers. We're tracking we expect it to be up low single digit percent kind of similar to the overall smartphone market, we're calling that.

Dave: So 2018 holiday was a little better year over year, but overall, if you look at the cumulative smartphone sales to date.

Dave: It's pretty flat to up slightly from what we see.

Speaker Change: Thank you.

Christopher Rolland: And the next question comes from Christopher Roland with Susquehanna. Please go ahead. Hey guys, thanks for the question. I guess maybe getting back to the September quarter, just a question I keep getting asked from investors is around revenue still being down year over year. And I think the assumption is you have content growth at your largest customer. And perhaps we have an AI refresh cycle. I know you're conservative there. I appreciate that conservatism. But still, why not growth or at least flat year over year, particularly in mobile? Thank you.

David Fullwood: But overall, if you look at the cumulative smartphone sales to date, it's pretty flat to slightly up from what we see. Thank you. And the next question comes from Christopher Rolland with Susquehanna. Please go ahead.

Speaker Change: And the next question comes from Christopher Roland with Susquehanna. Please go ahead.

Christopher Adam Jackson Rolland: Hey guys, thanks for the question. I guess, yeah, maybe getting back to the September quarter, just a question I keep getting asked from investors, is around revenue still being down year over year. And I think the assumption is you have content growth at your largest customer. So, and perhaps we have an AI refresh cycle. I know you're conservative there.

Christopher Adam Jackson Rolland: Hey, guys. Thanks for the question.

Christopher Adam Jackson Rolland: I guess, yes.

Speaker Change: Maybe getting back to.

Speaker Change: The September quarter, just a question I keep getting asked from investors.

Speaker Change: Is around.

Speaker Change: Revenue is still being.

Speaker Change: Down year over year.

Speaker Change: And I think the assumption is you have content growth at your largest customer so and perhaps we have an AI refresh cycle. I know you are conservative there I appreciate that conservatism.

Grant A. Brown: I appreciate that conservatism, but still, why not growth or at least flat year over year, particularly in mobile? Thanks for the question, Chris. At least in terms of the September guide, year over year, the slight decline is principally related to smartphone revenues.

Speaker Change: But still why not growth or at least flat year over year.

Speaker Change: Particularly in mobile thank you.

Grant Brown: Thanks for the question, Chris. At least in terms of the September guide year over year, this flight decline is principally related to smartphone revenues. We've talked in the past about significant gains in our largest customers. And maybe Dave can follow up from me and comment there. But those assumptions in the guide contemplate total smartphone market, skews, unit volumes, timing, mix, and all of that may prove conservative or vice versa. But we'll have to see how things play out. But overall, you'll feel very, very, very comfortable with our assumptions. Dave, I don't know if you want to add on to the customer.

Speaker Change: Thanks for the question Chris.

Speaker Change: At least in terms of the September guide year over year. This slight decline is principally related to smartphone revenues.

Grant A. Brown: We've talked in the past about significant gains in our largest customers, and maybe Dave can follow up for me and comment there. But those assumptions in the guide contemplate total smartphone market SKUs, unit volumes, timing, mix, and all of that may prove conservative or vice versa. But we'll have to see how things play out.

Speaker Change: In the past about significant gains at our largest customers and maybe Dave can follow up for me and comment there, but those assumptions.

Dave: In the guide contemplate total smartphone market.

Dave: Skus unit volumes timing mix and all of that May prove conservative or vice versa, but we'll have to see how things play out, but overall feel very very very comfortable with with our assumptions, Dave I know if you want to add on the contrary.

Grant A. Brown: But overall, I feel very, very, very comfortable with our assumptions. Dave, I don't know if you want to add anything to the content. Sure. And you guys know we've talked about some of these marquee models that ramped up in the first half of our content there. So, you know, the S24, we had over five dollars of content, and we're on the other side of that ramp now. The Pixel, we had about 15 dollars of content, so we're also on the other side of that ramp as well. So we had some strong ramps in the first half that we're now on the other side of.

David Fullwood: And you guys know we've talked about some of these marquee models that ramped in the first half in our content there. So, you know, the S24, we had over $5 a content. And we're on the other side of that ramp now. The pixel, we had about $15 a content. So we're also on the other side of that ramp as well. So we had some strong ramps in the first half that we're now on the other side of. And then Bob mentioned our low, mid-high, and some design ones we have there. We actually have purchase orders on the folks now.

Dave: As you guys know we've talked about some of these.

Dave: Marquee modest bit ramped in the first half and our content there so.

Dave: The F. 'twenty four we had over $5 of content and on the other side of that ramp now.

Dave: Pixel, we add about $15 of content. So we're also on the other side of that ramp as well.

Dave: So we had some strong ramps in the first half they were now on the other side of and then Bob mentioned, our low mid high and some design wins, we have in there and we actually have purchase orders on the books now and now just starting to ramp at the very end of this quarter. So that will ramp up as we go through the balance of this year and into next year. So we're it's kind of a.

David Fullwood: And then Bob mentioned our low, mid, and high price ranges and some design wins we have there. We actually have purchase orders on the books now, and that'll just start to ramp up at the very end of this quarter. So that'll ramp up as we go through the balance of this year and into next year. So there's kind of a timing situation happening there in the Android ecosystem. And so that's probably a little bit of a problem. That's very helpful, thank you.

David Fullwood: And that'll just start to ramp at the very end of this quarter. So, you know, that'll ramp up as we go through the balance of this year and into next year. So, it's kind of a timing situation happening there in the Android ecosystem. And so that's probably a little bit of a pot.

Dave: Timing.

Dave: <unk> situation happening there in the Android ecosystem and.

Speaker Change: So thats, probably a little bit of a pocket and what youre seeing in September.

Unknown Executive: That's very helpful. Thank you.

Speaker Change: That's very helpful. Thank you.

Bob Rugworth: Just a quick follow up. Bob, sometimes you give us some new products to look out for, like that low-mid highs talked about that before. Is there something else on the horizon, some new cool products that might be needle-moving for you that we should be on the lookout for? Yeah, the low-mid highs actually an interesting one because we're actually tearing it for the different product segments in the Android ecosystem. So for the mass tier and typically in the entry area, we're coming out with a lower cost that's not, excuse me, a lower cost LMH that we're starting to release to the markets.

Robert A. Bruggeworth: Just a quick follow-up, Bob, sometimes you give us some new products to look out for, like that low-mid-high you've talked about before. Is there something else on the horizon, some new cool products that might be needle-moving for you that we should be on the lookout for? Yeah, the low-mid-high is actually an interesting one because we're actually tiering it for the different product segments in the Android ecosystem.

Speaker Change: A quick follow up Bob sometimes you give us some new products to look out for like that low mid high you've talked about that before is there something else on the horizon, some new cool products.

Speaker Change: That might be needle moving for you that we should be on the lookout for.

Bob: Yes, the low mid high is actually an interesting one because we're actually tearing it for the different product segments in the Android ecosystem so for the.

Robert A. Bruggeworth: So, for the mass tier and typically in the entry area, we're coming out with a lower-cost LMH that we're starting to release to the market. So, we're actually expecting that to begin to ramp all of our low-mid-highs, starting a little bit this quarter, bigger obviously in December, and then carrying on in a much bigger way in the March quarter. So, I think that's a little bit different. A lot of times, people think when we talk low-mid-high, it's all the same product. It's not.

Bob: Mass tier and typically in the entry area, we're coming out with a lower cost.

Bob: That's not.

Bob: Excuse me a lower cost <unk>.

Bob: That we're starting to release to the market. So we're actually expecting that to begin to ramp all of our low mid high <unk>.

Bob Rugworth: So we're actually expecting that to begin to ramp all of our low-mid highs starting a little bit this quarter, bigger obviously in December and carrying on in a much bigger way in the March quarter. So I think that's a little bit different. A lot of times you people think when we talk low-mid highs, all the same product that's not, we're tearing it for the different various entry tier, mass tier to the high tier. So I think that's pretty exciting. And of course, we're working on some others and don't necessarily need to telegraph those at this time.

Bob: Starting a little bit this quarter bigger obviously in December and then carrying on in a much bigger way.

Bob: The March quarter, So I think thats, a little bit different a lot of times.

Bob: People think when we talk low mid high it's all the same product that's not we're tearing it for the different various entry.

Bob: Entry tier mass tier to the high tier so I think thats pretty exciting and of course, we're working on some others don't necessarily need to telegraph those at this time.

Robert A. Bruggeworth: We're tiering it for the different entry tiers, mass tier to the high tier. So, I think that's pretty exciting. And, of course, we're working on some others, and I don't necessarily need to telegraph those at this time, but also, that mid-high band pad where we integrated the diversity receive functions is doing extremely well. And we saw a really great ramp at one of our larger Android customers there as well.

Bob Rugworth: But also that mid-highband pad where we integrated in the diversity received functions is doing extremely well, and we saw a really great ramp, but one of our larger Android customers there as well. Yeah, I would just add to that. I mean, I appreciate the question, but these products just ramped, and our customers and ourselves, we like to get some scale off these products. So they generally run for a couple of years. And so the product office mentioned, we'll have that same content next year. So the $15 or so of content we had this past year, we'll get that again next year.

Bob: It also that mid high band pad, where we integrated in the diversity received functions is doing extremely well and we saw really great ramp at one of our larger Android customers there as well.

Robert A. Bruggeworth: Yeah, I would just add to that, Bob. I appreciate the question, but these products have just ramped up, and you know, our customers and ourselves, we like to get some scale off these products. So they generally run for a couple of years.

Speaker Change: I would just add to that Bob.

Speaker Change: I appreciate the question, but these products just ramp and our customers and ourselves we'd like to get some scale off. These products are they generally run for a couple of years and so the product. Bob just mentioned, we will have that same content next year, so that the $15 or so of content. We had this past year, we will get that again next year in the low mid high our customers are really excited about that very strong <unk>.

Bob Rugworth: And the low-mid high, our customers are really excited about that. Very strong engagements across all of our customers in China. And they plan to use that for several generations across their product portfolio. So we're certainly in those discussions for the longer term with all of our customers. We engage in a roadmap discussion several years out, but nothing to report yet gave us little time to get some volume under our belt on these current products.

Speaker Change: Gage minutes across all of our customers in China, and they plan to use that for several generations.

Speaker Change: Their product portfolio. So we're certainly in those discussions for the longer term and with all of our customers. We engage in a roadmap discussions several years out.

Speaker Change: But nothing to report yet give us a little time to get some volume under our belt on these current products.

Unknown Executive: Nothing in DC to play for other markets, yeah. Awesome. Thank you, guys. Cool new products. Appreciate it. Thank you.

David Fullwood: And so that product Bob just mentioned, we'll have the same content next year. So the $15 or so of content we had this past year, we'll get that again next year. And, you know, the low mid-high, our customers are really excited about this very strong engagement across all of our customers in China, and they plan to use that for several generations and across their product portfolio. So we're certainly in those discussions for the longer term; with all of our customers, we engage in those roadmap discussions several years out. Nothing to report yet; give us a little time to get some volume under our belt on these.

Speaker Change: Plenty plenty for other markets yet.

Speaker Change: Awesome. Thank you guys call new products appreciate it.

Christopher Adam Jackson Rolland: Thank you guys. Cool new products. I appreciate it.

Unknown Executive: Again, if you have a question, please press star.

Speaker Change: <unk>.

Operator: Thank you. Again, if you have a question, please press star and then one. Our next question comes from Karl Ackerman with PNB Paribas. Please go ahead.

Speaker Change: Again, if you have a question. Please press star and then one our next question comes from Karl Ackerman with <unk> <unk>. Please go ahead.

Karl Ackerman: And then one, our next question comes from Carl Ackerman with PNB Parabaugh. Please go ahead. Yes, thank you. You spoke about the transition to eight inch ballway first for internal manufacturing, which is great, but you've also discussed today and in the past that you have worked with third party foundries for external silicon. I guess, how do you think about the optimal tradeoff between internal production versus using external foundries over time that might help support margin expansion? Thanks. Sure. So thanks for the question, Carl. Generally, it's technology dependent.

Karl Ackerman: Yes, thank you. You spoke about the transition to 8-inch ball wafers for internal manufacturing, which is great. But you've also discussed today, and in the past, that you have worked with third-party foundries for external silicon. I guess, what do you think about the optimal trade-off between internal production versus using external foundries over time that might help support margin expansion? Thanks.

Karl Ackerman: Yes. Thank you.

Karl Ackerman: You spoke about the transition to eight inch ball wafers for internal manufacturing, which is great.

Karl Ackerman: But you've also discussed today and in the past that you have worked with third party foundries for external silicon.

I guess, how do you think about the optimal tradeoff between internal production versus using external foundries overtime.

Speaker Change: That might help support margin expansion.

Grant A. Brown: Sure. So, thanks for the question, Carl. Generally, it's technology-dependent. So, things like silicon or SOI, we have not done in-house and wouldn't consider doing in-house more efficiently than our partners can.

Speaker Change: Sure. So thanks for the question Carl generally is technology dependent so things like silicon our Soi, we have not done in house and wouldn't consider doing in house.

Bob Rugworth: So things like silicon or SOI, we have not done in-house and wouldn't consider doing in-house more efficiently than our partners can. Other areas where we can differentiate ourselves, especially like ball where there's not a foundry network available, will continue to produce those products. They contain that internally as it differentiates us. And then from an OSAT perspective, in terms of assembly and test and other services, we can go out to a large partner network and benefit from their scale and their continued R&D investments. Yeah, maybe Davey, like in the past market, we see that assembly capability has something that differentiates us, so that's something that we do do internally.

Grant A. Brown: Other areas where we can differentiate ourselves, especially like BOG, where there's not a foundry network available, we'll continue to produce those products that contain that internally as it differentiates us. And then from an OSAT perspective, in terms of assembly and test and other services, we can go out to a large partner network and benefit from their scale and their continued R&D investment. Yeah, maybe one caveat to that, Grant, is that in the defense market, we see that assembly capability as something that differentiates. So that's something that we do. Got it. I got it.

Speaker Change: More efficiently than our partners can other areas, where we can differentiate ourselves with specialty like ball, where theres not a foundry network available we will continue to produce those products.

Speaker Change: They contain that internally.

Speaker Change: <unk> us and then from an OS at perspective in terms of assembly and test them and other services that we can go out to a large partner network and benefit from their scale and their continued R&D investments.

Speaker Change: Yes, maybe caveat that like in the defense market, we see that assembly capability add something that differentiates us.

Speaker Change: That's something that we do do internally.

Unknown Executive: Got it.

Karl Ackerman: Maybe one more, Jaime, just how to think about content growth. Just more broadly, I guess, you know, you spoke about at your analyst day how 5G enhanced will create more placement for antenna tuning and perhaps another placement for the ultra-high band pad. Could you talk, I suppose, Generally, in terms of how to think about the adoption of 5G and premium tier handsets over the next year or two? Thank you. Sure.

Speaker Change: Got it got it maybe one more if I may just how to think about content growth.

Unknown Executive: Maybe one more homemade, just how to think about content growth. Just more broadly, I guess you spoke about at your analyst day how 5G enhanced will create more placement for antenna tuning. And perhaps another placement for ultra high band pad. Could you talk, I suppose, generally in terms of how to think about the adoption for 5G improvement to your handsets of the next year, too. Thank you. Sure. Yeah, I think for those of you that were at the investor day, I think prompted a good job of laying out all the opportunities that we see coming in 5G advanced and unlicensed spectrum in foldable phones and different form factors that are driving lots of challenges for our customers.

Speaker Change: Just more broadly I guess.

Speaker Change: You spoke about at your analyst day, how <unk> enhanced.

Speaker Change: <unk> create more placement for antenna tuning and perhaps another placement for ultra high band pad.

Speaker Change: Could you talk I suppose.

Speaker Change: Generally in terms of how to think about the adoption for <unk> in premium tier handsets over the next year or two thank you.

David Fullwood: Yeah, I think for those of you that were at Investor Day, Frank did a good job of laying out all the opportunities that we see coming in 5G advanced and unlicensed spectrum and foldable phones and different form factors that are driving lots of challenges for our customers. And so that's all coming. I mean, those trends, those discussions are ongoing with all of our customers in terms of the new products that we're developing and how they plan to integrate those into their phones.

Speaker Change: Sure.

Speaker Change: Yes, I think for those of you that were at the Investor Day, I think Frank did a good job of laying out all the opportunities that we see coming and <unk> advance and unlicensed spectrum and foldable phones in different form factors that are driving lots of challenges for our customers.

Bob Rugworth: And so that's all coming. I mean, those trends, those discussions are ongoing with all of our customers in terms of the new products that we're developing and how they plan to integrate those in other phones. And then you've got trends like AI, right? That's going to drive, you know, higher data rates, lower latency, and that's all going to hopefully accelerate those trends that we talked about for 5G Advanced and some of those other features and increased power levels. And so, you know, as Bob mentioned earlier, it's still very early things for AI, but that accelerates.

Speaker Change: And so that's all coming in and those trends those discussions are ongoing with all of our customers in terms of the new products that we're developing and how they plan to integrate those and either owns and then you've got translate like AI right, that's going to drive higher data rates lower latency and that's all going to hopefully accelerate.

David Fullwood: And then you've got trends like AI, right? That's going to drive higher data rates, lower latency, and that's all going to hopefully accelerate those trends that we talked about for 5G advanced and some of those other features and increased power levels. And so, you know, as Bob mentioned earlier, it's still a very early age for AI.

Speaker Change: Those trends that we've talked about for <unk> advanced in some of those other.

David Fullwood: But but, as that accelerates, it should drive the RF content. Thank you. And the final question comes from Edward Snyder with Charter Equity Research. Please go ahead.

Speaker Change: Features and increased power levels and so as Bob mentioned earlier, it's still in very early innings for AI.

Bob: But but as that accelerates it should drive the RF content faster and accelerate the adoption of <unk> advanced.

Edward Snyder: It should drive the RF content faster, and it'll just accelerate the adoption of 5G advanced. Thank you.

Speaker Change: Okay.

Speaker Change: Thank you.

Jack Egan: And the final question comes from Edward Snyder with Charter Equity Research. Please go ahead. Thanks for taking the question.

Speaker Change: And the final question comes from Edward Snyder with Charter equity Research. Please go ahead.

Edward Francis Snyder: Second question, this is Jack Egan. So you've mentioned your content. Proof of Conduct, And I know you haven't guided to it, but I was hoping for a general ballpark idea of your expected content growth, or at least how it will be. Sorry, Jack, when you said content, I don't know what market you're talking about customers, which one of our business units. I need a little more color to help answer your question. Sure, sorry about that.

Jack Egan: This is Jack Egan on for at Snyder. So you mentioned your content should grow pretty strongly in the second half of this calendar year. And I think you haven't guided to it, but I was hoping you could just give us, you know, kind of a general ballpark idea of your expected content growth, or at least how it compares to prior years. And then I just had a quick follow-up.

Speaker Change: Thanks for taking the question. This is Jack Egan on for Ed Snyder.

Jack Egan: You mentioned your content should grow pretty strongly in the second half of this calendar year.

Speaker Change: Haven't guided to it but I was hoping you could just give us kind of a general ballpark idea of your expected content growth or at least how it compares to prior years and then I just had a quick follow up.

Jack Egan: Sorry, Jack, when you said content, I don't know what market you're talking about customers, which one of our business units. I need a little more color to help answer your question. Sure, sorry about that. I was talking about mobile content at your large customer. Okay, what I can say is what I've said probably the last couple quarters is I'm confident in our ability to grow at our largest customer game share this year, as well as I think we're in a great position to be able to gain share again next year at our largest customer. Got it.

Speaker Change: Sorry, Jack when you said content I don't know what market you are talking about customers, which one of our business units I need a little more color to help answer your question.

Robert A. Bruggeworth: I was talking about mobile content at... Okay. What I can say is what I've said probably the last couple quarters is that I'm confident in our ability to grow at our largest customer and gain share this year, as well as I think we're in a great position to be able to gain share again next year at our largest customer. Okay, and then

Jack Egan: Sure sorry about that I was talking about mobile content at your large customer.

Speaker Change: Okay. What I can say is what I've said, probably the last couple of quarters as I am confident in our ability to grow and our largest customer gain share this year as well as I think we're in a great position to be able to gain share again next year at our largest customer.

Unknown Executive: Okay.

Speaker Change: Got it okay.

David Fullwood: And then, so I guess on the non-mobile side, we've seen quite a few reports in the analog space so far call out some particular strengths in China in the second quarter. And of course it's a very different market from cellular, but so far that demand has seemed pretty broad base and in strength. And so have you seen the same rebound in China, maybe in the HPA or CSG or in the cellular business as well? and were there any areas of specific strength to call out?

Speaker Change: And then.

Edward Francis Snyder: So, I guess on the non-mobile side, we've seen quite a few reports in the analog space so far call out some particular strengths in China, and, of course... Transcribed by https://otter.ai, Rebound in China, maybe in, you know, the HPA, or in the cellular business as well, were there any, you know, Yeah, I wouldn't necessarily focus on China specifically. I mean, when we look at the markets that we serve, you know, it's pretty broad-based across HPA and CSG.

Speaker Change: So I guess on the non mobile side, we've seen quite a few reports in the analog space. So far call out some particular strength in China in the second quarter and of course, it's a very different market from cellular but so far that demand is.

Speaker Change: It seems pretty broad based.

Speaker Change: And then strength and so have you seen the same rebound in China, maybe in the HPA or <unk> or in the cellular business as well.

Speaker Change: And were there any areas of specific strength to call out.

David Fullwood: Yeah, I wouldn't necessarily maybe focus on China specifically. I mean, we look at the markets that we serve, you know, it's a pretty broad base across the HPA and CSG. I mean, if you look in China or automotive, for example, I mean, definitely the ultra-wide band adoption that we have been seeing is starting to pick up there and accelerate for things like presence detection and kick sensors. And other advanced radar features on the power side, certainly when it comes to AI and data center, we're seeing, you know, increasing requirements for improving the efficiency and the power supply.

Edward Francis Snyder: I mean, if you look in China, for automotive, for example, definitely, the ultra wideband adoption that we have been seeing is starting to pick up there and accelerate for, you know, things like presence detection and kick sensors and other advanced radar features. On the power side, certainly when it comes to AI and data centers, we're seeing increasing requirements for improving the efficiency in the power supply. So that's driving the adoption of silicon carbide. It's been a great trend for us.

Speaker Change: Yes, I wouldn't necessarily maybe focus on China, specifically I mean, when you look at the markets that we serve it's III.

Speaker Change: Pretty broad based across HPA and <unk> I mean, if you look in China.

Speaker Change: Our automotive for example, I mean definitely the ultra wideband adoption that we have been seeing is starting to pick up and accelerate.

Speaker Change: For things like presence detection and kicked sensors.

Speaker Change: And other advanced radar features on the power side certainly when it comes to AI and data center, we're seeing.

Speaker Change: Increasing requirements for improved efficiency and the power supply. So that's driving the adoption of silicon carbide, that's been a great trend for us.

David Fullwood: So that's driving the adoption of silicon carbide. That's been a great trend for us. You know, another, another new area of growth for us both inside the car and outside the car is by mentioned in circuit protection. So that's a really interesting opportunity for us because circuit protection today is pretty much exclusively done with electromechanical solutions. And so that's all, you know, new salmon, entering into our markets that will be a solid state and silicon carbide. So that's the leading technology for that, especially the silicon carbide that we have talked to there. So there's lots of great new growth trends, and those things have just accelerated really since we talked about in our investor day.

David Fullwood: You know, another new area of growth for us, both inside the car and outside the car, as Bob mentioned, is circuit protection. So that's a really interesting opportunity for us, because circuit protection today is pretty much exclusively done with electromechanical solutions. And so that's all, you know, new SAMs entering our markets that will be solid state and silicon carbides to lead. http://TheBusinessProfessor.com So there's lots of there are great new growth trends and and those things have just accelerated really since we talked about America.

Speaker Change: Another another new.

Speaker Change: Area for our growth for us both inside the car and outside of the car as Bob mentioned in circuit protection. So.

Bob: That's a really interesting opportunity for us because circuit protection today pretty much exclusively done with electromechanical solutions and so that's all.

Speaker Change: <unk> entering into our markets that will be solid state and silicon carbide, leading technology for that especially as you're looking at that we have to offer that same philosophy theres, great new growth trends and those things have just accelerated really since we talked about at our Investor day.

David Fullwood: The thing I'd like to add to that, Dave, is the V2X that I talked about in my prepared remarks in China is actually China leading all the regions as far as adopting V2X, and that's pretty exciting for us. Again, that's going to be ramping up next calendar year, but it's good to see that there. And then, you know, we'll expect it, obviously, to flow into Europe and then, obviously

Bob Rugworth: I'd like to add to that, Dave, is the VDAX that I talked about in my prepare remarks. In China, it is actually China's leading all the regions as far as adopting VDAX. And that's pretty exciting for us. Again, that's going to be ramping next calendar year, but it's good to see that there. And then, you know, we'll expect it to obviously flow into Europe and then obviously the US. Got it. Thanks, that's helpful.

I would like to add to that Dave is davita expert I talked about in my prepared remarks.

In China is actually Chinas, leading all the regions as far as adopting <unk> nuts.

Speaker Change: That's pretty exciting for US again, that's going to be ramping next calendar year, but it is good to see that there and then we will expect it to ultimately to flow into Europe, and then obviously the U S.

Speaker Change: Got it thanks that's helpful.

Unknown Executive: This concludes our question and answer session.

Operator: Got it. Thanks. This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.

Speaker Change: Okay.

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

Unknown Executive: I would like to turn the conference back over to management for any closing remarks. We want to thank everyone for joining us on tonight's call. We appreciate your interest. We look forward to speaking with many of you at upcoming investor events.

Unknown Executive: We want to thank everyone for joining us on tonight's call. We appreciate your interest. We look forward to speaking with many of you at upcoming investor events. Thanks again, and have a great evening.

Speaker Change: We want to thank everyone for joining us on tonight's call. We appreciate your interest we look forward to speaking with many of you at upcoming investor events.

Unknown Executive: Thanks again, and have a great evening.

Speaker Change: Thanks, again and have a great evening.

Unknown Executive: The conference is now concluded. Thank you for attending today's presentation.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Good day, and welcome to the Qorvo Inc First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode.

Speaker Change: Okay.

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

Unknown Executive: You may now disconnect.

Bob Rugworth: You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You You Thank you very much for your time, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, 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much, thank you very very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very much, thank you very Some of the investor feedback we received is that it would be helpful to discuss our business by end market.

Speaker Change: [music].

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touchtone phone. To withdraw your question, please press star, then 2.

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

Douglas DeLieto: Thanks very much. Hello everyone, and welcome to Qorvo's fiscal 2025 first quarter earnings call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statement contained in the earnings release published today, as well as the risk factors associated with our business and our annual report on Form 10-K filed with the SEC, because these risk factors may affect our operations and financial results.

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

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

Robert A. Bruggeworth: Thanks, Doug, and welcome, everyone, to our call. I want to begin by thanking everyone who attended our Investor Day, both in person and online. We appreciated the opportunity to share with you our strategic positioning and our enthusiasm for the future. The investor slides and a replay of the webcast are available on our IR website under Events and Presentations.

Robert A. Bruggeworth: Some of the investor feedback we've received is that it would be helpful to discuss our business by end market. We highlighted our core markets in our Investor Day presentation, and our formal remarks today will also highlight our opportunities and achievements by core market. Qorvo's six primary end markets are automotive, consumer, defense, and aerospace, industrial, and enterprise, infrastructure, and mobile. They are underpinned by global megatrends including electrification, connectivity, mobility, sustainability, datafication, and AI.

Robert A. Bruggeworth: These trends support new applications and new user experiences that are made accessible to end users by customers we serve and the products we enable. Our markets are characterized by multi-year upgrade cycles, including 5G advanced, non-terrestrial networks, Wi-Fi 6 and 7, DOCSIS 4.0, MATTER, Ultra Wideband, and others. They are also undergoing technology upgrades, such as AESA radars, Advanced Power Management, RF MEMS, and Highly Integrated System-Level Solutions.

Robert A. Bruggeworth: And they are seeing upgrades in the user experience, like indoor navigation and force sensing, and touch sensing. There are also continuous drivers that are common across markets. These include the continuously increasing requirements for bandwidth, speed, and latency, a sharp focus on power efficiency and power management, and the need for system-level solutions and greater functional density. Customers demand improvements in performance, whether it's measured in power out, current consumption, talk time, or battery life. They require higher levels of performance with greater efficiency and a reduced form factor to create the differentiation that drives their position in the markets they serve.

Speaker Change: Our key followed by zero after today's presentation, there will be an opportunity to ask questions to ask a question. You May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two please.

Speaker Change: Please note. This event is being recorded I would now like to turn the conference over to Douglas Toby, Though Vice President of Investor Relations. Please go ahead, thanks, very much Hello, everyone and welcome to Corvus fiscal 2025 first quarter earnings call.

Robert A. Bruggeworth: Qorvo is critical in enabling these capabilities. Now turning to quarterly highlights, in the automotive market, we were selected to supply V2X FEMS for a leading China-based automotive V2X reference chipset platform set to ramp at multiple automotive OEMs in calendar 25. To expand automotive engagements, we are leveraging our ultra-wideband portfolio across a range of applications, including secure access, digital key, kick sensors, child presence detection, and detection of intrusion. We're also expanding our opportunities in EVs to include solid-state circuit breakers. Given the smaller size, enhanced reliability, and better thermals of our silicon carbide solutions, we enable solid-state circuit breakers that can disconnect electrical overloads in case of failure to maintain safe and efficient power distribution.

Robert A. Bruggeworth: For consumer markets, we secured a new engagement to supply a switch mode DC to DC charger for a wearable accessory for an Android OEM. We continue to expand our power management portfolio, and we are engaged to supply our newest battery management solution for power tools, scooters, e-bikes, and other consumer products. We are also supporting a range of applications with our Matter and Ultra Wideband technologies, including door locks, smart lighting, and indoor navigation. We are combining MATTER with Ultra Wideband to support the emerging ALERO standard for controlling digital access to smart homes and offices.

Robert A. Bruggeworth: To support global broadband deployments, Qorvo's Wi-Fi solutions enable cellular, cable, and satellite backhaul applications and develop an emerging market. Of note, we recently suppressed 75 million Wi-Fi 6 SPAMs shipped into the Indian Wi-Fi market. We continue to expand our Wi-Fi portfolio, and we are seeing increasing customer interest in our 2, 5, and 6 GHz ball filters for Wi-Fi CPE applications. In other consumer applications, we are expanding our customer engagements with force sensing touch sensors, primarily for laptop trackpads, as well as other consumer applications.

Speaker Change: This call will include forward looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to review the safe Harbor statement contained in the earnings release published today as well as the risk factors associated with our business and our annual report on Form 10-K filed with the SEC because these risk.

Speaker Change: Factors may affect our operations and financial results.

Speaker Change: In today's release and on today's call, we provide both GAAP and non-GAAP financial results. We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain noncash expenses or other items that may obscure trends in our underlying performance.

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

Robert A. Bruggeworth: Turning to defense and aerospace, Qorvo secured design wins across segments, including AESA Radar, large defense programs, and SATCOM deployments, where Qorvo participates in both the Low Earth Orbit Satellite and the Ground-Based Consumer Terminal. In DNA markets, Qorvo is the beneficiary of underlying drivers, including the trend of one-to-many, the transition of mechanical systems to active electronic scanning systems, increasing system-level functionality, and During the quarter, we fully integrated the Inoki Wave team into Qorvo.

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

Robert A. Bruggeworth: Our added capabilities in silicon beam forming ICs and IF to RF conversion are complementary to our transmit and receive RF front ends, as well as our power management IC portfolio. We're developing more highly integrated placements that combine our capabilities to bring greater value to our customers. New product launches during the quarter included three new highly integrated RF multi-chip modules for X-Band, S-Band, and L-Band advanced radar applications. The new modules integrate filters, switches, and amplifiers to simplify design and enable the superior performance, low noise, reduced power consumption, and smaller form factor required for phased array and multifunction radar systems.

Bob: Thanks, Doug and welcome everyone to our call.

Bob: I want to begin by thanking everyone, who attended our Investor day, both in person and online we appreciated the opportunity to share with you our strategic positioning and our enthusiasm for the future the investor slides and a replay of the webcast are available on our IR website under events and presentations.

Bob: Some of the Investor feedback we've received is that it would be helpful to discuss our business by end market.

Bob Rugworth: We highlighted our end markets in our investor day presentation, and our formal remarks today will also highlight our opportunities and achievements by end market. Bigger trends including electrification, connectivity, mobility, sustainability, identification, and AI. These trends support new applications and news user experiences that are made accessible to end users by customers who serve and the products we enable. Our markets are characterized by multi-year upgrade cycles including 5G Advanced, non-terrestrial networks, Wi-Fi 6 and 7, boxes 4.0, Matter, ultra-wide-band and others. They are also undergoing technology upgrades such as AESA radars, advanced power management, RF MEMS, and highly integrated system level solutions.

Bob: We highlighted our end markets in our Investor day presentation in our formal remarks today will also highlight our opportunities and achievements by end market.

Robert A. Bruggeworth: For infrastructure markets, we launched a single-chip inverse cable equalizer that is programmable in the field and electronically simulates signal loss at various cable lengths. For operators, this eliminates the additional parts and tech time required to accommodate short runs during DOCSIS 4.0 field installation. Our single-chip solution also features a switched bypass mode that allows operators to utilize our solution in every line amplifier and field extender, regardless of distance. Furthermore, for Massive MIMO 5G base stations, we introduced a best-in-class transmit pre-driver.

Bob: Cordova six primary end markets are automotive consumer defense, and aerospace industrial and enterprise infrastructure and mobile.

Robert A. Bruggeworth: It is engineered specifically for 32-node Massive MIMO systems and is scalable up to 64 nodes. In the industrial and enterprise markets, we're seeing continued demand for new orders for AC to DC high-density server power supplies. During the quarter, we began sampling the industry's first 4 milliohm silicon carbide JFET. Its RDS on performance of 4 milliohms is best in class on resistance among 650 to 750 volt power devices. This is especially important for applications such as circuit protection that are migrating from traditional switch mode static switches that are on for longer durations. This is a significant milestone for solid-state circuit breakers, and it highlights the trend we are seeing from mechanical to semiconductor-based electrical systems for residential, commercial, and industrial applications.

They are underpinned by global Megatrends, including electrification connectivity mobility sustainability data vacation and AI.

Robert A. Bruggeworth: For Wi-Fi enterprise access points, we are engaged to supply Ultra Wideband to enable indoor navigation in office buildings, shopping malls, and factories. By adding Ultra Wideband to Wi-Fi access points, the access points become the anchor or reference point, enabling precision navigation for Ultra Wideband-enabled devices. As an added benefit, Ultra Wideband can reduce costs by identifying the optimal location for access point placement during Wi-Fi installation. Lastly, we're leveraging our force sensing touch sensor technology in new industrial markets, including handheld medical devices that measure oxygen levels.

Bob: These trends support new applications and new user experiences that are made accessible to end users by customers, we serve and the products we enable.

Robert A. Bruggeworth: Turning to mobile, which is primarily smartphones and tablets, our largest opportunity remains at our largest customer. We're investing in multiple multi-year programs to increase our content and continue to grow revenue with this customer. Our R&D investments for future programs include products we currently supply to this customer, as well as new products we are not currently supplying. Within the Android ecosystem, Qorvo remains the primary RF supplier.

Robert A. Bruggeworth: We collaborate with Android OEMs on their product roadmaps for multiple years, and we are positioned to drive growth as 4G devices move to 5G at NRR SAM. In calendar 24, we expect Android 5G unit volumes to grow greater than 10%. We're also positioned to grow with 5G advanced, which occurs with new releases of the 5G standard. Content drivers and 5G events include an additional transmit path, non-terrestrial network connectivity, and requirements for power class 2 amplifiers to increase output power, improve data throughput, and extend cell site coverage.

Bob: Our markets are characterized by multi year upgrade cycles, including <unk> advanced <unk>.

Bob: Non terrestrial networks Wi Fi six and seven DOCSIS four.

Bob: Matter ultra wideband and others.

Bob: They are also undergoing technology upgrades, such as aes or radars advair.

Bob: Advanced power management, RF, Mems and highly integrated system level solutions.

Bob Rugworth: And they are seeing upgrades in the user experience, like indoor navigation and force sensing touch sensors. There are also continuous drivers that are common across markets. These include the continuously increasing requirements for bandwidth, speed, and latency, a sharp focus on power efficiency and power management, and the need for system level solutions and greater functional density. Customers demand improvements in performance whether it's in measured in power out, current consume, talk time, or battery life. They require higher levels of performance with greater efficiency and a reduced form factor to create the differentiation that drives their position and the markets they serve.

Bob: And they are seeing upgrades and the user experience like indoor navigation and <unk> touch sensors.

Bob: There are also continuous drivers that are common across markets.

Robert A. Bruggeworth: During the quarter, we ran multiple new products leveraging our newest BHA and LRT SAW processes. For an Android OEM, we commend shipments of the most functionally dense mid-high band pad on the market. This new MHB pad integrates the diversity received content that was historically offered in a separate SOB-based module. It is a highly complex multi-chip module that features Qorvo's internal BHA, LRT saw, and gas HPT, as well as CMOS and silicon on insulator that we sourced from our foundry network.

Bob: These include the continuously increasing requirements for bandwidth.

Bob: And latency.

Bob: <unk> focus on power efficiency and power management, and the need for system level solutions and greater functional density.

Bob: Customers demand improvements in performance, whether it's in measured and powerful.

Bob: Current consume talk time or battery life.

Robert A. Bruggeworth: It improves efficiency and reduces power consumption while shrinking board space requirements by approximately 35%. Within mass market smartphones, we secured multiple design wins with our recently launched portfolio of low, mid, and high-end pads. Each LMH pad integrates the low-, mid-, and high-band main path content that previously required two placements.

Bob: We require higher levels of performance with greater efficiency and a reduced form factor to create the differentiation that drives their position in the markets. They serve.

Bob Rugworth: Corvo is critical in enabling these capabilities.

Bob: Corvo is critical in enabling these capabilities.

Bob Rugworth: Now turning to quarterly highlights. In the automotive market, we were selected to supply VDX FEMS for leading China-based automotive VDX reference chipset platform set to rent at multiple automotive OEMs in calendar 25. To expand automotive engagements, we are leveraging our ultra-wide-band portfolio across a range of applications including secure access, digital key, kick sensors, child present detection, and detection of intrusion. We are also expanding our opportunities in EVs to include solid state circuit breakers, given the smaller size and answer liability and better thermals of our silicon carbide solutions. We enable solid state circuit breakers that can disconnect electrical overloads in case of failure to maintain safe and efficient power distribution.

Speaker Change: Now turning to quarterly highlights in the automotive market, we were selected to supply <unk> for a leading China based automotive Vida ex referenced chipset platform set to ramp at multiple automotive Oems in calendar 'twenty five.

Speaker Change: To expand automotive engagements, we are leveraging our ultra wideband portfolio across a range of applications, including secure access digital key kick sensors child, president detection and detection of intrusion.

Speaker Change: We are also expanding our opportunities in Evs to include solid state circuit breakers, given the smaller size enhance reliability and better thermals of our silicon carbide solutions, we enable solid state circuit breakers that can disconnect electrical overloads in case of failure to maintain safe.

Speaker Change: And efficient power distribution.

Bob Rugworth: For consumer markets, we secured a new engagement to supply switch mode DC to DC charger for a wearable accessory for an Android OEM. We continue to expand our power management portfolio, and we are engaged to supply our newest battery management solution for power tools, scooters, e-bikes, and other consumer products. We are also supporting a range of applications with our matter and ultra-wide band technologies, including door locks, smart lighting, and indoor navigation. We are combining matter with ultra-wide band to support the emerging Alero standard for controlling digital access to smart homes and offices. We are also providing backup applications and develop and emerging markets.

Speaker Change: For consumer markets, we secured a new engagement to suppliers switch mode DC to DC charger for a wearable accessory for an Android OEM we.

Speaker Change: We continue to expand our power management portfolio and we are engaged to supply our newest battery management solution for power tools scooters E bikes and other consumer products.

Speaker Change: We are also supporting a range of applications with our matter and ultra wideband technologies, including <unk> smart lighting and indoor navigation.

Speaker Change: We're combining matter with ultra wideband to support the emerging Alero standard for controlling digital access to smart homes and offices.

Robert A. Bruggeworth: This saves approximately 40% in board space, simplifies design, and helps customers accelerate their time to market. In mobile Wi-Fi, MediaTek selected Qorvo as the exclusive supplier of Wi-Fi 7 FEMS for customers of their DX4 Wi-Fi chipset. MediaTek's DX4 chipset and Qorvo's Wi-Fi 7 FEMS are optimized to deliver superior performance for flagship and mass market smartphones.

Speaker Change: To support global broadband deployments Corvo, Wi Fi solutions enable cellular cable and satellite backhaul applications in developed and emerging markets.

Bob Rugworth: Of note, we recently suppressed 75 million Wi-Fi 6 stems shipped into the India Wi-Fi market. We continue to expand our Wi-Fi portfolio, and we are seeing increasing customer interest in our two, five, and six gigahertz ball filters for Wi-Fi CP applications. In other consumer applications, we are expanding our customer engagements with four sensing touch sensors, primarily for laptop track pads, as well as other consumer applications. Turning to defense and aerospace, we secure design wins across segments, including AESA radars, large defense programs, and fat-com deployments where Corvo participates in both the low-earth orbit satellite and the ground-based consumer terminal.

Speaker Change: Note, we recently surpassed 75 million Wi Fi six <unk> shift into the India Wi Fi market.

Robert A. Bruggeworth: We also expanded our ultra-wideband WINS in the Android ecosystem to include an additional handset customer. Motorola's Moto X50 Ultra, which launched in the June quarter, features Qorvo's Ultrawideband SoC. This is our first win in a mid-tier smartphone and is an early indicator of ultrawidebands proliferating across mass market smartphone portfolios. At a high level, the Qorvo team continues to deliver operational excellence. We are investing in core strengths to differentiate our products while executing on cost initiatives and productivity improvements to reduce our capital intensity to structurally enhance our gross margin. As we committed to during our Investor Day in June, we are migrating to larger wafer diameters. During the June quarter, we successfully completed our migration to 8-inch ball, and our ball lines are now exclusively 8-inch.

Speaker Change: We continue to expand our Wi Fi portfolio, and we are seeing increasing customer interest in our two five and six gigahertz ball filters for Wi Fi CPE applications.

Robert A. Bruggeworth: We are also committed to a model of long-term growth in each operating segment, with R&D investments focused on large opportunities. In ACG, our investments are focused on growing our largest customers. In HPA, our investments are focused on defense and aerospace, along with power management. In CSG, our investments are focused on automotive connectivity, Advanced Wi-Fi RF Solutions, and MATTER and Ultra Wideband SSCs.

Speaker Change: In other consumer applications, we are expanding our customer engagements with four sensing touch sensors, primarily for laptop track pads as well as other consumer applications.

Robert A. Bruggeworth: Qorvo's technologies are critical in solving our customers' most complex RF and power challenges related to efficiency, performance, and size, and we are confident in our long-term growth and diversification. And with that, I'll turn the call over to Grant. Thanks, Bob, and good afternoon, everyone. Revenue for the quarter was $887 million, representing a decrease of 6% sequentially and an increase of approximately 36% year over year.

Grant A. Brown: Non-GAAP gross margin of 40.9% in the June quarter came in at the high end of our guidance range of 40 to 41%, benefiting from product mix on higher revenue. Non-GAAP operating expenses in the quarter were $265 million, which included $4 million of spend associated with our digital transformation. As we progress through this multi-year effort, the spend will be included in the other operating expense line on our non-GAAP P&L, and we will provide expense guidance related to this initiative on a quarterly basis.

Speaker Change: Turning to defense and aerospace, we secured design wins across segments, including EISA radars.

Speaker Change: Large defense programs, and satcom deployments, where corvo participate in both the low Earth orbit satellite and the ground based consumer terminal.

Bob Rugworth: In DNA markets, Corvo is the beneficiary of underlying drivers, including the trend of one to many, the transition of mechanical systems to active electronic scanning systems, increasing system level functionality, and size constraints requiring advanced multi-chip packaging.

Speaker Change: And DNA markets Corvo is the beneficiary of underlying drivers, including the trend of one dementing the transition of mechanical systems to active electronics scanning systems, increasing system level functionality and size constraints, requiring advanced multi chip packaging.

Bob Rugworth: During the quarter, we fully integrated the Anoki Wave team in the Corvo. Our added capabilities in silicon beam-forming ICs and IF to RF conversion are complemented to our transmit and receive RF front-ends, as well as our power management IC portfolio. We are developing more highly integrated placements that combine our capabilities to bring greater value add to our customers. New product launches during the quarter included three new highly integrated RF multi-chip modules for X-band, X-band, and L-band advanced radar applications. The new modules integrate filters, switches, and amplifiers to simplify design and enable the superior performance, low noise, reduced power consumption, and smaller form factor required for phased array and multi-function radar systems. For infrastructure markets, we launched a single-chip inverse cable equalizer that is programmable in the field and electronically simulates signal loss at various cable lengths.

Speaker Change: During the quarter, we fully integrated the <unk> team and the Corvo.

Speaker Change: Our added capabilities in silicon beam, forming ic's and Ias to RF conversion are complementary to our transmit and receive RF front ends as well as our power management IC portfolio.

Speaker Change: We're developing more highly integrated placements that combine our capabilities to bring greater value add to our customers.

Speaker Change: New product launches during the quarter included three new highly integrated RF multi chip modules for X span SPN and L band advanced radar applications.

Speaker Change: The new modules integrate filters switches and amplifiers to simplify design and enable the superior performance low noise reduce power consumption and smaller form factor required for phased array and multi function radar systems.

Speaker Change: Our infrastructure markets, we launched a single chip inverse cable equalizer that his program will in the field and electronically stimulates signal loss at various cable links.

Bob Rugworth: For operators, this eliminates the additional parts and tech time required to accommodate short runs during boxes 4.0 field installations. Our single chip solution also features a switched bypass mode that allows operators to utilize our solution in every line amplifier and field extender, regardless of distance. For Massive MIMO 5G base stations, we introduced the Best in Class Transmit Predriver. It is engineered specifically for 32-node massive MIMO systems and is scalable up to 64 nodes. For industrial and enterprise markets, we are seeing continued demand for new orders for AC to DC, high density server power supplies. During the quarter, we began sampling the industry's first 4 million silicon carbide J-fed.

Speaker Change: For operators this eliminates the additional parts and tech time required to accommodate short runs during DOCSIS four <unk> oilfield installations.

Speaker Change: Our single Chip solution also features a switch to bypass mode that allows operators to utilize our solution and every line amplifier and field extender regardless of distance.

Speaker Change: For massive Mimo base stations, we introduced a best in class transmit pretty driver. It is engineered specifically for 32 narrowed massive mimo systems and is scalable up to 64 nodes.

Speaker Change: For industrial and enterprise markets. We are seeing continued demand for new orders for AC to DC high density server power supplies.

Speaker Change: During the quarter, we began sampling the industry's first four <unk> silicon carbide jfet, it's Rds on performance of 4 million homes as best in class on resistance among $650 to 750 volt power devices. This.

Bob Rugworth: It's RDS on performance of 4 million as Best in Class on resistance among 650 to 750 gold power devices. This is especially important for applications such as circuit protection that are migrating from traditional switch mode static switches that are on for longer durations. This is a significant milestone for solid state circuit breakers and as highlights the trend we are seeing from a mechanical to semi semiconductor base electrical systems for residential, commercial and industrial applications. For Wi-Fi enterprise access points, we are engaged to supply ultra-wide band to enable indoor navigation and office buildings, shopping malls, and factories.

Speaker Change: This is especially important for applications such as circuit protection that are migrating from traditional switch mode static switches that are on for longer durations.

Speaker Change: This is a significant milestone for solid state circuit breakers and his highlights the trend we are seeing from mechanical to semiconductor base electrical systems for residential commercial and industrial applications.

Speaker Change: For Wi Fi enterprise access points, we are engaged to supply ultra wideband to enable indoor navigation and office buildings shopping malls and factories.

Bob Rugworth: By adding ultra-wide band to Wi-Fi access points, the access points become the anchor or reference point, enabling precision navigation for ultra-wide band enabled devices. As an added benefit, ultra-wide band can reduce costs by identifying the optimal location for access point placement during Wi-Fi installation. Lastly, we are leveraging our 4 sensing touch sensor technology in new industrial markets, including handheld medical devices that measure oxygen levels.

Speaker Change: Adding ultra wideband <unk> Wi Fi access points, the access points become the anchor our reference point, enabling precision navigation for ultra wideband enabled devices.

Speaker Change: As an added benefit ultra wideband can reduce costs by identifying the optimal location for access point placement during Wi Fi installation.

Speaker Change: Lastly, we are leveraging our force sensing touch sensor technology, and new industrial markets, including handheld medical devices that measure oxygen levels.

Bob Rugworth: Turning to mobile, which is primarily smartphones and tablets, our largest opportunity remains at our largest customer. We are investing in multiple multi-year programs to increase our content and continue to grow revenue with this customer. Our R&D investments for future programs include products we currently supply to this customer, as well as new products we are not currently supplying. Within the Android ecosystem, the primary RF supplier. We collaborate with Android OEMs on their product road maps over multiple years, and we are positioned to drive growth as 4G devices move to 5G at NRR Sam. In calendar 24, we expect Android 5G unit volumes to grow greater than 10%.

Turning to mobile, which is primarily smartphones and tablets, our largest opportunity remains at our largest customer.

Speaker Change: We are investing in multiple multi year programs to increase our content and continue to grow revenue with this customer.

Speaker Change: Our R&D investments for future programs include products. We currently supply to this customer as well as new products. We are not currently supply.

Speaker Change: Within the Android ecosystem corridor remains the primary RF supplier.

Speaker Change: We collaborate with Android Oems on their product roadmaps over multiple years, and we are positioned to drive growth as <unk> devices move to <unk> and enter our Sam and.

Speaker Change: In calendar 'twenty, four we expect to Android five <unk> unit volumes to grow greater than 10%.

Bob Rugworth: We are also positioned to grow with 5G events, which occurs with new releases of the 5G standard. Content drivers in 5G events include an additional transmit path, non-terrestrial network connectivity, and requirements for power class to amplifiers to increase output power, improve data throughput, and extend cell site coverage. During the quarter, we rent multiple new products leveraging our newest bought and LRT saw processes. For an Android OEM, we commend shipments of the most functionally dense mid-highband pad on the market. This new MHB pad integrates the diversity received content that was historically offered in a separate saw-based module.

Speaker Change: We're also positioned to grow with <unk> advanced which occurs with new releases of the <unk> standard.

Speaker Change: Content drivers and <unk> advance include an additional transmit path.

Speaker Change: Non terrestrial network connectivity and requirements for power class II amplifiers to increase output power improved data throughput and extend sell side coverage.

Speaker Change: During the quarter, we ramp multiple new products, leveraging our newest ball and LRT saw processes.

Speaker Change: For an Android OEM, we commenced shipments of the most functionally dense mid high band pad on the market.

Speaker Change: This new MH B pad integrates the diversity receive content that was historically offered in a separate solid based module.

Bob Rugworth: It is a highly complex multi-chip module that features Corbos internal, Va, LRT saw, and gas HBT, as well as CMOS and silicon on insulator that we source from our foundry network. It improves efficiency and reduces power consumption while shrinking board space requirements by approximately 35%. Within mass markets, smartphones, we secured multiple design wins with our recently launched portfolio of low, mid, high-band pad. Each LMH pad integrates the low, mid, and high-band main pad content that previously required two placements. This saves approximately 40% in board space, simplifies design, and helps customers accelerate their time to market.

Speaker Change: It is a highly complex multi chip module that features kormos internal bar LRT soar and gas HPT.

Speaker Change: As well as Cmos and silicon on insulator that we source from our foundry network.

Speaker Change: It improves efficiency and reduces power consumption, while shrinking board space requirements by approximately 35%.

Speaker Change: With a mass market smartphones, we secured multiple design wins with our recently launched portfolio of low mid high band pad.

Speaker Change: Each <unk> pad integrates the low mid and high band Manpack content that previously required two placements. This saves approximately 40% and board space simplifies design and helps customers accelerate their time to market.

Bob Rugworth: In mobile Wi-Fi, MediaTek selected Corbos as the exclusive supplier of Wi-Fi 7 FEMS for customers of their DX4 Wi-Fi chipset. MediaTek's DX4 chipset and Corbos Wi-Fi 7 FEMS are optimized to deliver superior performance for flagship and mass markets smartphones. We also expanded our ultra-wide-band wins in the Android ecosystem to include an additional handset customer. Motorola's Moto X50 Ultra, which launched in the June quarter, features Corbos ultra-wide-band SOC. This is our first win in a mid-tier smartphone and is an early indicator of ultra-wide-band's proliferating across mass markets smartphone portfolios.

Speaker Change: In mobile Wi Fi Mediatek selected <unk> as the exclusive supplier of Wi Fi <unk> for customers of their Dx for Wi Fi chipset.

Speaker Change: Media tax Dx floor chipset, and Corvo Wi Fi seven firms are optimized to deliver superior performance for flagship and mass market smartphones.

Speaker Change: We also expanded our ultra wideband wins in the Android ecosystem to include an additional handset customer.

Speaker Change: Motorola's Moto X 50, ultra which launched in the June quarter features core Roes Ultra Wideband Soc.

Speaker Change: This is our first win in a mid tier smartphone and is an early indicator of ultra wideband proliferating across mass market smartphone portfolios.

Bob Rugworth: At a high level, the Corbos team continues to deliver operational excellence. We are investing in core strengths to differentiate our products while executing on cost initiatives and productivity improvements to reduce our capital intensity to structurally enhance our growth margin. As we committed to during our Investor Day in June, we are migrating to larger wafer diameters. During the June quarter, we successfully completed our migration to 8-inch, and our ball lines are now exclusively 8-inch. We also committed to a model long-term growth in each operating segment, with our indie investments focused on large opportunities. In ACG, our investments are focused on growing in our largest customer.

Speaker Change: At a high level the corvo team continues to deliver operational excellence.

Speaker Change: We are investing in core strengths to differentiate our products, while executing on cost initiatives and productivity improvements to reduce our capital intensity to structurally enhance our gross margin.

Speaker Change: As we committed to during our Investor day in June we are migrating to a larger wafer diameters. During the June quarter, we successfully completed our migration to eight inch ball and our ball lines are now exclusively eight inch.

Speaker Change: We're also committed to a model of long term growth in each operating segment with R&D R&D investments focused on large opportunities in.

Speaker Change: In ACG, our investments are focused on growing in our largest customer in.

Bob Rugworth: In HPA, our investments are focused on defense and aerospace, along with power management. In CST, our investments are focused on automotive connectivity, advanced Wi-Fi RF solutions, and Matter and ultra-wide-band SoC. Corbos technologies are critical in solving our customers' most complex RF and power challenges related to efficiency, performance, and size, and we are confident in our long-term growth and diversification.

Speaker Change: In HPA, our investments are focused on defense and aerospace along with power management.

Speaker Change: And PST, our investments are focused on automotive connectivity.

Speaker Change: Advanced Wi Fi RF solutions, and matter and ultra wideband <unk>.

Speaker Change: Carbos technologies are critical in solving our customers' most complex RF and power challenges related to efficiency performance and size and we are confident in our long term growth and diversification.

Grant Brown: And with that, I'll turn it into a good afternoon, everyone. Revenue for the quarter was $887 million, representing a decrease of 6% sequentially, and an increase of approximately 36% year-over-year. Non-Gap growth margin of 40.9% in the June quarter came in at the high end of our guidance range of 40 to 41%, benefiting from product mix on higher revenue. Non-GAF operating expenses in the quarter were $265 million, which included $4 million of spend associated with our digital transformation. As we progress through this multi-year effort, the spend will be included in the other operating expense line on our non-GAF P&L, and we will provide expense guidance related to this initiative on a quarterly basis.

Grant A. Brown: That I will turn the call over to grant.

Grant A. Brown: Thanks, Bob and good afternoon, everyone revenue for the quarter was $887 million representing.

Grant A. Brown: A decrease of 6% sequentially and an increase of approximately 36% year over year.

Grant A. Brown: Non-GAAP diluted EPS was 87 cents, which was also above the high end of our guidance range due to higher revenue and gross margin offset by slightly higher operating expense. On the balance sheet, as of quarter end, we had $1.1 billion of cash in equivalence and approximately $1.5 billion of long-term debt outstanding.

Grant A. Brown: non-GAAP gross margin of 49% in the June quarter came in at the high end of our guidance range of 40% to 41% benefiting from product mix on higher revenue.

Grant A. Brown: non-GAAP operating expenses in the quarter were $265 million, which included $4 million of spend associated with our digital transformation as we progressed through this multi year effort to spend it will be included in the other operating expense line on our non-GAAP P&L and we will provide expense guidance really.

Grant A. Brown: To this initiative on a quarterly basis.

Grant Brown: Non-GAF diluted EPS was 87 cents, which was also above the high end of our guidance range due to higher revenue and gross margin, offset by slightly higher operating expense. On the balance sheet, as of quarter end, we had $1.1 billion of cash and equivalents and approximately $1.5 million of long-term debt outstanding. During the quarter, we retired $27 million of our 2024 notes and have approximately $412 million remaining. These notes are classified as current, and we'll mature in mid-December. Subject to changes in the interest rate environment and other factors, we currently expect to retire these short-term notes later this year.

Grant A. Brown: non-GAAP diluted EPS was <unk> 87.

Grant A. Brown: Which was also above the high end of our guidance range due to higher revenue and gross margin offset by slightly higher operating expense.

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

Grant A. Brown: During the quarter, we retired $27 million of our 2024 notes and have approximately $412 million remaining. These notes are classified as current and will mature in mid-December. Subject to changes in the interest rate environment and other factors, we currently expect to retire these short-term notes later this year. We ended the quarter with a net inventory balance of $727 million, representing a sequential increase of $16 million, composed primarily of WIP and raw materials, as we support the seasonal ramp at our largest customers. Turning to the cash flow statement, in fiscal Q1, we generated operating cash flow of $81 million and capital expenditures of $38 million, leading to free cash flow of $43 million.

Grant A. Brown: During the quarter, we retired $27 million of our 2024 notes and have approximately $412 million remaining.

Grant A. Brown: These notes are classified as current and will mature in mid December subject to changes in the interest rate environment and other factors. We currently expect to retire. These short term notes later this year.

Grant Brown: We ended the quarter with a net inventory balance of $727 million, representing a sequential increase of $16 million, composed primarily of width and raw material as we support the seasonal ramp at our largest customer. Turning to the cash flow statement, in fiscal Q1, we generated operating cash flow of $81 million and capital expenditures of $38 million, leading to free cash flow of $43 million. As a reminder, our CAPEX spend will vary quarter to quarter and reflects the timing of cash disbursements for capital purchases. Consequently, CAPEX as a percentage of sales in any given quarter may be above or below our annual target of approximately 5% of sales.

Grant A. Brown: We ended the quarter with a net inventory balance of $727 million representing.

Grant A. Brown: A sequential increase of $16 million composed primarily of width and raw material as we support the seasonal ramp at our largest customer.

Grant A. Brown: Turning to the cash flow statement in fiscal Q1, we generated operating cash flow of $81 million and capital expenditures of $38 million.

Grant A. Brown: Leading to free cash flow of $43 million as a reminder.

Grant A. Brown: As a reminder, our CapEx spend will vary quarter to quarter and reflect the timing of cash disbursements for capital purchases. Consequently, CapEx as a percentage of sales in any given quarter may be above or below our annual target of approximately 5% of sales. We repurchased $125 million of stock at $101 per share in the quarter.

Grant A. Brown: Under our Capex spend will vary quarter to quarter and reflects the timing of cash disbursements for capital purchase Consequently, capex as a percentage of sales in any given quarter may be above or below our annual target of approximately 5% of sales.

Grant Brown: We repurchased $125 million of stock at $101 per share in the quarter. The rate and pace of our share repurchase considers several key factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations. This approach ensures that our capital allocation strategy balances future growth with return of capital and aligns our underlying goal of delivering long-term shareholder value.

Grant A. Brown: We repurchased $125 million of stock at $101 per share in the quarter the rate and pace of our share repurchase considers several key factors, including our long term financial outlook free cash flow debt maturities alternative uses of cash and other relevant strategic.

Grant A. Brown: The rate and pace of our share repurchase considers several key factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations. This approach ensures that our capital allocation strategy balances future growth with return of capital and aligns our underlying goal of delivering long-term shareholder value. Turning to our current quarter outlook, we expect revenue of approximately $1,025,000,000, plus or minus $25 million, non-GAAP gross margin between 46 and 47 percent, and non-GAAP diluted EPS between $1.75 and $1.95.

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

Grant Brown: Turning to our current quarter outlook, we expect revenue of approximately $1 billion, $25 million plus or minus $25 million. Non-GAAP gross margin between 46 and 47% and non-GAAP diluted EPS between $1.75 and $1.95. As communicated at our Investor Day in June, gross margin is expected to improve as we execute on key objectives. Progress will be driven by business and product mix, internal factory utilization, and productivity initiatives. Volume of production outsourced to external partners and other factors. Throughout the fiscal year, gross margin will vary on a quarterly basis due to these factors. Given anticipated product mix and production schedules, we currently believe fiscal Q1 will mark the low point of gross margin in fiscal 25.

Grant A. Brown: Turning to our current quarter outlook, we expect revenue of approximately $1 billion $25 million plus or.

Grant A. Brown: Minus $25 million non.

Grant A. Brown: non-GAAP gross margin between 46%, 47% and non-GAAP diluted EPS between $1 75, and $1 95.

Grant A. Brown: As communicated at our investor day in June, gross margin is expected to improve as we execute on key objectives. Progress will be driven by business and product mix, internal factory utilization, and productivity initiatives, volume of production outsourced to external partners, and other factors. Throughout the fiscal year, gross margin will fluctuate on a quarterly basis due to these factors.

Grant A. Brown: As communicated at our Investor Day in June gross margin is expected to improve as we execute on key objectives progress will be driven by business and product mix internal factory utilization and productivity initiatives.

Grant A. Brown: <unk> of production outsourced to external partners and other factors.

Grant A. Brown: Throughout the fiscal year gross margin will vary on a quarterly basis due to these factors.

Grant A. Brown: Given anticipated product mix and production schedules, we currently believe Fiscal Q1 will mark the low point of gross margin for Fiscal 25. We project non-GAAP operating expenses in the September quarter will be approximately $275 million, with variability related to the timing of product development, spend, and other factors. The sequential increase is comprised primarily of other operating expenses driven by our digital transformation, which is expected to be approximately $10 million this quarter.

Grant A. Brown: Given anticipated product mix and production schedules. We currently believe fiscal Q1 will mark the low point of gross margin in fiscal 'twenty five.

Grant Brown: We project non-GAAP operating expenses in the September quarter will be approximately $275 million, with variability related to the timing of product development spend and other factors. The sequential increase is comprised primarily of other operating expense driven by our digital transformation, which is expected to be approximately $10 million this quarter. During fiscal 25, we continue to expect approximately $40 million of expense related to this project, with quarterly variability related to the achievement of progress-based milestones. Below the operating income line, our non-GAAP expenses expected to be between $8 to $10 million, reflecting interest paid on our fixed-rate debt offset by interest income earned on our cash balances, effects gains or losses, along with other items. Presuming we retire our 2024 notes in mid-December, we expect non-operating expense to increase in the March quarter by $3 to $4 million over the current run rate.

Grant A. Brown: We project non-GAAP operating expenses in the September quarter will be approximately $275 million with variability related to the timing of product development spend and other factors.

Grant A. Brown: The sequential increase is comprised primarily of other operating expense driven by our digital transformation, which is expected to be approximately $10 million this quarter.

Grant A. Brown: During fiscal 25, we continue to expect approximately $40 million of expense related to this project with quarterly variability related to the achievement of progress-based milestones. Below the operating income line, our non-GAAP expense is expected to be between $8 to $10 million, reflecting interest paid on our fixed rate debt offset by interest income earned on our cash balances, FX gains or losses, along with other items.

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

Grant A. Brown: Below the operating income line, our non-GAAP expense is expected to be between $8 million to $10 million, reflecting interest paid on our fixed rate debt offset by interest income earned on our cash balances FX gains or losses, along with other items presuming we.

Grant A. Brown: Presuming we retire our 2024 notes in mid-December, we expect non-operating expense to increase in the March quarter by $3 to $4 million over the current run rate. This is due to the differential in the interest rate we pay on the 1.75% 2024 notes versus the interest rate that we currently earn on our cash balances of approximately $5,000. Our non-GAAP tax rate for fiscal 25 is expected to be within a range of 10 to 12 percent.

Grant A. Brown: We retire our 2024 notes in mid December we expect nonoperating expense to increase in the March quarter by $3 million to $4 million over the current run rate.

Grant Brown: This is due to the differential in the interest rate we pay on the 1.75% 2024 notes versus the interest rate that we currently earn on our cash balances of approximately 5%. Our non-GAAP tax rate for fiscal 25 is expected to be within a range of 10 to 12%. We project this will increase over time due to changes in tax legislation such as the global minimum tax and other factors.

Grant A. Brown: This is due to the differential in the interest rate we pay on the 175% 2024 notes.

Grant A. Brown: Versus the interest rate that we currently earned on our cash balances of approximately 5%.

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

Grant A. Brown: We project this will increase over time due to changes in tax legislation such as the global minimum tax and other factors. Looking at operations, the Qorvo team continues to execute exceptionally well. As Bob mentioned, we completed the transition of our BOD lines to exclusively 8-inch, and we are seamlessly running product through the Beijing and Dejou facilities now owned by Luxair.

Grant Brown: Looking at operations, the Corvo team continues to execute exceptionally well. As Bob mentioned, we completed the transition of our bond lines to exclusively 8-inch, and we are seamlessly running products through the Beijing and the Joe facilities now owned by LoveShare. We are leveraging internal factories and advanced packaging facilities that are critical differentiators for each of our operating segments, while outsourcing to our robust Foundry and OSAT partners, where we benefit from their scale and R&D investments. Our three operating segments serve a broad set of markets that are underpinned by multi-year growth drivers. We are critical to solving our customers' most complex challenges related to RF and power, and we are confident in our ability to deliver long-term revenue growth, increasing diversification, and improved profitability.

Bob: Looking at operations. The Corvo team continues to execute exceptionally well as Bob mentioned, we completed the transition of our bottom lines to exclusively eight inch and we are seamlessly running product through the Beijing into Joe facilities now owned by luck sure.

Grant A. Brown: We are leveraging internal factories and advanced packaging facilities that are critical differentiators for each of our operating segments while outsourcing to our robust Foundry and OSAP partners, where we benefit from their scale and R&D investments. Our three operating segments serve a broad set of markets that are underpinned by multi-year growth drivers. We are critical to solving our customers' most complex challenges related to RF and power, and we are confident in our ability to deliver long-term revenue growth, increasing diversification, and improved profitability.

Speaker Change: We are leveraging internal factories in advanced packaging facilities that are critical differentiators for each of our operating segments, while outsourcing to a robust foundry and <unk> SaaS partners, where we benefit from their scale and R&D investments.

Speaker Change: Our three operating segments serve a broad set of markets that are underpinned by multi year growth drivers.

Speaker Change: Critical to solving our customers' most complex challenges related to RF and power and we are confident in our ability to deliver long term revenue growth increasing diversification and improved profitability. At this time. Please open the line for questions. Thank you.

Grant A. Brown: At this time, please open the line for questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star and then 1 on a touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the. If at any time your question has been answered and you would like to withdraw your question, please press star and then two.

Unknown Executive: At this time, please open the line for questions. Thank you. We will now begin the question and the answer session. To ask a question, you may press star, then one on a touchdown phone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and would like to withdraw your question, please press star and then two. Also, please limit yourself to one question and one follow-up.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on a touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw. Your question. Please press Star and then to also please limit yourself to one.

Quinn Bolton: Our first question comes from Quinn Bolton with Needham & Company. Please go ahead. Hey guys, congratulations on the nice results and outlook. I just wanted to start with kind of a big picture question.

Operator: Also, please limit yourself to one question and one follow-up. Our first question comes from Quinn Bolton with Needham & Company. Please go ahead. Hey guys, congratulations on the nice results and outlook. I just wanted to start with kind of a big picture question.

Speaker Change: Question and one follow up our first question comes from Quinn Bolton with Needham and company. Please go ahead.

Nathaniel Quinn Bolton: Your largest customer, I think, got the market pretty excited about the possibility of AI smartphones. And I was just wondering if you've started to see any impact, any, any increase in demand driven by the AI smartphone trend, whether it's your largest customer within the Android channel, and then I've got a follow up for Grant. Hey, Quinn, thanks again for your comments.

Quinn Bolton: Hey, guys. Congratulations on the nice results and outlook I just wanted to start with kind of a big picture question. Your largest customer I think <unk> got the market pretty excited about the possibility of AI smartphones and just wondering.

Bob Rugworth: Your largest customer, I think, got the market pretty excited about the possibility of AI smartphones and just wondering if you've started to see any impact, any increase in demand driven by the AI smartphone trend, whether it's your largest customer or within the Android channel and then I've got a follow-up program. Thanks again for your comments. And as far as AI goes, I think we're taking more of a conservative approach. I mean, clearly we saw that and what Samsung released in the S24. And just to remind the group, we've got excellent dollar content in that. And you know, they had a pretty nice rant.

Speaker Change: If you've started to see any impact any any increase in demand driven by the AI smartphone trend, whether it's your largest customer within the Android channel and then I've got a follow up for grant.

Robert A. Bruggeworth: And as far as AI goes, I think we're taking more of a conservative approach. I mean, clearly, we saw that in what Samsung released with the S24. And just to remind the group, we've got excellent dollar content in that. And, you know, they had a pretty nice ramp. You know, it wasn't tremendous above what expectations were, but they did a good job this year with the S24. Whether it was due to AI or not, I'm not clearly sure.

Speaker Change: Great. Thanks, Thanks again for your comments as far as AI goes I think we're taking more of a conservative approach I mean, clearly we saw that in what Samsung released in the <unk> 24, and just to remind the group. We've got excellent dollar content in that and they had a pretty nice ramp it wasn't tremendous above what expectations were but they did a good job this year.

Bob Rugworth: You know, it wasn't tremendous above what expectations were, but they did a good job this year with the S24 when it was due to AI or not, not clearly sure. And as far as our largest customer goes, since they haven't released their next generation. We're not going to comment, but I think as an industry, it would be wonderful if that AI came out. It was very useful for users, and it reduced the replacement cycle time so that we would see an uplift.

Robert A. Bruggeworth: And as far as our largest customer goes, since they haven't released their next-generation phones, we're not going to comment. But I think as an industry, it would be wonderful if that AI came out, it was very useful for users, and it reduced the replacement cycle time so that we would see an uplift. That would be fantastic.

Speaker Change: <unk> 24, when it was due to AI or not not clearly sure and as far as our largest customer goes since they haven't released their next generation phones, we're not going to comment, but I think as an industry that would be wonderful if that AI came out it was very useful for users and it reduced the replacement cycle time, so that we would see an uplift that.

Unknown Executive: That would be fantastic, but that's not what we're modeling at this time. Got it. Thank you.

Speaker Change: It would be fantastic, but that's not what we're modeling at this time.

Robert A. Bruggeworth: But that's not what we're modeling at this time. Thank you. And then, for Grant, just wondering if you could give us an update on your thoughts sort of as you move into the back half of the calendar year, thoughts on utilization rates, and any update on the flush of the high-cost Android inventories that are now mostly out of the model as we move into the September quarter. Thank you.

Grant Brown: And then for Grinch, just wondering if you could give us an update on your thoughts, sort of as you move into the back after the calendar year, thoughts on utilization rates and any update on the flush of the high cost Android inventories that now mostly out of the model as you move into the September quarter. Thank you. Thanks. In the September guide, we expect a substantial sequential increase in gross margin. And that's that's primarily related to mix, you know, the September quarter and to lesser degree December quarter will benefit from higher mix of customized solutions for flagship tier phones.

Speaker Change: Got it. Thank you and then for Greg just wondering if you could give us an update on your thoughts sort of.

Greg: As you move into the back half of the calendar year thoughts on utilization rates.

Greg: And any update on the flush of the high cost Android inventory is that now mostly out of the model as we move into the September quarter. Thank you.

Grant A. Brown: In the September guide, we expect a substantial sequential increase in gross margin, and that's primarily related to mix. The September quarter, and to a lesser degree, the December quarter will benefit from a higher mix of customized solutions for flagship tier phones. That product mix generally includes a higher amount of externally sourced silicon and SOI content, and it's not impacted by internal utilization levels.

Greg: Thanks Lynn.

Speaker Change: In the September guide, we expect a substantial sequential increase in gross margin and thats primarily related to mix.

Speaker Change: September quarter and to a lesser degree December quarter will benefit from higher mix of customized solutions for flagship tier phones.

Grant A. Brown: So that's one dynamic that's occurring. And that compares to our prior two quarters, where revenue was comprised of a larger mix of high-cost, standard products that were burdened by prior periods of underutilization. In the quarter just concluded, we saw approximately 200 basis points of headwind associated with underutilization.

Grant Brown: That product mix generally includes a higher amount of externally sourced silicon and SOI content. It's not impacted by internal utilization level. So that's one dynamic that's apparent. And that compares to our prior two quarters where revenue was comprised of a larger mix of high-cost standard products that were burdened by prior periods of underutilization. In the quarter just concluded, we saw approximately 200 basis points of headwind associated with under utilization, and in the quarter, the September quarter, we should see it falling to around or slightly less than 100 basis points and then negligible for the back half of the year.

Speaker Change: That product mix generally includes a higher amount of externally sourced silicon and soi content, it's not impacted by internal utilization levels. So that's one dynamic that's occurring.

Speaker Change: That compares to our prior two quarters, where revenue was comprised of a larger mix of high cost standard products that were burdened by prior periods of under utilization in the quarter.

Speaker Change: Just concluded we saw approximately 200 basis points of headwind associated with under utilization in the quarter. The September quarter, we should see.

Speaker Change: Falling to around or slightly less than 100 basis points and then negligible.

Half of.

Unknown Executive: Perfect. Thank you.

Speaker Change: Of the year.

Speaker Change: Perfect. Thank you.

Tim Arcuri: The next question comes from Tim, our carry with UBS. Please go ahead. Hi, this is a monon for Tim. I just wanted to get some feel for your China mobile market; you know, sell-through data has been getting a little bit better recently. But it's trying to get sense for what you might be seeing there and how that might be progressing as we move forward throughout the calendar year.

Operator: And in the quarter, the September quarter, we should see it falling to around or slightly less than 100 basis points and then negligible for the back half of the year. Perfect. Thank you. The next question comes from Tim Arcuri with UBS. Please go ahead.

Speaker Change: Okay.

Speaker Change: The next question comes from Tim.

Speaker Change: Our carry with UBS. Please go ahead.

David Fullwood: Hi, this is Aman on for Tim. I just wanted to get a sense for your China mobile market, you know, sell through data. Getting a little bit better recently, but trying to get a sense for what you might be seeing there and how that might be progressing as we move forward throughout the calendar year. Hi, Aman. This is Dave.

Aman: Hi, This is a man on for Tim I, just wanted to get.

Speaker Change: Some feel for your China mobile market sell through data has been getting a little bit better recently.

Speaker Change: Trying to get a sense for what you might be seeing there and how could that.

That might be progressing as we move forward throughout the calendar year.

David Fullwood: Hi, I'm on this is Dave. Yeah, I think it's we're seeing the same day of your CN is a little bit better year over year. I mean right now based on the numbers we're tracking. We expected to be up in a low single-digit percent, kind of similar to the overall smartphone market, and we're calling that. So the 618 holiday was a little better year over year, but overall if you look at the cumulative smartphone sale today, it's pretty flat to up slightly from what we see. Thank you.

David Fullwood: Yeah, I think we're seeing the same data here, seeing it's a little bit better year over year. I mean, right now, based on the numbers we're tracking, we expect it to be up in the low single-digit percent, kind of similar to the overall smartphone market. I know we're calling that. So the 6-18 holiday was a little better year over year.

Hi, Emlen this is Dave.

Emlen: Yes, I think we're seeing the same data you're seeing is a little bit better year over year, I mean, right now based on the numbers. We're tracking we expect it to be up low single digit percent kind of similar to the overall smartphone market, we're calling that.

Emlen: 618 holiday with a little better year over year, but overall, if you look at the cumulative smartphone sales to date.

It's pretty flat to up slightly from what we see.

Speaker Change: Thank you.

Christopher Rolland: And the next question comes from Christopher Roland with Susquehanna. Please go ahead. Hey guys, thanks for the question. I guess maybe getting back to the September quarter. Just a question I keep getting asked from investors is around revenue still being down year over year. And I think the assumption is you have content growth at your largest customer. And perhaps we have an AI refresh cycle. I know you're conservative there. I appreciate that I conservative ism. But still, why not growth or at least flat year over year, particularly in Mobile. Thank you.

David Fullwood: But overall, if you look at the cumulative smartphone sales to date, it's pretty flat to slightly up from what we see. Thank you. And the next question comes from Christopher Rolland with Susquehanna. Please go ahead.

Speaker Change: And the next question comes from Christopher Roland with Susquehanna. Please go ahead.

Christopher Adam Jackson Rolland: Hey guys, thanks for the question. I guess, yeah, maybe getting back to the September quarter, just a question I keep getting asked from investors is around revenue still being down year over year.

Christopher Adam Jackson Rolland: Hey, guys. Thanks for the question.

Christopher Adam Jackson Rolland: I guess, yes.

Speaker Change: Maybe getting back to.

Speaker Change: The September quarter, just a question I keep getting asked from investors.

Speaker Change: Is around revenue still being down year over year.

Christopher Adam Jackson Rolland: And I think the assumption is that you have content growth at your largest customer, so perhaps we have an AI refresh cycle. I know you're conservative there.

Speaker Change: And I think the assumption is you have content growth at your largest customer so.

Speaker Change: And perhaps we have an AI refresh cycle I know youre conservative there I appreciate that conservatism.

Christopher Adam Jackson Rolland: I appreciate that conservatism. But still, why not growth or at least flat year over year? You know, particularly in mobile. Thanks for the question, Chris. At least in terms of the September guide, year over year, the slight decline is principally related to smartphone revenues.

Speaker Change: But still why not growth or at least flat year over year.

Grant Brown: Thanks for the question, Chris. At least in terms of the September guide year over a year, this like decline is principally related to smartphone revenues. We've talked in the past about significant gains in our largest customers. And maybe Dave can follow up from me and comment there. But those assumptions in the guide contemplate total smartphone market, skews, unit volumes, timing, mix, and all of that may prove conservative or vice versa. But we'll have to see how things play out. But overall, you'll be very, very, very comfortable with our assumptions. Dave, I don't want to add on the.

Speaker Change #101: Particularly in mobile thank you.

Speaker Change #100: Thanks for the question Chris.

Dave: At least in terms of the September guide year over year. This slight decline is principally related to smartphone revenues, we've talked in the past about significant gains at our largest customers and maybe Dave can follow up for me and comment there, but those assumptions in.

Grant A. Brown: We've talked in the past about significant gains in our largest customers, and maybe Dave can follow up for me and comment there. But those assumptions in the guide contemplate total smartphone market SKUs, unit volumes, timing, mix, and all of that may prove conservative or vice versa. But we'll have to see how things play out.

Dave: In the guide contemplate total smartphone market.

Dave: Skus unit volumes timing mix and all of that May prove conservative or vice versa, but we'll have to see how things play out, but overall feel very very very comfortable with with our assumptions, Dave I know if you want to add on the consumer and.

David Fullwood: But overall, I feel very, very, very comfortable with our assumptions. Dave, I don't know if you want to add anything to the content. Sure. And you guys know we've talked about some of these marquee models that ramped up in the first half of our content there. So, you know, the S24, we had over five dollars of content, and we're on the other side of that ramp now. The Pixel, we had about 15 dollars of content, so we're also on the other side of that ramp as well. So we had some strong ramps in the first half that we're now on the other side of.

David Fullwood: And you guys know, we've talked about some of these more key models that ramp in the first half in our content there. So, you know, the S24, we had over $5 a content. And we're on the other side of that ramp now. The pixel, we had about $15 a content. So we're also on the other side of that ramp as well. So we had some strong ramps in the first half that we're now on the other side up. And then Bob mentioned our low, mid-high, and some design ones we have there. We actually have purchase orders on the folks now.

Dave: And you guys know and we've talked about some of these.

Dave: Marquee models that ramped in the first half and our content there so.

Dave: The F 'twenty four we added over $5 of content.

Dave: On the other side of that ramp now.

Dave: The pixel, we had about $15 of content and we're also on the other side of that ramp as well.

Dave: So we had some strong ramps in the first half that were now on the other side and then Bob mentioned, our low mid high and some design wins, we have in there and we actually have purchase orders on the books now and now just starting to ramp at the very end of this quarter or so.

David Fullwood: And then Bob mentioned our low, mid, and high price ranges and some design wins we have there. We actually have purchase orders on the books now, and that'll just start to ramp up at the very end of this quarter. So, you know, that'll ramp up as we go through the balance of this year and into next year. It's kind of a timing situation happening there in the Android ecosystem. And so that's probably a little bit of a box.

David Fullwood: And that'll just start to ramp at the very end of this quarter. So, you know, that'll ramp up as we go through the balance of this year and into next year. So, it's kind of a timing situation happening there in the Android ecosystem. And so that's probably a little bit of a pocket there that you're seeing as a member.

Bob: That will ramp up as we go through the balance of this year and into next year. So we're kind of a timing.

Bob: Situation happening there in the Android ecosystem.

Speaker Change #102: And so thats, probably a little bit of a pocket there that youre seeing in September.

Robert A. Bruggeworth: That's very helpful, thank you. Just a quick follow-up, Bob, sometimes you give us some new products to look out for, like that low-mid-high you've talked about before. Is there something else on the horizon, some new cool products that might be needle-moving for you that we should be on the lookout for? Yeah, the low-mid-high is actually an interesting one because we're actually tiering it for the different product segments in the Android ecosystem.

Bob Rugworth: That's that's very helpful. Thank you. Just a quick follow up. Bob, sometimes you give us some new products to look out for, like that low mid-high you've talked about that before.

Speaker Change #103: That's very helpful. Thank you.

Speaker Change #104: A quick follow up Bob.

Speaker Change #105: Sometimes you give us some new products to look out for like that low mid high you've talked about that before is there something else on the horizon, some new cool products.

Bob Rugworth: Is there something else on the horizon, some new cool products that might be needle-moving for you that we should be on the lookout for? Yeah, the low, mid, high is actually an interesting one because we're actually tearing it for the different product segments in the Android ecosystem. So for the mass tier and typically in the entry area, we're coming out with a lower cost that's not, excuse me, a lower cost LMH that we're starting to release to the markets. So we're actually expecting that to begin to ramp all of our low, mid, highs, starting a little bit this quarter, bigger obviously in December, and then carrying on in a much bigger way in the March quarter.

That might be needle moving for you that we should be on the lookout for.

Speaker Change #106: Yes, the low mid high is actually an interesting one because we're actually tearing it for the different product segments in the Android ecosystem. So.

Robert A. Bruggeworth: So, for the mass tier and typically in the entry area, we're coming out with a lower-cost LMH that we're starting to release to the market. So, we're actually expecting that to begin to ramp all of our low-mid-highs, starting a little bit this quarter, bigger obviously in December, and then carrying on in a much bigger way in the March quarter. So, I think that's a little bit different. A lot of times, people think when we talk low-mid-high, it's all the same product. It's not.

Speaker Change #107: Mass tier.

Speaker Change #107: Typically in the entry area, we're coming out with a lower cost.

Speaker Change #107: Excuse me a lower cost <unk>.

Speaker Change #107: That we're starting to release to the market. So we're actually expecting that to begin to ramp all of our low mid high <unk>.

Speaker Change #107: Starting a little bit this quarter bigger obviously in December and then carrying on in a much bigger way.

Robert A. Bruggeworth: We're tiering it for the different entry tiers, mass tier to the high tier. So, I think that's pretty exciting. And, of course, we're working on some others, and I don't necessarily need to telegraph those at this time, but also, that mid-high band pad where we integrated the diversity receive functions is doing extremely well. And we saw a really great ramp at one of our larger Android customers there as well.

Bob Rugworth: So I think that's a little bit different. A lot of times you people think when we talk low, mid, high it's all the same product. It's not retiring it for the different various entry tier, mass tier to the high tier. So I think that's pretty exciting, and of course we're working on some others and don't necessarily need to telegraph those at this time. But also that mid-high band pad where we integrated in the diversity received functions is doing extremely well, and we saw a really great ramp at one of our larger Android customers there as well.

Speaker Change #107: The March quarter, So I think thats, a little bit different a lot of times.

Speaker Change #107: People think when we talk low mid high it's all the same product that's not we're hearing for the different <unk>.

Speaker Change #107: Various entry.

Speaker Change #107: Entry tier mass tier to the high tier so I think that's pretty exciting and of course, we're working on some others don't necessarily need to telegraph those at this time, but also that mid high band pad, where we integrated in the diversity received functions is doing extremely well and we saw really great ramp at one of our larger Android customers there as well.

Bob Rugworth: Yeah, I would just add to that. I mean, I appreciate the question, but these products just ramped, and our customers and ourselves, we like to get some scale off these products. So they generally run for a couple of years. So the product office mentioned we'll have that same content next year. So the $15 or so of content we had this past year, we'll get that again next year. The low mid-high our customers are really excited about that very strong engagement across all of our customers in China, and they plan to use that for several generations across their product portfolio.

Robert A. Bruggeworth: Yeah, I would just add to that, Bob. I appreciate the question, but these products just ramp up, and you know, our customers and ourselves, we like to get some scale off these products. So they generally run for a couple of years.

Speaker Change #108: Yes, I would just add to that Bob.

Bob: Appreciate the question, but these products, just ramped and our customers and ourselves we'd like to get some scale out these products and they generally run for a couple of years and so the product. Bob just mentioned, we will have that same content next year, so that the $15 or so of content. We had this past year, we will get that again next year in the low mid high our customers are really excited about that very strong.

David Fullwood: And so the product Bob just mentioned, we'll have that same content next year. So the $15 or so of content we had this past year, we'll get that again next year. And, you know, the low-mid-high. Our customers are really excited about that. Very strong engagement across all of our customers in China. And they plan to use that for several generations across their product portfolio. So we're certainly in those discussions for the longer term with all of our customers. We engage in those roadmap discussions several years out. But we have nothing to report yet.

Speaker Change #109: <unk> units across all of our customers in China, and they plan to use that for several generations and across their product portfolio. So we're certainly in those discussions for the longer term.

David Fullwood: So we're certainly in those discussions for the longer term of all of our customers. We engage in a roadmap discussion several years out. But nothing to report yet; give us little time to get some volume under our belt on these current products, nothing in B.A.C. You could play for other markets, yeah.

Speaker Change #109: All of our customers, we engage in a roadmap discussions several years out.

Christopher Adam Jackson Rolland: Give us a little time to get some volume under our belts on these, www.youtube.com.au. Awesome. Thank you guys. Cool new products. Appreciate it. Thank you. Again, if you have a question, please press star and then 1. Our next question comes from Karl Ackerman with PNB Paribas. Please go ahead.

Speaker Change #109: But nothing to report yet give us a little time to get some volume under our belt on these current products.

Speaker Change #109: And the GCT plenty plenty for other markets yes.

Unknown Executive: Awesome, thank you guys. Cool new products. Appreciate. Thank you.

Speaker Change #109: Awesome. Thank you guys coronary products appreciate it thank.

Speaker Change #111: Thank you.

Speaker Change #110: Again, if you have a question. Please press star and then one our next question comes from Karl Ackerman with <unk> <unk>. Please go ahead.

Karl Ackerman: Yes, thank you. You spoke about the transition to 8-inch ball wafers for internal manufacturing, which is great. But you've also discussed today and in the past that you have worked with third-party foundries for external silicon. I guess, what do you think about the optimal trade-off between internal production versus using external foundries over time that might help support margin expansion?

Karl Ackerman: Yes. Thank you.

Karl Ackerman: Welcome to Aiding's Ballway First for Internal Manufacturing, which is great, but you've also discussed today and in the past that you have worked with third-party foundries for external silicon. I guess how do you think about the optimal trade-off between internal production versus using external foundries over time that might help support margin expansion? Thanks.

Karl Ackerman: You spoke about the transition to eight inch ball wafers for internal manufacturing, which is great.

Karl Ackerman: But you've also discussed today and in the past that you have worked with third party foundries for external silicon.

Karl Ackerman: I guess, how do you think about the optimal tradeoff between internal production versus using external foundries overtime.

Speaker Change #112: That might help support margin expansion.

Bob Rugworth: Sure, so thanks for the question, Carol. Generally, it's technology dependent, so things like silicon or SOI, we have not done in-house and wouldn't consider doing in-house more efficiently than our partners can. Other areas where we can differentiate ourselves, especially like B.A., where there's not a foundry network available, will continue to produce those products that contain that internally as it differentiates us. And then from an OSAT perspective, in terms of assembly and test and other services, we can go out to a large partner network and benefit from their scale and their continued R&D investments. Yeah, maybe we'll get a second.

Grant A. Brown: Thanks. Sure. So, thanks for the question, Carl. Generally, it's technology-dependent. So, things like silicon or SOI, we have not done in-house and wouldn't consider doing in-house more efficiently than our partners can.

Speaker Change #113: Sure. So thanks for the question Karl generally is technology dependent so things like silicon our Soi, we have not done in house and wouldn't consider doing in house.

Grant A. Brown: Other areas where we can differentiate ourselves, especially like BHA, where there's not a foundry network available, we'll continue to produce those products that contain that internally as it differentiates us. And then from an OSAT perspective, in terms of assembly and test and other services, we can go out to a large partner network and benefit from their scale and their continued R&D investment. Yeah, maybe one caveat to that, Grant, is that in the defense market, we see the assembly capability as something that differentiates, So that's something that we do. Got it. I got it.

Speaker Change #113: More efficiently than our partners can other areas, where we can differentiate ourselves with specialty like bar, where theres not a foundry network available we will continue to produce those products.

Speaker Change #114: They contain that internally.

Speaker Change #114: <unk> us and then from an OS at perspectives in terms of assembly and test them and other services that we can go out to a large partner network and benefit from their scale and their continued R&D investments.

Bob Rugworth: Like in the defense market, we see that assembly capability has something that differentiates us, so that's something that we do internally. Got it, got it.

Speaker Change #115: Yes, maybe caveat.

Speaker Change #115: In the defense market, we see that assembly capability add something that differentiates us.

Speaker Change #115: That's something that we do do internally.

Karl Ackerman: Maybe one more, Jaime, just how to think about content growth. Just more broadly, I guess, you know, you spoke about at your analyst day how 5G enhanced will create more placement for antenna tuning and perhaps another placement for the ultra-high band pad. Could you talk, I suppose, Generally, in terms of how to think about the adoption of 5G in premium tier handsets over the next year or two? Thank you. Sure.

Bob Rugworth: Maybe one more, I may just, how do you think about content growth? Just more broadly, I guess you spoke about at your analyst day how 5G enhanced will create more placements for antenna tuning? And perhaps another placement for ultra high band pad? Could you talk, I suppose, generally in terms of how to think about the adoption for 5G improvement to your handsets of the next year or two? Thank you.

Speaker Change #116: Got it got it maybe one more if I may just how to think about content growth.

Speaker Change #117: Just more broadly I guess.

Speaker Change #118: You spoke about at your analyst day, how <unk> enhanced.

Speaker Change #119: <unk> create more placements for antenna tuning and perhaps another placement for ultra high band pad.

Speaker Change #120: Could you talk I said.

Speaker Change #119: Bose.

Speaker Change #121: Generally in terms of how to think about the adoption for <unk> in premium tier handsets over the next year or two thank you.

Bob Rugworth: Sure. Yeah, I think for those of you that were at the investor day, I think prompted a good job of laying out all the opportunities that we see coming in 5G advance and unlicensed spectrum in foldable phones and different form factors that are driving lots of challenges for our customers. And so that's all coming. I mean, those trends, those discussions are ongoing with all of our customers in terms of the new products that we're developing and how they plan to integrate those in other phones. And then you've got trends like AI, right? That's going to drive, you know, higher data rates, lower latency, and that's all going to hopefully accelerate those trends that we talked about for 5G advance and some of those other features and increased power levels.

David Fullwood: Yeah, I think for those of you that were at Investor Day, Frank did a good job of laying out all the opportunities that we see coming in 5G advanced and unlicensed spectrum and foldable phones and different form factors that are driving lots of challenges for our customers. And so that's all coming. I mean, those trends; those discussions are ongoing with all of our customers in terms of the new products that we're developing and how they plan to integrate those into their phones. And then you've got trends like AI, right?

Speaker Change #121: Sure.

Speaker Change #122: Yes, I think for those of you that were at the Investor Day, I think Frank did a good job of laying out all the opportunities that we see coming and <unk> advance and unlicensed spectrum and foldable phones in different form factors that are driving lots of challenges for our customers.

Speaker Change #122: And so that's all coming in and those trends those discussions are ongoing with all of our customers in terms of the new products that we're developing and how they plan to integrate those and either owns and then you've got translate like AI right, that's going to drive higher data rates lower latency and that's all going to hopefully accelerate those.

David Fullwood: That's going to drive, you know, higher data rates, lower latency, and that's all going to hopefully accelerate those trends that we talked about for 5G Advanced and some of those other features and increased power levels. And so, you know, as Bob mentioned earlier, it's still very early innings for AI. But as that accelerates, it should drive RF content.

Speaker Change #122: Trends that we've talked about for <unk> advanced in some of those other.

Bob Rugworth: And so, you know, as Bob mentioned earlier, it's still a very early age for AI, but as that accelerates, it should drive the RF content faster, and it'll just accelerate the adoption of 5G advance. Thank you.

Speaker Change #122: Features and increased power levels and so as Bob mentioned earlier, it's still in very early innings for AI.

Bob: But at that accelerated should drive.

Bob: RF content faster.

Speaker Change #123: To accelerate the adoption of <unk> events.

Edward Snyder: And the final question comes from Edward Snyder with Charter Equity Research. Please go ahead. Thanks for taking the question.

Edward Francis Snyder: Thank you. And the final question comes from Edward Snyder with Charter Equity Research. Please go ahead. This is Jack Egan.

Speaker Change #123: Thank you.

Speaker Change #123: And the final question comes from Edward Snyder with Charter equity Research. Please go ahead.

Jack Egan: This is Jack Egan on for it Snyder. So you've mentioned your content should grow pretty strongly in the second half of this calendar year. I don't know if you haven't guided to it, but I was hoping you could just give us, you know, kind of a general ballpark idea of your expected content growth or at least how it compares to prior years, and then I just had a quick follow. Sorry, Jack. When you said content, I don't know what market you're talking about, customers. Which one of our business units, I need a little more color to help answer your question.

Speaker Change #123: Thanks for taking the question. This is Jack Egan on for Ed Snyder.

Jack Egan: Thank you. So, you mentioned your contact. Page PAGE of NUMPAGES www.verbalink.com, And I know you haven't been guided to it, but I was hoping for a general ballpark idea of your expected content growth, or at least how. Sorry, Jack.

Jack Egan: You mentioned your content should grow pretty strongly in the second half of this calendar year.

Jack Egan: I know you haven't guided to it but I was hoping you could just give us kind of a general ballpark idea of your expected content growth or at least how it compares to prior years and then I just had a quick follow up.

Robert A. Bruggeworth: When you said content, I don't know what market you're talking about, customers, which one of our business units. I need a little more color to help answer your question. Sir, sorry about that.

Speaker Change #125: Sorry, Jack when you said content I don't know what market you are talking about customers, which one of our business units I need a little more color to help answer your question.

Jack Egan: Sure, sorry about that. I was talking about mobile content at your large customer. Okay, what I can say is what I've said, probably the last couple quarters is I'm confident in our ability to grow with our largest customer, game share this year, as well as I think we're in a great position to be able to gain share again next year at our largest customer. Got it. Okay, um, and then. So I guess on the non-mobile side, we've seen quite a few reports in the analog space so far call out some particular strengths in China in the second quarter.

Sure sorry about that I was talking about mobile content at your large customer.

Jack Egan: I was talking about mobile content at... Okay, what I can say is what I've said probably the last couple quarters is that I'm confident in our ability to grow at our largest customer and gain share this year as well as I think we're in a great position to be able to gain share again next year at our largest customer. Okay, and then...

Speaker Change #125: Okay.

Speaker Change #126: Can say is what I've said, probably the last couple of quarters as I am confident in our ability to grow with our largest customer gain share this year as well as I think we're in a great position to be able to gain share again next year at our largest customer.

Speaker Change #127: Got it okay.

Robert A. Bruggeworth: So I guess on the non-mobile side, we've seen quite a few reports in the analog space so far call out some particular strengths in China, and, of course... Transcribed by https://otter.ai, Unbound in China, maybe in the HPA, or in the cellular business as well, were there any, you know, Yeah, I wouldn't necessarily focus on China specifically. I mean, when we look at the markets that we serve, you know, it's pretty broad-based across HPA and CSG.

Speaker Change #128: And then.

Speaker Change #130: So I guess on the non mobile side, we've seen quite a few reports in the analog space. So far call out some particular strength in China in the second quarter and of course, it's a very different market from cellular but so far that demand is.

David Fullwood: And of course, it's a very different market from cellular, but so far that, you know, demand has seemed pretty broad-based and in strength. And so, have you seen the same rebound in China, maybe in, you know, the HPA or CSG or in the cellular business as well. And were there any, you know, areas of specific strength to call out.

Speaker Change #128: It seems pretty broad based.

Speaker Change #133: And then strength and so have you seen the same rebound in China, maybe in the HPA or.

<unk> or in the cellular business as well.

Speaker Change #134: And were there any areas.

Speaker Change #132: Specific strength to call out.

David Fullwood: Yeah, I wouldn't necessarily maybe focus on China specifically. I mean, we're looking at the markets that we serve, you know, it's a pretty broad base across HPA and CSG. I mean, if you look in China or automotive, for example, I mean, definitely the ultra wideband adoption that we have been seeing is starting to pick up there and accelerate. Or, you know, things like presence detection and kick sensors and other advanced radar features on the power side. Certainly, when it comes to AI and data center, we're seeing, you know, increasing requirements for improving the efficiency and the power supply.

Robert A. Bruggeworth: I mean, if you look in China, for automotive, for example, definitely, the ultra wideband adoption that we have been seeing is starting to pick up there and accelerate for, you know, things like presence detection and kick sensors and other advanced radar features. On the power side, certainly when it comes to AI and data centers, we're seeing increasing requirements for improving the efficiency in the power supply. So that's driving the adoption of silicon carbide.

Speaker Change #129: Yes, I wouldn't necessarily maybe focus on China, specifically I mean, when you look at the markets that we serve III.

Speaker Change #131: Pretty broad based across HPA and CSC I mean, if you look in China.

Speaker Change #131: Our automotive for example, I mean definitely the ultra wideband adoption that we have been seeing is starting to pick up there and accelerate.

Speaker Change #131: For things like presence detection and kicked sensors.

Speaker Change #131: And other advanced radar features on the power side certainly when it comes to AI and data center, we're seeing.

Speaker Change #131: Increasing requirements for improved efficiency and the power supply. So that's driving the adoption of silicon carbide, that's been a great trend for us.

David Fullwood: So that's driving the adoption of Silicon carbide. That's been a great trend for us. You know, another, another new area for a growth forest, both inside the car and outside the car, as Bob mentioned, is in circuit protection. So that's a really interesting opportunity for us because circuit protection today is pretty much exclusively done with electromechanical solutions. And so that's all; you know, new salmon entering into our markets that will be solid state and Silicon Carbide. That's the leading technology for that, especially that is looking far by that we have top to that. So there's lots of those; there's great new growth trends and.

Robert A. Bruggeworth: That's been a great trend for us. You know, another new area of growth for us, both inside the car and outside the car, as Bob mentioned, is circuit protection. So that's a really interesting opportunity for us, because circuit protection today is pretty much exclusively done with electromechanical solutions.

David Fullwood: And so that's all, you know, new SAMs entering our markets that will be solid state and silicon carbides, at least. The Bulletproof Executive 2013, So there's lots of those, there's great new growth trends, and those things have just accelerated really since we talked about America. The thing I'd like to add to that, Dave, is the V2X that I talked about in my prepared remarks in China is actually China leading all the regions as far as adopting V2X, and that's pretty exciting for us. Again, that's going to be ramping up next calendar year, but it's good to see that there. And then, you know, we'll expect it obviously to flow into Europe and then, obviously, the US.

Speaker Change #135: Another another new.

Speaker Change #135: Area for our growth for us both inside the car and outside of the car as Bob mentioned in circuit protection. So.

Bob: That's a really interesting opportunity for us because circuit protection today is pretty much exclusively done with electromechanical solutions and so that's all.

Speaker Change #136: Sam entering into our markets that will be solid state and silicon carbide, leading technology for that especially as you're looking at that we have to offer that same philosophy theres, great new growth trends and those things have just accelerated really since we talked about in our investor day.

Bob Rugworth: And those things have just accelerated really since we talked about in our Investor Day. I'd like to add to that, Dave, is the VDAX that I talked about in my prepare remarks. In China, it is actually China's leading all the regions as far as adopting VDAX. And that's pretty exciting for us again. That's going to be ramping next calendar year, but it's good to see that there and then, you know, we'll expect it to obviously flow into Europe and then obviously the US. Got it. Thanks, that's helpful.

Bob: I'd like to add to that Dave is davita expert I talked about in my prepared remarks.

In China is actually China's leading all the regions as far as adopting <unk> nuts.

Speaker Change #137: And that's pretty exciting for US again, that's going to be ramping next calendar year, but it's good to see that there and then we will expect it ultimately to flow into Europe, and then obviously the U S.

Speaker Change #137: Got it thanks that's helpful.

Unknown Executive: This concludes our question and answer session.

Operator: Got it, thanks. This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. We want to thank everyone for joining us on tonight's call. We appreciate your interest. We look forward to speaking with many of you at upcoming investor events. Thanks again, and have a great evening. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Okay.

Unknown Executive: I would like to turn the conference back over to management for any closing remarks. We want to thank everyone for joining us on tonight's call. We appreciate your interest. We look forward to speaking with many of you at upcoming investor events. Thanks again, and have a great evening.

Speaker Change #138: This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.

Speaker Change #139: We're going to thank everyone for joining us on tonight's call. We appreciate your interest we look forward to speaking with many of you at upcoming investor events.

Speaker Change #140: Thanks, again and have a great evening.

Unknown Executive: The conference is now concluded. Thank you for attending today's presentation.

Speaker Change #138: Yes.

Speaker Change #141: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Unknown Executive: You may now disconnect. Thank you for joining us.