Qorvo, Inc.

Good day and welcome to the Corvo Inc. Q2 2022 conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Douglas Delito, Vice President of Investor Relations. Please go ahead.

Thanks very much, Todd. Hello, everybody, and welcome to Corvo's fiscal 2022 second quarter earnings conference 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 Securities and Exchange Commission 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. 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. For complete reconciliation of GAAP to non-GAAP financial measures, please refer to our earnings release issued earlier today, available on our website at corvo.com under Investors. Joining us today are Bob Bruggerworth, President and CEO, Mark Murphy, Chief Financial Officer, Eric Crevison, President of Corvo's Mobile Products Group, Philip Chesley, incoming President of Corvo's Infrastructure and Defense Products Group, and James Klein, outgoing President of Corvo's Infrastructure and Defense Products Group, as well as other members of Corvo's management team. And with that, I'll turn the call over to Bob.

Thank you, Doug, and welcome everyone to our call. The Corvo team delivered an exceptional September quarter, with revenue and EPS at all-time highs. Strength during the quarter was broad-based across customers and supported by new product launches. In mobile products, the multi-year migration of 5G continues to drive RF content and integration trends. What began in top-tier flagship phones is now playing out in the mass market, where the RF content increase is greater on a percent basis than in flagship devices. Corvo enjoys broad exposure to mass market designs at customers like Honor, OPPO, Pixel, Samsung, Vivo, and Xiaomi. As a preferred supplier with leading products and a robust technology roadmap, Corvo is well positioned as 5G devices and Android ecosystem contribute increasingly to the growth in the RF TAM. In other connectivity markets, ultra-wideband adoption in smartphones is serving as the infrastructure for a growing ecosystem of ultra-wideband-enabled devices. The opportunity set spans mobile, automotive, and IoT markets, creating a strong foundation for growth over the coming years. In Wi-Fi, the adoption of Wi-Fi 6E and the performance limitations of smaller-node CMOS integrated PAs are driving the migration to chip-on-board FEMs and IFEMs like ours. In Wi-Fi and other markets, Corvo's products and technologies are at the forefront of multi-year upgrade cycles, enabling new ecosystems and use cases and transforming the user experience. Now let's look at some of the quarterly highlights in our end markets, starting with mobile. For Google, we commend shipments of mid-high and ultra-high band pads, antenna tuners, and multiple connectivity solutions to support the ramp of their recently announced Pixel 6. For an upcoming Korea-based 5G mass-market smartphone platform, we received the first production orders for our mid-high and ultra-high band pads, Wi-Fi FEMs, and multiple high-performance discrete solutions. In mobile Wi-Fi, we secured a Wi-Fi 6 FEM design wins with multiple top-tier smartphone OEMs and began sampling Wi-Fi 7 FEMs enabling higher data rates and improved performance. In ultra-wideband, Corvo is advancing technologies for a diverse ecosystem of proximity-aware connected devices. We secured an ultra-wideband design win to enable real-time device tracking and other location-aware applications in home mesh networks. And we were selected to supply ultra-wideband solutions for enterprise access points as well. We also expanded our engagement with a leading provider of consumer IoT products across a broad set of connected home devices, including smart speakers, point and control fans, and air conditioners. In automotive manufacturing, Corvo was selected to supply ultra-wideband and Zigbee solutions with concurrent connect technology to an automaker in Korea, streamlining automation and manufacturing. In other connectivity markets, we began sampling a Wi-Fi 6 IFEM covering 5.2 gigahertz and 5.6 gigahertz and featuring an integrated BAW filter. Corvo's 5 gigahertz IFEMs enable higher capacity and improved efficiency and a reduced form factor. In broadband, we began sampling a triple output DOCSIS 3.1 amplifier module supporting network upgrades for major cable operators in the U.S. and in Europe. In infrastructure, design wind activity was strong across OEMs, including small cells and base stations. Winds included all of the RF transmit and receive path content, including BOS filters for 5G small cells at a major base station OEM. We see infrastructure markets picking up in 2022 with Corvo's SAM growing year over year. The SAM for Corvo outside of China will post significant growth next year, and support a strong double-digit CAGR through 2025. In aerospace and defense, we expanded our product portfolio with an industry-leading 125-watt S-band power amplifier module and a 1.8-kilowatt L-band radar pallet for commercial and defense radar applications. In RF-based biotechnology testing, we received our first commercial orders and commence shipments of our Omnia antigen test platform. During the quarter, the NIH RADx variant task force conducted an external study that demonstrated the performance of our Omnia antigen test platform in effectively detecting COVID variants, including the Delta variant. Although this is a new market for us, We believe we bring a novel technology that offers unique and real value as the world moves to more testing protocols, including for flu AB and other seasonal pathogens. Our platform offers a unique combination of accuracy and speed at the point of care with improved process flow, including real-time wireless delivery of results. We have seen its benefits in our own operations as part of our protocol for our own internal testing. After the quarter closed, Corvo acquired United Silicon Carbide, an innovator in silicon carbide power devices and a pioneer in silicon carbide JFETs. The combination will further differentiate Corvo's power portfolio, enabling more highly integrated power device solutions and expand our addressable market to include higher voltage applications that demand maximum power efficiency, such as electric vehicles, charging stations, and renewable energy systems. We welcome Chris Rice and his team and look forward to helping them accelerate the growth in their business. For Corvo, our ability to deliver more power more efficiently and using less current helped put us at the center of the digital transformation. We are eager to expand these competencies as global markets move to electrification and renewable energy. Corvo's technology portfolio is best in class, our product position is strong, our end market exposure is expanding, and we are operating very well. Yes, we are seeing constraints, and we are working closely with our customers and our partners. Mark will have more comments about the operating environment, and we look forward to discussions during your question and answers. Big picture, we see the industry working through this, as it always has. For Corvo, we see a business with unique competencies and expanding set of growth drivers, and we expect a continuation of double-digit growth over several years. Before handing the call over to Mark, I'm pleased to welcome Philip Chesley as president of Corvo's Infrastructure and Defense Products Group. Philip has a proven track record growing global semiconductor businesses with experience in RF, power, data communications, automotive, industrial, aerospace, and defense. We are very pleased Philip has joined Corvo to lead our IDP team. Also want to thank James Klein. Since the formation of Corvo, James and the team have more than doubled IDP revenue while creating a recognized industry leader. We thank James for his many contributions to Corvo and wish him the very best. James will remain with us through November to help ensure a smooth transition with the change in the IDP leadership. And with that, I'll hand the call over to Mark.