Qorvo, Inc.

Good day, everyone, and welcome to the Corvo Incorporated Fourth Quarter 2022 Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Douglas Delito, Vice President of Investor Relations. Please go ahead, sir.

Thanks very much, Sarah. Hello, everybody, and welcome to Corvo's Fiscal 2022 Fourth 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 statements 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. In today's release and on today's call, we provide both GAAP and non-GAAP financial results. We provide the 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, Grant Brown, Interim CFO, Eric Creviston, President of Corvo's Mobile Products Group, Philip Chesley, 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.

Thanks, Doug, and welcome everyone to our call. Corvo delivered fiscal fourth quarter results above the midpoint of our outlook we provided on February 2nd earnings call. Demand drivers were broad-based across end markets, including 5G, IoT connectivity, defense, and power. Both mobile products and IDP grew year over year and sequentially. In mobile products, revenue was diversified across customers and supported by content and integration trends. Of note, I've known Corvo more than doubled revenue year over year at Samsung with growth across multiple product categories. We also expect content gains as the year progresses across Honor's smartphone portfolio with opportunities spanning multiple products and technologies. In IDP, revenue was broad-based across markets and included our newly added high-voltage silicon carbide solutions. We were pleased to see IDP return to year-over-year growth, driven by infrastructure, power management, and other markets. IDP enjoys an increasing number of long-term drivers in growth markets, including automotive connectivity and electrification, defense radar and comms, power management, comms infrastructure, and others. Now let's look at some of the quarterly highlights. In mobile products, we increased shipments to Samsung for mass tier and flagship 5G smartphone programs. Corvo products included RF Fusion, Wi-Fi 6 eFEMS, antenna control solutions, and RF power management ICs. We were recognized by Honor as their only core strategic supplier in the RF category, and we received the first production orders for our next generation RF Fusion solutions. At multiple China-based smartphone OEMs, we secure design wins covering a range of products, including complete main path and secondary transmit solutions supporting multiple basebands. In Ultra Wideband, we were selected by an existing Ultra Wideband customer to supply our first system-in-a-package, or SID, for multiple upcoming smartphone models. Our ultra-wideband SIP strengthens our product portfolio and offers customers a complete solution that integrates our SOC, RF front end, and software. Corvo's ultra-wideband offerings received a higher percentage of FCC certifications last year than competing solutions, and design activity this year has been robust. In automotive sensors, we received a design win to supply MEMS-based touch sensor solutions for smart interiors at one of the largest U.S.-based automotive OEMs. Moving to IDP and power devices, we continue to see strong design inactivity as silicon carbide technology expands across multiple markets. During the quarter, we received a multimillion-dollar order for a new silicon carbide power device solution for circuit protection in EV charging stations. In power management ICs, we achieved another quarter of sequential and year-over-year revenue growth driven by solid state drives and motor control solutions for power tools. In automotive connectivity, we received our first design win for a highly integrated V to X FEM, enhancing performance and extending range in a Shark Fin application for a leading European-based automotive OEM. In infrastructure, The business returned to year-over-year growth, and we secured design wins from multiple leading OEMs for massive MIMO small signal applications supporting C-band deployments in the U.S. In Wi-Fi, we sampled our first law-based Wi-Fi 6E filter, reducing form factors for CPE tri-band mesh networks. We also began ramping the industry's first wide-band FEM covering both Wi-Fi 6 and 6E for enterprise CPE customers. This new FEM enables configurability in RF chain management, increasing capacity, and maximizing throughput. In low-power connectivity markets, we secure design wins for a multi-protocol low-power wireless SOC integrating BLE, ZigBee, and Thread. These wins enable remote control applications for our leading Korea-based TV OEM, and leading US-based MSO. In support of the Matter connectivity protocol, we expanded customer engagements with retail and service providers to integrate Matter into Wi-Fi gateways. Matter is an open and universal smart home protocol expected to simplify and accelerate the adoption of seamless and reliable wireless connectivity. In both mobile and IDP, Corvo's markets are supported by multiple long-term secular trends related to connectivity, electrification, sustainability, and are increasingly digitalized. The Corvo team continues to do a fantastic job supporting customers while adjusting the challenges related to the war in Ukraine, supply constraints, and COVID lockdowns in China. While challenges persist, they are temporary in nature and not structural. Corvo remains laser-focused on the opportunities ahead, introducing new technologies, launching best-in-class products, entering new markets, and expanding our customer engagements. As an example, take Samsung, where we had previously been underrepresented and where the combined opportunity extends for years. Of note, our customer diversification in mobile is unmatched and affords Corvo an expanding set of opportunities as 5G continues to grow. Adding to that, an increasing percentage of Corvo's revenue exposure is to higher growth and markets. These include IoT connectivity, power management, power conversion, and defense, all of which are forecast to grow long-term in the double digits. So while we navigate these challenges, our current views suggest June is the bottom with sequential growth in revenue resuming in September. I'm proud of how the team is staying focused, advancing technology, and supporting our growth. With that, I'll now turn it over to Grant Brown, who I'm pleased has accepted the role of interim CFO. Grant has been with Corvo for many years, most recently as treasurer. Before that, Grant led our tax and FP&A departments, as well as other management roles. He has been a key contributor to Corvo's growth, and he has extensive knowledge of our business. I am confident Grant, the finance and IT teams, will continue to execute on Corvo's ongoing financial and strategic priorities. And with that, I'm glad to hand it over to Grant.