Qorvo, Inc.

and welcome to corvo inc q1 2024 conference call at this time all participants are in a listen only mode a brief question and answer session will follow the formal presentation if anyone should require operator assistance during the conference please press star zero on your telephone keypad as a reminder this conference is being recorded it is now my pleasure to introduce your host douglas delito vice president investor relations Thank you, Mr. Delito. You may begin.

Thanks very much. Hello, everybody, and welcome to Corvo's fiscal 2024 first 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 in our annual report on Form 10-K filed with the SEC because these risk factors may affect our operations and financial results. In today's release and on today's call, we provide both 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 investor relations website at ir.corvo.com under financial releases. Joining us today are Bob Bruggerworth, President and CEO, Grant Brown, CFO, Dave Fullwood, Senior Vice President of Sales and Marketing, and other members of Corvus management team. And with that, I'll turn the call over to Bob.

Thanks, Doug, and welcome everyone to Corvus fiscal 2024 first quarter call. Revenue, margin, and EPS were all above the midpoint of the outlook we provided on our May 3rd earnings call. End market demand in the June quarter was consistent with our expectations. Within the Android ecosystem, channel inventories continue to be consumed, and Corvo continued to undership to end market demand. We expect continued reduction in channel inventories in the September quarter, and we see Android channel inventories normalizing by calendar year end. In other markets, relative strength in the areas like defense and aerospace and automotive was offset by inventory consumption across consumer markets and weak demand in 5G infrastructure. In some of these markets, we expect inventory consumption to extend into next year. Corvo has worked diligently since last fall to aggressively drive down channel inventories in multiple markets, while at the same time prioritizing new product development and securing customer designs. This has enabled us to drive growth in large customer programs, and it positions Corvo for incremental growth as end markets recover. As we have stated in the past, Corvo's growth targets by segment are for strong double-digit growth in connectivity and sensors, double-digit growth in high-performance analog, and mid to high single-digit growth in advanced cellular. Design wins during the quarter in HPA were diversified across customers and markets and included large defense programs extending multiple years. In connectivity and sensors, design activities span a variety of applications, including highly integrated IoT connectivity solutions, Wi-Fi 7 RF front ends, and force sensing touch sensors. We have a broad range of growth drivers in CST, and we are pleased with our increasing design activity in new growth areas like sensors and ultra-wideband. Over time, we see HPA and CSG contributing increasingly to growth, diversification, and margin expansion. In advanced cellular, design activity continued to be favorable across all leading smartphone OEMs. We are growing our content in next-generation 5G smartphones at our largest customers, and we are capturing new content in the Android ecosystem as 4G units transition to 5G and enter our SAN. In calendar 2023, approximately 45% of Android smartphones will be 5G, and we expect Android 5G smartphone unit growth to post double-digit CAGR for several years. Now let's turn to some quarterly highlights. In automotive applications, Corvo was selected by an automotive tier one to supply ultra-wideband connectivity for an upcoming EV launch by a US-based manufacturer. We are pleased with this win and the growing content opportunity in automotive, where the ultra-wideband content inside the car will typically include five to seven placements, plus one placement in each key fob. We also secured touch sensor design wins enabling force-level detection in a range of smart interior applications, including center console, door panel, steering wheel, and display. These are multiple design wins totaling multiple millions of dollars. In automotive connectivity, we were selected by a leading automotive antenna supplier to provide cellular V-to-X front-end modules and BAW co-existent filters for use by a major European-based OEM. Lastly, we expanded our automotive footprint with an automotive radar design win to supply or receive amplifier for a major U.S.-based automotive OEM. Corvo's automotive opportunities include DC to DC converters, onboard chargers, smart interiors, RF run-ins for 5G, Wi-Fi and V to X connectivity, radars, and ultra-wide-band secure car access for key farms and inside cars. In Wi-Fi, we secured several Wi-Fi 7 design wins with access point providers for our Wi-Fi 7 BOP filters, enabling full coverage of 2.4, 5, and 6 gigahertz bands. We also began sampling Tier 1 customers for our next-generation Wi-Fi 7 FEMs which pairs with multiple chipsets. In our connectivity systems business, we were among the first to achieve Matter 1.1 certification for our Concurrent Connect integrated solutions for gateways and devices. This expands our market opportunity in support of the top smart home ecosystem customers whose installed base exceeds 150 million home networks. In silicon carbide, we booked a multimillion-dollar customer order for silicon carbide power devices supporting AI servers in other data center applications. The ZynWin funnel for Corvo silicon carbide power devices is increasing, and we continue to expand our supply base to support our customers. In addition to the previously announced supply agreement with SK Siltron, we also have agreements in place with full speed and coherent. For broadband applications, we extended our leadership in DOCSIS 4.0 with customer sampling of our 1.8 gigahertz hybrid power doubler. This solution delivers more RF power with lower power consumption than competing solid state solutions. In cellular infrastructure, we released the highly integrated 3.4 to 3.8 gigahertz 8-watt PAM that simplifies 5G massive MIMO system design. We also began sampling the industry's first C-band discrete bar bandpass filter for 5G small cell radios. For defense communications, we began sampling the industry's first 2 to 18 gigahertz transmit received front end module delivering 10 watts of transmit power. This highly integrated wideband solution integrates the PA switch LNA, and limiter. It leverages Corvo's advanced packaging and process technologies to maximize power efficiency in a miniaturized footprint. The form factor and functional density of our solution is especially critical given the trend in our defense and aerospace business of one to many. In addition to manned aircraft, there will be many more drones. In addition to large KEO satellites, there will be many more LEO satellites. These future communication systems and system upgrades incorporate more electronics, requiring greater integration across higher volumes. For smartphone OEMs, we began sampling Android smartphone customers Corvo's newest highly integrated pad, which combines in a single placement the low, mid, and high band main path functionality that is currently offered in two placements. This new architecture reduces surface area by 40% to meaningfully simplify design and decrease time to market for master 5G phones. This follows on the heels of our announcement last quarter that we've begun sampling a mid-highband path that combines the main path and diversity received content for the mid and highbands. Both placements leverage a broad range of Corvo process technologies including our newest ball and saw filters. Lastly, we commenced customer sampling of our next-generation antenna tuners, which deliver best-in-class linearity, the industry's smallest solution size, and compatible with all major chipsets. I want to thank the Corvo team for continued operational excellence. We have made significant progress clearing channel inventories while developing new technologies and securing new design wins that enhance our customers' products and expand our addressable market. In the September quarter, our outlook primarily reflects new products ramping at our largest customer. Later in the year, we expect Android revenues to reflect a healthier channel and Corvo shipments that are more closely aligned with end market demand. We are very encouraged by customer design activity we've seen so far this year. We expect revenue growth and margin expansion as product mix favors our high-growth investment businesses, and we are positioned for incremental growth as end markets recover. And with that, I'll hand the call off to Grant.