Qorvo, Inc.

Hello and welcome to the third quarter 2024 earnings conference call for Corvo. 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 ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw from the question queue, you may press star, then two. I would now like to hand the call over to Doug DeLito, Vice President, Investor Relations. Please go ahead.

Hello, everybody, and welcome to Corvo's fiscal 2024 third 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 in Form 10-K, filed with the SEC because these risk factors may affect our operations and financial results. In today's press 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 Brotherworth, President and CEO, Grant Brown, CFO, and Dave Flowitz, Senior Vice President of Sales and Marketing, and other members of the Corvo's management team. And with that, I'll turn the call over to Bob.

Thanks, Doug, and welcome everyone to Corvo's fiscal 2024 third quarter call. I would like to start by complimenting the team for delivering another solid quarter. The demand environment in the December quarter improved versus our November outlook, and this is reflected in our strong performance. Looking at our business from a high level, Corvo is capitalizing on secular trends, including connectivity, sustainability, and electrification. These trends are playing out over many years, and they are fueling the transition to new technologies and new standards, like 5G Advanced, Wi-Fi 7, Matter, DOCSIS 4.0, and others. As a result, customers across our businesses are increasingly seeking higher levels of efficiency and performance where performance is measured in power out, talk time, or time between charges. Corvo is central to these transitions, and we are critical to enabling these capabilities. We leverage unique competitive strengths to supply our customers best-in-class solutions that enhance efficiency, increase throughput, and reduce form factor. We are a preferred supplier with leading products and a robust technology roadmap, and we are positioned favorably for broad-based growth across our three operating segments. Now let's turn to our strategic highlights, beginning with HPA. Customer demand in end markets, excluding base station, is improving and supports our view for a return to year-over-year growth in HPA in the March quarter. In defense and aerospace, we want an X-band radar design with a major DOD contractor, and we received new standard product orders in support of several large domestic and international ground-based radar systems. We also enjoy increasing demand for our solid-state PA products and for our switch filter bank products across multiple customers and programs. There are multi-year secular trends driving our DNA business, including the trend of one-to-many and the transition of mechanical systems to active electronic scanning systems, both of which increase requirements for more advanced systems-level RF solutions. Earlier today, we announced the signing of a definitive agreement to acquire Boston-based Anokia Wave. Anokia Wave is a leading supplier of high-performance integrated silicon ICs for intelligent active array antennas. We are excited to have the Anokia Wave team join Corvo, and expand our offerings for defense and aerospace, SATCOM, and 5G applications. In power management, we are extending our reach in markets where Corvo enjoys a strong presence, such as wearables and other consumer products. Our most recent award is a PMIC chipset with multiple placements for a wearable and charger at a leading Android OEM. Complementing this, We've begun to see a rebound in SSDs for PC and enterprise markets. We're continuing to expand upon our strong position with an additional power management win in support of a leading manufacturer of laptops. Lastly, our recently launched QSPICE circuit simulation software was honored as the design tool and development software product of the year at the 2023 Electra Awards. In power devices, we're shipping in the power supplies for blockchain applications, and design activity and data center continues to be strong. We're also seeing increased activity in circuit protection where our JFET technology brings unique advantages. In automotive, design activity remains strong, not only for onboard chargers, but also for other emerging applications in electric vehicles. In infrastructure, Corvo is leading the DOCSIS 4.0 upgrade cycle. We commence volume shipments of our newest DOCSIS 4.0 hybrid power doubler in support of multiple cable OEMs. In the cellular base station market, inventories continue to be consumed, and we expect demand conditions to remain soft through calendar year 24. Turning to CSG, customer activity for ultra-wideband is increasing in secure access automotive applications. We are also seeing new applications for ultra-wideband in automotive, including presence detection and other radar-based sensors. This momentum builds upon our recent wins in ultra-wideband, including an in-vehicle car access platform and a flagship Android smartphone launch. As we demonstrated at CES, we are actively involved in a wide array of enterprise and connected home solutions, leveraging matter and ultra-wideband for applications such as door locks, smart lighting, and indoor navigation. In force sensing touch sensors, we received first production orders for an automotive supplier in support of a leading Korea-based automotive OEM. We are seeing increasing traction across a growing set of customers and markets, including automotive, laptop track pads, wearables, and smart health. In Wi-Fi, design activity and collaboration remain strong across reference designs, customers, and operators. Within the Android ecosystem, the demand environment for mobile Wi-Fi is improving with the normalization of Android channeling stores. In access points, Wi-Fi 6 volumes continue to grow with server providers rollouts in India. In Wi-Fi 7, Corvo secured design wins across operator, retail, enterprise, and mobile segments. In ACG, we commend shipments in support of the spring 2024 flagship smartphone launch by the leading Android smartphone OEM. On our last earnings call, we highlighted our content gains in the flagship tier. In addition to the ultra-wideband, Corvo content this year includes the lowband, mid-highband, ultra-highband, secondary transmit and receive, tuning, and Wi-Fi. We are ramping up now and building upon our momentum with a broad set of design wins in this customer's high volume mass market portfolio. Android mass market smartphones are set to transition to 5G through the decade. And our collaboration with Android customers on their long-term product roadmaps positions Corvo to be a primary beneficiary as these new 5G units enter our SAM. To that end, Corvo was recognized by the top four China-based Android 5G OEMs with 2023 awards for innovation, quality, supply, technology, and strategic partnership. To simplify 5G adoption and sustain our position as the leading global strategic supplier to Android OEMs, we continue to launch new architectures and new products that enhance performance and reduce form factors. During the quarter, we expanded customer sampling of our newly launched main path LMH pad. This highly integrated solution is optimized for mass market smartphones. It combines in a single placement the low, mid, and high bin main map content traditionally offered in two placements. This reduces surface area by 40%, simplifies design, and accelerates time to market. In addition to developing highly integrated solutions with increasing levels of functional density, We're also advancing technology in our high-performance discrete portfolio, including our BAW filters. During the quarter, we received purchase orders for discrete BAW filters using our recently released next-generation BAW technology. During the quarter, we continue to bring channel inventories down, and now our shipments are more closely aligned with end-market demand. We're also seeing incremental improvement in end-market demand in the Android ecosystem. For calendar 24, we expect total smartphone units to grow in low single digits, with 5G units growing over 10%. To compete and win, we collaborate with customers on their three-year product roadmaps, and we supply them industry-leading solutions. We enjoy a position as the preferred strategic RF supplier for all the customers we serve in the Android space, and we are very well positioned to benefit as their portfolios continue to transition to 5G. In summary, demand for Corvo's products has improved, primarily due to our proactive efforts to align channel inventories with end market demand and content gains on key customer programs. We are delivering customers industry-leading products and technologies, and design activity remains robust. This positions Corvo favorably for continued strong content and durable long-term growth. And with that, I'll hand the call over to Grant.