Qorvo, Inc.

Good day, and welcome to the Corvo, Inc. first quarter 2025 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 ask questions. To ask a question, you may press star, then one on a touch-tone 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 Delito, Vice President of Investor Relations. Please go ahead.

Thanks very much. Hello, everyone, and welcome to Corvo'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 and 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.corbo.com under financial releases. 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 Orgo's management team. And 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. 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 megatrends, including electrification, connectivity, mobility, sustainability, datafication, and AI. 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, 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. 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 and 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. Corvo 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 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 and efficient power distribution. 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 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. To support global broadband deployments, Corvo's Wi-Fi solutions enable cellular, cable, and satellite backhaul applications in developed and emerging markets. Of note, we recently surpassed 75 million Wi-Fi 6 SPAMs 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 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. Turning to defense and aerospace, we secure design wins across segments, including AESA radars, large defense programs, and SATCOM deployments, where Corvo participates in both the low Earth orbit satellite and the ground-based consumer terminal. 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. During the quarter, we fully integrated the Enoki Wave team into Corvo. 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 add 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. 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 extender, regardless of distance. For massive MIMO 5G base stations, we introduced a best-in-class transmit pre-driver. 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 milliohm silicon carbide JFET. It's 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. 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 cost 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. 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, Corvo remains the primary RF supplier. We collaborate with Android OEMs on their product roadmaps over multiple years, and we are positioned to drive growth as 4G devices move to 5G at NRSAM. In calendar 24, we expect Android 5G unit volumes to grow greater than 10%. We are also positioned to grow with 5G advances. which occurs with new releases of the 5G standard. Content drivers in 5G Advanced include an additional transmit path, non-perrestrial network connectivity, and requirements for power Class II amplifiers to increase output power, improve data throughput, and extend cell site coverage. During the quarter, we ran multiple new products leveraging our newest BAW 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 SAW-based module. It is a highly complex multi-chip module that features Corvo's internal BAW, LRT SAW, and gas HPT. 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 market 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 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 Corvo as the exclusive supplier of Wi-Fi 7 FEMS for customers of their DX4 Wi-Fi chipset. MediaTek's DX4 chipset and Corvo's Wi-Fi 7 FEMS are optimized to deliver superior performance for flagship and mass-market smartphones. 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 Corvo's ultra-wideband SoC. This is our first win in a mid-tier smartphone. and is an early indicator of ultra-wide bands proliferating across mass market smartphone portfolios. 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. 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 BAU, and our BAU lines are now exclusively 8-inch. We 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 in our largest customer. 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-wideband SSCs. 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. And with that, I'll turn the call over to Grant.