Qorvo, Inc.

Good day and welcome to the Corvo, Inc. fourth 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 your telephone keypad. To withdraw your question, please press star then two. Please note, This conference 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 fourth 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. 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 our trends and 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, Philip Chesley, President of High Performance Analog, Eric Creviston, President of our Connectivity and Sensors Group, Frank Stewart, President of our Advanced Cellular Group, as well as other members of Corvo's management team. And with that, we'll turn the call over to Bob.

Thanks, Doug. Welcome, everyone, to our call. Corvo delivered a strong March quarter with notable achievements in each of our operating segments. In ACG, we supported a critical new phone launch by our largest customer, Corvo content in this highly anticipated model includes an envelope tracking power management solution, custom developed for this customer over multiple years in support of their internal baseband. Our envelope tracking roadmap represents a long-term content growth opportunity for Corvo as our largest customer's baseband shipments expand. In HPA, we posted a record revenue quarter in our defense and aerospace business. Strength was broad-based and included applications such as manned and drone-based airborne radar, space-based radar, SATCOM, EW, and missile defense systems. In CSG, we continue to increase our sales funnel of ultra-wideband opportunities. Our ultra-wideband sales funnel for automotive has grown more than $500 million over the last 12 months and now exceeds $2 billion. For fiscal year 2025, both CSG and HPA grew revenue double digits. As we think about the business broadly, we are pleased to see the positive impact of our ongoing initiatives to improve performance. Our growth and margin targets are anchored in multi-year strategy focused on winning content with our largest customer. Building on our core RF and power expertise to drive diversification through CSG and HPA, and continuing to operate our business and manufacturing footprint in a disciplined and efficient manner. Key growth levers include continued momentum in defense and aerospace, expansion of our power management and ultra-wideband businesses, and sustained content growth in flagship and premium mobile devices. On the margin side, we are executing a clear set of actions. These include shifting away from legacy Android programs scaling high-value products, and consolidating our manufacturing footprint in gas and in assembly and test, as well as the closure of our facility in Costa Rica, which Grant will discuss further in his remarks. These moves are already yielding benefits and position us well for the future success across our operating segments. Turning to our strategic highlights by market, In the automotive market, we began sampling a fully integrated ultra-wideband programmable SOC. This automotive-qualified SOC addresses industry demand for highly accurate and reliable UWB technology in automotive applications such as secure keyless entry, child presence detection, kick sensors, and other precision short-range radar applications. Also during the quarter, We significantly expanded our automotive connectivity footprint in Japan with a Wi-Fi design win for the leading OEM, and we expect first shipments to commence in calendar 2026. In consumer markets, we ran production of our first power management IC design win for a wearable. This PMIC optimizes charging for a smartwatch launching later this year. We also supplied a global manufacturer of power tools and outdoor power equipment with first samples of our battery management SOC, leveraging embedded AI and machine learning algorithms to improve battery performance. In collaboration with Nordic Semiconductor, we announced the availability of an Alero-compliant smart lock reference design that combines BLE and Ultra Wideband. The Alero protocol is backed by industry leaders and is expected to accelerate adoption by securing communication between smart locks and personal devices like smartphones and wearables. The reference design combines a Corvo ultra-wideband SOC enabling critical functionality like precision location and secure transaction with Nordics multi-protocol SOC. Leveraging AI-trained algorithms, and superior radar functionality enabled by our ultra-wideband frontends, consumer applications, such as smart locks, can establish and differentiate end-user direction of travel and their intent to enhance security, safety, and efficiency. We continue to support the migration to Wi-Fi 7 with frontend WINS spanning multiple years in routers, access points, and extenders. We also saw an increase in demand for our ball filters across 2.4, 5, and 6 gigahertz for consumer and enterprise Wi-Fi markets. Lastly, we have begun development for Wi-Fi 8 front ends in alignment with market-leading chipset providers. Turning to defense and aerospace, we achieved a record quarter and record fiscal year in DNA revenue. This is the third consecutive year of year-over-year revenue growth. Corvo is a leading supplier of high-performance products and foundry services to the US government, defense primes, and other global defense and aerospace customers. The sales funnel for our defense and aerospace business currently exceeds $5 billion, and we see a path to scale this business both organically and inorganically to $1 billion annually. During the quarter, Northrop Grumman recognized Corvo as one of their top supplier partners at their Supplier Excellence Awards. The award recognizes Corvo for delivering US-based ball filter technologies that enhance national security for the US and our allies. We were also recognized by BAE Systems for being a critical supplier for airborne electronic warfare and commercial airborne SATCOM applications. Looking at our defense business broadly, Governments around the world are allocating a higher percentage of GDP to defense spending, and Corvo is critical to many of the highest priority programs. We view this as a multi-year tailwind to revenue and diversification. Also during the quarter, we launched next-generation silicon KU-band SATCOM beamformer ICs for phased array-based SATCOM user terminals. There is robust demand for high-speed, reliable connectivity around the globe, and the SATCOM terminal market is expected to see very strong growth over the next several years. In industrial and enterprise markets, customer demand continues to grow for Corvo's data center power management ICs. We are leveraging our performance, leadership, and client SSDs as we pivot to higher-value SSD opportunities in enterprise and AI data centers. We also began sampling our next generation motor drive SOC for industrial applications. The motor drive SOC integrates our third generation microcontroller with our analog front end. Corvo pioneered arm-based motor drive SOCs over a decade ago, and commercial availability of our newest offering is expected next year. To continue growing our power franchise and deliver added flexibility to customer designs, we expanded our power management portfolio to include a brushless DC motor driver that pairs with a variety of MCUs and is optimized for a broad range of applications, including power and garden pools, drones, EVs, and e-bikes. Also during the quarter, customers leveraged our ultra-wideband SOC to develop a range of monitoring, security, and radar-based sensing applications. Corvo's fully integrated ultra-low power SSE contains RF, processing, memory, and onboard software, and it's optimized to support a broad set of use cases. Radar-based applications include intrusion detection, gesture recognition, vital sign monitoring, and active monitoring and tracking of room occupancy. Turning to infrastructure, inventories in our base station business have stabilized, and our customer demand for our small signal portfolio has strengthened. We are also in the early stages of DOCSIS 4.0 deployments, where Corvo is a market leader. During the March quarter, we secured a new design win with a leading broadband supplier headquartered in Europe. In mobile, we expanded our opportunity at our largest customer beyond discrete components like tuners and integrated placements such as ultra-highband pads with the production ramp of our envelope tracking power management solution. Corvo played a critical role in supporting this customer's spring phone launch. Our ET solution is mated with their internal baseband, and this represents a key design win and a durable multi-year content opportunity. For our largest customer, we're doing what we said during our investor day, which is to invest more and win more. For their upcoming phone launch, We have been awarded design wins supporting greater than 10% year-over-year content growth, and we are addressing additional content in future programs over multiple years. At our second largest smartphone customer, Corvo's design wins this year span our product portfolio. We are broadly represented in flagship and mid-tier smartphone launches ramping now and in additional programs launching throughout the year. Design wins in 2025 include low band, mid-high band, and ultra-high band pads, as well as mid-high secondary transmit, antenna tuning, discrete filters, and Wi-Fi 7 fans. We also secured Wi-Fi 7 design wins in support of multiple Android smartphone OEMs, and we are engaged on Wi-Fi 8 development with mobile Wi-Fi chipset providers. For Android OEMs based in China, shipments during the quarter supported 5G smartphones across the mid-, premium-, and flagship tiers. Though we continue to ship mid-tier design wins customers awarded to Corvo prior to our pivot, all 5G product development in ACG is focused exclusively on premium and flagship tiers. In summary, we are seeing the positive effects of the actions taken to improve our performance. In HPA, a portion of the savings from our strategic exits of base station pans and silicon carbide is supporting growth in our defense and aerospace, as well as our power management franchise. In CSG, we're leveraging decades of leadership in RF solutions, exceptional customer relationships, and our core R&D to broaden and accelerate growth in automotive connectivity and SOCs for ultra-wideband and matter. In ACG, We've expanded our product portfolio for our largest customer with a successful ramp of ET power management, and we expect to build upon this with greater than 10% year-over-year content growth in our largest customer's 2025 fall launch. And with that, I'll turn the call over to Grant.