Qorvo, Inc.

Good day and welcome to the Corvo, Inc. 3rd Quarter 2026 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 1 on a touch-tone sound. To withdraw your question, please press star then 2. Please note that 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 2026 Third 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. Lastly, for detailed information regarding the Skyworks and Corvo combination announced on October 28th, I encourage you to review the press release, investor presentation, Corvo merger proxy, and related materials available on our investor relations website at ir.corvo.com under events and presentations. Today's call will focus on our fiscal third quarter results as well as our outlook for the March quarter, and we will not be commenting on the proposed business combination. Joining us today are Bob Ruggerworth, President and CEO, Grant Brown, CFO, Dave Fullwood, Senior Vice President of Sales and Marketing, and 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. In our fiscal third quarter, Corvo delivered solid financial performance with notable strategic achievements across each operating segment. We continue to pursue our long-term growth strategy while executing on restructuring actions to optimize profitability and reduce capital intensity. In ACG, we are supporting the world's leading smartphone OEMs with best-in-class products for their highest-value flagship and premium-tier devices. In CSG, we enjoy broad representation in Wi-Fi applications, and we are expanding our reach in automotive technology. enterprise, industrial, and other customer segments with our ultra wideband technology. In HPA, we are growing across a range of customer applications, such as defense and aerospace, satellite communications, power, and infrastructure. Within our factory network, we closed our Costa Rica facility in December, a few months ahead of schedule, and have transitioned to external partners. The transfer of soft filter production from Greensboro, North Carolina, to Richardson, Texas, remains on track. With these actions, we will be able to operate more efficiently with reduced capital intensity, and we will continue to differentiate our products with onshore manufacturing of gas, GAN, BAW, SAW, and advanced multi-chip modules. Turning to quarterly highlights, in ACG, December quarterly revenue declined sequentially in line with the view we provided last quarter and consistent with typical seasonality. At our largest customer, content gains on their ramping platform help to support double-digit revenue growth compared to last December. We supply a diverse portfolio of high-performance discrete tuners, ETP mix, and integrated modules to our largest customer, not all of which have been awarded on the upcoming platforms. However, at this time for the upcoming fiscal year, we expect revenue at our largest customer to be approximately flat. For our ETP mix, Increasing internal modem adoption provides a multi-year structural tailwind as platforms transition away from third-party modems. With regard to integrated modules, on the ultra-high-band pad, we received lower share in the upcoming phone models than last year, and we expect our ultra-high-band pad revenue to decline year over year. This is a placement where we have demonstrated success across multiple generations. We remain confident in our highly differentiated technology and our ability to compete effectively over subsequent generations. In our largest customer's cellular-enabled iPads, we were awarded the high-band pad, representing a product and technology milestone and new content for Corvo on that platform. We are extremely pleased to have secured this placement. The win gives us the opportunity to demonstrate capability and execute at scale on that platform, consistent with our long-term investment strategy. Turning to Android, we remain a leading supplier in premium and flagship smartphones, while we continue to reduce our exposure to low-margin master smartphones. In the December quarter, total Android revenue declined sequentially in the low double digits. In the March quarter, we expect a greater than seasonal decline in Android revenue. For fiscal 27, we expect Android revenue to decline by approximately $300 million in versus fiscal 26, driven primarily by our actions to reduce exposure to lower margin segments, and secondarily by the impact of memory pricing and availability on master Android build plans. CoolVote enjoys broad participation across smartphone OEMs, and we are not seeing signs of memory pricing or memory availability impacting the flagship and premium tiers. With our largest customer expected to be approximately flat, ACG revenue is expected to decline in physical 27 by the reduction in Android revenue. This is an intentional resizing of our Android business. We are reducing exposure to lower margin segments while continuing to serve Android's high value and premium and flagship tiers. We expect the improvement in product mix to support a higher gross margin in ACG. Additionally, With ongoing OPEX reduction efforts, we expect to deliver expanding operating margins in ACG on the healthier revenue mix. In CSG, we're on track with an automotive ultra-wideband program with a leading automotive Tier 1. Regarding this platform, we are very pleased to announce we did receive our first production orders during the December quarter. This program will span multiple years and support multiple OEMs. We continue to see expansion of our engagements across the automotive customer base. Use cases for Corvo's automotive ultra-wideband technology includes secure access, digital key, child presence detection, and short-range radar sensing. We are supplying both our ultra-wideband and Wi-Fi 7 solutions in collaboration with multiple Tier 1 manufacturers of network access points. We're seeing strong customer demand. and initial deployments include hospitals, factories, and other enterprises requiring ultra-precision indoor navigation and location awareness. Our Wi-Fi portfolio is broadly represented in flagship smartphones, fiber gateways, mesh networks, client devices, and SATCOM ground terminals, and we continue to expand our Wi-Fi, FEM, and filter portfolio to enable higher bandwidth, lower latency, interconnected networks. We delivered First, Wi-Fi 8 samples during the December quarter and customer engagement in Wi-Fi 8 is increasing. Regarding the CSG restructuring discussed last quarter, these actions remain on track. During the quarter, we successfully divested our MEMS-based sensing solutions business. While this represents a headwind to year-over-year CSG growth next fiscal year, it is one of multiple initiatives we are undertaking to improve CSG's profitability. Turning to HPA, we continue to see multi-year tailwinds of DNA, data center power, and infrastructure markets. In DNA, the passage of the fiscal 26 NDAA includes top priorities such as Golden Dome, the F-47 fighter, and the Navy's next-generation fighters, warships, and drones. Corvo is a beneficiary of new platforms, upgrade cycles, RF content growth, and increases in defense spending. As an example, Golden Dome is a multilayer defense system that requires significant RF content. For the full fiscal year 27, sales in DNA markets are expected to total approximately $500 million. In power management, our strategic emphasis on PMICs for enterprise class SSDs has been met with continued data center growth where customer demand has been very strong. During the quarter, we taped out our first chip for our next generation enterprise SSP platform. Other power opportunities for Corvo includes AESA radars, drones, robotics, wearables, and smartphones. There's strong interest globally in Corvo's AESA solutions, combining our friends, beamforming ICs, power management, and power control. In infrastructure markets, there are increased content requirements and DOCSIS 4.0 systems that align well with our amplifier and control portfolios. Corvo is a leading supplier of broadband amplifiers for DOCSIS 4.0, and we are well positioned with all major suppliers. We're also a market leader in small signal receive and transmit components used across the RF chain of 5G radio access networks. While these products have historically been deployed in terrestrial 5G infrastructure, we are increasingly seeing the same RF building blocks adopted in adjacent applications, such as drones and low earth orbit satellite communications, including direct to cell satellite architectures. We are sharply focused on growing our highest performing businesses, and we are divesting or exiting businesses that underperform. In fiscal 27, we forecast a mid-single-digit decline in full-year revenue for the company. As ACG declines and becomes more profitable, CSG is approximately flat, and HPA continues its double-digit growth. As we move through fiscal 27, we expect our defense and aerospace business will be larger than our Android business. That's a meaningful shift in the portfolio that reflects both the strategic resizing of our Android business and continued growth in HPA. This increasingly favorable mix positions us to deliver full-year FY27 gross margins above 50% and EPS approaching $7 per share. These outcomes reflect continued operating expense discipline, a structurally improved portfolio mix, and our sustained commitment to innovation and operations excellence. And with that, I'll turn it over to Grant.