Skyworks Solutions, Inc.

Good afternoon and welcome to Skyworks Solutions first quarter fiscal year 2020 earnings call. This call is being recorded. At this time, I will turn the call over to Mitch Hawes, investor relations for Skyworks. Mr. Hawes, please go ahead.

Thank you, Rob. Good afternoon, everyone, and welcome to Skyworks first fiscal quarter 2020 conference call. With me on the call today are Liam Griffin, our president and chief executive officer, and Chris Senesal, our chief financial officer. Before we begin, I would like to remind everyone that our discussion will include statements related to future results and expectations that are or may be considered forward-looking statements. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today. Additionally, the results and guidance we will discuss discussed include non-GAAP financial measures consistent with our past practice. Please refer to our press release within the investor relations section of our company website for a complete reconciliation to GAAP. With that, I'll turn the call over to Liam.

Thanks, Mitch, and welcome, everyone. Skyworks exceeded December quarter expectations driven by a global demand for high-performance connectivity solutions. As our results demonstrate, Skyworks is leveraging decades of experience scale, and vertical integration capabilities, along with our highly advanced Sky5 platform, accelerating the adoption of 5G technology across a broadening set of end markets and customers. Now, looking at the first quarter in more detail, we grew revenues by 8% sequentially to $896 million, produced gross margin of 50.1%, and operating margin of 35.2%. We posted earnings per share of $1.68, 3 cents ahead of our guidance and up 11% sequentially. And we generated exceptional operating cash flow, totaling $398 million in the quarter. At a higher level, Skyworks is ushering in an age of truly ubiquitous connectivity, enabling richer, smarter, and more convenient ways to live, work, play, and educate. Smartphones are leading this early transition with substantial volumes of 5G-enabled devices shipping this quarter. But more importantly, over time, we expect an incredible unit uptake outside of mobile where connected devices and things will be measured in tens of billions. And as we've noted in prior calls, 5G catalyzes new markets from IoT, autonomous transport, artificial intelligence, and high-definition streaming media. Currently in the U.S., there are approximately eight networked devices per person, a number that is expected to climb to 14 devices by 2022. That represents a 50% increase. And as a recent example, a higher percentage of U.S. households now subscribe to a streaming media service rather than traditional pay TV. Clearly, our world continues to rely upon seamless, high-speed connectivity, and this trend will only accelerate as 5G adoption grows and novel usage cases emerge. Recall, 5G is a technology, not a product, not a brand or a slogan. It offers gigabit speeds, ultra-low latency, and greatly enhanced network capacity, fueling a wide range of applications while becoming the universal connector. Skyworks is playing a pivotal role in the deployment of this standard. with a rich 20-year heritage in designing and delivering highly integrated and customized system solutions. We have demonstrated technology leadership across a vast set of critical product categories, resolving increasingly complex architectures and preparing our customers for the performance gains demanded in 5G. As we look ahead, the expanding product pipeline at Skyworks is clearly generating strong design wind momentum across both mobile and broad market segments. Specifically, in our mobile business, traction in 5G is gaining strength with our Sky5 platform powering launches at Oppo, Vivo, Xiaomi, and Samsung. Our baseband agnostic solutions offer interoperability and are being deployed across leading chipset suppliers, including MediaTek, Samsung, and Qualcomm. And with our expanding filter capabilities in TC Saw and Bulk Acoustic Wave, we help our customers navigate complex challenges. while extending our reach across a broader spectrum of 4G and 5G bands. Moving on to broad markets, at CES, Skyworks announced a unique set of 5G-enabled solutions, including massive MIMO IoT, a suite of connected home devices, and high-fidelity smart audio products. Specifically, we are powering rapidly emerging IoT applications with cellular-based platforms certified by KDDI NTT Docomo, SoftBank, and Verizon. We're driving growth with the launch of our Wi-Fi 6 platforms, expanding our customer reach with industry leaders including AT&T, Cisco, Netgear, Aris, and Aruba. We're advancing automotive content with SkyOne in our emerging V2X portfolio and supplying low-power, long-range IoT products at Ring and many others. In the infrastructure space, Skyworks is leveraging its capabilities in silicon germanium, SOI, gallium arsenide, bulk acoustic wave, and ceramic filters, while powering 5G MIMO and small cell base station design winds. In addition, we are gaining momentum in automotive, enabling new winds with leaders like Continental, Nissan, and Renault, along with industrial players including Honeywell, Bosch, and GE. As these highlights suggest, we remain focused on driving diversification across high-value segments and markets with more than 2,000 products supporting thousands of customers. So in summary, Skyworks has decades of connectivity experience across multiple technology transitions, uniquely positioning us to meet the performance demands of 5G. Our portfolio of highly integrated customized connectivity engines bolstered by the early strategic investments we have made, anticipating both the complexity and the immense opportunity across our end markets. And finally, a highly profitable and predictable business model that allows us to invest aggressively while providing consistent returns to our shareholders. With that, I will turn the call over to Chris for discussion of Q1 and our outlook for Q2.