Skyworks Solutions, Inc.

Good afternoon and welcome to Skyworks Solutions' fourth quarter and fiscal year 2021 earnings call. This call is being recorded. At this time, I will turn the call over to Mitch Haas, Investor Relations for Skyworks. Mr. Haas, please go ahead.

Thank you, Rachel. Good afternoon, everyone, and welcome to Skyworks' fourth fiscal quarter and year-end 2021 conference call. With me today are Liam Griffin, our Chairman, CEO, and President, and Chris Senesal, our Chief Financial Officer. Before we begin, I would like to remind everyone that our discussion will include statements relating 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. The results and guidance we will discuss 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 to Liam.

Thanks, Mitch, and welcome, everyone. Before I touch on the fourth fiscal quarter results, I want to highlight the significant accomplishments that underpinned a record-breaking year for Skyworks. Total revenue grew to $5.1 billion, 52% ahead of last year, representing an increase of over $1.7 billion. We increased earnings per share to $10.50, up 71%. Operating cash flow expanded to $1.8 billion, an increase of 47%. And we completed a strategic and compelling acquisition, immediately diversifying our product portfolio and expanding our market reach. Finally, with the investments we've made, Skyworks navigated a complex supply chain environment, leveraging world-class manufacturing capabilities across strategic technologies. Now turning to Q4, where Skyworks delivered record performance. Revenues in our mobile and broad markets portfolios both grew at double-digit rates sequentially and year-over-year. as we capitalized on broad-based momentum fueled by demand for our unique connectivity solutions. Specifically, we delivered revenue of $1.31 billion, achieved gross margin of 51% and operating margin of 37.2%. We posted earnings per share of $2.62, exceeding our guidance by 9 cents, and generated strong operating cash flow. totaling $398 million in the quarter. The complexity inherent in 5G and the demand for highly integrated solutions were major catalysts in driving our performance. The momentum in global 5G carrier subscription is building with estimates of 580 million users today, expanding to more than 3 billion users by the end of 2025. As expected, smartphones are leading the early transition But new innovative use cases are emerging, from automotive and industrial IoT to enhanced virtual reality, gaming, and telemedicine. Importantly, the power of 5G is increasingly being harnessed to drive sustainability efforts across industries worldwide, providing the wireless backbone to AI-powered ecosystems, combining measurement, analysis, and optimization. For example, a major US manufacturer is combining wireless sensor-enabled cameras with artificial intelligence to reduce chemical usage by 90%. And a European startup is deploying wireless climate sensors in agricultural applications to drive crop yield up to three times. Looking ahead, 5G has the capacity to manage diverse connections across industries, as it becomes the universal connector from the home to the office to the factory floor and to the farm. Skyworks is uniquely positioned and capitalized on this transformation with decades of connectivity leadership. The acceleration of 5G powered a broad set of use cases in Q4, with design wins encompassing the newest, most innovative smartphones and IoT devices, as well as gains in wireless infrastructure. Specifically in mobile, we accelerated the reach of our Sky5 portfolio, powering the latest launches at leading Tier 1 smartphone OEMs, supporting more than 20 platforms. In addition, we shipped Sky5 solutions across Samsung Galaxy's tablet portfolio. And in IoT, we continue to gain new customers and extend content. We delivered 5G CP connectivity solutions to Nokia. We partnered with Swisscom. to launch their Wi-Fi 6 GPON residential gateway. We ramped Wi-Fi 6 and 6E platforms at Netgear and Cisco, launched connectivity and home security devices with Amazon, Ring, and Comcast, and captured design with Edgarment, supporting mobile fitness applications. In automotive, we supported autonomous driving systems with a market-leading robo-taxi platform. and enabled advanced charge control unit systems for a tier one European automotive OEM. Across the infrastructure markets, we provided power isolation solutions to a strategic manufacturer of PV, including residential solar and energy storage systems. And we secured multiple design wins in next generation MIMO and small cell base station installations. Moving ahead, we see a multi-year secular technology evolution with our aperture widening from smartphones to industrial, automotive, and an expansive set of IoT devices. Skyworks is fueling this dramatic technological shift with our unique capabilities, integrating not only 5G, but increasingly with our other critical connectivity protocols, including high-performance Wi-Fi, Bluetooth, and precision GPS. As these opportunities emerge, Skyworks is positioned to win. With the breadth and depth of our customer relationships established over 20 years, our experience across multiple technology transitions, and a dedicated and talented workforce that executed extraordinarily well during fiscal 2021. With that, I will turn the call over to Chris.