Skyworks Solutions, Inc.

Good afternoon and welcome to Skyworks Solutions' fourth quarter fiscal year 2022 earnings call. This call is being recorded. At this time, I'd like to turn the call over to Mitch Hawes, Investor Relations for Skyworks. Mr. Hawes, please go ahead.

Thank you, David. Good afternoon, everyone, and welcome to Skyworks' fourth fiscal quarter and year-end 2022 conference call. With me today are Liam Griffin, our Chairman, Chief Executive Officer and President, and Chris Senecel, 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 reviewing the fourth fiscal quarter results, I want to highlight the significant accomplishments that underpinned another year of record financial performance for Skyworks. Specifically, For fiscal 2022, we generated a record $5.5 billion in revenue, a 7% year-over-year increase. We achieved a record $2 billion in revenue for our broad markets, up 37% year-over-year, representing 36% of total revenue. We drove earnings per share to a record of $11.24, and we returned $1.3 billion to shareholders, through dividends and share repurchases. Now turning to the September quarter, our diversified portfolio and expanding set of customers drove record Q4 performance. We delivered revenue of $1.4 billion, a Q4 record, and above consensus estimates. We achieved gross margin of 51.3% and operating margin of 37.6%. and we posted earnings per share of $3.02, exceeding our guidance by 12 cents. In addition to the record financial results, we continued building a foundation for long-term growth with strong operational execution and design win momentum. In mobile, we delivered integrated platforms to the leading 5G smartphone OEMs, including flagship and mid-tier launches at Google, Samsung, and others. In IoT, we continue to gain new customers and extend content. We partnered with Vodafone to launch the UK's first Wi-Fi 6E platform. We shipped into tri-band platforms for frontier communications. And we launched connectivity solutions with Amazon, supporting their Wi-Fi 6 power over Ethernet access points. Across the infrastructure and industrial markets, we provided programmable timing solutions for a leading optical transport OEM, simplifying 400G capacity in data centers and telco networks. We captured new infrastructure wins at Samsung, enabling service providers to expand mid-band capacity and coverage. And we delivered comprehensive timing technologies delivered to a leading O-RAN small cell provider. In automotive, we achieved another record of quarterly results, with revenue strength highlighting our connectivity and power isolation portfolio. We secured digital radio platforms with a global EV leader, as well as a top European luxury brand. We developed onboard charging solutions for a leading Korean OEM, and we received a key supplier award from Schneider Electric, highlighting the capabilities of our power isolation portfolio. Moving forward, mobility, the shift to the cloud, and the electrification of automobiles are all key catalysts driving demand for our unique solutions. The value and utility of mobile data continues to grow. with estimates of 750 million mobile subscribers being added by 2027. In parallel, global cloud revenues are expected to reach $1 trillion by 2028, representing an annual growth rate of 16%. And by 2030, an estimated 96% of new vehicles will feature onboard connectivity, and nearly 25% of those vehicles will be electric. Each of these trends require complex connectivity engines, underpinning the need for high speed, ultra reliable, low latency performance. Skyworks is uniquely positioned to craft faster, smaller, and more efficient form factors, seamlessly integrating and customizing for an expanding set of customers and markets and applications. As these opportunities emerge, Skyworks is poised to win. with a talented team that has executed extraordinarily well in the face of macroeconomic and geopolitical headwinds. With our market-leading profitability and scale, we are leveraging strategic technologies from high-performance filters to custom gallium arsenide and advanced packaging, while elevating performance for a coveted set of diverse customers.