Skyworks Solutions, Inc.

Welcome to Skyworks Solutions fourth quarter fiscal year 2024 earnings call. This call is being recorded. At this time, I will turn the call over to Roger Gill, Vice President of Investor Relations for Skyworks. Mr. Gill, please go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to Skyworks fourth fiscal quarter 2024 conference call. With me today is Liam Griffin, our Chairman, Chief Executive Officer, and President and Chris Semisol, Chief Financial Officer for Skyworks. This call is being broadcast live over the web and can be accessed from the investor relations section of the company's website at skyworksinc.com. In addition, the company's prepared remarks will be made available on our website promptly after their conclusion during the call. 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. Additionally, 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 over to Liam.

Thanks, Raji, and welcome, everyone. Skyworks executed well during the fourth fiscal quarter of 2024. We posted revenue of $1.25 billion. We delivered earnings per share of $1.55 cents. and generated free cash flow of 393 million. Revenue, gross margin, and EPS met or exceeded the midpoint of our guidance. Our business model continues to deliver robust cash generation. For the second year in a row, annual free cash flow was well above 1.6 billion, providing a strong foundation to invest in our technology and product roadmaps to support future growth. In mobile, our revenue grew 21% sequentially and we expect further growth in the December quarter as customer orders and channel inventory have normalized and we continue to support seasonal product ramps. Based on our technology leadership position and in close collaboration with our mobile customers, We expand our reach, develop best-in-class high-performance connectivity solutions, and drive more integration with advanced packaging, reducing the footprint, and increasing energy efficiency. We believe that AI is poised to ignite a transformative smartphone upgrade cycle, propelling the demand for higher levels of RF complexity. As AI capabilities continue to advance, smartphones will evolve into more sophisticated and intelligent companions, demanding more powerful solutions to support their enhanced functionalities. We are in the early stages of this multi-year trend, and Skyworks is well positioned to capitalize on it. In broad markets, we have seen signs of stabilization and have grown modestly since the bottom in the December quarter of 2023. despite uneven demand dynamics and high customer inventory in certain segments. Long-term, we remain bullish on broad markets, given secular trends in edge IoT, automotive electrification, and advanced safety systems, as well as AI-enabled workloads, driving cloud and data center upgrades. In edge IoT, demand continues to improve as customers adopt Wi-Fi 6E and 7 systems, which carry higher dollar content due to increasing complexity and additional bands. We are in the early stages of a multi-year upgrade cycle with Wi-Fi 7 shipments now ramping. As we indicated at the beginning of the year, inventory levels in traditional data center and wireless infrastructure remain stubbornly elevated. which is delaying the recovery. We continue to undership natural demand. However, over the medium to long term, we remain bullish on our product roadmap and design wind funnel targeting AI data centers. Lastly, global demand remains muted in automotive and industrial markets as tier ones and OEMs work down excess inventory. Despite near-term headwinds, we continue to convert design wins into revenue across our connectivity, power isolation, and digital broadcast solutions for the connected car and EV markets. Turning to our quarterly business highlights, we secured 5G content for premium Android smartphones, including Google Pixel 9, Samsung Galaxy, Oppo One Plus, and several others. We expanded our Wi-Fi 7 Design One pipeline with Linksys, Charter, Netgear, CommScope, and TP-Link. For emerging IoT applications, we powered advanced audio solutions for wireless gaming and clinical-grade hearing aids. Lastly, we increased our design with Momentum and Automotive, including 5G front-end modules, infotainment, and digital isolators. In summary, the Skyworks team executed well despite a challenging macroeconomic climate. We intend to leverage our robust cash generation to make critical investments that drive long-term profitable growth while diversifying the overall business. With that, I will turn the call over to Chris for discussion of last quarter's performance and our outlook for Q1 of 2025.