Skyworks Solutions, Inc.

being recorded. At this time, I will turn the call over to Raji Gill, Vice President of Investor Relations and Corporate Development for Skyworks. Mr. Gill, please go ahead.

Thank you, Operator. Good afternoon, everyone, and welcome to Skyworks' second fiscal quarter 2025 conference call. With me today for our prepared remarks is Phil Brace, our Chief Executive Officer and President, and Chris Senesal, Chief Financial Officer for Skyworks. This call is being broadcast 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 the 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, today's discussion will 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 complete reconciliation to GAAP. With that, I'll turn the call over to Phil.

Thanks, Raji, and welcome, everyone. I'm excited to join you today for my first earnings call as CEO of Skyworks. Over the past few months, I've engaged with our customers, partners, employees, and shareholders, and I'm energized by the opportunities ahead. Since stepping into the role, I've spent time getting to know our teams across the company, and I've been incredibly impressed by the depth of talent and expertise throughout the organization. We have some of the smartest engineers I've ever worked with, and there's a real energy and passion for innovation that you can feel everywhere. There's also a competitive edge and a hunger to win. It's been exciting to jump in and be part of such a strong and capable team. SkyWork sits at the center of the wireless revolution, backed by a rich history in RF innovation. Our proprietary technologies power some of the most demanding connectivity platforms in the world, from 5G and Wi-Fi to automotive and edge IoT, and we're continuing to push the bounds of what's possible. Now let's review our fiscal Q2 results. Skyworks delivered solid performance driven by our diversified portfolio and disciplined execution. We posted revenue of $953 million, delivered earnings per share of $1.24, and generated free cash flow of $371 million. Revenue, gross margin, and EPS exceeded the midpoint of our guidance. We returned a record $600 million to shareholders through share repurchases and dividend payments, the highest amount ever. This underscores our confidence in a long-term outlook as well as our commitment to delivering value to shareholders. Let's provide some additional color on the business. In mobile, we experienced typical seasonal patterns during the March quarter while executing on multiple new product launches with our leading mobile customers. Smartphones are evolving with AI, driving more uplink-intensive workloads like real-time voice processing and enhanced imaging. Over time, this trend should drive higher transmit power, better efficiency, and expanded uplink MIMO, areas where Skyworks is strongly positioned. In our diversified businesses, we've seen a steady recovery underway for more than a year, with five consecutive quarters of sequential revenue growth and two quarters of positive year-over-year comparisons. This improvement is being driven by strength in automotive, edge IoT, and Wi-Fi 7 adoption, across consumer and enterprise devices. Demand signals are firming, bookings are improving, and in most segments we're seeing inventory normalization across the distribution channel. In Edge IoT, Wi-Fi 7 adoption is accelerating to meet real-time demands like high-resolution video and smart sensors. Its advanced capabilities are driving greater RF content per system, creating strong momentum for our connectivity portfolio. In addition, we've already begun early development on Wi-Fi 8 to solidify our technology leadership in the next generation wireless connectivity. In automotive, the move to software-defined vehicles is driving the need for robust wireless connectivity. As these vehicles rely on over-the-air updates, real-time sensor data processing, and interconnectivity between vehicle systems, the RF content should also scale up. Lastly, As AI drives more complex data center workloads, the need for tighter integration between timing devices and processors is growing. While still early, we see a long-term opportunity to capitalize on this trend with our precision timing portfolio. Overall, we're encouraged by the momentum in our diversified businesses. Our position in next-generation product cycles, from automotive connectivity to edge IoT to timing, reinforces our long-term trajectory. Turning to our quarterly business highlights. We secured design wins across 5G premium Android smartphones and for in-vehicle infotainment systems with major OEMs. We also expanded Wi-Fi 7 across enterprise access points, routers, and home mesh networks. Before I turn the call over to Chris for a discussion of last quarter's performance and outlook for Q3 of fiscal 25, I would like to highlight some changes to the executive leadership team. First, Mark Denginger will be succeeding Chris as the CFO of Skyworks, effective June 2, 2025. Mark brings significant CFO level and strategic experience across the technology sector. His deep expertise and proven track record make him a strong addition to the Skyworks leadership team. Chris will be stepping down to pursue another professional opportunity. On behalf of the entire board and everyone at Skyworks, I would like to thank him for his valuable contributions and wish him success in his new endeavors. Second, Todd Lipinski will be succeeding Carlos Borre as Skyworks Senior Vice President, Sales and Marketing, effective June 2nd, 2025. Todd Brent's experience driving global revenue growth and building high-performance teams in the semiconductor and technology sectors. Carlos will be shifting to an advisory role to help ensure a smooth transition. I'm looking forward to partnering with Mark and Todd in leveraging their strong leadership capabilities as we execute on our long-term strategic initiatives.