Hello, and welcome to the third quarter 2024 earnings conference call for Qorvo. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw from the question queue, you may press star, then two. I would now like to hand the call over to Doug Delieto, Vice President, Investor Relations. Please go ahead. Hello, everybody, and welcome to Qorvo's fiscal 2024 third quarter earnings conference call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statement contained in the earnings release published today, as well as the risk factors associated with our business and our annual report on Form 10-K, filed with the SEC, because these risk factors may affect our operations and financial results. In today's press release and on today's call, we provide both GAAP and non-GAAP financial results. We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain non-cash expenses or other items that may obscure trends in our underlying performance. During our call, our comments and comparisons to income statement items will be based primarily on non-GAAP results. For complete reconciliation of GAAP to non-GAAP financial measures, please refer to our earnings release issued earlier today, available on our investor relations website at ir.qorvo.com under financial releases. Joining us today are B ob Bruggeworth, President and CEO, Grant Brown, CFO, Dave Fullwood, Senior Vice President of Sales and Marketing, and other members of Qorvo's management team. With that, I'll turn the call over to Bob. Thanks, Doug, and welcome everyone to Qorvo's fiscal 2024 third quarter call. I would like to start by complimenting the team for delivering another solid quarter. The demand environment in the December quarter improved versus our November outlook, and this is reflected in our strong performance. Looking at our business from a high level, Qorvo is capitalizing on secular trends, including connectivity, sustainability, and electrification. These trends are playing out over many years, and they are fueling the transition to new technologies and new standards like 5G Advanced, Wi-Fi 7, Matter, DOCSIS 4.0, and others. As a result, customers across our businesses are increasingly seeking higher levels of efficiency and performance, where performance is measured in power out, talk time, or time between charges. Qorvo is central to these transitions, and we are critical to enabling these capabilities. We leverage unique competitive strengths to supply our customers best-in-class solutions that enhance efficiency, increase throughput, and reduce form factor. We are a preferred supplier with leading products and a robust technology roadmap, and we are positioned favorably for broad-based growth across our three operating segments. Now, let's turn to our strategic highlights. Beginning with HPA, customer demand in end markets, excluding base station, is improving and supports our view for a return to year-over-year growth in HPA in the March quarter. In Defense and A erospace, we won an X-band radar design with a major DoD contractor, and we received new standard product orders in support of several large Domestic and international ground-based radar systems. We also enjoy increasing demand for our solid-state PA products and for our switched filter bank products across multiple customers and programs. There are multiyear secular trends driving our D&A business, including the trend of one to many and the transition of mechanical systems to active electronic scanning systems, both of which increase requirements for more advanced systems-level RF solutions. Earlier today, we announced the signing of a definitive agreement to acquire Boston-based Anokiwave. Anokiwave is a leading supplier of high-performance integrated silicon ICs for intelligent, active array antennas. We are excited to have the Anokiwave team join Qorvo and expand our offerings for Defense and Aerospace, SATCOM, and 5G applications. In power management, we are extending our reach in markets where Qorvo enjoys a strong presence, such as wearables and other consumer products. Our most recent award is a PMIC chipset with multiple placements for a wearable and charger at a leading Android OEM. Complementing this, we've begun to see a rebound in SSDs for PC and enterprise markets. We are continuing to expand upon our strong position with an additional power management win in support of a leading manufacturer of laptops. Lastly, our recently launched QSPICE circuit simulation software was honored as the design tool and development software product of the year at the 2023 Elektra Awards. In power devices, we are shipping into power supplies for blockchain applications, and design activity in data center continues to be strong. We are also seeing increased activity in circuit protection, where our JFET technology brings unique advantages. In automotive, design activity remains strong, not only for onboard chargers, but also for other emerging applications in electric vehicles. In infrastructure, Qorvo is leading the DOCSIS 4.0 upgrade cycle. We commenced volume shipments of our newest DOCSIS 4.0 hybrid power doubler in support of multiple cable OEMs. In the cellular base station market, inventories continue to be consumed, and we expect demand conditions to remain soft through calendar year 2024. Turning to CSG, customer activity for ultra-wideband is increasing in secure access automotive applications. We are also seeing new applications for ultra-wideband in automotive, including presence detection and other radar-based sensors. This momentum builds upon our recent wins in ultra-wideband, including an in-vehicle car access platform and a flagship Android smartphone launch. As we demonstrated at CES, we are actively involved in a wide array of enterprise and connected home solutions, leveraging Matter and ultra-wideband for applications such as door locks, smart lighting, and indoor navigation. In force sensing touch sensors, we received first production orders for an automotive supplier in support of a leading Korea-based automotive OEM. We are seeing increasing traction across a growing set of customers and markets, including automotive, laptop trackpads, wearables, and smart health. In Wi-Fi, design activity and collaboration remains strong across reference designs, customers, and operators. Within the Android ecosystem, the demand environment for mobile Wi-Fis is improving with the normalization of Android channel inventories. In access points, Wi-Fi 6 volumes continue to grow with service provider rollouts in India. In Wi-Fi 7, Qorvo secured design wins across operator, retail, enterprise, and mobile segments. In ACG, we commenced shipments in support of the spring 2024 flagship smartphone launch by the leading Android smartphone OEM. On our last earnings call, we highlighted our content gains in the flagship tier. In addition to the ultra-wideband, Qorvo content this year includes the low band, mid-high band, ultra-high band, secondary transmit and receive, tuning, and Wi-Fi. We are ramping up now and building upon our momentum with a broad set of design wins in this customer's high-volume mass market portfolio. Android mass-market smartphones are set to transition to 5G through the decade, and our collaboration with Android customers on their long-term product roadmaps positions Qorvo to be a primary beneficiary as these new 5G units enter our SAM. To that end, Qorvo was recognized by the top four China-based Android 5G OEMs with 2023 awards for innovation, quality, supply, technology, and strategic partnership. To simplify 5G adoption and sustain our position as the leading global strategic supplier to Android OEMs, we continue to launch new architectures and new products that enhance performance and reduce form factors. During the quarter, we expanded customer sampling of our newly launched main path, LMH PAD. This highly integrated solution is optimized for mass-market smartphones. It combines, in a single placement, the low, mid, and high-band main path content traditionally offered in two placements. This reduces surface area by 40%, simplifies design, and accelerates time to market. In addition to developing highly integrated solutions with increasing levels of functional density, we are also advancing technology in our high-performance discrete portfolio, including our BAW filters. During the quarter, we received purchase orders for discrete BAW filters using our recently released next-generation BAW technology. During the quarter, we continued to bring channel inventories down, and now our shipments are more closely aligned with end-market demand. We are also seeing incremental improvement in end-market demand in the Android ecosystem. For calendar 2024, we expect total smartphone units to grow in low single digits, with 5G units growing over 10%. To compete and win, we collaborate with customers on their three-year product roadmaps, and we supply them industry-leading solutions. We enjoy a position as the preferred strategic RF supplier for all the customers we serve in the Android space, and we are very well positioned to benefit as their portfolios continue to transition to 5G. In summary, demand for Qorvo's products has improved, primarily due to our proactive efforts to align channel inventories with end-market demand and content gains on key customer programs. We are delivering customers industry-leading products and technologies, and design activity remains robust. This positions Qorvo favorably for continued strong content and durable long-term growth. And with that, I'll hand the call over to Grant. Thanks, Bob, and good afternoon, everyone. Revenue for the quarter was $1,074,000,000. Non-GAAP gross margin was 43.8%, and non-GAAP diluted EPS was $2.10, all exceeding the midpoint of our guidance range. Revenue increased approximately 44% year-over-year and continued to benefit from significant content gains at our largest customer. As communicated last quarter, ACG achieved year-over-year growth in September, CSG achieved year-over-year growth during the September quarter, and we expect HPA to achieve strong year-over-year growth in the March quarter. Regarding gross margin, a larger portion of December revenue was manufactured internally during periods of lower utilization, which led to higher unit costs compared to the September quarter. Factory utilization is improving, and the impact from underutilization and factory-related variances continues to moderate. Non-GAAP operating expenses in the quarter were $234 million. We continue to invest in new product development as it is a critical catalyst for driving multi-year growth across all three business segments. Alongside these growth-oriented investments, we continue to launch productivity initiatives across the enterprise. These initiatives, also spanning multiple years, are designed to support future growth, augment productivity, and enhance profitability. In total, non-GAAP operating income in the quarter was $237 million, or 22% of sales. Non-GAAP net income was $206 million, representing diluted earnings per share of $2.10. Turning to the cash flow statement, we're pleased to report that during the December quarter, we generated a free cash flow of $467 million, setting a new quarterly record for Qorvo. Our capital expenditures for the period were $26 million, and we repurchased approximately $100 million of stock at $94 per share. The rate and pace of our share repurchases consider several factors, including our long-term financial outlook, free cash flow, debt maturities, alternative uses of cash, and other relevant strategic considerations. This approach ensures that our capital allocation strategy balances future growth with the return of capital and aligns with our underlying goal of delivering long-term shareholder value. On the balance sheet, as of quarter end, we had approximately $1.6 billion of long-term debt outstanding and over $1 billion of cash and equivalents. Regarding balance sheet presentation, the 2024 notes have been reclassified as current and will mature in December. Subject to changes in the interest rate environment and other factors, we currently expect to retire these notes later this year. In line with the expectations shared during our previous earnings call, we successfully reduced our net inventory balance over the period. We ended the quarter with a net inventory balance of $727 million, a sequential decrease of $113 million. In terms of days of inventory, this represents a decrease from 138 days in the September quarter to 118 days in the December quarter. This reduction reflects our commitment to efficient inventory management, and we expect continued improvement in the March quarter. Turning to the current quarter outlook, we expect revenue of approximately $925 million ± $25 million, non-GAAP gross margin of approximately 42%, and non-GAAP diluted EPS of $1.20 at the midpoint of the revenue range. Relative to December, we expect March revenue to reflect a larger percentage of higher cost inventories previously manufactured internally during periods of lower utilization. As these higher costs previously manufactured inventories sell through, it paves the way for future gross margins that reflect increasing levels of utilization. We currently expect to have sold through most of these higher cost inventories and associated costs by the second half of this calendar year. We project non-GAAP operating expenses in the March quarter will be approximately $245 million, with variability related to labor-related expenses and the timing of program development spend. Below the operating income line, non-operating expense is expected to be approximately $10 million, reflecting interest paid on our fixed rate debt, offset by interest income earned on our cash balances, FX gains or losses, along with other items. Our non-GAAP tax rate for fiscal 2024 is expected to be within a range of 11%-13%. In December, we announced a new partnership with Luxshare, related to the divestiture of our Beijing and Dezhou assembly and test facilities. Upon the closing of this transaction, Luxshare will acquire each facility's operations and assets, which includes the property, plant, and equipment, as well as the existing workforce, to enable the seamless continuity of operations. Qorvo will continue to maintain our sales, product and test engineering, and customer support employees in China. We believe that adding Luxshare as a strategic partner will strengthen our position to serve our customers globally. As it relates to our manufacturing strategy, this is a further step in our ongoing efforts to reduce capital intensity. This move aligns with previous actions, including the closure of our Florida manufacturing operations and the recent sale of our Farmers Branch facility in Texas. We are efficiently managing a complex supply chain, including our internal factories, which support all three operating segments and will remain an ongoing focus. We will leverage internal manufacturing where it uniquely differentiates our products and outsource production where we maintain a strong network of foundry and OSAT partners. Qorvo is well positioned to capitalize on multiple growth drivers within each of our three operating segments. We are confident that our investments in our technology portfolio, product development, and advanced manufacturing will broaden our addressable market, diversify revenue, expand margin, and accelerate growth. At this time, please open the line for questions. Thank you. Certainly. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. Please limit yourself to one question and one follow-up. Today's first question comes from Toshiya Hari with Goldman Sachs. Please go ahead. Hi, thank you so much for taking the question. I had two questions. The first one on content growth for this year. You know, Bob, obviously, you guys did a really good job last year in gaining content, not only at your largest customer, but across the board. I know it's a little bit early, but curious how you're thinking about, you know, your potential to grow content this year, again, at the largest customer, as well as on the Android side. You gave great color on your Korea-based customer, but curious how you're thinking about, you know, the year across the board. Thank you. Toshiya, thanks, thanks for your question, and it does seem there's some reports last night have created some confusion about our business, so I think it's best I go ahead and address it now that you gave me the opportunity with your first question. You know, based on our known design wins and engagements with our largest customer, one of our competitors, I think it's been named Qualcomm, we don't believe they're competing on any of the sockets we're engaged in. They did not win any sockets that we've been in, nor do we see them challenging our share in any of the sockets we're competing for or investing in at our largest customer. In fact, you can ask them. We're quite confident they would tell you the same thing. Now, specifically to ultra-high band, we've made it clear on past calls it was a multi-source socket, and we were the only company that consistently won over the last three years. You know, we've never had a 100% share of the ultra-high band. In fact, you can look at teardowns of the latest iPhone and see Qorvo won the ultra-high band in the Pro and Pro Max models. You know, I know I've said, and many of our team said consistently, that this is a performance-driven customer, and we're winning based on multi-year engagements, our technology investments, and clearly, our product performance. And we expect to grow with our largest customer in FY 2025 and grow even more in FY 2026. I wish I could give you more specifics, but I think that answers your question, Toshiya. Yeah, I appreciate the color. Thanks, Bob. And then as my follow-up, one for Grant, on the gross margin side. I think three months ago, you had shared the underutilization charge of, I think it was 550 basis points for the September quarter. Curious, what the headwind was in December, what's embedded in your March quarter guidance? And more importantly, as you progress through the year, how should we think about the trajectory of gross margins? And sorry, one last one. The Luxshare deal, how should we think about that, potentially benefiting gross margins, medium to long term? Thank you. Sure, Toshiya. Let me try and take all those in order. So the first one, in terms of the impact from the underutilization charges, you know, it's about half, maybe a little less than half of what we had previously reported. And, you know, as I pointed out, we'll be working through those higher-cost inventories over the balance of this year and should clear them in the second half. So that should give you a sense of the timing there. You know, there's a lot of moving factors that influence gross margin, in addition to underutilization. So, you know, the timing of where something was built, when it was built, and then in any given period when it's sold. You know, in the September quarter, for example, we had a relatively high percentage of product mix that was manufactured at external silicon foundries and then processed at third-party OSATs versus a higher percentage in the December and what we anticipate in March to be manufactured internally during prior periods of lower utilization. So there's this lag effect I described last quarter. The underutilization in past periods obviously converted the products sold in future periods. But beyond March, no change to our guidance of returning to 50%+ gross margin over time. We have line of sight to get there once we sell through the high-cost inventories. As I mentioned, it's encouraging on the utilization front as it's improving, and we'll continue to execute on further productivity opportunities as well. I commented in my prepared remarks that we expect to have worked through all of that, as I mentioned, in the second half, and that'll clear the path for margins that reflect higher levels of factory utilization going forward. Thank you. The next question comes from Ruben Roy with Stifel. Please go ahead. Thank you. Bob, first of all, on the unit assumptions that you have for the year, low single digits, I think you said for the, you know, total, you know, smartphone market and then 5G at 10% or so, how are you thinking about sort of non-China Android and China Android as you think about your mix going forward? It would seem like you're doing quite well, obviously, in Korea and elsewhere. Just wondering, you know, kind of where you think things shake out with China Android as you progress through calendar 2024. Hey, thanks for the question. This is Dave. I'll take that one. So, as Bob mentioned, as we said before, we enjoy a really strong position as the preferred strategic supplier for all our Android customers, we engage with them on multiple years out on their product roadmaps, and it's really a special seat at the table that we have as their leading global supplier. They care deeply about our products, our technology, but also the quality and the supply assurance that we deliver. And we've been that trusted supplier for all of our Android customers for many, many years. And, you know, the one thing we've learned is you have to be there for them over the long term. You can't just come in and out of a market and expect to gain any meaningful share. So at our China customers, as Bob mentioned, we received top supplier awards for innovation, quality, supply, strategic partnership for 2023, and that includes awards from Honor, OPPO, Xiaomi, and Vivo. We're also proud of our position in Android outside of China as well. Bob highlighted the great content in the new Samsung Galaxy S24. For multiple years now, we provide a full lineup of ultra-high band, mid-high band, secondary transmit path, low-band tuning and Wi-Fi, and this year we added ultra-wideband. We're also excited to receive initial purchase orders for our next generation mid-high band with integrated diversity receive. We announced that product a few quarters ago, and we have our first purchase orders for a U.S.-based Android customer. And this part brings a new level of integration for size and performance, leveraging our latest filter technology for BAW and SAW. And we've also got a lot of other great content on that phone that we're excited to tell you about in the future as well. We believe we're best positioned to grow with our Android customers as their products continue to transition to 5G over the coming years, and we've got a lot of great new opportunities and content we can address with ultra-wideband, touch sensors, and power management. So we feel really good about our position, really, across the entire Android ecosystem. That's great. Thank you for all that detail. Quick follow-up for Grant on the Luxshare commentary. How are you thinking, Grant, about sort of longer-term CapEx? You know, clearly this is part of, you know, sort of the longer-term strategy around CapEx, but if you could, you know, speak to that. You know, I know the deal's gonna close first half of 2024, so maybe a little bit early, but, you know, has anything changed, I guess, with the strategy around CapEx and cash flow, you know, assumptions that you have as you think about, you know, sort of the next 12-18 months? Sure. The cash flow question, I think will, you know, as we look forward, as I've always said, we'll follow the P&L. So, you know, largely that'll be dictated by our, by the growth that Bob mentioned in fiscal 2025 and 2026. In terms of our CapEx as a percentage of the top line, we do expect it to continue in that, you know, 5% or less category. If there are capacity additions made, it will be in response to demand and the capacity required to serve it. As it relates to the sale of Beijing and Dezhou, you know, we're really excited to partner with Luxshare as we transition those sites. The agreement is over multiple years and, you know, there is obviously some benefits there for Qorvo, as the volume increases, and we're confident in their ability to provide the cost improvements that we'd expect over time in a rather similar relationship to what we incur today, cost-wise, at those locations. Thank you. The next question comes from Edward Snyder with Charter... I'm sorry, Charter Equity Research. Please go ahead. No, we're not a charity just yet. Couple things. Bob, thank you very much for clearing that up right off the bat. I really appreciate that. That clears up a lot of confusion. Maybe we can shift gears then a little bit on, on the Android market. I know you're doing very well in China and the whole inventory digestion, and that's all, I think, fairly clear now. But when you get back to a normal run rate here, the content game seems to be shifted a little bit. The Chinese suppliers have picked up a little bit, but they don't seem to be threatening you in modules, and now you're talking about these very high integrated modules, which would separate you from any other competitors. I think, I don't think Skyworks even has that part yet. So one, content-wise, by combining all that into a single module, it must be, you know, the sum of the parts isn't quite equal to the individual pieces. Is it a content decline just on average, or are you pulling in content that you they may not have had before, or are they paying for a premium? So I'm just trying to get an idea of how that shakes out when China finally gets back to a normal run rate, and then I had a follow-up, please. Yeah, this is Dave. It kind of depends. So when Bob mentioned our low, mid, high, and so that's a combination of what used to be the mid-high band, which we generally enjoyed a pretty high share of that. And the low band, which we had good share, but we shared a lot of that with some other competitors. But when we integrate the low, mid, high altogether, obviously, we can pick up some content there overall as we support customers with that platform. You also have to look at the different SKU strategies that our customers have. So depending on what markets they serve, there may be more or less filter content. We work with them, as Bob mentioned, and I mentioned as well, on their long-term roadmaps to help architect to support their solutions across those different tiers. Whether they're doing a global SKU or they're doing regional SKUs, we can tier the product along with that to fit the needs that they have there. Great. And then if I could, you historically haven't sold discrete filters in quite a long time, if I remember, and I know you're doing it now. Is that why? Well, first of all, maybe give us some idea of where those are going. Is that mostly into Wi-Fi? I mean, who, where, what? A nd is it driven mostly by the fact that you have capacity in Texas that could support that, whereas you're not seeing maybe as much volume in some of the modules that you had before? And then, yeah, let's just do that one. Yeah, and it's an interesting one. So we've been in the discrete filter market. It's just not been a huge business for us because we focus more on the modules, as you said. But it's a very good performing module. It is for 5G, not for Wi-Fi. And, you know, I like to use it as an example, as customers, even in that tier of the market, are paying for performance, right? They want the latest and greatest technology from us, and even on a very base product like a discrete filter, they're still looking for performance. So we're pretty excited about those products. Thank you. The next question is from Karl Ackerman with BNP Paribas. Please go ahead. Yes, thank you. Two, if I may, a question first for Grant. You know, with shutdowns in your Florida facility, you know, which I believe was historically SAW, and the sale of Farmers Branch, but also expansion of your Richardson facility, I guess, why wouldn't gross margins exceed 50%, on a lower revenue base than the prior peak as 5G unit volumes continue to grow from here? Sure. So those are all productivity enhancements. You know, and then as we've talked about, it's largely a utilization, a function of utilization. So, in addition to just shuttering some of those facilities that you mentioned, we're also producing significantly smaller die, and so we have effective capacity that has grown a lot, regardless of the number of wafers, so you can get more die out of a given wafer. So there's productivity there. And I would say there's a lot of productivity opportunities for us looking forward, as we work into that, across the board. So you know, there's productivity initiatives that we still have to do, and in terms of, you know, why we haven't achieved 50%, it's, again, largely a utilization issue. Sure. Thanks for that, Grant. I guess, Bob, you know, you also mentioned that 5G units would grow over 10% this calendar year. I'm curious if that is done predominantly in mid-range across, maybe the China Android OEMs, or is that only from Korean and U.S. OEMs? If you could give some color on what's the constitution of the 5G unit growth in calendar 2024, that would be very helpful. Thank you. Yeah, thanks for the question, Karl. It's primarily the Android ecosystem, so it would include all the Android manufacturers, because we're seeing some of, in China, the manufacturers that are not Huawei, also moving into 5G. So it's a broad comment across the Android ecosystem, is what we see driving most of that growth. Thank you. The next question is from Srini Pajjuri with Raymond James. Please go ahead. Thank you. I guess on your March quarter outlook, pretty solid guide, by the way. Bob, you know, just trying to understand the puts and takes by different segment. I think you said HPA is gonna grow nicely in March quarter, which seems to imply that, you know, the smartphone business is probably seasonal. But based on what you said, looks like Android is coming back a bit and your content is increasing. So I'm just curious as to why it's not better than seasonal, as we look into the March quarter. Sure. Hey, Srini, this is Grant. I'll take that question. We don't guide specifically by segment, but our views are incorporated in the total guidance. But I'll give a bit of color on each. In ACG, we expect substantial year-on-year growth, despite the typical sequential decline associated with our largest customer's fall ramp. Partially offsetting that seasonal decline is healthier channel inventories and improving smartphone unit demand in China, as well as the flagship launch by our largest Android customer. In HPA, we also expect year-over-year growth across all the businesses except base station. From a mix perspective, the more capital-intensive end markets we serve, such as base station and some others, including infrastructure, face headwinds due to the interest rate sensitivity of those customers and some of those larger buildouts. Consequently, Defense and Aerospace now represents over half of the HPA top line, making that segment a bit more sensitive to the timing of some of those defense programs quarter- to- quarter. In CSG, we also expect year-over-year growth in the March quarter, supported by our Wi-Fi revenue, which we've talked about. It'll be up meaningfully from Q4 last fiscal year, and then slower than expected ramps and IoT-related areas are expected in March, probably persisting through the first half of 2024. Although the auto market appears to be weakening, in general, our secular opportunities there lie in the automotive connectivity areas, which are supported by the growing adoption of 5G, Wi-Fi, V2X, and ultra-wideband, I think Dave commented on earlier. You know, we've already announced some significant design wins there in CSG for automotive and smartphone, and we're targeting additional areas, including industrial, enterprise, and smart home. Great. That's, that's great color, Grant. I appreciate that. And then, Grant, cash flow, you know, very, very strong here. Obviously, you know, you had a little bit of a headwind in the first half with, you know, working capital. Now, I think that has become a tailwind, but, you know, quite impressive, nevertheless. So can you talk about, you know, you know, how you're thinking about, you know, cash flow going forward? I think you mentioned, you know, CapEx is gonna be, you know, fairly, you know, relatively small. And, you also kind of suggested that inventory might come down again. So, just, just wanna hear your thoughts on, you know, cash flow generation going forward, and then, you know, what are the uses for the cash going forward? I guess, you know, it looks like you made an acquisition, and obviously you've been buying back shares. So if you can talk about that, that would be helpful. Thank you. Sure. In terms of cash flow next quarter, as you point out, there's a few puts and takes. I would expect CapEx to be up. It's gonna follow the level of support for the top line and our capacity additions there for our customers' demand. So I would expect that to be up in the March quarter, but, you know, remain on the year under our limit of around 5%, well under. The, you know, monetization of our receivables is something that I expect will continue. That was a significant tailwind last quarter, along with the reduction in inventory balances. So you're starting to see that come down as we're able to sell through inventories rather than purchase as much new material, so that helps cash flow. You know, looking forward, as I've pointed out, you know, rate and pace of our buyback will fluctuate. It's dependent this year on our maturing 2024 notes, which we'll look to take out by December. And then, you know, obviously, we'll be continuing to grow, you know, throughout the calendar year and into fiscal 2025. So, you know, overall, you know, we should see some improvement, but on a quarter-to-quarter basis in March, there's some additional items there. Thank you. The next question comes from Matt Ramsay with TD Cowen. Please go ahead. Thank you very much, guys. Good afternoon. I guess my question is trying to dovetail some expectations the market is increasingly having about AI adoption in client or handset devices, particularly flagship ones. And dovetail that, Bob, with your commentary about visibility to maybe accelerating content gains for you with your large customer. And what I'm trying to understand a bit more is, do you guys, as AI proliferates over the long term in the handset market, view that in and of itself as a driver of TAM or RF content for your company? Or is it more that the resources in the phone are gonna get jacked up a lot in terms of compute and memory, et cetera, and that puts additional constraints on RF, where your company can distinguish itself through R&D and taking out things like cost and board space and power, et cetera? I'm just trying to figure out what you see driving the visibility of content, as AI presumably comes into these devices. Yeah, this is Dave. It's early days, as you know, with AI, but it's pretty exciting. I think you hit on a lot of the key points already. I mean, definitely it could be a catalyst that can help improve the replacement rate as people want to upgrade to take advantage of the new AI capabilities that show up in phones. It should drive, you know, more data over the network, and that, of course, means more and better RF. And then, as you pointed out, it's gonna be more, you know, compute and processing power in the device, which is gonna put more pressure on the rest of the phone. And so that, to us, translates into performance. And it could be in the RF, and we can deliver better and better RF and lower power consumption to help solve those problems, but also we can deliver power management. And there's a lot of areas in the phone to address with power management that we can use our IP there to help, again, reduce current consumption, improve battery life, and, and make more room to run the AI on the phone. But it's early, and so we have to see how this plays out. But definitely, we're looking forward to how AI can, you know, help, help drive, the smartphone market further. Got it. No, no, thanks for the comments there. That, that's helpful. I guess, as my follow-up, it's just a quick one. I know you guys didn't discuss financial terms or whatnot, but you did announce an acquisition today. If you could give us a little context around the technologies that you're bringing in, the people that you're bringing in, just any color there would be helpful. Thanks. Thanks for the question, Matt. This is Grant. I'll take that one. We're really excited to bring the Anokiwave team on board here at Qorvo. They bring a highly experienced talent in RF silicon, antenna, and phased array systems to our HPA group. The technology will complement our existing product portfolio, the beamforming capabilities, especially, where we can leverage those with our advanced packaging capabilities. In terms of the deal, we didn't announce the terms, as you mentioned, but we do expect to close this quarter. The impact is factored into our guidance. Initially, it'll add revenue in the low single digits per quarter and be slightly dilutive to EPS, but accretive to gross margin, and all that's factored into our guide. Thank you. The next question is from Chris Caso with Wolfe Research. Please go ahead. Yes, thank you. I wonder if you could speak to, you know, seasonality for the rest of the year and, you know, recognize that, you only want to guide for one quarter. But, you know, with, I guess some of the inventory corrections, certainly in the mobile business, looking like it's behind us, you know, is the expectation to kind of return to normal seasonal patterns? And then, you know, how does that apply to the, non-mobile businesses, which I guess are still going through some degree of correction? It's a little early to comment with any specificity on our what would be our fiscal 2025 or the balance of this calendar year, largely. But absent any macro-related disruptions, as I pointed out, we do expect to grow and improve our gross margins year-over-year. It's worth pointing out that given the content gains and success we're having in our largest customer and the success in our Defense and Aerospace areas, our revenue seasonality will more closely align to those customer programs and ramp profiles. So, you know, as we anticipate that quarterly profile or the shape of revenue across 2025, we expect it to look very similar to 2024. Beyond 2025, we're proactively investing, focusing on diversifying our business and pursuing substantial customer platforms where we have the technology to win and, and the customer engagement, to justify that, that product development. That's helpful. As a follow-up to that, you know, if you could speak to the CSG and HPA businesses and, you know, could you give us perhaps an update on, you know, what you think are longer term growth rates for that business, those businesses? There's a lot of different moving parts in there, and I know, you know, through this correction, you know, perhaps, you know, some of the expectations may have changed in that. You know, what's your kind of outlook for those businesses as we look over the next two years or so? This is Grant. I'll take that one, too. You know, I would think of Qorvo as having a portfolio of diversified businesses that contribute to the revenue line. No change to our long-term growth metrics that we've commented on in the past. But you know, if you decompose the business, about 2/3 of it is ACG, and this is primarily the smartphones and other cellular devices, including tablets and wearables, that we've largely commented on already. The other third of our revenue is composed of our HPA and CSG businesses, and HPA, over half of that business is now Defense and Aerospace, and in CSG, over half that business is Wi-Fi currently. It hasn't always been the case, and HPA base station used to be significantly larger. Those have better than corporate gross margins, typically. That's, you know, an area where we still have a lot of opportunity, but it's underrepresented in HPA at the time. Between HPA and CSG, there's a smaller portfolio of businesses that range from $25 million-$75 million annually or so, and they address market opportunities in a $1 billion. There's a lot of room to grow there, substantiating our comments on the strong double-digit growth rates. You know, our largest investments are aimed at very large customer programs, as I pointed out, in ACG for fiscal 2025 and beyond. We're looking to scale our defense and power franchises within HPA, and we're building our UWB and Matter business in CSG. All combined, this collection of businesses brings the diversification and some financial resiliency, since they're rarely, if ever, all in phase. It's also interesting to note that in each of our operating segments, the largest businesses all benefit from our shared internal manufacturing capabilities. Our more nascent businesses rely on external capital, and over time, we expect to grow the less capital-intensive, simply because of the relative growth rates in those smaller businesses. Thank you. The next question is from Thomas O'Malley with Barclays. Please go ahead. Hey, good evening, guys. Thanks for taking my question. I wanted to ask kind of a broader, 30,000-foot view question on Huawei's entry into the Android market. Can you just talk about what your internal estimates are for, you know, Huawei smartphone penetration in calendar year 2024, and just how that impacts your outlook for Android, particularly as you get into the back half of the calendar year in 2024? Dave, we also add the revenue, what we currently do. Yeah, revenue is very low, near zero or at zero at this point with Huawei. But that's a good question. I think, you know, the performance of the phones that are out there, the newer ones, I think it's pretty widely known. People have done performance evaluations, and there's definitely some performance challenges on those phones. So we don't think that they could export them to other markets. They'd probably have a very difficult time getting carrier approval, so we think they're limited to China. And so if you look at their performance to date, you know, since the Mate 60 ramp, you know, we think they did about 30 million in calendar year 2023. If you take the last four months of data and you start to project that forward, you can see an incremental 10-20 million units added in CY 2024. So that's kind of how we're sizing it right now, and that's all built into our models. You know, there was probably some pent-up demand from Huawei users, so we'll have to see how that plays out and how sustainable that is. But any case, any of those numbers you use, it's really not that significant when you think about a 1.2 billion-unit smartphone market. So it's not that meaningful to us on a grand scale of things. And when we think about our China customers, you know, the ones I mentioned earlier, they have pretty meaningful market shares also outside of China, and that's where a lot of the growth is coming from, that Bob talked about, as the market converts to 5G, because most of China has already moved to 5G. So for us, you know, we look at that as a great opportunity to work with those customers to continue to grow, and that 5G comes into our market, because we're really not present today in the 4G portion of the market. Helpful. And since that one wasn't your favorite, I can give you a bit of a layup now. But just if you look at the competitive environment in Android at the high end, your competitor is talking about having a bit more capacity and maybe going after that market. Can you remind us of your competitive positioning there, particularly in BAW filters, and why, you know, existing customers go with you? And if they were to enter the market, why you think that you'd keep the share profile that you have today? Thank you. You're referring to the Android market? The Android market. Yeah, and I think I commented on this earlier. I mean, we've been working with these customers for a very, very long time. In fact, I was just in China last quarter, you know, sat with all of these customers talking about our long-term roadmaps, and we mentioned the awards we got. I mean, there's a lot of trust and relationship that's been built up over the years. So we're very confident that, you know, we'll continue to enjoy our leadership position there. And other competitors, yeah, I mean, they may come and go, but we feel confident we'll maintain our leadership position there. Thank you. This does conclude our question and answer session. I would like to turn the call back over to management for closing remarks. We want to thank everyone for joining us on the call tonight. We appreciate your interest, and we look forward to speaking with many of you at upcoming investor events. Thanks again, and have a great evening. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines.