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01/10 00:49
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with record revenue and growth in key segments like automotive and data center. The Q&A highlights strategic alignment, diversification, and optimistic guidance, particularly in Android and broad markets. Despite some lack of specifics on content trends, the overall sentiment is positive, driven by strong market positioning and growth potential.
Revenue $1.1 billion, up 7% year-over-year. The increase was driven by strong performance in mobile, with a 21% sequential growth and 7% year-over-year growth, supported by healthy sell-through at the top customer and growth in Android.
Earnings Per Share (EPS) $1.76, exceeding expectations. This reflects strong revenue performance and disciplined cost management.
Free Cash Flow $1.1 billion for the full fiscal year, representing a 27% free cash flow margin. This was supported by strong operating cash flow of $1.3 billion and capital expenditures of $195 million.
Gross Margin 46.5%. This was influenced by higher employee incentive accruals tied to stronger quarterly revenue.
Operating Income $264 million, translating to an operating margin of 24%. This was driven by strong revenue performance and disciplined spending.
Broad Markets Revenue Grew 7% year-over-year and 3% sequentially, driven by growth across edge IoT, automotive, and data center.
Automotive Business Achieved a new record run rate, surpassing the previous high in fiscal '23, driven by robust design activity in 5G telematics, infotainment, and power management systems.
Data Center Infrastructure Activity rebounded as customer inventories normalized, with increasing timing design win activity for next-generation 800-gig platforms.
Mobile Revenue Growth: Revenue up 21% sequentially and 7% year-over-year, driven by healthy sell-through, richer product mix, and growth in Android.
Broad Markets Growth: Broad Markets grew 3% sequentially and 7% year-over-year, driven by edge IoT, automotive, and data center demand.
WiFi 7 and WiFi 8: Accelerated adoption of WiFi 7 across home, enterprise, and industrial applications; progress on next-generation WiFi 8 programs.
Automotive Business: Achieved record run rate with design wins in 5G telematics, infotainment, and power management systems.
Data Center Infrastructure: Rebound in activity with increasing timing design wins for next-generation 800-gig platforms.
Qorvo Combination: Announced agreement to combine with Qorvo, adding scale, diversification, and complementary technology portfolio.
Cost Structure Optimization: Consolidation of Woburn facility to improve long-term cost structure and gross margins.
Leadership Changes: Appointed new CFO and executive to lead global sales, enhancing leadership team.
Broad Markets Strategy: Evolved into a $1.5 billion business with balanced growth across edge IoT, automotive, and data center, achieving margins above corporate average.
Revenue dependency on largest customer: The largest customer accounted for approximately 67% of revenue, indicating a high dependency on a single customer, which poses a significant risk if this customer reduces orders or switches suppliers.
Mobile revenue decline forecast: Mobile revenue is expected to decline low to mid-teens sequentially in Q1 fiscal '26, which could impact overall financial performance.
Operating expenses increase: Operating expenses were slightly above the high end of guidance due to higher employee incentive accruals, which could pressure margins if not controlled.
Free cash flow outlook: Free cash flow is expected to decline in fiscal '26 compared to fiscal '25 due to a lower expected revenue base and normalized working capital trends, which could limit financial flexibility.
Facility consolidation: The consolidation of the Woburn facility, while aimed at improving cost structure, could pose short-term operational disruptions or costs.
Economic and market uncertainties: The company faces uncertainties in market demand, particularly in mobile and broad markets, which could impact revenue and growth projections.
Revenue Expectations for Q1 Fiscal '26: Revenue is expected to be between $975 million to $1.025 billion.
Mobile Segment Outlook: Mobile revenue is anticipated to decline low to mid-teens sequentially.
Broad Markets Segment Outlook: Broad Markets revenue is expected to increase slightly sequentially, representing 39% of sales and growing mid- to high single digits year-over-year.
Gross Margin Projections: Gross margin is projected to be approximately 46% to 47%.
Operating Expenses: Operating expenses are expected to range between $230 million and $240 million, with continued investment in key R&D initiatives and tight control over discretionary spending.
Earnings Per Share (EPS) Guidance: At the midpoint of the revenue outlook, diluted EPS is expected to be $1.40.
Free Cash Flow for Fiscal '26: Free cash flow is expected to remain solid but below fiscal '25 levels due to a lower expected revenue base and normalized working capital trends.
Broad Markets Growth Drivers: Continued strong adoption of WiFi 7 and progress on next-generation WiFi 8 programs. Robust pipeline of design wins in automotive, including 5G telematics, infotainment, and power management systems. Favorable growth setup in data center infrastructure with increasing timing design win activity for next-generation 800-gig platforms.
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The earnings call reveals strong financial performance with record revenue and growth in key segments like automotive and data center. The Q&A highlights strategic alignment, diversification, and optimistic guidance, particularly in Android and broad markets. Despite some lack of specifics on content trends, the overall sentiment is positive, driven by strong market positioning and growth potential.
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