Grant Brown: 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 going to 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 remain on the year under our limit of around 5% well under. The monetization of our receivables is something that I expect will continue. That’s been a significant tailwind last quarter, along with the reduction in inventory balances. So, now 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. Looking forward, as I’ve pointed out, 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 obviously we’ll be continuing to grow throughout the calendar year and into fiscal 2025. So, overall, we should see some improvement, but on a quarter-to-quarter basis in March there’s some additional items there.
Operator: Thank you. The next question comes from Matt Ramsey with TD Cohen. Please go ahead.
Matthew Ramsay: 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 clients 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, you guys — as AI, I guess, proliferates over the long term in the handset market, do you 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 going to 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.
Dave Fullwood: Yes, 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 more data over the network, and that of course means more and better RF. And then as you pointed out, it’s going to be more computing processing power in the device which is going to put more pressure on the rest of the phone. And so that 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 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 help drive the smartphone market further.
Matthew Ramsay: Got it. Thanks for the comments there. 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. Maybe 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.
Grant Brown: 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 D&A group. The technology will complement our existing product portfolio, the beam forming 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 and 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 of that’s factored into our guide.
Operator: Thank you. The next question is from Chris Caso with Wolfe Research. Please go ahead.
Chris Caso: Yes, thank you. I wonder if you could speak to seasonality for the rest of the year and recognize that you only want a guide for one quarter. But with, I guess, some of the inventory corrections, certainly in the mobile business, looking like it’s behind us. Is the expectation to kind of return to normal seasonal patterns? And then, how does that apply to the non-mobile businesses, which I guess are still going through some degree of correction?
Grant Brown: It’s a little early to comment with any specificity on 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-on-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 were closely aligned to those customer programs and ramp profiles. So, 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 the customer engagement to justify that product development.
