Skyworks Solutions, Inc. (NASDAQ:SWKS) Q3 2023 Earnings Call Transcript

It’s going to be a grower in the industry. I think it’s going to be meaningful for the RF players with Skyworks being certainly at the top of the pack. And it’s just a lot of general diversified products that we came in with the slab transaction that just very, very broadly, which has a number of design wins across multiple categories that’s also growing. So good stuff there. Plenty of room to go. I mean all these markets that we’re dealing with have pretty, very significant TAM opportunities for us to grow into. So we’re excited about that. We’ve made a lot of strategic additions in our sales force as well to try to penetrate more of these new markets and create that diversification vector. So we feel good about it. And we’re just going to have to — you’re going to have to see it in the numbers, but we’re certainly driving to those outcomes and expect we can do it.

Matt Ramsay : Just as my follow-up, Kris, maybe you could talk a little bit about your view into OpEx in the next few quarters. I think it was a hair below where we had modeled it anyway. And with some of the gross margin pressure given the utilization, maybe that makes sense. But there’s a lot of opportunity ahead for you guys as well, particularly in the broad market to invest in. So if you could just kind of level set us on the next few quarters on the OpEx line, that would be helpful.

Kris Sennesael : Yes. Thanks for that question. And so we can’t control the macro, right? And we can control some of the softness in some of the end markets that everybody industry is going through, but we can control, of course, our own operating expenses and the investments that we make in the business. And there, again, we’re not hesitating. We are going to continue to invest and play to win. But at the same time, we’re going to continue. And Skyworks is pretty good at that, continue to focus on efficiencies and really spending the dollars where we get the biggest bang for the buck. And as you saw from the prepared remarks, we have been able to trim down a little bit the OpEx, again, without cutting into our key technology development and product road maps, just focusing on effectiveness and efficient processes.

Some of that was also we reduced a little bit of the variable compensation because of the top environment that we play in. That will kick back a little bit as we start the new fiscal year in the December quarter. But overall, I feel good about the level of spending that we do in support of our growth.

Operator: And your next question comes from the line of Edward Snyder from Charter Equity Research.

Edward Snyder : A couple of questions, if I could, please. First, there’s been a lot of talk earlier this year that Skyworks is going to lose some share in Wi-Fi and the high-end handsets, not the CPE units or the stuff that goes into homes with handsets. And I guess there’s some basis for that given how much content you have. I think you have and have had all the remote PAs for both 5-gigahertz and 2.5 as well as some flagship phones. Maybe you could provide a little color on that. Should we expect your share to moderate a little bit in the second half of this year? Do you feel like you’re not giving up anything there given kind of your dominance of that space over the last several years, actually?