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

Liam Griffin : Yes. Ed, that has been a stalwart within the business and the Wi-Fi cycle is very strong. We have great position, 6 and going into Wi-Fi 7. I mean, you know these technologies, they’re not easy, and there’s a big leap between those two cycles, but we’re in great shape. There’s certainly a tremendous amount of consumer activity that hasn’t been consummated. Wi-Fi is a really important technology. I think everybody knows that. And it’s used in so many different applications that we try to really deliver the best solutions. And that’s been very powerful for us and our customers like the technology. And I think we’ve got a great opportunity over the next several years.

Edward Snyder : Okay. And if I could, the transmit DRx module, which is quickly — it already has become one of the most lucrative modules and some of the high-end phones out there. You guys kind of own that space, but it’s been really clear in the last year or so, that the competition for that spot has increased dramatically. I think even Avago is now trying to get into that. I know Qorvo tried to fill a piece. Qualcomm’s always talked about, et cetera. Incumbency has a lot of inertia with it. We’ve seen that year after year after year in iPhone. Is that still the case of this? Because the flip side of this, we haven’t seen incumbency really help anybody in the ultra-high band. That shares bounced back and forth. You had some of it last year, Qorvo and Avago split it.

This year, Qorvo is getting a little bit. So I’m just trying to get a feel for is incumbency worth more in the transmit diversity section, do you think — and think you’ll continue to dominate that spot?

Liam Griffin : Yes, I would look at it at a high level, not necessarily any 1 specific customer, but performance wins and flexibility wins and supply chain wins and having incredible people on our team that can work shoulder to shoulder in the lab to create amazing outcomes. And I think that really is what differentiates us. And it’s not just talk. I mean these are real actions, the people in our fabs. Our factories we’re using our own technologies, as you know, whether it’s BAW, TC-SAW. All those recipes are really homegrown. I think it makes it unique for us. Our customers love it because they have a voice in the product. And if there’s any fine-tuning or tweaking, technically, we could do it. So we love that. And some of those products that you mentioned, you know probably more than anybody.

These are really, really hard products, really difficult with demanding customers. But if you’re able to handle that and hit that fast ball, it’s great for the customer, and it’s great for the supplier like us. So we’re looking forward to more of that. We love challenges, and we’re ready to do more.

Operator: And your next question comes from the line of Vivek Arya from Bank of America.

Blake Friedman : This is Blake Friedman on for Vivek. I might have missed it in the prepared remarks, but I was hoping you could provide what percent of revenue came from your largest customer. And in addition to that, if you’re able to quantify the percentage of your broad market sales that come from this largest customer, that would be helpful?

Kris Sennesael : Yes. So the largest customer in the June quarter was approximately 64% of total revenue when — if you do the math correctly, you will see that’s kind of flattish, slightly up, maybe 1% on a year-over-year basis, which clearly illustrates that we continue to win big with that large customer. And as you indicate, yes, we went with that customer, not just at the phone, but in every product that they have and every product that brought to the market and that they will bring to the market in the future. And so you will find not only Skyworks content in the iPhone, but you will also find it in the iPad and in the iMac and in the home part and in other products that it will bring to the market. And that’s roughly on or about 15% of that revenue with the customer.