思佳訊 (SWKS) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to Skyworks Solutions Fourth Quarter Fiscal Year 2023 Earnings Call. The call is being recorded. At this time, I will turn the call over to Raji Gill, Vice President of Investor Relations for Skyworks. Mr. Gill, please go ahead.

下午好，歡迎參加 Skyworks Solutions 2023 財年第四季財報電話會議。通話正在錄音。此時，我會將電話轉給 Skyworks 投資者關係副總裁 Raji Gill。吉爾先生，請繼續。

Thank you, operator. Good afternoon, everyone, and welcome to Skyworks' Fourth Fiscal Quarter 2023 Conference Call. With me today is Liam Griffin, our Chairman, Chief Executive Officer and President; and Kris Sennesael, Chief Financial Officer for Skyworks. This call is being broadcast live over the web and can be accessed from the Investor Relations section of the company's website at skyworksinc.com. In addition, the company's prepared remarks will be made available on our website promptly after the conclusion during the call.

謝謝你，接線生。大家下午好，歡迎參加 Skyworks 2023 年第四財季電話會議。今天與我在一起的是我們的董事長、執行長兼總裁 Liam Griffin；以及 Skyworks 財務長 Kris Sennesael。這次電話會議正在透過網路進行現場直播，您可以透過該公司網站 skyworksinc.com 的投資者關係部分進行存取。此外，公司準備好的評論將在電話會議結束後立即發佈在我們的網站上。

Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered forward-looking statements. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today.

在開始之前，我想提醒大家，我們的討論將包括與未來結果和預期相關的陳述，這些陳述是或可能被視為前瞻性陳述。請參閱我們的收益新聞稿和最近向 SEC 提交的文件，包括我們的 10-K 表格年度報告，以了解可能導致實際結果與今天所做的任何前瞻性聲明產生重大不利差異的某些風險的資訊。

Additionally, the results and guidance we will disclose include non-GAAP financial measures, consistent with our past practice. Please refer to our press release within the Investor Relations section of our company website for a complete reconciliation to GAAP. With that, I'll turn the call over to Liam.

此外，我們將揭露的結果和指引包括非公認會計準則財務指標，與我們過去的做法一致。請參閱我們公司網站投資者關係部分的新聞稿，以了解與 GAAP 的完全一致。這樣，我就把電話轉給利亞姆。

Thanks, Raji, and welcome, everyone. Despite macroeconomic headwinds and volatility, Skyworks executed well during the fourth fiscal quarter. We delivered revenue of $1.219 billion, posted earnings per share of $2.20 and generated $366 million of operating cash flow. During fiscal 2023, free cash flow was well above $1.6 billion, which reflects our efficient business model despite a challenging macro environment. While excess supply conditions are modestly improving in the Android smartphone markets, we continue to under-ship to natural demand as the industry rebalances.

謝謝拉吉，歡迎大家。儘管宏觀經濟逆風和波動，Skyworks 在第四財季仍表現良好。我們營收 12.19 億美元，每股收益 2.20 美元，營運現金流 3.66 億美元。 2023 財年，自由現金流遠高於 16 億美元，這反映了儘管宏觀環境充滿挑戰，我們仍保持高效的業務模式。雖然 Android 智慧型手機市場的供應過剩狀況略有改善，但隨著產業重新平衡，我們的出貨量仍低於自然需求。

Within broad markets, we see softer demand extending from consumer to certain durable sectors as customers adjust to normalized lead times and reduce excess inventory. After 2 years of unprecedented events due to COVID and historical supply chain shortages, the semiconductor industry is returning to a normal supply and demand balance. We are responding to these dynamics by actively managing our inventory levels, making strategic investments in growth areas and diversifying the reach of our business.

在廣闊的市場中，隨著客戶適應正常化的交貨時間並減少過剩庫存，我們看到需求疲軟從消費者延伸到某些耐用品行業。由於新冠疫情和歷史性供應鏈短缺，經歷了兩年前所未有的事件後，半導體產業正在恢復正常的供需平衡。我們透過積極管理庫存水準、在成長領域進行策略性投資以及實現業務範圍多元化來應對這些動態。

We are well positioned to capitalize when demand inflects from a technology and road map, manufacturing capacity, and financial perspective. Over the medium to long term, we remain bullish on several sectors and trends in our mobile business and our broad markets businesses.

當需求因技術和路線圖、製造能力和財務角度而變化時，我們處於有利地位。從中長期來看，我們仍然看好我們的行動業務和廣泛市場業務的多個領域和趨勢。

In mobile, we see opportunities to expand RF content over the coming years. On the path to 6G, we anticipate RF content increases will be driven by additional bands, enabling satellite connectivity, growing usage of uplink carrier aggregation, further adoption of 4x4 MIMO and other innovations in RF.

在行動領域，我們看到了未來幾年擴大射頻內容的機會。在通往 6G 的道路上，我們預計射頻內容的增加將由更多頻段推動，從而實現衛星連接、增加上行鏈路載波聚合的使用、進一步採用 4x4 MIMO 以及射頻領域的其他創新。

Switching gears to broad markets, which accounted for approximately 37% of our total revenue in fiscal 2023. We expect to benefit from 3 long-term secular trends. First, the proliferation of intelligent IoT connected devices on the edge. Second, the rapid transition towards electrification and advanced safety in vehicles. And third, high-speed connectivity for AI-enabled data-intensive infrastructure and cloud applications.

轉向廣闊的市場，該市場約占我們 2023 財年總收入的 37%。我們預計將從 3 個長期趨勢中受益。首先，邊緣智慧物聯網連接設備的激增。其次，汽車向電氣化和先進安全性的快速轉型。第三，為支援人工智慧的數據密集型基礎設施和雲端應用程式提供高速連接。

Within IoT, we are excited about the upgrade cycle with WiFi 6E and 7, driving additional content as incremental higher frequency bands drive more stringent filter requirements, including the need for BAW. WiFi 7 has several use cases, including 8K video streaming, immersive AR and VR, cloud gaming, industrial IoT and telemedicine.

在物聯網領域，我們對 WiFi 6E 和 7 的升級週期感到興奮，隨著更高頻段的增量推動更嚴格的濾波器要求（包括 BAW 的需求），推動了更多內容的發展。 WiFi 7 有多種用例，包括 8K 視訊串流、沉浸式 AR 和 VR、雲端遊戲、工業物聯網和遠距醫療。

Shifting to automotive. Skyworks is well positioned to benefit from the electrification and adoption of advanced safety in vehicles. According to internal analysis and third-party estimates, we expect RF automotive semiconductor TAM to reach $1 billion. Within automotive, we are focused on high-growth segments and content opportunities, including power isolation chips for onboard chargers, powertrains and battery management systems in EVs; connectivity, such as cellular engines, WiFi, Bluetooth and GPS; in-vehicle infotainment systems, driven by digital radios; and lastly, ADAS solutions for autonomous driving. We have the experience and ability to execute at scale with some of the leading brands in the world.

轉向汽車。 Skyworks 處於有利地位，可以從車輛的電氣化和先進安全性的採用中受益。根據內部分析和第三方估計，我們預計射頻汽車半導體TAM將達到10億美元。在汽車領域，我們專注於高成長細分市場和內容機會，包括用於車載充電器、電動車動力系統和電池管理系統的電源隔離晶片；連接性，例如蜂窩引擎、WiFi、藍牙和 GPS；由數位收音機驅動的車載資訊娛樂系統；最後是自動駕駛的 ADAS 解決方案。我們擁有與一些世界領先品牌大規模合作的經驗和能力。

In addition, we believe AI can be a catalyst for more efficient wireless communication and could fuel the need for more complex and higher-performance wireless solutions. Over time, we expect high-performance smartphones will be a critical platform for advanced AI capabilities and, in turn, could spark a major upgrade cycle.

此外，我們相信人工智慧可以成為更高效無線通訊的催化劑，並可能推動對更複雜和更高性能無線解決方案的需求。隨著時間的推移，我們預期高性能智慧型手機將成為先進人工智慧功能的關鍵平台，進而可能引發重大升級週期。

Furthermore, over the past 2 years, we've made significant investments in BAW technology and scale, which has led us for competitive differentiation. We've expanded our reach within the smartphone market. And today, nearly 50% of our mobile revenue is tied to BAW. That's more than double from the last 2 years. Our BAW investment has also resulted in key design wins in our broad markets business, which represents more than 10% of our business. WiFi 7 is a perfect example of BAW technology being a critical requirement for the new standard.

此外，在過去的兩年裡，我們在 BAW 技術和規模方面進行了大量投資，這使我們實現了競爭差異化。我們擴大了在智慧型手機市場的影響力。如今，我們有近 50% 的行動收入與 BAW 相關。比過去兩年增加了一倍多。我們的 BAW 投資也為我們廣泛的市場業務帶來了關鍵的設計勝利，該業務占我們業務的 10% 以上。 WiFi 7 是 BAW 技術成為新標準關鍵要求的完美範例。

Now turning to our quarterly business highlights. We secured 5G design wins for premium Android smartphones including Google, Samsung and several models in the Vox ecosystem. We accelerated design wins in WiFi, including NETGEAR's WiFi 7 mesh system, Linksys’' 6E tri-band mesh router and TP-Link's quad-band WiFi 7 router. We expanded our reach in automotive segments by winning several designs for onboard chargers, battery management systems and digital broadcast products across the leading brands. And lastly, in emerging IoT, we enabled next-generation smart energy solutions with Trilliant and Samsara.

現在轉向我們的季度業務亮點。我們贏得了高階 Android 智慧型手機的 5G 設計，包括 Google、三星和 Vox 生態系統中的多款型號。我們加速了 WiFi 領域的設計，包括 NETGEAR 的 WiFi 7 網狀系統、Linksys™ 6E 三頻網狀路由器和 TP-Link 的四頻 WiFi 7 路由器。我們贏得了多個領先品牌的車載充電器、電池管理系統和數位廣播產品的設計，擴大了我們在汽車領域的影響力。最後，在新興物聯網領域，我們透過 Trilliant 和 Samsara 實現了下一代智慧能源解決方案。

In summary, Skyworks continues to deliver solid results despite a challenging macro environment. At the same time, our advanced technology and product road maps are aligned to long-term secular trends, further expanding and diversifying our customer base. Our strategic customer engagements, resilient business model and experience will help us weather through this cycle's volatility.

總而言之，儘管宏觀環境充滿挑戰，Skyworks 仍持續交付穩健的績效。同時，我們的先進技術和產品路線圖符合長期趨勢，進一步擴大我們的客戶群並使其多樣化。我們的策略客戶參與、彈性業務模式和經驗將幫助我們度過這個週期的波動。

With that, I will turn the call over to Kris for a discussion of last quarter's performance and our outlook for Q1 of fiscal '24.

接下來，我將把電話轉給 Kris，討論上一季的業績以及我們對 24 財年第一季的展望。

Thanks, Liam. Skyworks revenue for the fourth fiscal quarter of 2023 was $1.219 billion, up 14% sequentially and slightly above the midpoint of our outlook. Mobile was approximately 65% of total revenue, an increase of 25% sequentially as we supported the ramp of new high-performance solutions at our largest customer. Broad markets were approximately 35% of total revenue, down 3% sequentially. We continue to see inventory digestion within broad markets, including consumer IoT, enterprise and telecom infrastructure. Gross profit was $575 million, resulting in a gross margin of 47.1%. Gross margin continued to be impacted by temporary factory underutilization as we right-size our inventory levels.

謝謝，利亞姆。 Skyworks 2023 年第四財季營收為 12.19 億美元，季增 14%，略高於我們預期的中點。行動業務約佔總營收的 65%，季增 25%，因為我們支援最大客戶推出新的高效能解決方案。廣大市場約佔總營收的 35%，比上一季下降 3%。我們繼續看到廣泛市場的庫存消化，包括消費者物聯網、企業和電信基礎設施。毛利為 5.75 億美元，毛利率為 47.1%。隨著我們調整庫存水平，毛利率繼續受到工廠臨時利用率不足的影響。

During Q4, we reduced our internal inventory by $116 million to $1.120 billion, and we are on track to further reduce it below $1 billion by the end of the December quarter. Operating expense of $177 million was down 3% sequentially and down 8% year-over-year, given our ongoing focus on managing discretionary expenses. We generated $398 million of operating income translating into an operating margin of 32.6%. We incurred $7 million of other expense, and our effective tax rate was 9.7%, driving net income of $353 million and diluted earnings per share of $2.20. EPS was $0.10 above the guidance that we provided during the last earnings call.

第四季度，我們的內部庫存減少了 1.16 億美元，達到 11.2 億美元，我們預計在 12 月季度末將其進一步減少到 10 億美元以下。鑑於我們持續專注於管理可自由支配費用，營運費用為 1.77 億美元，季減 3%，年減 8%。我們產生了 3.98 億美元的營業收入，營業利益率為 32.6%。我們產生了 700 萬美元的其他費用，有效稅率為 9.7%，淨利潤達 3.53 億美元，攤薄後每股收益達 2.20 美元。每股收益比我們在上次財報電話會議期間提供的指引高出 0.10 美元。

Now turning to cash flow. Skyworks' business model continues to deliver robust cash generation. Fourth fiscal quarter cash flow from operations was $366 million, and capital expenditures were $70 million, resulting in free cash flow of $296 million. For the full fiscal year, we generated $1.856 billion of cash flow from operations. Capital expenditures were $210 million or 4% of revenue. As a result, we delivered a record $1.646 billion of free cash flow, an increase of 76% year-over-year, driving a record free cash flow margin of 34.5% and translating into approximately $10.30 of free cash flow per share and a free cash flow yield of approximately 12%.

現在轉向現金流。 Skyworks 的商業模式持續帶來強勁的現金產生。第四財季營運現金流為 3.66 億美元，資本支出為 7,000 萬美元，自由現金流為 2.96 億美元。在整個財年，我們的營運現金流為 18.56 億美元。資本支出為 2.1 億美元，佔收入的 4%。結果，我們實現了創紀錄的 16.46 億美元自由現金流，年增 76%，推動自由現金流利潤率達到創紀錄的 34.5%，相當於每股約 10.30 美元的自由現金流和現金流收益率約為12%。

In fiscal 2023, we significantly reduced our capital expenditures in line with our business model. After major investments during prior years to expand our manufacturing footprint, including BAW filtering, we expect our capital intensity to moderate. We focus on driving operational efficiencies through yield improvements, die shrinks and test time reductions, creating additional available capacity. We believe we are currently well positioned from an equipment and tooling standpoint to support a demand recovery. Also, during fiscal Q4, we paid $108 million in dividends and repaid $200 million of our term loan. In early October, we repaid $150 million of outstanding borrowings under the term loan, and we intend to pay off the remaining $150 million by year-end. Entering calendar year 2024, we are comfortable with our capital structure and debt levels of $1 billion, which provides us with superior flexibility and optionality.

2023 財年，我們根據我們的業務模式大幅減少了資本支出。在前幾年為擴大我們的製造足跡（包括 BAW 過濾）而進行的重大投資之後，我們預計我們的資本密集度將會放緩。我們專注於透過提高產量、縮小晶片尺寸和減少測試時間來提高營運效率，從而創造額外的可用產能。我們相信，從設備和工具的角度來看，我們目前處於支持需求復甦的有利位置。此外，在第四財季，我們支付了 1.08 億美元的股息，並償還了 2 億美元的定期貸款。 10 月初，我們償還了定期貸款項下的 1.5 億美元未償還借款，我們打算在年底前還清剩餘的 1.5 億美元。進入 2024 年，我們對 10 億美元的資本結構和債務水準感到滿意，這為我們提供了卓越的靈活性和選擇性。

Now let's move on to our outlook for Q1 of fiscal 2024. We anticipate revenue between $1.175 billion and $1.225 billion. We expect our mobile business to demonstrate momentum. While in broad markets, we expect to continue digesting excess inventory affecting our revenue outlook. Gross margin is projected to be in the range of 46% to 47%, reflecting the ongoing cyclical impact of lower factory utilization, reduction of internal inventory and an unfavorable mix shift given the lower proportion of broad markets as a percentage of total revenue. We expect operating expenses in the range of $193 million to $197 million as we continue to make strategic investments in mobile and broad markets to drive share gains and increase diversification.

現在讓我們展望 2024 財年第一季。我們預計營收在 11.75 億美元至 12.25 億美元之間。我們預計我們的行動業務將展現出強勁的勢頭。在廣闊的市場中，我們預計將繼續消化影響我們收入前景的過剩庫存。毛利率預計在 46% 至 47% 之間，反映了工廠利用率下降、內部庫存減少以及由於廣泛市場佔總收入比例較低而出現不利的產品組合變化所帶來的持續週期性影響。我們預計營運費用將在 1.93 億美元至 1.97 億美元之間，因為我們將繼續在行動和廣泛市場進行策略性投資，以推動份額成長並增加多元化。

Below the line, we anticipate roughly $6 million in other expense and an effective tax rate of 12% for Q1 as well as full fiscal year 2024. We expect our diluted share count to be approximately 161 million shares. Accordingly, at the midpoint of the revenue range of $1.2 billion, we intend to deliver diluted earnings per share of $1.95.

在此線之下，我們預計第一季以及 2024 年整個財年的其他費用約為 600 萬美元，有效稅率為 12%。我們預計稀釋後的股票數量約為 1.61 億股。因此，在 12 億美元收入區間的中點，我們打算實現每股 1.95 美元的攤薄收益。

Operator, let's open the line for questions.

接線員，讓我們打開提問線。

(Operator Instructions) Our first question comes from Chris Caso with Wolfe Research.

（操作員說明）我們的第一個問題來自 Wolfe Research 的 Chris Caso。

I guess for the first question, if you could give some color with regard to the December quarter guidance. The prepared remarks suggested that the incremental weakness was still coming from broad markets if you can give some more granular detail about what you expect for mobile and broad markets in the December quarter.

我想對於第一個問題，您是否可以對 12 月季度指引提供一些說明。準備好的評論表明，如果您能提供一些有關您對 12 月季度移動市場和廣泛市場的預期的更詳細信息，那麼增量疲軟仍然來自廣泛市場。

Yes, Chris. So you have it right. We do expect, in the December quarter, our mobile business to be up sequentially as we continue to execute the ramp with our largest customer and as we will continue to see some further modest improvement in the Android mobile part of the business as well. On the flip side, we have our broad markets business, which we expect to be down sequentially as we will continue the digestion of excess inventory in the channel as well as at the end customer level.

是的，克里斯。所以你說得對。我們確實預計，在 12 月的季度，我們的行動業務將連續成長，因為我們將繼續與我們最大的客戶一起實現成長，並且我們將繼續看到業務的 Android 行動部分進一步適度改善。另一方面，我們擁有廣泛的市場業務，我們預計該業務將持續下降，因為我們將繼續消化通路和最終客戶層面的過剩庫存。

That's helpful. As a follow-up, if -- and obviously, we've been going through this for a bit of a while in the mobile space, burning off inventory. And I guess, broad markets was affected a little bit later. Where do you think we are with regard to the inventory correction in each one of those markets? Particularly as we look into the March and June quarters, what's the prospect for when we can get some bottoming out here and we go back to shipping to actual real consumption?

這很有幫助。作為後續行動，如果——顯然，我們已經在移動領域經歷了一段時間，燒掉了庫存。我猜想，廣泛的市場稍後就會受到影響。您認為我們在每個市場的庫存調整上處於什麼位置？特別是當我們展望三月和六月季度時，當我們能夠觸底並回到實際消費時，前景如何？

Sure, Chris. This is Liam. There's actually kind of like 2 dynamics there. In the mobile business, we absolutely know where the dollars are and where the opportunities are. And we have eyes on all that, and we'll continue to drive that portfolio very strong. On the other side, the broad markets business is still a wonderful opportunity for us. But unfortunately, going through the semiconductor cycle and the inventory issues that we just mentioned on the call here have been a bit of a problem.

當然，克里斯。這是利亞姆。實際上有兩種動態。在行動業務中，我們絕對知道資金在哪裡以及機會在哪裡。我們著眼於這一切，並將繼續大力推動該投資組合。另一方面，廣闊的市場業務對我們來說仍然是一個絕佳的機會。但不幸的是，經歷半導體週期和我們剛才在電話會議中提到的庫存問題一直是一個問題。

Now we know how to fix it. These products are all solid, but they just slow down through the channel. And I think in some cases, levels of distribution, another layer between the buy and sell position, can sometimes mute some of the results. So we understand it. Some of that stuff, we can just handle ourselves directly and also drive more and more opportunities broadly in those markets.

現在我們知道如何解決它。這些產品都是固體的，但它們只是在通路中減慢了速度。我認為在某些情況下，分佈水平（買入和賣出頭寸之間的另一層）有時可能會抑制某些結果。所以我們理解它。其中一些事情，我們可以直接處理自己，並在這些市場上廣泛推動越來越多的機會。

There's a lot of opportunity, Chris. I mean, it goes way beyond what you see today, portfolio that we've been driving with the I&A business, the automotive gains or in data center today. Just a really whole different set of broad markets opportunities, but we certainly have our teams working hard to execute and demonstrate that success.

克里斯，機會很多。我的意思是，它遠遠超出了您今天所看到的、我們一直在 I&A 業務、汽車收益或資料中心推動的投資組合。這只是一系列完全不同的廣大市場機會，但我們的團隊當然會努力執行和展示這一成功。

Our next question comes from Karl Ackerman with BNP Paribas.

我們的下一個問題來自法國巴黎銀行的卡爾·阿克曼。

I have 2 questions, please. First and foremost, if I could just narrow down on your Android opportunity. MediaTek earlier suggested that 5G units should grow double digits next year, certainly above overall smartphone unit expectations of maybe flat to up low singles next year. Just curious to hear about some of the expanding opportunities you have with China Android OEMs. I mean you kind of mentioned how that is picking up in the December quarter and, I think, going forward for you.

我有 2 個問題，請問。首先，我能否縮小您在 Android 上的機會範圍。聯發科稍早表示，明年 5G 出貨量應該會實現兩位數成長，肯定高於明年智慧型手機出貨量整體持平或上漲的預期。只是想知道您與中國 Android OEM 廠商合作的一些不斷擴大的機會。我的意思是，您提到了 12 月季度的情況如何好轉，我想，這對您來說也是如此。

So -- but at the same time, Huawei, I think, is also coming back in the market. So I want to hear your perspective on what is your opportunity in China Android near term both in the December quarter? And then secondarily, how does Huawei impact your TAM opportunity for the China Android ecosystem, both near term and perhaps in calendar '24?

所以，但同時，我認為華為也正在重返市場。所以我想聽聽您對 12 月季度您在中國 Android 市場的機會有哪些看法？其次，華為如何影響中國 Android 生態系統的 TAM 機會，無論是近期還是 24 世紀？

A little bit to unpack here. Clearly, we know the players. We know the landscape in China, very familiar with the Vox ecosystem and great opportunities for us to continue to grow, although we've been conservative in that area because of the risks of inventory glut. And as you know, we've been running really lean, so there's no downside there. As we start to go further, you have opportunities that can continue to grow. A lot of these handsets in China have a lot of upside ability to drive more content and more benefits for the user. Those products are still subscale vis-a-vis a U.S.-type product. So the appetite for the China consumers to get more technology, to have higher speeds and data rates and more efficiency in their solution, so that can come through OVX, of course.

這裡需要稍微解壓縮一下。顯然，我們了解球員。我們了解中國的情況，非常熟悉 Vox 生態系統，也非常了解我們繼續發展的巨大機會，儘管由於庫存過剩的風險，我們在該領域一直持保守態度。如您所知，我們一直在精實運營，因此沒有任何缺點。當我們開始走得更遠時，您就有了繼續成長的機會。中國的許多此類手機都具有很大的優勢，可以為用戶帶來更多內容和更多利益。與美國類型的產品相比，這些產品的規模仍然較小。因此，中國消費者渴望獲得更多技術、更高的速度和數據速率以及更高的解決方案效率，當然，這可以透過 OVX 實現。

But don't forget big players like Google and Samsung, really strong Android players that create a nice buffer from us with our larger customers. So it's a really good mix. And as you know about our business, we're very flexible. We don't sell one part to everyone. It's very, very unique engagements. I think that's a signature for Skyworks.

但不要忘記像谷歌和三星這樣的大玩家，這些真正強大的 Android 玩家為我們和我們的大客戶創造了良好的緩衝。所以這是一個非常好的組合。正如您對我們業務的了解，我們非常靈活。我們不會向所有人出售一件零件。這是非常非常獨特的活動。我認為這是 Skyworks 的標誌。

But always room to grow from here, and we are starting to see, I think, a light in the tunnel, I would say, in the OVX channel. And with Huawei, I don't think that that's a big issue. I mean we can certainly deliver a product that's better than Huawei right now. But it's not really where we want to be as a company. And I think the technology has really lagged for Huawei to reengage. But we've got a lot of opportunity in front of us that we can execute and deliver.

但從這裡開始總是有成長的空間，我想，我們開始看到隧道中的一盞燈，我想說，在 OVX 通道中。對於華為來說，我認為這不是一個大問題。我的意思是我們現在肯定可以提供比華為更好的產品。但這並不是我們公司真正想要的目標。我認為華為重新參與這項技術確實已經落後了。但我們面前有很多可以執行和交付的機會。

Thanks, Liam. Kris, perhaps a question for you. You talked about the significant amount of free cash flow generation that you had just this upcoming -- this most recent quarter. But I guess, taking a step back, how are you and the management team thinking about M&A longer term? Just given the fact that valuations have come down across the space in areas within your broad markets business. Just any commentary on that would be helpful as well.

謝謝，利亞姆。克里斯，也許有個問題想問你。您談到了即將到來的最近一個季度將產生大量的自由現金流。但我想，退一步來說，您和管理團隊如何考慮長期併購？鑑於您的廣泛市場業務領域的估值已經下降這一事實。對此的任何評論也會有所幫助。

Karl, well, first of all, you're absolutely right. I mean, we have very strong free cash flow. The good news there is that it's sustainable. So for many years to come, we target a free cash flow well above 30%. In addition to that, we have a clean balance sheet, right? By year-end, the debt will be on or about $1 billion with -- on or about $1 billion of cash. And so we have a clean balance sheet. We continue to generate a ton of free cash flow.

卡爾，嗯，首先，你是完全正確的。我的意思是，我們擁有非常強大的自由現金流。好消息是它是可持續的。因此，在未來的許多年裡，我們的自由現金流目標遠高於 30%。除此之外，我們還有一個乾淨的資產負債表，對嗎？到年底，債務將達到 10 億美元左右，現金也將達到 10 億美元左右。所以我們有一個乾淨的資產負債表。我們繼續產生大量的自由現金流。

That gives us a ton of optionality, right? And so on one hand, of course, we will continue to invest in our organic business, making sure we invest in our technology and product road maps. But we also have optionality to further diversify the business. As you know, we've done a very successful transaction in 2021. We're very happy with that transaction, and so there is definitely optionality there.

這給了我們很多選擇，對吧？當然，一方面，我們將繼續投資於我們的有機業務，確保我們投資於我們的技術和產品路線圖。但我們也可以選擇進一步實現業務多元化。如您所知，我們在 2021 年完成了一筆非常成功的交易。我們對這筆交易非常滿意，因此肯定存在選擇性。

Our next question comes from Ruben Roy with Stifel.

我們的下一個問題來自魯本·羅伊和斯蒂菲爾。

Kris or Liam, I want to go back to the broad markets. And I think in the prepared commentary, in terms of the kind of the areas of weakness, you were seeing consumer obviously has been weak for a while. And I think you mentioned a couple of other areas that the weakness spread to. But I didn't hear industrial and automotive. And so can you maybe give us a little bit of detail on what you're seeing there, what you saw there in the September quarter, and how you see that playing out over the next quarter or 2?

克里斯或利亞姆，我想回到大市場。我認為在準備好的評論中，就薄弱領域而言，您會看到消費者顯然已經疲軟了一段時間。我認為你提到了弱點蔓延到的其他幾個領域。但我沒有聽說工業和汽車。那麼，您能否向我們提供一些有關您所看到的情況、您在 9 月份季度所看到的情況以及您如何看待下一季度或第二季度的情況的詳細信息？

Yes. That's a great question, and I'm glad you brought it up. We talked a little bit through the prepared remarks. But our business in automotive is actually really moving well. We're growing the portfolio. We hadn't really been in that market at all 2, 3, 4 years ago. And this is another kind of nod to the Silicon Labs transaction because they were significant on that piece.

是的。這是一個很好的問題，我很高興你提出這個問題。我們對準備好的發言進行了一些討論。但我們的汽車業務實際上進展順利。我們正在擴大產品組合。兩、三、四年前我們根本沒有真正進入過這個市場。這是對 Silicon Labs 交易的另一種認可，因為它們在那件事上意義重大。

We continue to do very, very well. We rattled off a number of the brands, a number of the names that are in the industry, and we have design wins. We're investing aggressively. We see that as an incredible opportunity for Skyworks, and we're underweight. We have the technology to win, but we're not big enough yet. And so we're continuing to grow.

我們繼續做得非常非常好。我們連珠炮般地列出了許多品牌、行業內的一些名字，並且我們贏得了設計獎。我們正在積極投資。我們認為這對 Skyworks 來說是一個難以置信的機會，但我們目前減持。我們擁有獲勝的技術，但我們還不夠大。所以我們正在繼續成長。

But I would say on a ballpark level, Chris, I mean, we're in hundreds of millions of dollars in terms of automotive. So it's not a -- relative to the scale of Skyworks, it's not a significant piece. But on an absolute basis, it's got some real opportunity to grow, and we look forward to that.

但我想說的是，克里斯，我的意思是，在大概的水平上，我們在汽車方面的投資有數億美元。因此，相對於 Skyworks 的規模，它不是一個重要的部分。但從絕對的角度來看，它確實有一些真正的成長機會，我們對此充滿期待。

I guess just a quick follow-up. In terms of the CapEx commentary and kind of where you sit from a utilization and capacity perspective, can you remind us where you ended up now, sort of in-sourced to outsourced? And what -- I guess, are you a target there? I guess, that means you are a target. But can you remind us of the details around in-sourced to outsourced [application]?

我想只是快速跟進。就資本支出評論以及從利用率和產能角度來看您所處的位置，您能否提醒我們您現在的情況是從內包到外包？我想，你是那裡的目標嗎？我想，這意味著你是一個目標。但是您能否提醒我們有關內包到外包[應用程式]的詳細資訊？

Yes, Ruben. As you know, we are not only a developer of world-class technology. We also manufacture most of that technology in-house, and that's a key differentiator. That's how we win at our largest customers, being able to secure the supply. As you know, we do all our gallium arsenide power amplifiers in-house. We do all our filters, TC-SAW and BAW in-house. And we do most of the very complex assembly and packaging and testing in-house.

是的，魯本。如您所知，我們不僅是世界一流技術的開發商。我們也在內部生產大部分技術，這是一個關鍵的差異化因素。這就是我們贏得最大客戶的方式，能夠確保供應。如您所知，我們所有的砷化鎵功率放大器都是內部生產的。我們所有的濾波器、TC-SAW 和 BAW 均在內部生產。我們在內部完成大部分非常複雜的組裝、封裝和測試。

Some parts of the business, like the business we've acquired from I&A and some other parts of the business, is being outsourced. But the vast majority is in-house. And again, that's a key differentiator for us. Having said that, we for many years have done major investments expanding our capacity footprint. Currently, we are focusing more on driving operational efficiencies into that footprint. That is creating additional capacity for us.

該業務的某些部分，例如我們從 I&A 收購的業務以及其他一些業務部分，正在外包。但絕大多數是內部的。再說一次，這對我們來說是一個關鍵的差異化因素。話雖如此，我們多年來進行了大量投資，擴大了我們的產能足跡。目前，我們更加重視提高營運效率。這正在為我們創造額外的能力。

And so going forward, the capital intensity will be much lower. You saw last year, it was on or about 4% to revenue. Going forward, we expect it to be in the mid-single digits as a percent of revenue. And so we have a tremendous amount of upside there that will further drive gross margin improvements and stronger free cash flow.

因此，未來，資本密集度將會低得多。你看到去年，它佔收入的 4% 左右。展望未來，我們預期其佔收入的百分比將達到中個位數。因此，我們有巨大的上升空間，這將進一步推動毛利率的提高和更強勁的自由現金流。

Our next question comes from Christopher Rolland with Susquehanna.

我們的下一個問題來自薩斯奎哈納的克里斯多福羅蘭。

This is Matt Myers on for Chris. So you guys have talked historically about 10% annual content increases. So I was curious about how we should think about it from this past cycle. And then again, looking into next year, do you think you can grow content another 10%.

這是克里斯的馬特·邁爾斯。所以你們歷史上曾經談論過每年內容增加 10%。所以我很好奇我們應該如何從過去的周期中思考它。再說一遍，展望明年，您認為內容可以再成長 10%嗎？

Well, certainly, our ambition is to continue to grow that content and diversify the level of content as well. And I think what you're going to see from Skyworks and it's already embedded in some of our numbers is a diversification within mobile. So it's not going to just be one or 2 products, as you know, but the breadth of the technology is right there for us. So we're going to continue to do that.

當然，我們的目標是繼續增加內容並使內容水平多樣化。我認為你將從 Skyworks 看到的是行動領域的多元化，它已經嵌入到我們的一些數據中。因此，正如您所知，它不會只是一兩種產品，而是技術的廣度就在我們身邊。所以我們將繼續這樣做。

You've already seen us demonstrate very well execution in getting into things like bulk acoustic wave, very, very tough technology, years and years of work and then the scale to actually produce. So those are the kind of challenges and opportunities that we like. I know we talked a little bit about automotive already, but markets like that have a tremendous TAM opportunity for Skyworks. And we're really just scratching the surface there.

您已經看到我們在體聲波、非常非常困難的技術、多年的工作以及實際生產規模等方面表現出了非常好的執行力。這些就是我們喜歡的挑戰和機會。我知道我們已經討論過一些關於汽車的問題，但這樣的市場為 Skyworks 提供了巨大的 TAM 機會。我們實際上只是觸及了表面。

So we're going to take some of that core technology and port it out into multiple applications. So it's really kind of a fungible asset. And look at the pools of opportunity in revenue that we can address. And I think it's going to be a great journey for us along the way. We're learning a lot more. Our teams together are executing in an outstanding way. And we're committed to growth and diversification and certainly matching the challenges with our top-tier customers.

因此，我們將採用一些核心技術並將其移植到多個應用程式中。所以它確實是一種可替代資產。看看我們可以解決的收入機會池。我認為這對我們來說將是一段偉大的旅程。我們正在學習更多。我們的團隊一起以出色的方式執行。我們致力於成長和多元化，當然也會與我們的頂級客戶一起應對挑戰。

Got it. That's helpful. And then on gross margins, I know you guys have had gross margins hit from lower utilizations, but curious where utilizations stand now versus 90 days ago. And where do you expect them to be in the next quarter? I would assume, down again, given the gross margin guide down. And how are you guys thinking about your outlook for gross margin into next year?

知道了。這很有幫助。然後在毛利率方面，我知道你們的毛利率因利用率降低而受到影響，但很好奇現在的利用率與 90 天前相比如何。您預計他們下一季的表現如何？鑑於毛利率指引下降，我認為會再次下降。你們如何看待明年的毛利率前景？

I mean the utilization of our factories is stable right now. On one hand, the demand is improving. But on the other hand, we are still further reducing our internal inventory levels. And so that will be played out by the end of December. In addition to that, as we alluded to in the prepared remarks, we have a little bit of a mix headwind. Now with broad markets temporarily a little bit softer due to the excess inventory, and that's why we guided slightly down in the December quarter.

我的意思是我們工廠的使用率目前很穩定。一方面，需求正在改善。但另一方面，我們仍在進一步降低內部庫存水準。這將在 12 月底結束。除此之外，正如我們在準備好的發言中所提到的，我們面臨著一些混合的逆風。現在，由於庫存過剩，大盤暫時走軟，這就是我們在 12 月季度指引小幅下調的原因。

Looking ahead, a couple of quarters, obviously, March and June is our seasonally slower quarters in terms of top line. And typically, you see a modest reduction of gross margins during those quarters. And then beyond that, if you look at the second half of the calendar year, September and December, we will start ramping up again, and you will see gradual improvements of the gross margins.

展望未來，顯然，就營收而言，三月和六月是我們季節性放緩的幾個季度。通常，您會看到這些季度的毛利率略有下降。除此之外，如果你看看今年的下半年，也就是 9 月和 12 月，我們將再次開始增加，你會看到毛利率逐漸改善。

Our next question comes from Tim Arcuri with UBS.

我們的下一個問題來自瑞銀集團的提姆·阿庫裡。

I had 2 quick ones. Kris, first of all, can you talk about the -- your largest customer as a percent of revenue in September?

我有兩個快的。 Kris，首先，您能談談您最大的客戶佔 9 月收入的百分比嗎？

Yes. The largest customer was -- in September was approximately 68% of total revenue. On a full year basis, it was approximately 66% of total revenue. Keep in mind that the vast majority of that is for the smartphone, but we also have great content in every other device that a customer brings to the market.

是的。 9 月最大的客戶約佔總收入的 68%。以全年計算，約佔總收入的 66%。請記住，其中絕大多數是針對智慧型手機的，但我們在客戶推向市場的所有其他設備中也有豐富的內容。

And then as a quick one, can you give us a sense, Kris, for what you consider -- off of this base, what you consider sort of a normal seasonal March would be? I think mobile is usually down 25% in March. Is that a reasonable number off of this base to sort of think about? I know that broad markets is kind of all over the place and going through digestion. But I guess I'm just asking about seasonality in mobile in March.

然後，克里斯，您能否快速告訴我們一下您的想法——在此基礎上，您認為正常的季節性三月會是什麼樣子？我認為 3 月份行動電話通常會下降 25%。考慮一下這個基礎上的數字是否合理？我知道廣闊的市場無處不在並且正在消化。但我想我只是問三月移動市場的季節性。

Yes. So we're not going to guide to March. But directionally, you think about it the right way, right? So -- and you were referring just to mobile, this is not total Skyworks revenue. But yes, mobile is down in that 20%, 25% sequentially in the March quarter from our top quarter, which is the December quarter. Yes. By the way, normal seasonality.

是的。所以我們不會指導三月。但從方向上來說，你的思考方式是正確的，對嗎？因此，您剛才指的是行動業務，這並不是 Skyworks 的總收入。但是，是的，行動業務在 3 月季度比我們的最高季度（即 12 月季度）連續下降了 20%、25%。是的。順便說一下，正常的季節性。

Our next question comes from Edward Snyder with Charter Equity Research.

我們的下一個問題來自特許股票研究公司的愛德華·斯奈德。

So Liam, I mean you're underrepresented in Android today and have been for a while. But given the pricing for many of the modules that sell in Android, especially relative to your largest customer, why shouldn't we consider gains in Android as an increased pressure on gross margin? Because I think it's widely understood that price competition is a bit more, and performance is a bit less in the Android chain than it is at your largest customer. So I'm just getting a feel, when you talk about diversification in mobile, if that's it. And then I have a follow-up.

Liam，我的意思是，你現在在 Android 領域的代表性不足，而且這種情況已經有一段時間了。但考慮到在 Android 中銷售的許多模組的定價，尤其是相對於您最大的客戶而言，為什麼我們不應該將 Android 的收益視為毛利率壓力的增加呢？因為我認為，人們普遍認為，與你們最大的客戶相比，Android 鏈中的價格競爭更加激烈，而且性能也稍遜一籌。所以，當你談論移動領域的多元化時，我只是有一種感覺，如果是這樣的話。然後我有一個後續行動。

Yes. I mean on the initial question, I agree with you on that. And I think as you know and you go deep in the technology and you see what we do, and so we're very, very capable to do more. We -- quite frankly, the attractiveness of the portfolio at the time was pretty weak. It wasn't as compelling as some other opportunities, and we deployed our resources in different places successfully. .

是的。我的意思是，關於最初的問題，我同意你的觀點。我認為，如你所知，當你深入研究科技時，你會看到我們所做的事情，所以我們非常非常有能力做得更多。坦白說，當時投資組合的吸引力相當弱。它並不像其他一些機會那麼引人注目，而且我們成功地將資源部署在不同的地方。 。

But now kind of taking a look at the landscape a bit, I think it's time for us to be a little bit more aggressive. We absolutely have the knowledge and the execution and the scale in our factories to do more. So it's been more of a choice, Ed, rather than a no-go from the customer. The customers want us in. So I think we're going to do a little bit more work there and get a little bit more aggressive. And I think it will be good for the company and our shareholders.

但現在稍微看看形勢，我認為我們是時候更加積極進取了。我們工廠絕對有知識、執行力和規模來做得更多。所以，艾德，這更多的是一種選擇，而不是客戶的拒絕。客戶希望我們加入。所以我認為我們將在那裡做更多的工作並變得更加積極。我認為這對公司和我們的股東都有好處。

Yes, that's been our impression too. So then if I could, on your largest customer, you had fewer modules than you had last time. And I know that's not where all the content is. Clearly, year-to-year, there's increases in existing modules. But we've done the teardown and a lot of this, especially the largest modules, look to be identical to last year. So one, where -- did you see a material increase in content in existing modules? And if not, two, I'm just trying to get a feel for where your content gains were in the latest round, mostly to try to get a feel for what's going to happen in the future, because if you're kind of giving up a few modules to Murata, mostly, I guess, why wouldn't that trend persist next year?

是的，這也是我們的印象。那麼如果可以的話，在你最大的客戶身上，你的模組比上次少。我知道這不是所有內容所在。顯然，現有模組逐年增加。但我們已經完成了拆解，其中很多，尤其是最大的模組，看起來與去年相同。那麼，您在哪裡看到現有模組的內容有實質增加？如果沒有，第二，我只是想了解一下您在最新一輪中的內容收益，主要是想了解未來會發生什麼，因為如果您願意付出我想，大多數是村田製作所的幾個模組，為什麼這種趨勢明年不會持續下去？

I mean we're going to do everything we can as we always do to create the best answer and the best outcome for the shareholders and our customers. And that's what we always do. I mean, there's -- as you know, our business and our company, we have a very, very extended bench of opportunities and technologies and know-how. We can do a lot of really interesting things. And we've created a lot of categories that just didn't exist.

我的意思是，我們將一如既往地盡一切努力為股東和客戶創造最佳答案和最佳結果。這就是我們一直在做的事情。我的意思是，正如你所知，我們的業務和公司，我們擁有非常非常廣泛的機會、技術和專業知識。我們可以做很多非常有趣的事。我們也創建了許多以前不存在的類別。

And so we'll lean on that and continue to leverage the high-class engineering talent that we have at Skyworks, the scale that we have, the customer relationships. Also, really happy to see that we're doing more outside the largest customer. A great customer, but we'd like to do more with others. So the setup for us is certainly going to improve in going through this cyclical low that we're all in, in the industry. But we look forward to executing and taking the steps again to continue to drive the RF technology.

因此，我們將以此為基礎，繼續利用 Skyworks 擁有的高級工程人才、我們的規模和客戶關係。另外，很高興看到我們在最大客戶之外做更多的事情。一個偉大的客戶，但我們希望與其他人一起做更多事情。因此，在經歷我們所處的行業週期性低潮時，我們的設置肯定會得到改善。但我們期待再次執行並採取措施，繼續推動射頻技術的發展。

Our next question comes from Matt Ramsay with TD Cowen.

我們的下一個問題來自 TD Cowen 的 Matt Ramsay。

Liam, I don't think it's a huge surprise given what's going on with so many of your peers with the industrial markets that broad markets is the source of the weakness. But I wanted to spend a little bit of time trying to unpack the different pieces of broad markets. So I would -- I mean, the [timing] business that you guys acquired from SLAB had wireless infrastructure and telco exposure to it. I'd be interested to hear about that given what's going on there. There's been Tesla unit weakness and consternation about EVs in China, and maybe that's turning. So there's some voltage isolation business in there. Just things that might have to do with IoT, given what's going on in some of those places. If you could just maybe -- and I'm sure I'm missing some subsegments for sure. So if you could just kind of walk through those different buckets? And are there any where we're closer to the end than the beginning of the correction is what I'm trying to get at.

利亞姆，考慮到工業市場上許多同行的情況，廣泛的市場是疲軟的根源，我認為這並不令人意外。但我想花一點時間嘗試解析廣大市場的不同部分。所以我想——我的意思是，你們從 SLAB 收購的[計時]業務擁有無線基礎設施和電信公司的業務。考慮到那裡正在發生的事情，我很想聽聽這件事。特斯拉部門的疲軟以及對中國電動車的恐慌，也許這種情況正在轉變。所以裡面有一些電壓隔離業務。考慮到其中一些地方正在發生的事情，這些事情可能與物聯網有關。如果你可以的話——我確信我肯定會錯過一些子部分。那麼你是否可以遍歷這些不同的桶子呢？我想了解的是，是否存在比修正開始更接近結束的地方？

No, I got you. I appreciate it. And I'm going to start with -- I think that it's going to get better for everybody in the industry. I really think that we're getting through it. But one of the things that's interesting -- and I'm really glad that you threw the question here. With Skyworks, we -- obviously, we have an incredible franchise built around mobile technology and adjacent technologies. And we'll continue to leverage that, and we're very profitable in those markets with our scale, with our execution and our know-how.

不，我找到你了。我很感激。首先，我認為對於行業中的每個人來說，情況都會變得更好。我真的認為我們正在渡過難關。但有一件事情很有趣——我真的很高興你在這裡提出這個問題。顯然，透過 Skyworks，我們擁有圍繞行動技術和相鄰技術構建的令人難以置信的特許經營權。我們將繼續利用這一點，憑藉我們的規模、執行力和專業知識，我們在這些市場上獲得了非常豐厚的利潤。

But I'll tell you what. We have, as I said, a tremendous opportunity to take the technology know-how that we have and the scale that we have and go into broader markets. So with automotive right now, maybe on a macro level, slow. But for us, we're not that big, where it's going to be a problem. So when you're really big and you're a 40% -- 30%, 40% share player and you get knocked down, it's going to hurt you. But when you're going from 5%, 10%, 15% to 20%, growing up into the markets like automotive -- you look at Skyworks 3 or 4 years ago, we wouldn't talk about cars at all, and now they're a meaningful piece.

但我會告訴你什麼。正如我所說，我們擁有巨大的機會利用我們擁有的技術知識和我們擁有的規模進入更廣泛的市場。因此，現在的汽車產業，也許在宏觀層面上，速度很慢。但對我們來說，我們還沒有那麼大，這會變成一個問題。因此，當你規模很大，並且擁有 40%、30%、40% 份額的玩家時，如果你被擊倒，你就會受到傷害。但是，當你從 5%、10%、15% 到 20%，成長為汽車等市場時，你看看三、四年前的 Skyworks，我們根本不會談論汽車，而現在它們是一件有意義的作品。

Adding the I&A business from Silicon Labs has only fueled more opportunities for us. So there's a lot of opportunities like that. We've got design wins in data center now. Didn't have that 2, 3 years ago. The WiFi portfolios are really strong right now. I think everybody in the industry is going to recognize that WiFi 7 is going to be a catalyst for significant growth, enabling a lot of broad categories from consumer to industrial. So we're really excited about that. We have the technology to do that today.

增加 Silicon Labs 的 I&A 業務只會為我們帶來更多機會。所以這樣的機會有很多。我們現在已經在資料中心獲得了設計勝利。兩三年前還沒有。 WiFi 產品組合目前非常強大。我認為業內每個人都會認識到 WiFi 7 將成為顯著增長的催化劑，為從消費者到工業的許多廣泛類別提供支援。所以我們對此感到非常興奮。今天我們擁有做到這一點的技術。

So I think that the difference is you've got mobile, and we all understand it, and everyone on this call probably has a really good view on that technology and that market. But when you go to the broad markets, the real broad markets, there are so many different end points. We're trying to pick and choose the right ones. But the good news is we're not heavily -- other than mobile, there's not a lot of concentration. So you get a big diversified technology play at Skyworks with scale, with technology know-how, with the ability to hit the fastballs with the toughest customers. And we can deploy that across multiple markets, and we're doing that today. But there's a long way from now on how we can get even better, and our teams are excited about that.

所以我認為不同之處在於你擁有行動設備，我們都了解它，並且參加這次電話會議的每個人都可能對該技術和市場有非常好的看法。但當你進入廣闊的市場，真正的廣大市場時，就會有很多不同的終點。我們正在努力挑選和選擇正確的。但好消息是我們的關注度並不高——除了移動之外，沒有太多的集中度。因此，您可以在 Skyworks 獲得大規模的多元化技術競爭，具有規模、技術知識，並且有能力與最難對付的客戶打快球。我們可以將其部署到多個市場，我們今天就這樣做了。但從現在開始，我們還有很長的路要走，才能變得更好，我們的團隊對此感到興奮。

Got it. Maybe just building on some -- I mean, we've been going through this correction in sort of the broader markets for a while now. And companies like yourselves have the balance sheet and the margin structure to sort of lean into it and bear it until it gets better. I imagine there are smaller competitors in lots of those diverse end markets that maybe don't have the balance sheet and the scale to get through. So I guess my question is, how active is the M&A funnel right now? And if it's not, why isn't it?

知道了。也許只是在一些基礎上——我的意思是，我們在更廣泛的市場上經歷這種調整已經有一段時間了。像你們這樣的公司擁有資產負債表和利潤結構，可以依靠它並承受它，直到它變得更好。我想在許多不同的終端市場中都有規模較小的競爭對手，他們可能沒有資產負債表和規模來度過難關。所以我想我的問題是，現在的併購管道有多活躍？如果不是，為什麼不是？

Well, it's one of those things. It's off until it's on, right? So clearly, the dynamics are pretty -- it feels like 10 years have happened in one, right? Lot of activity up and down, seeing some pretty wild swings with significant companies that are really strong players. So we are fortunate and we've worked hard to get there to deliver the kind of cash performance that will put us in position to do the right kinds of transactions.

嗯，這是其中之一。直到開啟為止都是關閉的，對嗎？很明顯，動態非常好——感覺就像十年過去了，對吧？很多活動上下波動，看到一些非常強大的公司的劇烈波動。因此，我們很幸運，我們一直在努力實現現金績效，使我們能夠進行正確的交易。

And as you know, at Skyworks, we're very, very picky. But I think in this case, honestly, I think there's more opportunities for M&A and the like than I've seen in a long time. This has been kind of a really interesting time in semiconductors and in other markets. And I think the strong are going to get stronger, and I think the weak are probably not going to do as well. And I know what side we're going to be on, so it's an opportunity for us to take advantage, leverage the balance sheet. You look at the free cash flow margins that are sustainable, I mean these aren't one quarter stats. And so yes, I mean it's -- we will continue to be very, I will say, picky, I guess, around some of these transactions because we know how good our company is. So -- but the opportunity to step up on that is definitely there.

如您所知，在 Skyworks，我們非常非常挑剔。但我認為在這種情況下，老實說，我認為併購等機會比我長期以來看到的要多。對於半導體和其他市場來說，這是一個非常有趣的時期。我認為強者會變得更強，而弱者可能不會做得那麼好。我知道我們將站在哪一邊，所以這對我們來說是一個利用資產負債表的機會。你看看可持續的自由現金流利潤率，我的意思是這些不是四分之一的統計數據。所以，是的，我的意思是——我想，我們將繼續對其中一些交易非常挑剔，因為我們知道我們的公司有多好。所以——但加強這一點的機會肯定是存在的。

And our last question comes from Vivek Arya of Bank of America.

我們的最後一個問題來自美國銀行的 Vivek Arya。

This is Blake Friedman on for Vivek. I wanted to touch on the China smartphone market. I know in the past, it's been hard to precisely nail down share between some of these [manufacturers] and others. So how do you make that determination in the future on how many orders to fulfill so there's no inventory issues thereafter? Just walking us through that process would be helpful.

我是維韋克的布萊克‧弗里德曼 (Blake Friedman)。我想談談中國智慧型手機市場。我知道過去很難準確地確定其中一些[製造商]和其他製造商之間的份額。那麼，您將來如何確定要履行多少訂單，以免此後出現庫存問題？只要引導我們完成這個過程就會很有幫助。

So in the China market, there is still some excess inventory, right? And -- but as you point out, it's a complex market. There's multiple players. Some of that is for the domestic market. Some of that is for the export market. They also have flagship models all the way down to mid level, low level, going into 4G and 3G. Obviously, we focus mostly on the flagship level, maybe one or 2 steps below that. That, of course, translate with a potential bigger focus on their export markets. But we also, of course, support them in their domestic markets as well. There is still some excess inventory. It has been coming down. It's improving.

那麼在中國市場，還是有一些過剩的庫存，對嗎？而且——但正如您所指出的，這是一個複雜的市場。有多個玩家。其中一些是針對國內市場的。其中一部分用於出口市場。他們還有旗艦型號，一直到中端、低端，進入4G和3G。顯然，我們主要關注旗艦級別，可能比旗艦級別低一到兩個級別。當然，這意味著可能會更加關注其出口市場。當然，我們也在他們的國內市場上為他們提供支援。目前仍有部分過剩庫存。它一直在下降。它正在改善。

Our revenue for 3, 4 quarters now with China Android has been up substantially on a percentage basis, not necessarily on an absolute dollar basis. But it has been up substantially on a sequential basis, on a relative percentage basis. And I think we are -- as Liam said, we're seeing light at the end of the tunnel. We are nearing towards the completion of the inventory correction. We have the design wins with those customers. We are ready to go. And I think you will continue to see that in the next couple of quarters. It's going to be a gradual process. I don't -- I personally don't believe in a snap back. It's a gradual process. And we are there, we are well positioned, and you will see us there.

目前，我們在中國 Android 業務上的三、四個季度的收入按百分比計算大幅增長，但不一定以絕對美元計算。但從相對百分比來看，它已經連續大幅上升。我認為我們——正如利亞姆所說，我們看到了隧道盡頭的曙光。我們即將完成庫存調整。我們的設計贏得了這些客戶的青睞。我們準備出發了。我認為您將在接下來的幾個季度中繼續看到這一點。這將是一個漸進的過程。我不——我個人不相信會突然回來。這是一個漸進的過程。我們就在那裡，我們處於有利位置，您會在那裡看到我們。

Got it. And then just following up as well, just kind of domestic competition within China. I guess maybe if you can walk us through how you've seen the developments there over the past 2 to 3 years. And maybe moving forward, what you think domestic competition will be like, I guess, 2 or 3 years from now.

知道了。然後就是跟進中國國內的競爭。我想也許您可以向我們介紹一下您如何看待過去 2 到 3 年的發展。也許展望未來，你認為國內競爭會是什麼樣子，我想，從現在起兩三年後。

Certainly, we have the technology to handle the broader markets there and the mobile markets in China. Ultimately, we think that there's an upside opportunity there, and the gap is widening from a technology perspective. So if you think about kind of the haves and have-nots there, there's a segment in China that really is lower end. It's great for some consumers, but it hasn't been a driver for us.

當然，我們擁有應對更廣闊的市場和中國行動市場的技術。最終，我們認為那裡存在著上升的機會，而且從技術角度來看，差距正在擴大。因此，如果你考慮那裡的富人和窮人，你會發現中國有一個確實處於低端市場的細分市場。這對一些消費者來說很棒，但對我們來說並不是一個驅動力。

But if you go back to the Vox ecosystem, a lot of opportunity for us to continue to drive that. We haven't been as aggressive as we should be there, and we will take a look at that again. But also, just throughout the other markets as well that we talked about, there's a lot of energy around mobility. There's a lot of energy around IoT. Some of the markets we talked about before, of course, at automotive were great. But the aperture continues to widen. What happens with us is when we penetrate a segment, we go in hard. And this is where the balance sheet, the tenacity of the team, the scale of our operations, where a lot of our stuff is done in-house, makes us very unique. And it's an opportunity for us to continue to demonstrate the growth curve as well.

但如果你回到 Vox 生態系統，我們有很多機會繼續推動這項發展。我們並沒有像我們應該的那樣積極進取，我們將再次審視這一點。而且，在我們討論的其他市場中，移動性也充滿活力。物聯網蘊藏著巨大的能量。當然，我們之前討論過的一些汽車市場非常棒。但光圈仍在持續擴大。我們的情況是，當我們滲透到一個細分市場時，我們會努力進入。這就是我們的資產負債表、團隊的堅韌、我們的營運規模以及我們的許多工作都是在內部完成的，這些都使我們非常獨特。這也是我們繼續展示成長曲線的機會。

Ladies and gentlemen, that concludes today's question-and-answer session. I'll now turn the call back over to Mr. Griffin for any closing remarks.

女士們、先生們，今天的問答環節到此結束。現在我將把電話轉回給格里芬先生，讓其結束語。

Thank you all for participating on today's call. We look forward to talking to you in upcoming investor conferences during the quarter. Thanks again.

感謝大家參加今天的電話會議。我們期待在本季即將舉行的投資者會議上與您交談。再次感謝。

Ladies and gentlemen, this concludes today's conference call. We thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與。您現在可以斷開連線。