Like that, I liked all that. Maybe you could just talk about, you know, that last year, just any big overview comments, and then we'll go into Q&A.
Yeah, it's been a remarkable year. Thanks. It was about a year ago. This is my first conference I came to as CEO. You kinda look what's happened over the past year, and it's kinda been amazing. I would say I'm pleased but not satisfied. You know, if you look over the past four years, I think we've done a good job of continuing to, you know, do what we say we're gonna do. I think we've got four consecutive quarters of beaten raise. I think I feel good about how we've managed the business, how we've done that. I think we changed the trajectory of content at our largest customer, which was a major overhang on the stock.
n some steps to consolidate some of the factories in there to help give us some gross margin. I brought in some new leadership from that side. Then, you know, not least, not which did certainly the biggest acquisition in the company's history and created a very compelling opportunity to create some value. I think it's been a good, it's been a good, you know, year or so. But then you have, you know, you have the overhang of, okay, who would have thought there would be a war in the Middle East? Who would have thought there would be tariff day? Who would have thought there'd be memory apocalypse and SaaS apocalypse and all the other things
You know, we're just trying to put one foot in front of the other, deliver great products, and I really believe that, you know, being at the center of wireless technology, the world is wireless. We're gonna build great products with great technology. Just focus on that, and the rest will take care of itself.
I wanna get to the apocalypses, but just from a bigger picture standpoint, you know, RF as a growth driver, there's been a persistent drive to diversify the business for you, for Skyworks as well.
Yeah.
You also feel like RF's a good growth driver. It's just customer concentration, things like that are a reason to-
Yeah.
To think differently. Can you talk about that? Do you still believe that there's solid growth in the smartphone space as well as in the?
Yeah, I probably believe it more now than I did a year ago. Let me tell you why. Like, first, you really look and you go, okay, the world is a wireless place. The Earth will not be covered in data centers, and the way that this information is going to get out is going to be wireless. I look at all the technology that we have coming down the pipe that we can see through 2030, not including 6G, not including some of the power space, not including that, and I love the specialized technology we have. The combination with Qorvo gives us gallium nitride, GaN, which brings us power side, RF side.
I mean, I just think we're in a really great spot, and I think we'll just, we'll just play our cards and drive that out. I think that's gonna be, that's gonna be a great, a great spot to be.
Great. Well, maybe if we could talk about the smartphone space in the short term, maybe starting with the memory apocalypse that you mentioned. You know, it seems like so far we're all pretty consistent that there's been some turbulence in China where you guys don't play as much, Qualcomm highlighted that.
Mm-hmm.
Other parts of the market are okay. You know, what's your line of sight there? Do your customers have enough DRAM? Will they have enough DRAM 6 months from now?
Yeah. You know, it's something I think we all still have the scars from the COVID time where we had all these double and triple orderings and things like that. I think we are being cautious. We're taking a very close eye on it. I will say, as I mentioned on my earnings call, we have not seen that. You know, certainly our largest customer, if you look at their earnings call and what they did, they actually had very strong unit demand and continued to drive that. We think they're actually gaining share in some of the spots. The CEO of that company is a supply chain individual, so you might imagine they're using that to their advantage. We have not seen it, and even in our broad markets space, we continue to see really strong.
Is there some scenario that we don't? Yeah, okay. Well, we're keeping our inventory low. We're watching the book-to-bill carefully. We're managing as best we can, and so far we've been okay.
Yeah. Your focus on the premium tier-
Yeah.
Should buffer you to some degree. I mean, I feel like if we do see builds getting cut, it'll be there on-.
Yeah, there was some news in, at the, you know, in Las Vegas time, right, where a lot of the cell phone guys, particularly in the, in the emerging markets in China, took their builds down by a lot. If you look at what our largest customer's done and where we've got other exposure, right, it's in the premium tiers, and we've seen, we haven't seen that.
Does it come back to you in the sense of the smartphone guys asking you for price concessions to sort of make room for memory?
No. You know, for better or worse, particularly for our largest customers, right, we negotiate the pricing yearly. I mean, what I joke about that is, you know, if you're a car manufacturer and the price of the transmission doubles, it's hard to ask the spark plug guys to give their spark plugs away for free, right? I mean, that's kinda what you're talking about. There's no chance we could in any way offset any of that. Where we do see some of, I'll say inflationary pressures on the input cost side, right? Similarly, Once we negotiate it, we don't have that opportunity to raise a discount, but it's also difficult for us to pass through.
In some ways, I feel really good if you look at our gross margin guidance because you can imagine we've seen inflationary cost pressures, things like gold, things like assembly tests, things like PCB, all the things you read about. We're certainly seeing some of that. I think we've done a good job of working with our supply chain and our partners to kind of balance that. So we've done a pretty good job. Where we see that price pressure is mostly on the input cost side.
Okay. Okay. Helpful. Thank you. With regards to your biggest customer, Apple, you know, you talked on the earnings call about kind of a flattish content in the next round. Can you talk about the puts and takes there? I know you aspire to get it back to growth, but it seems like stabilization is a good interim step.
Yeah. I think that... Look, I mean, it's a, it's a hyper-competitive market. I would say I'm, I am pleased but not satisfied. I think we can do better. I'm, you know, I honestly think we can do better. I think there are some things we did well this time, but, you know, I think that there's more, more upside ahead for us from that if we continue to execute very well. Some of the, you know, investments we made in the R&D space a couple of years ago and last year, right? I don't think we've seen those fully play out yet. I think that changing the slope of the curve was incredibly important to do that.
I think we've done that, I think that we're trying to, you know, get ourselves. One thing is just to zoom out a little bit and you look at, you know, our largest customer, just take the biggest one. They've talked about their installed base being, you know, 2.5 billion units. You pick well north of 1 billion is mobile handset devices. You kinda do the math of what you think the RF content is there, and think about that as our opportunity pool that gets refreshed every 4 years, right? That's really what we wanna do.
If you look at the combination with Qorvo, really what enables us to do, and it's a little bit counterintuitive because what it should do, even though we get more business there, we actually volatility should go down because the single-socket risk goes down. If you end up having a massive TAM with some tailwinds behind us in terms of 6G AI enablement and having a large customer that's gaining share in the iOS ecosystem, it should end up in a pretty good spot for us.
How, you know, the postmortem on what happened before you got here, you lost half of a important socket to Broadcom. Is that sort of the steady state, is that you sorta share that socket? Is that the normal state of affairs in any areas where you see opportunity for growth or potential for loss?
Yeah, good question. I mean, look, it is a. I wanna be, you know, to state the obvious, right? The customers, whether it's largest one we have or other customers, they're not changing their behavior because of us, right? They're gonna continue to motivate and pick those sockets. It behooves us to develop competitive products. Our customers are constantly gonna look for alternatives, multiple sources, just like we do. It's our job to make it super difficult. Fine, if you wanna have an alternate product that performs worse or is more power or whatever, then please go ahead and do that, right? It's our job to make it difficult for them to do. No one should confuse that they're gravity, right? There's only so many places in the world.
If you're a semiconductor company like us, you pick whatever normal number you think for iPhones, $250 million, $270 million, whatever, there's only so many places in the world where you have that kind of TAM that ships every single year. Right? That gives them a certain amount of just a competitive environment that exists there.
Yeah. Now you know what the modem is for that customer going forward. There's kind of a coalescing around the internal modem platform.
Mm-hmm.
Does that help you? Does that help you both from the standpoint of inertial momentum, but also just to sort of have a clear insight into this is the ecosystem.
I think that does because I think, you know, that there's obviously less duplication of effort on both sides, for that. I also, you know, what I'm excited about as well is that, and we really haven't talked about it. If you look at having the combination of the end-to-end signal chain from some of the receivers and transmitters all the way out to the antennas, I think there's some things we can do having access to the entire RF chain that we didn't have before. I think the clarity on the internal platform is helpful. I also think having the entire RF signal chain is helpful. We've seen evidence of that, of the benefits of that at other large customers we have where we have a more complete picture of that. I'm excited about that.
That will take, you know, years to develop, right? We've got to get in there, we got to do the innovation, we got to do some of that stuff.
Yeah.
you know, look, that's what I love. I love technology where it's hard, it's complicated, it's difficult, it's gritty. That's where I make difference.
Yeah. Yeah. Okay. You know, you talked about coming here a year ago, we need to have technology leadership.
Mm-hmm.
You know, it's not that Broadcom got better than you, but they got on par.
Mm-hmm.
That allowed you to share the socket. You know, where do you stand now with regards to that? Are you rebuilding that leadership?
Yeah. I feel good about our technology. I feel good about that. I know I'm gonna say something here which is a little bit counterintuitive. I actually love competing with Broadcom. They're smart, they're aggressive...
Yeah.
They've got good technology, and you gotta win having the best products.
Great. They don't cut price.
Yeah. Let's go.
Let's go. Yeah.
Let's go compete. That's the place I wanna go be.
Yeah.
I love that. Let's go do that. Let's suit up and go do that. That's the best place to be. I feel good competitively. We can do better.
Yeah.
I'm not happy with where we are. Let's do better.
The capabilities you have, and I'm not an RF engineer at this point, but you've had this big push into Bulk Acoustic Wave, and you've-.
Mm-hmm.
You have a lot of the capabilities that they have.
Yeah.
You know, you're satisfied with the technologies that you have to fight that battle?
No. I always wanna get better.
Okay.
I mean, that's part of When I look out, I mean, we have visibility into stuff going out till the end of the decade. I'm excited about what we can do. I mean, I get shivers talking to you about it. That's why I believe this is a great place to be. While everyone's focused on other stuff right now, we're just gonna focus on delivering great technology and focus on that.
Maybe we can talk about Android a little bit. You know, you've said that sort of Apple's probably best positioned to deal with these memory situations, but I think Samsung's pretty.
Yeah
...positioned to deal with that as well.
Yeah, you would think.
You hope.
You would think.
I know there is a co-op petition between those groups, they should be able to at least secure enough to build phones. you know, how do you feel about your two big Android customers, and the opportunities around the Android ecosystem?
You know, I do think that. You know, I would say they're different. I mean, one of, one of our large customers, U.S.-based large customers, we've had a very collaborative relationship with them for many years, and they actually value what we do. They are willing to collaborate and work with us, and frankly, pay for the performance and capabilities that we're able to give them, which enables them to differentiate their phones. Frankly, we feel good about that. They do things differently in a way that allows us to put some of our best and brightest people on there.
I feel good about that, and I think that, you know, some of them are also starting to see that the endpoint can be a very strategic element for AI because that's the way that most people are going to access AI. It's going to be through a device like this. I think that some of them are viewing it as... Having a really good product there is a competitive advantage. I feel good about that.
Can we talk about that a little bit? I mean, this time last year, that was kind of the hot topic was, you know, Edge AI. We're gonna basically replicate what happens in the cloud on your phone, and that's clearly not the case. The enthusiasm has come down a little bit. You're absolutely right that the AI happens at the device level, that there have to be Edge AI capabilities. You know, is that gonna drive content up over time? Kind of give us a picture of what you're seeing with regards to that.
When we zoom out, I mean, what we have started to see is. I'll give you an example of what we've started to see. We started to see more emphasis on the transmit side versus the receive side. We've seen that out there, and there's a couple things happened with that. One is because it turns out the transmit side is really what defines how far away from you can get from the tower. Think about a speaker and a microphone. The tower itself can have a very large microphone, and you don't need a big speaker to hear the microphone. On the flip side, this can only have so big a microphone, and so the speakers on the receive side need to be very sensitive. The louder you make the microphone, the better you're gonna get.
We see a lot of work. Now, the challenge, of course, is that that produces a lot of current, right? It takes out the battery. That's why there's a lot of RF coming in there. Some of the technology we have is just amazing. I don't know whether some of you remember, like, the double bounce thing, right? That's where the MIMO comes in. You remember the trampoline, you're doing the double bounce?
Mm-hmm.
Well, there's like that kind of technology that exists on the wireless side that goes more than two. Some of the technology we've seen is on the transmit side, and we think that is not only related to 6G but more upload capability, right? We're starting to see some of that.
Okay. you referenced, you know, I mean, Google's obviously a leader in AI.
Mm-hmm
... and smaller in phones, but it seems to be doing a lot to bring those features to the phone.
Yeah. I actually, you know, I think they've done a really good job. Actually, some of their products are very competitive. I think they're investing there to make sure that Android doesn't get relegated to just the bottom tier. They wanna have a Halo device. I think they're pretty well competitively positioned if you look at.
Yeah
where Gemini is a relationship with their largest customer. I personally think they're in a pretty good spot.
Yeah. A lot of Skyworks content in their phones.
A lot of Skyworks content in this. Yes, correct.
Okay. Great. Maybe shift gears a little bit, talk about Qorvo.
Mm-hmm.
You know, what led you to that decision? You've sort of been on a path where you were looking to diversify but also saying there may be opportunity to grow this way as well. You know, what led you to move in this direction?
You know, I'd known Bob since before I took this job. I'd known him for several years. Just standing back without the benefit of actually being inside, I actually thought the companies would be doing well together. It was one of the ideas. You know, when we sat here a year ago-
Mm-hmm
it was already in my brain to do that. and the more I got into it, the more I realized, oh my gosh, how complementary these products are. Everyone just really focused on the overlap, and there really isn't as much as people think. I think that I looked at it and go, "Wow, you know, the combination of these two companies, if you look at it together, builds a $5.5 billion mobile business that should have an improved margin profile, more stability, and opportunity to integrate across the entire signal chain." We build a $2.7 billion non-mobile business that gets exposure to areas like defense and brings the GaN technology for both RF GaN and Power GaN.
You look at the combination being north of 50 points of gross margin, which is a big plus there, 30 points operating income, growing nicely. I think it completely changes the shape of the company and, frankly, puts us on a different trajectory that we can go do other things. The financial profile of it when we're done is gonna be attractive. For me, I don't think there's another better move that I could have made. You know, and I just I can't wait to get it done.
I mean, the cost synergies are pretty clear, but on the revenue synergy side, you know, it seems like the when you get into these, you get all the arb conversations about, you know, what would make the deal happen or not happen.
Yeah.
This is actually a good deal whether both companies are gaining content or both companies are losing content. It's still better to sort of put the combination together. You know, do you have opportunities then to have higher smartphone content in addition to the broad markets capability?
100%. We have not. If you actually look at that, I think I've tried to be, I tend to be a meat and potatoes kinda guy when, I mean, just say what I'm gonna do, and I try and avoid flowery stuff. What we have not underwritten, we haven't really underwritten any significant revenue synergies at all, shame on us if we aren't able to figure that out. We haven't underwritten any sort of multiple synergies either. Shame on us if we haven't been able to get that with gross margins higher and stability higher. I think we've laid out. I think we have a high degree of confidence in the synergies, we can deliver them.
I don't think if you look at how it's split between OpEx and COGS, I mean, none of them seem to me to be aspirational. I feel really good about it. You know, regulatory is proceeding as we expected. Shareholder vote was overwhelmingly supportive it, I think we're kind of moving through the pendency period, and all the fun that's involved in that.
Yeah. On that regulatory side, you know, are there any hurdles remaining? Is China a factor? Is their approval? You know, your biggest customer seems to be okay with it, which seems good. Just anything you can help us with on that.
Yeah, look, I would say that the regulatory process is proceeding as we expected. We're well advised. We're having constructive dialogue with everybody. Semiconductors are a very visible space these days. We've kind of gone from the shadows into the spotlight, so everybody's looking at that. Not unexpected. I don't think there have been any surprises. I don't think anything has changed my view on our ability to get this closed, and, we'll continue to work closely with our advisors to get it done.
Okay, great. If you think about this business mix after this deal is closed, you know, what do you think is the optimal mix between smartphone and broad markets? Is diversification away from the biggest customer a priority in the way you think about this?
The short answer to that question is yes. We have a problem, a problem, and I say that in air quotes for the, you know, of luxury. We have been working with that largest customer for 20 years. Probably, I don't know this to be a fact, but I gotta believe it's true. I don't think anyone shipped more RF components to them than we have. When you think about how luxurious that, think about the challenge we would have if I didn't have that largest customer. We've built fantastic products. We've engaged with them for multiple decades. I think probably certainly in every wireless product that they've probably ever made. Now they've become a huge customer of ours. How do you make something big look smaller? You put something bigger next beside it.
I think, you know, we have to continue to grow our non-handset business, continue to drive the volatility down. I think what we're trying to do is get that volatility down so that we get some more stability there, get our gross margins above 50%, and then continue to diversify the business to help bring some more stability and predictability. I think all of those things will happen. Yes, we're gonna continue to be focused on growing our non-handset business, and I'm excited about having, you know, a good platform to do it with when we close with Qorvo.
I mean, I've made this comment to you before, and you probably don't like it, but I feel like it's annoying to have a low multiple because you have high customer concentration. On the other hand, there's opportunity implicit in that. You can buy back stock every year at a low multiple. You can grow earnings that way. You can just grow your earnings for a decade as you did before when you just gained content at that customer year after year after year. Meanwhile, diversification assets are expensive, right? When I look at some of the recent transactions, they've been, for a company like yours, the math would be a little bit more challenging than the Qorvo math. Just how do you think about those trade-offs? I mean, is it...
I mean, Apple won't be as large a customer at some point, but they'll still be a really large customer. They'll still be the first question I have to ask you.
Yeah.
You know.
Of course.
Year- to- year, so.
Yeah, it's a good question. First off, I feel really good about our capital structure and our balance sheet to be able to have some flexibility to do that. I think that historically the company has been the disciplined allocator of capital. Certainly, if you look at the, even the year that I've been here, we've probably returned $800 million to investors via share buybacks and $400 and some million in dividends. I also think that historically the company's done that, and you could argue that maybe there should have been some more allocation to M&A to help diversify the business, right? I think that we took one step here with Qorvo. I do think that some of the, I can't decide on what the multiple stock will be.
All I can do is kinda execute and deliver and continue to get... I do think, however, that the multiple should improve. If history is any guide, if we get our gross margin over 50, we drive some more predictability in the business. People have belief in the long-term position where we go. We're kind of in a, you know, a more focused industry from that side. Right, I'm optimistic. None of that is baked into the numbers. That's kinda how I look at that. You're right, it does, you know, it does limit. I mean, I, I talked to some of my investors before. Sure, I can go off and buy some sort of data center play at 30x revenue multiple that wouldn't make a darn bit of difference.
Yeah.
-to the company at the end, right? That's a difficult, that's a difficult place to be.
Yeah. Okay. Helpful. Speaking of the broad markets business, you've had a good run there, eight quarters in a row of growth. Can you talk about what's driving the strength there as, you know, a combination of industry recovery but also some nice growth drivers? Can you give us an overview of that?
Yeah. The industry recovery, you know, some of the products we still, I mean, we're still having inventory hangover from a while ago. That seems to be behind us now. I mean, our biggest growth driver is Wi-Fi 7. The migration there continues to be, that's probably the biggest play there on that side. Automotive's been a nice driver for us. You know, the funny thing is we're on the grand scheme of automotive, we're still a small player. I mean, we're in the nice spot. We're in the vehicle connectivity, vehicle entertainment, this kind of stuff. Independent of combustion engines and where it goes, do you see yourself having more or less connectivity out in time? Well, probably more. Do you see it becoming software-defined vehicles and all the other things we're at?
That seems to be going pretty well. You've got to got the industrial data center piece, which is, you know, continuing to grow there as well. When we get the Qorvo piece, you get the defense space.
Mm.
I feel good about those.
I mean, it seems like pretty clear that the case study of a successful acquisition was the Silicon Labs connectivity business. Like, you've gotten a lot from that.
Yeah. I think that was good, you know. I think that was a good place to be. I think that, you know, the Qorvo, you know, combination will be another good step for us. You know, we should be in a dramatically different place. I think, you know, both companies are gonna benefit substantially from that.
Great. Can you talk a little bit about the Wi-Fi 7 cycle? You know, where are you in that? How much of a growth driver will that be for you?
I think we're early innings in that. I think that we're still probably in the third inning of that, I would say, of a nine-inning baseball game. I think we've got, you know, the demand there seems to be really strong. Improved latency, improved bandwidth, improved Power management. I mean, a lot of stuff going on there that I think is going really well. That demand seems to be very strong. We've already started work on Wi-Fi 8, so that's why I feel confident that that one is a long-term driver there from that side. We're seeing both on the CPE side with, you know, in the industrial side as well, right? That one seems to be going pretty well.
The broad markets business, particularly once you integrate the equivalent business at Qorvo, you have pretty good growth opportunities. You don't need to do more acquisition to bolster that, but you're willing to if the opportunities are there. Is that?
I think we're gonna be disciplined. I mean, look, I think that, you know, we still need to continue to diversify the business, right? Even when we're done with the Qorvo situation or Qorvo combination, we'll still have, right, more than 50% exposure to the one customer. A disproportionate percentage of that is in the handset space. I do think we're gonna continue to emphasize that growth. That growth should, as our broad markets continues to grow, that mix will come down, I still think we're gonna be looking to diversify there as well. I think it's just an important point for us.
Okay, great. On some of the financial questions, can you give us an update on the factory optimization initiatives that you've been talking about and kind of where gross margins are gonna be down the road with the two combined companies?
Yeah, I mean, so we've, you know, certainly both of us have taken some self-help process along the way, right. You've seen us make a decision on our Woburn facility. Some of the manufacturing decisions take a while to feather into the P&L, right. Because you've gotta, you can't just shut them right off. You've gotta, I'll say, run them out over time. You know, we certainly think when we look at the gross margin of the combined company, we put out a model there of 50%, 55%, and how do you get there. Well, if you look at the mobile space, you've got mix improvement in the mobile space as Android, which is structured lower gross margin, goes down. You're gonna be offset by a higher mix within the mobile space.
You've got the mix of the broad markets versus mobile. The combination should be higher broad markets than mobile, you've got another tailwind there. You've got some structural things we can do on the COGS side with the combination to drive margins there. We feel very comfortable in the 50%-55% range, which I think puts us in a different tier of company we had before.
Yeah.
That's how we look at that.
Yeah. All right. That's great. Can you talk about the R&D priorities, how much of it will be going towards smartphone versus new markets?
Yeah, look, I mean, wireless, I would say wireless is gonna continue to be the wise one. Reason I pick that is, right, there's lots of different applications. The handset's obviously the biggest one, right? You know, there's a lot of overlap there in terms of base technology with the Wi-Fi side, with the defense side. I think that'll continue to be a major push there. Frankly, we need to continue to be competitive, right? I mean, if I, again, I go back to look at the install base of, right, of where we are today, both in the iOS side and the Android side, and you look at that, we talked previously about the fact that the refresh rate now of the phones is probably the longest it's ever been.
Well, we're starting to see that getting pulled in. Well, that's a huge tailwind for us too, because at one point x billion units, if you take a refresh rate of 4 and a half years and you pull that down to 4, just do the math alone, that's a lot more units that happen. I think that we need to continue to be competitive. We compete with some other giants out there, so we need to continue to be competitive. That'll be number one. Number two will be continue to, you know, emphasize the diversity play. I really like that we're picking up some GaN space in the defense side, so both Power GaN and RF GaN. That's gonna be an area of emerging priority for us.
You mentioned 6G a couple times. I mean, that timeframe's still a few years out, I think. Can you just talk about is there a big sea change to RF content? Anything, any big opportunities you're looking for?
Historically, we've seen, you know, dislocations around some of the G side. I'm not sure that this is gonna be any different. I would say I think one of the things that we see as potentially different is that during the 5G cycle, I think a lot of the operators, there was just tremendous amounts of capital. I think there's gonna be more requirements put on the end devices this time, which should benefit us as well. You know, there's still some emerging work to be done on that side.
Okay. Great. I have one more question, and then I'll open it to the audience. Can you talk about the use of cash? I talked about buybacks and things like that, but obviously you have the acquisition now. You know, but you've been in this very strong cash flow environment. How do you think about uses of cash?
Yeah. Look, I mean, clearly number one use of cash is to continue to invest in our core business, right? We have got to kinda maintain and grow leadership there. Second, obviously, is the aspect of capital. We need to continue to invest in the capital to run our factories and do those kinds of things. you know, today we have a dividend. I would argue the dividend rate is probably high. Now, some would argue that's because our stock price is too low, which I agree with as well. dividends are obviously something to do. We'd be doing share buyback and M&A. You know, I think that evidence would suggest we're putting a little bit of increased priority on M&A just because I think we need to change the shape of that company, right?
We, you could argue over the past 10 years, we've been incredibly disciplined about returning a lot of capital to shareholders, but haven't really changed the shape of the company at all. I think the Qorvo deal is an example of us using a combination of cash and equity to kind of help change the shape of the company. That's how I think about that.
Great. Thank you. Let me pause there and see if we have questions from the audience. If not, okay, well, maybe we'll close there. Just if any closing remarks, anything you want us to think about with the opportunity with Skyworks in the next-
No. Thanks. I, you know, I guess when I look at the combination of Skyworks and Qorvo, you know, put together you have a, you know, a very significant mobile handset business. Should have less volatility, stability through the cycles, less single-socket risk, innovation across the signal chain, and be a leader in the RF space, coupled with a very attractive non-handset business that is exposed to nice areas like Wi-Fi, defense, aerospace, and industrial. Combination being north of 50 points of gross margin, 30 points operating income, throwing off a nice position of cash, and being in a position to continue to grow outside of that. I'm excited.
Great. Well, thank you very much.
Great. Thank you.