来源：半导体风向标
会议时间：2020年5月7日
罗伯特·布鲁格沃思
谢谢道格，也感谢大家加入我们的电话。我们将从今天的三月财报季开始，重点介绍推动我们在移动产品以及基础设施和国防领域表现的因素。我们将讨论COVID-19，并介绍为支持员工和客户而采取的一些步骤。然后，马克将提供有关我们财务和运营的其他详细信息。
Qorvo的三月财报季表现非常强劲。受5G手机和基础设施，国防，Wi-Fi 6和物联网的广泛需求推动，收入为7.88亿美元。毛利率为49.6％，比上一季度和去年同期均有增长。
在本季度中，我们完成了两项收购，Custom MMIC和Decawave。 Custom MMIC扩大了我们在国防和航空航天领域的GaAs和GaN RF产品方面的领导地位，而Decawave将我们定位为超宽带解决方案的领先提供商，这些解决方案可为智能手机，汽车和物联网提供近距离感知、安全支付和安全访问。我们很高兴将Qorvo规模添加到这两个信誉卓著的高绩效团队中，以继续取得成功并加速发展。
从三月财报季的总体来看，我们的业绩反映了整个Qorvo团队的出色努力。我们的员工表现出非凡的精神和韧性，我为他们在充满挑战和动态的环境中表现出色的能力感到自豪。
我们在1月29日的业绩交流电话会议上表示，我们预计COVID-19的影响将延续到三月财报季之后，并且会影响供求双方。3月3日，随着宏观状况的恶化，我们更新了我们的指导。为了保护我们的员工和运营，我们从一月份开始采取预防措施。然后，我们成立了一个跨职能的COVID-19响应团队，作为我们全球业务连续性计划的一部分。
我们在亚洲的早期努力的成功为我们的全球运营树立了榜样。我们在全球范围内制定了最佳实践并暗示增强了安全协议。其中包括温度扫描，社会隔离协议，旅行限制以及对任何可疑或确诊病例的严格筛选和检疫过程。
在我们的工厂和工程实验室保持开放的同时，我们成功地将数千名员工转移到了在家中工作。由于这些努力和其他持续不断的努力，我们的业务运营没有受到任何实质性干扰。我们正在保持产品开发进度，我们的设计和工程团队继续开发突破性技术，并且我们与客户的合作非常紧密。
在此背景下，我将按市场回顾我们的业务绩效。在移动领域，我们的5G解决方案的出货量环比增长，并且5G设计活动持续增长。
Qorvo高度集成的高性能5G和LTE-Advanced Pro解决方案正在帮助我们的客户提高性能，减少产品占地面积并加速产品上市。我们对5G的内容增长特别满意。像我们的5G超高带宽解决方案这样的产品已在客户和所有领先的5G芯片组上采用。
在本季度中，我们帮助三星的Galaxy S20平台实现了一系列高性能和高度集成的组件。其中包括我们的中高频段和超高频段5G解决方案。我们还为领先的5G智能手机制造商提供了完整的主要途径，包括我们的低，中高和超高频段集成解决方案，以及我们最近推出的Wi-Fi前端模块，交换机，调谐器5G智能手机。
我们对早期采用5G的观点没有改变。尽管我们对智能手机的总体看法是在2020日历年下降10％以上。我们仍然预计，今年的5G智能手机将略低于我们3月初的指导水平。
为满足未来的增长需求，对广泛的工业应用中的数据分析，远程管理和系统级优化（例如抄表和资产跟踪）的需求，推动了对通过蜂窝物联网进行全球远程连接的需求。
Qorvo在蜂窝物联网领域享有广泛的覆盖范围，从我们的离散射频解决方案组合到高度集成的模块，以及我们与Nordic Semi的合作伙伴关系，都可用于大批量Cat-M和窄带物联网应用。同样，对邻近感知和增强无线安全性的需求，也推动了超宽带技术在上下游感知中的应用，包括智能手机，汽车和物联网的安全支付和安全访问。
随着市场的发展，我们正在满足不断增长的需求，并且我们将Decawave的突破性技术与我们的规模和客户范围相结合。我们今年将要生产的新一代超宽带产品具有Decawave先进的无线电技术与前端技术的结合，以实现，增强到达角能力。
在蜂窝基础设施市场中，为支持6 GHz以下的5G网络，GaN高功率放大器和小信号组件的出货量顺序增长。在大规模MIMO天线的推动下，对Qorvo产品的需求强劲。
我们通过GaN放大器与多个客户互动，并且我们已准备好从这一多年的技术升级周期中受益。在我们的连接和宽带业务中，我们加快了Wi-Fi 6解决方案的出货量，并赢得了安全的电缆放大器设计，以支持增加的家庭数据传输。
在本季度中，我们扩展了Wi-Fi 6解决方案的全球客户群，其中包括前端模块和BAW滤波器。在国防市场，我们对100毫米和130毫米至131毫米波宽带功率放大器进行了采样。这些产品扩展了我们针对毫米波应用（包括SATCOM雷达和电子战）的基于GaN的固态放大器的产品范围。
在多年的防御计划的推动下，我们看到了强劲的增长，对Custom MMIC的收购进一步扩大了我们在该市场的能力。在可编程电源管理中，我们通过差异化的解决方案在数据中心，计算和游戏机中获得了增长。
Qorvo的可编程IC减小了解决方案的尺寸和成本，提高了系统可靠性并缩短了系统开发时间。我们为广泛的工业，商业和消费市场提供服务，在数据中心的推动下，当前的需求特别强劲。
在该季度结束后，我们推出了高灵敏度的即时诊断诊断测试平台和盒式磁带，并利用声学共振器技术将其用于兽医应用。Qorvo的诊断平台有潜力通过在护理点为兽医诊所提供中央实验室性能来改善兽医诊断。
在六月财报季，环境仍然充满挑战和多变。尽管对全球供应的限制有限，但鉴于COVID-19的规模，持续时间和地理范围不确定，全球需求的影响仍不清楚。
但是，我们有信心，我们终端市场的长期驱动力仍然具有吸引力。我们相信我们的技术和运营比以往任何时候都重要，因为我们支持5G手机和基础架构以及国防，Wi-Fi 6和IoT的全球部署。
我们还在可编程电源管理，基于超宽带的精确定位和即时诊断测试中添加了新功能。我们运作良好，致力于在支持客户的同时保持员工，合作伙伴和社区的健康。
我为团队感到自豪，并感谢他们的努力并帮助世界保持联系。
因此，我会将其移交给Mark，以获取第四季度的更多色彩以及我们对六月的展望。
马克·墨菲
谢谢鲍勃，大家下午好。 Qorvo第四季度的收入为7.88亿美元，比我们更新后的指导指标的中点高出1800万美元，这归因于移动需求强于预期。
移动收入达到了5.56亿美元，超出了我们的预期，这是因为对移动和手机的需求更大，全球供应链中断的影响也小于3月初更新时的预期。
我们预计移动电话将在6月财报季环比下降，这主要是由于与COVID-19相关的需求影响。在基础设施和Wi-Fi增长方面，IDP收入在三月财报季连续增长至2.32亿美元。我们预计IDP收入将在6月财报季再次增加，由于5G基础设施需求，Wi-Fi 6的增长和国防的持续增长，将恢复强劲的同比增长。
根据非公认会计准则（Non-GAAP），三月财报季毛利率为49.6％，其制造成本好于预期，并且混合效应良好。现在，我们预计6月财报季的毛利率将连续下降，我们改善产品组合，合理化制造业务覆盖面以及提高生产率的努力将产生良好的结果。因此，尽管营收受到COVID-19和贸易影响的不利影响，我们预计6月财报季将同比增长。
根据非公认会计准则（Non-GAAP），三月财报季运营费用为1.81亿美元，与预期相符，并且由于最近的收购而有所增加。根据非公认会计准则（Non-GAAP），三月财报季净收入为1.85亿美元，每股摊薄收益为1.57美元，创下Qorvo FYQ4最高记录。
三月财报季运营现金流为2.14亿美元，资本支出为3500万美元，自由现金流为1.79亿美元。我们在本季度回购了1.25亿美元的股票。
我们在2020财年的全年自由现金流超过7.8亿美元，约占销售额的24％。自由现金流量的增长将继续是该管理团队的重点，一旦我们明确了全年的看法，我们将在更广阔的财务前景的背景下提供更新的自由现金流量目标。我们的自由现金流量产生基础是强大的信誉轮廓。我们拥有充足的流动性和低杠杆。
本季度结束时，我们拥有7.5亿美元的现金和未动用的循环贷款，且没有近期到期。我们未偿还债务的加权平均到期日为2027年6月。有了这种财务灵活性，我们可以专注于推动技术进步，支持客户，并进行审慎的有机和无机投资，支持长期盈利和自由现金流增长。值得一提的是，在三月财报季，我们完成了对超宽带解决方案的先驱和领先供应商Decawave的收购；以及MMIC，这是高性能GaAs和GaN产品的领导者。
借助Decawave，我们看到了采用这种无线技术的各种解决方案，并且随着时间的推移，我们希望该业务将为Qorvo做出重大贡献。 Custom MMIC非常适合我们的国防产品业务，并有望在今年有所增长。这两项收购都得到了快速整合，我们的新同事享受了Qorvo的全力支持和能力，以帮助开发产品和服务客户。
转向我们的6月财报季展望。我们预计收入在7.1亿美元至7.5亿美元之间，中值为7.3亿美元。根据我们的指导方针，非GAAP毛利率约为47.5％，非GAAP摊薄后每股收益为1.13美元。
我们在6月财报季的收入范围比正常情况宽，这反映了由于COVID-19的影响，我们的市场和整个经济存在更多不确定性。尽管我们认为短期需求情况足够清晰，可以提供6月财报季的指导，但季度需求和未来全球供应中断的不确定性太大，无法提供Qorvo整个财年的看法。
在6月财报季，我们预计移动5G仍将保持强劲增长，尽管基本手机销量下降且IDP恢复同比增长。更具体地说，对于移动设备，我们预计6月财报季销售额将环比下降，其中部分亚洲地区将部分抵消世界其他地区的疲软。我们当前的展望是，智能手机在整个日历年度的销量将下降10％以上。
但是，我们仍然看到2020日历年支持5G的手机需求，略低于我们在3月初的指导水平。对于IDP，我们预计6月财报季销售额将因5G基础架构客户需求和Wi-Fi 6的增长而连续增长，因为对支持连接性的最新无线基础架构的投资比以往任何时候都重要。
就毛利率而言，我们的6月财报季指南约为47.5％，其环比有所下降，部分原因是去年同期销量下降。我们预计COVID-19的持续影响会影响我们的利用率。此外，随着我们在理查森（Richardson）中不断提高的吞吐量，我们可以灵活地将对Farmers Branch的进一步投资推迟到需要额外的产能之前。
我们一直在监视COVID-19的需求和供应影响，并据此确定库存和成本结构。由于需求状况存在不确定性，我们打算在内部和渠道中保持稀薄的库存。
由于人事费用增加，包括与最近收购业务的整个季度影响相关的增量费用，非GAAP运营费用预计将在6月财报季增加到大约1.87亿美元。
与三月财报季相比，6月财报季的平均现金余额和存款利率较低，净利息支出将略有增加，这得益于较高的存款利率，并且在关闭Decawave和Custom MMIC之前，存款余额超过10亿美元。
我们预计6月财报季的非GAAP税率在8％至8.5％之间。我们预计近期的资本支出将与过去几个季度的支出保持一致。在2020财年，我们的支出为1.64亿美元，占销售额的5％以上。我们在2021财年的支出将继续集中在BAW，GaN和其他领域，这将为Qorvo带来差异化地位，从而最好地满足客户需求。
正如三月财报季的结果和6月的前景所显示的那样，Qorvo在充满挑战的时期内运行良好，同时帮助客户在5G，Wi-Fi，IoT，国防和其他关键市场中增长。
QA部分
Q
我希望Qorvo中的每个人都是安全的，祝贺大家在这个不确定的时代里有出色的指导。马克，我有一个关于毛利率的问题。你的12月到3月的收入下降了 90％左右。你在6月的时候下降了一点，但你12月到3月的毛利率在30个基点以内，但6月的毛利率却出现了实质性的下降。你能不能帮我们分析一下，是否是库存的增加或缺乏的因素？或者是其他什么原因造成的？
A
我想我先说的是第三到第四季度，我们比我们想的好100个基点，100个基点多一点。其中大约一半是有利的制造成本，大约一半是混合因素。
就第三至第四季度而言，从顺序上看，主要是由更有利的制造业差异所驱动。当我们进入6月份的季度，我们的产量减少，制造成本也就不那么有利了。然后，我们还有一些产品组合的影响也被拖累了。
所以，我认为总体上的信息是，我们的业务没有任何改变。我们正在积极努力不断提高我们的毛利率。尽管受到贸易影响和COVID的影响，但我们一直在进步，你可以从我们的业绩中看到这一点。
至于库存方面，我不会说，我们对目前的库存状况感到满意，但我们的状况还算不错。如果你把我们的库存水平与历史上的水平进行比较，然后再与我们在这个领域所见过的其他公司进行比较，库存是按顺序上升的，就像我们想象的那样。
但正如我所提到的，从历史上看，我们的周转是在向好的方面进行，然后我们的渠道仍然非常非常健康。是的，尽管存在着不确定性，但我们仍在继续进行库存工作，以保持库存保持一致。我们当然希望尽我们最大的努力来平衡保持低库存水平，同时确保我们的供应链不受限制。
Q
你说到了非常强劲的增长，或者说是5G手机的发展趋势。我很好奇，我们能不能谈谈你们的客户范围，无论是在你们看到的出货量，尤其是中国市场，另外还有您今年的设计成果？
A
我可以告诉你，我们这些天来做的绝大多数工作，无论是新产品开发还是与客户的接触，都是围绕5G展开的。当然，还有一些LTE-Advanced也在进行。但是，客户的产品组合基本上都在向5G过渡，我们现在看到的是过渡到手机产品组合的中间层。
有趣的是，有同样的5到7美元的内容增长，无论你是以20到25美元为基础的5G智能手机，还是以5到7美元为基础的中端智能手机，你看到的绝对价格都是一样的。所以当你往下看，你会看到5G内容的百分比确实有了很大的提升。
Q
嘿，下午好，先生们。有两个问题，如果可以的话 第一个问题是关于你们的一些收购案。我很好奇，你们假设Decawave和Custom MMIC在6月份的收入贡献是多少？以及与Decawave有关，我们是否应该期待今年晚些时候在汽车和移动领域的新设计胜出？也许只谈一下你们的超宽带解决方案的设计活动水平以及客户对该技术的参与度？
A
我就从收入情况说起。我们在过去一年里做了四次收购。是的，它们都符合预期。它们都已经成功整合了。Decaveaw和Cavendish，我们已经明确表示它们是稀释性交易。它们有收入，但它们是我们投资的技术。
所以，它们是稀释性的。可编程的电源管理业务，在这一点上，我们正在进行收购，但该业务和Custom MMIC都是增收的。所以我把这四项收购分成了两类不同的收购。
我就不一一细数每个季度的收购情况，以及它的贡献与否。是的，它们都是，很明显，它们在3月份的更新中得到了反映。当我们提供的时候，已经考虑到了。显然，6月份的指南中也考虑到了它们。
我可以给你的是，在2020财年，这些收购总共约6000万美元的收入，这其中包括可编程电源管理和其他。到了2021财年，我们预计这些收入加起来会超过1.1亿美元。所以，希望这能给大家提供一些参考。
我将谈一谈Decawave和超宽带的前景。正如我们上个季度提到的那样，我们坚信，脉冲无线电超宽频的独特功能，可以实现非常精确的定位能力，以及近距离感知和安全，将导致在所有移动手机中无处不在。然后从那一刻起，手机就会成为基础设施，并将你与智能家居、汽车和其他一系列应用联系在一起。
我可以告诉你，从那时起，我们的热情就一直在增长。所以，自从我们整合了Decawave团队之后，与移动社区的互动肯定是增加了。而且我们在平台供应商和手机OEM厂商之间都有很强的互动，努力让他们尽快启用。但是，Decawave来找我们的时候，一开始就有一个强大的管道，涉及到许多其他应用，如汽车和物联网等。
因此，我们将继续看到这个产品组合不断增长。我们在资产标签、智能家居控制、各种工业IoT应用等方面的合作也在不断增加，值得注意的是，当你看一下COVID-19的接触追踪类应用时，拥有精确的位置和接近感知能力是非常适用的，它补充了BOE的方法，当然，BOE的方法正在率先推出，通过提供更精确的人与人之间的距离测量，这一点是对BOE方法的补充。
因此，我们有多个客户已经在调整他们正在做的标签或IoT事情，以包括接触追踪功能。因此，这当然也推动了一些客户对Decawave的强劲增长。
Q
这是非常有帮助的，如果可以的话，我想做个跟进。在您准备的评论中，您强调了您为5G智能手机提供了完整的主路径，这确实是非常突出的，也凸显了您提供的产品的广度，我想没有人可以比拟。您是否看到市场在不断发展，智能手机供应商希望越来越多地整合主路径，这将使你们在未来几年内发挥更大的作用？
A
我想我们提到了一两个季度，坦率地说，这比我们的预期要超前一些。我们预期更多的产品组合会保持离散性，事实上，在今天的手机中，尺寸是如此之大，而5G的复杂性又使其变得如此之大，因此，真正的整合对客户来说是相当有帮助的。它不仅对性能有帮助，而且对尺寸也有帮助，让他们能够加入其他功能。
所以说，没有退路了。我们一般不会看到东西，或者是倒退，然后回到屏幕上。所以我们会尽可能快地运行，用最新的波段和功能以及新的功能等等来补充我们已经很完整的集成解决方案的产品线，有新的性能、更高的性能、更小的滤波器等等，在那里增加了好处。但我们认为这是一个趋势，绝对是为客户提供他们所需要的5G的核心。
Q
我希望您能谈谈您的指引以及其他内容（考虑到环境因素是非常强的）。我希望您能给我们一些关于您如何看待9月份季度及以后的季节性的信息？
A
我想，我们必须承认，我们正处于前所未有的时代。全球经济增速放缓，每家公司都在与风险和前景搏斗。因此，除了我们提供的6月财报季的数据外，我不能说得很具体。
我可以说的是，我们相信我们市场的增长潜力，更广泛的说，我们对连接性的需求，这就需要更多更好的射频。具体来说，在我们的业务上，目前的这个背景下，我们的运营情况很好，这也是突出了我们的运营情况。
我们有一个良好的资产负债表。我们正在用最好的技术和产品为客户提供服务，我们也在适当调整业务规模。因此，因此，我们能够提供我们认为是6月份的坚实指导。6月份以后，就比较难看了。目前，当我们展望9月份的季度时，我们看到的是最高线增长可能是个位数的百分比，或者更多一点。我们预计毛利率将上升，但幅度不大，部分原因是利用率比我们计划的要高。
最后是运营支出。你可以预期在今年的6月财报季里，我们预计全年的运营支出将保持在我们指导的水平上。但除此之外，是的，市场还不够明朗。我认为，我们与大多数没有提供全年指导的公司相比，情况还算不错。我想说的是，这里的风险因素非常重要。COVID-19贸易和其他风险因素都需要考虑。而这些风险因素使得现在是一个特别难预测的时期。
Q
我想知道您是否可以谈谈您的占比达到了10％的客户，以及您如何看待它的增长，它们之间的同比变化？
A
我们有两个10%的客户，他们可以改变。所以我不能给出同比数据，我通常不说。我通常是这样说的。
Q
你好，在这场大流行病中的结果和指导工作做得很好。我的第一个问题。你提到过几次贸易，但我希望你能详细说明一下。你有没有看到这样的结果，特别是在中国的客户回撤？你是否看到了更多的，比方说，你对华为的需求，比如说，你希望从华为身上看到更多的需求？你是否期望这一点会出现在不止华为一家公司上？我只是想知道，当你考虑到6月份的展望，以及下半年的展望，你所讨论的影响是什么？
A
我认为，我之所以几次提到贸易，当然，当我们在看同比数据时，贸易对我们3月财报季的同比影响很大，它仍然是我们业务中的一个风险因素。虽然我不会说，是的，目前前景的主要因素是与COVID-19的影响有关。所以，我只是想在这里说清楚。
我相信你们中的很多人都看到了最近商务部的命令。经过我们的法律团队的广泛审查，我们觉得这些规则并不适用于我们的产品。这并不意味着可能会有新的东西出来，我想这是另一件事。当你考虑到这一点，现在两国之间有很多剑拔弩张，我们很谨慎。但我们没有看到任何拉锯战或类似的事情。
作为这一切的结果，我们看到的是，我们看到的是需求--客户的终端需求，就像Mark谈到的那样。我们的渠道在我们和客户之间是非常健康的。我个人通过视频与中国的客户进行了非常高级别的会议。我对他们对我们产品的库存和销售情况感到非常满意。
Q
我希望你们能给我们介绍一下你们在毫米波方面的最新情况，以及你们是否认为这是今年晚些时候或明年年初的潜在收入驱动力？
A
真的，季度之间的变化不大。我们继续推进技术，并在产品示范工具等方面开展工作。
这一年，会有一些商业化的推出。这将使我们有机会证明商业案例，并真正解决很多与毫米波有关的基础设施问题。我们喜欢我们的技术。我们认为，我们可以在天线和信号质量等方面的效率方面提供真正的帮助。这真的要看网络环境中的商业案例了。
从我的角度来看，毫米波在5G的整体推广中，仍然是很小的一部分。当然，6千兆赫以下的是大多数，而今天，那真的是在中国。我们已经看到6千兆赫以下的推出，就在过去的一段时间里，我们看到6千兆赫以下的推出有了上升的趋势，我们预计我们在中国的工作会很好地跟上。
Q
你在发言中谈到了2020年的智能手机市场可能会同比下降10%，我完全理解目前市场上缺乏能见度。但是，假设市场确实出现了，有点符合这个前景，你认为，考虑到5G的优势，5G的相对弹性，以及你们所知道的一些案例的胜利，你认为在这样的背景下，你认为在2020年的移动领域能够增长吗？
A
首先，是超过10%，只是想说清楚，我们真的要看今年的情况如何来回答这个问题。我的意思是，现在5G手机的比例，很明显，会更高。Eric谈到的5到7美元，无论是中端还是高端，都有更多的美元内容。所以肯定的说，机会就在那里。我们认为今年在5G方面会有一个很好的TAM，有很多的增长。我们会看它的发展情况。
Q
您在这一年的自由现金流产生方面做得很好，你显然没有给出2021财年的指导意见。但根据你对CapEx的评论，以及你在这一年里进行了多项收购，我认为CapEx将保持在营收的5%左右，并购可能会减少，这将为回购留下空间。但你对未来几个季度的平衡是如何考虑的？
A
是的，我们很满意我们在自由现金流方面所做的事情，因为这与改善自由现金流有关。我们并不高兴我们已经达到了任何一种最终的结果。对我们来说，这更多的是一个方向点。因此，我们对此很满意。
至于资本支出水平和资本分配的优先级，在这一点上没有任何变化。我们曾说过，我们将向着销售额的5%至7%的方向发展，但没有任何变化。我们达到5%的速度比我们想象的要快一些。但我认为你可以把这部分归功于团队的纪律性和一致性，以及执行资本纪律。
所以我不能给你一个销售的百分比，因为你会回到销售，我给一个数字。所以，我说未来几个季度会围绕我们过去几个季度的运行情况来运行，所以最多可能是4000万、5000万。
至于资本配置方面，我们的杠杆率仍然低于我们的目标。我们仍在积极寻求收购，在寻求价值、创造收购方面没有任何变化，主要是移动业务的技术资产和IDP的面包车技术。而这就是你们看到我们在过去一年中所做的，价值超过10亿美元的收购。
我们从未提供回购的速度和进度。在上个季度，我们确实回购了1.25亿美元。对于全年来说，除了10亿美元的收购支出之外，我们还回购了5.15亿美元。我们会在6月份的季度报告，我们会回购一些股票，我可以这么说。但是金额和未来回购将取决于我们拥有现金的机会、我们的杠杆率、我们对前景的最新看法以及其他因素。
Q
你提到6月份不利的组合是造成毛利率压力的因素之一。但随着移动业务的下降和IDP的上升， 我们不应该看到相反的影响， 还是IDP的混合问题？如果可以的话，詹姆斯，我想上个季度的指导意见是，IDP将在3月份恢复到同比增长。看起来你刚刚错过了这个目标。这是否是因为空间的不足？然后，您是否获得了将5G产品出售给华为的许可？
听起来你们的营收结构正在向韩国和亚洲转移，这是否是我们可以预期的趋势，在下一个日历年内会延续？你怎么看待三星基带的接受度，更重要的是，相对于你们支持的其他基带，你们在基带上的内容如何？
Q
是的，是的 这是个好问题，也是个很细微的问题。我不知道你有没有听懂我的意思 我确实说了，这是一个产品组合，具体来说。所以，你说的没错，6月财报季的IDP业务占销售额的比例会更高。但撇开这一点不谈，总体来说，与制造差异和收入下降相比，产品结构的影响是较小的部分。
让我先处理一下华为的问题。所以我们正在向华为出货一些免于限制的产品，但这些产品在第四季度IDP的营收和我们一季度的指导意见中并不重要。而且我们目前还没有收到IDP产品组合中的产品出货给华为的授权。
至于同比增长，而马克在上个季度曾说过，这是一个漫长的过程，我们已经非常接近了。我认为，我们一季度会有一个非常好的增长，并且能够回到同比增长。现在，我们的FYQ4也有一个非常好的业绩，正如马克和鲍勃所说的那样。我们在国防面结束了一个很好的一年，我们在国防业务上实现了同比增长。
我们在5G和Wi-Fi 6领域开始了大规模的产品组合，包括GaN在内的产品，我们在5G和Wi-Fi 6领域都取得了增长。GaN就是一个很好的例子。我们为市场带来了很多产品和不同频率、不同功率等级的产品，上个季度我们的GaN几乎翻了一番，我猜想我们还会再来一次。所以总的来说，我们对本季度的增长非常满意，并期待着第一季度的增长。
我将谈谈您对中国混合韩国以及与LSI结合等问题。当然，在短期内，对韩国和中国的组合是相当真实的。这是因为两个因素，真的。首先，当你说到韩国，一年前，我们刚刚转过弯来，和三星重新调整我们的组合，那是非常好的，而且确实会继续变得越来越好。
所以随着他们增加更多的内容，增加更多的优质内容，很多都是我们可以解决的。所以，我们预计这个趋势绝对会继续下去，这是一件好事。我们希望继续与三星一起成长，并在这里与三星保持一致，并在综合以及他们的高级层级，为这两个层级带来完整的综合内容，以及对电源管理的高级调整。
在那里很好地对齐。当我们赶上并逐渐提高份额时，它应该成为一种混杂的事物。因为我们正在追赶，然后甚至会随着我们的份额越来越好。然后中国也是如此。我的意思是那只是受影响。我们的客户做得很好。
如果你看vivo、Oppo和小米，真的是和5G融合在一起。我们有完整的产品组合来支持他们。他们不仅服务于中国国内，而且他们的出口也越来越多。所以我们在整个产品组合中，我们有很多可以帮助他们。所以很自然的，是的，我们是这样混的，因为他们目前在市场上做的非常好。所以，这很好。
关于LSI，三星自己的基带，我们很喜欢和他们合作。当然，是很好的合作伙伴。我们的合作关系很好。但我不认为与所有的基带厂商相比，没有什么特别不同的地方。我们在所有的基带制造商中，几乎每一个类别的内容都是我们的赢家。所以这很好，我们绝对希望支持他们。
Q
两件事。5G的形态，你保留了你的号码，高通保留了他们的号码。所以很明显，5G的混合型的比例比较高。我只是有点好奇，如果你看3月份的情况，6月份你的预期是怎样的？与三个月前相比，这个部署的形态如何？有很多关于潜在的延迟的讨论，我只是好奇你已经看到了什么。然后你能不能直接评论一下中国在3月份的季度规模有多大？这将是很有帮助的。
A
是的，我想，我们一般不会按季度来划分。我认为关键的是，我们看到每个地区的病毒相关的需求和供应情况都不一样。因此，我认为，建立模型是有一点挑战性的，我认为，很明显的是，首先，日历年的影响很大。而且每一个人在上半年没有买到5G手机的时候，到了下半年他去买的时候，他更有可能买到5G手机。
因此，我们认为是否存在一线希望，但实际上这并不是一线希望，但至少对我们行业而言，好消息是，上半年未售出的手机将会售出，下半年的5G内容更多。
关于中国的事，我们一般不会说出来。你知道，这是很重要的。我们在本季度结束的时候，它比我们的指南中的要少。我可以这么说。然后如果你想知道华为的情况，具体来说，它比预期的要好一点，但它是，我想说，不是我们三月份季度差异的重要组成部分，它仍然是我们过去与那个客户的一小部分。我们预计那个客户在6月份的季度，我们预计会保持在5%以下。
Q
有几个问题，一个是关于手机的问题，然后是关于IDP的问题。第一个是关于5G的问题。Eric，也许你能谈谈你在早期的5G设计中看到了什么样的内容扩展？还有就是进入到下半年，我猜测，还有一些旗舰机会推出。还有就是，你可能会在中端甚至是低端看起来会更多一些。所以我就想知道，进入下半年之后，这个内容的拓展可能会有什么变化？
A
我们过去曾谈到过5G内容的驱动力是什么。而且，当然，在过滤上有更严格的要求。有更多的频段一般会加到手机上。还有就是双网联动的场景，手机要同时在4G和5G上工作，这就带动了很多内容围绕着天线，无论是调谐和切换，还是过滤等等，都是为了拉动这一切。
因此，正如我之前提到的，在通话中，我认为，我们看到每部手机的内容大约增加5到7美元。而这是相对稳定的，无论你是将其添加到高端智能手机还是中端智能手机上，都是如此。我相信，当我们稍后进入大众层级时，肯定会有一些更精细化的区域设计。但就目前而言，我们看到，随着它继续通过产品组合向下混合，我们看到美元内容ATTR保持相当稳定。
Q
明白了。然后在IDP方面，我们经常听到中国在推广方面非常激进。我相信，他们说的几乎是5亿个基站，对不起，今年有50万个基站。我只是很好奇，很明显，你对下个季度IDP增长的指导意见。我只是想了解一下，这对你们来说是如何实现的？你们在一个季度内看到了吗？ 你预计今年剩下的时间里会继续这样吗？我只是想了解一下，你们的业务是如何展开的？
A
绝对同意部署超过50万个基站。我们认为这个数字会更接近60万，如果不是，也许会更多。我们如何发挥是，我们已经得到了很明显的广泛的客户的空间。正如我们在准备发言中谈到的那样，我们正在将GaN和小信号组件推向这一系列广泛的客户。所以肯定会继续成为我们的增长引擎。
至于如何继续下去，我们肯定认为今年全年在中国的部署将继续进行，并提供更多的招标，然后在明年上半年，随着他们进行更多的部署，部署量将再次增加。我们还预计，随着进入明年，在美国和世界其他地区的部署将开始回升。
Q
现在2020财年的事情已经结束了，你能不能给我们介绍一下你最大的客户占收入的百分比是多少？
A
我不会在电话里做，蒂姆。我的意思是，我们将发布K， 你会看到，在美国证券交易委员会的财务数据中，当我们报告的时候。
Q
我有一个关于华为的问题。我想你刚才说，在六月份他们会不到5%。所以，这意味着，基本上会被削减一半以上的Q-on-Q。我想，问题是，事实上，如果你看他们的年报，他们有超过110天的库存，同比增加了35天。显然，他们已经看到了一些限制的到来。所以，他们似乎在这些限制措施之前就已经订购了。
所以，我想，问题是，你运给他们的东西的保质期有多长？因为你是唯一的一个 - 你和他们的收入已经重新扩大了，并再次突破了10%的范围，但它在6月份就会下降。所以我想知道，是库存消化的开始，还是你认为这只是智能手机销售疲软？
A
提姆，我想确认一下我是否理解你的问题。第一，华为在三月份甚至不是接近（占比）10％的客户，甚至没有接近。而同比来看，你们会惊讶于这家公司的增长，这家公司的壁垒少了，他们的增长。他们并不是一个重要的客户。到了6月份，他们就更少了。所以我不明白你的问题。
第二，你说的保质期，我不太理解。我们和华为公司打交道，我和他们谈。他们没有把我们的产品囤积在什么地方。这个我可以告诉你。所以我不知道怎么回答你的问题。
Q
恭喜你取得了不错的成绩。我只是想从你那里了解一下GaN基站的采用情况，相对于LDMOS来说，你们在中国的5G基础设施的部署情况，以及你们在这一技术上的差异化如何让自己在全年的市场占有率提高？在中国的5G基础设施部署方面，以及你们在该技术上的差异化优势将如何使其在全年内获得更多的市场份额？
A
是的，我们看到这个领域的众多客户都在快速采用GaN。我们看到GaN在该领域的众多客户中迅速采用，当然在6千兆赫以下的空间也是如此。我们相信我们在一系列广泛的领域中脱颖而出。我认为，我们有很好的性能技术，我们已经有了20年的时间了。我们有非常好的可靠性。在过去的几年里，我们一直在不断地增加功能和规模，为这次的包装做准备。所以我相信我们会继续以市场的速度或更快的速度增长。
Q
您也提到了Wi-Fi 6，在那里的采用和认证。您现在看到Wi-Fi 6在您的产品中的一些主要应用是什么？
A
是的。Wi-Fi 6是从旗舰智能手机开始的，我让也许Eric谈一谈。但这显然刺激了企业的CPAE[Ph]在设计中整合Wi-Fi 6的业务。而且我们看到这种情况在高端零售业中确实在发生，但也在MSO的推出中。它正在加速发展。服务提供商也在采用分布式技术，将Wi-Fi 6引入到这部分市场。
所以对我们来说，它是非常、非常广泛的品牌。我们为这个空间带来了一套非常好的前端模块和过滤能力。我认为我们将继续在市场上取得巨大的成功。
是的，在移动端，是的 在移动端也是如此，是的，我们看到了良好的牵引力。事实上，它是--正在迅速混合。我们的Wi-Fi业务正在迅速向Wi-Fi 6混合。特别是当你移动和添加新的7.2千兆赫兹的能力等等，我们确实有很多独特的能力来带来的。我们专门参与了芯片板载市场的部分，而不是SIP市场的部分。所以，是的，它现在正在迅速增长。我认为更高的带宽等等是一个关键的特点。
英文纪要原文：
Qorvo, Inc. (NASDAQ:QRVO) Q4 2020 Earnings Conference Call May 7, 2020 5:00 PM ET
Company Participants
Douglas DeLieto - Vice President, Investor Relations
Robert Bruggeworth - President and Chief Executive Officer
Mark Murphy - Chief Financial Officer
Steven Creviston - President of Mobile Products
James Klein - President of Infrastructure and Defense Products
Conference Call Participants
Harsh Kumar - Piper Sandler
Karl Ackerman - Cowen and Company, LLC
Jamison Phillips-crone - BMO Capital Markets
Bill Peterson - JPMorgan
Toshiya Hari - Goldman Sachs & Co.
Edward Snyder - Charter Equity Research
Blayne Curtis - Barclays Capital
Srini Pajjuri - SMBC Nikko Securities
Timothy Arcuri - UBS Securities LLC
Raji Gill - Needham & Company
Operator
Good day, everyone, and thank you for standing by. Welcome to the Qorvo Inc. Fourth Quarter 2020 Conference Call. Today’s conference is being recorded.
At this time, I’d like to turn the conference over to Douglas DeLieto, Vice President of Investor Relations. Please go ahead.
Douglas DeLieto
Thanks very much. Hello, everybody, and welcome to Qorvo’s fiscal 2020 fourth quarter earnings conference call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management’s current expectations. We encourage you to review the Safe Harbor statement contained in the earnings release published today, as well as the risk factors associated with our business and our Annual Report on Form 10-K filed with the SEC because these risk factors may affect our operations and financial results.
In today’s release and on today’s call, we provide both GAAP and non-GAAP financial results. We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain non-cash expenses, or other items that may obscure trends in our underlying performance.
During our call, our comments and comparisons to income statement items will be based primarily on non-GAAP results. For complete reconciliation of GAAP to non-GAAP financial measures, please refer to our earnings release issued earlier today, available on our website at qorvo.com, under Investors.
Joining us today from multiple locations are; Bob Bruggeworth, President and CEO; Mark Murphy, Chief Financial Officer; James Klein, President of Qorvo’s Infrastructure and Defense Products Group; Eric Creviston, President of Qorvo’s Mobile Products Group; as well as other members of Qorvo’s management team.
And with that, I’ll turn the call over to Bob.
Robert Bruggeworth
Thank you, Doug, and thanks to everyone for joining our call. We will begin today with a look at our March quarter and highlight what drove our performance in both Mobile Products and Infrastructure and Defense. We will discuss COVID-19 and cover some of the steps we have taken to support our employees and customers. Then Mark will provide additional details on our financials and operations.
Qorvo delivered a very strong March quarter. Revenue was $788 million, driven by broad-based demand in 5G handsets and infrastructure, defense, Wi-Fi 6 and IoT. Gross margin was 49.6%, up sequentially and year-over-year.
During the quarter, we completed two acquisitions, Custom MMIC and Decawave. Custom MMIC expands our leadership in GaAs and GaN RF products for defense and aerospace, while Decawave positions us as a leading provider of ultra-wide-band solutions for proximity awareness, secure payments, and secure access for smartphones, automotive and IoT. We’re pleased to add Qorvo scale to both of these well-established high-performing teams to build on their successes and accelerate their growth.
Looking broadly at the March quarter, our performance reflects an exceptional effort by the entire Qorvo team. Our employees have demonstrated extraordinary spirit and resilience, and I’m proud of their ability to excel in a challenging and dynamic environment.
We said on our January 29 earnings call that we expected the impact of COVID-19 to extend beyond the March quarter and affect both supply and demand. On March 3, we updated our guidance as macro conditions worsened. To safeguard our employees and operations, in January, we began to take precautionary measures. We then activated a cross-functional COVID-19 response team as part of our global business continuity plan.
The success of our early efforts in Asia served as a model for our global operations. We enacted best practices and implied enhanced safety protocols worldwide. That included temperature scanning, social distancing protocols, travel restrictions, and a rigorous screening and quarantine process for any suspected or confirmed cases.
While our factories and engineering labs remained open, we successfully transitioned thousands of employees to work from their homes. We have experienced no material disruptions in our business operations, thanks to these and other ongoing efforts. We are maintaining product development schedules, our design and engineering teams continue to develop breakthrough technologies, and our customer engagements are strong.
With that as context, I will recap our business performance by market. In mobile, shipments of our 5G solutions grew sequentially and 5G design activity continued to increase.
Qorvo’s highly integrated and high-performance 5G and LTE-Advanced Pro Solutions are helping our customers to enhance performance, reduce product footprint and accelerate products to market. We are especially pleased with content gains in 5G. Products like our 5G ultra-high-band solutions are being adopted across customers and on all leading 5G chipsets.
During the quarter, we helped enable Samsung’s Galaxy S20 platform with a broad set of high-performance and highly integrated components. These include our mid-high-band and ultra-high-band 5G solutions. We also provided a leading manufacturer of 5G smartphones, the complete main path, including our low, mid-high and ultra-high-band integrated solutions, as well as our Wi-Fi front-end module, switches, tuners for their recently launched 5G smartphone.
Our view on early adoption of 5G is unchanged. And although our overall view of smartphones is for a decline of over 10% in calendar 2020. We still expect 5G smartphones this year to be in line to slightly below what we guided in early March.
Contributing to future growth, the demand for data analytics, remote management and system level optimization within the wide area industrial applications, such as meter reading and asset tracking, is driving the need for global long range connectivity via cellular IoT.
Qorvo enjoys broad exposure to cellular IoT, ranging from our discrete portfolio of RF solutions to our highly integrated modules through our partnership with Nordic Semi for high-volume Cat-M and narrowband IoT applications. Also, the need for proximity awareness and enhanced wireless security is driving the adoption of ultra-wide-band for Context-Aware Applications, including secure payments and secure access for smartphones, automotive, and IoT.
We’re enjoying increased demand as the market develops and we combine Decawave’s breakthrough technologies with our scale and customer reach. Our current generation of ultra-wide-band products going into production this year features the marriage of Decawave’s state-of-the-art radio technology with our front-end to enable, enhance, angle of arrival capability.
In cellular infrastructure market, shipments of GaN high-power amplifiers and small signal components increased sequentially in support of sub-6 gigahertz 5G networks. Demand for Qorvo’s products has been robust, driven by the ramp of massive MIMO antennas.
We are engaged with multiple customers with our GaN amplifiers and we are well positioned to benefit from this multi-year technology upgrade cycle. In our connectivity and broadband businesses, we accelerated shipments of Wi-Fi 6 solutions and secured cable amplifier design wins to support increased data to the home.
During the quarter, we expanded the global customer base of our Wi-Fi 6 solutions, including our front-end modules and BAW filters. In defense markets, we sampled our broadband 100 and 130 millimeter – 131 millimeter wave power amplifiers. These products expand our portfolio of GaN-based solid state amplifiers for millimeter wave applications, including SATCOM radar, and electronic warfare.
We’re seeing strong growth, driven by multi-year defense programs and the acquisition of Custom MMIC further expands our capabilities in this market. In programmable power management, we enjoyed growth in data center, computing and gaming consoles with our differentiated solutions.
Qorvo’s programmable ICs reduce solution size and cost, improve system reliability and shorten system development time. We serve a broad range of industrial, commercial and consumer markets, and current demand is especially strong, driven by data centers.
After the quarter closed, we introduced our high sensitivity point-of-care diagnostic test platform and cartridges, utilizing acoustic resonator technology for veterinary applications. Qorvo’s diagnostic platform has the potential to improve veterinary diagnostics by delivering central lab performance to the veterinary clinic at point-of-care.
For the June quarter, the environment remains challenging and fluid. While constraints to global supply are limited, the impact of global demand remains unclear, given the uncertainty around the magnitude, duration, and geographic reach of COVID-19.
We are confident, however, that the long-term secular drivers in our end markets remain compelling. We believe our technologies and operations are more important than ever, as we support global deployments in 5G handsets and infrastructure, along with defense, Wi-Fi 6, and IoT.
We’re also adding new capabilities in programmable power management, ultra-wide-band-based precision location and point-of-care diagnostic testing. We are operating well, focused on keeping our employees, partners and communities healthy, while supporting our customers.
I’m proud of the team and thankful for their efforts and helping the world stay connected.
And with that, I’ll hand it over to Mark for more color on Q4 and our outlook for June.
Mark Murphy
Thanks, Bob, and good afternoon, everyone. Qorvo’s revenue for the fourth quarter was $788 million, $18 million above the midpoint of our updated guidance and driven by stronger-than-expected mobile demand.
Mobile revenue of $556 million, exceeded our expectations, as mobile and handset demand was greater and global supply chain disruptions less impactful than we anticipated at the time of our early March update.
We expect mobile to decline sequentially in the June quarter, due principally to COVID-19-related demand effects. IDP revenue improved sequentially in the March quarter to $232 million on infrastructure and Wi-Fi growth. We expect IDP revenue to increase again in the June quarter, returning to strong year-over-year growth on 5G infrastructure demand, the ramp of Wi-Fi 6 and sustained strength in defense.
Non-GAAP gross margin in the March quarter was 49.6%, with better-than-expected manufacturing costs and favorable mix effects. Now we expect a sequential decline in gross margin in the June quarter, our efforts to improve the portfolio, rightsize our manufacturing footprint and drive productivity are yielding favorable results. As a result, we expect year-over-year gross margin expansion in the June quarter, despite a top line adversely impacted by COVID-19 and trade effects.
Non-GAAP operating expenses in the March quarter were $181 million, in line with expectations and up due in part to recent acquisitions. Non-GAAP net income in the March quarter was $185 million and diluted earnings per share was $1.57, a record fourth quarter result for Qorvo.
Cash flow from operations in the March quarter was $214 million and CapEx was $35 million, yielding free cash flow of $179 million. We repurchased $125 million of shares during the quarter.
Our full-year free cash flow for fiscal 2020 was over $780 million and approximately 24% of sales. Free cash flow growth will continue to be a focus of this management team and we will provide an updated free cash flow target in the context of a broader financial outlook once our full-year view is clear, Our free cash flow generation underpins a strong credit profile. We have ample liquidity and low leverage.
We ended the quarter with $750 million of cash and untapped revolver and no near-term maturities. The weighted average maturity of our outstanding debt is June of 2027. With this financial flexibility, we can focus on advancing technology, supporting customers and making prudent organic and inorganic investments that support long-term earnings and free cash flow growth.
On that note, during the March quarter, we completed the purchase of Decawave, a pioneer and leading supplier of ultra-wide-band solutions; and Custom MMIC, a leader in the high-performance GaAs and GaN products.
With Decawave, we see a wide array of solutions emerging with this wireless technology, and we expect the business to contribute materially to Qorvo over time. Custom MMIC fits perfectly within our defense products business, and is on track to be accretive this year. Both of these acquisitions were quickly integrated and our new colleagues enjoy the full support and capabilities of Qorvo to help develop products and serve customers.
Turning to our June quarter outlook. We expect revenue between $710 million and $750 million, or $730 million at the midpoint. Non-GAAP gross margin of approximately 47.5% and non-GAAP diluted earnings per share of $1.13 at the midpoint of our guidance.
Our revenue range for the June quarter is wider than normal, reflecting more uncertainty in our markets and the broader economy due to the effects of COVID-19. While we believe the near-term demand picture is clear enough to provide June quarter guidance, there is too much uncertainty around out quarter demand and potentially global supply disruptions to provide a view on Qorvo’s full fiscal year.
In the June quarter, we expect continued robust mobile 5G growth, though on lower base handset volumes and a return to year-over-year growth for IDP. More specifically, for mobile, we expect June quarter sales to decrease sequentially, with parts of Asia, partially offsetting weakness in the rest of the world. Our current outlook has smartphone units decreasing over 10% for the calendar year.
However, we still see 5G-enabled handset demand for calendar 2020, in line to slightly below what we guided in early March. For IDP, we project June quarter sales to increase sequentially on 5G infrastructure customer demand and the ramp of Wi-Fi 6, as investment in the latest wireless infrastructure to support connectivity is more important than ever.
On gross margin, our June quarter guide of approximately 47.5% is down sequentially due in part to lower volumes that was mentioned up year-over-year. We expect the ongoing effects of COVID-19 to weigh on our utilization. That, along with the – with continued throughput improvements we’ve made in Richardson, afford us the flexibility to defer further investment in Farmers Branch until additional capacity is needed.
We are continuously monitoring the demand and supply effects of COVID-19 and are sizing our inventories and cost structure accordingly. With uncertainty in the demand profile, we intend to maintain lean inventories, both in-house and in the channel.
Non-GAAP operating expenses are projected to increase in the June quarter to approximately $187 million on higher personnel costs, including incremental costs associated with the full quarter effect of recently acquired businesses.
Net interest expense will increase slightly on a lower average cash balance and lower deposit rates in the June quarter versus the March quarter, which benefited from higher deposit rates and had the deposit balances over $1 billion prior to closing Decawave and Custom MMIC.
We expect our June quarter non-GAAP tax rate to be between 8% and 8.5%. We project capital expenditures in the near-term to remain consistent with spend over the last several quarters. In fiscal 2020, our spend was $164 million, or just over 5% of sales. Our spend in fiscal 2021 will remain focused on BAW, GaN and other areas, which advance a differentiated position for Qorvo to best serve customer needs.
As the March quarter results and our June outlook could show, Qorvo is operating well through a challenging period, while helping customers grow in 5G, Wi-Fi, IoT, defense and other critical markets.
In closing, I’d like to join Bob in thanking Qorvo employees for their efforts during this time.
Now, I’ll turn the call back over to the operator for questions.
Question-and-Answer Session
Operator
Thank you. [Operator Instructions] And we’ll go first to Harsh Kumar with Piper Sandler.
Harsh Kumar
Yes. Hey, guys. Thank you. And I hope everybody in the Qorvo family is safe and congratulations on excellent guide in these very uncertain times. Mark, I have one for you on gross margin. Your December to March revenues were down, call it, 90 something percent. You’re down a little bit in June, but your December to March gross margin stayed relatively flat within 30 basis points, but there’s a material decline here in June. Could you maybe help us understand if inventory build or lack of it is the factor here? Or what else is going on maybe?
Mark Murphy
Well, I mean, there’s a lot in that question, Harsh. I think what I’ll start with is on the third to fourth quarter, we were about 100 basis points, a little over 100 basis points better than we thought we would be. Yes, that was split. About half of that was favorable manufacturing costs and about half of that was mix.
As far as third to fourth quarter, sequential, it was largely driven by more favorable manufacturing variances. As we move into the June quarter, we end up with lower volumes and then the manufacturing costs are not as favorable. And then we have some product mix effects that are dragged as well.
So, I think the overall message, Harsh, is we continue – nothing has changed in our story here. We’re actively working to continuously improve our gross margins. Despite trade effects and COVID, we’ve been making progress and you see that in our results.
And as far as on inventories – yes, on inventories, Harsh, I’m never going to say, we’re satisfied with inventories where they are, but we’re in a reasonably good position. If you compare our inventory levels to historical levels and then also compared to others that we’ve seen in the space, inventories were up sequentially as we thought they would have been.
But as I mentioned, the turns are on the better side of okay, historically speaking, and then our channel remains very, very healthy. Yes, we’re continuing to work inventories to keep them in line, despite the uncertainty. And we certainly want to do our best to balance keeping inventory levels low, while ensuring that we are not constrained part of the supply chain.
Harsh Kumar
I appreciate that, Mark. And my follow-up, you talked about very strong sort of growth or sort of talking just generally very strong trend in 5G handsets. I was curious if we could talk about the customer breadth that you have, both in what you’re seeing is shipments, particularly I suppose that’s China and then also your design wins that you have racked up for the year? Thank you.
Steven Creviston
Hi, Harsh, this is Eric. I’ll take that. I can tell you that the vast majority of the work we’re doing these days, both with our new product development and also engagements with customers is around 5G. Of course, there’s still some LTE-Advanced going on as well. But customer portfolios are largely changing over to 5G across the Board, and we’re seeing the transition now down into the middle Tiers of the handset portfolio.
Interestingly, there’s the same kind of $5 to $7 worth of content increase, whether you’re going off of $20 to $25 base for a very advanced 4G smartphone or whether you’re coming off of $5 to $7 baseline from a mid-tier smartphone, you’re still seeing roughly the same absolute dollars. So as you go down the portfolio, you see the percentage increase to the 5G content has really increased significantly.
Operator
We’ll go next to Karl Ackerman with Cowen.
Karl Ackerman
Hey, good afternoon, gentlemen. Two questions, if I may. Just first on some of the acquisitions you’ve made. I was curious, what revenue contribution are you assuming for both Decawave and Custom MMIC in June? And as it relates to Decawave, should we expect new design wins across automotive and mobile to filter into the model later this year? And maybe just touch on the level of design activity for your ultra-wide-band solutions and customer engagement with that technology?
Mark Murphy
Yes. Maybe, Karl, I’ll start with – I’ll just start with the revenue picture. And I’m not going to – we’ve done four acquisitions over the past year. Yes, they’re all tracking in line with expectations. They’ve all been successfully integrated. Decawave and Cavendish, we’ve been clear that they’re dilutive transactions. They have revenue, but they’re technologies that we’re investing in.
So they’re dilutive. The programmable power management business, which were effectively on a year at this point, we’re lapping that acquisition, but that business and Custom MMIC are both accretive. And so two different types of acquisitions that I’ve grouped the four in two.
I’m not going to breakdown each acquisition each quarter and what it’s contributing and not. Yes, they’re all, obviously, they were reflected in the March update. When we provided that, that was considered. They’re obviously contemplated in the June guide.
What I can give you is that in fiscal 2020, these acquisitions were, in total, around $60 million of revenue, that includes programmable power management and the others. In fiscal 2021, we expect those to be over $110 million, combined. So, hopefully, that provides you some perspective.
Steven Creviston
Yes. This is Eric. I’ll talk a bit about the Decawave and ultra-wide-band outlook. As we mentioned last quarter, we strongly believe that the unique capabilities with the impulse radio ultra-wide-band for very precise location capability, as well as proximity awareness and security would lead to becoming ubiquitous in all mobile handsets. And then from that point the mobile handset becomes the infrastructure and ties you into your smart home and your automobile and a host of other applications.
And I can tell you our enthusiasm has only grown since then. So since we’ve integrated the Decawave team, the interaction with the mobile community has certainly increased. And we’re strongly engaged across both platform providers, as well as handset OEMs, working to get them enabled as soon as possible. But Decawave came to us with a strong pipeline to begin with across many other applications, such as automotive and IoT.
So we continue to see that portfolio grow. The engagements are strong and growing across like asset tags, smart home controls, various sort of industrial IoT applications, and notably, the ability to have precise location and proximity awareness is quite applicable when you look at contact tracing sort of applications for COVID-19, it complements the BOE approaches, which are being rolled out first, of course, by providing a much, much more accurate distance measurements between folks.
So we have multiple customers already adapting the tags or IoT things they were doing to include the contact-tracing capability as well. So that’s also, of course, driven a strong uptick with several customers that are already in the pipeline for Decawave.
Karl Ackerman
That’s very helpful For a follow-up, if I may. In your prepared comments, you highlighted you offered the complete main path for a 5G smartphone, that really stands out and highlights the breadth of your offering that I don’t think anyone else can match. Do you see the market evolving, where smartphone providers want to increasingly integrate the main path, that will enable you to have an expanded role over the next few years? Thank you.
Robert Bruggeworth
Sure. Thank you. Yes, I think we mentioned a quarter or two that, frankly, it’s a bit ahead of our expectations. We expected more of the portfolio to remain discrete that the fact that the size is such a premium in today’s handsets and the complexity of 5G has made it such that really integration is quite helpful to the customer. It helps with performance, as well as size and enables them to include other features.
So there’s no going aback. We don’t typically see things or reverse and go back to the screen. So we’re running as fast as we can to complement our already complete line of integrated solutions with the latest bands and capabilities and new features and so forth, with new performance, higher-performance, smaller filters and so forth, adding to the benefit there. But we think it’s a trend that is absolutely central to providing customers what they need for 5G.
Operator
And we’ll go next to Ambrish Srivastava with BMO.
Jamison Phillips-crone
Hi, guys. This is Jamison Phillips calling in for Ambrish. Thanks for the question. So first, I was hoping you guys could talk about the guidance and beyond that, so it’s very strong given environment. I was hoping you would give us some color on how you think about seasonality after the September quarter and beyond?
Mark Murphy
Yes, Jamison, this is Mark. Yes, I mean, and asking for any additional guidance beyond the June quarter, I think, we’ve just got to acknowledge that we’re in unprecedented times. The global economy slowing down and every company is wrestling with the risks and their outlook. So I simply can’t be specific beyond what we’ve provided for the June quarter.
What I can say is that, we believe in the growth potential of our markets, more broadly, the demand for connectivity and this requires more and better RF. On our business, specifically, we’re operating well and this current backdrop is highlighting how well we are operating.
We have a good balance sheet. We’re serving customers with the best technology and products and we’re sizing the business appropriately. So as a result, we’re able to provide what we believe is a solid guide for June. Beyond June, it’s tougher to see. Currently, as we look to September quarter, we see top line growth probably high single digits percent or maybe a bit more. We expect gross margin to be up, but modestly, in part, because utilization is weighing on us more than we had planned it would.
And then finally, OpEx. You could expect to see around the levels through the year as we guided for the June quarter. But beyond that, yes, there’s just not enough clarity in the market. I think, we’re in good company with most companies that are not providing full-year guidance. I want to mention that risk factors are very important here. COVID-19 trade and other risk factors need to be considered. And those risk factors make it a particularly difficult time to forecast.
Jamison Phillips-crone
Okay. Thank you. That’s very helpful. And then my follow-up is, I was wondering if you could touch based on your 10% customers and how you’ve seen it grow, I guess, year-over-year, I guess, you’re in year change between now? Thank you.
Mark Murphy
We had two 10% customers and – that they can change. But – so I can’t really give comps year-over-year and all that, I typically don’t. But we had two 10% customers this quarter and that’s all I typically say.
Operator
We’ll go next to Bill Peterson with JPMorgan.
Bill Peterson
Yes. Hi, nice job in the results and guide amidst this pandemic. My first question. You mentioned trade a few times, but I was hoping you can elaborate more on that. Did you see this result in any pull-ins from customers, particularly in China? Did you see more, let’s say, demand you would expect from Huawei, for example? Are you expecting this to go beyond Huawei? I’m just curious on what impacts your discussing when you think about your June outlook, as well as the second-half outlook as well?
Mark Murphy
Yes, Bill – and Bob will build on this. I think that the reason I mentioned trade a few times, and certainly as we’re looking at year-over-year comps, the trade effects have been – have had a substantial impact on us March quarter year-over-year, and it remains a risk factor in our business. Though I wouldn’t say that, yes, that the primary contributor to the current outlook is related to the effects of COVID-19. So just to be clear there.
Robert Bruggeworth
Not much really to add, Bill. I’m sure a lot of you saw the recent Department of Commerce order. And after extensive review by our legal team, we feel the rules are not applicable to our products. That doesn’t mean something new might come out, and I think that’s the other thing. When you think about this, there is a lot of saber rattling between the two countries right now and we’re being cautious. But we didn’t see any pull-ins or anything like that.
As a result of any of this, we’re seeing it that, we’re seeing demand – end demand of customers like Mark talked about. Our channel is very healthy between us and our customers. And I personally had very high-level meetings alone by a video with our customers in China. And I feel real comfortable with their inventories of our products and how their sell-through is going.
Bill Peterson
Okay. Thanks for that. That makes sense. Next if you could – you didn’t discuss it, but we think about millimeter wave in phones, and I know you discussed it last quarter. But it feels that you guys keep making progress on that. I was hoping you could give us an update on your millimeter wave opportunities and if you see this as a potential revenue driver later this year or early next year?
Steven Creviston
Yes. I’ll cover handsets. I’m sure James would love to jump in as well and talk about infrastructure. Really, not a lot of change quarter-over-quarter. We continue to advance the technology and work on product demonstration vehicles and so forth.
This is the year, where there’s going to be some commercial roll out. It would give the chance to prove the business case and really tackle a lot of the infrastructure concerns with millimeter wave. We like our technology. We think we can really help in terms of efficiency around the antenna and signal quality and so forth. It’s really going to come down to the business case in the network environment.
Robert Bruggeworth
Speaking of networks, James wanted to pick up.
James Klein
Yes. Bill, from my perspective, millimeter wave is still a really small part of the overall roll out of 5G. Certainly below 6 gigahertz is the majority and today, that’s really in China. We’ve seen an uptick in the roll out of sub-6 gigahertz just in the last period and we expect to be well on track with what we’re doing in China.
Operator
And we’ll go next to Toshiya Hari with Goldman Sachs.
Toshiya Hari
Hi, guys. Can you hear me okay?
Robert Bruggeworth
Yes, sir.
Toshiya Hari
Okay, great. Bob, you talked about the smartphone market in calendar 2020 potentially being down 10% year-over-year in your remarks, and I fully appreciate the lack of visibility today in the marketplace. But assuming the market does come in, sort of consistent with that outlook, do you think, given the strength in 5G, the relative resilience of 5G and given some of the socket wins that you guys are aware of, you think you can grow the Mobile segment in calendar 2020 in that sort of backdrop?
Robert Bruggeworth
First, let me comments – both Mark and I both commented, it was over 10%, just to be clear, and we’ll really have to see how the year plays out to answer that. I mean, the percentage of 5G phones now is, obviously, going to be a lot greater. And there’s a lot more dollar content that Eric has talked about that $5 to $7, whether it’s mid-tier or high tier. So definitely, the opportunity is out there. We think there’s going to be a nice TAM this year in 5G, a lot of growth there. We’ll see how it plays out.
Toshiya Hari
Got it. And then as a quick follow-up. Mark, great job on the free cash flow generation and the year. You obviously kind of stayed away from giving guidance for fiscal 2021. But based on your CapEx commentary and the intention to be disciplined there, given that you did have multiple acquisitions in the year, I would think CapEx stays kind of around 5% of revenue, M&A may be less aggressive and that would leave room for buybacks. But how are you thinking about the balance there for the next couple of quarters? Thank you.
Mark Murphy
Yes. Toshiya, we’re pleased with what we’ve done on free cash flow as it relates to improving it. We’re not pleased that we’ve reached any sort of final result. It’s more of a waypoint for us. So we’re pleased with that.
As far as as CapEx levels and capital allocation priorities, nothing has changed in the story there. We’ve said that we would be moving down towards 5% to 7% of sales going forward and there’s no change there. We got to 5% a bit faster than, than we thought. But I think you can attribute that to, in part, the discipline and consistency of the team and enforcing capital discipline.
So I can’t give you a percent of sales, because then you’ll back into the sales, I give a number. So, I said the next few quarters will run around what we’ve been running the past several quarters, so it could be $40 million, $50 million at most.
As far as capital allocation, we’re still below our leverage target. We’re still actively looking at acquisitions and nothing has changed there around seeking value, creating acquisitions, principally technology assets for the mobile business and bolt-on van [ph] technology for IDP. And that’s what you’ve seen us do over the past year with over $1 billion worth of acquisitions.
We never provide – have provided rate and pace on the repurchase. We did repurchase $125 million in this last quarter. For the full-year, we repurchased $515 million in addition of the $1 billion we spent on acquisitions. We’ll report in the June quarter that we repurchase some shares, I can say that. But amounts and future repurchases will be a function of the opportunities that we have for cash, our leverage, our latest view on the outlook and other factors.
Operator
We’ll go next to Edward Snyder with Charter Equity Research.
Edward Snyder
Thanks a lot. Mark, you mentioned unfavorable mix in June is one of the factors that’s pressuring gross margins. But with mobile down and IDP up, shouldn’t we see the opposite effect, or is there a mix issue with IDP? And if I could, James, think guidance last quarter was that IDP would return to growth year-over-year in the March. It looks like you just missed that mark. Was this a shortfall in area? And then also did you get clearance to sell 5G products to Huawei?
And I’m sorry, but Eric, real quick, it sounds like your revenue mix is moving heavily to Korea and Asia, is that a trend we can expect to extend in the next calendar year? And how would you characterize the uptake of Samsung’s baseband and more importantly, your content on it relative to the other basebands you support? Thanks, guys.
Robert Bruggeworth
All right. Mark, do you remember the first question, it’s a five-part question. It was mix in June and…
Mark Murphy
Yes. Yes. So – and it’s a good question and a nuanced one. I – I’m not sure if you picked up. I did say, it was a product mix, specifically. So you are corrected that the IDP business is going to be a higher percentage of sales in the June quarter. But that aside, mix effects overall are the smaller part of this compared to just the manufacturing variances and and the lower revenues.
Robert Bruggeworth
Thanks, Mark. James, there was a question about year-over-year growth in IDP just being off by just a slight little bit and can you sell 5G components to Huawei?
James Klein
Yes. Let me handle the Huawei one first. So we are shipping some products that are exempt from restrictions to Huawei, but they’re immaterial in the amount of IDP’s revenue in the fourth quarter and in our guidance in Q1. And we currently have not received any licenses to ship products from the IDP portfolio to Huawei.
As far as year-over-year growth, and Mark had said last quarter that it was a long put, and we got awful close. I think, we’re headed for a really nice Q1 and be able to get back into year-over-year growth. Now we did have a really nice Q4 as well, as Mark and Bob talked about. We ended a great year in defense, where we had year-over-year total growth for defense business.
We began the ramps in both 5G and Wi-Fi 6 with a broad portfolio of products, including GaN. GaN is a great example there. We brought a lot of products and different frequencies and different power levels to the market and we almost doubled our GaN last quarter and I suspect we’ll do it again. So overall, really pleased with the growth that we had in the quarter and looking forward to Q1.
Steven Creviston
Yes, Ed, I’ll talk about your questions on mix Korea, in China, as well as alignment with LSI and so forth. So yes, certainly, in the near-term, the mix towards Korea and China is is pretty real. That’s because two factor, really. First of all, when you say Korea, a year ago, we’re just turning the corner and realigning our portfolio with Samsung, that’s gone tremendously well and it does continue to get better and better.
So as they’re adding more content, adding more premium content, a lot of that is addressable by us. So we expect that trend to absolutely continue and it’s a good thing. We want to continue to grow with Samsung and align across mass here, as well as integrated – or excuse me, as well as their premium tier and bring full integrated content to both of those tiers, as well as advanced tuning to power management.
So great alignment there. It should become mixing that way as we’re catching up and then even getting better with our share. And then China as well. I mean, that just affected. Our customers are doing so well.
If you look Vivo, Oppo and Xiaomi, really mixing towards 5G. We’ve got complete portfolio to support them. They’re serving not only China domestic, but they’re also exporting more and more. So we’ve got a lot we can do to help them across our portfolio. So naturally, yes, we’re sort of mixing that way, because they’re doing really well in the market currently. So that’s good.
Regarding LSI, Samsung’s own baseband, we love working with the guys. Of course, great partners. We’re aligned well. But I don’t think there’s anything particularly different there versus all the baseband manufacturers. We’re winning content in pretty much every category we sell across all the baseband manufacturers. So it’s good and we absolutely want to support them all.
Operator
We’ll go next to Blayne Curtis with Barclays.
Blayne Curtis
Hey, guys, thanks for taking my question. Just kind of curios, two things. The shape of the 5G, you kept your number and Qualcomm kept their number. So obviously, the mix of 5G is higher. I’m just kind of curious how if you look at March and what you’re expecting in June? How the shape of that deployment looks versus three months ago? There has been a lot of talk about potential delays and kind of just curious what you’ve already seen. And then can you just comment on how big China was in the March quarter? That’d be helpful as well.
Mark Murphy
Blayne, could you clarify, was that – when you said shape of 5G, was that an infrastructure question or ancillary question?
Blayne Curtis
Ancillary question, sorry. You said you kept your 5G number effectively, you said in line to slightly below. So that number was 2.50 if I remember, kind of just curious…
Robert Bruggeworth
That’s correct. That’s what we said in March, correct.
Blayne Curtis
What you’ve seen in the first-half year, March and June and kind of the shape of those deployments, if it’s the same or has it changed a bit?
Steven Creviston
Yes. So I guess, we don’t generally break it down by quarter necessarily. I think the key thing is, we’re seeing each region come into and come out of this virus-related demand and supply scenario differently. So it’s a little challenging to model, I think, what’s very clear is, first off, the calendar year has significantly impacted. And for every person that doesn’t buy a 4G phone in the first-half, when he goes to buy one in the second-half, it’s more likely he’s going to buy a 5G phone.
So we think if there’s any sort of silver lining, which it really isn’t much of a silver lining. But the good news for our industry at least is that, phones that don’t sell in the first-half will come back as more 5G content in the second-half more than likely.
Blayne Curtis
Gotcha.
Mark Murphy
Yes, Blayne, on China, we typically don’t break that out. It’s material, as you know. It ended up being less as we ended the quarter and reported it than it was in our guide. I can say that. And then if you wanted to know about Huawei, specifically, it held up a bit better than expected, but it was, I’d say, in line with what we said not a material part of our March quarter variants, and it remains a fraction of what we used to have with that customer in the past. We expect that customer to remain under 5% in the June quarter.
Blayne Curtis
Excellent.
Operator
We’ll go next to Srini Pajjuri with SMB – excuse me, SMBC Nikko Securities.
Srini Pajjuri
Thank you. A couple of questions, one on mobile then one on IDP. First on 5G. Eric, maybe you can talk about what sort of content expansion you’re seeing in early 5G designs? And as we go to the second-half, I’m guessing, there’s still some flagships that will be launched. And also, you’re probably going to seem much more in the mid-range and even in the low-end. So I’m just wondering how that content expansion might change as we go into second-half?
Steven Creviston
Yes. We’re – we talked in the past about what’s driving the 5G content. And, of course, there’s much tighter requirements on filtering. There’s more bands generally added to the phone. There’s also dual connect scenarios where the phones have to work on 4G and 5G at the same time, which drives a lot of content around the antennas, both tuning and switching and filtering and so forth, to pull all that off.
And so, as I mentioned earlier, in the call, I think, we’re – we see about a $5 to $7 increase in content per handset. And that’s relatively constant, whether you’re adding it to a premium smartphone or a mid-tier smartphone. I’m sure, as we get into mass tier later on, there’ll be some more fine-tuned regional designs. But for now, we’re seeing, as it continues to mix down through the portfolio, that dollar content ATTR is remaining pretty consistent.
Srini Pajjuri
Got it. And then on the IDP, we’ve been hearing a lot about China being very aggressive in terms of roll out. I believe, they’re talking about almost 0.5 billion base stations, I’m sorry – 0.5 million base stations this year. I’m just curious, obviously, your guiding for growth IDP next quarter. I’m just trying to understand how that plays out for you guys? Do you see that in one quarter? Is it – do you expect that to continue for the rest of the year? I’m just trying to understand how that roll out in your business?
James Klein
Yes. Definitely agree with over 0.5 million base stations deployed. We think the number will be closer to 600,000, if not, perhaps more. How we play is, we’ve got obviously a broad range of customers in the space. And as we talked about in prepared remarks, we’re ramping both GaN and small signal components into that broad set of customers. So definitely going to continue to be a growth engine for us.
As far as how it continues, we definitely think deployments continue in China throughout the year with additional tenders offered, and then it will pick up again in the first part of next year as they do additional sets of deployments. We’re also expecting, as we get into next year, the deployments to start to pick up in the U.S. and the rest of the world.
Operator
We’ll go next to Timothy Arcuri with UBS.
Timothy Arcuri
Hi, thanks, Mark, now that we’re done with fiscal 2020, can you give us how big your largest customer was in terms of percent of revenue?
Mark Murphy
I won’t do on the call, Tim. I mean, we’ll be releasing the K, and you’ll see that in the SEC financials there when we report that.
Timothy Arcuri
Okay. And then I guess, I had a question on Huawei. So I think you just said that they’d be like less than 5% for for June. So that implies that is going to get cut basically more than half Q-on-Q. I guess, the question is, in fact, if you look at their annual report, they have more than 110 days worth of inventory, it was up like 35 days year-over-year. They’ve obviously seen some of these restrictions coming. So they seem to be ordering ahead of all these restrictions.
So I guess, the question is, like, what sort of shelf life does the stuff that you’ve shipped to them have? Because you’re one of the only ones that – you’re the revenue with them has sort of re-expanded and breach that 10% range again, but it’s coming down in June. So I’m just wondering, is that the beginning of inventory digestion, or you think it’s just weak smartphone sell-through? Thanks.
Robert Bruggeworth
Tim, I want to make sure I understood your question. Number one, Huawei was not even close to 10% customer in March, not even close. And year-over-year, you guys will be amazed at the growth that this company has put up less walling. They’re not a significant customer. In June, they’re even less. So I don’t understand your question.
Second, when you say shelf life, I’m not sure I understand. We deal with Huawei and I talk to them. They don’t have our product stockpiled somewhere. I can tell you that. So I’m not sure how to answer your question.
Timothy Arcuri
That was good. That was the question. So thank you.
Robert Bruggeworth
Okay, good.
Operator
We’ll go next to Raji Gill with Needham & Company.
Raji Gill
Yes. Thank you and congrats on the solid results. Just wanted to get a sense from you in terms of adoption of GaN base stations relative to LDMOS. In the 5G infrastructure deployment in China and how your differentiation in that technology is going to lend itself to perhaps more market share gains throughout the year?
James Klein
Yes. We’re seeing rapid adoption of GaN across numerous customers in that space and certainly in sub-6 gigahertz space. We believe we differentiate in a broad set of areas. I think, we’ve got great performing technology that we’ve had in place for the better part of 20 years. We’ve got fantastic reliability. And we’ve been continuously adding feature sets and scale over the last couple of years in preparation for this wrap. So I definitely do believe that we’ll continue to grow at or faster than the rate of the market.
Raji Gill
And you touched upon Wi-Fi 6, the adoption there and it’s getting certified. What are some of the major applications that you’re seeing now for Wi-Fi 6 in your products?
Robert Bruggeworth
Yes. Wi-Fi 6 started with flagship smartphones, and I’ll let maybe Eric talk about that. But it’s clearly stimulated the CPAE [ph] of the business to integrate Wi-Fi 6 in their designs. And we see that happening really across the Board with high-end retail, but also in the MSO roll outs. It’s accelerating. Service providers are also adopting the distributed technology and bringing Wi-Fi 6 to – into that part of the market.
So for us, it’s very, very broad brand. We bring a great set of front-end modules and filtering capability to the space. And I think we’ll continue to have a significant amount of success in the market.
Robert Bruggeworth
Yes. And on the mobile side as well, yes, we’re seeing good traction. In fact, it was – it’s rapidly mixing. Our Wi-Fi business is rapidly mixing towards Wi-Fi 6. And especially as you move and add the new 7.2 gigahertz capability and so forth, we do have a lot of unique capability to bring to that. We participate specifically on the chip on board part of the market, not the SIP part of the market. And so, yes, it’s growing rapidly now. And I think the higher bandwidth and so forth is a key feature.
Operator
And that concludes today’s question-and-answer session. I’ll turn the conference back over to today’s management for any additional or closing remarks.
Douglas DeLieto
Thank you for joining us on our call tonight. We will be presenting via webcast at upcoming Investor conferences, and we invite everyone to listen in. Thanks, again, and have a good night.
Operator
And that concludes today’s conference. Thank you for your participation. You may now disconnect.
