The holding now accounts for 1.31% of the fund’s AUM, placing it outside the fund’s top five holdings.On November 12, 2025, Staley Capital Advisers reduced its holding in Mercury Systems (MRCY 2.76%), cutting its stake by $6.51 million, according to an SEC 13-F filing.What happenedStaley Capital Advisers sold 58,820 shares of Mercury Systems in the third quarter of 2025. The transaction lowered the fund’s position to 411,310 shares, worth $31.84 million as of quarter-end.Staley Capital Advisers’ stake in Me ...

Summary of Sonos Conference Call Company Overview - **Company**: Sonos - **Industry**: Consumer Audio and Connected Home Technology - **CEO**: Tom Conrad, who has been with Sonos for nearly a year, including six months as interim CEO [2][6] Core Business and Product Offerings - Sonos is a premium home audio company offering a wide range of products including: - Home theater systems, sound bars, subwoofers, standalone speakers, and portable speakers [2][3] - Sonos Ace headphones, known for noise-canceling features and comfort [2] - Professional audio products such as power amplifiers and in-wall speakers [3] Recent Challenges and Recovery - The company faced significant software performance issues in 2024, which impacted reliability and functionality [7] - Under Tom Conrad's leadership, Sonos has made substantial progress in restoring software performance and operational efficiency, cutting nearly $100 million in operating expenses [8][9] Historical Context and Evolution - Sonos has evolved through three distinct chapters: 1. **Founder's Era**: Focused on filling homes with music and establishing a strong product family [10] 2. **Patrick Spence's Leadership**: Transitioned to a hardware execution model, introducing two new products annually [11] 3. **Current Leadership**: Aims to integrate hardware excellence with a focus on the overall Sonos platform and user experience [12] Market Opportunity - There are over 300 million premium music streaming subscribers and 225 million premium TV streaming subscribers globally, indicating a significant market for Sonos [12] - Sonos currently has 17 million homes using its products, with potential for growth as the company aims to increase the average number of products per household [13][31] Competitive Landscape - Sonos competes with various companies across different segments: - JBL in portable speakers - Samsung in soundbars and home theater - Sony and Bose in headphones [20] - Unlike competitors, Sonos aims to provide a comprehensive audio experience rather than just individual products [21] Strategic Focus Areas 1. **Marketing**: Enhancing brand storytelling and awareness, with a new Chief Marketing Officer joining to lead these efforts [14][15] 2. **Product Performance**: Returning to a standard of excellence in software and hardware reliability [16] 3. **Product Assortment**: Ensuring that each product enhances the overall Sonos system, rather than competing in isolated categories [18] Innovation Strategy - Sonos emphasizes leveraging its brand, intellectual property, and customer loyalty to identify new business opportunities [27][28] - The company aims to innovate not just through new products but also by improving existing offerings and operational efficiencies [32] Future Vision - In five years, Sonos aims to be synonymous with premium audio experiences, expanding beyond music and home theater to include conversational AI experiences [34] - The focus will be on delivering high-quality software, effective marketing, and a cohesive product assortment that enhances the Sonos ecosystem [34] Key Metrics and Goals - The company is closely monitoring new household acquisition metrics, particularly following the price adjustment of the Era 100 speaker, which has led to increased sales [36][38]

Core Insights - Qorvo reported Q1 FY2026 earnings with GAAP revenue of $818.8 million and non-GAAP diluted EPS of $0.92, both missing analyst estimates of $868.8 million and $1.13 respectively [1][5] - Non-GAAP gross margin improved to 44.0%, up 3.1 percentage points year-over-year, indicating stronger profitability despite soft sales [1][6] Financial Performance - Q1 FY2026 diluted EPS (Non-GAAP) was $0.92, below the estimate of $1.13 but up 5.7% from $0.87 in Q1 FY2025 [2] - GAAP revenue decreased by 7.7% year-over-year from $886.7 million in Q1 FY2025 to $818.8 million in Q1 FY2026 [2] - Non-GAAP operating income rose 10.3% to $108.2 million compared to $98.1 million in Q1 FY2025 [2][6] - Free cash flow surged to $145.4 million, a 339% increase from $42.85 million in Q1 FY2025 [2][6] Business Focus and Strategy - Qorvo is concentrating on enhancing its R&D pipeline, strengthening customer relationships, and scaling high-value operations while reducing exposure to lower-margin segments [4] - The company is prioritizing new design wins in power management ICs, automotive ultra-wideband chips, and defense electronics [4] - Qorvo's customer base is heavily concentrated, with Apple and Samsung accounting for significant portions of sales, which poses challenges during periods of low demand [5] Segment Performance - The High Performance Analog (HPA) unit reported a 6.1% year-over-year revenue increase to $137.4 million [8] - The Connectivity & Sensors Group (CSG) saw revenue decline by 4.1% to $110.2 million but improved its operating loss from $19.5 million to $7.5 million [8] - The Advanced Cellular Group (ACG) experienced an 11.1% revenue decline to $571.2 million, attributed to weaker demand and a strategic pullback from the low-tier Android market [8] Product Development - Qorvo is investing in technologies for faster wireless data and improved battery efficiency, focusing on GaAs, GaN, BAW, and SAW technologies [9] - The company is advancing its power management ICs and ultra-wideband chips, leveraging AI and machine learning for enhanced product performance [9] Future Outlook - Management projects Q2 FY2026 revenue of approximately $1.025 billion, with non-GAAP gross margin expected to rise to 48% to 50% and non-GAAP EPS to reach $2.00 [10] - Growth is anticipated to be driven by new customer device launches, particularly from major accounts [10]