Qorvo has released results for its fiscal 2020 first quarter that ended June 29, 2019. According to Bob Bruggeworth, the President and CEO of Qorvo, the company delivered a strong June quarter, highlighting its technology portfolio and operational excellence. It effectively managed its business and capitalized on underlying growth drivers in markets despite global trade and economic headwinds. Looking forward, Qorvo’s products and technologies position it to lead as 5G ramps and IoT proliferates.
Strategic Highlights of the report:
- Expanded GaN shipments into S-band (2-4 GHz) and C-band (4-8 GHz) applications for defense radar programs, complementing strong presence in high frequency bands up through millimeter wave
- Selected to supply wideband GaN amplifiers for low Earth orbit satellites enabling OneWeb space-based internet connectivity anywhere in the world
- Expanded Wi-Fi 6 portfolio with high-frequency 5 GHz BAW filters and secured design win for BAW-based iFEM enabling industry-leading range, throughput and signal integrity
- Secured design wins for coexistence BAW filters and LNAs in support of General Motors, Volkswagen and other automotive OEMs
- Extended power management technologies into new verticals and delivered power management solutions supporting a range of applications, including Skil power tools
- Selected by leading Korea-based smartphone manufacturer to supply antenna tuning, high-band and ultra-high band solutions for 5G marquee device ramping in 2019
- Secured design win at a leading China-based OEM to supply complete set of low-, high- and ultra-high-band solutions for upcoming 5G smartphone
- Supplied Samsung with antenna tuning, high-band PAD and Wi-Fi iFEM for mass-market Galaxy A Series, significantly expanding product and dollar content in the mid-tier
- Commenced volume shipments of band 1/3/7 BAW-based hexaplexers, enabling higher orders of carrier aggregation for the export market, to multiple leading China-based smartphone OEMs
- Received orders for newly released BAW-based antenna-plexers and awarded first design win for programmable 5G antenna tuner capable of performing aperture and impedance tuning
On a GAAP basis, revenue for Qorvo’s fiscal 2020 first quarter was $776 million with a gross margin of 37.9%. The overall operating income stood at $55 million and diluted earnings per share were recorded at $0.33. On a non-GAAP basis, gross margin was 46.2%, operating income was $190 million and diluted earnings per share were $1.36.
Financial Outlook
According to Mark Murphy, CFO of Qorvo, the company delivered June quarter results above revised guidance on strong operating performance and increased overall mobile demand, including select product shipments to Huawei late in the quarter. The company’s record June quarter free cash flow reflects strong operating income generation, working capital effects, and capex discipline. The outlook for the September quarter considers seasonal ramps offset by the continued impact of U.S. Department of Commerce trade restrictions.
Qorvo currently believes the demand environment in its end markets supports the following expectations for the September 2019 quarter:
- Quarterly revenue in the range of $745 million to $765 million
- Non-GAAP gross margin of approximately 46% to 46.5%
- Non-GAAP diluted earnings per share of $1.30 at the midpoint of guidance
Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.
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