Qorvo, has announced its financial results for the fiscal 2021 first quarter, ended June 27, 2020. On a GAAP basis, Qorvo reported its revenue for fiscal 2021 first quarter to be $787 million, with gross margin being 41.4%.
According to Bob Bruggeworth, President and Chief Executive Officer of Qorvo, the company delivered an exceptional June quarter, with revenue and EPS well above guidance. The Qorvo team continues to operate very well in a challenging environment and is supporting leading customers with best-in-class products. The company’s technology investments are aligned with long-term market drivers in 5G handsets and infrastructure, defense, Wi-Fi 6 and IoT.
Strategic Highlights
- Achieved record infrastructure revenue supporting 5G base station deployments and sampled GaN power amplifiers for upcoming U.S. C-band spectrum allocations
- Ramped programmable power management solution and Wi-Fi 6 FEM for a leading drone manufacturer, enabling longer flight time, greater range and larger payload
- Awarded design wins for integrated GaN multi-chip broadband Tx/Rx module and 50-watt GaN power amplifier for defense radar programs
- Experienced continued strong demand for Wi-Fi 6 products, including FEMs and BAW filters, driven by work-from-home trends
- Commenced shipments of integrated ultra-low power, multi-protocol Zigbee, Bluetooth® Low Energy and Thread IoT solution supporting one of the largest providers of smart home infrastructure solutions
- Requested an emergency use authorization (EUA) from the FDA for COVID-19 antibody testing using Qorvo Biotechnologies' platform featuring a unique sensor technology
- Ramped innovative antennaplexer solution addressing antenna network complexity and optimizing system efficiency for upcoming foldable smartphone
- Captured complete main path (highly integrated low-band, mid-/high-band and ultra-high-band modules) at leading Android® smartphone manufacturers for upcoming 5G product launches
- Commenced high volume UWB shipments enabling superior accuracy and reliability in spatial awareness applications, including contact tracing/social distancing, for numerous customers globally
- Increased mobile power management shipments, driven by adoption of 4G/5G dual transmit
Financial Commentary and Outlook
As according to Mark Murphy, Chief Financial Officer of Qorvo, the rollout of 5G and Qorvo's operational performance helped drive a June quarter well above expectations. During the September quarter, the company expects robust end market demand and ongoing operational improvements to drive healthy revenue growth, gross margin expansion to approximately 50%, and continued strong free cash flow.
Qorvo currently believes the demand environment in its end markets supports the following expectations for the September 2020 quarter:
- Quarterly revenue in the range of $925 million to $955 million
- Non-GAAP gross margin of approximately 50%
- Non-GAAP diluted earnings per share of $1.90 at the midpoint of guidance
Note: Fiscal year 2021 is a 53-week fiscal year, and the September quarter is a 14-week fiscal quarter. Qorvo's actual quarterly results may differ from these expectations and projections, and such differences may be material.
