Qorvo has announced financial results for the Company’s fiscal 2021 second quarter, ended October 3, 2020. They beat their updated guidance on revenue, gross margin and EPS. On a GAAP basis, revenue for Qorvo’s fiscal 2021 second quarter was $1.06 billion, gross margin was 46.4%, operating income was $222 million and diluted earnings per share was $1.18.
Bob Bruggeworth, president and CEO of Qorvo said that their strength was diversified across customers and supported by multiyear technology upgrade cycles, including 5G and Wi-Fi 6. Customers are requiring more and better RF in highly integrated form factors to enable their next-generation products.
Strategic Highlights for the Quarter
- Expanded shipments of integrated main path solutions, including low-band, mid-/high- and ultra-high-band modules, across multiple tier-one smartphone OEMs
- Increased volume shipments of BAW-based antennaplexer solutions to multiple tier-one smartphone OEMs
- Acquired ultra-wideband (UWB) software and system solution pioneer 7Hugs Labs S.A.S. to enhance Qorvo’s capabilities in UWB system solutions and accelerate adoption across mobile, IoT and automotive ecosystems
- Signed partnership agreement with leading design services company Sigma Connectivity to develop advanced UWB solutions and assist customers in the creation of breakthrough applications
- Enjoyed broad-based content gains in Wi-Fi 6 in support of leading suppliers of smartphones, tablets, mesh networks, gateways, smart speakers and virtual reality headsets
- Awarded multiple design wins in support of 5G massive MIMO base stations and commenced shipments of GaN amplifiers for massive MIMO C-band base station deployments
- Launched high-performance BAW filters for 5G small cells and repeaters to enable 5G band 41 and Wi-Fi coexistence
- Achieved strong growth in power management products driven by solid-state storage in client/enterprise computing and brushless motor control applications
- Awarded multi-year U.S. government State-of-the-Art Heterogeneous Integrated Packaging (SHIP) program, recognizing Qorvo’s leadership in advanced RF semiconductor packaging
Financial Commentary and Outlook
Mark Murphy, CFO of Qorvo said they project robust end-market demand to continue into the December quarter. With their product and technology mix, operating performance and capital discipline, they are projecting record operating margins in the current quarter and free cash flow of approximately $900 million for the fiscal year.
Qorvo currently believes the demand environment in its end markets supports the following expectations for the December 2020 quarter:
- Quarterly revenue of $1.06 billion, plus or minus $15 million
- Non-GAAP gross margin of approximately 52.5%
- Non-GAAP diluted earnings per share of $2.65 at the midpoint of guidance
Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.
