Qorvo announced financial results for the Company’s fiscal 2021 fourth quarter ended April 3, 2021. Bob Bruggeworth, president and chief executive officer of Qorvo, said that their March quarterly revenue exceeded expectations driven by demand in 5G handsets and Wi-Fi 6 and 6E. Their outlook is strong as they are enabling multi-year upgrade cycles in existing markets and introducing disruptive technologies including ultra-wideband, RF-based biotechnology testing and MEMS-based solutions.
On a GAAP basis, revenue for Qorvo’s fiscal 2021 fourth quarter was $1.073 billion, gross margin was 49.3%, operating income was $293 million and diluted earnings per share was $2.60. On a non-GAAP basis, gross margin was 52.6%, operating income was $357 million and diluted earnings per share was $2.74.
Strategic Highlights
- Achieved record shipments of LB, MHB and UHB main path solutions and Wi-Fi 6E FEMs in support of leading Android smartphone OEMs
- Continued to expand content opportunity with leading Android OEMs by securing complete main path solutions and secondary transmit in the diversity path
- Selected by a provider of consumer IoT products to integrate UWB into a broad set of connected home devices
- Honored by Samsung with its Best Quality Award in recognition of Qorvo’s innovation and outstanding performance in support of the Galaxy product family
- Secured full Wi-Fi 6 RFFE BOM in support of major U.S. MSO gateway and released multiple 5 GHz iFEMs delivering improved band isolation and enhancing capacity and range in tri-band Wi-Fi 6 home mesh networks
- Received initial production orders for cellular V2X front end modules and BAW coexistence filters to support the leading European automotive OEMs
- Supported successful landing of NASA’s JPL Mars Perseverance rover with components integrated into the descent radar
- Released reconfigurable dual-band (S band and X band) GaN power amplifier MMIC, enabling more compact next-generation radar systems
- Continued to ramp shipments of GaN PAs and small signal components to major base station OEM supporting U.S. C-band mMIMO deployments and achieved additional design wins for mMIMO deployments in Japan, Korea and Canada
- After the quarter, received an EUA from the FDA for the Omnia COVID-19 rapid antigen test, utilizing BAW sensors for high sensitivity and specificity
- After the quarter, acquired NextInput, a pioneer in the emerging field of force sensing human-machine interface solutions utilizing MEMS sensors for smartphones, wearables, automobiles and other applications
Financial Commentary and Outlook
Mark Murphy, Chief Financial Officer of Qorvo, said that he expects robust end market demand to support double-digit revenue growth and operating margin expansion for their current fiscal year ending March 2022. On this outlook and projected free cash flow, the board of directors has approved a $2 billion share repurchase authorization.
Qorvo currently believes the demand environment in its end markets supports the following expectations for the June 2021 quarter:
- Quarterly revenue of $1.065 billion to $1.095 billion
- Non-GAAP gross margin of approximately 50%
- Non-GAAP diluted earnings per share of $2.45 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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