Qorvo, a leading provider of innovative RF solutions that connect the world, announced financial results for the Company’s fiscal 2022 first quarter ended July 3, 2021. On a GAAP basis, revenue for Qorvo’s fiscal 2022 first quarter was $1.110 billion, gross margin was 49.2%, operating income was $297 million and diluted earnings per share was $2.51. On a non-GAAP basis, gross margin was 52.5%, operating income was $367 million and diluted earnings per share was $2.83.
Bob Bruggeworth, President and Chief Executive Officer of Qorvo, said that the Qorvo team delivered an exceptional June quarter, driven by product and technology leadership and multi-year technology upgrade cycles. End market demand is robust, and their outlook is strong. Qorvo is investing in new product areas and differentiated technologies to broaden their reach and extend their leadership in integrated RF modules and other products.
Strategic Highlights
- Launched next-generation complete main path solution, including LB, MHB and UHB integrated modules, offering higher output power and enhanced MIMO support for upcoming 5G phones
- Began sampling Qorvo's first 5G DRx, featuring best-in-class receive sensitivity for sub-6 GHz 5G UHB
- Achieved interoperability of Qorvo’s UWB products with the Apple U1 chip and the recently introduced Nearby Interaction protocol, accelerating UWB customer design activity
- Secured new reference design engagements in mobile phones with Wi-Fi 6E chip-on-board FEMs delivering superior performance and enhancing design flexibility
- Achieved record automotive revenue and shipped a broad range of solutions for leading automotive OEMs, including MEMS-based touch sensor solutions enabling configurable smart interiors
- Secured BAW filter design win with leading supplier of high-end audio speakers to support pairing of Wi-Fi 6 and Bluetooth® low energy
- Partnered with leading supplier of home mesh networks to introduce first Wi-Fi 6 router with integrated Bluetooth low energy, Thread and Zigbee multi-protocol operation, featuring ConcurrentConnect™ technology
- Released 40V motor control solution enabling continued transition to higher voltage battery power tools
- Increased shipments to major OEMs in support of 5G sub-6 GHz mMIMO and macro deployments in the U.S., Japan, Korea and Canada and achieved initial design wins supporting mMIMO deployment in India
- Achieved BAW filter design wins with China-based OEM for 3.5 GHz and 4.9 GHz 5G small cell applications
- Introduced GaN integrated PA modules for mMIMO systems and released family of high efficiency power amplifiers for 5G small cells serving densely populated areas
Financial Commentary and Outlook
Mark Murphy, Chief Financial Officer of Qorvo, said, “In the September quarter, we expect strength in our business to continue. For the full fiscal year, we project gross margin to be above 52%. We also forecast another year of free cash flow growth while investing in capacity to support our outlook.”
Qorvo currently believes the demand environment in its end markets supports the following expectations for the September 2021 quarter:
- Quarterly revenue of $1.235 billion to $1.265 billion
- Non-GAAP gross margin between 52% and 52.5%
- Non-GAAP diluted earnings per share of $3.24 at the midpoint of guidance
Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.
