Qorvo, a leading global provider of connectivity and power solutions, has announced financial results for the Company’s fiscal 2023 third quarter ended December 31, 2022.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, “The Qorvo team is operating well in navigating a challenging environment and taking actions to position the Company for growth and improved performance. We are introducing best-in-class products and technologies, and our customers are recognizing us with design wins, quality awards, and new and expanded programs. In the December quarter, channel inventories declined, and we expect them to continue to decline this quarter. In 2023 and beyond, the secular trends in our businesses remain strong. Customers increasingly require higher levels of performance, integration and functional density to deliver successive improvements in next-generation products.”
Key Strategic Highlights
- Began sampling integrated solution combining high voltage power conversion PMIC with SiC power switches to control GaN RF high power amplifier, reducing total solution size by up to 30% and expanding content opportunity in D&A radar power systems
- Expanded SHIP (state-of-the-art heterogenous integrated packaging) government contract to develop multichip modules combining digital optical devices with Qorvo mixed-signal RF
- Delivered multi-chip solutions, including high-frequency BAW and GaN PA, for LEO satellites and other aerospace applications and secured new design wins supporting cellular-to-satellite links
- Commenced pre-production shipments of first integrated PA modules (PAMs) to tier-one European infrastructure OEM for 5G massive-MIMO base stations
- Began sampling next-generation infrastructure PAM, offering market-leading efficiency for 5G massive-MIMO installations, to the leading European infrastructure OEMs
- Sampled CATV power doubler amplifier maintaining linearity and extending bandwidth to enable higher-throughput DOCSIS 4.0 capabilities with industry-leading power efficiency
- Expanded Wi-Fi content at Korea-based smartphone OEM to include Wi-Fi 6E and Wi-Fi 7 and ramped Wi-Fi 7 FEMs for AP/routers for smart home ecosystem customer
- Commenced sampling of 5 GHz and 6 GHz Wi-Fi 7 filters leveraging Qorvo’s next-generation BAW process and enabling worldwide Wi-Fi 7 frequency coverage
- Commenced volume shipments of MEMS-based sensors enabling enhanced HMI experience in true wireless stereo earbuds, replacing legacy capacitive touch sensor technology
- Commenced production ramp of multiple components in Korea-based smartphone OEM’s flagship smartphone and secured multiple Android design wins in support of 2023 devices
- Selected by North American Android OEM to supply multiple solutions, including UWB, antenna tuning and BAW-based antennaplexing, supporting 2023 smartphone launches
- Received Honor’s 2022 Golden Supplier Award and earned multiple Vivo 2022 quality awards
On a GAAP basis, revenue for Qorvo’s fiscal 2023 third quarter was $743 million, gross margin was 36.1%, operating income was $9 million and loss per share was $0.16. On a non-GAAP basis, gross margin was 40.9%, operating income was $99 million and diluted earnings per share was $0.75.
Financial Commentary and Outlook
Grant Brown, the chief financial officer of Qorvo, said, “We are encouraged by the channel inventory consumption we saw in the December quarter, and we expect channel inventories will continue to be consumed in the March quarter. In addition to the ongoing alignment of supply and demand, we expect unit volumes across our businesses will recover later this year, and we have secured content gains in large customer programs, all of which will support improved financial performance.”
Qorvo’s current outlook for the March 2023 quarter is:
- Quarterly revenue of $600 million to $640 million
- Non-GAAP gross margin of approximately 41%
- Non-GAAP diluted earnings per share in the range of $0.10 to $0.15
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