On 2nd Augsut Qorvo announced their financial results for the fiscal 2017 first quarter, that ended July 2, 2016. On a GAAP basis, June quarterly revenue increased 4% year-over-year and 15% sequentially to $698.5 million. Gross margin was 39.6%, operating expenses were $270.7 million, operating income was $5.7 million, and net loss was $5.7 million, or a loss of $0.04 per share based on 127.5 million weighted average shares outstanding.
Gross margin decreased sequentially on both a GAAP and non-GAAP basis, primarily due to a mix shift to lower margin products. Operating expenses increased sequentially on both a GAAP and non-GAAP basis, primarily due to higher R&D expenses, increased variable compensation expense, and the addition of GreenPeak Technologies. The higher R&D expense reflects increased investment in high-performance filter designers, SAW and BAW process engineers, and associated material costs for prototypes.
On a non-GAAP basis, gross margin was 48.2%, operating expenses were $168.6 million, operating income was $167.6 million, or 24.0% of sales, and net income was $143.1 million, or $1.08 per diluted share based on 132.6 million weighted average shares outstanding.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, "Qorvo today is the number-one or number-two player in the majority of our growth markets, and we are investing to extend our leadership. We are building a technology moat to maintain leadership where we are number one, and where we are number two, we are investing to advance from a challenger to the leader."
In the June quarter, Qorvo saw customer order activity accelerate as the quarter progressed, and the entire Qorvo Team ran hard to satisfy demand. In the September quarter, they continue to see strong demand in support of this year's most popular devices, and they are rapidly expanding capabilities to develop new highly integrated solutions for large customer opportunities launching in 2017 and 2018.
Quarterly Highlights
- On a GAAP basis, revenue totaled $698.5 million, gross margin was 39.6%, operating income was $5.7 million, and loss per share was $0.04
- On a Non-GAAP basis, revenue was $697.6 million, gross margin was 48.2%, operating income was $167.6 million, and diluted EPS was $1.08
- Mobile Products supported multiple performance-tier and premium-tier smartphones with the industry's most complete product portfolio, including highly integrated high-, mid-, and low-band solutions, envelope tracking PMICs, filters, switches, LNAs, and antenna control solutions
- Qorvo production released its next-generation BAW filter process, and Mobile Products expanded customer engagements with its ultra-high performance BAW-based quadplexers and hexaplexers
- Qorvo expanded its presence in the Internet of Things (IoT) with the acquisition of GreenPeak Technologies
- IDP continued to support the roll-out of next-generation wireless infrastructure with key 5G and massive MIMO design wins
- Qorvo completed its $500 million ASR, retiring an additional 400,000 shares, with $250 million remaining in the Company's share repurchase program
