Qorvo has announced financial results for the Company's fiscal 2017 second quarter, ended October 1, 2016. They delivered 22% year-over-year growth and achieving their goal of non-GAAP operating expenses at 20% of sales. Their 2017 second quarter revenue increased 23.8% sequentially to $864.7 million. Gross margin was 36.6%, operating income was $45.4 million, and net income was $11.8 million, or diluted EPS of $0.09.
On a non-GAAP basis, gross margin was 42.8%, operating expenses were $172.9 million, operating income was $196.8 million, or 22.8% of sales, and net income was $170.4 million, or diluted EPS of $1.29. Gross margin decreased sequentially on both a GAAP and non-GAAP basis, due primarily to lower than expected manufacturing yields during a steep product ramp to a large customer.
On a GAAP basis, fiscal 2017 second quarter revenue increased 22.1% year-over-year and 23.8% sequentially to $864.7 million.
Business Highlights for 2nd Fiscal Quarter, 2017
- Mobile Products (MP) revenue increased 22% year-over-year to $706.1 million, supported by growth in premium-tier and mid-tier 4G LTE mobile devices
- MP enjoyed strong demand for BAW-based multiplexer solutions and delivered module prototypes containing BAW-based hexaplexers
- MP secured multiple placements of RF Fusion™ high-band, mid-band and low-band 4G LTE solutions in upcoming flagship smartphones at leading China-based smartphone OEMs
- Infrastructure and Defense Products (IDP) revenue increased 22% year-over-year to $157.6 million, supported by growth in wireless infrastructure, WiFi, Defense & Aerospace, and IoT
- IDP enjoyed broad-based design win activity, highlighted by GaN on SiC products for military S-Band radar applications and 5GHz WiFi PAs for retail and enterprise
- Qorvo repurchased $91 million of common stock in the fiscal second quarter and today announced a new $500 million share repurchase program
Bob Bruggeworth, president and chief executive officer of Qorvo, said - The Qorvo team did an excellent job delivering 22% year-over-year growth and achieving their goal of non-GAAP operating expenses at 20% of sales. At the same time, they made progress advancing core technologies and developing highly integrated Qorvo solutions for large customer opportunities in 2017 and 2018.
Qorvo also announced that Qorvo's Board of Directors this week has authorized the repurchase of up to $500 million of the Company's outstanding common stock. The new repurchase program includes approximately $159 million authorized on a prior program that was set to expire on November 4, 2016.
Under the share repurchase program, share repurchases will be made in accordance with applicable securities laws on the open market or in privately negotiated transactions. The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchases will depend on general market conditions, regulatory requirements, alternative investment opportunities and other considerations. The program does not require the Company to repurchase a minimum number of shares and does not have a fixed term, and it may be modified, suspended or terminated at any time without prior notice.
