On a GAAP basis, revenue for Qorvo’s fiscal 2018 fourth quarter was $665.4 million, gross margin was 38.0%, operating loss was $31.8 million, and loss per share was $0.10. On a non-GAAP basis, revenue for Qorvo’s fiscal 2018 fourth quarter was $664.4 million, gross margin was 48.0%, operating income was $163.1 million, or 24.5% of sales, and diluted earnings per share was $1.07.
Bob Bruggeworth, president and chief executive officer of Qorvo, said that they are pleased with their March quarterly performance, during which the Qorvo team delivered revenue and EPS above the midpoint of their range and record free cash flow. In fiscal 2018, IDP expanded margins and achieved outstanding revenue growth, up over 20%, while Mobile Products expanded margins and built a solid foundation for profitable growth. He is also very pleased with their BAW-based design win momentum across multiple products and customers.
Quarterly Highlights
- Delivered record IDP revenue of $212.0 million, up 26% year over year, led by IoT, defense and GaN
- Achieved record smart home revenue driven by “Pod in Every Room™” use cases, with multiple 2.4GHz, 5GHz and BAW filter design wins with leading meshed Wi-Fi home networking system providers
- Expanded support of leading China-based smartphone manufacturer with Phase 6 RF Fusion™, as well as antenna tuning and envelope tracking (ET), for a marquee smartphone
- Received production orders from leading Korea-based smartphone manufacturer for high-band, BAW-based RF Fusion modules for 2018 high-volume, mass-tier smartphones
- Announced industry’s most powerful GaN-on-SiC transistor, boosting signal integrity and range with 1.8KW of output power at 65V
- Extended 5G base station market leadership by adding the industry’s first 28GHz GaN-on-SiC front end module
- Released industry-first BAW filter with 4X power handling capabilities for 5G massive-MIMO FEMs
- Expanded shipments of BAW-based band 1/3 quadplexers and commenced production shipments of Phase 6 RF Fusion to leading performance-tier smartphone manufacturers
- Honored with inclusion in China Mobile’s 5G Terminal Forerunner Program at the GTI International Industry Summit
Mark Murphy, Chief Financial Officer of Qorvo, said, that their fourth quarter results were consistent with the guidance they had provided and reflect higher than expected revenue in their Mobile business. They also achieved their second consecutive quarter of record free cash flow. For the June quarter, their guidance reflects near-term impacts of product mix and costs associated with lower utilization at their SAW filter fabs. For fiscal year 2019, they anticipate year-over-year margin expansion and strong free cash flow growth.
Qorvo currently believes the demand environment in its end markets supports the following non-GAAP expectations for the June 2018 quarter:
- Quarterly revenue in the range of $645 million to $665 million
- Gross margin of approximately 44%
- Diluted earnings per share of $0.75 at the midpoint of guidance
