Qorvo has announced financial results for the fiscal 2020 second quarter, that ended on September 28, 2019. Qorvo delivered a solid quarter, as their technology investments, portfolio management, and operational discipline yielded strong and consistent performance. They showed increasing 5G design activity and are working towards increasing RF integration. During the quarter, they successfully integrated their programmable power management products and technologies into IDP. Following the quarter, they completed the acquisition of Cavendish Kinetics, adding RF MEMS technology and expanding Qorvo’s technology and product leadership.
Strategic Highlights for the Quarter
- Secured new design wins and expanded participation in the mass-market tier of leading Korea-based smartphone manufacturer
- Selected by top four China-based smartphone OEMs to supply mid-/high-band PAD and other highly integrated solutions for upcoming 5G smartphones
- Selected to supply recently launched Wi-Fi 6 front end modules (FEMs) in support of multiple leading China-based smartphone OEMs
- Received first purchase orders for next-generation multiplexers featuring Qorvo’s recently launched micro BAW technology
- Launched the world’s first Wi-Fi 6 dual-band FEM and world’s first Wi-Fi 6 iFEM for CPE applications, expanding Wi-Fi portfolio for retail, enterprise, and network operators
- Secured design win to supply V2X co-existence 5.9 GHz BAW filter to top-tier automotive OEM for calendar 2020 shipments and shipped Wi-Fi FEMs supporting multiple automotive OEMs
- Received purchase orders to supply GaN amplifiers for X-band and Ka-band defense radar and communications programs
- Expanded portfolio of integrated motor control power management solutions supporting brushless DC motors in white goods, power tools, and other products
- Completed, following the quarter, acquisition of Cavendish Kinetics, adding RF MEMS capabilities and expanding technical leadership in switching and tuning
- Announced the authorization of a new $1 billion share repurchase program
On a GAAP basis, revenue for Qorvo’s fiscal 2020 second quarter was $807 million, gross margin was 40.1%, operating income was $113 million and diluted earnings per share were $0.70. On a non-GAAP basis, gross margin was 46.5%, operating income was $208 million and diluted earnings per share were $1.52.
Qorvo’s December quarter guidance reflects continued robust mobile demand supported by an increase in 5G handset volumes. Separately, as a result of the market outlook, operating performance, and free cash flow forecast, Qorvo’s Board of Directors has approved a new $1 billion share repurchase authorization. Qorvo currently believes the demand environment in its end markets supports the following expectations for the December 2019 quarter:
- Quarterly revenue in the range of $840 million to $860 million
- Non-GAAP gross margin of approximately 48%
- Non-GAAP diluted earnings per share of $1.67 at the midpoint of guidance
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