Qorvo released its financial results for the fiscal 2020 third quarter (Q3), ending December 28, 2019. The company delivered a good December quarter with $869 Million in revenue. In mobile products, 5G design wins are accelerating, and in IDP (Infrastructure & Defense Products), Qorvo is enjoying robust design win momentum. The company is also looking forward to welcoming two industry-leading teams, Decawave and Custom MMIC, to the Qorvo family, thus expanding its technology portfolio and product offerings.
Strategic Highlights:
- Awarded broad-based design wins to supply highly integrated 4G/5G low-, mid-/high-, and ultra-high band solutions for second-generation 5G smartphones
- Chosen to supply ultra-high band FEMs on multiple 5G cellular chipsets, leveraging performance advantages at higher frequencies and enabling next wave of 5G smartphones
- Secured new 4G and 5G design wins and extended leadership in BAW-based multiplexers, including hexaplexers and recently launched micro BAW-based quadplexer
- Expanded GaN customer engagements with ramp of high-power amplifiers at a third major OEM to support 5G massive MIMO deployments
- Launched high power GaAs FEM addressing enhanced performance requirements of second-generation 5G millimeter wave base stations
- Commenced volume shipments of BAW filters to a top-tier infrastructure OEM supporting China Mobile's 5G small cell deployment
- Introduced industry's first solution combining a Zigbee, Thread and Bluetooth Low Energy SoC with a Wi-Fi 6 FEM to enable next-generation distributed Wi-Fi networks
- Secured new design wins and increased shipments of Wi-Fi 6 FEMs across CPE, retail and mobile
- Sampled complete V2X front end solution, including 5.9 GHz Wi-Fi coexistence BAW filter, to multiple automotive OEMs and tier-one suppliers
- Shipped power management ICs into datacenter solid state drives for two of the top three storage providers
- Signed, following the quarter, definitive agreements to acquire Decawave, a pioneer in ultra-wideband (UWB) technology and provider of UWB solutions for mobile, automotive and IoT applications; and Custom MMIC, a leading supplier of high-performance GaAs and GaN MMICs for defense and aerospace applications
Financial Outlook
According to Mark Murphy, Chief Financial Officer of Qorvo, the company’s December quarter results and March quarter guidance reflect strength in end markets of 5G, Wi-Fi and Defense and continued strong operating performance. Given the operating results and capital management, the company now forecasts free cash flow for the full fiscal year of over $700 million. Qorvo currently believes the demand environment in its end markets supports the following expectations for the March 2020 quarter:
- Quarterly revenue in the range of $800 million to $840 million
- Non-GAAP gross margin of approximately 48.5%
- Non-GAAP diluted earnings per share of $1.55 at the midpoint of guidance
Qorvo's actual quarterly results may differ from these expectations and projections, and such differences may be material.
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