Qorvo Q2: strong and consistent performance
CEO Bruggeworth "especially pleased" with 5G design activity and the trend toward increasing RF integration
RF company Qorvo has announced financial results for the company's fiscal 2020 second quarter, ended September 28, 2019. On a GAAP basis, revenue for Qorvo's Q2 2020 was $807 million, gross margin was 40.1 percent, operating income was $113 million and diluted earnings per share was $0.70. On a non-GAAP basis, gross margin was 46.5 percent, operating income was $208 million and diluted earnings per share was $1.52.
Bob Bruggeworth, president and chief executive officer of Qorvo, said: "Qorvo delivered another solid quarter, as our technology investments, portfolio management, and operational discipline continued to yield strong and consistent performance. We are especially pleased with 5G design activity and the trends we see toward increasing RF integration. During the quarter, we successfully integrated our programmable power management products and technologies into IDP. Following the quarter, we completed the acquisition of Cavendish Kinetics, adding RF MEMS technology and expanding Qorvo's technology and product leadership."
The company secured new design wins and expanded participation in mass-market tier of leading Korea-based smartphone manufacturer; it was selected by top four China-based smartphone OEMs to supply mid-/high-band PAD and other chips for upcoming 5G smartphones; and was chosen to supply recently launched Wi-Fi 6 front end modules (FEMs) in support of multiple China-based smartphone OEMs. In addition, it launched the world's first Wi-Fi 6 dual-band FEM and world's first Wi-Fi 6 iFEM for CPE applications, and received purchase orders to supply GaN amplifiers for X-band and Ka-band defence radar and communications programs.
It has also announced tthe authorisation of a new $1 billion share repurchase program
Financial Commentary and Outlook
Mark Murphy, chief financial officer of Qorvo, said: "Qorvo's December quarter guidance reflects continued robust mobile demand supported by an increase in 5G handset volumes. Separately, as a result of our market outlook, operating performance and free cash flow forecast, Qorvo's board of directors has approved a new $1 billion share repurchase authorisation."
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 percent; and non-GAAP diluted earnings per share of $1.67 at the midpoint of guidance.