Qorvo makes continued progress towards margin targets
Infrastructure and Defence Products "driving record bookings", says CEO Bob Bruggeworth
US RF company Qorvo has announced financial results for Q1 2018 (ended July 1, 2017). On a GAAP basis, Q1 revenue was $640.8 million, gross margin was 36.9 percent, operating loss was $27.8 million, and diluted loss per share was $0.24. On a non-GAAP basis, Q1 revenue was $639.9 million, gross margin was 47.3 percent, operating income was $137.4 million, or 21.5 percent of sales, and diluted EPS was $0.87.
Bob Bruggeworth, president and CEO Qorvo, said, "The Qorvo team delivered June quarter revenue and EPS at the high end of our guidance with continued progress toward achieving our margin targets. "We're particularly proud of the strong revenue growth in IDP [Infrastructure and Defence Products]. Our IDP product portfolio is capturing diverse, high-growth opportunities with differentiated technologies, and this is driving record bookings. In Mobile Products, we've secured designs for a broad suite of new products, and we're excited about ongoing development programs for marquee platforms. We're building our industry's most highly integrated RF solutions, and we're targeting the most complex and most profitable opportunities."
Quarterly Highlights
During the last quarter, the companychieved record IDP revenue of $184 million, up 9 percent sequentially and 22 percent year-over-year, led by IoT and defence. The company also secured 28 GHz wins supporting Samsung® 5G MIMO demo at 2018 Winter Olympics. It began commercial shipments of 39 GHz FEMs for 5G infrastructure, and was designed into Technicolor DOCSIS 3.1 gateway with 2.4 GHz and 5 GHz Wi-Fi solutions.
Other achievements were selection by the leading China-based smartphone OEM to support marquee smartphone ramping this fall with power amplifiers, premium filters, high-performance switches and an ET PMIC; and support for new smartphone entrant in the Android ecosystem with more than $12 of Qorvo RF content.
Outlook
Mark Murphy, CFO of Qorvo, said: "In the second quarter, we expect strong sequential growth on seasonal phone launches, a modest China recovery, and continued strength in IDP. In Mobile Products, we expect double-digit year-over-year growth in the second half of the fiscal year, reflecting our current view of timing of program ramps and China market dynamics. In IDP, we are projecting over 15 percent full-year growth on strength across multiple markets. Our operating performance continues to improve, and we now expect free cash flow will triple in fiscal year 2018."
Qorvo currently expects the demand environment in its end markets supports the following non-GAAP expectations for the September 2017 quarter: Quarterly revenue in the range of $800 million to $820 million; gross margin of approximately 47.8 percent, up 50 bps from the prior quarter; and diluted EPS in the range of $1.36 to $1.50.
