Qorvo Q3 exceeds expectations
Quarter highlighted by strong ramp in support of our largest customer, robust growth in defence and IoT, and improved operating performance
RF chip company Qorvo has announced financial results for the company's Q3, ended December 30, 2017. On a GAAP basis, revenue for Qorvo's Q3 was $845.7 million, gross margin was 39.8 percent, operating income was $80.3 million, or 9.5 percent of sales, and loss per share was $0.26.
On a non-GAAP basis, revenue for Qorvo's Q3 was $844.8 million, gross margin was 48.0 percent, operating income was $254.3 million, or 30.1 percent of sales, and diluted earnings per share was $1.69.
Bob Bruggeworth, president and CEO of Qorvo, said, "Qorvo delivered an exceptional December quarter, highlighted by a strong ramp in support of our largest customer, robust growth in defence and IoT, and improved operating performance. While near-term market demand has weakened in handsets, our longer-term outlook has improved on recent developments with mid/high-band PADs [power amplifier duplexers], Phase 6 design wins, and cellular IoT and other connectivity applications."
Outlook
Mark Murphy, chief financial officer of Qorvo, said, "Our third quarter results exceeded guidance, driven by higher revenue, improved gross margin, and effective cost control. We also achieved record free cash flow on strong operating performance and lower capital spend. Our March quarter guide reflects weakness in the smartphone market, but with improved operating performance and new BAW-based product ramps, we expect continued margin expansion and free cash flow growth in fiscal 2019."
Qorvo currently believes the demand environment in its end markets supports the following non-GAAP expectations for the March 2018 quarter: quarterly revenue in the range of $645 million to $665 million; gross margin flat-to-up 50 basis points sequentially; diluted earnings per share of $1.05 at the midpoint of guidance.
