A Strong Quarter For Qorvo
RF company Qorvo has announced financial results for the company's Q2 2019, ended September 29, 2018. On a GAAP basis, revenue for Qorvo's Q2 2019 was $884 million, gross margin was 40 percent, operating income was $90 million and diluted earnings per share was $0.25. On a non-GAAP basis, revenue for Qorvo's Q2 2019 was $884 million, gross margin was 47.7 percent, operating income was $253 million and diluted earnings per share was $1.75.
Bob Bruggeworth, president and CEO of Qorvo, said: “I'm proud of the Qorvo team for delivering a strong September quarter, with both revenue and EPS well above guidance. Our products and technologies make Qorvo uniquely positioned to partner with our customers to develop their most compelling products.”
During this quarter, Qorvo has Increased mobile products revenue 37 percent sequentially to $667 million, in support of flagship smartphone product ramps. It has been selected by Samsung to supply 3.5 GHz 5G FEM and also sampled an industry-first dual-band 3.5 GHz and 4.9 GHz 5G FEM to a leading China-based smartphone manufacturer.
It has delivered IDP revenue of $218 million, up 15 percent year-over-year, led by strength in base stations. It has increased GaN-based revenue 27 percent year-over-year, driven by broad market demand, including 5G infrastructure
Other highlights include supplying 5.9 GHz FEM, optimised for Qualcomm's 9150 cellular vehicle-to-everything (C-V2X) chipset, supporting multiple automotive OEMs in worldwide field trials; and being selected by teh automotive supplier Continental to deliver multiple solutions enabling always-on automotive connectivity to worldwide cellular networks
Financial Commentary and Outlook
Mark Murphy, chief financial officer of Qorvo, said: “Qorvo's record revenue and EPS in the September quarter reflect the progress we're making on shaping the portfolio and improving operationally. Our outlook calls for a strong December quarter with higher volumes and ongoing cost control, and it factors in a more measured view on demand from China-based handset manufacturers.”
Qorvo currently believes the demand environment in its end markets supports the following non-GAAP expectations for the December 2018 quarter: quarterly revenue in the range of $880 million to $900 million, gross margin of approximately 50 percent, diluted earnings per share of $1.95 at the midpoint of guidance.