Qorvo posts Q4 results
Company 'poised to benefit from multiple long-term growth trends' says CEO
RF company Qorvo has announced financial results for the company's Q4 2019, ended March 30, 2019. On a GAAP basis, revenue for Qorvo's Q4 2019 was $681 million, gross margin was 39.2 percent, operating income was $64 million and diluted earnings per share was $0.50.
GAAP revenue results were slightly up on Q4 2018 (revenue was $665.4 million) and down compared to Q3 2019 (revenue was $823.3 million).
On a non-GAAP basis, revenue for Qorvo's Q4 2019 was $681 million, gross margin was 48.2 percent, operating income was $167 million and diluted earnings per share was $1.22.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, "Qorvo executed well in the March quarter, and we are poised to benefit from multiple long-term growth trends, including 5G, IoT, and the proliferation of GaN. On May 6, Qorvo completed the acquisition of Active-Semi International. We're pleased to welcome the Active-Semi team to Qorvo, and we're excited to expand our product offerings and extend our reach into new high-growth power management markets."
Strategic Highlights
Acquired Active-Semi International, entering rapidly growing $3B power management market
Achieved IDP revenue of $238 million, led by strength in 5G base station deployments, including massive MIMO
Awarded entire RF front end section, including BAW filtering, for meshed Wi-Fi access points by leading manufacturer of Wi-Fi home networking systems
Secured multi-year design win to supply GaAs and GaN components to Lockheed Martin for US Department of Defense ground-based radar program
Supplied production volumes of highly integrated mid-/high-band PADs to the world's top-six smartphone OEMs and received orders for next-generation 5G-enabled variants
Experienced robust revenue growth for tuners and envelope trackers (ET) in support of some of the world's most popular wearable devices
Financial Commentary and Outlook
Mark Murphy, chief financial officer of Qorvo, said, "We ended our fiscal year 2019 strongly with March quarter revenue, gross margin and earnings per share well above our initial expectations. We forecast an even stronger start to fiscal year 2020 and currently project growth in revenue, earnings and free cash flow for full-year fiscal 2020."
Qorvo currently believes the demand environment in its end markets supports the following non-GAAP expectations for the June 2019 quarter:
Quarterly revenue in the range of $780 million to $800 million; gross margin between 45 percent and 45.5 percent; diluted earnings per share of $1.30 at the midpoint of guidance.
