Strong Quarter For Qorvo
Company reports increased revenue and profits
RF firm Qorvo has announced financial results for the company's fiscal 2020 first quarter, ended June 29, 2019. On a GAAP basis, revenue for Qorvo's fiscal 2020 first quarter was $776 million, gross margin was 37.9 percent, operating income was $55 million and diluted earnings per share was $0.33. On a non-GAAP basis, gross margin was 46.2 percent, operating income was $190 million and diluted earnings per share was $1.36.
Bob Bruggeworth, president and chief executive officer of Qorvo, said: “Qorvo delivered a strong June quarter, highlighting our technology portfolio and operational excellence. We effectively managed our business and capitalised on underlying growth drivers in our markets despite global trade and economic headwinds. Looking forward, Qorvo's products and technologies position us to lead as 5G ramps and IoT proliferates.”
Mark Murphy, chief financial officer of Qorvo, said: “Qorvo delivered June quarter results above revised guidance on strong operating performance and increased overall mobile demand, including select product shipments to Huawei late in the quarter. Our record June quarter free cash flow reflects strong operating income generation, working capital effects, and capex discipline. Our outlook for the September quarter considers seasonal ramps offset by the continued impact of US Department of Commerce trade restrictions.”
Qorvo has listed a number of strategic highlights for the quarter. These include: expanded GaN shipments into S-band (2-4 GHz) and C-band (4-8 GHz) applications for defence radar programs; selected to supply wideband GaN amplifiers for low Earth orbit satellites enabling OneWeb space-based internet connectivity anywhere in the world; design wins for coexistence BAW filters and LNAs in support of General Motors, Volkswagen and other automotive OEMs; selected by leading Korea-based smartphone manufacturer to supply antenna tuning, high-band and ultra-high band solutions for 5G marquee device ramping in 2019; design win at a leading China-based OEM to supply complete set of low-, high- and ultra-high-band solutions for upcoming 5G smartphone; and supplied Samsung with antenna tuning, high-band PAD and Wi-Fi iFEM for mass market Galaxy A series.
For the September 2019 quarter, Qorvo forecasts quarterly revenue in the range of $745 million to $765 million; non-GAAP gross margin of approximately 46 percent to 46.5 percent; and non-GAAP diluted earnings per share of $1.30 at the midpoint of guidance.