Qorvo Q4 'strong under challenging circumstances'
Company posts revenue of $788 million, gross margin of 42.6 percent, and $0.43 earnings per share
Qorvo, a US-based provider RF devices, has announced financial results for the company’s fiscal 2020 fourth quarter, ended March 28, 2020.
On a GAAP basis, revenue for Q4 was $788 million, gross margin was 42.6 percent, operating income was $102 million and diluted earnings per share was $0.43. On a non-GAAP basis, gross margin was 49.6 percent, operating income was $210 million and diluted earnings per share was $1.57.
Bob Bruggeworth, president and chief executive officer of Qorvo, said: “Qorvo delivered a strong quarter under challenging circumstances, and I couldn’t be more proud of how our team is responding. We are operating well, focused on keeping our employees, partners and communities healthy, while supporting customers and advancing technology. Our technologies and operations are more important than ever as we support global deployments in 5G handsets and infrastructure, defence, Wi-Fi 6 and IoT.”
Amongst the company's highlights were enabling sub-6 GHz 5G network deployments with the ramp of GaN power amplifiers and small signal solutions. It also sampled broadband 100-watt (27-31 GHz) and 130-watt (32-38 GHz) millimetre wave power amplifiers, expanding portfolio of GaN-based solid state amplifiers for defence applications.
It also completed the acquisition of Custom MMIC, expanding leadership in GaAs and GaN RF solutions for defence and aerospace applicationsSmartphone developments include supporting the Samsung Galaxy S20 platform with a broad set of advanced 4G and 5G components; supplying another leading smartphone manufacturer with complete main path (LB, MHB and UHB integrated solutions) as well as Wi-Fi FEM, switches and tuners for flagship 5G smartphones.
Qorvo completed the acquisition of Decawave too, positioning Qorvo as a leading provider of ultra-wide-band (UWB) system solutions for proximity awareness, secure payments and secure access in smartphones, automotive and IoT.
Mark Murphy, CFO of Qorvo, said: “Qorvo’s revenue, gross margin, and cash flow performance demonstrate how well we are operating in a challenging environment. While our June quarter guidance reflects the ongoing demand and supply effects of COVID-19, we are encouraged by continued growth in 5G handsets and infrastructure, and we remain confident in the long-term growth drivers of our business.”
Qorvo currently believes the demand environment in its end markets supports the following expectations for the June 2020 quarter. Quarterly revenue in the range of $710 million to $750 million; non-GAAP gross margin of approximately 47.5 percent; and non-GAAP diluted earnings per share of $1.13 at the midpoint of guidance.