Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and
power solutions, today announced financial results for the
Company’s fiscal 2024 first quarter ended July 1, 2023.
On a GAAP basis, revenue for Qorvo’s fiscal 2024 first quarter
was $651 million, gross margin was 35.2%, operating loss was $48
million and loss per share was $0.44. On a non-GAAP basis, gross
margin was 42.9%, operating income was $47 million and diluted
earnings per share was $0.34.
Bob Bruggeworth, president and chief executive officer of Qorvo,
said, “The Qorvo team continues to operate well to position Qorvo
for long-term growth. We are introducing new products and
technologies to increase our content in customer designs and
broaden our exposure in new and existing markets. In the September
quarter, we expect improved financial performance supported by
content gains at our largest customer.”
Strategic Highlights
- Booked multi-million-dollar order for SiC power devices
supporting AI servers and other data center applications
- Extended leadership in DOCSIS 4.0 with sampling of 1.8 GHz
hybrid power doubler delivering more RF power with lower power
consumption than competing solid-state solutions
- Released highly integrated 3.4-3.8 GHz 8W PAM simplifying 5G
massive MIMO system design
- Sampled industry’s first C-band discrete BAW band pass filter
for 5G small cell radios
- Began sampling defense and aerospace industry-first 2-18 GHz
integrated Tx/Rx FEM delivering 10W of Tx power
- Secured automotive radar design win to supply a receive
amplifier for a major US-based automotive OEM
- Selected by an automotive tier-one to supply UWB connectivity
for a US-based EV manufacturer
- Awarded multi-million-dollar automotive force-sensing touch
sensor design wins enabling force level detection in display,
center console, door panel and steering wheel applications
- Selected by leading automotive antenna supplier to provide
cellular V2X front end modules and BAW coexistence filters for use
by a major Europe-based automotive OEM
- Awarded multiple Wi-Fi 7 BAW filter design wins enabling full
coverage of 2.4 GHz, 5 GHz and 6 GHz bands for access points and
commenced sampling tier-one customers next-generation Wi-Fi 7 FEM
portfolio
- Achieved Matter® 1.1 certification, expanding market
opportunity in support of top smart home ecosystem customers with
an installed base of 150M+ home networks
- Sampled main path LMH PAD integrating low-, mid- and high-band
content while reducing surface area by 40% to simplify and
accelerate 5G adoption
- Commenced customer sampling of next-generation antenna tuners,
delivering smartphone OEMs best-in-class linearity,
industry-smallest solution size and compatibility across all major
chipsets
Financial Commentary and Outlook
Grant Brown, chief financial officer of Qorvo, said, “Qorvo
exceeded the mid-point of our June quarterly guidance for revenue,
gross margin and EPS while also continuing to reduce channel
inventory. The team is executing very well, working closely with
our suppliers and customers while navigating a challenging macro
environment. Looking forward, we expect September quarterly revenue
to increase sequentially by over 50%, driven primarily by content
gains at our largest customer, and we expect year-over-year revenue
growth in fiscal 2024.”
Qorvo’s current outlook for the September 2023 quarter is:
- Quarterly revenue of approximately $1 billion, plus or minus
$15 million
- Non-GAAP gross margin between 45% and 46%
- Non-GAAP diluted earnings per share of approximately $1.75 at
the midpoint of revenue
See “Forward-looking non-GAAP financial measures” below. Qorvo’s
actual quarterly results may differ from these expectations and
projections, and such differences may be material.
Selected Financial Information
The following tables set forth selected GAAP and non-GAAP
financial information for Qorvo for the periods indicated. See the
more detailed financial information for Qorvo, including
reconciliations of GAAP and non-GAAP financial information,
attached.
|
|
SELECTED GAAP RESULTS |
|
|
(Unaudited) |
|
|
(In millions, except for percentages and EPS) |
|
|
For the quarter ended July 1, 2023 |
|
For the quarter ended April 1, 2023 |
|
Change vs. Q4 FY 2023 |
Revenue |
$ |
651.2 |
|
$ |
632.7 |
|
$ |
18.5 |
|
Gross profit |
$ |
229.1 |
|
$ |
114.7 |
|
$ |
114.4 |
|
Gross margin |
|
35.2 |
% |
|
18.1 |
% |
|
17.1 |
ppt |
Operating expenses |
$ |
277.2 |
|
$ |
303.7 |
|
$ |
(26.5 |
) |
Operating loss |
$ |
(48.1 |
) |
$ |
(189.0 |
) |
$ |
140.9 |
|
Net loss |
$ |
(43.6 |
) |
$ |
(138.4 |
) |
$ |
94.8 |
|
Weighted-average diluted
shares |
|
98.5 |
|
|
99.5 |
|
|
(1.0 |
) |
Diluted EPS |
$ |
(0.44 |
) |
$ |
(1.39 |
) |
$ |
0.95 |
|
|
|
SELECTED NON-GAAP RESULTS1 |
|
|
(Unaudited) |
|
|
(In millions, except for percentages and EPS) |
|
|
For the quarter ended July 1, 2023 |
|
For the quarter ended April 1, 2023 |
|
Change vs. Q4 FY 2023 |
Revenue |
$ |
651.2 |
|
$ |
632.7 |
|
$ |
18.5 |
|
Gross profit |
$ |
279.5 |
|
$ |
261.2 |
|
$ |
18.3 |
|
Gross margin |
|
42.9 |
% |
|
41.3 |
% |
|
1.6 |
ppt |
Operating
expenses |
$ |
232.7 |
|
$ |
227.4 |
|
$ |
5.3 |
|
Operating
income |
$ |
46.7 |
|
$ |
33.8 |
|
$ |
12.9 |
|
Net income |
$ |
33.6 |
|
$ |
25.7 |
|
$ |
7.9 |
|
Weighted-average
diluted shares |
|
99.3 |
|
|
100.4 |
|
|
(1.1 |
) |
Diluted EPS |
$ |
0.34 |
|
$ |
0.26 |
|
$ |
0.08 |
|
|
|
SELECTED GAAP RESULTS |
|
|
(Unaudited) |
|
|
(In millions, except for percentages and EPS) |
|
|
For the quarter ended July 1, 2023 |
|
For the quarter ended July 2, 2022 |
|
Change vs. Q1 FY 2023 |
Revenue |
$ |
651.2 |
|
$ |
1,035.4 |
|
$ |
(384.2 |
) |
Gross profit |
$ |
229.1 |
|
$ |
375.3 |
|
$ |
(146.2 |
) |
Gross margin |
|
35.2 |
% |
|
36.2 |
% |
|
(1.0 |
)ppt |
Operating expenses |
$ |
277.2 |
|
$ |
273.4 |
|
$ |
3.8 |
|
Operating (loss) income |
$ |
(48.1 |
) |
$ |
101.9 |
|
$ |
(150.0 |
) |
Net (loss) income |
$ |
(43.6 |
) |
$ |
68.9 |
|
$ |
(112.5 |
) |
Weighted-average diluted
shares |
|
98.5 |
|
|
106.1 |
|
|
(7.6 |
) |
Diluted EPS |
$ |
(0.44 |
) |
$ |
0.65 |
|
$ |
(1.09 |
) |
|
|
SELECTED NON-GAAP RESULTS1 |
|
|
(Unaudited) |
|
|
(In millions, except for percentages and EPS) |
|
|
For the quarter ended July 1, 2023 |
|
For the quarter ended July 2, 2022 |
|
Change vs. Q1 FY 2023 |
Revenue |
$ |
651.2 |
|
$ |
1,035.4 |
|
$ |
(384.2 |
) |
Gross profit |
$ |
279.5 |
|
$ |
518.2 |
|
$ |
(238.7 |
) |
Gross margin |
|
42.9 |
% |
|
50.0 |
% |
|
(7.1 |
)ppt |
Operating expenses |
$ |
232.7 |
|
$ |
233.8 |
|
$ |
(1.1 |
) |
Operating income |
$ |
46.7 |
|
$ |
284.4 |
|
$ |
(237.7 |
) |
Net income |
$ |
33.6 |
|
$ |
238.4 |
|
$ |
(204.8 |
) |
Weighted-average diluted
shares |
|
99.3 |
|
|
106.1 |
|
|
(6.8 |
) |
Diluted EPS |
$ |
0.34 |
|
$ |
2.25 |
|
$ |
(1.91 |
) |
1 Excludes stock-based compensation expense, amortization of
intangible assets, restructuring related charges, acquisition and
integration related costs, charges associated with a long-term
capacity reservation agreement, goodwill impairment, loss (gain) on
assets, other non-cash expenses, (gain) loss on investments, other
(income) expense and an adjustment of income taxes.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in
accordance with United States (U.S.) generally accepted accounting
principles (GAAP), this earnings release contains some or all of
the following non-GAAP financial measures: (i) non-GAAP gross
profit and gross margin, (ii) non-GAAP operating expenses,
operating income and operating margin, (iii) non-GAAP net income,
(iv) non-GAAP net income per diluted share, (v) free cash flow,
(vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and
(viii) net debt or positive net cash. Each of these non-GAAP
financial measures is either adjusted from GAAP results to exclude
certain expenses or derived from multiple GAAP measures, which are
outlined in the “Reconciliation of GAAP to Non-GAAP Financial
Measures” tables, attached, and the “Additional Selected Non-GAAP
Financial Measures and Reconciliations” tables, attached.
In managing Qorvo's business on a consolidated basis, management
develops an annual operating plan, which is approved by our Board
of Directors, using non-GAAP financial measures. In developing and
monitoring performance against this plan, management considers the
actual or potential impacts on these non-GAAP financial measures
from actions taken to reduce costs with the goal of increasing
gross margin and operating margin. In addition, management relies
upon these non-GAAP financial measures to assess whether research
and development efforts are at an appropriate level, and when
making decisions about product spending, administrative budgets,
and other operating expenses. Also, we believe that non-GAAP
financial measures provide useful supplemental information to
investors and enable investors to analyze the results of operations
in the same way as management. We have chosen to provide this
supplemental information to enable investors to perform additional
comparisons of our operating results, to assess our liquidity and
capital position and to analyze financial performance excluding the
effect of expenses unrelated to operations, certain non-cash
expenses and stock-based compensation expense, which may obscure
trends in Qorvo's underlying performance.
We believe that these non-GAAP financial measures offer an
additional view of Qorvo's operations that, when coupled with the
GAAP results and the reconciliations to corresponding GAAP
financial measures, provide a more complete understanding of
Qorvo's results of operations and the factors and trends affecting
Qorvo's business. However, these non-GAAP financial measures should
be considered as a supplement to, and not as a substitute for, or
superior to, the corresponding measures calculated in accordance
with GAAP.
Our rationale for using these non-GAAP financial measures, as
well as their impact on the presentation of Qorvo's operations, are
outlined below:
Non-GAAP gross profit and gross margin. Non-GAAP gross profit
and gross margin exclude amortization of intangible assets,
stock-based compensation expense, restructuring related charges and
certain non-cash expenses. We believe that exclusion of these costs
in presenting non-GAAP gross profit and gross margin facilitates a
useful evaluation of our historical performance and projected costs
and the potential for realizing cost efficiencies.
We view amortization of acquisition-related intangible assets,
such as the amortization of the cost associated with an acquired
company’s research and development efforts, trade names, and
customer relationships, as items arising from pre-acquisition
activities, determined at the time of an acquisition, rather than
ongoing costs of operating Qorvo’s business. While these intangible
assets are continually evaluated for impairment, amortization of
the cost of purchased intangible assets is a static expense, which
is not typically affected by operations during any particular
period. Although we exclude the amortization of purchased
intangible assets from these non-GAAP financial measures,
management believes that it is important for investors to
understand that such intangible assets were recorded as part of
purchase price accounting and contribute to revenue generation.
We believe that presentation of non-GAAP gross profit and gross
margin and other non-GAAP financial measures that exclude the
impact of stock-based compensation expense assists management and
investors in evaluating the period-over-period performance of
Qorvo's ongoing operations because (i) the expenses are non-cash in
nature, and (ii) although the size of the grants is within our
control, the amount of expense varies depending on factors such as
short-term fluctuations in stock price volatility and prevailing
interest rates, which can be unrelated to the operational
performance of Qorvo during the period in which the expense is
incurred and generally are outside the control of management.
Moreover, we believe that the exclusion of stock-based compensation
expense in presenting non-GAAP gross profit and gross margin and
other non-GAAP financial measures is useful to investors to
understand the impact of the expensing of stock-based compensation
to Qorvo's gross profit and gross margins and other financial
measures in comparison to prior periods. We also believe that the
adjustments to profit and margin related to restructuring related
charges and certain non-cash expenses do not constitute part of
Qorvo's ongoing operations and therefore the exclusion of these
items provides management and investors with better visibility into
the actual revenue and actual costs required to generate revenues
over time and facilitates a useful evaluation of our historical and
projected performance. We believe disclosure of non-GAAP gross
profit and gross margin has economic substance because the excluded
expenses do not represent continuing cash expenditures and, as
described above, we have little control over the timing and amount
of the expenses in question.
For the three months ended July 2, 2022 and April 1, 2023,
non-GAAP gross profit and gross margin also excluded charges
associated with a long-term capacity reservation agreement.
Unprecedented disruption resulting from measures taken in China to
control the COVID-19 pandemic and the war in Ukraine negatively
impacted demand for 5G handsets in China and EMEA within a short
period of time. Due to these extraordinary circumstances, our
demand was not expected to support the minimum purchase commitments
under a long-term capacity reservation agreement with a foundry
supplier which resulted in charges recorded in our cost of goods
sold for the three months ended July 2, 2022. Subsequently, for the
three months ended April 1, 2023, we elected to apply the remaining
pre-paid refundable deposit against portions of monthly purchase
commitments for the term of the amended agreement in lieu of
ordering certain additional silicon wafers. This election was made
to better align component inventory with the timing of the
forecasted finished goods demand. This resulted in an impairment to
the prepaid refundable deposit recorded in our cost of goods sold
for the three months ended April 1, 2023. We believe these charges
are not reflective of the performance of our ongoing business.
Non-GAAP operating expenses, operating income and operating
margin. Non-GAAP operating expenses, operating income and operating
margin exclude stock-based compensation expense, amortization of
intangible assets, acquisition and integration related costs, gain
or loss on assets, asset impairments, restructuring related
charges, charges associated with a long-term capacity reservation
agreement and certain non-cash expenses. We believe that
presentation of a measure of operating expenses, operating income
and operating margin that excludes amortization of intangible
assets and stock-based compensation expense is useful to both
management and investors for the same reasons as described above
with respect to our use of non-GAAP gross profit and gross margin.
We believe that acquisition and integration related costs, gain or
loss on assets, asset impairments, restructuring related charges,
charges associated with a long-term capacity reservation agreement
and certain non-cash expenses do not constitute part of Qorvo's
ongoing operations and therefore, the exclusion of these costs
provides management and investors with better visibility into the
actual costs required to generate revenues over time and
facilitates a useful evaluation of our historical and projected
performance. We believe disclosure of non-GAAP operating expenses,
operating income and operating margin has economic substance
because the excluded expenses are either unrelated to ongoing
operations or do not represent current cash expenditures.
Non-GAAP net income and non-GAAP net income per diluted share.
Non-GAAP net income and non-GAAP net income per diluted share
exclude the effects of stock-based compensation expense,
amortization of intangible assets, acquisition and integration
related costs, gain or loss on assets, asset impairments,
restructuring related charges, charges associated with a long-term
capacity reservation agreement and certain non-cash expenses, gain
or loss on investments, other expense (income) and also reflect an
adjustment of income taxes. The income tax adjustment primarily
represents the use of research and development tax credit
carryforwards, deferred tax expense (benefit) items not affecting
taxes payable, adjustments related to the deemed and actual
repatriation of historical foreign earnings, non-cash expense
(benefit) related to uncertain tax positions and other items
unrelated to the current fiscal year or that are not indicative of
our ongoing business operations. We believe that presentation of
measures of net income and net income per diluted share that
exclude these items is useful to both management and investors for
the reasons described above with respect to non-GAAP gross profit
and gross margin and non-GAAP operating expenses, operating income
and operating margin. We believe disclosure of non-GAAP net income
and non-GAAP net income per diluted share has economic substance
because the excluded expenses are either unrelated to ongoing
operations or do not represent current cash expenditures.
Free cash flow. Qorvo defines free cash flow as net cash
provided by operating activities during the period minus property
and equipment expenditures made during the period, and free cash
flow margin is calculated as free cash flow as a percentage of
revenue. We use free cash flow as a supplemental financial measure
in our evaluation of liquidity and financial strength. Management
believes that this measure is useful as an indicator of our ability
to service our debt, meet other payment obligations and make
strategic investments. Free cash flow should be considered in
addition to, rather than as a substitute for, net income as a
measure of our performance and net cash provided by operating
activities as a measure of our liquidity. Additionally, our
definition of free cash flow is limited, in that it does not
represent residual cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt service and other contractual
obligations. Therefore, we believe it is important to view free
cash flow as a measure that provides supplemental information to
our entire statement of cash flows.
EBITDA. Qorvo adjusts GAAP net income for interest expense,
interest income, income tax expense (benefit), depreciation and
intangible amortization expense, stock-based compensation and other
charges that are not representative of Qorvo's ongoing operations
(including asset impairments, investment activity,
acquisition-related costs, restructuring-related costs and certain
charges associated with a long-term capacity reservation agreement)
when presenting EBITDA. Management believes that this measure is
useful to evaluate our ongoing operations and as a general
indicator of our operating cash flow (in conjunction with a cash
flow statement which also includes among other items, changes in
working capital and the effect of non-cash charges).
Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP
financial measure that management believes provides useful
supplemental information for management and the investor by
measuring the effectiveness of our operations' use of invested
capital to generate profits. We use ROIC to track how much value we
are creating for our shareholders. Non-GAAP ROIC is calculated by
dividing annualized non-GAAP operating income, net of an adjustment
for income taxes (as described above), by average invested capital.
Average invested capital is calculated by subtracting the average
of the beginning balance and the ending balance of equity plus net
debt, less certain goodwill.
Net debt or positive net cash. Net debt or positive net cash is
defined as unrestricted cash, cash equivalents and short-term
investments minus any borrowings under our credit facility and the
principal balance of our senior unsecured notes. Management
believes that net debt or positive net cash provides useful
information regarding the level of Qorvo's indebtedness by
reflecting cash and investments that could be used to repay
debt.
Inventory days on hand. Inventory days on hand is defined as (a)
average net inventory for the period, divided by (b) the result of
non-GAAP cost of goods sold for the period divided by the number of
days in the period.
Forward-looking non-GAAP financial measures. Our earnings
release contains forward-looking free cash flow, gross margin,
income tax rate and diluted earnings per share. We provide these
non-GAAP measures to investors on a prospective basis for the same
reasons (set forth above) that we provide them to investors on a
historical basis. We are unable to provide a reconciliation of the
forward-looking non-GAAP financial measures to the most directly
comparable forward-looking GAAP financial measures without
unreasonable effort due to variability and difficulty in making
accurate projections for items that would be required to be
included in the GAAP measures, such as stock-based compensation,
acquisition and integration related costs, restructuring related
charges, gain or loss on assets, asset impairments, gain or loss on
investments and the provision for income taxes, which could have a
potentially significant impact on our future GAAP results.
Limitations of non-GAAP financial measures. The primary material
limitations associated with the use of non-GAAP financial measures
as an analytical tool compared to the most directly comparable GAAP
financial measures are these non-GAAP financial measures (i) may
not be comparable to similarly titled measures used by other
companies in our industry, and (ii) exclude financial information
that some may consider important in evaluating our performance,
thus limiting their usefulness as a comparative tool. We compensate
for these limitations by providing full disclosure of the
differences between these non-GAAP financial measures and the
corresponding GAAP financial measures, including a reconciliation
of the non-GAAP financial measures to the corresponding GAAP
financial measures, to enable investors to perform their own
analysis of our gross profit and gross margin, operating expenses,
operating income, net income, net income per diluted share and net
cash provided by operating activities. We further compensate for
the limitations of our use of non-GAAP financial measures by
presenting the corresponding GAAP measures more prominently.
Qorvo will conduct a conference call at 5:00 p.m. ET today to
discuss today’s press release. The conference call will be
broadcast live over the Internet and can be accessed by any
interested party at the following URL: https://ir.qorvo.com (under
“Events & Presentations”). A telephone playback of the
conference call will be available approximately two hours after the
call’s completion and can be accessed by dialing 412-317-6671 and
using the passcode 13738830. The playback will be available through
the close of business August 9, 2023.
About Qorvo
Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions
that make a better world possible. We combine product and
technology leadership, systems-level expertise and global
manufacturing scale to quickly solve our customers’ most complex
technical challenges. Qorvo serves diverse high-growth segments of
large global markets, including consumer electronics, smart
home/IoT, automotive, EVs, battery-powered appliances, network
infrastructure, healthcare and aerospace/defense. Visit
www.qorvo.com to learn how our diverse and innovative team is
helping connect, protect and power our planet.
Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and
in other countries. All other trademarks are the property of their
respective owners.
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include, but are not limited to, statements about our plans,
objectives, representations and contentions, and are not historical
facts and typically are identified by terms such as “may,” “will,”
“should,” “could,” “expect,” “plan,” “anticipate,” “believe,”
“estimate,” “forecast,” “predict,” “potential,” “continue” and
similar words, although some forward-looking statements are
expressed differently. You should be aware that the forward-looking
statements included herein represent management’s current judgment
and expectations, but our actual results, events and performance
could differ materially from those expressed or implied by
forward-looking statements. We do not intend to update any of these
forward-looking statements or publicly announce the results of any
revisions to these forward-looking statements, other than as is
required under U.S. federal securities laws. Our business is
subject to numerous risks and uncertainties, including those
relating to fluctuations in our operating results on a quarterly
and annual basis; our substantial dependence on developing new
products and achieving design wins; our dependence on several large
customers for a substantial portion of our revenue; a loss of
revenue if defense and aerospace contracts are canceled or delayed;
continued effects of the COVID-19 pandemic; our dependence on third
parties; risks related to sales through distributors; risks
associated with the operation of our manufacturing facilities;
business disruptions; poor manufacturing yields; increased
inventory risks and costs, including under long-term supply
agreements, due to timing of customers’ forecasts; our inability to
effectively manage or maintain evolving relationships with chipset
suppliers; our ability to continue to innovate in a very
competitive industry; underutilization of manufacturing facilities;
unfavorable changes in interest rates, pricing of certain precious
metals, utility rates and foreign currency exchange rates; our
acquisitions and other strategic investments failing to achieve
financial or strategic objectives; our ability to attract, retain
and motivate key employees; warranty claims, product recalls and
product liability; changes in our effective tax rate; enactment of
international or domestic tax legislation, or changes in regulatory
guidance; changes in the favorable tax status of certain of our
subsidiaries; risks associated with environmental, health and
safety regulations, and climate change; risks from international
sales and operations; economic regulation in China; changes in
government trade policies, including imposition of tariffs and
export restrictions; we may not be able to generate sufficient cash
to service all of our debt; restrictions imposed by the agreements
governing our debt; our reliance on our intellectual property
portfolio; claims of infringement of third-party intellectual
property rights; security breaches and other similar disruptions
compromising our information; theft, loss or misuse of personal
data by or about our employees, customers or third parties;
provisions in our governing documents and Delaware law may
discourage takeovers and business combinations that our
stockholders might consider to be in their best interests; and
volatility in the price of our common stock. These and other risks
and uncertainties, which are described in more detail under “Risk
Factors” in Part I, Item 1A of our Annual Report on Form 10-K for
the fiscal year ended April 1, 2023, and Qorvo’s subsequent reports
and statements that we file with the SEC, could cause actual
results and developments to be materially different from those
expressed or implied by any of these forward-looking
statements.
Financial Tables to Follow
QORVO, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
July 1, 2023 |
|
July 2, 2022 |
Revenue |
$ |
651,164 |
|
|
$ |
1,035,358 |
|
|
|
|
|
Costs and expenses: |
|
|
|
Cost of goods sold |
|
422,094 |
|
|
|
660,108 |
|
Research and development |
|
163,090 |
|
|
|
168,568 |
|
Selling, general and administrative |
|
105,423 |
|
|
|
101,815 |
|
Other operating expense |
|
8,693 |
|
|
|
3,008 |
|
Total costs and expenses |
|
699,300 |
|
|
|
933,499 |
|
|
|
|
|
Operating (loss) income |
|
(48,136 |
) |
|
|
101,859 |
|
Interest expense |
|
(17,261 |
) |
|
|
(17,252 |
) |
Other income (expense),
net |
|
13,716 |
|
|
|
(5,062 |
) |
|
|
|
|
(Loss) income before income
taxes |
|
(51,681 |
) |
|
|
79,545 |
|
Income tax benefit (expense) |
|
8,101 |
|
|
|
(10,661 |
) |
Net (loss) income |
$ |
(43,580 |
) |
|
$ |
68,884 |
|
|
|
|
|
|
|
|
|
Net (loss) income per share,
diluted |
$ |
(0.44 |
) |
|
$ |
0.65 |
|
|
|
|
|
Weighted-average outstanding
diluted shares |
|
98,509 |
|
|
|
106,080 |
|
QORVO, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES(In thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
July 1, 2023 |
|
April 1, 2023 |
|
July 2, 2022 |
|
|
|
|
|
|
GAAP operating (loss) income |
$ |
(48,136 |
) |
|
$ |
(188,982 |
) |
|
$ |
101,859 |
|
Stock-based compensation expense |
|
38,445 |
|
|
|
18,669 |
|
|
|
35,414 |
|
Amortization of intangible assets |
|
30,872 |
|
|
|
32,843 |
|
|
|
33,652 |
|
Restructuring related charges |
|
22,736 |
|
|
|
81,615 |
|
|
|
550 |
|
Acquisition and integration related costs |
|
1,195 |
|
|
|
2,065 |
|
|
|
6,308 |
|
Charges associated with a long-term capacity reservation
agreement |
|
— |
|
|
|
71,000 |
|
|
|
110,000 |
|
Goodwill impairment |
|
— |
|
|
|
12,411 |
|
|
|
— |
|
Loss (gain) on assets and other non-cash expenses |
|
1,609 |
|
|
|
4,212 |
|
|
|
(3,418 |
) |
Non-GAAP operating income |
$ |
46,721 |
|
|
$ |
33,833 |
|
|
$ |
284,365 |
|
|
|
|
|
|
|
GAAP net (loss) income |
$ |
(43,580 |
) |
|
$ |
(138,416 |
) |
|
$ |
68,884 |
|
Stock-based compensation expense |
|
38,445 |
|
|
|
18,669 |
|
|
|
35,414 |
|
Amortization of intangible assets |
|
30,872 |
|
|
|
32,843 |
|
|
|
33,652 |
|
Restructuring related charges |
|
22,736 |
|
|
|
81,615 |
|
|
|
550 |
|
Acquisition and integration related costs |
|
1,195 |
|
|
|
2,065 |
|
|
|
6,308 |
|
Charges associated with a long-term capacity reservation
agreement |
|
— |
|
|
|
71,000 |
|
|
|
110,000 |
|
Goodwill impairment |
|
— |
|
|
|
12,411 |
|
|
|
— |
|
Loss (gain) on assets and other non-cash expenses |
|
1,609 |
|
|
|
4,212 |
|
|
|
(3,418 |
) |
(Gain) loss on investments |
|
(2,062 |
) |
|
|
3,564 |
|
|
|
1,375 |
|
Other (income) expense |
|
(2,523 |
) |
|
|
(1,644 |
) |
|
|
5,198 |
|
Adjustment of income taxes |
|
(13,114 |
) |
|
|
(60,583 |
) |
|
|
(19,559 |
) |
Non-GAAP net income |
$ |
33,578 |
|
|
$ |
25,736 |
|
|
$ |
238,404 |
|
|
|
|
|
|
|
GAAP weighted-average
outstanding diluted shares |
|
98,509 |
|
|
|
99,513 |
|
|
|
106,080 |
|
Dilutive stock-based awards |
|
806 |
|
|
|
933 |
|
|
|
— |
|
Non-GAAP weighted-average
outstanding diluted shares |
|
99,315 |
|
|
|
100,446 |
|
|
|
106,080 |
|
|
|
|
|
|
|
Non-GAAP net income per share,
diluted |
$ |
0.34 |
|
|
$ |
0.26 |
|
|
$ |
2.25 |
|
|
|
|
|
|
|
QORVO, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES(Unaudited)
|
Three Months Ended |
(in thousands, except
percentages) |
July 1, 2023 |
|
April 1, 2023 |
|
July 2, 2022 |
GAAP gross profit/margin |
$ |
229,070 |
35.2 |
% |
|
$ |
114,714 |
18.1 |
% |
|
$ |
375,250 |
36.2 |
% |
Amortization of intangible assets |
|
26,489 |
4.1 |
|
|
|
28,132 |
4.5 |
|
|
|
28,083 |
2.7 |
|
Stock-based compensation expense |
|
4,949 |
0.7 |
|
|
|
4,175 |
0.7 |
|
|
|
4,502 |
0.5 |
|
Restructuring related charges |
|
18,955 |
2.9 |
|
|
|
43,004 |
6.8 |
|
|
|
— |
— |
|
Charges associated with a long-term capacity reservation
agreement |
|
— |
— |
|
|
|
71,000 |
11.2 |
|
|
|
110,000 |
10.6 |
|
Acquisition and integration related costs |
|
1 |
— |
|
|
|
15 |
— |
|
|
|
35 |
— |
|
Other non-cash expenses |
|
— |
— |
|
|
|
147 |
— |
|
|
|
319 |
— |
|
Non-GAAP gross
profit/margin |
$ |
279,464 |
42.9 |
% |
|
$ |
261,187 |
41.3 |
% |
|
$ |
518,189 |
50.0 |
% |
|
Three Months Ended |
Non-GAAP Operating Income |
July 1, 2023 |
(as a percentage of sales) |
|
|
|
GAAP operating loss |
(7.4 |
)% |
Stock-based compensation expense |
5.9 |
|
Amortization of intangible assets |
4.7 |
|
Restructuring related charges |
3.5 |
|
Acquisition and integration related costs |
0.2 |
|
Loss on assets and other non-cash expenses |
0.3 |
|
Non-GAAP operating income |
7.2 |
% |
|
Three Months Ended |
Free Cash Flow (1) |
July 1, 2023 |
(in millions) |
|
|
|
Net cash provided by operating activities |
$ |
44.9 |
|
Purchases of property and
equipment |
|
(39.5 |
) |
Free cash flow |
$ |
5.4 |
|
(1) Free Cash Flow is calculated as net cash provided by
operating activities minus property and equipment expenditures.
QORVO, INC. AND
SUBSIDIARIESADDITIONAL SELECTED NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS(In thousands)(Unaudited)
|
Three Months Ended |
|
July 1, 2023 |
|
April 1, 2023 |
|
July 2, 2022 |
GAAP research and development expense |
$ |
163,090 |
|
$ |
163,637 |
|
$ |
168,568 |
|
Less: |
|
|
|
|
|
Stock-based compensation expense |
|
10,356 |
|
|
10,286 |
|
|
8,966 |
|
Acquisition and integration related costs |
|
1 |
|
|
26 |
|
|
61 |
|
Non-GAAP research and
development expense |
$ |
152,733 |
|
$ |
153,325 |
|
$ |
159,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
July 1, 2023 |
|
April 1, 2023 |
|
July 2, 2022 |
GAAP selling, general and
administrative expense |
$ |
105,423 |
|
$ |
82,954 |
|
$ |
101,815 |
|
Less: |
|
|
|
|
|
Stock-based compensation expense |
|
23,110 |
|
|
4,208 |
|
|
21,946 |
|
Amortization of intangible assets |
|
4,383 |
|
|
4,711 |
|
|
5,569 |
|
Acquisition and integration related costs |
|
— |
|
|
7 |
|
|
17 |
|
Non-GAAP selling, general and
administrative expense |
$ |
77,930 |
|
$ |
74,028 |
|
$ |
74,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
July 1, 2023 |
|
April 1, 2023 |
|
July 2, 2022 |
GAAP other operating
expense |
$ |
8,693 |
|
$ |
57,105 |
|
$ |
3,008 |
|
Less: |
|
|
|
|
|
Stock-based compensation expense |
|
30 |
|
|
— |
|
|
— |
|
Restructuring related charges |
|
3,781 |
|
|
38,611 |
|
|
550 |
|
Acquisition and integration related costs |
|
1,193 |
|
|
2,018 |
|
|
6,195 |
|
Goodwill impairment |
|
— |
|
|
12,411 |
|
|
— |
|
Loss (gain) on assets and other non-cash expenses |
|
1,609 |
|
|
4,065 |
|
|
(3,737 |
) |
Non-GAAP other operating
expense |
$ |
2,080 |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
July 1, 2023 |
|
April 1, 2023 |
|
July 2, 2022 |
GAAP total operating
expense |
$ |
277,206 |
|
$ |
303,696 |
|
$ |
273,391 |
|
Less: |
|
|
|
|
|
Stock-based compensation expense |
|
33,496 |
|
|
14,494 |
|
|
30,912 |
|
Amortization of intangible assets |
|
4,383 |
|
|
4,711 |
|
|
5,569 |
|
Restructuring related charges |
|
3,781 |
|
|
38,611 |
|
|
550 |
|
Acquisition and integration related costs |
|
1,194 |
|
|
2,050 |
|
|
6,273 |
|
Goodwill impairment |
|
— |
|
|
12,411 |
|
|
— |
|
Loss (gain) on assets and other non-cash expenses |
|
1,609 |
|
|
4,065 |
|
|
(3,737 |
) |
Non-GAAP total operating
expense |
$ |
232,743 |
|
$ |
227,354 |
|
$ |
233,824 |
|
QORVO, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands)(Unaudited)
|
July 1, 2023 |
|
April 1, 2023 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
744,428 |
|
$ |
808,757 |
Accounts receivable, net |
|
307,913 |
|
|
304,519 |
Inventories |
|
917,390 |
|
|
796,596 |
Other current assets |
|
118,044 |
|
|
119,922 |
Total current assets |
|
2,087,775 |
|
|
2,029,794 |
|
|
|
|
Property and equipment,
net |
|
1,087,683 |
|
|
1,149,806 |
Goodwill |
|
2,760,930 |
|
|
2,760,813 |
Intangible assets, net |
|
507,174 |
|
|
537,703 |
Long-term investments |
|
27,020 |
|
|
20,406 |
Other non-current assets |
|
216,010 |
|
|
193,381 |
Total assets |
$ |
6,686,592 |
|
$ |
6,691,903 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
558,486 |
|
$ |
433,164 |
Other current liabilities |
|
80,490 |
|
|
122,599 |
Total current liabilities |
|
638,976 |
|
|
555,763 |
|
|
|
|
Long-term debt |
|
2,048,255 |
|
|
2,048,073 |
Other long-term
liabilities |
|
187,138 |
|
|
185,273 |
Total liabilities |
|
2,874,369 |
|
|
2,789,109 |
|
|
|
|
Stockholders’ equity |
|
3,812,223 |
|
|
3,902,794 |
Total liabilities and stockholders’ equity |
$ |
6,686,592 |
|
$ |
6,691,903 |
At Qorvo®Doug DeLietoVP, Investor Relations1.336.678.7968
Qorvo (NASDAQ:QRVO)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Qorvo (NASDAQ:QRVO)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024