GREENSBORO, N.C., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2025 second quarter ended September 28, 2024.
On a GAAP basis, revenue for Qorvo’s fiscal 2025 second quarter was $1.047 billion, gross margin was 42.6%, operating income was $9.7 million, and loss per share was $0.18. On a non-GAAP basis, gross margin was 47.0%, operating income was $212.2 million, and diluted earnings per share was $1.88.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, “In the September quarter, ACG successfully supported our largest customer’s seasonal smartphone ramp. In HPA, we expanded our D&A business while building a broad-based business in power management. In CSG, we maintained our leadership in Wi-Fi applications while investing to grow in diverse businesses including automotive solutions and SoCs for ultra-wideband and Matter. HPA and CSG are on pace to achieve mid-teen year-over-year growth in fiscal 2025.”
Financial Commentary and Outlook
Grant Brown, chief financial officer of Qorvo, said, “In the September quarter, we exceeded the midpoint of guidance in revenue, gross margin and EPS. Looking forward, the flagship and premium tiers in the smartphone market are holding up well, however, content and ramp profiles vary by model, and we are experiencing unfavorable mix. We expect this to continue in the second half of fiscal 2025. In addition, in the mid and entry tiers of Android 5G smartphones, mix has shifted toward entry-tier 5G at the expense of mid-tier 5G. In our current view, we don’t expect this mix shift in Android 5G from mid-tier to entry-tier to reverse. As a result, we are taking appropriate actions, including factory consolidation and operating expense reductions as well as focusing on opportunities that align with our long-term profitability objectives. We currently expect full-year fiscal 2025 revenue and gross margin will be slightly down versus fiscal 2024.”
Qorvo’s current outlook for the December 2024 quarter is:
- Quarterly revenue of approximately $900 million, plus or minus $25 million
- Non-GAAP gross margin of approximately 45%
- Non-GAAP diluted earnings per share between $1.10 and $1.30
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 | |||||||||||||||||||||
| (In millions, except for percentages and EPS) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Q2 Fiscal 2025 | Q1 Fiscal 2025 | Q2 Fiscal 2024 | Sequential Change | Year-over-Year Change | |||||||||||||||||
| Revenue | $ | 1,046.5 | $ | 886.7 | $ | 1,103.5 | $ | 159.8 | $ | (57.0 | ) | ||||||||||
| Gross profit | $ | 445.3 | $ | 332.3 | $ | 489.7 | $ | 113.0 | $ | (44.4 | ) | ||||||||||
| Gross margin | 42.6 | % | 37.5 | % | 44.4 | % | 5.1 ppt | (1.8) ppt | |||||||||||||
| Operating expenses | $ | 435.6 | $ | 327.7 | $ | 338.3 | $ | 107.9 | $ | 97.3 | |||||||||||
| Operating income | $ | 9.7 | $ | 4.6 | $ | 151.4 | $ | 5.1 | $ | (141.7 | ) | ||||||||||
| Net (loss) income | $ | (17.4 | ) | $ | 0.4 | $ | 97.5 | $ | (17.8 | ) | $ | (114.9 | ) | ||||||||
| Weighted-average diluted shares | 94.9 | 96.5 | 98.6 | (1.6 | ) | (3.7 | ) | ||||||||||||||
| Diluted EPS (loss per share) | $ | (0.18 | ) | $ | 0.00 | $ | 0.99 | $ | (0.18 | ) | $ | (1.17 | ) | ||||||||
| SELECTED NON-GAAP RESULTS (1) | |||||||||||||||||||||
| (In millions, except for percentages and EPS) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Q2 Fiscal 2025 | Q1 Fiscal 2025 | Q2 Fiscal 2024 | Sequential Change | Year-over-Year Change | |||||||||||||||||
| Revenue | $ | 1,046.5 | $ | 886.7 | $ | 1,103.5 | $ | 159.8 | $ | (57.0 | ) | ||||||||||
| Gross profit | $ | 492.0 | $ | 362.7 | $ | 525.2 | $ | 129.3 | $ | (33.2 | ) | ||||||||||
| Gross margin | 47.0 | % | 40.9 | % | 47.6 | % | 6.1 ppt | (0.6) ppt | |||||||||||||
| Operating expenses | $ | 279.8 | $ | 264.5 | $ | 245.8 | $ | 15.3 | $ | 34.0 | |||||||||||
| Operating income | $ | 212.2 | $ | 98.1 | $ | 279.4 | $ | 114.1 | $ | (67.2 | ) | ||||||||||
| Net income | $ | 179.8 | $ | 83.5 | $ | 235.5 | $ | 96.3 | $ | (55.7 | ) | ||||||||||
| Weighted-average diluted shares | 95.8 | 96.5 | 98.6 | (0.7 | ) | (2.8 | ) | ||||||||||||||
| Diluted EPS | $ | 1.88 | $ | 0.87 | $ | 2.39 | $ | 1.01 | $ | (0.51 | ) | ||||||||||
