Qorvo® announced financial results for the company’s fiscal 2018 fourth quarter, ended March 31, 2018.  On a GAAP basis, revenue for Qorvo’s fiscal 2018 fourth quarter was $665.4 million, gross margin was 38 percent, operating loss was $31.8 million and loss per share was $0.10.  On a non-GAAP basis, revenue for Qorvo’s fiscal 2018 fourth quarter was $664.4 million, gross margin was 48 percent, operating income was $163.1 million, or 24.5 percent of sales and diluted earnings per share was $1.07.

Bob Bruggeworth, president and CEO of Qorvo, said, “We are pleased with our March quarterly performance, during which the Qorvo team delivered revenue and EPS above the midpoint of our range and record free cash flow.  In fiscal 2018, IDP expanded margins and achieved outstanding revenue growth, up over 20 percent, while Mobile Products expanded margins and built a solid foundation for profitable growth.  I’m particularly pleased with our BAW-based design win momentum across multiple products and customers.  Qorvo is better positioned today to target and win our markets’ highest growth and most complex opportunities, which will drive us toward our target operating model.”

Quarterly Highlights

  • Delivered record IDP revenue of $212.0 million, up 26 percent year over year, led by IoT, defense and GaN
  • Achieved record smart home revenue driven by “Pod in Every Room™” use cases, with multiple 2.4 GHz, 5 GHz and BAW filter design wins with leading meshed Wi-Fi home networking system providers
  • Expanded support of leading China-based smartphone manufacturer with Phase 6 RF Fusion™, as well as antenna tuning and envelope tracking (ET), for a marquee smartphone
  • Received production orders from leading Korea-based smartphone manufacturer for high-band, BAW-based RF Fusion modules for 2018 high-volume, mass-tier smartphones
  • Announced industry’s most powerful GaN on SiC transistor, boosting signal integrity and range with 1.8 KW of output power at 65 V
  • Extended 5G base station market leadership by adding the industry’s first 28 GHz GaN on SiC front-end module
  • Released industry-first BAW filter with 4x power handling capabilities for 5G massive MIMO FEMs
  • Expanded shipments of BAW-based band 1/3 quadplexers and commenced production shipments of Phase 6 RF Fusion to leading performance-tier smartphone manufacturers
  • Honored with inclusion in China Mobile’s 5G Terminal Forerunner Program at the GTI International Industry Summit

Financial Commentary and Outlook

Mark Murphy, CFO of Qorvo, said, “Our fourth quarter results were consistent with our guidance and reflect higher than expected revenue in our Mobile business.  We also achieved our second consecutive quarter of record free cash flow.  For the June quarter, our guidance reflects near-term impacts of product mix and costs associated with lower utilization at our SAW filter fabs.  For fiscal year 2019, we anticipate year-over-year margin expansion and strong free cash flow growth.”

Qorvo currently believes the demand environment in its end markets supports the following non-GAAP expectations for the June 2018 quarter:

  • Quarterly revenue in the range of $645 million to $665 million 
  • Gross margin of approximately 44 percent
  • Diluted earnings per share of $0.75 at the midpoint of guidance

Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.