In This Article:
-
Revenue: $916 million for the December quarter.
-
Non-GAAP Diluted EPS: $1.61 per share.
-
Non-GAAP Gross Margin: 46.5%.
-
Non-GAAP Operating Expenses: $248 million.
-
Cash and Equivalents: Approximately $770 million at quarter end.
-
Long Term Debt: Approximately $1.5 billion remaining.
-
Net Inventory Balance: $656 million, a decrease of $38 million sequentially.
-
Operating Cash Flow: $214 million.
-
Capital Expenditures: $38 million.
-
Free Cash Flow: $176 million.
-
Share Repurchase: $100 million at an average price of $73 per share.
-
Current Quarter Revenue Outlook: Approximately $850 million plus or minus $25 million.
-
Current Quarter Non-GAAP Gross Margin Outlook: Between 43% and 44%.
-
Current Quarter Non-GAAP Diluted EPS Outlook: Between $0.90 and $1.10.
-
Non-GAAP Tax Rate for Fiscal '25: Approximately 11%.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Qorvo Inc (NASDAQ:QRVO) reported favorable results relative to guidance with revenue of $916 million and non-GAAP diluted EPS of $1.61 per share.
-
The company is seeing strong growth in its Defense and Aerospace segment, with December being a record revenue quarter.
-
Qorvo Inc (NASDAQ:QRVO) is experiencing sequential strength in industrial and enterprise markets, particularly with ultra-wideband and Wi-Fi 7 technologies.
-
The company is focusing on high-margin opportunities by exiting lower-margin mass-tier Android 5G programs.
-
Qorvo Inc (NASDAQ:QRVO) is implementing strategic initiatives to expand margins, generate strong free cash flow, and increase shareholder value.
Negative Points
-
Qorvo Inc (NASDAQ:QRVO) expects Android 5G revenue to decline by $150 million to $200 million annually in fiscal '26 and '27, primarily impacting China and mid-tier Samsung.
-
The company anticipates a single-digit decline in ACG revenue for fiscal '26.
-
Qorvo Inc (NASDAQ:QRVO) is facing market headwinds in consumer markets, with sequential revenue declines.
-
The company is undergoing a significant workforce reduction, primarily targeting its mass market Android business.
-
Qorvo Inc (NASDAQ:QRVO) expects its non-GAAP tax rate to increase significantly from approximately 11% to between 18% and 19% in fiscal '26.
Q & A Highlights
Q: Can you confirm the expected revenue from Android customers for fiscal year '25 and the anticipated decline over the next few years? A: Robert Bruggeworth, President and CEO, confirmed that the revenue from Android customers is expected to be $875 million for fiscal year '25. This is projected to decline by $150 million to $200 million annually, primarily due to reductions in China and some Samsung business, with the remainder focusing on premium and flagship tiers.