Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and
power solutions, today announced financial results for the
Company’s fiscal 2023 fourth quarter ended April 1, 2023.
On a GAAP basis, revenue for Qorvo’s fiscal 2023 fourth quarter
was $633 million, gross margin was 18.1%, operating loss was $189
million and loss per share was $1.39. On a non-GAAP basis, gross
margin was 41.3%, operating income was $34 million and diluted
earnings per share was $0.26.
Bob Bruggeworth, president and chief executive officer of Qorvo,
said, “Qorvo is operating well and investing in technology and
product leadership to broaden our market exposure and drive growth.
We are seeing increasing strength in customer design activity
across our businesses, and we expect improved financial performance
supported by content gains in large customer programs.”
Strategic Highlights
- Selected by aerospace industry leader to supply
cell-to-satellite solutions incorporating aerospace, base station
and mobile technologies to enable LEO-based space-to-terrestrial
connectivity
- Achieved key milestone delivering first Multi-Chip Module
(MCM-1) for SHIP RF prototype devices in collaboration with BAE
Systems and the U.S. Department of Defense
- Booked multi-million-dollar SiC inverter order for residential
and industrial solar applications
- Selected to supply UWB solutions into multiple verticals,
including next-generation smartwatch supporting secure car access,
Wi-Fi access points enabling indoor navigation and 2024 flagship
Android smartphone
- Collaborated with automotive OEMs and leading third parties to
advance smart antennas and next-generation shark fin architectures
and expanded 5G network access device design engagements with
automotive tier-ones
- Secured force-sensing touch sensor design win leveraging
ultra-sensitivity to enable new industrial design in premium true
wireless headset for leading European OEM
- Secured first Wi-Fi 7 BAW filter design wins and expanded
sampling of Wi-Fi solutions enabling full coverage across 2.4 GHz,
5 GHz and 6 GHz bands for smartphones and access points
- Supported ramp of Korea-based smartphone OEM’s flagship
smartphone with broad-based content including LB, MHB, UHB,
secondary transmit, tuning and Wi-Fi
- Awarded broad-based design wins in support of upcoming
flagship, mid-tier and mass market 5G devices at top five Android
smartphone OEMs
- Shipped first samples of new RFFE architecture integrating the
MHB PAD and DRx, utilizing next-generation BAW and SAW
technologies, for a 2024 Android smartphone
Financial Commentary and Outlook
Grant Brown, chief financial officer of Qorvo, said, “Qorvo
outperformed the midpoint of our revenue guidance in the March
quarter while reducing channel inventory of our components in the
Android ecosystem by approximately 25%. We anticipate continued
progress reducing Android channel inventory in the coming quarters,
with a return to historical norms by calendar year-end. Despite
ongoing weakness in end markets, our strong design win activity on
large customer programs supports our view for sequential revenue
growth in June and robust sequential revenue growth in
September.”
Qorvo’s current outlook for the June 2023 quarter is:
- Quarterly revenue of $620 million to $660 million
- Non-GAAP gross margin of approximately 41.5%
- Non-GAAP diluted earnings per share of approximately $0.15
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 April 1, 2023 |
|
For the quarter ended December 31, 2022 |
|
Change vs. Q3 FY 2023 |
|
Revenue |
$ |
632.7 |
|
$ |
743.3 |
|
$ |
(110.6 |
) |
|
Gross profit |
$ |
114.7 |
|
$ |
268.1 |
|
$ |
(153.4 |
) |
|
Gross margin |
|
18.1 |
% |
|
36.1 |
% |
|
(18.0 |
) |
ppt |
Operating expenses |
$ |
303.7 |
|
$ |
259.3 |
|
$ |
44.4 |
|
|
Operating (loss) income |
$ |
(189.0 |
) |
$ |
8.7 |
|
$ |
(197.7 |
) |
|
Net loss |
$ |
(138.4 |
) |
$ |
(15.9 |
) |
$ |
(122.5 |
) |
|
Weighted average diluted
shares |
|
99.5 |
|
|
100.9 |
|
|
(1.4 |
) |
|
Diluted EPS |
$ |
(1.39 |
) |
$ |
(0.16 |
) |
$ |
(1.23 |
) |
|
|
|
SELECTED NON-GAAP RESULTS1 |
|
|
|
(Unaudited) |
|
|
|
(In millions, except for percentages and EPS) |
|
|
|
For the quarter endedApril 1, 2023 |
|
For the quarter endedDecember 31, 2022 |
|
Change vs. Q3FY 2023 |
|
Revenue |
$ |
632.7 |
|
$ |
743.3 |
|
$ |
(110.6 |
) |
|
Gross profit |
$ |
261.2 |
|
$ |
304.2 |
|
$ |
(43.0 |
) |
|
Gross margin |
|
41.3 |
% |
|
40.9 |
% |
|
0.4 |
|
ppt |
Operating expenses |
$ |
227.4 |
|
$ |
205.7 |
|
$ |
21.7 |
|
|
Operating income |
$ |
33.8 |
|
$ |
98.6 |
|
$ |
(64.8 |
) |
|
Net income |
$ |
25.7 |
|
$ |
76.5 |
|
$ |
(50.8 |
) |
|
Weighted average diluted
shares |
|
100.4 |
|
|
101.6 |
|
|
(1.2 |
) |
|
Diluted EPS |
$ |
0.26 |
|
$ |
0.75 |
|
$ |
(0.49 |
) |
|
|
|
SELECTED GAAP RESULTS |
|
|
|
(Unaudited) |
|
|
|
(In millions, except for percentages and EPS) |
|
|
|
For the quarter ended April 1, 2023 |
|
For the quarter ended April 2, 2022 |
|
Change vs. Q4 FY 2022 |
|
Revenue |
$ |
632.7 |
|
$ |
1,166.2 |
|
$ |
(533.5 |
) |
|
Gross profit |
$ |
114.7 |
|
$ |
570.3 |
|
$ |
(455.6 |
) |
|
Gross margin |
|
18.1 |
% |
|
48.9 |
% |
|
(30.8 |
) |
ppt |
Operating expenses |
$ |
303.7 |
|
$ |
299.7 |
|
$ |
4.0 |
|
|
Operating (loss) income |
$ |
(189.0 |
) |
$ |
270.6 |
|
$ |
(459.6 |
) |
|
Net (loss) income |
$ |
(138.4 |
) |
$ |
212.3 |
|
$ |
(350.7 |
) |
|
Weighted average diluted
shares |
|
99.5 |
|
|
108.7 |
|
|
(9.2 |
) |
|
Diluted EPS |
$ |
(1.39 |
) |
$ |
1.95 |
|
$ |
(3.34 |
) |
|
|
|
SELECTED NON-GAAP RESULTS1 |
|
|
|
(Unaudited) |
|
|
|
(In millions, except for percentages and EPS) |
|
|
|
For the quarter ended April 1, 2023 |
|
For the quarter ended April 2, 2022 |
|
Change vs. Q4 FY 2022 |
|
Revenue |
$ |
632.7 |
|
$ |
1,166.2 |
|
$ |
(533.5 |
) |
|
Gross profit |
$ |
261.2 |
|
$ |
606.2 |
|
$ |
(345.0 |
) |
|
Gross margin |
|
41.3 |
% |
|
52.0 |
% |
|
(10.7 |
) |
ppt |
Operating expenses |
$ |
227.4 |
|
$ |
229.0 |
|
$ |
(1.6 |
) |
|
Operating income |
$ |
33.8 |
|
$ |
377.2 |
|
$ |
(343.4 |
) |
|
Net income |
$ |
25.7 |
|
$ |
339.6 |
|
$ |
(313.9 |
) |
|
Weighted average diluted
shares |
|
100.4 |
|
|
108.7 |
|
|
(8.3 |
) |
|
Diluted EPS |
$ |
0.26 |
|
$ |
3.12 |
|
$ |
(2.86 |
) |
|
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, start-up costs, 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 income and
operating margin, (iii) non-GAAP net income, (iv) non-GAAP net
income per diluted share, (v) non-GAAP operating expenses (research
and development; selling, general and administrative), (vi) free
cash flow, (vii) EBITDA, (viii) non-GAAP return on invested capital
(ROIC), and (ix) 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 April 1, 2023, non-GAAP gross profit
and gross margin also exclude charges associated with a long-term
capacity reservation agreement. 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.
We believe these non-cash charges are not reflective of the
performance of our ongoing business.
Non-GAAP operating income and operating margin. Non-GAAP
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, start-up costs, 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 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, start-up costs, 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 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, start-up
costs, 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 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.
Non-GAAP operating expenses (research and development and
selling, general and administrative). Non-GAAP research and
development and selling, general and administrative expenses
exclude stock-based compensation expense, amortization of
intangible assets and certain non-cash expenses (primarily
acquisition and integration related costs). We believe that
presentation of measures of these operating expenses that exclude
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 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
these non-GAAP operating expenses 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 13737714. The playback will be available through
the close of business May 10, 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 use of 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; our
substantial dependence on developing new products and achieving
design wins; our dependence on several large customers for a
substantial portion of our revenue; continued volatility and
uncertainty in customer demand, worldwide economies and financial
markets resulting from the impact of the COVID-19 pandemic,
conflict in Ukraine or other macroeconomic factors; a loss of
revenue if defense and aerospace contracts are canceled or delayed;
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; changes in the favorable tax status of certain
of our subsidiaries; enactment of international or domestic tax
legislation, or changes in regulatory guidance; 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 in Qorvo's most recent Annual Report on Form 10-K and
in other reports and statements filed with the Securities and
Exchange Commission, 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 SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
April 1, 2023 |
|
April 2, 2022 |
Revenue |
$ |
632,703 |
|
|
$ |
1,166,158 |
|
|
$ |
3,569,399 |
|
|
$ |
4,645,714 |
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
Cost of goods sold |
|
517,989 |
|
|
|
595,819 |
|
|
|
2,272,457 |
|
|
|
2,359,546 |
|
Research and development |
|
163,637 |
|
|
|
158,745 |
|
|
|
649,841 |
|
|
|
623,636 |
|
Selling, general and administrative |
|
82,954 |
|
|
|
83,927 |
|
|
|
358,790 |
|
|
|
349,718 |
|
Other operating expense |
|
57,105 |
|
|
|
57,070 |
|
|
|
105,143 |
|
|
|
86,745 |
|
Total costs and expenses |
|
821,685 |
|
|
|
895,561 |
|
|
|
3,386,231 |
|
|
|
3,419,645 |
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
(188,982 |
) |
|
|
270,597 |
|
|
|
183,168 |
|
|
|
1,226,069 |
|
Interest expense |
|
(17,241 |
) |
|
|
(17,392 |
) |
|
|
(68,463 |
) |
|
|
(63,326 |
) |
Other income (expense),
net |
|
7,210 |
|
|
|
(5,736 |
) |
|
|
9,924 |
|
|
|
18,341 |
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes |
|
(199,013 |
) |
|
|
247,469 |
|
|
|
124,629 |
|
|
|
1,181,084 |
|
Income tax benefit (expense) |
|
60,597 |
|
|
|
(35,194 |
) |
|
|
(21,477 |
) |
|
|
(147,731 |
) |
Net (loss) income |
$ |
(138,416 |
) |
|
$ |
212,275 |
|
|
$ |
103,152 |
|
|
$ |
1,033,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share,
diluted |
$ |
(1.39 |
) |
|
$ |
1.95 |
|
|
$ |
1.00 |
|
|
$ |
9.26 |
|
|
|
|
|
|
|
|
|
Weighted average outstanding
diluted shares |
|
99,513 |
|
|
|
108,687 |
|
|
|
103,019 |
|
|
|
111,546 |
|
QORVO, INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(In thousands, except per share data) |
(Unaudited) |
|
|
Three Months Ended |
|
April 1, 2023 |
|
December 31, 2022 |
|
April 2, 2022 |
|
|
|
|
|
|
GAAP operating (loss) income |
$ |
(188,982 |
) |
|
$ |
8,729 |
|
|
$ |
270,597 |
|
Stock-based compensation expense |
|
18,669 |
|
|
|
19,708 |
|
|
|
10,271 |
|
Amortization of intangible assets |
|
32,843 |
|
|
|
32,844 |
|
|
|
37,885 |
|
Restructuring related charges |
|
81,615 |
|
|
|
27,385 |
|
|
|
505 |
|
Acquisition and integration related costs |
|
2,065 |
|
|
|
6,296 |
|
|
|
11,379 |
|
Charges associated with a long-term capacity reservation
agreement |
|
71,000 |
|
|
|
— |
|
|
|
— |
|
Goodwill impairment |
|
12,411 |
|
|
|
— |
|
|
|
48,000 |
|
Loss (gain) on assets, start-up costs and other non-cash
expenses |
|
4,212 |
|
|
|
3,591 |
|
|
|
(1,449 |
) |
Non-GAAP operating income |
$ |
33,833 |
|
|
$ |
98,553 |
|
|
$ |
377,188 |
|
|
|
|
|
|
|
GAAP net (loss) income |
$ |
(138,416 |
) |
|
$ |
(15,931 |
) |
|
$ |
212,275 |
|
Stock-based compensation expense |
|
18,669 |
|
|
|
19,708 |
|
|
|
10,271 |
|
Amortization of intangible assets |
|
32,843 |
|
|
|
32,844 |
|
|
|
37,885 |
|
Restructuring related charges |
|
81,615 |
|
|
|
27,385 |
|
|
|
505 |
|
Acquisition and integration related costs |
|
2,065 |
|
|
|
6,296 |
|
|
|
11,379 |
|
Charges associated with a long-term capacity reservation
agreement |
|
71,000 |
|
|
|
— |
|
|
|
— |
|
Goodwill impairment |
|
12,411 |
|
|
|
— |
|
|
|
48,000 |
|
Loss (gain) on assets, start-up costs and other non-cash
expenses |
|
4,212 |
|
|
|
3,591 |
|
|
|
(1,449 |
) |
Loss on investments |
|
3,564 |
|
|
|
5,615 |
|
|
|
3,791 |
|
Other (income) expense |
|
(1,644 |
) |
|
|
(1,908 |
) |
|
|
2,554 |
|
Adjustment of income taxes |
|
(60,583 |
) |
|
|
(1,145 |
) |
|
|
14,390 |
|
Non-GAAP net income |
$ |
25,736 |
|
|
$ |
76,455 |
|
|
$ |
339,601 |
|
|
|
|
|
|
|
GAAP weighted average
outstanding diluted shares |
|
99,513 |
|
|
|
100,943 |
|
|
|
108,687 |
|
Dilutive stock-based awards |
|
933 |
|
|
|
664 |
|
|
|
— |
|
Non-GAAP weighted average
outstanding diluted shares |
|
100,446 |
|
|
|
101,607 |
|
|
|
108,687 |
|
|
|
|
|
|
|
Non-GAAP net income per share,
diluted |
$ |
0.26 |
|
|
$ |
0.75 |
|
|
$ |
3.12 |
|
|
|
|
|
|
|
QORVO, INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(Unaudited) |
|
|
|
Three Months Ended |
(in thousands, except
percentages) |
April 1, 2023 |
|
December 31, 2022 |
|
April 2, 2022 |
GAAP gross profit/margin |
$ |
114,714 |
18.1 |
% |
|
$ |
268,051 |
36.1 |
% |
|
$ |
570,339 |
48.9 |
% |
Amortization of intangible assets |
|
28,132 |
4.5 |
|
|
|
27,624 |
3.7 |
|
|
|
30,665 |
2.7 |
|
Stock-based compensation expense |
|
4,175 |
0.7 |
|
|
|
4,939 |
0.6 |
|
|
|
3,879 |
0.3 |
|
Restructuring related charges |
|
43,004 |
6.8 |
|
|
|
3,600 |
0.5 |
|
|
|
— |
— |
|
Charges associated with a long-term capacity reservation
agreement |
|
71,000 |
11.2 |
|
|
|
— |
— |
|
|
|
— |
— |
|
Other non-cash expenses |
|
162 |
— |
|
|
|
28 |
— |
|
|
|
1,272 |
0.1 |
|
Non-GAAP gross
profit/margin |
$ |
261,187 |
41.3 |
% |
|
$ |
304,242 |
40.9 |
% |
|
$ |
606,155 |
52.0 |
% |
|
Three Months Ended |
Non-GAAP Operating Income |
April 1, 2023 |
(as a percentage of sales) |
|
|
|
GAAP operating loss |
(29.9 |
)% |
Stock-based compensation expense |
2.9 |
|
Amortization of intangible assets |
5.2 |
|
Restructuring related charges |
12.9 |
|
Acquisition and integration related costs |
0.3 |
|
Goodwill impairment |
2.0 |
|
Charges associated with a long-term capacity reservation
agreement |
11.2 |
|
Loss on assets, start-up costs and other non-cash expenses |
0.7 |
|
Non-GAAP operating income |
5.3 |
% |
|
Three Months Ended |
Free Cash Flow(1) |
April 1, 2023 |
(in millions) |
|
|
|
Net cash provided by operating activities |
$ |
65.4 |
|
Purchases of property and
equipment |
|
(34.1 |
) |
Free cash flow |
$ |
31.3 |
|
(1) Free Cash Flow is calculated as net cash provided by
operating activities minus property and equipment expenditures.
QORVO, INC. AND SUBSIDIARIES |
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
(In thousands) |
(Unaudited) |
|
Three Months Ended |
|
April 1, 2023 |
|
December 31, 2022 |
|
April 2, 2022 |
GAAP research and development expense |
$ |
163,637 |
|
$ |
149,472 |
|
$ |
158,745 |
|
Less: |
|
|
|
|
|
Stock-based compensation expense |
|
10,286 |
|
|
10,343 |
|
|
8,423 |
|
Other non-cash expenses |
|
26 |
|
|
49 |
|
|
72 |
|
Non-GAAP research and
development expense |
$ |
153,325 |
|
$ |
139,080 |
|
$ |
150,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
April 1, 2023 |
|
December 31, 2022 |
|
April 2, 2022 |
GAAP selling, general and
administrative expense |
$ |
82,954 |
|
$ |
76,269 |
|
$ |
83,927 |
|
Less: |
|
|
|
|
|
Stock-based compensation expense (adjustment) |
|
4,208 |
|
|
4,426 |
|
|
(2,031 |
) |
Amortization of intangible assets |
|
4,711 |
|
|
5,220 |
|
|
7,220 |
|
Other non-cash expenses |
|
7 |
|
|
13 |
|
|
22 |
|
Non-GAAP selling, general and
administrative expense |
$ |
74,028 |
|
$ |
66,610 |
|
$ |
78,716 |
|
QORVO, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
April 1, 2023 |
|
April 2, 2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
808,757 |
|
$ |
972,592 |
Accounts receivable, net |
|
304,519 |
|
|
568,850 |
Inventories |
|
796,596 |
|
|
755,748 |
Other current assets |
|
119,922 |
|
|
152,675 |
Total current assets |
|
2,029,794 |
|
|
2,449,865 |
|
|
|
|
Property and equipment,
net |
|
1,149,806 |
|
|
1,253,591 |
Goodwill |
|
2,760,813 |
|
|
2,775,634 |
Intangible assets, net |
|
537,703 |
|
|
674,786 |
Long-term investments |
|
20,406 |
|
|
31,086 |
Other non-current assets |
|
193,381 |
|
|
324,110 |
Total assets |
$ |
6,691,903 |
|
$ |
7,509,072 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
433,164 |
|
$ |
568,101 |
Other current liabilities |
|
122,599 |
|
|
107,026 |
Total current liabilities |
|
555,763 |
|
|
675,127 |
|
|
|
|
Long-term debt |
|
2,048,073 |
|
|
2,047,098 |
Other long-term
liabilities |
|
185,273 |
|
|
233,629 |
Total liabilities |
|
2,789,109 |
|
|
2,955,854 |
|
|
|
|
Stockholders’ equity |
|
3,902,794 |
|
|
4,553,218 |
Total liabilities and stockholders’ equity |
$ |
6,691,903 |
|
$ |
7,509,072 |
At Qorvo®Doug DeLietoVP, Investor Relations1.336.678.7968
Qorvo (NASDAQ:QRVO)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Qorvo (NASDAQ:QRVO)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024