Qorvo, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2017; Provides Earnings Guidance for the Fourth Quarter Ending March 2018 and Full Year of Fiscal 2019 and Capex Guidance for the Full Year of Fiscal 2018
January 31, 2018 at 04:07 pm
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Qorvo, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2017. For the quarter, the company reported revenue of $845,739,000 compared to $826,347,000 a year ago. Income from operations was $80,320,000 compared to $61,381,000 a year ago. Income before income taxes was $65,440,000 compared to $44,541,000 a year ago. Net loss was $33,082,000 or $0.26 per diluted share compared to $78,638,000 or $0.62 per diluted share a year ago. Non-GAAP operating income was $254,271,000 compared to $208,679,000 a year ago. Non-GAAP net income was $220,210,000 compared to $177,269,000 a year ago. Non-GAAP net income per share, diluted was $1.69 compared to $1.35 a year ago. Net cash provided by operating activities was $270.1 million and purchases of property and equipment was $45.5 million. Free cash flow was $224.6 million. Non-GAAP sales were $844.8 million.
For the nine months, the company reported revenue of $2,308,153,000 compared to $2,389,582,000 a year ago. Income from operations was $102,055,000 compared to $112,515,000 a year ago. Income before income taxes was $60,824,000 compared to $64,593,000 a year ago. Net loss was $27,787,000 or $0.22 per diluted share compared to $72,466,000 or $0.57 per diluted share a year ago.
For the fourth quarter ending March 2018, the company expects quarterly revenue in the range of $645 million to $665 million; gross margin flat-to-up 50 basis points sequentially, due primarily to reduced volumes of low-band PADs and an increased mix of higher-margin IDP business; and diluted earnings per share of $1.05 at the midpoint of guidance. Free cash flow is expected to be around $200 million. The company expects fourth quarter non-GAAP tax rate to remain below 8.5%.
The company expects CapEx to end the full fiscal year 2018 below 10% of sales, down from 18% of sales last year.
Based on outlook and current interpretation of recent U.S. tax law changes, the company projects fiscal year 2019 non-GAAP tax rate to be 10% or lower. The company is targeting free cash flow of $800 million in fiscal year 2019.
Qorvo, Inc. specializes in the design, production and marketing of radio-frequency components and solutions. In particular, the group makes power amplifiers, embedded modules, selector switches, duplexers, power management devices, wireless connection solutions, frequency convertors, oscillators, couplers and optical components.
Net sales break down by activity as follows:
- mobile terminals and electronic devices (76.3%);
- defense and aeronautics equipment, network infrastructures (23.7%).
At the end of March 2022, the group had 7 production sites located in the United States (3), China (2), Costa Rica and Germany.
Net sales break down geographically as follows: the United States (41.5%), China (32.3%), Taiwan (7.4%), Asia (13.4%) and Europe (5.4%).
Qorvo, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2017; Provides Earnings Guidance for the Fourth Quarter Ending March 2018 and Full Year of Fiscal 2019 and Capex Guidance for the Full Year of Fiscal 2018