GREENSBORO, N.C., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company's fiscal 2025 third quarter ended December 28, 2024.
On a GAAP basis, revenue for Qorvo's fiscal 2025 third quarter was $916.3 million, gross margin was 42.7%, operating income was $53.0 million, and diluted earnings per share was $0.43. On a non-GAAP basis, gross margin was 46.5%, operating income was $177.9 million, and diluted earnings per share was $1.61.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, "Qorvo is executing on a broad set of strategic initiatives to expand margin, generate strong free cash flow, and increase shareholder value. During the December quarter, we continued to successfully support our largest customer, who represented approximately 50% of sales. Within our Android 5G product portfolio, we are narrowing our focus to the higher-value flagship and premium tiers, where customers value Qorvo's differentiated products. In HPA, we had record Defense & Aerospace quarterly revenue and expect continued strength in the March quarter. As we continue to execute on our growth and diversification strategy, we expect HPA and CSG to deliver double-digit growth in fiscal 2025 and next fiscal year.”
Financial Commentary and Outlook
Grant Brown, chief financial officer of Qorvo, said, "Qorvo exceeded the midpoint of our December quarter non-GAAP guidance in revenue, gross margin, and EPS. During the quarter, we took proactive steps to change how we support our Android business. These actions will reduce operating expense and are expected to benefit gross margin in our fiscal 2026. Subsequent to the quarter, we divested our silicon carbide business. These actions, in aggregate, are expected to support a high-40%'s gross margin in seasonally strong quarters of fiscal 2026 and additional gross margin improvement in fiscal 2027.”
Qorvo's current outlook for the March 2025 quarter is:
- Quarterly revenue of approximately $850 million, plus or minus $25 million1
- Non-GAAP gross margin between 43% and 44%
- Non-GAAP diluted earnings per share between $0.90 and $1.10
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) | |||||||||||||||||||||
| Q3 Fiscal 2025 | Q2 Fiscal 2025 | Q3 Fiscal 2024 | Sequential Change | Year-over-Year Change | |||||||||||||||||
| Revenue | $ | 916.3 | $ | 1,046.5 | $ | 1,073.9 | $ | (130.2 | ) | $ | (157.6 | ) | |||||||||
| Gross profit | $ | 391.4 | $ | 445.3 | $ | 387.9 | $ | (53.9 | ) | $ | 3.5 | ||||||||||
| Gross margin | 42.7 | % | 42.6 | % | 36.1 | % | 0.1 ppt | 6.6 ppt | |||||||||||||
| Operating expenses | $ | 338.4 | $ | 435.6 | $ | 429.4 | $ | (97.2 | ) | $ | (91.0 | ) | |||||||||
| Operating income (loss) | $ | 53.0 | $ | 9.7 | $ | (41.6 | ) | $ | 43.3 | $ | 94.6 | ||||||||||
| Net income (loss) | $ | 41.3 | $ | (17.4 | ) | $ | (126.9 | ) | $ | 58.7 | $ | 168.2 | |||||||||
| Weighted-average diluted shares | 95.0 | 94.9 | 97.2 | 0.1 | (2.2 | ) | |||||||||||||||
| Diluted EPS (loss per share) | $ | 0.43 | $ | (0.18 | ) | $ | (1.31 | ) | $ | 0.61 | $ | 1.74 | |||||||||
| SELECTED NON-GAAP RESULTS(1) | |||||||||||||||||||||
| (In millions, except for percentages and EPS) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Q3 Fiscal 2025 | Q2 Fiscal 2025 | Q3 Fiscal 2024 | Sequential Change | Year-over-Year Change | |||||||||||||||||
| Revenue | $ | 916.3 | $ | 1,046.5 | $ | 1,073.9 | $ | (130.2 | ) | $ | (157.6 | ) | |||||||||
| Gross profit | $ | 426.3 | $ | 492.0 | $ | 470.5 | $ | (65.7 | ) | $ | (44.2 | ) | |||||||||
| Gross margin | 46.5 | % | 47.0 | % | 43.8 | % | (0.5) ppt | 2.7 ppt | |||||||||||||
| Operating expenses | $ | 248.4 | $ | 279.8 | $ | 234.0 | $ | (31.4 | ) | $ | 14.4 | ||||||||||
| Operating income | $ | 177.9 | $ | 212.2 | $ | 236.5 | $ | (34.3 | ) | $ | (58.6 | ) | |||||||||
| Net income | $ | 152.8 | $ | 179.8 | $ | 205.9 | $ | (27.0 | ) | $ | (53.1 | ) | |||||||||
| Weighted-average diluted shares | 95.0 | 95.8 | 97.8 | (0.8 | ) | (2.8 | ) | ||||||||||||||
| Diluted EPS | $ | 1.61 | $ | 1.88 | $ | 2.10 | $ | (0.27 | ) | $ | (0.49 | ) | |||||||||
| SELECTED GAAP RESULTS BY OPERATING SEGMENT | |||||||||||||||||||
| (In millions, except percentages) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Q3 Fiscal 2025 | Q2 Fiscal 2025 | Q3 Fiscal 2024 | Sequential Change | Year-over-Year Change | |||||||||||||||
| Revenue | |||||||||||||||||||
| HPA | $ | 171.7 | $ | 148.3 | $ | 118.9 | 15.8 | % | 44.4 | % | |||||||||
| CSG | 109.5 | 146.8 | 108.9 | (25.4 | )% | 0.6 | % | ||||||||||||
| ACG | 635.1 | 751.4 | 846.1 | (15.5 | )% | (24.9 | )% | ||||||||||||
| Total revenue | $ | 916.3 | $ | 1,046.5 | $ | 1,073.9 | (12.4 | )% | (14.7 | )% | |||||||||
| Operating income (loss) | |||||||||||||||||||
| HPA | $ | 32.6 | $ | 13.1 | $ | 1.6 | 148.9 | % | 1,937.5 | % | |||||||||
| CSG | (11.7 | ) | (9.0 | ) | (25.6 | ) | (30.0 | )% | 54.3 | % | |||||||||
| ACG | 161.2 | 215.1 | 263.8 | (25.1 | )% | (38.9 | )% | ||||||||||||
| All other(1) | (129.1 | ) | (209.5 | ) | (281.4 | ) | 38.4 | % | 54.1 | % | |||||||||
| Total operating income (loss) | $ | 53.0 | $ | 9.7 | $ | (41.6 | ) | 446.4 | % | 227.4 | % | ||||||||
| Operating income (loss) as a % of revenue | |||||||||||||||||||
| HPA | 19.0 | % | 8.8 | % | 1.3 | % | 10.2 ppt | 17.7 ppt | |||||||||||
| CSG | (10.7 | ) |
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