As one of the world’s leading suppliers of RF solutions for civilian and military applications, Greensboro-based Qorvo leveraged continued domestic and global advancements in connectivity technology for significant year-over-year revenue growth.
Qorvo (Nasdaq: QRVO) released its third quarter fiscal year 2021 financial results on Wednesday.
On a GAAP (Generally Accepted Accounting Principals) basis, revenue for Qorvo’s fiscal 2021 third quarter was $1.1 billion, a gain of 21% from $869.1 million the same period in FY 2020. Gross profit was $595.6 million in the quarter, up 28% from $428.1 million year-over-year. Operating income was $299 million and diluted earnings per share was $1.74.
“Qorvo delivered an exceptional quarter helping our customers keep the world connected through the deployment of 5G, the roll-out of Wi-Fi 6 and 6E, and emerging technologies like precision location ultra-wideband,” said Qorvo President and CEO Bob Bruggeworth. “We are sustaining technology leadership in these markets and innovating in new ones including biotechnologies. In January, the National Institutes of Health selected Qorvo for its program to add Covid-19 testing capacity.”
Strategic highlights include:
• Expanded shipments of complete main path solutions across leading 5G basebands and secured wins to supply next-generation complete main path solutions in 2021 Android smart phones.
• Launched next-generation BAW process, increasing bandwidth and reducing insertion loss in UHB and Wi-Fi 6E applications
• Began shipments of first MHB dual-connectivity modules to the leading Android OEM, leveraging Qorvo’s high-performance BAW filtering in the diversity path for receive and transmit.
• Began production shipments of Wi-Fi 6E solutions to top-tier Android customers, supporting increased capacity and lower latency in a range of smart phones and other mobile devices.
• Increased UWB customer engagements in smart phones and a broadening range of consumer applications, including tracker tags, smart speakers, smart TVs and other smart home appliances.
• Secured design wins with multiple base station OEMs to support U.S. 5G C-band deployments and received Best Comprehensive Performance Award from ZTE for support of its 2020 5G rollout.
• Achieved strong growth in defense business, driven by domestic airborne radar and communications applications and GaN products for international radar programs
• Began shipments of 5 GHz Wi-Fi 6 BAW filters and sampled 6 GHz Wi-Fi 6E FEMs for routers and gateways, maximizing throughput and range for high bandwidth applications.
• Selected to supply 5G/LTE, C-V2X and Wi-Fi automotive-qualified products to multiple OEMs including Audi, BMW and Volvo.
• Selected to supply the leading television manufacturer with low power multi-protocol SOC and custom software enabling solar-charging remote controls.
“We expect robust end market demand to continue into the March quarter driving strong year-over-year revenue growth and operating margin expansion,” Qorvo CFO Mark Murphy said. “For the full fiscal year, we now project free cash flow of approximately $1 billion.”
The company’s expectations for the fourth quarter ending March 2021 include quarterly revenue of $1.025 billion to $1.055 billion, non-GAAP gross margin of 50.5% to 51%, and non-GAAP diluted earnings per share of $2.42 at the midpoint of guidance.
