GREENSBORO, N.C., July 30, 2024 (GLOBE NEWSWIRE) -- Qorvo® (NASDAQ:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company's fiscal 2025 first quarter ended June 29, 2024. Strategic Highlights Grew quarterly revenue 36% year-over-year and exceeded mid-point of revenue guidance by $37 million Transitioned Beijing and Dezhou operations to Luxshare and integrated Anokiwave into Qorvo On a GAAP basis, revenue for Qorvo's fiscal 2025 first quarter was $887 million, gross margin was 37.5%, operating income was $4.6 million, and diluted earnings per share was $0.00. On a non-GAAP basis, gross margin was 40.9%, operating income was $98.1 million, and diluted earnings per share was $0.87. Bob Bruggeworth, president and chief executive officer of Qorvo, said, "During the June quarter, we fully integrated Anokiwave into Qorvo, adding silicon beam-forming ICs and IF-RF conversion products. We are investing in technology leadership to broaden our market exposure and drive growth, and we are executing on cost and productivity initiatives to structurally enhance our gross margin." Financial Commentary and Outlook Grant Brown, chief financial officer of Qorvo, said, "Qorvo exceeded the mid-point of June quarterly guidance for revenue, gross margin and EPS. For the September quarter, we expect sequential increases in revenue, gross margin and EPS. We are leveraging internal factories which are critical differentiators for each of our operating segments, while outsourcing to our robust foundry and OSAT partner network where we benefit from their scale and R&D investments." Qorvo's current outlook for the September 2024 quarter is: Quarterly revenue of approximately $1.025 billion, plus or minus $25 million Non-GAAP gross margin between 46% and 47% Non-GAAP diluted earnings per share between $1.75 and $1.95 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)                           Q1 Fiscal 2025   Q4 Fiscal 2024   Q1 Fiscal 2024   Sequential Change   Year-over-Year Change Revenue $ 886.7     $ 941.0     $ 651.2     $ (54.3 )   $ 235.5   Gross profit $ 332.3     $ 381.9     $ 229.1     $ (49.6 )   $ 103.2   Gross margin   37.5 %     40.6 %     35.2 %     (3.1) ppt       2.3 ppt   Operating expenses $ 327.7     $ 351.9     $ 277.2     $ (24.2 )   $ 50.5   Operating income (loss) $ 4.6     $ 30.0     $ (48.1 )   $ (25.4 )   $ 52.7   Net income (loss) $ 0.4     $ 2.7     $ (43.6 )   $ (2.3 )   $ 44.0   Weighted-average diluted shares   96.5       97.3       98.5       (0.8 )     (2.0 ) Diluted EPS $ 0.00     $ 0.03     $ (0.44 )   $ (0.03 )   $ 0.44                           SELECTED NON-GAAP RESULTS (1) (In millions, except for percentages and EPS) (Unaudited)                           Q1 Fiscal 2025   Q4 Fiscal 2024   Q1 Fiscal 2024   Sequential Change   Year-over-Year Change Revenue $ 886.7     $ 941.0     $ 651.2     $ (54.3 )   $ 235.5   Gross profit $ 362.7     $ 400.4     $ 279.5     $ (37.7 )   $ 83.2   Gross margin   40.9 %     42.5 %     42.9 %     (1.6) ppt       (2.0) ppt   Operating expenses $ 264.5     $ 253.2     $ 232.7     $ 11.3     $ 31.8   Operating income $ 98.1     $ 147.2     $ 46.7     $ (49.1 )   $ 51.4   Net income $ 83.5     $ 135.5     $ 33.6     $ (52.0 )   $ 49.9   Weighted-average diluted shares   96.5       97.3       99.3       (0.8 )     (2.8 ) Diluted EPS $ 0.87     $ 1.39     $ 0.34     $ (0.52 )   $ 0.53   (1) Adjusted for stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, gain or loss on investments, and an adjustment of income taxes. SELECTED GAAP RESULTS BY OPERATING SEGMENT (In millions, except percentages) (Unaudited)     Q1 Fiscal 2025   Q4 Fiscal 2024   Q1 Fiscal 2024   Sequential Change   Year-over-Year Change Revenue                   HPA $ 129.5     $ 164.6     $ 139.7     (21.3 )%   (7.3 )% CSG   114.9       122.8       99.3     (6.4 )%   15.7 % ACG   642.3       653.6       412.2     (1.7 )%   55.8 % Total revenue $ 886.7     $ 941.0     $ 651.2     (5.8 )%   36.2 % Operating income (loss)                       HPA $ 4.9     $ 31.5     $ 24.0     (84.4 )%   (79.6 )% CSG   (19.5 )     (15.2 )     (20.2 )   (28.3 )%   3.5 % ACG   116.4       134.3       45.0     (13.3 )%   158.7 % All other (1)   (97.2 )     (120.6 )     (96.9 )   19.4 %   (0.3 )% Total operating income (loss) $ 4.6     $ 30.0     $ (48.1 )   (84.7 )%   109.6 % Operating income (loss) as a % of revenue                       HPA   3.8 %     19.1 %     17.2 %   (15.3) ppt     (13.4) ppt   CSG   (17.0 )     (12.4 )     (20.3 )   (4.6) ppt     3.3 ppt   ACG   18.1       20.5       10.9     (2.4) ppt     7.2 ppt   Total operating income (loss) as a % of revenue   0.5 %     3.2 %     (7.4 )%   (2.7) ppt     7.9 ppt   (1) Includes stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, and other miscellaneous corporate overhead expenses. 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 expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) 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, 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 ...