Qorvo(US:QRVO)2025-01-29 21:06Revenue Performance - Revenue for Q3 fiscal 2025 decreased by 14.7% to $916.3 million compared to $1,073.9 million in Q3 fiscal 2024, primarily due to a shift to lower RF content 5G smartphones[101]. - Revenue for the nine months ended December 28, 2024, increased by 0.7% to $2.85 billion compared to $2.83 billion for the same period in 2023[102]. - The High Performance Analog segment saw a revenue increase of 44.4% to $171.7 million in Q3 fiscal 2025, attributed to higher revenue from infrastructure and defense sectors[112]. - HPA revenue for the nine months ended December 28, 2024 increased by $41.0 million, driven by a $38.0 million increase in power management revenue[116]. - Connectivity and Sensors Group (CSG) revenue for the nine months ended December 28, 2024 was $371.2 million, a 19.1% increase from $311.8 million in the prior year[119]. - Advanced Cellular Group (ACG) revenue for the three months ended December 28, 2024 decreased by $211.0 million, a 24.9% decline compared to the same period last year[124]. Profitability and Income - Gross margin improved to 42.7% in Q3 fiscal 2025 from 36.1% in Q3 fiscal 2024, aided by a favorable business mix[101]. - Operating income for Q3 fiscal 2025 was $53.0 million, a significant recovery from an operating loss of $41.6 million in Q3 fiscal 2024[101]. - Net income per diluted share rose to $0.43 in Q3 fiscal 2025, compared to a net loss per share of $1.31 in Q3 fiscal 2024[101]. - Operating loss for the Connectivity and Sensors Group improved by $33.3 million for the nine months ended December 28, 2024, compared to the prior year[123]. Cash Flow and Operating Activities - Net cash provided by operating activities was $214.1 million in Q3 fiscal 2025, down from $492.9 million in Q3 fiscal 2024[101]. - Cash generated from operating activities was $423.0 million for the nine months ended December 28, 2024, down from $630.8 million in the prior year[143]. Expenses and Capital Expenditures - Capital expenditures increased to $37.8 million in Q3 fiscal 2025 from $26.4 million in Q3 fiscal 2024[101]. - Research and development expenses rose by 13.0% to $567.8 million for the nine months ended December 28, 2024, driven by increased employee-related costs and product development[102]. - Operating expenses increased by $27.9 million due to the acquisition of Anokiwave and higher employee-related costs[117]. - Restructuring-related charges amounted to $68.1 million in Q3 fiscal 2025, primarily due to initiatives to optimize manufacturing and reduce operating expenses[101]. Shareholder Actions and Financial Position - The company repurchased approximately 3.3 million shares for $308.3 million during the nine months ended December 28, 2024, with $998.6 million remaining authorized for repurchases[142]. - As of December 28, 2024, the company had working capital of approximately $1,289.0 million, including $769.4 million in cash and cash equivalents[138]. - The company believes it has sufficient liquidity to meet both short-term and long-term cash requirements based on current and projected cash flows[152]. Debt and Financing - The company entered into a five-year unsecured senior credit facility with a $325.0 million senior revolving line of credit, which can be increased by an additional $325.0 million[146]. - The company issued $500.0 million aggregate principal amount of 2024 Notes, with $412.5 million repaid at maturity in the third quarter of fiscal 2025[148]. - Interest on the 2029 Notes is payable at a rate of 4.375% per annum, with a total principal amount of $850.0 million issued[149]. Legal and Compliance - The company is involved in various legal proceedings but does not expect these matters to have a material adverse effect on its financial position[153]. - The company has no borrowings under the Revolving Facility during the nine months ended December 28, 2024, and is in compliance with all covenants[147]. Assets and Liabilities - The company has $2,349,531,000 in non-current assets and $241,062,000 in current liabilities as of December 28, 2024[158]. - The company’s long-term liabilities amounted to $2,421,686,000 as of December 28, 2024[158]. - The company recognized an anticipated tax credit under the CHIPS Act during the three and nine months ended December 28, 2024[141].