Qorvo(US:QRVO)2025-01-28 21:05Financial Performance - Qorvo's fiscal 2025 Q3 revenue was $916.3 million, a decrease of 12.4% sequentially and 14.7% year-over-year[7]. - Non-GAAP gross margin for Q3 was 46.5%, compared to 47.0% in Q2 and 43.8% in Q3 of the previous year[9]. - Operating income for Q3 was $53.0 million, a significant increase of 446.4% sequentially and 227.4% year-over-year[11]. - The company expects Q4 revenue to be approximately $850 million, with a non-GAAP gross margin between 43% and 44%[4]. - Qorvo reported revenue of $916.3 million for the three months ended December 28, 2024, a decrease from $1,073.9 million for the same period last year, representing a decline of approximately 14.6%[37]. - The company achieved an operating income of $53.0 million for the three months ended December 28, 2024, compared to an operating loss of $41.6 million in the same period last year[37]. - Net income for the three months ended December 28, 2024, was $41.3 million, a significant improvement from a net loss of $126.9 million in the prior year[37]. - Basic net income per share was $0.44 for the three months ended December 28, 2024, compared to a loss of $1.31 per share in the same period last year[37]. - Non-GAAP diluted earnings per share for Q3 was $1.61, down from $2.10 in Q3 of the previous year[9]. - GAAP net income for Q3 2024 was $41,271,000, compared to a loss of $126,938,000 in Q3 2023[38]. Cost Management - Operating expenses decreased to $338.4 million in Q3, down from $435.6 million in Q2 and $429.4 million in Q3 of the previous year[7]. - Total costs and expenses decreased to $863.3 million for the three months ended December 28, 2024, down from $1,115.4 million in the same period last year, a reduction of about 22.6%[37]. - Research and development expenses increased to $179.1 million for the three months ended December 28, 2024, up from $164.3 million in the prior year, reflecting a growth of approximately 9.5%[37]. - Research and development expenses on a GAAP basis were $179,126,000 in Q3 2024, up from $164,329,000 in Q3 2023[42]. Customer and Market Insights - Qorvo's largest customer accounted for approximately 50% of sales during the December quarter[2]. - The HPA segment achieved record Defense & Aerospace quarterly revenue, with a 44.4% year-over-year increase[11]. - Qorvo anticipates double-digit growth in HPA and CSG segments for fiscal 2025 and the following fiscal year[2]. Cash Flow and Financial Health - Free cash flow for Q3 2024 was $176.3 million, reflecting net cash provided by operating activities of $214.1 million after $37.8 million in capital expenditures[40]. - Free cash flow is defined as net cash provided by operating activities minus property and equipment expenditures, which is used as an indicator of liquidity and financial strength[23]. - The company emphasizes the importance of free cash flow as a supplemental financial measure to assess its ability to service debt and make strategic investments[23]. - Current liabilities decreased to $807,861,000 from $1,230,087,000 in March 2024, indicating improved liquidity[44]. Future Outlook - Qorvo's forward-looking statements indicate expectations for future performance, but actual results may differ due to various risks and uncertainties[34]. - The company divested its silicon carbide business, which is expected to support a high-40% gross margin in strong quarters of fiscal 2026[3]. Operational Efficiency - Non-GAAP operating income margin for Q3 2024 was 19.4%, reflecting operational efficiency improvements[40]. - Non-GAAP gross profit margin improved to 46.5% in Q3 2024, compared to 43.8% in Q3 2023[40]. - Goodwill impairment charges were eliminated in Q3 2024, compared to $173,414,000 in Q3 2023[38].