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Qorvo(QRVO) - 2025 Q3 - Quarterly Report
QRVOQorvo(QRVO)2025-01-29 21:06

Revenue Performance - Revenue for Q3 fiscal 2025 decreased by 14.7% to 916.3millioncomparedto916.3 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 2.85billioncomparedto2.85 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 171.7millioninQ3fiscal2025,attributedtohigherrevenuefrominfrastructureanddefensesectors[112].−HPArevenuefortheninemonthsendedDecember28,2024increasedby171.7 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 38.0millionincreaseinpowermanagementrevenue[116].−ConnectivityandSensorsGroup(CSG)revenuefortheninemonthsendedDecember28,2024was38.0 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 311.8millionintheprioryear[119].−AdvancedCellularGroup(ACG)revenueforthethreemonthsendedDecember28,2024decreasedby311.8 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 53.0million,asignificantrecoveryfromanoperatinglossof53.0 million, a significant recovery from an operating loss of 41.6 million in Q3 fiscal 2024[101]. - Net income per diluted share rose to 0.43inQ3fiscal2025,comparedtoanetlosspershareof0.43 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 33.3millionfortheninemonthsendedDecember28,2024,comparedtotheprioryear[123].CashFlowandOperatingActivities−Netcashprovidedbyoperatingactivitieswas33.3 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 492.9millioninQ3fiscal2024[101].−Cashgeneratedfromoperatingactivitieswas492.9 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 630.8millionintheprioryear[143].ExpensesandCapitalExpenditures−Capitalexpendituresincreasedto630.8 million in the prior year[143]. Expenses and Capital Expenditures - Capital expenditures increased to 37.8 million in Q3 fiscal 2025 from 26.4millioninQ3fiscal2024[101].−Researchanddevelopmentexpensesroseby13.026.4 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 27.9millionduetotheacquisitionofAnokiwaveandhigheremployee−relatedcosts[117].−Restructuring−relatedchargesamountedto27.9 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 308.3millionduringtheninemonthsendedDecember28,2024,with308.3 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 1,289.0million,including1,289.0 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 325.0millionseniorrevolvinglineofcredit,whichcanbeincreasedbyanadditional325.0 million senior revolving line of credit, which can be increased by an additional 325.0 million[146]. - The company issued 500.0millionaggregateprincipalamountof2024Notes,with500.0 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 850.0millionissued[149].LegalandCompliance−Thecompanyisinvolvedinvariouslegalproceedingsbutdoesnotexpectthesematterstohaveamaterialadverseeffectonitsfinancialposition[153].−ThecompanyhasnoborrowingsundertheRevolvingFacilityduringtheninemonthsendedDecember28,2024,andisincompliancewithallcovenants[147].AssetsandLiabilities−Thecompanyhas850.0 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 241,062,000incurrentliabilitiesasofDecember28,2024[158].−Thecompany’slong−termliabilitiesamountedto241,062,000 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].