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This article first appeared on GuruFocus.
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Revenue: $993 million for the fiscal third quarter.
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Non-GAAP Gross Margin: 49.1% for the fiscal third quarter.
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Non-GAAP Diluted Earnings Per Share (EPS): $2.17 for the fiscal third quarter.
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Largest Customer Revenue Contribution: Approximately 53% of total revenue.
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Cash and Equivalents: Approximately $1.3 billion as of quarter-end.
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Long-term Debt: Approximately $1.5 billion with no near-term maturities.
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Net Inventory Balance: $530 million, a sequential reduction of $75 million.
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Operating Cash Flow: Approximately $265 million for the quarter.
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Capital Expenditures: $28 million for the quarter.
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Free Cash Flow: $237 million for the quarter.
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Fiscal Q4 Revenue Guidance: $800 million plus or minus $25 million.
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Fiscal Q4 Non-GAAP Gross Margin Guidance: Between 48% and 49%.
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Fiscal Q4 Non-GAAP Diluted EPS Guidance: $1.20 plus or minus $0.15.
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Non-GAAP Operating Expenses Guidance for March Quarter: Between $240 million and $250 million.
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Non-GAAP Tax Rate for Fiscal ’26: Expected to be approximately 15%.
Release Date: January 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Qorvo Inc (NASDAQ:QRVO) delivered solid financial performance in the fiscal third quarter with notable strategic achievements across each operating segment.
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The company is expanding its reach in automotive, enterprise, industrial, and other customer segments with its ultra-wideband technology.
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Qorvo Inc (NASDAQ:QRVO) successfully closed its Costa Rica facility ahead of schedule, transitioning to external partners, which will help reduce capital intensity.
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The company has secured a significant placement in cellular-enabled iPads, representing a product and technology milestone.
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Qorvo Inc (NASDAQ:QRVO) is seeing strong customer demand for its Wi-Fi 7 solutions, with initial deployments in hospitals, factories, and other enterprises.
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Qorvo Inc (NASDAQ:QRVO) expects a greater than seasonal decline in Android revenue, with a forecasted $300 million decline in fiscal 2027.
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The company received lower share in the ultra-high band pad for upcoming phone models, leading to an expected decline in revenue year over year.
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Qorvo Inc (NASDAQ:QRVO) is strategically exiting lower-margin mass-tier Android segments, impacting overall revenue.
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The company anticipates a mid-single-digit decline in full-year revenue for fiscal 2027 due to declines in ACG and Android business.
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Qorvo Inc (NASDAQ:QRVO) is facing challenges with memory pricing and availability, impacting mass-tier Android build plans.
Q: Can you discuss the content roadmap for future generations, particularly regarding dual sourcing and potential content gains? A: Robert Bruggeworth, President and CEO, mentioned that while they don’t comment on future generations, there are opportunities to grow their footprint. The company is investing in R&D to continue expanding with their largest customer, despite increased dual sourcing.
Q: What does “down more than seasonal” mean for Android revenue in the March quarter? A: Robert Bruggeworth explained that typically Android revenue is up in the March quarter. However, due to strategic exits from lower-margin business and reduced participation in certain Android ramps, revenue will be down quarter-over-quarter.
Q: Why is the expected decline in Android revenue for fiscal 2027 now $300 million instead of the previously estimated $150-$200 million? A: Grant Brown, CFO, stated that the increase is due to both strategic exits from lower-margin segments and memory pricing and availability constraints impacting customer build plans.
Q: How will the strategic exit from low-end Android impact the business, and how are memory prices affecting the mobile segment? A: Dave Fullwood, SVP of Sales & Marketing, explained that the decline is primarily due to the ongoing resizing of the Android business. Memory pricing and availability are causing OEMs to adjust build plans, prioritizing higher-end devices, which accelerates their strategy.
Q: Can you clarify the impact of dual sourcing on integrated modules and future prospects? A: Robert Bruggeworth noted that dual sourcing has been in place for ultra-highband for years. While they have less content this year, they gained a highband pad win, which is a positive development.
Q: How does the current higher memory pricing affect your mobile business, and what is the expected impact next year? A: Dave Fullwood mentioned that higher memory prices are causing OEMs to adjust build plans, impacting mass-tier devices. This aligns with Qorvo’s strategy to focus on higher-margin segments.
Q: What is the outlook for gross margins in fiscal 2027, and what are the main drivers? A: Grant Brown highlighted that the biggest driver for margin improvement is business mix, with HPA becoming a larger percentage of the total. Strategic exits from lower-tier Android business also contribute to margin gains.
Q: Are there any changes in inventory levels at customers, and how does this compare to typical expectations? A: Dave Fullwood stated that there are no abnormal changes in inventory levels. Adjustments are more related to build plans in response to memory pricing and availability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.