30 January 2015

Qorvo reports combined RFMD-TriQuint December-quarter revenue up 33% year-on-year to $742m

Qorvo Inc, a provider of core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications, has reported December-quarter financial results for both RF Micro Devices Inc of Greensboro, NC, USA and TriQuint Semiconductor Inc of Hillsboro, OR, USA, following the merger of the two firms on 1 January. Combined revenue was $742m, up 16.9% on $634.8m last quarter and 33% on $556.2m a year ago.

Individually, for its fiscal third-quarter 2015 (ended 27 December 2014), RFMD's revenue was $397.1m, up 9.5% on $362.7m last quarter and 38% on $288.5m a year ago.

RFMD
Fiscal	Q3/2014	Q4/2014	Q1/2015	Q2/2015	Q3/2015
Revenue	$288.5m	$256	$316.3m	$362.7m	$397.1m

On a non-GAAP basis, gross margin has risen further, from 39.7% a year ago and 48% last quarter to 49.3%. Likewise, net income has risen further, from $36.4m ($0.13 per diluted share) a year ago and $90m ($0.30 per diluted share) last quarter to $108.4m ($0.36 per diluted share, exceeding the guidance of $0.33 per diluted share).

For TriQuint, fourth-quarter 2014 revenue (to end-December) was $344.9m, up 26.8% on $272.1m last quarter and 28.8% on $267.7m a year ago.

TriQuint
Fiscal	Q4/2013	Q1/2014	Q2/2014	Q3/2014	Q4/2014
Revenue	$267.7m	$177.6m	$230.8m	$272.1m	$344.9m

On a non-GAAP basis, gross margin has risen further, from 37.2% a year ago and 46.6% last quarter to 48.8%. Likewise, net income has risen further, from $26.4m ($0.16 per diluted share a year ago and $51.4m ($0.28 per diluted share) last quarter to $89.6m ($0.48 per diluted share, exceeding guidance of $0.40-0.45).

For both RFMD and TriQuint, revenue, gross profit, operating income, operating margin and earnings per share were all quarterly records.

Strategic highlights during the quarter are listed as follows:

• starting shipments of LowDrift and NoDrift high-performance filters (delivering what is claimed to be unmatched temperature stability to solve challenging band coexistence problems);

• securing the first major design win for optical applications in the high-growth data-center market;

• capturing multiple power amplifier (PA), switch and filter design wins on the two leading 4G chipsets for the China market;

• leveraging broad strength in gallium nitride (GaN) products for the defense market, highlighted by significant design wins in shipboard and land-based international radar programs;

• beginning volume production of RF Fusion integrated RF front-end solutions for a flagship smartphone anticipated in 2015;

• releasing what is claimed to be the highest-efficiency 5GHz WiFi PA for customer premises equipment (CPE) applications; and

• winning a contract (funded by the US Department of Defense) to enhance design and manufacturing capabilities for the Spatium family of high-power, solid-state GaN-based amplifiers, targeting traveling wave tube (TWT) amplifier replacements.

For the March 2015 quarter, Qorvo expects revenue of $615-625m, gross margin of 46-48% and diluted EPS of $0.80-0.90.

"Our March 2015 quarterly guidance implies year-over-year revenue growth of greater than 40%," notes Qorvo's chief financial officer Steve Buhaly. "Our expectations are to outpace the industry growth rate of 10-15% and achieve our target operating model of 50% gross margin, 20% operating expenses, and 30% operating margin," adds president & CEO Bob Bruggeworth.

See related items:

Merger of RFMD and TriQuint as Qorvo now completed

RFMD quarterly revenue grows 14.7% to $362.7m

TriQuint's revenue grows a more-than-expected 18% in Q3 to a record $272m, driven by 4G/LTE build-out

Tags: Qorvo RFMD TriQuint

Visit: www.qorvo.com