Qorvo reduces December-quarter revenue, gross margin and earnings guidance

Qorvo Inc of Greensboro, NC, USA (which provides core technologies and RF solutions for mobile, infrastructure and defense applications) says that, due to recent demand changes for flagship smartphones, for fiscal third-quarter 2019 (to end-December 2018) it has reduced its guidance for revenue from $880-900m (given on 31 October) to $800-840m (below the prior year’s $844.8m), for non-GAAP gross margin from 50% to 49.5% (due primarily to lower factory utilization) and for diluted earnings per share from $1.95 to $1.70. Guidance for operating expenses has been cut by $4m, from $165m to $161m, due to expense control and lower incentive compensation.

Like Lumentum (which has also cut its December-quarter revenue, margin and earnings guidance in the last 24 hours), Qorvo is a supplier to iPhone maker Apple, which warned earlier in November that holiday sales would fall short of expectations, blaming weakness in emerging markets and foreign exchange costs.

Qorvo notes that its forecast of demand from China-based handset makers remains measured and largely unchanged. Also, its current forecast of demand across markets served by its Infrastructure and Defense Products (IDP) segment is tracking within the range of prior expectations.

For fiscal fourth-quarter 2019 (to end-March), Qorvo currently expects sequential revenue to fall by less than 10%.

See related items:

Qorvo’s quarterly revenue rises 8% year-on-year to a record $884m

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