Qorvo Reports Mixed Financial Results, Net Loss in Latest Quarter Amid Challeng Marketing Conditions

Qorvo, Inc. reported its financial results for the three and six months ended September 28, 2024, revealing a mixed performance compared to the previous fiscal period. For the three months, total revenue decreased by 5.2% to $1,046.5 million from $1,103.5 million in the same period last year. However, for the six months, revenue increased by 10.2% to $1,933.2 million, up from $1,754.7 million. The decline in quarterly revenue was attributed to a shift towards lower RF content in 5G smartphones and a higher percentage of entry-level Android devices, while growth in Wi-Fi components and automotive connectivity products contributed positively to the six-month results.

Gross profit for the three months ended September 28, 2024, was $445.3 million, down from $489.7 million, reflecting a gross margin decrease to 42.6% from 44.4%. For the six-month period, gross profit increased to $777.6 million from $718.8 million, although the gross margin also decreased to 40.2% from 41.0%. Operating income for the three months plummeted to $9.7 million from $151.4 million, while for the six months, it fell to $14.3 million from $103.3 million. The significant drop in operating income was influenced by a $96.5 million goodwill impairment charge and restructuring-related expenses totaling $129.5 million.

Qorvo reported a net loss of $17.4 million for the three months ended September 28, 2024, compared to a net income of $97.5 million in the prior year. For the six months, the net loss was $17.0 million, down from a net income of $53.9 million. The basic net loss per share for the three months was $(0.18), compared to earnings of $1.00 per share in the same period last year.

Strategically, Qorvo completed the divestiture of its assembly and test operations in China for approximately $234.0 million, which was finalized on May 2, 2024. The company also initiated a restructuring initiative, including seeking strategic alternatives for its silicon carbide power device business, leading to significant impairment charges. As of September 28, 2024, Qorvo had cash and cash equivalents of $1,096.5 million, an increase from $1,029.3 million as of March 30, 2024.

In terms of operational segments, the High Performance Analog (HPA) segment saw a slight revenue decline, while the Connectivity and Sensors Group (CSG) experienced a notable revenue increase driven by Wi-Fi and automotive products. The company continues to focus on improving operational efficiencies and managing costs amid challenging market conditions.