Qorvo Inc (NASDAQ:QRVO), a leading provider of core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications, announced fiscal 2015 fourth quarter financial results, ended March 28, 2015.
On a GAAP basis, March quarterly revenue was $634.9 million, gross margin was 29.8%, operating loss was $102.5 million, and net income was $6.5 million, or $0.04 per diluted share based on 150.5 million shares outstanding. GAAP operating results include approximately $250 million of merger-related accounting entries and costs.
On a non-GAAP basis, March quarterly revenue was $633.9 million and gross margin was 50.4%. Synergies in G&A were balanced by higher investments in R&D, yielding operating income of $169.6 million, or 26.8% of sales. Cash taxes were approximately 2% versus Qorvo’s original guidance of 5% to 10%. Net income was $167.2 million, or $1.11 per diluted share based on 150.5 million shares outstanding.
Comments from Management
Bob Bruggeworth, president and chief executive officer of Qorvo, said, “The global Qorvo team delivered an outstanding performance in our first full quarter. Revenue grew 46% year-over-year to $634 million, as compared to RFMD and TriQuinton a combined basis, and gross margin expanded to 50.4%. The sequential increase in gross margin in the seasonally down March quarter reflected crisp execution by the Qorvo team as we implemented our integration plans and captured synergies.
“Qorvo is a leading beneficiary of the explosive demand for mobile data and the resulting growth in data traffic. We enjoy strong participation in the highest volume and highest value devices across the mobile, infrastructure, and defense markets, and we anticipate continued strong financial performance in the June quarter. We are confident in our ability to deliver a run rate exceeding $75 million in synergies exiting this calendar year, and we see a clear path to a run rate of greater than$150 million in synergies exiting calendar 2016.”
Steve Buhaly, chief financial officer of Qorvo, said, “Continued strong execution is expected to drive about 10% sequential growth in operating income during the June quarter on a projected 5% increase in revenue. It’s exciting to see the integration beginning to drive value for our customers and our stockholders.” (Original Source)
Shares of Qorvo closed today at $69.06, up $1.99 or 2.97%. QRVO has a 1-year high of $85.63 and a 1-year low of $63.02. The stock’s 50-day moving average is $74.43 and its 200-day moving average is $71.39.
On the ratings front, Qorvo has been the subject of a number of recent research reports. In a report issued on April 9, Canaccord Genuity analyst Michael Walkley reiterated a Buy rating on QRVO, with a price target of $85, which represents a potential upside of 25.6% from where the stock is currently trading. Separately, on April 2, Brean Capital’s Mike Burton reiterated a Buy rating on the stock and has a price target of $95.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Walkley and Mike Burton have a total average return of 23.3% and 18.6% respectively. Walkley has a success rate of 69.4% and is ranked #3 out of 3590 analysts, while Burton has a success rate of 65.3% and is ranked #166.
Qorvo Inc is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defense applications. Its products include amplifiers, frequency duplexers, modules and among others.