8 January 2016

Qorvo lowers quarterly revenue guidance from $720-730m to $620m due to weak demand for Mobile

Qorvo Inc of Greensboro, NC and Hillsboro, OR, USA, which provides core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications, has lowered its guidance for revenue and earnings for its fiscal third-quarter 2016 (to end-December) compared with the guidance given on 5 November. 

Rather than its original guidance of $720-730m (up about 2.5% on last quarter's $708.3m), Qorvo now expects revenue of about $620m (down 12.5%), due to weaker-than-forecasted demand in the Mobile Products segment.
Operating expenses are expected to decline sequentially from last quarter's $156.8m, reflecting a significant reduction in variable compensation expense. 

During the quarter, Qorvo repurchased about 4.6 million shares of common stock at a total cost of $250m. Qorvo has $750m remaining in its share repurchase program (which was approved in November 2015, and expires on 4 November 2016), and its cash balance at the end of the quarter was over $1bn.

For the March 2016 quarter, Qorvo expects revenue to be approximately flat sequentially. For calendar 2016, it expects above-market revenue growth, based on customer forecasts and existing customer design wins at the firm's largest customers.

Qorvo expects to release fiscal third-quarter 2016 results on 4 February. 

See related items:

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Qorvo announces closing of $1bn senior notes offering

Qorvo's quarterly revenue grows 6% as mobile products growth outweighs 40% drop in wireless infrastructure

Qorvo's quarterly revenue up 46% year-on-year

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

Merger of RFMD and TriQuint as Qorvo now completed

Tags: Qorvo RFMD TriQuint

Visit: www.qorvo.com