16 March 2020
Skyworks and Qorvo reduce March-quarter guidance by about 6% due to impact of COVID-19
Last week, both Skyworks Solutions Inc of Woburn, MA, USA (which manufactures analog and mixed-signal semiconductors) and Qorvo Inc of Greensboro, NC, USA (which provides core technologies and RF solutions for mobile, infrastructure and defense applications) reduced their March-quarter financial guidance in response to the global spread of the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).
Reflecting the unanticipated impact that the COVID-19 outbreak is having on the business environment, for its fiscal second-quarter 2020 (ending 27 March) its Skyworks has reduced its guidance for revenue by about 5.6% from $800-820m (provided on 23 January) to $760-770m, and for non-GAAP diluted earnings per share from $1.46 to $1.34.
“Although COVID-19 has caused no significant disruption within Skyworks’ manufacturing operations to date, the current demand environment for our products has been negatively impacted by interruptions in global supply chains,” says president & CEO Liam K. Griffin. “Despite this, we remain upbeat about our design-win momentum and our ability to deliver strong profitability and cash flow,” he adds. “As we navigate these challenges, we continue to focus on the health and safety of all our employees, customers and partners worldwide.”
For its fiscal fourth-quarter 2020 (ending 28 March), Qorvo has reduced its guidance for revenue by $50m (6%), from $800-840m (provided on 29 January) to $770m. “The novel coronavirus (COVID-19) has impacted the smartphone supply chain and customer demand more than anticipated,” says the firm. However, given the uncertainty of the magnitude, duration and geographic reach of the outbreak, the full impact of COVID-19 remains difficult to forecast, it adds.