Qorvo, Inc. (QRVO) Bundle
A Brief History of Qorvo, Inc.
Company Overview
Qorvo, Inc. is a leading provider of radio frequency (RF) solutions for mobile, infrastructure, and aerospace/defense applications. The company was formed in 2015 through the merger of RF Micro Devices and TriQuint Semiconductor. As of 2024, Qorvo operates in several segments, including Advanced Cellular Group (ACG), High Performance Analog (HPA), and Connectivity and Sensors Group (CSG).
Financial Performance
For the six months ended September 28, 2024, Qorvo reported total revenue of $1.933 billion, compared to $1.755 billion for the same period in 2023, marking a significant increase of approximately 10.2% year-over-year.
| Period | Total Revenue (in millions) | Net Income (Loss) (in millions) | Operating Income (Loss) (in millions) |
|---|---|---|---|
| Six Months Ended September 28, 2024 | $1,933 | $(17) | $14 |
| Six Months Ended September 30, 2023 | $1,755 | $54 | $103 |
Revenue Breakdown by Segment
The revenue generated from Qorvo’s major operating segments for the three months ended September 28, 2024, is detailed below:
| Segment | Revenue (in millions) | Operating Income (Loss) (in millions) |
|---|---|---|
| Advanced Cellular Group (ACG) | $751 | $215 |
| High Performance Analog (HPA) | $148 | $13 |
| Connectivity and Sensors Group (CSG) | $147 | $(9) |
Market Trends and Developments
In 2024, Qorvo has faced challenges such as increased competition and pricing pressures, particularly in the mobile RF market. Despite these challenges, the company has seen growth in its ACG segment, driven by higher demand for 5G technology and automotive applications.
Stock Performance and Share Repurchases
As of September 28, 2024, Qorvo’s stock repurchase program has authorized $1.099 billion for future repurchases. During the six months ended September 28, 2024, the company repurchased approximately 2.0 million shares for approximately $207.5 million.
| Period | Shares Repurchased (in millions) | Amount Spent (in millions) |
|---|---|---|
| Six Months Ended September 28, 2024 | 2.0 | $207.5 |
| Six Months Ended September 30, 2023 | 2.0 | $201.2 |
Debt Obligations
As of September 28, 2024, Qorvo has outstanding debt including $412.5 million in 2024 Notes, $824.5 million in 2029 Notes, and $700 million in 2031 Notes. The company reported interest expenses of $24.3 million for the three months ended September 28, 2024.
| Debt Type | Principal Amount (in millions) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| 2024 Notes | $500.0 | 1.750 | Dec 15, 2024 |
| 2029 Notes | $850.0 | 4.375 | Oct 15, 2029 |
| 2031 Notes | $700.0 | 3.375 | Apr 1, 2031 |
Restructuring Initiatives
In 2024, Qorvo initiated a restructuring plan to improve operational efficiencies, leading to a goodwill impairment charge of $96.5 million for the six months ended September 28, 2024. The restructuring efforts included streamlining operations and focusing on core competencies.
Global Operations and Market Presence
Qorvo operates globally, with significant revenue generated from the United States and Asia. For the three months ended September 28, 2024, revenue by geographic region was as follows:
| Region | Revenue (in millions) |
|---|---|
| United States | $656.6 |
| China | $151.8 |
| Other Asia | $113.2 |
| Europe | $22.7 |
Qorvo, Inc. continues to adapt to changing market demands and technological advancements, positioning itself as a key player in the RF solutions market as of 2024.
A Who Owns Qorvo, Inc. (QRVO)
Shareholder Composition
As of 2024, the ownership structure of Qorvo, Inc. (QRVO) is characterized by a mix of institutional and retail investors. The largest shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 85.7% | 81,000,000 |
| Retail Investors | 14.3% | 13,600,000 |
| Top 5 Institutional Shareholders | ||
| Vanguard Group, Inc. | 8.7% | 8,300,000 |
| BlackRock, Inc. | 8.5% | 8,200,000 |
| State Street Corporation | 6.5% | 6,300,000 |
| Invesco Ltd. | 4.3% | 4,100,000 |
| Fidelity Management & Research Company | 3.1% | 3,000,000 |
Recent Financial Performance
Qorvo's recent financial performance highlights include:
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $1,046,509,000 | $1,103,493,000 |
| Net Income (Loss) | ($17,435,000) | $97,461,000 |
| Operating Income | $9,675,000 | $151,428,000 |
| Cash and Cash Equivalents | $1,096,500,000 | $1,029,300,000 |
| Total Debt | $1,961,423,000 | $1,988,012,000 |
Stock Repurchase Program
In 2024, Qorvo continued its stock repurchase program, with significant activity noted:
| Period | Shares Repurchased | Total Cost |
|---|---|---|
| First Half 2024 | 2,000,000 | $207,500,000 |
| Remaining Authorization (as of September 28, 2024) | $1,098,700,000 |
Market Capitalization
As of September 28, 2024, Qorvo's market capitalization is approximately:
| Market Capitalization | Value |
|---|---|
| Market Cap | $3,000,000,000 |
Key Financial Ratios
Selected financial ratios as of Q2 2024 include:
| Financial Ratio | Value |
|---|---|
| Debt to Equity Ratio | 0.57 |
| Current Ratio | 1.9 |
| Return on Equity (ROE) | (0.51)% |
Qorvo, Inc. (QRVO) Mission Statement
As of 2024, Qorvo, Inc. is committed to delivering innovative RF solutions that enable a more connected world. The company focuses on providing advanced technology solutions that enhance connectivity and improve performance across various applications, including mobile devices, automotive, and the Internet of Things (IoT). Qorvo’s mission emphasizes sustainability, operational excellence, and fostering collaboration with customers to drive technological advancements and market leadership.
Financial Performance Overview
Qorvo reported significant financial metrics for the second quarter of fiscal 2025, detailing revenue trends and operational results across its segments. Below is a summary of key financial figures:
| Metric | Q2 2024 | Q2 2023 | Change | Percentage Change |
|---|---|---|---|---|
| Total Revenue | $1,046,509,000 | $1,103,493,000 | $(56,984,000) | (5.2%) |
| Gross Profit | $445,306,000 | $489,690,000 | $(44,384,000) | (9.1%) |
| Operating Income | $9,675,000 | $151,428,000 | $(141,753,000) | (93.6%) |
| Net (Loss) Income | $(17,435,000) | $97,461,000 | $(114,896,000) | (117.9%) |
| Net Loss Per Share (Diluted) | $(0.18) | $0.99 | $(1.17) | (118.2%) |
| Cash Flow from Operations | $127,800,000 | $93,000,000 | $34,800,000 | 37.4% |
Segment Analysis
Qorvo operates through multiple segments, each contributing to its overall mission and financial performance. The following table summarizes the revenue and operating income for the segments as of the second quarter of fiscal 2025:
| Segment | Q2 Revenue (in thousands) | Q2 Operating Income (in thousands) | Change in Revenue | Change in Operating Income |
|---|---|---|---|---|
| Advanced Cellular Group (ACG) | $751,436 | $215,057 | $(98,631) | $(69,748) |
| High Performance Analog (HPA) | $148,251 | $13,066 | $(1,553) | $(12,380) |
| Connectivity and Sensors Group (CSG) | $146,822 | $(8,974) | $43,200 | $18,751 |
Cash and Liquidity Position
As of September 28, 2024, Qorvo reported a strong liquidity position with total cash and cash equivalents amounting to approximately $1,096.5 million. The company also highlighted its working capital of $1,198.7 million, demonstrating its ability to meet short-term obligations.
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $1,096,500 |
| Working Capital | $1,198,700 |
| Debt (Current Portion) | $412,500 |
Recent Strategic Initiatives
In fiscal 2025, Qorvo initiated a restructuring plan aimed at optimizing its operations and focusing on core growth areas. This included a review of its silicon carbide power device business, resulting in a goodwill impairment charge of approximately $96.5 million. The restructuring is part of Qorvo's broader strategy to enhance operational efficiency and align with market demands.
How Qorvo, Inc. (QRVO) Works
Company Overview
Qorvo, Inc. (NASDAQ: QRVO) is a global leader in RF solutions for mobile, infrastructure, and aerospace/defense applications. The company operates through two primary segments: the Advanced Cellular Group (ACG) and the High Performance Analog (HPA) segment, along with the Connectivity and Sensors Group (CSG).
Financial Performance
As of September 28, 2024, Qorvo's consolidated revenue was $1,046,509,000, a decrease of 5.2% from $1,103,493,000 for the same period in 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (Q2 2025) | Revenue (Q2 2024) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Advanced Cellular Group | $751,436 | $850,067 | $(98,631) | (11.6)% |
| High Performance Analog | $148,251 | $149,804 | $(1,553) | (1.0)% |
| Connectivity and Sensors Group | $146,822 | $103,622 | $43,200 | 41.7% |
Operating Income and Expenses
For the three months ended September 28, 2024, Qorvo reported an operating income of $9,675,000, a significant decrease from $151,428,000 for the same quarter in 2023. The increase in operating expenses was attributed to:
- Research and Development: $201,050,000 (up from $174,947,000)
- Selling, General and Administrative: $107,760,000 (up from $103,696,000)
- Goodwill Impairment: $96,458,000 (up from $48,000,000)
- Other Operating Expense: $30,363,000 (up from $11,619,000)
Net Income and Earnings Per Share
Qorvo recorded a net loss of $17,435,000 for the three months ended September 28, 2024, compared to a net income of $97,461,000 for the same period in the prior year. The losses resulted in a net loss per share of:
- Basic: $(0.18)
- Diluted: $(0.18)
Cash Flow and Liquidity
As of September 28, 2024, Qorvo had cash and cash equivalents amounting to $1,096,500,000. The company's working capital stood at approximately $1,198,700,000. Net cash provided by operating activities was $208,931,000 for the six months ended September 28, 2024.
Debt Obligations
Qorvo's outstanding debt includes:
- 2024 Notes: $412,500,000 remaining principal
- 2029 Notes: $350,000,000 aggregate principal
Geographic Revenue Distribution
The revenue distribution by geographic region for the three months ended September 28, 2024, is as follows:
| Region | Revenue ($ thousands) |
|---|---|
| United States | $656,610 |
| China | $151,763 |
| Other Asia | $113,185 |
| Taiwan | $102,298 |
| Europe | $22,653 |
Restructuring Initiatives
In fiscal 2025, Qorvo initiated restructuring efforts to streamline operations, including a goodwill impairment charge of $96.5 million related to its silicon carbide power device business.
Research and Development Investments
Qorvo continues to invest heavily in R&D, with expenditures reaching $388,652,000 for the six months ended September 28, 2024, reflecting a 15% increase compared to the previous year.
Stockholder Equity
As of September 28, 2024, Qorvo's total stockholders' equity was $3,410,169,000, down from $3,556,372,000 as of March 30, 2024.
How Qorvo, Inc. (QRVO) Makes Money
Revenue Segments
Qorvo generates revenue primarily through three operating segments: Advanced Cellular Group (ACG), High Performance Analog (HPA), and Connectivity and Sensors Group (CSG).
| Operating Segment | Q1 2024 Revenue (in $ thousands) | Q1 2023 Revenue (in $ thousands) | Dollar Change | Percentage Change |
|---|---|---|---|---|
| Advanced Cellular Group (ACG) | 751,436 | 850,067 | (98,631) | (11.6)% |
| High Performance Analog (HPA) | 148,251 | 149,804 | (1,553) | (1.0)% |
| Connectivity and Sensors Group (CSG) | 146,822 | 103,622 | 43,200 | 41.7% |
Financial Performance Overview
For the six months ending September 28, 2024, Qorvo reported total revenue of $1,933,180,000, representing a 10.2% increase from $1,754,657,000 in the same period of 2023. The cost of goods sold for this period was $1,155,570,000, leading to a gross profit of $777,610,000.
| Financial Metric | Q2 2024 (in $ thousands) | Q2 2023 (in $ thousands) | Change |
|---|---|---|---|
| Total Revenue | 1,933,180 | 1,754,657 | 178,523 |
| Cost of Goods Sold | 1,155,570 | 1,035,897 | 119,673 |
| Gross Profit | 777,610 | 718,760 | 58,850 |
Operating Income and Expenses
Qorvo's operating income for the six months ended September 28, 2024, was $14,281,000, a significant decrease from $103,292,000 in the previous year. This decline is attributed to higher operating expenses, which increased to $763,329,000, compared to $615,468,000 in the same period of 2023.
| Operating Expense Category | Q2 2024 (in $ thousands) | Q2 2023 (in $ thousands) | Change |
|---|---|---|---|
| Research and Development | 388,652 | 338,037 | 50,615 |
| Selling, General, and Administrative | 222,683 | 209,119 | 13,564 |
| Goodwill Impairment | 96,458 | 48,000 | 48,458 |
Geographic Revenue Distribution
Qorvo's revenue is geographically diversified, with significant contributions from various regions:
| Region | Q1 2024 Revenue (in $ thousands) | Q1 2023 Revenue (in $ thousands) |
|---|---|---|
| United States | 656,610 | 699,288 |
| China | 151,763 | 189,900 |
| Other Asia | 113,185 | 119,395 |
| Taiwan | 102,298 | 66,162 |
| Europe | 22,653 | 28,748 |
Cash Flow and Liquidity
As of September 28, 2024, Qorvo reported working capital of approximately $1,198.7 million, including cash and cash equivalents of $1,096.5 million. The net cash provided by operating activities for the six months ended September 28, 2024, was $208.9 million, compared to $137.9 million for the same period in 2023.
| Cash Flow Metric | Q2 2024 (in $ thousands) | Q2 2023 (in $ thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 208,931 | 137,898 |
| Cash and Cash Equivalents | 1,096,500 | 1,029,300 |
| Working Capital | 1,198,700 | 1,215,900 |
Recent Developments
In fiscal 2025, Qorvo initiated a restructuring initiative, resulting in significant charges, including a goodwill impairment charge of $96.5 million. This initiative reflects the company’s strategy to streamline operations and focus on core growth areas.
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Article updated on 8 Nov 2024
Resources:
- Qorvo, Inc. (QRVO) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Qorvo, Inc. (QRVO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Qorvo, Inc. (QRVO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.