Qorvo® Declares Fiscal 2022 Third Quarter Monetary

GREENSBORO, N.C., Feb. 02, 2022 (GLOBE NEWSWIRE) — Qorvo^® (Nasdaq:QRVO), a number one supplier of revolutionary RF options that join the world, as we speak introduced monetary outcomes for the Firm’s fiscal 2022 third quarter ended January 1, 2022.

On a GAAP foundation, income for Qorvo’s fiscal 2022 third quarter was $1.114 billion, gross margin was 49.2%, working earnings was $296 million and diluted earnings per share was $1.95. On a non-GAAP foundation, gross margin was 52.6%, working earnings was $372 million and diluted earnings per share was $2.98.

Bob Bruggeworth, president and chief govt officer of Qorvo, mentioned, “Qorvo outperformed the midpoint of our steering within the December quarter on income, gross margin and EPS. Sustained year-over-year income development was supported by multiyear secular development drivers in 5G, IoT connectivity, protection and energy. Qorvo is working properly and increasing the markets we serve whereas investing to increase product and expertise management throughout our portfolio.”

Strategic Highlights

• Ramped shipments to Korea-based smartphone OEM in help of flagship and mass-market smartphone launches
• Equipped Qorvo’s first full UWB answer in an Android^® smartphone, together with UWB transceiver and software program stack suitable with different Android units
• Launched a totally built-in module combining Qorvo’s UWB chipset with Nordic^®’s Bluetooth Low Vitality answer to handle a variety of business and enterprise purposes
• Expanded buyer sampling of extremely built-in major path and secondary transmit options for Android 5G smartphones
• Secured new Wi-Fi 7 chip-on-board reference design engagements for cell purposes and started buyer sampling of Wi-Fi 7 FEMs
• Ramped Wi-Fi 6E FEMs enabling Wi-Fi mesh networks for residence and enterprise markets and launched 5 GHz iFEMs that includes BAW filtering for tri-band Wi-Fi mesh networks
• Chosen by base station OEM to produce 3.4-3.8 GHz 8W GaN energy amplifier modules for mMIMO 5G deployments
• Chosen to supply mobile FEM for V2X connectivity for main Europe-based automotive OEM
• Secured design wins to produce on-board chargers and DC-DC converters in help of main automotive OEMs in Europe and Asia
• Signed channel partnership settlement for Qorvo Omnia™ diagnostic check platform distribution and submitted a CLIA waiver utility to the FDA to develop deployment in point-of-care settings

Monetary Commentary and Outlook

Mark Murphy, chief monetary officer of Qorvo, mentioned, “We anticipate to ship sequential development within the March quarter on smartphone launch timing and stronger IDP volumes. On the midpoint of our March steering, we undertaking our full fiscal yr income development to exceed 15%, working margin to develop to over 33%, and earnings per share to develop 25%.”

Qorvo’s present outlook for the March 2022 quarter is:

• Quarterly income of $1.135 billion to $1.165 billion
• Non-GAAP gross margin of roughly 52%
• Non-GAAP diluted earnings per share of $2.94 on the midpoint of steering

Qorvo’s precise quarterly outcomes could differ from these expectations and projections, and such variations could also be materials.

Chosen Monetary Info

The next tables set forth chosen GAAP and non-GAAP monetary data for Qorvo for the intervals indicated. See the extra detailed monetary data for Qorvo, together with reconciliations of GAAP and non-GAAP monetary data, hooked up.

¹ Excludes stock-based compensation expense, amortization of intangible property, acquisition and integration associated prices, loss on property, start-up prices, restructuring associated costs, loss on debt extinguishment, (achieve) loss on investments, different (earnings) expense and an adjustment of earnings taxes.

Non-GAAP Monetary Measures

Along with disclosing monetary outcomes calculated in accordance with United States (U.S.) usually accepted accounting rules (GAAP), this earnings launch comprises some or the entire following non-GAAP monetary measures: (i) non-GAAP gross revenue and gross margin, (ii) non-GAAP working earnings and working margin, (iii) non-GAAP internet earnings, (iv) non-GAAP internet earnings per diluted share, (v) non-GAAP working bills (analysis and growth; promoting, normal and administrative), (vi) free money circulate, (vii) EBITDA, (viii) non-GAAP return on invested capital (ROIC), and (ix) internet debt or optimistic internet money. Every of those non-GAAP monetary measures is both adjusted from GAAP outcomes to exclude sure bills or derived from a number of GAAP measures, that are outlined within the “Reconciliation of GAAP to Non-GAAP Monetary Measures” tables, hooked up, and the “Extra Chosen Non-GAAP Monetary Measures and Reconciliations” tables, hooked up.

In managing Qorvo’s enterprise on a consolidated foundation, administration develops an annual working plan, which is authorised by our Board of Administrators, utilizing non-GAAP monetary measures. In growing and monitoring efficiency towards this plan, administration considers the precise or potential impacts on these non-GAAP monetary measures from actions taken to cut back prices with the purpose of accelerating gross margin and working margin. As well as, administration depends upon these non-GAAP monetary measures to evaluate whether or not analysis and growth efforts are at an acceptable stage, and when making selections about product spending, administrative budgets, and different working bills. Additionally, we consider that non-GAAP monetary measures present helpful supplemental data to buyers and allow buyers to investigate the outcomes of operations in the identical method as administration. We have now chosen to supply this supplemental data to allow buyers to carry out further comparisons of our working outcomes, to evaluate our liquidity and capital place and to investigate monetary efficiency excluding the impact of bills unrelated to operations, sure non-cash bills and stock-based compensation expense, which can obscure traits in Qorvo’s underlying efficiency.

We consider that these non-GAAP monetary measures supply a further view of Qorvo’s operations that, when coupled with the GAAP outcomes and the reconciliations to corresponding GAAP monetary measures, present a extra full understanding of Qorvo’s outcomes of operations and the components and traits affecting Qorvo’s enterprise. Nevertheless, these non-GAAP monetary measures must be thought of as a complement to, and never as an alternative choice to, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for utilizing these non-GAAP monetary measures, in addition to their affect on the presentation of Qorvo’s operations, are outlined under:

Non-GAAP gross revenue and gross margin. Non-GAAP gross revenue and gross margin exclude amortization of intangible property, stock-based compensation expense and sure non-cash bills. We consider that exclusion of those prices in presenting non-GAAP gross revenue and gross margin facilitates a helpful analysis of our historic efficiency and projected prices and the potential for realizing value efficiencies.

We view amortization of acquisition-related intangible property, such because the amortization of the price related to an acquired firm’s analysis and growth efforts, commerce names, and buyer relationships, as gadgets arising from pre-acquisition actions, decided on the time of an acquisition, reasonably than ongoing prices of working Qorvo’s enterprise. Whereas these intangible property are frequently evaluated for impairment, amortization of the price of bought intangible property is a static expense, which isn’t sometimes affected by operations throughout any explicit interval. Though we exclude the amortization of bought intangible property from these non-GAAP monetary measures, administration believes that it will be significant for buyers to grasp that such intangible property have been recorded as a part of buy value accounting and contribute to income era.

We consider that presentation of non-GAAP gross revenue and gross margin and different non-GAAP monetary measures that exclude the affect of stock-based compensation expense assists administration and buyers in evaluating the period-over-period efficiency of Qorvo’s ongoing operations as a result of (i) the bills are non-cash in nature, and (ii) though the scale of the grants is inside our management, the quantity of expense varies relying on components reminiscent of short-term fluctuations in inventory value volatility and prevailing rates of interest, which will be unrelated to the operational efficiency of Qorvo in the course of the interval wherein the expense is incurred and usually are exterior the management of administration. Furthermore, we consider that the exclusion of stock-based compensation expense in presenting non-GAAP gross revenue and gross margin and different non-GAAP monetary measures is helpful to buyers to grasp the affect of the expensing of stock-based compensation to Qorvo’s gross revenue and gross margins and different monetary measures compared to prior intervals. We additionally consider that the changes to revenue and margin associated to sure non-cash bills don’t represent a part of Qorvo’s ongoing operations and subsequently the exclusion of this stuff gives administration and buyers with higher visibility into the precise income and precise prices required to generate revenues over time and facilitates a helpful analysis of our historic and projected efficiency. We consider disclosure of non-GAAP gross revenue and gross margin has financial substance as a result of the excluded bills don’t characterize persevering with money expenditures and, as described above, we have now little management over the timing and quantity of the bills in query.

Non-GAAP working earnings and working margin. Non-GAAP working earnings and working margin exclude stock-based compensation expense, amortization of intangible property, acquisition and integration associated prices, loss on property, start-up prices, restructuring associated costs and sure non-cash bills. We consider that presentation of a measure of working earnings and working margin that excludes amortization of intangible property and stock-based compensation expense is helpful to each administration and buyers for a similar causes as described above with respect to our use of non-GAAP gross revenue and gross margin. We consider that acquisition and integration associated prices, loss on property, start-up prices, restructuring associated costs and sure non-cash bills don’t represent a part of Qorvo’s ongoing operations and subsequently, the exclusion of those prices gives administration and buyers with higher visibility into the precise prices required to generate revenues over time and facilitates a helpful analysis of our historic and projected efficiency. We consider disclosure of non-GAAP working earnings and working margin has financial substance as a result of the excluded bills are both unrelated to ongoing operations or don’t characterize present money expenditures.

Non-GAAP internet earnings and non-GAAP internet earnings per diluted share. Non-GAAP internet earnings and non-GAAP internet earnings per diluted share exclude the results of stock-based compensation expense, amortization of intangible property, acquisition and integration associated prices, loss on property, start-up prices, restructuring associated costs and sure non-cash bills, loss on debt extinguishment, (achieve) loss on investments, different (earnings) expense and likewise mirror an adjustment of earnings taxes. The earnings tax adjustment primarily represents using analysis and growth tax credit score carryforwards, deferred tax expense (profit) gadgets not affecting taxes payable, changes associated to the deemed and precise repatriation of historic overseas earnings, non-cash expense (profit) associated to unsure tax positions and different gadgets unrelated to the present fiscal yr or that aren’t indicative of our ongoing enterprise operations. We consider that presentation of measures of internet earnings and internet earnings per diluted share that exclude this stuff is helpful to each administration and buyers for the explanations described above with respect to non-GAAP gross revenue and gross margin and non-GAAP working earnings and working margin. We consider disclosure of non-GAAP internet earnings and non-GAAP internet earnings per diluted share has financial substance as a result of the excluded bills are both unrelated to ongoing operations or don’t characterize present money expenditures.

Non-GAAP working bills (analysis and growth and promoting, normal and administrative). Non-GAAP analysis and growth and promoting, normal and administrative bills exclude stock-based compensation expense, amortization of intangible property and sure non-cash bills (primarily acquisition and integration associated prices). We consider that presentation of measures of those working bills that exclude amortization of intangible property and stock-based compensation expense is helpful to each administration and buyers for a similar causes as described above with respect to our use of non-GAAP gross revenue and gross margin. We consider that acquisition and integration associated prices and sure non-cash bills don’t represent a part of Qorvo’s ongoing operations and subsequently, the exclusion of those prices gives administration and buyers with higher visibility into the precise prices required to generate revenues over time and facilitates a helpful analysis of our historic and projected efficiency. We consider disclosure of those non-GAAP working bills has financial substance as a result of the excluded bills are both unrelated to ongoing operations or don’t characterize present money expenditures.

Free money circulate. Qorvo defines free money circulate as internet money offered by working actions in the course of the interval minus property and tools expenditures made in the course of the interval, and free money circulate margin is calculated as free money circulate as a proportion of income. We use free money circulate as a supplemental monetary measure in our analysis of liquidity and monetary energy. Administration believes that this measure is helpful as an indicator of our skill to service our debt, meet different fee obligations and make strategic investments. Free money circulate must be thought of along with, reasonably than as an alternative choice to, internet earnings as a measure of our efficiency and internet money offered by working actions as a measure of our liquidity. Moreover, our definition of free money circulate is restricted, in that it doesn’t characterize residual money flows obtainable for discretionary expenditures resulting from the truth that the measure doesn’t deduct the funds required for debt service and different contractual obligations. Due to this fact, we consider you will need to view free money circulate as a measure that gives supplemental data to our total assertion of money flows.

EBITDA. Qorvo defines EBITDA as earnings earlier than curiosity expense and curiosity earnings, earnings tax expense (profit), depreciation and intangible amortization. Administration believes that this measure is helpful to judge our ongoing operations and as a normal indicator of our working money circulate (together with a money circulate assertion which additionally contains amongst different gadgets, adjustments in working capital and the impact of non-cash costs).

Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP monetary measure that administration believes gives helpful supplemental data for administration and the investor by measuring the effectiveness of our operations’ use of invested capital to generate income. We use ROIC to trace how a lot worth we’re creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP working earnings, internet of an adjustment for earnings taxes (as described above), by common invested capital. Common invested capital is calculated by subtracting the common of the start stability and the ending stability of fairness plus internet debt, much less sure goodwill.

Web debt or optimistic internet money. Web debt or optimistic internet money is outlined as unrestricted money, money equivalents and short-term investments minus any borrowings beneath our credit score facility and the principal stability of our senior unsecured notes. Administration believes that internet debt or optimistic internet money gives helpful data relating to the extent of Qorvo’s indebtedness by reflecting money and investments that may very well be used to repay debt.

Ahead-looking non-GAAP monetary measures. Our earnings launch comprises forward-looking free money circulate, gross margin, earnings tax price and diluted earnings per share. We offer these non-GAAP measures to buyers on a potential foundation for a similar causes (set forth above) that we offer them to buyers on a historic foundation. We’re unable to supply a reconciliation of the forward-looking non-GAAP monetary measures to probably the most straight comparable forward-looking GAAP monetary measures with out unreasonable effort resulting from variability and problem in making correct projections for gadgets that will be required to be included within the GAAP measures, reminiscent of stock-based compensation, acquisition and integration associated prices, restructuring associated costs, asset impairments and the supply for earnings taxes. We consider such reconciliations would indicate a level of precision that will be complicated or deceptive to buyers.

Limitations of non-GAAP monetary measures. The first materials limitations related to using non-GAAP monetary measures as an analytical software in comparison with probably the most straight comparable GAAP monetary measures are these non-GAAP monetary measures (i) is probably not corresponding to equally titled measures utilized by different corporations in our business, and (ii) exclude monetary data that some could think about essential in evaluating our efficiency, thus limiting their usefulness as a comparative software. We compensate for these limitations by offering full disclosure of the variations between these non-GAAP monetary measures and the corresponding GAAP monetary measures, together with a reconciliation of the non-GAAP monetary measures to the corresponding GAAP monetary measures, to allow buyers to carry out their very own evaluation of our gross revenue and gross margin, working bills, working earnings, internet earnings, internet earnings per diluted share and internet money offered by working actions. We additional compensate for the restrictions of our use of non-GAAP monetary measures by presenting the corresponding GAAP measures extra prominently.

Qorvo will conduct a convention name at 5:00 p.m. ET as we speak to debate as we speak’s press launch. The convention name will likely be broadcast stay over the Web and will be accessed by any celebration at http://www.qorvo.com (beneath “Buyers”). A phone playback of the convention name will likely be obtainable roughly two hours after the decision’s completion and will be accessed by dialing 719-457-0820 and utilizing the passcode 5371000. The playback will likely be obtainable by way of the shut of enterprise February 9, 2022.

About Qorvo

Qorvo (Nasdaq:QRVO) makes a greater world attainable by offering revolutionary Radio Frequency (RF) options on the heart of connectivity. We mix product and expertise management, systems-level experience and world manufacturing scale to shortly resolve our clients’ most complicated technical challenges. Qorvo serves various high-growth segments of huge world markets, together with superior wi-fi units, wired and wi-fi networks and protection radar and communications. We additionally leverage distinctive aggressive strengths to advance 5G networks, cloud computing, the Web of Issues, and different rising purposes that develop the worldwide framework interconnecting folks, locations and issues. Go to www.qorvo.com to learn the way Qorvo connects the world.

Qorvo is a registered trademark of Qorvo, Inc. within the U.S. and in different nations. All different emblems are the property of their respective homeowners.

This press launch contains “forward-looking statements” throughout the which means of the protected harbor provisions of the Non-public Securities Litigation Reform Act of 1995. These forward-looking statements embody, however should not restricted to, statements about our plans, goals, representations and contentions, and should not historic info and sometimes are recognized by use of phrases reminiscent of “could,” “will,” “ought to,” “may,” “anticipate,” “plan,” “anticipate,” “consider,” “estimate,” “predict,” “potential,” “proceed” and related phrases, though some forward-looking statements are expressed in another way. Try to be conscious that the forward-looking statements included herein characterize administration’s present judgment and expectations, however our precise outcomes, occasions and efficiency may differ materially from these expressed or implied by forward-looking statements. We don’t intend to replace any of those forward-looking statements or publicly announce the outcomes of any revisions to those forward-looking statements, aside from as is required beneath U.S. federal securities legal guidelines. Our enterprise is topic to quite a few dangers and uncertainties, together with these regarding fluctuations in our working outcomes; our substantial dependence on growing new merchandise and reaching design wins; our dependence on a number of giant clients for a considerable portion of our income; the COVID-19 pandemic materially and adversely affecting our monetary situation and outcomes of operations; a lack of income if protection and aerospace contracts are canceled or delayed; our dependence on third events; dangers associated to gross sales by way of distributors; dangers related to the operation of our manufacturing services; enterprise disruptions; poor manufacturing yields; elevated stock dangers and prices resulting from timing of buyer forecasts; our incapacity to successfully handle or keep evolving relationships with platform suppliers; our skill to proceed to innovate in a really aggressive business; underutilization of producing services because of business overcapacity; unfavorable adjustments in rates of interest, pricing of sure valuable metals, utility charges and overseas foreign money trade charges; our acquisitions and different strategic investments failing to attain monetary or strategic goals; our skill to draw, retain and inspire key workers; guarantee claims, product remembers and product legal responsibility; adjustments in our efficient tax price; adjustments within the favorable tax standing of sure of our subsidiaries; enactment of worldwide or home tax laws, or adjustments in regulatory steering; dangers related to environmental, well being and security laws, and local weather change; dangers from worldwide gross sales and operations; financial regulation in China; adjustments in authorities commerce insurance policies, together with imposition of tariffs and export restrictions; we could not have the ability to generate adequate money to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our mental property portfolio; claims of infringement of third-party mental property rights; safety breaches and different related disruptions compromising our data; theft, loss or misuse of non-public information by or about our workers, clients or third events; provisions in our governing paperwork and Delaware legislation could discourage takeovers and enterprise combos that our stockholders may think about to be of their greatest pursuits; and volatility within the value of our widespread inventory. These and different dangers and uncertainties, that are described in additional element in Qorvo’s most up-to-date Annual Report on Kind 10-Okay and in different reviews and statements filed with the Securities and Alternate Fee, may trigger precise outcomes and developments to be materially completely different from these expressed or implied by any of those forward-looking statements.

Monetary Tables to Comply with

QORVO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In hundreds, besides per share information)
(Unaudited)

QORVO, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In hundreds, besides per share information)
(Unaudited)

QORVO, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

⁽¹⁾ Free Money Movement is calculated as internet money offered by working actions minus property and tools expenditures.

QORVO, INC. AND SUBSIDIARIES
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In hundreds)
(Unaudited)

QORVO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In hundreds)
(Unaudited)

At Qorvo^®
Doug DeLieto
VP, Investor Relations
1.336.678.7968