Sector: Technology|Industry: Semiconductors|Market Cap: $6.82B|Employees: 9K
Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets worldwide. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for defense and aerospace, and 5G and 6G infrastructure markets. The CSG segment supplies connectivity and sensor solutions featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-based sensors. It serves smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points markets. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. It also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. Qorvo, Inc. was founded in 1957 and is headquartered in Greensboro, North Carolina.
Qorvo reported a significant revenue increase of 36.2% year-over-year, reaching $886.7 million, primarily driven by a $230.1 million increase in the Advanced Cellular Group (ACG) segment due to content gains at their largest customer and higher shipments of Android-based smartphones.
Gross margin increased to 37.5% from 35.2% in the prior year, driven by improved factory utilization and lower restructuring-related charges. However, changes in product mix negatively impacted gross margin, indicating potential challenges in optimizing profitability across different product lines.
The company reported operating income of $4.6 million compared to an operating loss of $48.1 million in the prior year, driven by improved gross profit of $103.2 million. This improvement was partially offset by higher operating expenses of $50.5 million, indicating potential areas for cost optimization.