• Qorvo® Announces Fiscal 2024 Fourth Quarter Financial Results

    ソース: Nasdaq GlobeNewswire / 01 5 2024 16:00:36   America/New_York

    GREENSBORO, N.C., May 01, 2024 (GLOBE NEWSWIRE) -- Qorvo® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2024 fourth quarter ended March 30, 2024.

    Strategic Highlights

    • Grew quarterly revenue 49% year-over-year and exceeded the mid-point of revenue guidance by $16 million
    • Completed acquisition of Anokiwave, a leading supplier of high-performance silicon integrated circuits for intelligent active array antennas for Defense, SATCOM, 5G, and other beam forming applications

    On a GAAP basis, revenue for Qorvo’s fiscal 2024 fourth quarter was $941 million, gross margin was 40.6%, operating income was $30 million, and diluted earnings per share was $0.03. On a non-GAAP basis, gross margin was 42.5%, operating income was $147 million, and diluted earnings per share was $1.39.

    Bob Bruggeworth, president and chief executive officer of Qorvo, said, “Qorvo delivered year-over-year revenue growth in the March quarter in each of our three operating segments. There are global macro trends supporting our markets that are increasing customer requirements for efficiency, latency, throughput, and other critical performance metrics where Qorvo delivers significant competitive advantage.

    “During the quarter, we acquired Anokiwave, and we are excited to accelerate the adoption of their technology while developing more highly integrated system solutions that leverage our D&A and power management portfolios. Qorvo continues to expand our technology portfolio to drive growth and diversify our business across markets, customers and product categories.”

    Financial Commentary and Outlook

    Grant Brown, chief financial officer of Qorvo, said, “In fiscal 2024, Qorvo achieved significant content gains with key mobile customers and robust revenue growth in our defense and aerospace business. As we begin fiscal 2025, flagship smartphone ramps and large defense programs are down seasonally, and we expect product mix to trend toward mass market 5G products and associated higher-cost inventories in the June quarter. In the September quarter, we anticipate substantial sequential gross margin improvement. For full-year fiscal 2025, we expect modest revenue growth and margin improvement compared to fiscal 2024. We continue to take proactive steps to reduce capital intensity and structurally enhance our gross margin profile.”

    Qorvo’s current outlook for the June 2024 quarter is:

    • Quarterly revenue of approximately $850 million, plus or minus $25 million
    • Non-GAAP gross margin between 40% and 41%
    • Non-GAAP diluted earnings per share between $0.60 and $0.80

    See “Forward-looking non-GAAP financial measures” below. Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

    Selected Financial Information

    The following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached.

    SELECTED GAAP RESULTS
    (In millions, except for percentages and EPS)
    (Unaudited)
                
     Q4 Fiscal 2024 Q3 Fiscal 2024 Q4 Fiscal 2023 Sequential
    Change    		 Year-over-Year
    Change
    Revenue$941.0  $1,073.9  $632.7  $(132.9) $308.3 
    Gross profit$381.9  $387.9  $114.7  $(6.0) $267.2 
    Gross margin 40.6%  36.1%  18.1%  4.5 ppt  22.5 ppt
    Operating expenses$351.9  $429.4  $303.7  $(77.5) $48.2 
    Operating income (loss)$30.0  $(41.6) $(189.0) $71.6  $219.0 
    Net income (loss)$2.7  $(126.9) $(138.4) $129.6  $141.1 
    Weighted-average diluted shares 97.3   97.2   99.5   0.1   (2.2)
    Diluted EPS$0.03  $(1.31) $(1.39) $1.34  $1.42 
                
                
    SELECTED NON-GAAP RESULTS(1)
    (In millions, except for percentages and EPS)
    (Unaudited)
                
     Q4 Fiscal 2024 Q3 Fiscal 2024 Q4 Fiscal 2023 Sequential
    Change    		 Year-over-Year
    Change
    Revenue$941.0  $1,073.9  $632.7  $(132.9) $308.3 
    Gross profit$400.4  $470.5  $261.2  $(70.1) $139.2 
    Gross margin 42.5%  43.8%  41.3%  (1.3) ppt  1.2 ppt
    Operating expenses$253.2  $234.0  $227.4  $19.2  $25.8 
    Operating income$147.2  $236.5  $33.8  $(89.3) $113.4 
    Net income$135.5  $205.9  $25.7  $(70.4) $109.8 
    Weighted-average diluted shares 97.3   97.8   100.4   (0.5)  (3.1)
    Diluted EPS$1.39  $2.10  $0.26  $(0.71) $1.13 
                        

    (1) Adjusted for stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill impairment, net adjustments related to a long-term capacity reservation agreement, gain or loss on disposal of business and assets, other expense or income, gain or loss on investments, and an adjustment of income taxes.

    SELECTED GAAP RESULTS BY OPERATING SEGMENT
    (In millions, except percentages)
    (Unaudited)
     Q4 Fiscal
    2024    		 Q3 Fiscal
    2024    		 Q4 Fiscal
    2023    		 Sequential
    Change    		 Year-over-
    Year Change
    Revenue         
    HPA$164.6  $118.9  $133.1  38.4% 23.7%
    CSG 122.8   108.9   81.9  12.8% 49.9%
    ACG 653.6   846.1   417.7  (22.8)% 56.5%
    Total revenue$941.0  $1,073.9  $632.7  (12.4)% 48.7%
    Operating income (loss)         
    HPA$31.5  $1.6  $17.7  1,868.8% 78.0%
    CSG (15.2)  (25.6)  (42.2) 40.6% 64.0%
    ACG 134.3   263.8   58.3  (49.1)% 130.4%
    All other(1) (120.6)  (281.4)  (222.8) 57.1% 45.9%
    Total operating income (loss)$30.0  $(41.6) $(189.0) 172.1% 115.9%
    Operating income (loss) as a % of revenue           
    HPA 19.1%  1.3%  13.3% 17.8 ppt 5.8 ppt
    CSG (12.4)  (23.5)  (51.5) 11.1 ppt 39.1 ppt
    ACG 20.5   31.2   14.0  (10.7) ppt 6.5 ppt
    Total operating income (loss) as a % of revenue 3.2%  (3.9)%  (29.9)% 7.1 ppt 33.1 ppt
                

    (1) Includes stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill impairment, net adjustments related to a long-term capacity reservation agreement, gain or loss on disposal of business and assets, other expense or income, and other miscellaneous corporate overhead expenses.

    Non-GAAP Financial Measures

    In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.

    In managing Qorvo's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, and stock-based compensation expense, which may obscure trends in Qorvo's underlying performance.

    We believe that these non-GAAP financial measures offer an additional view of Qorvo's operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo's results of operations and the factors and trends affecting Qorvo's business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

    Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo's operations, are outlined below:

    Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude amortization of intangible assets, stock-based compensation expense, restructuring-related charges and acquisition and integration-related costs. We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin facilitates a useful evaluation of our historical performance and projected costs and the potential for realizing cost efficiencies.  

    We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, and customer relationships, as items arising from pre-acquisition activities, determined at the time of an acquisition, rather than ongoing costs of operating Qorvo’s business. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangible assets is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting and contribute to revenue generation.

    We believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo's ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo's gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to restructuring-related charges and acquisition and integration-related costs do not constitute part of Qorvo's ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

    Non-GAAP gross profit and gross margin also exclude net adjustments related to a long-term capacity reservation agreement. In October 2023, a long-term capacity reservation agreement with a foundry supplier was amended. Pursuant to the amendment, Qorvo is no longer obligated to order silicon wafers from the foundry supplier and the agreement was terminated effective December 31, 2023. Included in the net adjustments to our cost of goods sold for the third quarter of fiscal 2024 is a contract termination fee which we paid during the fourth quarter of fiscal 2024. We believe these net adjustments are not reflective of the performance of our ongoing business.

    Non-GAAP operating expenses, operating income and operating margin. Non-GAAP operating expenses, operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill impairment, restructuring-related charges, net adjustments related to a long-term capacity reservation agreement, (gain) loss on disposal of business and assets and certain other expense (income). We believe that presentation of a measure of operating expenses, operating income and operating margin that excludes amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration-related costs, goodwill impairment, restructuring-related charges, net adjustments related to a long-term capacity reservation agreement, (gain) loss on disposal of business and assets and certain other expense (income) do not constitute part of Qorvo's ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP operating expenses, operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

    Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill impairment, restructuring-related charges, net adjustments related to a long-term capacity reservation agreement, (gain) loss on disposal of business and assets, certain other expense (income), gain or loss on investments, and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating expenses, operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

    Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is calculated as free cash flow as a percentage of revenue. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

    EBITDA. Qorvo adjusts GAAP net income for interest expense, interest income, income tax expense (benefit), depreciation and intangible amortization expense, stock-based compensation and other charges that are not representative of Qorvo's ongoing operations (including goodwill impairment, investment activity, acquisition-related costs and restructuring-related costs and certain net adjustments related to a long-term capacity reservation agreement) when presenting EBITDA. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).

    Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations' use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of equity plus net debt, less certain goodwill.

    Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo's indebtedness by reflecting cash and investments that could be used to repay debt.

    Inventory days on hand. Inventory days on hand is defined as (a) average net inventory for the period, divided by (b) the result of non-GAAP cost of goods sold for the period divided by the number of days in the period.

    Forward-looking non-GAAP financial measures. Our earnings release contains forward-looking free cash flow, gross margin, income tax rate and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration-related costs, restructuring-related charges, gain or loss on disposal of business and assets, goodwill impairment, gain or loss on investments and the provision for income taxes, which could have a potentially significant impact on our future GAAP results.

    Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.

    Qorvo will conduct a conference call at 5:00 p.m. ET today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at the following URL: https://ir.qorvo.com (under “Events & Presentations”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 1-412-317-0088 and using the passcode 8317324. The playback will be available through the close of business May 8, 2024.

    About Qorvo

    Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including consumer electronics, smart home/IoT, automotive, EVs, battery-powered appliances, network infrastructure, and aerospace/defense. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

    Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

    This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "forecast", "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; continued effects of the COVID-19 pandemic; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, including under long-term supply agreements, due to timing of customers' forecasts; our inability to effectively manage or maintain evolving relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions and other strategic investments failing to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches and other similar disruptions; theft, loss or misuse of personal data by or about our employees, customers or third parties; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; and volatility in the price of our common stock. These and other risks and uncertainties, which are described in more detail under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 1, 2023, and Qorvo’s subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

    Financial Tables to Follow
     
    QORVO, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
     Three Months Ended Twelve Months Ended
     March 30, 2024 April 1, 2023 March 30, 2024 April 1, 2023
    Revenue$940,988  $632,703  $3,769,506  $3,569,399 
            
    Costs and expenses:       
    Cost of goods sold 559,131   517,989   2,281,011   2,272,457 
    Research and development 179,883   163,637   682,249   649,841 
    Selling, general and administrative 93,107   82,954   389,140   358,790 
    Other operating expense 78,889   57,105   325,405   105,143 
    Total costs and expenses 911,010   821,685   3,677,805   3,386,231 
            
    Operating income (loss) 29,978   (188,982)  91,701   183,168 
    Interest expense (17,282)  (17,241)  (69,245)  (68,463)
    Other income, net 16,818   7,210   51,104   9,924 
            
    Income (loss) before income taxes 29,514   (199,013)  73,560   124,629 
    Income tax (expense) benefit (26,779)  60,597   (143,882)  (21,477)
    Net income (loss)$2,735  $(138,416) $(70,322) $103,152 
            
            
    Net income (loss) per share, diluted$0.03  $(1.39) $(0.72) $1.00 
            
    Weighted-average outstanding diluted shares 97,335   99,513   97,557   103,019 
                    


    QORVO, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data)
    (Unaudited)
      
     Three Months Ended
     March 30, 2024 December 30, 2023 April 1, 2023
          
    GAAP operating income (loss)$29,978  $(41,569) $(188,982)
    Stock-based compensation expense 21,581   21,755   18,669 
    Amortization of intangible assets 31,187   29,787   32,843 
    Restructuring-related charges 55,535   6,075   81,615 
    Acquisition and integration-related costs 6,596   2,529   2,065 
    Goodwill impairment —   173,414   12,411 
    Net adjustments related to a long-term capacity reservation agreement (13,445)  51,864   71,000 
    Other expense (income) 15,792   (7,333)  4,212 
    Non-GAAP operating income$147,224  $236,522  $33,833 
          
    GAAP net income (loss)$2,735  $(126,938) $(138,416)
    Stock-based compensation expense 21,581   21,755   18,669 
    Amortization of intangible assets 31,187   29,787   32,843 
    Restructuring-related charges 55,535   6,075   81,615 
    Acquisition and integration-related costs 6,596   2,529   2,065 
    Goodwill impairment —   173,414   12,411 
    Net adjustments related to a long-term capacity reservation agreement (13,445)  51,864   71,000 
    Other expense (income) 10,662   (12,252)  2,568 
    Loss on investments 1,805   464   3,564 
    Adjustment of income taxes 18,874   59,161   (60,583)
    Non-GAAP net income$135,530  $205,859  $25,736 
          
    GAAP weighted-average outstanding diluted shares 97,335   97,152   99,513 
    Dilutive stock-based awards —   666   933 
    Non-GAAP weighted-average outstanding diluted shares 97,335   97,818   100,446 
          
    Non-GAAP net income per share, diluted$1.39  $2.10  $0.26 
          


    QORVO, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (Unaudited)
      
     Three Months Ended
    (in thousands, except percentages)March 30, 2024 December 30, 2023 April 1, 2023
    GAAP gross profit/margin$381,857 40.6% $387,878 36.1% $114,71418.1%
    Stock-based compensation expense 3,444 0.3   5,575 0.5   4,1750.7 
    Amortization of intangible assets 26,031 2.8   25,457 2.4   28,1324.5 
    Restructuring-related charges 1,212 0.1   (250)—   43,0046.8 
    Acquisition and integration-related costs 1,281 0.1   1 —   15— 
    Net adjustments related to a long-term capacity reservation agreement (13,445)(1.4)  51,864 4.8   71,00011.2 
    Other expense — —   — —   147— 
    Non-GAAP gross profit/margin$400,380 42.5% $470,525 43.8% $261,18741.3%
                     


     Three Months Ended
    Non-GAAP Operating IncomeMarch 30, 2024
    (as a percentage of revenue) 
      
    GAAP operating income3.2%
    Stock-based compensation expense2.3 
    Amortization of intangible assets3.3 
    Restructuring-related charges5.9 
    Acquisition and integration-related costs0.7 
    Net adjustments related to a long-term capacity reservation agreement(1.4)
    Other expense1.6 
    Non-GAAP operating income15.6%
       


     Three Months Ended
    Free Cash Flow(1)March 30, 2024
    (in millions) 
      
    Net cash provided by operating activities$202.3 
    Purchases of property and equipment (32.7)
    Free cash flow$169.6 
        

    (1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.

    QORVO, INC. AND SUBSIDIARIES
    ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    (In thousands)
    (Unaudited)
     
     Three Months Ended
     March 30, 2024 December 30, 2023 April 1, 2023
    GAAP research and development expense$179,883 $164,329  $163,637
    Less:     
    Stock-based compensation expense 11,812  11,830   10,286
    Acquisition and integration-related costs 1  2   26
    Non-GAAP research and development expense$168,070 $152,497  $153,325
          
     Three Months Ended
     March 30, 2024 December 30, 2023 April 1, 2023
    GAAP selling, general and administrative expense$93,107 $86,914  $82,954
    Less:     
    Stock-based compensation expense 6,291  4,336   4,208
    Amortization of intangible assets 5,156  4,330   4,711
    Acquisition and integration-related costs —  —   7
    Non-GAAP selling, general and administrative expense$81,660 $78,248  $74,028
          
     Three Months Ended
     March 30, 2024 December 30, 2023 April 1, 2023
    GAAP other operating expense$78,889 $178,204  $57,105
    Less:     
    Stock-based compensation expense 34  14   —
    Restructuring-related charges 54,323  6,325   38,611
    Acquisition and integration-related costs 5,314  2,526   2,018
    Goodwill impairment —  173,414   12,411
    Other expense (income) 15,792  (7,333)  4,065
    Non-GAAP other operating expense$3,426 $3,258  $—
          
     Three Months Ended
     March 30, 2024 December 30, 2023 April 1, 2023
    GAAP total operating expense$351,879 $429,447  $303,696
    Less:     
    Stock-based compensation expense 18,137  16,180   14,494
    Amortization of intangible assets 5,156  4,330   4,711
    Restructuring-related charges 54,323  6,325   38,611
    Acquisition and integration-related costs 5,315  2,528   2,050
    Goodwill impairment —  173,414   12,411
    Other expense (income) 15,792  (7,333)  4,065
    Non-GAAP total operating expense$253,156 $234,003  $227,354
              


    QORVO, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
     March 30, 2024 April 1, 2023
    ASSETS   
    Current assets:   
    Cash and cash equivalents$1,029,258 $808,757
    Accounts receivable, net 412,960  304,519
    Inventories 710,555  796,596
    Other current assets 133,983  119,922
    Assets of disposal group held for sale 159,278  —
    Total current assets 2,446,034  2,029,794
        
    Property and equipment, net 870,982  1,149,806
    Goodwill 2,534,601  2,760,813
    Intangible assets, net 509,383  537,703
    Long-term investments 23,252  20,406
    Other non-current assets 170,383  193,381
    Total assets$6,554,635 $6,691,903
        
    LIABILITIES AND STOCKHOLDERS’ EQUITY   
    Current liabilities:   
    Accounts payable and accrued liabilities$589,760 $433,164
    Current portion of long-term debt 438,740  310
    Other current liabilities 113,215  122,289
    Liabilities of disposal group held for sale 88,372  —
    Total current liabilities 1,230,087  555,763
        
    Long-term debt 1,549,272  2,048,073
    Other long-term liabilities 218,904  185,273
    Total liabilities 2,998,263  2,789,109
        
    Stockholders’ equity 3,556,372  3,902,794
    Total liabilities and stockholders’ equity$6,554,635 $6,691,903
          

    At Qorvo®
    Doug DeLieto
    VP, Investor Relations
    1.336.678.7968


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