By Lillian Johnson – Reporter, Triad Business Journal
Feb 7, 2023
Qorvo (Nasdaq: QRVO), the Greensboro-based semiconductor company, reported a decrease in revenue for its third quarter of its 2023 fiscal year as the company navigates what CEO Bob Bruggeworth calls a “challenging environment.”

The company – which is the third largest public company in the Triad by market cap as of May 2022 – had revenue of $743 million for its third quarter ending December 31, 2022, down approximately $414.8 million from the previous quarter.

Qorvo lost $15.9 million, or $0.16 per share, in the quarter but did beat Wall Street's expectations for earnings (75 cents per share vs. forecast of 64 cents) ) and revenue (forecast at $727.2 million).

“The Qorvo team is operating well in navigating a challenging environment and taking actions to position the company for growth and improved performance. We are introducing best-in-class products and technologies, and our customers are recognizing us with design wins, quality awards and new and expanded programs,” Bruggeworth said last week in announcing the Q3 results.

On a non-GAAP basis, gross margin was 40.9% and operating income was $99 million and diluted . On a GAAP basis, Qorvo’s gross margin in Q3 was 36.1%, down from 46.5% the previous quarter. Operating income was down significantly to under $9 million from over $261 million in Q2 FY2023.

“In the December quarter, channel inventories declined, and we expect them to decline this quarter. In 2023 and beyond, the secular trends in our businesses remain strong,” Bruggeworth added. “Customers increasingly require higher levels of performance, integration and functional density to deliver successive improvements in next-generation products.”

Qorvo reported a variety of strategic highlights for Q3, such as expanding a state-of-the-art heterogeneous integrated packaging (SHIP) government contract; being selected by North American Android OEM as a supplier to support 2023 smartphone launches; and beginning production ramp of multiple components in Korea-based smartphone OEM’s flagship phone.

In December, the company received the Most Respected Public Semiconductor Company Award in 2022 from the Global Semiconductor Alliance (GSA). The award is known globally as one of the most prestigious semiconductor awards.

Qorvo also received Honor’s 2022 Golden Supplier Award and earned several Vivo 2022 quality awards.

“We are encouraged by the channel inventory consumption we saw in the December quarter, and we expect channel inventories will continue to be consumed in the March quarter,” said CFO Grant Brown. “In addition to ongoing alignment of supply and demand, we expect unit volumes across our businesses will recover alter this year, and we have secured content gains in large customer programs, all of which will support improved financial performance.”