Qorvo (QRVO) has reported an 166.34 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $11.85 million, or $0.09 a share in the quarter, compared with $4.45 million, or $0.03 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $170.41 million, or $1.29 a share compared with $183.28 million or $1.22 a share, a year ago. Revenue during the quarter grew 22.07 percent to $864.70 million from $708.34 million in the previous year period. Gross margin for the quarter contracted 358 basis points over the previous year period to 36.64 percent. Total expenses were 94.75 percent of quarterly revenues, down from 97.45 percent for the same period last year. This has led to an improvement of 270 basis points in operating margin to 5.25 percent.
Operating income for the quarter was $45.39 million, compared with $18.04 million in the previous year period.
However, the adjusted operating income for the quarter stood at $196.81 million compared to $194.82 million in the prior year period. At the same time, adjusted operating margin contracted 474 basis points in the quarter to 22.76 percent from 27.50 percent in the last year period.
Bob Bruggeworth, president and chief executive officer of Qorvo, said, "The Qorvo team did an excellent job delivering 22% year-over-year growth and achieving our goal of non-GAAP operating expenses at 20% of sales. At the same time, we made progress advancing core technologies and developing highly integrated Qorvo solutions for large customer opportunities in 2017 and 2018."
For fiscal year 2017, Qorvo forecasts adjusted revenue to be in the range of $800 million to $840 million. The company expects diluted earnings per share to be in the range of $1.15 to $1.35 on adjusted basis.
Debt increases substantially
Qorvo has witnessed an increase in total debt over the last one year. It stood at $988.62 million as on Oct. 01, 2016, up 1,218.17 percent or $913.62 million from $75 million on Oct. 03, 2015. Long-term debt stood at $988.62 million as on Oct. 01, 2016. Total debt was 14.64 percent of total assets as on Oct. 01, 2016, compared with 1.15 percent on Oct. 03, 2015. Debt to equity ratio was at 0.20 as on Oct. 01, 2016, up from 0.01 as on Oct. 03, 2015. Interest coverage ratio deteriorated to 2.92 for the quarter from 27.33 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
