Qorvo, Inc. (QRVO) swung to a net profit for the quarter ended Apr. 01, 2017. The company has made a net profit of $55.91 million, or $ 0.43 a share in the quarter, against a net loss of $24.20 million, or $0.18 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $111.75 million, or $0.85 a share compared with $142.64 million or $1.04 a share, a year ago.
Revenue during the quarter grew 5.74 percent to $642.99 million from $608.07 million in the previous year period. Gross margin for the quarter contracted 579 basis points over the previous year period to 36.02 percent. Operating margin for the quarter stood at negative 3.80 percent as compared to a positive 1.39 percent for the previous year period.
Operating loss for the quarter was $24.46 million, compared with an operating income of $8.48 million in the previous year period.
However, the adjusted operating income for the quarter stood at $133.42 million compared to $160.57 million in the prior year period. At the same time, adjusted operating margin contracted 566 basis points in the quarter to 20.75 percent from 26.41 percent in the last year period.
"For fiscal year 2017, Qorvo delivered revenue of $3 billion, up 16% year-over-year, with 23% growth in IDP and 14% growth in Mobile Products. We are very proud of what the team achieved, and we expect continued strong revenue growth and margin expansion in fiscal year 2018," said Bob Bruggeworth, president and chief executive officer of Qorvo. "In the March quarter, we continued to extend our product and technology leadership. We collaborated with all major infrastructure OEMs on next-generation 4G and pre-5G macro base station GaN PAs, we supported 1 Gbps throughput in the ZTE Gigabit smartphone, we supplied the industry's first 5G RF front end in collaboration with Intel, and we achieved full certification of the first single-placement integrated module covering low, mid and high bands on a MediaTek baseband."
For the first-quarter, Qorvo, Inc. forecasts revenue to be in the range of $610 million to $650 million. It expects diluted earnings per share to be in the range of $0.70 to $0.90 for the same period.
Working capital declines
Qorvo, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,042.78 million as at Apr. 01, 2017, down 8.16 percent or $92.63 million from $1,135.41 million on Apr. 02, 2016. Current ratio was at 3.49 as on Apr. 01, 2017, down from 4.04 on Apr. 02, 2016.
Debt remains almost stable
Total debt of Qorvo, Inc. remained almost stable for the quarter at $989.15 million, when compared with the last year period. Total debt was 15.17 percent of total assets as on Apr. 01, 2017, compared with 14.98 percent on Apr. 02, 2016. Debt to equity ratio was almost stable at 0.20 as on Apr. 01, 2017, when compared with the last year.
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