☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
Delaware | 46-5288992 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification no.) | ||||||||||
7628 Thorndike Road | |||||||||||
Greensboro, | North Carolina | 27409-9421 | |||||||||
(Address of principal executive office) | (Zip code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.0001 par value | QRVO | The Nasdaq Stock Market LLC |
Large accelerated filer | þ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page | |||||
Item 1. Financial Statements (Unaudited).
|
|||||
January 2, 2021 | March 28, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,234,415 | $ | 714,939 | |||||||
Accounts receivable, net of allowance of $560 and $55 as of January 2, 2021 and March 28, 2020, respectively | 507,078 | 367,172 | |||||||||
Inventories
|
479,340 | 517,198 | |||||||||
Prepaid expenses | 42,793 | 37,872 | |||||||||
Other receivables | 12,621 | 15,016 | |||||||||
Other current assets
|
46,010 | 38,305 | |||||||||
Total current assets | 2,322,257 | 1,690,502 | |||||||||
Property and equipment, net of accumulated depreciation of $1,519,829 and $1,415,397 as of January 2, 2021 and March 28, 2020, respectively | 1,232,374 | 1,259,203 | |||||||||
Goodwill | 2,650,912 | 2,614,274 | |||||||||
Intangible assets, net
|
656,239 | 808,892 | |||||||||
Long-term investments | 31,271 | 22,515 | |||||||||
Other non-current assets | 148,325 | 165,296 | |||||||||
Total assets | $ | 7,041,378 | $ | 6,560,682 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 301,576 | $ | 246,954 | |||||||
Accrued liabilities | 214,532 | 217,801 | |||||||||
Current portion of long-term debt | 5,091 | 6,893 | |||||||||
Other current liabilities | 92,699 | 67,355 | |||||||||
Total current liabilities | 613,898 | 539,003 | |||||||||
Long-term debt | 1,743,794 | 1,567,231 | |||||||||
Other long-term liabilities | 179,985 | 161,783 | |||||||||
Total liabilities | 2,537,677 | 2,268,017 | |||||||||
Commitments and contingent liabilities (Note 9)
|
|||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $.0001 par value; 5,000 shares authorized; no shares issued and outstanding | — | — | |||||||||
Common stock and additional paid-in capital, $.0001 par value; 405,000 shares authorized; 113,299 and 114,625 shares issued and outstanding at January 2, 2021 and March 28, 2020, respectively | 4,262,883 | 4,290,377 | |||||||||
Accumulated other comprehensive income, net of tax | 47,489 | 2,288 | |||||||||
Retained earnings | 193,329 | — | |||||||||
Total stockholders’ equity | 4,503,701 | 4,292,665 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,041,378 | $ | 6,560,682 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||
Revenue | $ | 1,094,834 | $ | 869,073 | $ | 2,942,577 | $ | 2,451,369 | |||||||||||||||
Cost of goods sold | 557,082 | 500,962 | 1,587,486 | 1,465,387 | |||||||||||||||||||
Gross profit | 537,752 | 368,111 | 1,355,091 | 985,982 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 136,697 | 122,851 | 423,110 | 357,385 | |||||||||||||||||||
Selling, general and administrative | 93,139 | 81,205 | 289,115 | 258,458 | |||||||||||||||||||
Other operating expense | 8,713 | 10,986 | 29,307 | 49,077 | |||||||||||||||||||
Total operating expenses | 238,549 | 215,042 | 741,532 | 664,920 | |||||||||||||||||||
Operating income | 299,203 | 153,069 | 613,559 | 321,062 | |||||||||||||||||||
Interest expense | (17,453) | (16,900) | (59,788) | (41,457) | |||||||||||||||||||
Interest income | 467 | 2,874 | 2,929 | 8,112 | |||||||||||||||||||
Other (expense) income, net | (58,701) | 44,148 | (36,106) | 42,737 | |||||||||||||||||||
Income before income taxes | 223,516 | 183,191 | 520,594 | 330,454 | |||||||||||||||||||
Income tax expense | (22,481) | (21,835) | (85,720) | (46,519) | |||||||||||||||||||
Net income | $ | 201,035 | $ | 161,356 | $ | 434,874 | $ | 283,935 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | 1.77 | $ | 1.39 | $ | 3.80 | $ | 2.42 | |||||||||||||||
Diluted | $ | 1.74 | $ | 1.36 | $ | 3.74 | $ | 2.37 | |||||||||||||||
Weighted average shares of common stock outstanding: | |||||||||||||||||||||||
Basic | 113,811 | 116,129 | 114,292 | 117,436 | |||||||||||||||||||
Diluted | 115,690 | 118,455 | 116,257 | 119,712 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||
Net income | $ | 201,035 | $ | 161,356 | $ | 434,874 | $ | 283,935 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustment, including intra-entity foreign currency transactions that are of a long-term investment nature
|
20,837 | 781 | 45,125 | (674) | |||||||||||||||||||
Reclassification adjustments, net of tax: | |||||||||||||||||||||||
Foreign currency loss realized upon liquidation of subsidiary | 15 | — | 15 | 353 | |||||||||||||||||||
Amortization of pension actuarial loss
|
21 | 34 | 61 | 102 | |||||||||||||||||||
Other comprehensive income (loss) | 20,873 | 815 | 45,201 | (219) | |||||||||||||||||||
Total comprehensive income | $ | 221,908 | $ | 162,171 | $ | 480,075 | $ | 283,716 |
Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | ||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||
Three Months Ended | Shares | Amount | Total | ||||||||||||||||||||||||||
Balance, October 3, 2020 | 114,111 | $ | 4,267,987 | $ | 26,616 | $ | 112,563 | $ | 4,407,166 | ||||||||||||||||||||
Net income
|
— | — | — | 201,035 | 201,035 | ||||||||||||||||||||||||
Other comprehensive income
|
— | — | 20,873 | — | 20,873 | ||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units, net of shares withheld for employee taxes
|
63 | 372 | — | — | 372 | ||||||||||||||||||||||||
Issuance of common stock in connection with employee stock purchase plan
|
188 | 15,608 | — | — | 15,608 | ||||||||||||||||||||||||
Repurchase of common stock, including transaction costs
|
(1,063) | (39,754) | — | (120,269) | (160,023) | ||||||||||||||||||||||||
Stock-based compensation
|
— | 18,670 | — | — | 18,670 | ||||||||||||||||||||||||
Balance, January 2, 2021 | 113,299 | $ | 4,262,883 | $ | 47,489 | $ | 193,329 | $ | 4,503,701 | ||||||||||||||||||||
Balance, September 28, 2019 | 116,294 | $ | 4,471,656 | $ | (7,658) | $ | (198,504) | $ | 4,265,494 | ||||||||||||||||||||
Net income
|
— | — | — | 161,356 | 161,356 | ||||||||||||||||||||||||
Other comprehensive income | — | — | 815 | — | 815 | ||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units, net of shares withheld for employee taxes
|
490 | 10,150 | — | — | 10,150 | ||||||||||||||||||||||||
Issuance of common stock in connection with employee stock purchase plan
|
213 | 13,710 | — | — | 13,710 | ||||||||||||||||||||||||
Repurchase of common stock, including transaction costs
|
(1,259) | (125,012) | — | — | (125,012) | ||||||||||||||||||||||||
Stock-based compensation
|
— | 12,864 | — | — | 12,864 | ||||||||||||||||||||||||
Balance, December 28, 2019 | 115,738 | $ | 4,383,368 | $ | (6,843) | $ | (37,148) | $ | 4,339,377 |
Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | ||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||
Nine Months Ended | Shares | Amount | Total | ||||||||||||||||||||||||||
Balance, March 28, 2020 | 114,625 | $ | 4,290,377 | $ | 2,288 | $ | — | $ | 4,292,665 | ||||||||||||||||||||
Net income
|
— | — | — | 434,874 | 434,874 | ||||||||||||||||||||||||
Other comprehensive income
|
— | — | 45,201 | — | 45,201 | ||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units, net of shares withheld for employee taxes
|
889 | (31,999) | — | — | (31,999) | ||||||||||||||||||||||||
Issuance of common stock in connection with employee stock purchase plan
|
417 | 31,366 | — | — | 31,366 | ||||||||||||||||||||||||
Cumulative-effect adoption of ASU 2016-13
|
— | — | — | (38) | (38) | ||||||||||||||||||||||||
Repurchase of common stock, including transaction costs
|
(2,632) | (98,584) | — | (241,487) | (340,071) | ||||||||||||||||||||||||
Stock-based compensation
|
— | 71,723 | — | — | 71,723 | ||||||||||||||||||||||||
Other
|
— | — | — | (20) | (20) | ||||||||||||||||||||||||
Balance, January 2, 2021 | 113,299 | $ | 4,262,883 | $ | 47,489 | $ | 193,329 | $ | 4,503,701 | ||||||||||||||||||||
Balance, March 30, 2019 | 119,063 | $ | 4,687,455 | $ | (6,624) | $ | (321,152) | $ | 4,359,679 | ||||||||||||||||||||
Net income
|
— | — | — | 283,935 | 283,935 | ||||||||||||||||||||||||
Other comprehensive loss
|
— | — | (219) | — | (219) | ||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units, net of shares withheld for employee taxes
|
1,327 | (5,459) | — | — | (5,459) | ||||||||||||||||||||||||
Issuance of common stock in connection with employee stock purchase plan
|
452 | 28,658 | — | — | 28,658 | ||||||||||||||||||||||||
Cumulative-effect adoption of ASU 2016-02
|
— | — | — | 69 | 69 | ||||||||||||||||||||||||
Repurchase of common stock, including transaction costs
|
(5,104) | (390,117) | — | — | (390,117) | ||||||||||||||||||||||||
Stock-based compensation
|
— | 62,831 | — | — | 62,831 | ||||||||||||||||||||||||
Balance, December 28, 2019 | 115,738 | $ | 4,383,368 | $ | (6,843) | $ | (37,148) | $ | 4,339,377 |
Nine Months Ended | |||||||||||
January 2, 2021 | December 28, 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 434,874 | $ | 283,935 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 152,337 | 172,314 | |||||||||
Intangible assets amortization | 217,781 | 177,930 | |||||||||
Loss on debt extinguishment | 61,991 | — | |||||||||
Deferred income taxes | 26,311 | (1,207) | |||||||||
Gain on Cavendish investment | — | (43,008) | |||||||||
Stock-based compensation expense | 71,154 | 62,210 | |||||||||
Other, net | (128) | 18,111 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (140,054) | (25,166) | |||||||||
Inventories | 38,851 | 44,863 | |||||||||
Prepaid expenses and other assets | (1,921) | 2,942 | |||||||||
Accounts payable and accrued liabilities | 35,597 | 41,723 | |||||||||
Income taxes payable and receivable | 22,014 | 3,917 | |||||||||
Other liabilities | (19,883) | (7,313) | |||||||||
Net cash provided by operating activities | 898,924 | 731,251 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (109,505) | (129,004) | |||||||||
Purchase of businesses, net of cash acquired | (47,069) | (494,783) | |||||||||
Proceeds from sales of available-for-sale debt securities | — | 1,950 | |||||||||
Other investing activities | 15,277 | (1,263) | |||||||||
Net cash used in investing activities | (141,297) | (623,100) | |||||||||
Cash flows from financing activities: | |||||||||||
Payment of debt | (1,086,744) | — | |||||||||
Proceeds from borrowings and debt issuances | 1,206,750 | 659,000 | |||||||||
Repurchase of common stock, including transaction costs | (340,071) | (390,117) | |||||||||
Proceeds from the issuance of common stock | 28,659 | 37,530 | |||||||||
Tax withholding paid on behalf of employees for restricted stock units | (37,069) | (21,013) | |||||||||
Other financing activities | (12,413) | (6,252) | |||||||||
Net cash (used in) provided by financing activities | (240,888) | 279,148 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,569 | (501) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 519,308 | 386,798 | |||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | 715,612 | 711,382 | |||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 1,234,920 | $ | 1,098,180 | |||||||
Non-cash investing information: | |||||||||||
Capital expenditure adjustments included in liabilities | $ | 45,592 | $ | 26,152 | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||
Cash and cash equivalents | $ | 1,234,415 | $ | 1,097,724 | |||||||
Restricted cash included in "Other current assets" and "Other non-current assets" | 505 | 456 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 1,234,920 | $ | 1,098,180 | |||||||
January 2, 2021 | March 28, 2020 | ||||||||||
Raw materials | $ | 126,695 | $ | 112,671 | |||||||
Work in process | 270,562 | 291,028 | |||||||||
Finished goods | 82,083 | 113,499 | |||||||||
Total inventories | $ | 479,340 | $ | 517,198 |
Mobile Products | Infrastructure and Defense Products | Total | |||||||||||||||
Balance as of March 28, 2020 (1)
|
$ | 2,005,432 | $ | 608,842 | $ | 2,614,274 | |||||||||||
Goodwill resulting from 7Hugs acquisition (Note 4)
|
22,195 | — | 22,195 | ||||||||||||||
Measurement period adjustments from prior acquisitions (Note 4)
|
(1,075) | (514) | (1,589) | ||||||||||||||
Foreign currency translation | 16,032 | — | 16,032 | ||||||||||||||
Balance as of January 2, 2021 (1)
|
$ | 2,042,584 | $ | 608,328 | $ | 2,650,912 |
January 2, 2021 | March 28, 2020 | ||||||||||||||||||||||
Gross
Carrying Amount |
Accumulated
Amortization |
Gross
Carrying Amount |
Accumulated
Amortization |
||||||||||||||||||||
Developed technology | $ | 1,272,572 | $ | 716,397 | $ | 1,325,472 | $ | 652,400 | |||||||||||||||
Customer relationships | 458,150 | 399,505 | 463,772 | 346,799 | |||||||||||||||||||
Technology licenses | 2,271 | 1,895 | 3,271 | 2,327 | |||||||||||||||||||
Backlog | 1,600 | 1,467 | 1,600 | 267 | |||||||||||||||||||
Trade names | 1,000 | 458 | 1,200 | 283 | |||||||||||||||||||
In-process research and development | 9,600 | N/A | 9,600 | N/A | |||||||||||||||||||
Foreign currency translation | 35,497 | 4,729 | 6,064 | 11 | |||||||||||||||||||
Total | $ | 1,780,690 | $ | 1,124,451 | $ | 1,810,979 | $ | 1,002,087 |
Total |
Quoted Prices In
Active Markets For Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||||||||||||||
January 2, 2021 | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Marketable equity securities | $ | 644 | $ | 644 | $ | — | $ | — | |||||||||||||||||||||||||||
Invested funds in deferred compensation plan (1)
|
31,015 | 31,015 | — | — | |||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 31,659 | $ | 31,659 | $ | — | $ | — | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Deferred compensation plan obligation (1)
|
$ | 31,015 | $ | 31,015 | $ | — | $ | — | |||||||||||||||||||||||||||
Contingent earn-out liability (2)
|
10,000 | — | — | 10,000 | |||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 41,015 | $ | 31,015 | $ | — | $ | 10,000 | |||||||||||||||||||||||||||
March 28, 2020 | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Marketable equity securities | $ | 459 | $ | 459 | $ | — | $ | — | |||||||||||||||||||||||||||
Invested funds in deferred compensation plan (1)
|
19,398 | 19,398 | — | — | |||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 19,857 | $ | 19,857 | $ | — | $ | — | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Deferred compensation plan obligation (1)
|
$ | 19,398 | $ | 19,398 | $ | — | $ | — | |||||||||||||||||||||||||||
Contingent earn-out liability (2)
|
5,700 | — | — | 5,700 | |||||||||||||||||||||||||||||||
Total liabilities measured at fair value | $ | 25,098 | $ | 19,398 | $ | — | $ | 5,700 |
January 2, 2021 | March 28, 2020 | |||||||||||||
Term loan | $ | 198,750 | $ | 100,000 | ||||||||||
7.00% senior notes due 2025 | — | 23,404 | ||||||||||||
5.50% senior notes due 2026 | — | 900,000 | ||||||||||||
4.375% senior notes due 2029 | 850,000 | 550,000 | ||||||||||||
3.375% senior notes due 2031 | 700,000 | — | ||||||||||||
Finance leases | 1,648 | 2,252 | ||||||||||||
Unamortized premium and issuance costs, net | (1,513) | (1,532) | ||||||||||||
Less current portion of long-term debt | (5,091) | (6,893) | ||||||||||||
Total long-term debt | $ | 1,743,794 | $ | 1,567,231 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||
United States | $ | 587,737 | $ | 423,573 | $ | 1,295,398 | $ | 1,143,995 | |||||||||||||||
China | 305,887 | 281,024 | 1,084,120 | 842,112 | |||||||||||||||||||
Other Asia | 83,070 | 80,729 | 243,715 | 229,344 | |||||||||||||||||||
Taiwan | 69,492 | 43,156 | 176,171 | 122,189 | |||||||||||||||||||
Europe | 48,648 | 40,591 | 143,173 | 113,729 | |||||||||||||||||||
Total revenue
|
$ | 1,094,834 | $ | 869,073 | $ | 2,942,577 | $ | 2,451,369 |
Three Months Ended January 2, 2021 | Three Months Ended December 28, 2019 | ||||||||||||||||||||||||||||||||||
Cost of Goods Sold | Other Operating Expense | Total | Cost of Goods Sold | Other Operating Expense | Total | ||||||||||||||||||||||||||||||
One-time employee termination benefits (1)
|
$ | — | $ | 141 | $ | 141 | $ | — | $ | 1,677 | $ | 1,677 | |||||||||||||||||||||||
Contract termination and other associated costs | — | 154 | 154 | 3,437 | 809 | 4,246 | |||||||||||||||||||||||||||||
Accelerated depreciation | — | — | — | 4,324 | — | 4,324 | |||||||||||||||||||||||||||||
Total
|
$ | — | $ | 295 | $ | 295 | $ | 7,761 | $ | 2,486 | $ | 10,247 | |||||||||||||||||||||||
Nine Months Ended January 2, 2021 | Nine Months Ended December 28, 2019 | ||||||||||||||||||||||||||||||||||
Cost of Goods Sold | Other Operating Expense | Total | Cost of Goods Sold | Other Operating Expense | Total | ||||||||||||||||||||||||||||||
One-time employee termination benefits (1)
|
$ | — | $ | 98 | $ | 98 | $ | — | $ | 6,291 | $ | 6,291 | |||||||||||||||||||||||
Contract termination and other associated costs | — | 1,012 | 1,012 | 6,307 | 4,791 | 11,098 | |||||||||||||||||||||||||||||
Accelerated depreciation | — | — | — | 25,840 | — | 25,840 | |||||||||||||||||||||||||||||
Total
|
$ | — | $ | 1,110 | $ | 1,110 | $ | 32,147 | $ | 11,082 | $ | 43,229 |
One-Time Employee Termination Benefits | Contract Termination and Other Associated Costs | Total | |||||||||||||||||||||
Accrued restructuring balance as of March 28, 2020 | $ | 1,728 | $ | 270 | $ | 1,998 | |||||||||||||||||
Costs incurred and charged to expense
|
873 | 1,220 | 2,093 | ||||||||||||||||||||
Cash payments
|
(2,061) | (1,162) | (3,223) | ||||||||||||||||||||
Non-cash activity
|
— | (139) | (139) | ||||||||||||||||||||
Accrued restructuring balance as of January 2, 2021 | $ | 540 | $ | 189 | $ | 729 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
January 2,
2021 |
December 28,
2019 |
January 2,
2021 |
December 28,
2019 |
||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
MP | $ | 826,021 | $ | 662,109 | $ | 2,048,719 | $ | 1,841,468 | |||||||||||||||
IDP | 268,813 | 206,964 | 893,858 | 609,901 | |||||||||||||||||||
Total revenue | $ | 1,094,834 | $ | 869,073 | $ | 2,942,577 | $ | 2,451,369 | |||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
MP | $ | 342,118 | $ | 219,778 | $ | 714,959 | $ | 553,144 | |||||||||||||||
IDP | 59,241 | 32,628 | 219,491 | 97,721 | |||||||||||||||||||
All other | (102,156) | (99,337) | (320,891) | (329,803) | |||||||||||||||||||
Operating income | 299,203 | 153,069 | 613,559 | 321,062 | |||||||||||||||||||
Interest expense | (17,453) | (16,900) | (59,788) | (41,457) | |||||||||||||||||||
Interest income | 467 | 2,874 | 2,929 | 8,112 | |||||||||||||||||||
Other (expense) income, net | (58,701) | 44,148 | (36,106) | 42,737 | |||||||||||||||||||
Income before income taxes | $ | 223,516 | $ | 183,191 | $ | 520,594 | $ | 330,454 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
January 2,
2021 |
December 28,
2019 |
January 2,
2021 |
December 28,
2019 |
||||||||||||||||||||
Reconciliation of “All other” category: | |||||||||||||||||||||||
Stock-based compensation expense | $ | (19,247) | $ | (16,381) | $ | (71,154) | $ | (62,210) | |||||||||||||||
Amortization of intangible assets | (73,112) | (62,910) | (217,203) | (177,380) | |||||||||||||||||||
Acquisition and integration related costs
|
(5,261) | (7,226) | (25,183) | (37,905) | |||||||||||||||||||
Restructuring related charges
|
(546) | (5,956) | (2,093) | (17,850) | |||||||||||||||||||
Accelerated depreciation and asset impairment | — | (4,324) | — | (26,897) | |||||||||||||||||||
Other (including (loss) gain on assets, start-up costs and other miscellaneous corporate overhead) | (3,990) | (2,540) | (5,258) | (7,561) | |||||||||||||||||||
Loss from operations for “All other” | $ | (102,156) | $ | (99,337) | $ | (320,891) | $ | (329,803) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Numerator for basic and diluted net income per share — net income available to common stockholders
|
$ | 201,035 | $ | 161,356 | $ | 434,874 | $ | 283,935 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic net income per share — weighted average shares
|
113,811 | 116,129 | 114,292 | 117,436 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock-based awards
|
1,879 | 2,326 | 1,965 | 2,276 | |||||||||||||||||||
Denominator for diluted net income per share — adjusted weighted average shares and assumed conversions
|
115,690 | 118,455 | 116,257 | 119,712 | |||||||||||||||||||
Basic net income per share | $ | 1.77 | $ | 1.39 | $ | 3.80 | $ | 2.42 | |||||||||||||||
Diluted net income per share | $ | 1.74 | $ | 1.36 | $ | 3.74 | $ | 2.37 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
January 2,
2021 |
% of
Revenue |
December 28,
2019 |
% of
Revenue |
Increase (Decrease) |
Percentage
Change |
||||||||||||||||||||||||||||||
Revenue | $ | 1,094,834 | 100.0 | % | $ | 869,073 | 100.0 | % | $ | 225,761 | 26.0 | % | |||||||||||||||||||||||
Cost of goods sold | 557,082 | 50.9 | 500,962 | 57.6 | 56,120 | 11.2 | |||||||||||||||||||||||||||||
Gross profit | 537,752 | 49.1 | 368,111 | 42.4 | 169,641 | 46.1 | |||||||||||||||||||||||||||||
Research and development | 136,697 | 12.5 | 122,851 | 14.1 | 13,846 | 11.3 | |||||||||||||||||||||||||||||
Selling, general and administrative | 93,139 | 8.5 | 81,205 | 9.4 | 11,934 | 14.7 | |||||||||||||||||||||||||||||
Other operating expense | 8,713 | 0.8 | 10,986 | 1.3 | (2,273) | (20.7) | |||||||||||||||||||||||||||||
Operating income | $ | 299,203 | 27.3 | % | $ | 153,069 | 17.6 | % | $ | 146,134 | 95.5 | % | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||
January 2, 2021 | % of Revenue | December 28, 2019 | % of Revenue | Increase (Decrease) | Percentage Change | ||||||||||||||||||||||||||||||
Revenue | $ | 2,942,577 | 100.0 | % | $ | 2,451,369 | 100.0 | % | $ | 491,208 | 20.0 | % | |||||||||||||||||||||||
Cost of goods sold | 1,587,486 | 53.9 | 1,465,387 | 59.8 | 122,099 | 8.3 | |||||||||||||||||||||||||||||
Gross profit | 1,355,091 | 46.1 | 985,982 | 40.2 | 369,109 | 37.4 | |||||||||||||||||||||||||||||
Research and development | 423,110 | 14.4 | 357,385 | 14.6 | 65,725 | 18.4 | |||||||||||||||||||||||||||||
Selling, general and administrative | 289,115 | 9.8 | 258,458 | 10.5 | 30,657 | 11.9 | |||||||||||||||||||||||||||||
Other operating expense | 29,307 | 1.0 | 49,077 | 2.0 | (19,770) | (40.3) | |||||||||||||||||||||||||||||
Operating income | $ | 613,559 | 20.9 | % | $ | 321,062 | 13.1 | % | $ | 292,497 | 91.1 | % | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
(In thousands, except percentages) |
January 2,
2021 |
December 28,
2019 |
Increase |
Percentage
Change |
||||||||||||||||||||||
Revenue | $ | 826,021 | $ | 662,109 | $ | 163,912 | 24.8 | % | ||||||||||||||||||
Operating income | 342,118 | 219,778 | 122,340 | 55.7 | ||||||||||||||||||||||
Operating income as a % of revenue | 41.4 | % | 33.2 | % | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
(In thousands, except percentages) |
January 2,
2021 |
December 28,
2019 |
Increase |
Percentage
Change |
||||||||||||||||||||||
Revenue | $ | 2,048,719 | $ | 1,841,468 | $ | 207,251 | 11.3 | % | ||||||||||||||||||
Operating income | 714,959 | 553,144 | 161,815 | 29.3 | ||||||||||||||||||||||
Operating income as a % of revenue | 34.9 | % | 30.0 | % |
Three Months Ended | ||||||||||||||||||||||||||
(In thousands, except percentages) |
January 2,
2021 |
December 28,
2019 |
Increase |
Percentage
Change |
||||||||||||||||||||||
Revenue | $ | 268,813 | $ | 206,964 | $ | 61,849 | 29.9 | % | ||||||||||||||||||
Operating income | 59,241 | 32,628 | 26,613 | 81.6 | ||||||||||||||||||||||
Operating income as a % of revenue | 22.0 | % | 15.8 | % | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
(In thousands, except percentages) |
January 2,
2021 |
December 28,
2019 |
Increase |
Percentage
Change |
||||||||||||||||||||||
Revenue | $ | 893,858 | $ | 609,901 | $ | 283,957 | 46.6 | % | ||||||||||||||||||
Operating income | 219,491 | 97,721 | 121,770 | 124.6 | ||||||||||||||||||||||
Operating income as a % of revenue | 24.6 | % | 16.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | January 2, 2021 | December 28, 2019 | January 2, 2021 | December 28, 2019 | |||||||||||||||||||
Interest expense | $ | (17,453) | $ | (16,900) | $ | (59,788) | $ | (41,457) | |||||||||||||||
Interest income | 467 | 2,874 | 2,929 | 8,112 | |||||||||||||||||||
Other (expense) income, net | (58,701) | 44,148 | (36,106) | 42,737 | |||||||||||||||||||
Income tax expense | (22,481) | (21,835) | (85,720) | (46,519) |
Summarized Balance Sheets | |||||||||||
(in thousands) | January 2, 2021 | March 28, 2020 | |||||||||
Due from Non-Guarantors | $ | 519,078 | $ | 484,168 | |||||||
Other current assets | 511,978 | 628,660 | |||||||||
Total current assets | $ | 1,031,056 | $ | 1,112,828 | |||||||
Non-current assets | $ | 2,460,754 | $ | 2,346,759 | |||||||
Current liabilities | $ | 222,684 | $ | 253,324 | |||||||
Payable to Non-Guarantors | $ | 120,299 | $ | 249,938 | |||||||
Other long-term liabilities | 1,861,146 | 1,651,818 | |||||||||
Total long-term liabilities | $ | 1,981,445 | $ | 1,901,756 |
Summarized Statement of Income | Nine Months Ended | |||||||
(in thousands) | January 2, 2021 | |||||||
Revenue | $ | 1,083,843 | ||||||
Gross profit | $ | 434,489 | ||||||
Income from continuing operations | $ | 46,581 | ||||||
Net income | $ | 46,581 |
Period |
Total number of shares purchased (in thousands)
|
Average price paid per share |
Total number of shares purchased as part of publicly announced plans or programs (in thousands)
|
Approximate dollar value of shares that may yet be purchased under the plans or programs | ||||||||||||||||||||||
October 4, 2020 to October 31, 2020 | 94 | $ | 134.53 | 94 | $573.2 million | |||||||||||||||||||||
November 1, 2020 to November 28, 2020 | 512 | $ | 146.94 | 512 | $498.0 million | |||||||||||||||||||||
November 29, 2020 to January 2, 2021 | 457 | $ | 157.87 | 457 | $425.8 million | |||||||||||||||||||||
Total | 1,063 | $ | 150.54 | 1,063 | $425.8 million |
10.1 | |||||
22 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following materials from our Quarterly Report on Form 10-Q for the quarter ended January 2, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets as of January 2, 2021 and March 28, 2020; (ii) the Condensed Consolidated Statements of Income for the three and nine months ended January 2, 2021 and December 28, 2019; (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended January 2, 2021 and December 28, 2019; (iv) the Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended January 2, 2021 and December 28, 2019; (v) the Condensed Consolidated Statements of Cash Flows for the nine months ended January 2, 2021 and December 28, 2019; and (vi) the Notes to Condensed Consolidated Financial Statements | ||||
104 | The cover page from our Quarterly Report on Form 10-Q for the quarter ended January 2, 2021, formatted in iXBRL |
Qorvo, Inc. | |||||||||||
Date: | February 4, 2021 | /s/ Mark J. Murphy | |||||||||
Mark J. Murphy | |||||||||||
Chief Financial Officer | |||||||||||
Entity |
Jurisdiction of
Incorporation or Organization
|
||||
Amalfi Semiconductor, Inc. | Delaware | ||||
RFMD, LLC | North Carolina | ||||
Qorvo California, Inc. | California | ||||
Qorvo US, Inc. | Delaware | ||||
Qorvo Texas, LLC | Texas | ||||
Qorvo Oregon, Inc. | Oregon |
/s/ ROBERT A. BRUGGEWORTH | |||||
Robert A. Bruggeworth | |||||
President and Chief Executive Officer |
/s/ MARK J. MURPHY | |||||
Mark J. Murphy | |||||
Chief Financial Officer |
/s/ ROBERT A. BRUGGEWORTH | ||||||||
Robert A. Bruggeworth | ||||||||
President and Chief Executive Officer | ||||||||
February 4, 2021 |
/s/ MARK J. MURPHY | ||||||||
Mark J. Murphy | ||||||||
Chief Financial Officer | ||||||||
February 4, 2021 |