rfmd-20220504
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

May 4, 2022
(Date of earliest event reported)
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Qorvo, Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-3680146-5288992
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
7628 Thorndike Road, Greensboro, North Carolina 27409-9421
(Address of principal executive offices)
(Zip Code)

(336) 664-1233
Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par valueQRVOThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o




Item 2.02 Results of Operations and Financial Condition.

On May 4, 2022, Qorvo, Inc. issued a press release announcing financial results for its fiscal 2022 fourth quarter ended April 2, 2022. A copy of this press release is furnished as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)







SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



Qorvo, Inc.
By:/s/ Grant A. Brown
Grant A. Brown
Vice President of Treasury and Interim Chief Financial Officer


Date:    May 4, 2022





Document


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FOR IMMEDIATE RELEASE

Qorvo® Announces Fiscal 2022 Fourth Quarter Financial Results

GREENSBORO, NC — May 4, 2022 — Qorvo® (Nasdaq:QRVO), a leading provider of innovative RF solutions that connect the world, today announced financial results for the Company’s fiscal 2022 fourth quarter ended April 2, 2022.

On a GAAP basis, revenue for Qorvo’s fiscal 2022 fourth quarter was $1.166 billion, gross margin was 48.9%, operating income was $271 million and diluted earnings per share was $1.95. On a non-GAAP basis, gross margin was 52.0%, operating income was $377 million and diluted earnings per share was $3.12.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “Qorvo delivered a strong fiscal 2022 fourth quarter and full fiscal year. Revenue exceeded the midpoint of quarterly guidance, despite a dynamic and challenging macro environment. We continue to execute well, and our customers are excited about the technologies and products we are releasing. Qorvo is extremely well positioned with multiyear growth drivers, broadening market and customer exposure and a deep product and technical portfolio.”

Strategic Highlights

Received multi-million dollar order for new SiC power device solution for circuit protection in EV charging stations
Secured multiple design wins for massive MIMO small signal infrastructure applications in the U.S. and Europe
Increased shipments of power management ICs for solid state drive applications and motor control solutions for battery powered tools and appliances
Increased shipments to a Korea-based smartphone OEM, including RF FusionTM, Wi-Fi 6E FEMs, antenna control solutions and RF power management ICs, for mass-tier and flagship 5G smartphones
Recognized by Honor as their only “Core Strategic Supplier” in the RF category and received first production orders for Qorvo’s next-generation RF Fusion
Secured design wins across China-based smartphone OEMs for a range of Qorvo products, including complete main path and secondary transmit solutions, supporting multiple basebands
Secured first design win for complete UWB SiP solution, including SoC, RF front end and software, in support of multiple upcoming smartphone models
Sampled BAW-based Wi-Fi 6E filter reducing form factors for CPE tri-band mesh applications
Began ramping industry’s first wideband FEM for enterprise CPE applications enabling RF configurability and covering both Wi-Fi 6 and 6E, increasing capacity and maximizing throughput
Secured design wins for multi-protocol low-power wireless (BLE/Zigbee®/Thread) SoC for remote control applications for leading Korea-based TV OEM and leading U.S.-based MSO
Commenced shipments of MEMS-based force sensors to Joyson in a smart interior HMI application for a U.S.-based automotive OEM
Received first design win for highly integrated V2X FEM enhancing RF performance and extending range in a shark fin application for a leading Europe-based automotive OEM





Financial Commentary and Outlook

Grant Brown, interim chief financial officer of Qorvo, said, “Qorvo finished the 2022 fiscal year on a strong note, delivering annual revenue growth of 16% and expanding gross margin to 52.4%. Despite challenges related to COVID lockdowns in China, the war in Ukraine and other disruptions, we continue to position the business for growth.”

Qorvo's current outlook for the June 2022 quarter is:

Quarterly revenue of $1.0 billion to $1.05 billion
Non-GAAP gross margin of approximately 50%
Non-GAAP diluted earnings per share in the range of $2.00 to $2.25

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
(Unaudited)
(In millions, except for percentages and EPS)
For the quarter ended April 2, 2022For the quarter ended January 1, 2022Change vs. Q3 FY 2022
Revenue$1,166.2 $1,114.0 $52.2 
Gross profit$570.3 $548.1 $22.2 
Gross margin48.9 %49.2 %(0.3)ppt
Operating expenses$299.7 $252.1 $47.6 
Operating income$270.6 $296.0 $(25.4)
Net income$212.3 $216.3 $(4.0)
Weighted average diluted shares108.7 110.8 (2.1)
Diluted EPS$1.95 $1.95 $— 

SELECTED NON-GAAP RESULTS1
(Unaudited)
(In millions, except for percentages and EPS)
For the quarter ended April 2, 2022For the quarter ended January 1, 2022Change vs. Q3 FY 2022
Revenue$1,166.2 $1,114.0 $52.2 
Gross profit$606.2 $586.2 $20.0 
Gross margin52.0 %52.6 %(0.6)ppt
Operating expenses$229.0 $214.2 $14.8 
Operating income$377.2 $372.0 $5.2 
Net income$339.6 $330.4 $9.2 
Weighted average diluted shares108.7 110.8 (2.1)
Diluted EPS $3.12 $2.98 $0.14 

SELECTED GAAP RESULTS
(Unaudited)
(In millions, except for percentages and EPS)
For the quarter ended April 2, 2022For the quarter ended April 3, 2021Change vs. Q4 FY 2021
Revenue$1,166.2 $1,072.7 $93.5 
Gross profit$570.3 $528.5 $41.8 
Gross margin48.9 %49.3 %(0.4)ppt
Operating expenses$299.7 $235.4 $64.3 
Operating income$270.6 $293.1 $(22.5)
Net income$212.3 $298.7 $(86.4)
Weighted average diluted shares108.7 115.0 (6.3)
Diluted EPS$1.95 $2.60 $(0.65)




SELECTED NON-GAAP RESULTS1
(Unaudited)
(In millions, except for percentages and EPS)
For the quarter ended April 2, 2022For the quarter ended April 3, 2021Change vs. Q4 FY 2021
Revenue$1,166.2 $1,072.7 $93.5 
Gross profit$606.2 $564.7 $41.5 
Gross margin52.0 %52.6 %(0.6)ppt
Operating expenses$229.0 $207.5 $21.5 
Operating income$377.2 $357.2 $20.0 
Net income$339.6 $315.4 $24.2 
Weighted average diluted shares108.7 115.0 (6.3)
Diluted EPS$3.12 $2.74 $0.38 
1 Excludes stock-based compensation expense, amortization of intangible assets, acquisition and integration related costs, loss on assets, start-up costs, restructuring related charges, loss (gain) on investments, other expense (income) and an adjustment of income taxes.

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 income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) non-GAAP operating expenses (research and development; selling, general and administrative), (vi) free cash flow, (vii) EBITDA, (viii) non-GAAP return on invested capital (ROIC), and (ix) 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, certain non-cash expenses 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 and certain non-cash expenses. 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 certain non-cash expenses 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 revenue and 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 operating income and operating margin. Non-GAAP operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration related costs, gain or loss on assets, asset impairments, start-up costs, restructuring related charges and certain non-cash expenses. We believe that presentation of a measure of 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, gain or loss on assets, asset impairments, start-up costs, restructuring related charges and certain non-cash expenses 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 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, gain or loss on assets, asset impairments, start-up costs, restructuring related charges and certain non-cash expenses, gain or loss on investments, other expense (income) 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 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.

Non-GAAP operating expenses (research and development and selling, general and administrative). Non-GAAP research and development and selling, general and administrative expenses exclude stock-based compensation expense, amortization of intangible assets and certain non-cash expenses (primarily acquisition and integration related costs). We believe that presentation of measures of these operating expenses that exclude 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 and certain non-cash expenses 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 these non-GAAP operating expenses 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 defines EBITDA as earnings before interest expense and interest income, income tax expense (benefit), depreciation and intangible amortization. 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 assets, asset impairments, gain or loss on investments and the provision for income taxes. We believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors.

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 http://www.qorvo.com (under “Investors”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 719-457-0820 and using the passcode 8859759. The playback will be available through the close of business May 11, 2022.

About Qorvo

Qorvo (Nasdaq:QRVO) makes a better world possible by providing innovative Radio Frequency (RF) solutions at the center of connectivity. 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 advanced wireless devices, wired and wireless networks and defense radar and communications. We also leverage unique competitive strengths to advance 5G networks, cloud computing, the Internet of Things, and other emerging applications that expand the global framework interconnecting people, places and things. Visit www.qorvo.com to learn how Qorvo connects the world.

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 use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "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; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; the COVID-19 pandemic materially and adversely affecting our financial condition and results of operations; a loss of revenue if defense and aerospace contracts are canceled or delayed; 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 due to timing of customer forecasts; our inability to effectively manage or maintain evolving relationships with platform providers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities as a result of industry overcapacity; 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; changes in the favorable tax status of certain of our subsidiaries; enactment of international or domestic tax legislation, or changes in regulatory guidance; 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 compromising our information; 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 in Qorvo's most recent Annual Report on Form 10-K and in other reports and statements filed with the Securities and Exchange Commission, 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 INCOME
(In thousands, except per share data)
(Unaudited)

Three Months EndedTwelve Months Ended
April 2, 2022April 3, 2021April 2, 2022April 3, 2021
Revenue$1,166,158 $1,072,730 $4,645,714 $4,015,307 
Costs and expenses:
Cost of goods sold
595,819 544,255 2,359,546 2,131,741 
Research and development
158,745 147,285 623,636 570,395 
Selling, general and administrative
83,927 78,123 349,718 367,238 
Other operating expense
57,070 9,999 86,745 39,306 
Total costs and expenses
895,561 779,662 3,419,645 3,108,680 
Operating income270,597 293,068 1,226,069 906,627 
Interest expense (17,392)(15,410)(63,326)(75,198)
Other (expense) income, net(5,736)9,128 18,341 (24,049)
Income before income taxes247,469 286,786 1,181,084 807,380 
Income tax (expense) benefit(35,194)11,951 (147,731)(73,769)
Net income$212,275 $298,737 $1,033,353 $733,611 
Net income per share, diluted$1.95 $2.60 $9.26 $6.32 
Weighted average outstanding diluted shares108,687 115,010 111,546 116,016 






QORVO, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
April 2, 2022January 1, 2022April 3, 2021
GAAP operating income$270,597 $296,010 $293,068 
Stock-based compensation expense
10,271 19,307 18,168 
Amortization of intangible assets
37,885 38,443 34,934 
Acquisition and integration related costs
11,379 6,552 7,763 
Loss on assets, start-up costs, restructuring and other non-cash expenses47,056 11,696 3,295 
Non-GAAP operating income$377,188 $372,008 $357,228 
GAAP net income$212,275 $216,263 $298,737 
Stock-based compensation expense10,271 19,307 18,168 
Amortization of intangible assets
37,885 38,443 34,934 
Acquisition and integration related costs
11,379 6,552 7,763 
Loss on assets, start-up costs, restructuring and other non-cash expenses47,056 11,696 3,295 
Loss (gain) on investments3,791 (672)(7,257)
Other expense (income) 2,554 (1,386)(1,588)
Adjustment of income taxes
14,390 40,223 (38,670)
Non-GAAP net income$339,601 $330,426 $315,382 
GAAP weighted average outstanding diluted shares
108,687 110,810 115,010 
Dilutive stock-based awards
— — — 
Non-GAAP weighted average outstanding diluted shares
108,687 110,810 115,010 
Non-GAAP net income per share, diluted
$3.12 $2.98 $2.74 








QORVO, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

Three Months Ended
(in thousands, except percentages)April 2, 2022January 1, 2022April 3, 2021
GAAP gross profit/margin$570,339 48.9 %$548,093 49.2 %$528,475 49.3 %
Amortization of intangible assets
30,665 2.7 31,393 2.8 30,993 2.9 
Stock-based compensation expense
3,879 0.3 4,274 0.4 4,858 0.4 
Other non-cash expenses
1,272 0.1 2,426 0.2 375 — 
Non-GAAP gross profit/margin$606,155 52.0 %$586,186 52.6 %$564,701 52.6 %



Three Months Ended
Non-GAAP Operating IncomeApril 2, 2022
(as a percentage of sales)
GAAP operating income23.2 %
Stock-based compensation expense
0.9 
Amortization of intangible assets
3.2 
Acquisition and integration related costs
1.0 
Loss on assets, start-up costs, restructuring and other non-cash expenses4.0 
Non-GAAP operating income32.3 %




Three Months Ended
Free Cash Flow (1)
April 2, 2022
(in millions)
Net cash provided by operating activities$345.9 
Purchases of property and equipment(50.5)
Free cash flow$295.4 

(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
April 2, 2022January 1, 2022April 3, 2021
GAAP research and development expense$158,745 $154,435 $147,285 
Less:
Stock-based compensation expense
8,423 8,706 7,708 
Other non-cash expenses
72 135 526 
Non-GAAP research and development expense$150,250 $145,594 $139,051 
Three Months Ended
April 2, 2022January 1, 2022April 3, 2021
GAAP selling, general and administrative expense$83,927 $82,003 $78,123 
Less:
Stock-based compensation (adjustment) expense(2,031)6,327 5,602 
Amortization of intangible assets
7,220 7,050 3,941 
Other non-cash expenses
22 41 159 
Non-GAAP selling, general and administrative expense$78,716 $68,585 $68,421 







QORVO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

April 2, 2022April 3, 2021
ASSETS
Current assets:
Cash and cash equivalents
$972,592 $1,397,880 
Accounts receivable, net
568,850 457,431 
Inventories
755,748 507,787 
Other current assets
152,675 120,706 
Total current assets
2,449,865 2,483,804 
Property and equipment, net1,253,591 1,266,031 
Goodwill2,775,634 2,642,708 
Intangible assets, net 674,786 611,155 
Long-term investments31,086 35,370 
Other non-current assets324,110 182,402 
Total assets
$7,509,072 $7,221,470 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$568,101 $568,928 
Other current liabilities107,026 112,653 
Total current liabilities
675,127 681,581 
Long-term debt2,047,098 1,742,550 
Other long-term liabilities 233,629 167,914 
Total liabilities
2,955,854 2,592,045 
Stockholders’ equity4,553,218 4,629,425 
Total liabilities and stockholders’ equity$7,509,072 $7,221,470 


At Qorvo®
Doug DeLieto
VP, Investor Relations
1.336.678.7968