Apple supplier Qorvo cuts Q3 guidance ‘due to recent demand changes for flagship smartphones’

Qorvo, a provider of RF solutions, today announced it expects revenue for the third quarter of fiscal 2019 to be in the range of $800 million and $840 million, compared to its previous forecast of $880 million to $900 million, due to recent demand changes for flagship smartphones.
Qorvo’s forecast of demand from China-based handset manufacturers remains measured and largely unchanged. Qorvo’s current forecast of demand across markets served by Qorvo’s Infrastructure and Defense Products (IDP) segment are tracking within the range of its prior expectations.
Qorvo currently forecasts non-GAAP gross margin in the third quarter to be approximately 49.5%, compared to its original forecast of approximately 50%, due primarily to lower factory utilization. Non-GAAP operating expenses are projected to be approximately $161 million, down $4 million from the previous third quarter forecast, on expense control and lower incentive compensation. Non-GAAP diluted EPS for the third quarter of fiscal 2019 is expected to be $1.70 at the midpoint of guidance, compared to the previous forecast of $1.95.
In the March 2019 quarter, Qorvo currently expects sequential revenue to be down less than 10%.
Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.
Source: Qorvo
MacDailyNews Take: Another one bites the dust.
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