SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q 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 a few large customers for a substantial portion of our revenue; a
loss of revenue if contracts with the United States government or defense and
aerospace contractors are canceled or delayed or if defense spending is reduced;
the COVID-19 outbreak, which has and will likely continue to negatively impact
the global economy and disrupt normal business activities, and which may have an
adverse effect on our results of operations; 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; risks from international sales and operations; economic
regulation in China; changes in government trade policies, including imposition
of tariffs and export restrictions; our ability to implement innovative
technologies; underutilization of manufacturing facilities as a result of
industry overcapacity; we may not be able to borrow funds under our credit
facility or secure future financing; we may not be able to generate sufficient
cash to service all of our debt; restrictions imposed by the agreements
governing our debt; volatility in the price of our common stock; damage to our
reputation or brand; fluctuations in the amount and frequency of our stock
repurchases; our recent and future acquisitions and other strategic investments
could fail to achieve financial or strategic objectives; our ability to attract,
retain and motivate key employees; 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; warranty claims, product recalls and product liability; and risks
associated with environmental, health and safety regulations and climate change.
Many of the foregoing risks and uncertainties are, and will continue to be
exacerbated by the COVID-19 outbreak and any worsening of the global business
and economic environment as a result. These and other risks and uncertainties,
which are described in more detail in our most recent Annual Report on Form 10-K
and in other reports and statements that we file with the SEC, could cause
actual results and developments to be materially different from those expressed
or implied by any of these forward-looking statements.
OVERVIEW
The following Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") is intended to help the reader understand the
consolidated results of operations and financial condition of Qorvo. MD&A is
provided as a supplement to, and should be read in conjunction with, our
Condensed Consolidated Financial Statements and accompanying Notes to Condensed
Consolidated Financial Statements.
Qorvo® is a leader in the development and commercialization of technologies and
products for wireless and wired connectivity. We combine a broad portfolio of
innovative radio frequency ("RF") solutions, highly differentiated semiconductor
technologies, systems-level expertise and global manufacturing scale to supply a
diverse set of customers a broad range of products that enable a more connected
world.
Our financial results for the quarter ended June 27, 2020 were not materially
impacted by the COVID-19 outbreak; however, we are not able to estimate the
long-term impact of the COVID-19 outbreak on our business (including our supply
chain), financial condition, results of operations, and/or cash flow. We believe
we have sufficient liquidity available from operating cash flow, cash on hand
(including from our recently issued senior notes), and availability under our
revolving credit facility. However, as the situation evolves, we will continue
to assess our liquidity needs, evaluate available alternatives and take
appropriate actions.
19
--------------------------------------------------------------------------------
Table of Contents
We design, develop, manufacture and market our products to U.S. and
international original equipment manufacturers and original design manufacturers
in two operating segments, which are also our reportable segments: Mobile
Products ("MP") and Infrastructure and Defense Products ("IDP").
MP is a global supplier of cellular, ultra-wide band and Wi-Fi solutions for a
variety of high-volume markets, including smartphones, wearables, laptops,
tablets and Internet of Things ("IoT") applications.
IDP is a global supplier of RF, system-on-a-chip and power management solutions
for wireless infrastructure, defense, smart home, automotive and other IoT and
biosensor applications.
These business segments are based on the organizational structure and
information reviewed by our Chief Executive Officer, who is our chief operating
decision maker ("CODM"), and are managed separately based on the end markets and
applications they support. The CODM allocates resources and evaluates the
performance of each operating segment primarily based on non-GAAP operating
income (see Note 12 of the Notes to Condensed Consolidated Financial Statements
in Part I, Item 1 of this report for additional information regarding our
operating segments).
© Edgar Online, source Glimpses