Qorvo® Announces Fiscal 2019 Third Quarter Financial Results
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QORVO, INC. AND SUBSIDIARIES |
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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
| (In thousands, except percentages) |
| (Unaudited) |
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Three Months Ended |
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December 29, 2018 | |
September 29, 2018 | |
December 30, 2017 |
| GAAP gross profit/margin | $ | 338,363 | | 40.7 | % | | $ | 353,514 | | 40.0 | % | | $ | 336,927 | | 39.8 | % |
| Adjustment for intangible amortization | 62,711 | | 7.5 | % | | 63,244 | | 7.1 | % | | 63,279 | | 7.5 | % |
| Adjustment for stock-based compensation | 6,258 | | 0.7 | % | | 3,453 | | 0.4 | % | | 4,546 | | 0.5 | % |
| Accelerated depreciation | 3,080 | | 0.4 | % | | — | | — | % | | — | | — | % |
| Other non-cash expenses | 1,390 | | 0.2 | % | | 1,391 | | 0.2 | % | | 347 | | 0.1 | % |
| Non-cash deferred royalty revenue and equal and offsetting non-cash prepaid royalty amortization ($970) | — | | — | % | | — | | — | % | | — | | 0.1 | % |
| Non-GAAP gross profit/margin | $ | 411,802 | | 49.5 | % | | $ | 421,602 | | 47.7 | % | | $ | 405,099 | | 48.0 | % |
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Three Months Ended | |
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Non-GAAP Operating Income | |
December 29, 2018 | |
| (as a percentage of sales) | | | |
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| GAAP operating income | | 9.8% | |
| Stock-based compensation expense | | 2.2% | |
| Amortization of intangible assets | | 15.9% | |
| Restructuring costs | | 0.2% | |
| Acquisition and integration related costs | | 0.4% | |
| Start-up costs | | 0.8% | |
| Asset impairment and accelerated depreciation | | 2.2% | |
| Other (including loss (gain) on assets and other non-cash expenses) | | (0.1)% | |
| Non-GAAP operating income | | 31.4% | |
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Three Months Ended | |
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Free Cash Flow
(1) | |
December 29, 2018 | |
| (in millions) | | | |
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| Net cash provided by operating activities | $ | 333.3 | |
| Purchases of property and equipment | | (72.0 | ) |
| Free cash flow | $ | 261.3 | |
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| (1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures. | | | |
