Sector: Information Technology | Focus: Semiconductors
HQ: Greensboro, North Carolina
Financial Risks
Qorvo faces risks from fluctuating quarterly and annual operating results, dependence on new product development and large customers, potential contract cancellations, reliance on third parties, manufacturing facility operations, manufacturing yield issues, inventory risks, supplier relationships, competitive pressures, underutilized facilities, interest rate changes, precious metal pricing, utility rates, foreign currency fluctuations, acquisition/divestiture failures, employee retention, warranty claims, product recalls, tax rate changes, international sales and operations, economic regulation in China, government trade policies, inability to service debt, intellectual property infringement, security breaches, and potential takeover deterrents.
Financial Upside
Qorvo has a strong liquidity position with significant cash on hand and a new credit facility. The company's revenue has shown some growth, particularly in the Connectivity and Sensors Group. Repurchases of debt and common stock are ongoing. A potential tax credit from the CHIPS Act is anticipated.
