Skyworks and Qorvo Cut Financial Guidance by 6% Due to the COVID-19 Outbreak

Skyworks, a manufacturer of analog and mixed-signal semiconductors and Qorvo, a mobile, infrastructure and defense solutions provider, have both reduced their March-quarter financial guidance in response to the global spread of the severe acute respiratory syndrome coronavirus 2 (COVID-19).

Reflecting the unanticipated impact that the COVID-19 outbreak is having on the business environment, for its fiscal second-quarter 2020 (ending 27 March), Skyworks has reduced its guidance for revenue by about 5.6% from $800-820m (provided on 23 January) to $760-770m, and for non-GAAP diluted earnings per share from $1.46 to $1.34.

Although COVID-19 has caused no significant disruption within Skyworks’ manufacturing operations to date, the current demand environment for its products has been negatively impacted by interruptions in global supply chains. Despite this, Skyworks remains upbeat about its design-win momentum and ability to deliver strong profitability and cash flow. As the Company navigates these challenges, it continues to focus on the health and safety of all its employees, customers and partners worldwide.

For its fiscal fourth-quarter 2020 (ending 28 March), Qorvo has reduced its guidance for revenue by $50m (6%), from $800-840m (provided on 29 January) to $770m. They said, the novel coronavirus (COVID-19) has impacted the smartphone supply chain and customer demand more than anticipated. Due to the uncertainty of the magnitude, duration and geographic reach of the outbreak, the full impact of COVID-19 remains difficult to forecast.

The impact of COVID-19 will be seen by a number of other companies in the sector as well.