Qorvo stock plummeted 13% on Thursday after the company's third-quarter revenue guidance fell short of expectations.
The current quarter revenue prediction of $1.09 billion to $1.12 billion is lower than both the previous quarter and the same period last year. It came in despite the fact that the company's second-quarter sales and profit exceeded expectations.
Qorvo attributed the decline to persistent supply issues and other reasons affecting global smartphone demand, which would reduce demand for its goods that go into those devices. Qorvo's products and technologies are also used in space equipment, radar, power management systems, and other applications.
According to Chief Financial Officer Mark Murphy, the difficulties may ease in the March quarter. The company anticipates a 15% increase in revenue and a gross margin of more than 52% for the whole year.
The business announced the acquisition of United Silicon Carbide, a manufacturer of silicon carbide power devices.
Revenue in the second quarter was $1.25 billion, a 13% increase over the previous year. The net profit increased by more than 19% to $384.5 million.