Step side occupies a place in Qorvo. How can radicals help increase profit margins | Real Time Headlines

Business: Qorvo It is a global supplier of semiconductor solution. The company operates through three parts: high -performance simulation (HPA), connection and sensor group (CSG) and high -end honeycomb group (ACG). The HPA segment is a global supplier of RF (RF), analog hybrid signal and power management solution. The CSG segment is a global supplier of connecting and sensor solutions. The ACG segment is a global supplier for smartphones, wearable devices, laptops, tablets, and other equipment honeycomb RF solutions.

Stock market value: ~ $ 8.41B ($ 88.94 per share)

Qorvo is formed by the merger of full -stock transactions between RF micro -device (RFMD) and TRIquint Semiconductor (TQNT) February 2014 Complete January 2015Essence Step side is very familiar with Qorvo. Considering that the company was a 13D applicant in Triquint in 2013. October 29, 2013, Starboard Send a letter Overview the company’s underestimation, poor performance and proposed three -level knowledge of value -added proposals. December 2, 2013, the side side Nominated Most Banyan Six director candidates of the board of directors of the 2014 meeting, but participated in the acting battle, because the Step side issued a letter to support the merger of Triquint and RFMD and withdraw from its 13D in March 2014. In one year, the return on the field side is 113.15 %, while the return on investment in Russell 2000 is 23.80 %.

The merger is awarded shareholders. This is an opportunity that can create new growth opportunities in mobile devices, network infrastructure, and the Ministry of National Defense, and receive the scale advantages of the new company, product portfolio, improved operation model and 150 million US dollars Support of cost synergy effect. The announcement of this news caused great excitement, because Triquint and RFMD’s stocks were about 200 % compared with the next day before the announcement of the merger. However, the new Qorvo newly formed a year later dropped by 27.7 %. Functionally, the second day from the merger to the wounded value, the shares disclosed its 7.71 % of the shares, and the stock transaction was flat, only more than 4.5 %. In recent years, this is a very amazing performance when semiconductor has become a huge beneficiary of the secular reverse wind. During the same period, the Philadelphia SE semiconductor index rose by more than 650 %.

The opportunity to increase the value of Qorvo is very simple. It is concentrated in operation, and the field side has made many times in many semiconductor companies: increased profit margins. Although Qorvo’s excellent product portfolio and competitiveness with their peers Broadcom and Skyworks solutionThe company’s gross profit margin and operating profit margin is low. In the previous fiscal year, Qorvo’s gross profit margin was 39.5 %, and the operating profit margin was 8.3 %, while the profit margins of its peers Skyworks were 44.2 % and 24.9 %, respectively. Although the income level is roughly similar (Skyworks’s 4.7 billion US dollars and qorvo’s 3.8 billion US dollars), Qorvo’s sales are generally 10.3 % in terms of administrative expenses. It is 18.1 % and Skyworks’ revenue is 12.7 %. In addition, Qorvo spent an additional $ 104 million (2.8 % income) in “other operating costs”. This is one of the huge signals of the board of directors and the management team that requires disciplines, and it is also one of the main reasons for Qorvo to get such a high vulnerability rating in the 13D Monitor’s company vulnerability rating database.

The style of each radicals has different styles, and has achieved different levels of success between the entire industry and strategies, but it is difficult to find a more successful combination than the field side in a semiconductor company. Step side has previously started radical movements at the following 13 semiconductor companies: ACTEL, Microtune, Zoran, DSP groups, MIPS Technologies, Integrated Device Technology, Tessera, TESSERA, Triquint Semiconductor, Micit, Inte, Inte Grated Silicon solution, Marvell, Marvell, Mellanox Technologies and nemiconductor. In all these activities, Starboard’s investment has a positive return. The average return rate of 13 is 85.87 %, with an average of 28.91 %. Russell 2000 During the same period. Under these circumstances, the crime method of the field side has become a board seat when necessary, establishing a disciplinary concept that can improve SG & A and targeted research and development, and help increase operating profit margins. In addition, companies such as low utilization levels such as semiconductor are used to help more practical manufacturing levels by merging factories and the flexibility of using external casting plants. There is the same opportunity here, which may lead to additional profits.

There is no doubt that the seat side will want the board of directors. We think this should be a reason why it is quickly resolved, and there are several reasons. First of all, the experience and records of the semiconductor company’s semiconductor companies cannot be realized. Secondly, it was irrefutable to become a semiconductor company in 2025. The company deprived of any actual returns of shareholders in the past ten years. Third, the three -side side has been with the three of Qorvo Eight directors Including its chairman, everyone is the director of the crosses when the field is engaged: Walden C. Lyonce After sitting in China for 10 years, a (David Hy Ho) has informed the company Intention to retire It does not mean that the company’s next annual meeting is re -elected. Once you join the board of directors, the representatives of Starboard and the rest of the board of directors will have the opportunity to evaluate whether this is the correct management team of Qorvo’s recent performance. If they decide to need new management, please be sure to note that in recent years, the semiconductor industry has merged with a large number of mergers, which has led to many senior and talented operators.

Qorvo’s director nomination window was opened until March 16, 2025. If no settlement was reached before that, we would be very surprised.

Ken Squire is the founder and president of 13D Monitor. This is an institutional research service about shareholders’ activityism. 13D investment portfolio common fund.