RFMD® Achieves September Quarterly Revenue of $243.8 Million
Tuesday , October 25, 2011 16:00ET
GREENSBORO, N.C., Oct. 25, 2011 /PRNewswire/ --
Quarterly Highlights:
-- Quarterly Revenue Totals $243.8 Million
-- GAAP Operating Income Is $23.0 Million, And GAAP Diluted EPS Is $0.05
-- Non-GAAP Operating Income Is $37.4 Million, Or 15.3% Of Revenue, And
Non-GAAP Diluted EPS Is $0.11
-- Quarterly Shipments Of PowerSmart(TM) Exceed $25 Million
-- Quarterly Shipments Of Switch And Signal Conditioning Products Exceed
$20 Million
-- RFMD Secures Multiple Power Amplifier (PA) Wins On A Qualcomm Reference
Design For The 3G Entry Market
RF Micro Devices, Inc. (Nasdaq GS: RFMD), a global leader in the design and manufacture of high-performance radio frequency components and compound semiconductor technologies, today reported financial results for its fiscal 2012 second quarter, ended October 1, 2011.
RFMD's second quarter revenue increased approximately 14% sequentially to $243.8 million, compared to $214.2 million in the June 2011 quarter, primarily as a result of broad-based share gains in cellular handsets and smartphones. On a GAAP basis, gross margin equaled 37.1%, quarterly operating income totaled $23.0 million, and quarterly net income was $14.3 million, or $0.05 per diluted share.
On a non-GAAP basis, gross margin equaled 39.1%, quarterly operating income totaled $37.4 million, and quarterly net income was $31.1 million, or $0.11 per diluted share. During the second quarter, RFMD generated approximately $38.4 million in cash flow from operations and $30.6 million in free cash flow. RFMD repurchased approximately 1.7 million shares of common stock during the quarter.
RFMD Strategic Highlights
-- Sales of RFMD's 3G/4G cellular products grew more than 50% sequentially
-- RFMD secured multiple PA design wins on a Qualcomm reference design for
the 3G entry market
-- Shipments of PowerSmart(TM) grew by more than 100% sequentially and
surpassed $25 million in quarterly revenue, in support of Samsung, LG,
and Research In Motion
-- RFMD continued to ramp its ultra-high efficiency 3G/4G PAs in support of
HTC, Research In Motion, Lenovo, and others
-- RFMD secured major design wins in Smart Energy/Advanced Metering
Infrastructure (AMI), point-to-point (P2P) radio for cellular backhaul,
and GaN-based military radar products
GAAP RESULTS
------------
(in millions,
except
percentages and Q1 Q2
per Q2 Fiscal Fiscal Change Fiscal Change
vs. Q1 vs. Q2
share data) 2012 2012 2012 2011 2011
----------- ---- ---- ------- ---- -------
Revenue $243.8 $214.2 13.8% $285.8 -14.7%
Gross Margin 37.1% 36.5% 0.6 ppt 38.0% (0.9) ppt
Operating Income $23.0 $14.9 $8.1 $42.4 $(19.4)
Net Income $14.3 $8.9 $5.4 $35.4 $(21.1)
Diluted EPS $0.05 $0.03 $0.02 $0.13 $(0.08)
NON-GAAP RESULTS (excluding share-based compensation, amortization of
intangibles, integration charges, start-up costs, loss on retirement
of convertible subordinated notes, restructuring charges, (gain) loss
on PP&E, (income) loss from equity investment, and non-cash interest
expense on convertible subordinated notes and tax adjustments)
(in millions, except
Q2 Q1 Q2
percentages and per Fiscal Fiscal Change Fiscal Change
vs. Q1 vs. Q2
share data) 2012 2012 2012 2011 2011
----------- ---- ---- ------- ---- -------
Gross Margin 39.1% 38.5% 0.6 ppt 39.8% (0.7) ppt
Operating Income $37.4 $25.1 $12.3 $57.1 $(19.7)
Net Income $31.1 $21.3 $9.8 $52.3 $(21.2)
Diluted EPS $0.11 $0.08 $0.03 $0.19 $(0.08)
Business Outlook
RFMD currently believes the demand environment in its end markets supports the following expectations and projections for the December 2011 quarter:
-- RFMD expects quarterly revenue to increase sequentially to approximately
$250 million
-- RFMD expects CPG revenue to outpace the cellular market, driven by
anticipated 3G/4G share gains
-- RFMD expects a sequential decline of approximately 10% in MPG revenue
-- RFMD expects non-GAAP gross margin to be approximately flat, based on
projected revenue mix, and non-GAAP operating expenses to increase
sequentially approximately $1 million
-- RFMD expects a non-GAAP tax rate of approximately 16%
RFMD's actual quarterly results may differ from these expectations and projections, and such differences may be material.
Comments From Management
Bob Bruggeworth, president and chief executive officer of RFMD, said, "Today's overlapping macro trends of mobility, broadband data and energy efficiency present the RF industry with a significant, long-term growth opportunity, while RFMD's industry-leading products and technologies position us to outpace our industry and deliver market share gains.
"In the markets served by MPG, we continue to broaden our customer base and expand our product offerings. We are particularly enthusiastic about the increasing customer adoption of our industry-leading GaN technology in strategic market segments like military radar and CATV line amplifiers.
"In the cellular market, we are expanding our customer relationships and winning additional content at the world's leading smartphone manufacturers. Our newest design wins set up continued dollar content expansion in both smartphones and 3G entry handsets, while leveraging our already significant exposure to the industry's leading baseband providers. Today these include Qualcomm, Intel, ST Ericsson, MediaTek, Spreadtrum, and others."
Dean Priddy, CFO and vice president of administration of RFMD, said, "During the September quarter, RFMD delivered approximately 14% sequential growth in revenue and nearly 50% sequential growth in non-GAAP operating income, as 3G/4G market share gains more than offset a double-digit sequential decline in MPG. In the December quarter, we expect to deliver sequential revenue growth and improved financial performance, as 3G/4G share gains are anticipated to once again more than offset a sequential decline in MPG."
Financials continued at :
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