RF Micro Devices, Inc. (RFMD)

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RF Micro Cuts Dec Qtr View

RF Micro Devices this afternoon reduced its guidance for its fiscal third quarter ended December 31.

The company, which makes RF chips used in mobile phones and other products, said revenue in the quarter was $225 million; the Street has been expecting $250.2 million.

The company said revenue from its cellular products group was below expectations, “as sales of 2G components to China-based customers for entry-level handsets were below expectations.” RF Micro also said that revenue from its multi-markets group reflected “broad weakness” in its end markets.

RF Micro said that “customer demand softened during the December quarter, with end-of-quarter 2G demand significantly below customer forecasts.”

The company added that gross margin for the December 2011 quarter will decline about 9 points sequentially, due to the lower revenue, lower factory utilization, and inventory reserves.

RF said it expects “normal seasonality” in the March quarter.