RF Micro Devices, Inc. (RFMD)

[eastunder]

Announces March Quarterly Results And Forecasts Diversified Revenue Growth In The June Quarter

Tuesday , April 24, 2012 16:00ET

GREENSBORO, N.C., April 24, 2012 /PRNewswire/ --


Quarterly Highlights:


-- Quarterly Revenue Totals $187.9 Million
-- Sales Of 3G/4G Components Grow Year-Over-Year 160% And Represent More
Than Two-Thirds Of Quarterly Cellular Revenue
-- Sales Of PowerSmart® And Ultra-High Efficiency 3G/4G Power Amplifiers
Increase Sequentially
-- MPG Sees Order Stabilization And MPG Revenue Is Approximately Flat
Sequentially
-- GAAP Operating Loss Is ($11.0) Million, And GAAP Diluted LPS Is ($0.05)
-- Non-GAAP Operating Loss Is ($2.9) Million, And Non-GAAP Diluted LPS Is
($0.02)


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 fourth quarter, ended March 31, 2012.

RFMD's fourth quarter revenue was $187.9 million, a decrease of approximately 16.6% sequentially, versus $225.4 million in the December 2011 quarter. The sequential decline in revenue reflected greater-than-seasonal declines among manufacturers of handsets in China and at a leading European handset manufacturer. These were offset partially by sequential increases in sales of RFMD's PowerSmart power platforms and RFMD's ultra-high efficiency 3G/4G power amplifiers (PAs), as well as better-than-seasonal performance in MPG revenue. On a GAAP basis, gross margin equaled 30.1%, quarterly operating loss totaled ($11.0) million, and quarterly net loss was ($13.0) million, or ($0.05) per diluted share. On a non-GAAP basis, gross margin equaled 32.4%, quarterly operating loss totaled ($2.9) million, and quarterly net loss was ($5.4) million, or ($0.02) per diluted share.

During the March quarter, RFMD generated approximately $20.5 million in cash flow from operations and $10.9 million in free cash flow.

Strategic Highlights


-- CPG achieved greater than 15% sequential growth in sales of both
PowerSmart power platforms and ultra-high efficiency 3G/4G PAs
-- CPG unveiled its second-generation ultra-high efficiency LTE PAs and its
second-generation PowerSmart LTE power platform and secured majority LTE
share on an upcoming smartphone family
-- CPG launched multiple new 3G/4G antenna control solutions and gained
significant design win momentum in this emerging category
-- CPG demonstrated industry-leading performance in an advanced envelope
tracking (ET) power management system for LTE power amplifiers
-- CPG achieved multiple design wins at leading OEMs with highly integrated
RF semiconductor solutions containing all 2G PA, 3G PA, and switch
content for the entire cellular RF front end
-- MPG reorganized to drive growth in three major markets: Wi-Fi front end
modules, wireless infrastructure and GaN power
-- MPG released six new Wi-Fi front end modules for consumer premises
equipment (CPE) and mobile applications
-- MPG revenue offset seasonality during the March quarter, with particular
strength in smart grid, CATV broadband, and catalog products



Financial Outlook and Business Commentary


RFMD is winning share on multiple flagship smartphones and projects continued sequential growth in 3G/4G components during the June quarter. Among handset manufacturers headquartered in China, RFMD sees strengthening demand and projects sequential growth during the June quarter. In the markets served by MPG, RFMD sees stabilizing demand and improving order visibility and expects MPG revenue in the June quarter to be approximately flat, versus the March quarter.

RFMD currently believes the demand environment in its end markets supports the following expectations and projections for the June 2012 quarter:

-- RFMD expects June quarterly revenue to grow approximately 8%
sequentially to approximately $202 million
-- RFMD expects gross margin to improve approximately 100-200 basis points
-- RFMD expects non-GAAP per share results of breakeven to $0.02,
reflecting increased legal fees and incremental R&D investment targeting
customer diversification

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, "RFMD is growing with the industry's leading smartphone manufacturers and diversifying across a broad set of customers serving all geographies and segments. We anticipate sequential growth in the June 2012 quarter, supported by increasing sales of our 3G/4G components and a resumption of growth among handset manufacturers in China.

"As we begin fiscal 2013, we are especially enthusiastic about RFMD's incremental growth drivers in new segments, including antenna control solutions, 802.11ac front end modules and GaN power devices, where RFMD's proven technology leadership and early mover advantage position us to capture market share leadership as these markets grow."

Dean Priddy, CFO and vice president of administration of RFMD, said, "RFMD's March quarter reflected market share gains in smartphones, offset by forecasted weakness in China and at a leading European handset manufacturer. Despite the sequential revenue decline and lower factory utilization, RFMD expanded non-GAAP gross margin by 220 basis points and generated free cash flow of approximately $10.9 million.

"In the June 2012 quarter, we expect a stronger, more diversified customer base will support a resumption of sequential revenue growth and continued margin expansion. We have structured the RFMD operating model to deliver significant leverage, and we anticipate our product portfolio and R&D investments will continue to drive revenue growth and margin expansion throughout calendar 2012. Importantly, we're confident the targeted, incremental R&D investments RFMD is making in 2012 will generate incremental revenue beginning as early as the September 2012 quarter."

continued at:
http://www.knobias.com/story.htm?eid=3.1.80958c080d8596696ec4fa3a74bcf67237c3f5fd6e59643807ff03ba31d52cff