RF Micro Devices, Inc. (RFMD)

[eastunder]

RF Micro Off 6%: FYQ1 Beats, Q2 View Weak.

By Tiernan Ray

http://blogs.barrons.com/techtraderdaily/2012/07/24/rf-micro-off-6-fyq1-beats-q2-view-weak/?mod=yahoobarrons

Shares of wireless chip maker RF Micro Devices (RFMD) are down 26 cents, or 6.2%, at $4.02 in late trading after the company this afternoon reported fiscal Q1 revenue and earnings per share that beat expectations but forecast this quarter’s results below consensus, citing slowing in business at some of its customers.

Revenue in the three months ended in June fell 5.4%, year over year, but rose 8% from Q4's level, to $202.7 million, yielding a penny per share in profit, excluding some costs.

Analysts on average had been expecting $201.9 million and a penny per share.

The company’s gross margin declined by 4.4 points, year over year, to 34.1%, though it rose 1.7 points from Q4's level.

CEO Bob Bruggeworth remarked that “while the macro economy and the timing of key customer smartphone programs is moderating our near-term outlook, RFMD is launching multiple incremental growth drivers in new segments, including antenna control solutions, WiFi front end modules, and GaN power devices, and we anticipate robust growth and market share gains in these segments as they continue to expand.”

Revenue is expected to be flat this quarter with last, but could be down as much as 5%, the company said. That is well below the current-quarter estimate for an increase to $221.9 million. The company sees profit in a range from zero to a penny per share, on an adjusted basis, versus the consensus for 4 cents profit.

CFO Dean Priddy said the company expects an expansion of gross margin this quarter and a “a return to sequential revenue growth” in the December quarter.

Regarding the outlook, the company said it reflected “moderating growth among certain customers.”